```

[Senate Report 113-299]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 639
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-299

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

 
       KLAMATH BASIN WATER RECOVERY AND ECONOMIC RESTORATION ACT

                                _______
                                

               December 10, 2014.--Ordered to be printed

                                _______
                                

   Ms. Landrieu, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2379]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2379) to approve and implement the 
Klamath Basin agreements, to improve natural resource 
management, support economic development, and sustain 
agricultural production in the Klamath River Basin in the 
public interest and the interest of the United States, 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 Recovery and 
Economic Restoration Act of 2014''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Agreement.--The term ``Agreement'' means each of--
                  (A) the Restoration Agreement; and
                  (B) the Upper Basin Agreement.
          (2) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
          (3) Facilities removal.--The term ``facilities removal'' 
        means--
                  (A) physical removal of all or part of each facility 
                to achieve, at a minimum, a free-flowing condition and 
                volitional fish passage;
                  (B) site remediation and restoration, including 
                restoration of previously inundated land;
                  (C) measures to avoid or minimize adverse downstream 
                impacts; and
                  (D) all associated permitting for the actions 
                described in this paragraph.
          (4) Facility.--The term ``facility'' means the following 1 or 
        more hydropower facilities (including appurtenant works 
        licensed to PacifiCorp) within the jurisdictional boundary of 
        the Klamath Hydroelectric Project, FERC Project No. 2082 (as 
        applicable):
                  (A) Iron Gate Dam.
                  (B) Copco No. 1 Dam.
                  (C) Copco No. 2 Dam.
                  (D) J.C. Boyle Dam.
          (5) Governors.--The term ``Governors'' means--
                  (A) the Governor of the State of Oregon; and
                  (B) the Governor of the State of California.
          (6) Hydroelectric settlement.--The term ``Hydroelectric 
        Settlement'' means the agreement entitled ``Klamath 
        Hydroelectric Settlement Agreement'' and dated February 18, 
        2010 (including any amendments to that agreement approved 
        pursuant to section 3(a)).
          (7) Joint management entity.--The term ``Joint Management 
        Entity'' means the entity that--
                  (A) is comprised of the Landowner Entity, the Klamath 
                Tribes, the United States, and the State of Oregon;
                  (B) represents the interests of the parties to the 
                Upper Basin Agreement; and
                  (C) is responsible for overseeing implementation of 
                the Upper Basin Agreement, as described in section 7 of 
                the Upper Basin Agreement.
          (8) Joint management entity technical team.--The term ``Joint 
        Management Entity Technical Team'' means the group of 
        specialists appointed by the Joint Management Entity as 
        provided for in section 7.8 of the Upper Basin Agreement.
          (9) Keno facility.--The term ``Keno Facility'' means the dam 
        located in Klamath County, Oregon, land underlying the dam, 
        appurtenant facilities, and PacifiCorp-owned property described 
        as Klamath County Map Tax Lot R-3907-03600-00200-000.
          (10) Klamath basin.--
                  (A) In general.--The term ``Klamath Basin'' means the 
                land tributary to the Klamath River in Oregon and 
                California.
                  (B) Inclusions.--The term ``Klamath Basin'' includes 
                the Lost River and Tule Lake Basins.
          (11) Klamath project.--
                  (A) In general.--The term ``Klamath Project'' means 
                the Bureau of Reclamation project in the States of 
                California and Oregon, as authorized under the Act of 
                June 17, 1902 (32 Stat. 388, chapter 1093).
                  (B) Inclusions.--The term ``Klamath Project'' 
                includes any dams, canals, and other works and 
                interests for water diversion, storage, delivery, and 
                drainage, flood control, and similar functions that are 
                part of the project described in subparagraph (A).
          (12) Klamath project water users.--The term ``Klamath Project 
        Water Users'' has the meaning given the term in the Restoration 
        Agreement.
          (13) Landowner entity.--The term ``Landowner Entity'' means 
        the entity established pursuant to section 8 of the Upper Basin 
        Agreement.
          (14) Off-project area.--The term ``Off-Project Area'' means--
                  (A) the areas within the Sprague River, Sycan River, 
                Williamson River, and Wood Valley (including the Wood 
                River, Crooked Creek, Sevenmile Creek, Fourmile Creek, 
                and Crane Creek) subbasins referred to in Exhibit B of 
                the Upper Basin Agreement; and
                  (B) to the extent provided for in the Upper Basin 
                Agreement, any other areas for which claims described 
                by section 1.3 or 2.5.1 of the Upper Basin Agreement 
                are settled as provided for in section 2.5.1 of the 
                Upper Basin Agreement.
          (15) Off-project irrigator.--The term ``Off-Project 
        Irrigator'' means any person that is--
                  (A)(i) a claimant for water rights for irrigation 
                uses in the Off-Project Area in Oregon's Klamath Basin 
                Adjudication; or
                  (ii) a holder of a State of Oregon water right permit 
                or certificate for irrigation use in the Off-Project 
                Area; and
                  (B) a Party to the Upper Basin Agreement.
          (16) Oregon's klamath basin adjudication.--The term 
        ``Oregon's Klamath Basin adjudication'' means the proceeding to 
        determine surface water rights pursuant to chapter 539 of the 
        Oregon Revised Statutes entitled ``In the matter of the 
        determination of the relative rights of the waters of the 
        Klamath River, a tributary of the Pacific Ocean'', in the 
        Circuit Court of the State of Oregon for the County of Klamath, 
        numbered WA 1300001.
          (17) Pacificorp.--The term ``PacifiCorp'' means the owner and 
        licensee of the facility (as of the date of enactment of this 
        Act).
          (18) Party tribes.--The term ``Party tribes'' means--
                  (A) the Yurok Tribe;
                  (B) the Karuk Tribe;
                  (C) the Klamath Tribes; and
                  (D) such other federally recognized tribes of the 
                Klamath Basin as may become party to the Restoration 
                Agreement after the date of enactment of this Act.
          (19) Restoration agreement.--The term ``Restoration 
        Agreement'' means the agreement entitled ``Klamath River Basin 
        Restoration Agreement for the Sustainability of Public and 
        Trust Resources and Affected Communities'' and dated February 
        18, 2010 (including amendments adopted prior to the date of 
        enactment of this Act and any further amendments to that 
        agreement approved pursuant to section 3(a)).
          (20) Riparian program.--The term ``Riparian Program'' means 
        the program described in section 4 of the Upper Basin 
        Agreement.
          (21) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
          (22) Secretaries.--The term ``Secretaries'' means each of--
                  (A) the Secretary of the Interior;
                  (B) the Secretary of Commerce; and
                  (C) the Secretary of Agriculture.
          (23) Settlements.--The term ``Settlements'' means each of--
                  (A) the Hydroelectric Settlement;
                  (B) the Restoration Agreement; and
                  (C) the Upper Basin Agreement.
          (24) Upper basin agreement.--The term ``Upper Basin 
        Agreement'' means the agreement entitled ``Upper Klamath Basin 
        Comprehensive Agreement'' and dated April 18, 2014 (including 
        any amendments to that agreement approved pursuant to section 
        3(a)).
          (25) Water use program.--The term ``Water Use Program'' means 
        the program described in section 3 of the Upper Basin Agreement 
        and section 16.2 of the Restoration Agreement.

SEC. 3. AUTHORIZATION, EXECUTION, AND IMPLEMENTATION OF SETTLEMENTS.

  (a) Ratification of Settlements.--
          (1) In general.--Except as modified by this Act, and to the 
        extent that the Settlements do not conflict with this Act, the 
        Settlements are authorized, ratified, and confirmed.
          (2) Amendments consistent with this act.--If any amendment is 
        executed to make any of the Settlements consistent with this 
        Act, the amendment is also authorized, ratified, and confirmed 
        to the extent the amendment is consistent with this Act.
          (3) Further amendments.--If any amendment to any of the 
        Settlements is executed by the parties to the applicable 
        Settlement after the date of enactment of this Act, unless the 
        Secretary, the Secretary of Commerce, or Secretary of 
        Agriculture determines, not later than 90 days after the date 
        on which the non-Federal parties agree to the amendment, that 
        the amendment is inconsistent with this Act or other provisions 
        of law, the amendment is also authorized, ratified, and 
        confirmed to the extent the amendment--
                  (A) is not inconsistent with this Act or other 
                provisions of law;
                  (B) is executed in a manner consistent with the terms 
                of the applicable Settlement; and
                  (C) does not require congressional approval pursuant 
                to section 2116 of the Revised Statutes (25 U.S.C. 177) 
                or other applicable Federal law.
  (b) Execution and Implementation of Settlements.--
          (1) The agreements.--
                  (A) In general.--As authorized, ratified, and 
                confirmed pursuant to subsection (a)--
                          (i) the Secretary, the Secretary of Commerce, 
                        and the Secretary of Agriculture shall promptly 
                        execute and implement the Restoration 
                        Agreement; and
                          (ii) the Secretary and the Secretary of 
                        Commerce shall promptly execute and implement 
                        the Upper Basin Agreement.
                  (B) Effect of executing agreements.--Notwithstanding 
                subsection (l), execution by the applicable Secretaries 
                under subparagraph (A) of either Agreement shall not be 
                considered a major Federal action under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.).
                  (C) Participation in the upper basin agreement.--As 
                provided for in the Upper Basin Agreement and as part 
                of implementing the Upper Basin Agreement, the 
                Secretary and the Secretary of Commerce may--
                          (i) participate in the Water Use Program and 
                        in the Riparian Program; and
                          (ii) serve as members of the Joint Management 
                        Entity representing the Bureau of Indian 
                        Affairs, the United States Fish and Wildlife 
                        Service, the United States Geological Survey, 
                        and the National Marine Fisheries Service of 
                        the Department of Commerce, with the Secretary 
                        serving as the voting member, as described in 
                        section 7.1.5 of the Upper Basin Agreement.
          (2) Hydroelectric settlement.--To the extent that the 
        Hydroelectric Settlement does not conflict with this Act, the 
        Secretary, the Secretary of Commerce, and the Commission shall 
        implement the Hydroelectric Settlement, in consultation with 
        other applicable Federal agencies.
  (c) Federal Responsibilities.--To the extent consistent with the 
Settlements, this Act, and other provisions of law, the Secretary, the 
Secretary of Commerce, the Secretary of Agriculture, and the Commission 
shall perform all actions necessary to carry out each responsibility of 
the Secretary, the Secretary of Commerce, the Secretary of Agriculture, 
and the Commission, respectively, under the Settlements.
  (d) Environmental Compliance.--In implementing the Settlements, the 
Secretaries and the Commission shall comply with--
          (1) the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.);
          (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.); and
          (3) all other applicable law.
  (e) Publication of Notice; Effect of Publication.--
          (1) Restoration agreement.--
                  (A) Publication.--The Secretary shall publish the 
                notice required by section 15.3.4.A or section 15.3.4.C 
                of the Restoration Agreement, as applicable, in 
                accordance with the Restoration Agreement.
                  (B) Effect of publication.--Publication of the notice 
                described in subparagraph (A) shall have the effects on 
                the commitments, rights, and obligations of the Party 
                tribes, the United States (as trustee for the federally 
                recognized tribes of the Klamath Basin), and other 
                parties to the Restoration Agreement provided for in 
                the Restoration Agreement.
          (2) Upper basin agreement.--
                  (A) Publication.--The Secretary shall publish the 
                notice required by section 10.1 of the Upper Basin 
                Agreement if all requirements of section 10 of the 
                Upper Basin Agreement have been fulfilled, including 
                the requirement for notice by the Klamath Tribes of the 
                willingness of the Tribes to proceed with the Upper 
                Basin Agreement following enactment of authorizing 
                legislation as described in section 10.1.10 or 10.2 of 
                the Upper Basin Agreement, as applicable, in accordance 
                with the Upper Basin Agreement.
                  (B) Effect of publication.--
                          (i) Permanency.--On publication of the notice 
                        required under section 10.1 of the Upper Basin 
                        Agreement, the Upper Basin Agreement shall 
                        become permanent.
                          (ii) Termination.--On publication of the 
                        notice required under section 10.2 of the Upper 
                        Basin Agreement, the Upper Basin Agreement 
                        shall terminate, according to the terms of that 
                        section.
          (3) Judicial review.--
                  (A) In general.--Judicial review of a decision of the 
                Secretary pursuant to this subsection shall be in 
                accordance with the standard and scope of review under 
                subchapter II of chapter 5, and chapter 7, of title 5, 
                United States Code (commonly known as the 
                ``Administrative Procedure Act'').
                  (B) Deadline.--Any petition for review under this 
                subparagraph shall be filed not later than 1 year after 
                the date of publication of the notice required under 
                this paragraph.
  (f) Eligibility for Funds Protected.--Notwithstanding any other 
provision of law, nothing in this Act or the implementation of the 
Settlements, other than as explicitly provided for in this Act or the 
Settlements--
          (1) restricts or alters the eligibility of any party to any 
        of the Settlements, or of any Indian tribe, for the receipt of 
        funds; or
          (2) shall be considered an offset against any obligations or 
        funds in existence on the date of enactment of this Act, under 
        any Federal or State law.
  (g) Tribal Rights Protected.--Nothing in this Act or the 
Settlements--
          (1) affects the rights of any Indian tribe outside the 
        Klamath Basin; or
          (2) amends, alters, or limits the authority of the Indian 
        tribes of the Klamath Basin to exercise any water rights the 
        Indian tribes hold or may be determined to hold except as 
        expressly provided in the Agreements.
  (h) Water Rights.--
          (1) In general.--Except as specifically provided in this Act 
        and the Settlements, nothing in this Act or the Settlements 
        creates or determines water rights or affects water rights or 
        water right claims in existence on the date of enactment of 
        this Act.
          (2) No standard for quantification.--Nothing in this Act or 
        the Settlements establishes any standard for the quantification 
        of Federal reserved water rights or any water claims of any 
        Indian tribe in any judicial or administrative proceeding.
  (i) Willing Sellers.--Any acquisition of interests in land or water 
pursuant to either Agreement shall be from willing sellers.
  (j) No Private Right of Action.--
          (1) In general.--Nothing in this Act confers on any person or 
        entity not a party to the Settlements a private right of action 
        or claim for relief to interpret or enforce this Act or the 
        Settlements.
          (2) Other law.--This subsection does not alter or curtail any 
        right of action or claim for relief under any other applicable 
        law.
  (k) State Courts.--Nothing in this Act expands the jurisdiction of 
State courts to review Federal agency actions or determine Federal 
rights.
  (l) Relationship to Certain Other Federal Law.--
          (1) In general.--Nothing in this Act amends, supersedes, 
        modifies, or otherwise affects--
                  (A) Public Law 88-567 (16 U.S.C. 695k et seq.), 
                except as provided in section 4(c);
                  (B) the National Wildlife Refuge System 
                Administration Act of 1966 (16 U.S.C. 668dd et seq.);
                  (C) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.);
                  (D) the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.);
                  (E) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.), except to the extent section 
                8(b)(4) of this Act requires a permit under section 404 
                of that Act (33 U.S.C. 1344), notwithstanding section 
                404(r) of that Act (33 U.S.C. 1344(r)); or
                  (F) the Federal Land Policy and Management Act of 
                1976 (43 U.S.C. 1701 et seq.).
                  (G) the Treaty between the United States and the 
                Klamath and Moadoc Tribes and the Yahooskin Band of 
                Snake Indians dated October 14, 1864 (16 Stat. 707); or
                  (H) the Klamath Indian Tribe Restoration Act (25 
                U.S.C. 566 et seq.).
          (2) Consistency.--The Agreements shall be considered 
        consistent with subsections (a) through (c) of section 208 of 
        the Department of Justice Appropriation Act, 1953 (43 U.S.C. 
        666).
          (3) Federal advisory committee act.--The actions of the Joint 
        Management Entity and the Joint Management Entity Technical 
        Team shall not be subject to the Federal Advisory Committee Act 
        (5 U.S.C. App.).
  (m) Waiver of Sovereign Immunity by the United States.--Except as 
provided in subsections (a) through (c) of section 208 of the 
Department of Justice Appropriations Act, 1953 (43 U.S.C. 666), nothing 
in this Act or the implementation of the Settlements waives the 
sovereign immunity of the United States.
  (n) Waiver of Sovereign Immunity by the Party Tribes.--Nothing in 
this Act waives or abrogates the sovereign immunity of the Party 
tribes.

SEC. 4. KLAMATH PROJECT AUTHORIZED PURPOSES.

  (a) Klamath Project Purposes.--
          (1) In general.--Subject to paragraph (2) and subsection (b), 
        the purposes of the Klamath Project include--
                  (A) irrigation;
                  (B) reclamation;
                  (C) flood control;
                  (D) municipal;
                  (E) industrial;
                  (F) power;
                  (G) fish and wildlife purposes; and
                  (H) National Wildlife Refuge purposes.
          (2) Effect of fish and wildlife purposes.--
                  (A) In general.--Subject to subparagraph (B), the 
                fish and wildlife and National Wildlife Refuge purposes 
                of the Klamath Project authorized under paragraph (1) 
                shall not adversely affect the irrigation purpose of 
                the Klamath Project.
                  (B) Water allocations and delivery.--Notwithstanding 
                subparagraph (A), the water allocations and delivery to 
                the National Wildlife Refuges provided for in the 
                Restoration Agreement shall not constitute an adverse 
                effect on the irrigation purpose of the Klamath Project 
                for purposes of this paragraph.
  (b) Water Rights Adjudication.--For purposes of the determination of 
water rights in Oregon's Klamath Basin adjudication, until the date on 
which the Appendix E-1 to the Restoration Agreement is filed in 
Oregon's Klamath Basin adjudication pursuant to the Restoration 
Agreement, the purposes of the Klamath Project shall be the purposes in 
effect on the day before the date of enactment of this Act.
  (c) Disposition of Net Revenues From Leasing of Tule Lake and Lower 
Klamath National Wildlife Refuge Land.--Net revenues from the leasing 
of refuge land within the Tule Lake National Wildlife Refuge and Lower 
Klamath National Wildlife Refuge under section 4 of Public Law 88-567 
(78 Stat. 851) (commonly known as the ``Kuchel Act'') shall be provided 
as follows:
          (1) Directly, without further appropriation:
                  (A) 10 percent of net revenues from land within the 
                Tule Lake National Wildlife Refuge that are within the 
                boundaries of Tulelake Irrigation District to Tulelake 
                Irrigation District, as provided in article 4 of 
                Contract No. 14-06-200-5954 and section 2(a) of the Act 
                of August 1, 1956 (70 Stat. 799, chapter 828).
                  (B) Such amounts as are necessary to counties as 
                payments in lieu of taxes as provided in section 3 of 
                Public Law 88-567 (16 U.S.C. 695m).
          (2) Subject to appropriation and, when so appropriated, 
        notwithstanding any other provision of law:
                  (A) 20 percent of net revenues to the Klamath Basin 
                National Wildlife Refuge Complex of the United States 
                Fish and Wildlife Service, for wildlife management 
                purposes on the Tule Lake National Wildlife Refuge and 
                the Lower Klamath National Wildlife Refuge.
                  (B) 10 percent of net revenues from land within the 
                Lower Klamath National Wildlife Refuge that are within 
                the boundaries of the Klamath Drainage District to 
                Klamath Drainage District, for operation and 
                maintenance responsibility for the Federal reclamation 
                water delivery and drainage facilities within the 
                boundaries of the Klamath Drainage District and the 
                Lower Klamath National Wildlife Refuge exclusive of the 
                Klamath Straits Drain, subject to a transfer agreement 
                with the Bureau of Reclamation under which the Klamath 
                Drainage District assumes the operation and maintenance 
                duties of the Bureau of Reclamation for Klamath 
                Drainage District (Area K) lease land exclusive of 
                Klamath Straits Drain.
                  (C) The remainder of net revenues after application 
                of paragraph (1) and subparagraphs (A) and (B) of this 
                paragraph to the Bureau of Reclamation for--
                          (i) operation and maintenance costs of Link 
                        River and Keno Dams incurred by the United 
                        States; and
                          (ii) to the extent that the revenues received 
                        under this paragraph for any year exceed the 
                        costs described in clause (i)--
                                  (I) future capital costs of the 
                                Klamath Project; or
                                  (II) the Renewable Power Program 
                                described in section 17.7 of the 
                                Restoration Agreement, pursuant to an 
                                expenditure plan submitted to and 
                                approved by the Secretary.

SEC. 5. TRIBAL COMMITMENTS; RELEASE OF CLAIMS.

  (a) Actions by Klamath Tribes.--
          (1) Restoration agreement commitments acknowledged and agreed 
        to.--In consideration for the resolution of any contest or 
        exception of the Klamath Project Water Users to the water 
        rights claims of the Klamath Tribes and the United States 
        (acting as trustee for the Klamath Tribes and members of the 
        Klamath Tribes in Oregon's Klamath Basin adjudication), and for 
        the other commitments of the Klamath Project Water Users 
        described in the Restoration Agreement, and for other benefits 
        described in the Restoration Agreement and this Act, the 
        Klamath Tribes (on behalf of the Klamath Tribes and the members 
        of the Klamath Tribes) may make the commitments provided in the 
        Restoration Agreement.
          (2) Upper basin agreement commitments acknowledged and agreed 
        to.--In consideration for the resolution of any contest or 
        exception of the Off-Project Irrigators to the water rights 
        claims of the Klamath Tribes and the United States (acting as 
        trustee for the Klamath Tribes and members of the Klamath 
        Tribes in Oregon's Klamath Basin adjudication), and for the 
        other commitments of the Off-Project Irrigators described in 
        the upper Basin Agreement, and for other benefits described in 
        the Upper Basin Agreement and this Act, the Klamath Tribes (on 
        behalf of the Klamath Tribes and the members of the Klamath 
        Tribes) may make the commitments provided in the Upper Basin 
        Agreement.
          (3) No further action required.--Except as provided in 
        subsection (c), the commitments described in paragraphs (1) and 
        (2) are confirmed as effective and binding, in accordance with 
        the terms of the commitments, without further action by the 
        Klamath Tribes.
          (4) Additional commitments.--The Klamath Tribes (on behalf of 
        the tribe and the members of the tribe) may make additional 
        commitments and assurances in exchange for the resolution of 
        its claims described in section 1.3.1 or 2.5.1 of the Upper 
        Basin Agreement, subject to the conditions that the commitments 
        and assurances shall be--
                  (A) consistent with this Act, the Settlements, and 
                other applicable provisions of law, based on the 
                totality of the circumstances; and
                  (B) covered by a written agreement signed by the 
                Klamath Tribes and the United States (acting as trustee 
                for the tribe and the members of the tribe in Oregon's 
                Klamath Basin adjudication) pursuant to subsection (f).
  (b) Actions by Karuk Tribe and Yurok Tribe.--
          (1) Commitments acknowledged and agreed to.--In consideration 
        for the commitments of the Klamath Project Water Users 
        described in the Restoration Agreement, and other benefits 
        described in the Restoration Agreement and this Act, the Karuk 
        Tribe and the Yurok Tribe (on behalf of the tribe and the 
        members of the tribe) may make the commitments provided in the 
        Restoration Agreement, .
          (2) No further action required.--Except as provided in 
        subsection (c), the commitments described in paragraph (1) are 
        confirmed as effective and binding, in accordance with the 
        terms of the commitments, without further action by the Yurok 
        Tribe or Karuk Tribe.
  (c) Release of Claims by Party Tribes.--
          (1) In general.--Subject to paragraph (2), subsection (d), 
        and the Agreements, but without otherwise affecting any right 
        secured by a treaty, Executive order, or other law, the Party 
        tribes (on behalf of the tribes and the members of the tribes) 
        may relinquish and release certain claims against the United 
        States (including any Federal agencies and employees) described 
        in sections 15.3.5.A, 15.3.6.B.i, and 15.3.7.B.i of the 
        Restoration Agreement and, in the case of the Klamath Tribes, 
        section 2.5 of the Upper Basin Agreement.
          (2) Conditions.--The relinquishments and releases under 
        paragraph (1) shall not take force or effect until the terms 
        described in sections 15.3.5.C, 15.3.5.D, 15.3.6.B.iii, 
        15.3.7.B.iii, 15.3.7.B.iv, and 33.2.1 of the Restoration 
        Agreement and sections 2.4 and 10 of the Upper Basin Agreement 
        have been fulfilled.
  (d) Retention of Rights of Party Tribes.--Notwithstanding subsections 
(a) through (c) or any other provision of this Act, the Party tribes 
(on behalf of the tribes and the members of the tribes) and the United 
States (acting as trustee for the Party tribes), shall retain--
          (1) all claims and rights described in sections 15.3.5.B, 
        15.3.6.B.ii, and 15.3.7.B.ii of the Restoration Agreement; and
          (2) any other claims and rights retained by the Party Tribes 
        in negotiations pursuant to section 15.3.5.D, 15.3.6.B.iv, and 
        15.3.7.B.iv of the Restoration Agreement.
  (e) Tolling of Claims.--
          (1) In general.--Subject to paragraph (2), the period of 
        limitation and time-based equitable defense relating to a claim 
        described in subsection (c) shall be tolled during the period--
                  (A) beginning on the date of enactment of this Act; 
                and
                  (B) ending on the earlier of--
                          (i) the date on which the Secretary publishes 
                        the notice described in sections 15.3.5.C, 
                        15.3.6.B.iii, and 15.3.7.B.iii of the 
                        Restoration Agreement; or
                          (ii) December 1, 2030.
          (2) Effect of tolling.--Nothing in this subsection--
                  (A) revives any claim or tolls any period of 
                limitation or time-based equitable defense that expired 
                before the date of enactment of this Act; or
                  (B) precludes the tolling of any period of limitation 
                or any time-based equitable defense under any other 
                applicable law.
  (f) Actions of United States as Trustee.--
          (1) Restoration agreement commitments authorized.--In 
        consideration for the commitments of the Klamath Project Water 
        Users described in the Restoration Agreement and for other 
        benefits described in the Restoration Agreement and this Act, 
        the United States, acting as trustee for the federally 
        recognized tribes of the Klamath Basin and the members of such 
        tribes, may make the commitments provided in the Restoration 
        Agreement.
          (2) Upper basin agreement commitments authorized.--In 
        consideration for the commitments of the Off-Project Irrigators 
        described in the Upper Basin Agreement and for other benefits 
        described in the Upper Basin Agreement and this Act, the United 
        States, acting as trustee for the Klamath Tribes and the 
        members of the Klamath Tribes, may make the commitments 
        provided in the Upper Basin Agreement.
          (3) No further action.--The commitments described in 
        paragraphs (1) and (2) are confirmed as effective and binding, 
        in accordance with the terms of the commitments, without 
        further action by the United States.
          (4) Additional commitments.--The United States, acting as 
        trustee for the Klamath Tribes and the members of the Klamath 
        Tribes in Oregon's Klamath Basin Adjudication, may make 
        additional commitments and assurances of rights in exchange for 
        the resolution of the tribal water right claims described in 
        section 1.3.1 or 2.5.1 of the Upper Basin Agreement, subject to 
        the conditions that the commitments or assurances shall be--
                  (A) consistent with this Act, the Settlements, and 
                other applicable provisions of law, based on the 
                totality of the circumstances; and
                  (B) covered by a written agreement signed by the 
                Klamath Tribes and the United States (acting as trustee 
                for the Klamath Tribes and the members of the tribe in 
                Oregon's Klamath Basin adjudication) under subsection 
                (a)(3)(B).
  (g) Judicial Review.--Judicial review of a decision of the Secretary 
concerning any right or obligation under section 15.3.5.C, 
15.3.6.B.iii, 15.3.7.B.iii, 15.3.8.B, or 15.3.9 of the Restoration 
Agreement shall be in accordance with the standard and scope of review 
under subchapter II of chapter 5, and chapter 7, of title 5, United 
States Code (commonly known as the ``Administrative Procedure Act'').
  (h) Effect of Section.--Nothing in this section--
          (1) affects the ability of the United States to take any 
        action--
                  (A) authorized by law to be taken in the sovereign 
                capacity of the United States, including any law 
                relating to health, safety, or the environment, 
                including--
                          (i) the Federal Water Pollution Control Act 
                        (33 U.S.C. 1251 et seq.);
                          (ii) the Safe Drinking Water Act (42 U.S.C. 
                        300f et seq.);
                          (iii) the Solid Waste Disposal Act (42 U.S.C. 
                        6901 et seq.);
                          (iv) the Comprehensive Environmental 
                        Response, Compensation, and Liability Act of 
                        1980 (42 U.S.C. 9601 et seq.)
                          (v) the Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.); and
                          (vi) regulations implementing the Acts 
                        described in this subparagraph; and
                  (B) as trustee for the benefit of any federally 
                recognized Indian tribe other than an Indian tribe of 
                the Klamath Basin;
                  (C) as trustee for the Party tribes to enforce the 
                Agreements and this Act through such legal and 
                equitable remedies as are available in an appropriate 
                United States court or State court or administrative 
                proceeding, including Oregon's Klamath Basin 
                adjudication; or
                  (D) as trustee for the federally recognized Indian 
                tribes of the Klamath Basin and the members of the 
                tribes, in accordance with the Agreements and this 
                Act--
                          (i) to acquire water rights after the 
                        effective date of the Agreements (as defined in 
                        section 1.5.1 of the Restoration Agreement and 
                        section 14.3 of the Upper Basin Agreement);
                          (ii) to use and protect water rights, 
                        including water rights acquired after the 
                        effective date of the Agreements (as defined in 
                        section 1.5.1 of the Restoration Agreement and 
                        section 14.3 of the Upper Basin Agreement), 
                        subject to the Agreements; or
                          (iii) to claim a water right or continue to 
                        advocate for an existing claim for water rights 
                        in an appropriate United States court or State 
                        court or administrative proceeding, subject to 
                        the Agreements;
          (2) affects the treaty fishing, hunting, trapping, pasturing, 
        or gathering right of any Indian tribe except to the extent 
        expressly provided in this Act or the Agreements; or
          (3) affects any right, remedy, privilege, immunity, power, or 
        claim not specifically relinquished and released under, or 
        limited by, this Act or the Agreements.

SEC. 6. WATER AND POWER PROVISIONS.

  The Klamath Basin Water Supply Enhancement Act of 2000 (Public Law 
106-498; 114 Stat. 2221) is amended--
          (1) by redesignating sections 4 through 6 as sections 5 
        through 7, respectively; and
          (2) by inserting after section 3 the following:

``SEC. 4. WATER MANAGEMENT AND PLANNING ACTIVITIES.

  ``(a) Definitions.--In this section:
          ``(1) Off-project area.--The term `Off-Project Area' means--
                  ``(A) the areas within the Sprague River, Sycan 
                River, Williamson River, and Wood Valley (including 
                Crooked Creek, Sevenmile Creek, Fourmile Creek, and 
                Crane Creek) subbasins referred to in Exhibit B of the 
                Upper Basin Agreement; and
                  ``(B) to the extent provided for in the Upper Basin 
                Agreement, any other areas for which claims described 
                by section 1.3 or 2.5.1 of the Upper Basin Agreement 
                are settled as provided for in section 2.5.1 of the 
                Upper Basin Agreement.
          ``(2) On-project power user.--The term `On-Project Power 
        User' has the meaning given the term in the Restoration 
        Agreement.
          ``(3) Restoration agreement.--The term `Restoration 
        Agreement' means the agreement entitled `Klamath River Basin 
        Restoration Agreement for the Sustainability of Public and 
        Trust Resources and Affected Communities' and dated February 
        18, 2010 (including any amendments adopted prior to the date of 
        enactment of this Act and any further amendment to that 
        agreement approved pursuant to section 3(a) of the Klamath 
        Basin Water Recovery and Economic Restoration Act of 2014).
          ``(4) Upper basin agreement.--The term `Upper Basin 
        Agreement' means the agreement entitled `Upper Klamath Basin 
        Comprehensive Agreement' and dated April 18, 2014 (including 
        any amendment to that agreement).
  ``(b) Action by Secretary.--
          ``(1) In general.--The Secretary may carry out any 
        activities, including by entering into an agreement or contract 
        or otherwise making financial assistance available--
                  ``(A) to align water supplies with demand, including 
                activities to reduce water consumption and demand, 
                consistent with the Restoration Agreement or the Upper 
                Basin Agreement;
                  ``(B) to limit the net costs of power used to manage 
                water (including by arranging for delivery of Federal 
                power, consistent with the Restoration Agreement and 
                the Upper Basin Agreement) for--
                          ``(i) the Klamath Project (within the meaning 
                        of section 2);
                          ``(ii) the On-Project Power Users;
                          ``(iii) irrigators in the Off-Project Area; 
                        and
                          ``(iv) the Klamath Basin National Wildlife 
                        Refuge Complex; and
                  ``(C) to restore any ecosystem and otherwise protect 
                fish and wildlife in the Klamath Basin watershed, 
                including tribal fishery resources held in trust, 
                consistent with Restoration Agreement and the Upper 
                Basin Agreement.
          ``(2) Inclusion.--Purchases of power by the Secretary under 
        paragraph (1)(B) shall be considered an authorized sale under 
        section 5(b)(3) of the Pacific Northwest Electric Power 
        Planning and Conservation Act (16 U.S.C. 839c(b)(3)).''.

SEC. 7. KLAMATH TRIBES TRIBAL RESOURCE FUND.

  (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the ``Klamath Tribes Tribal 
Resource Fund'' (referred to in this section as the ``Fund''), 
consisting of the amounts deposited in the Fund under subsection (b), 
together with any interest earned on those amounts, to be managed, 
invested, and administered by the Secretary for the benefit of the 
Klamath Tribes in accordance with the terms of section 2.4 of the Upper 
Basin Agreement, to remain available until expended.
  (b) Transfers to Fund.--The Fund shall consist of such amounts as are 
appropriated to the Fund under subsection (k), which shall be deposited 
in the Fund not later than 60 days after the amounts are appropriated 
and any interest under subsection (c) or (d).
  (c) Management by the Secretary.--Absent an approved tribal 
investment plan under subsection (d) or an economic development plan 
under subsection (e), the Secretary shall manage, invest, and 
distribute all amounts in the Fund in a manner that is consistent with 
the investment authority of the Secretary under--
          (1) the first section of the Act of June 24, 1938 (25 U.S.C. 
        162a);
          (2) the American Indian Trust Fund Management Reform Act of 
        1994 (25 U.S.C. 4001 et seq.); and
          (3) this section.
  (d) Investment by the Klamath Tribes.--
          (1) Investment plan.--
                  (A) In general.--In lieu of the investment provided 
                for in subsection (c), the Klamath Tribes may submit a 
                tribal investment plan to the Secretary, applicable to 
                all or part of the Fund, excluding the amounts 
                described in subsection (e)(4)(A).
                  (B) Approval.--Not later than 60 days after the date 
                on which a tribal investment plan is submitted under 
                subparagraph (A), the Secretary shall approve such 
                investment plan if the Secretary finds that the plan--
                          (i) is reasonable and sound;
                          (ii) meets the requirements of the American 
                        Indian Trust Fund Management Reform Act of 1994 
                        (25 U.S.C. 4001 et seq.); and
                          (iii) meets the requirements of this section.
                  (C) Disapproval.--If the Secretary does not approve 
                the tribal investment plan, the Secretary shall set 
                forth in writing the particular reasons for the 
                disapproval.
          (2) Disbursement.--If the tribal investment plan is approved 
        by the Secretary, the funds involved shall be disbursed from 
        the Fund to the Klamath Tribes to be invested by the Klamath 
        Tribes in accordance with the approved tribal investment plan, 
        subject to the requirements of this section.
          (3) Compliance.--The Secretary may take such steps as the 
        Secretary determines to be necessary to monitor the compliance 
        of a Tribe with an investment plan approved under paragraph 
        (1)(B).
          (4) Limitation on liability.--The United States shall not 
        be--
                  (A) responsible for the review, approval, or audit of 
                any individual investment under an approved investment 
                plan; or
                  (B) directly or indirectly liable with respect to any 
                such investment, including any act or omission of the 
                Klamath Tribes in managing or investing amounts in the 
                Fund.
          (5) Requirements.--The principal and income derived from 
        tribal investments carried out pursuant to an investment plan 
        approved under subparagraph (B) shall be--
                  (A) subject to the requirements of this section; and
                  (B) expended only in accordance with an economic 
                development plan approved under subsection (e).
  (e) Economic Development Plan.--
          (1) In general.--The Klamath Tribes shall submit to the 
        Secretary an economic development plan for the use of the Fund, 
        including the expenditure of any principal or income derived 
        from management under subsection (c) or from tribal investments 
        carried out under subsection (d).
          (2) Approval.--Not later than 60 days after the date on which 
        an economic development plan is submitted under paragraph (1), 
        the Secretary shall approve the economic development plan if 
        the Secretary finds that the plan meets the requirements of the 
        American Indian Trust Fund Management Reform Act of 1994 (25 
        U.S.C. 4001 et seq.) and this section.
          (3) Use of funds.--The economic development plan under this 
        subsection shall--
                  (A) require that the Klamath Tribes spend all amounts 
                withdrawn from the Fund in accordance with this 
                section; and
                  (B) include such terms and conditions as are 
                necessary to meet the requirements of this section.
          (4) Resource acquisition and enhancement plan.--The economic 
        development plan shall include a resource acquisition and 
        enhancement plan, which shall--
                  (A) require that not less than \1/2\ of the amounts 
                appropriated for each fiscal year to carry out this 
                section shall be used to enhance, restore, and utilize 
                the natural resources of the Klamath Tribes, in a 
                manner that also provides for the economic development 
                of the Klamath Tribes and, as determined by the 
                Secretary, directly or indirectly benefit adjacent non-
                Indian communities; and
                  (B) be reasonably related to the protection, 
                acquisition, enhancement, or development of natural 
                resources for the benefit of the Klamath Tribes and 
                members of the Klamath Tribes.
          (5) Modification.--Subject to the requirements of this Act 
        and approval by the Secretary, the Klamath Tribes may modify a 
        plan approved under this subsection.
          (6) Limitation on liability.--The United States shall not be 
        directly or indirectly liable for any claim or cause of action 
        arising from--
                  (A) the approval of a plan under this paragraph; or
                  (B) the use or expenditure by the Klamath Tribes of 
                any amount in the Fund.
  (f) Limitation on Per Capita Distributions.--No amount in the Fund 
(including any income accruing to the amount) and no revenue from any 
water use contract may be distributed to any member of the Klamath 
Tribes on a per capita basis.
  (g) Limitation on Disbursement.--
          (1) In general.--Subject to paragraph (2), amounts in the 
        Fund shall not be available for disbursement under this section 
        until the Klamath Tribes--
                  (A) make the commitments set forth in the Agreements; 
                and
                  (B) are determined by the Secretary to be in 
                substantial compliance with those commitments.
          (2) Early disbursement.--Based on the unique history of the 
        loss of reservation land by the Klamath Tribes through 
        termination of Federal recognition and acknowledging that 
        restoration of tribal land is essential to building the tribal 
        economy and achieving self-determination, the Secretary may 
        disburse funds to the Klamath Tribes prior to the satisfaction 
        of the requirements of paragraph (1) on a determination by the 
        Secretary that such funds are available and that early 
        disbursement will support activities designed to increase 
        employment opportunities for members of the Klamath Tribes.
          (3) Agreements.--Any such disbursement shall be in accordance 
        with a written agreement between the Secretary and the Klamath 
        Tribes that provides the following:
                  (A) For any disbursement to purchase land that is to 
                be placed in trust pursuant to section 6 of the Klamath 
                Indian Tribe Restoration Act (25 U.S.C. 566d), the 
                written agreement shall specify that if assurances made 
                do not become permanent as described in section 15.3.3 
                of the Restoration Agreement and on publication of a 
                notice by the Secretary pursuant to section 15.3.4.C of 
                the Restoration Agreement or section 10.2 of the Upper 
                Basin Agreement, any land purchased with disbursements 
                from the Fund shall revert back to sole ownership by 
                the United States unless, prior to reversion, the 
                Klamath Tribes enter into a written agreement to repay 
                the purchase price to the United States, without 
                interest, in annual installments over a period not to 
                exceed 40 years.
                  (B) For any disbursement to support economic activity 
                and creation of tribal employment opportunities 
                (including any rehabilitation of existing properties to 
                support economic activities), the written agreement 
                shall specify that if assurances made do not become 
                permanent as described in section 15.3.3 of the 
                Restoration Agreement and on publication of a notice by 
                the Secretary pursuant to section 15.3.4.C of the 
                Restoration Agreement or section 10.2 of the Upper 
                Basin Agreement, any amounts disbursed from the Fund 
                shall be repaid to the United States, without interest, 
                in annual installments over a period not to exceed 40 
                years.
  (h) Prohibition.--Amounts in the Fund may not be made available for 
any purpose other than a purpose described in this section.
  (i) Annual Reports.--
          (1) In general.--Not later than 60 days after the end of each 
        fiscal year beginning with fiscal year 2014, the Secretary 
        shall submit to the Committee on Appropriations of the House of 
        Representatives, the Committee on Appropriations of the Senate, 
        and the appropriate authorizing committees of the Senate and 
        the House of Representatives a report on the operation of the 
        Fund during the fiscal year.
          (2) Contents.--Each report shall include, for the fiscal year 
        covered by the report, the following:
                  (A) A statement of the amounts deposited into the 
                Fund.
                  (B) A description of the expenditures made from the 
                Fund for the fiscal year, including the purpose of the 
                expenditures.
                  (C) Recommendations for additional authorities to 
                fulfill the purpose of the Fund.
                  (D) A statement of the balance remaining in the Fund 
                at the end of the fiscal year.
  (j) No Third Party Rights.--This section does not create or vest 
rights or benefits for any party other than the Klamath Tribes and the 
United States.
  (k) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $8,000,000 for each fiscal year, 
not to exceed a total amount of $40,000,000.

SEC. 8. HYDROELECTRIC FACILITIES.

  (a) Facilities Removal Determination.--
          (1) In general.--Subject to paragraph (3), in accordance with 
        section 3 of the Hydroelectric Settlement, the Governors and 
        the Secretary shall jointly--
                  (A) as soon as practicable after the date of 
                enactment of this Act, determine whether to proceed 
                with facilities removal, based on but not limited to 
                factors identified in the Hydroelectric Settlement; and
                  (B) if the Governors and the Secretary determine 
                under subparagraph (A) to proceed with facilities 
                removal, include in the determination the designation 
                of a dam removal entity, subject to paragraph (6).
          (2) Basis for determination to proceed.--For purposes of 
        making a determination under paragraph (1)(A), the Governors 
        and the Secretary, in cooperation with the Secretary of 
        Commerce and other appropriate entities, shall--
                  (A) use existing information;
                  (B) conduct any necessary additional studies;
                  (C) comply with the National Environmental Policy Act 
                of 1969 (42 U.S.C. 4321 et seq.); and
                  (D) take such other actions as the Governors and the 
                Secretary determine to be appropriate to support the 
                determination under paragraph (1).
          (3) Conditions for determination to proceed.--The Secretary 
        and the Governors may not make or publish the determination 
        under this subsection, unless the conditions specified in 
        section 3.3.4 of the Hydroelectric Settlement, as modified by 
        this Act as applicable, have been satisfied.
          (4) Publication of notice.--The Secretary shall publish 
        notification of the determination under this subsection in the 
        Federal Register.
          (5) Judicial review of determination.--
                  (A) In general.--For purposes of judicial review, the 
                determination of the Secretary under paragraph (1) 
                shall constitute a final agency action with respect to 
                whether or not to proceed with facilities removal.
                  (B) Petition for review.--
                          (i) Filing.--
                                  (I) In general.--Judicial review of 
                                the determination and related actions 
                                to comply with environmental laws 
                                (including the National Environmental 
                                Policy Act of 1969 (42 U.S.C. 4321 et 
                                seq.), the Endangered Species Act of 
                                1973 (16 U.S.C. 1531 et seq.), and the 
                                National Historic Preservation Act (16 
                                U.S.C. 470 et seq.)) may be obtained by 
                                an aggrieved person only as provided in 
                                this paragraph.
                                  (II) Jurisdiction.--A petition for 
                                review under this paragraph may be 
                                filed only in the United States Court 
                                of Appeals for the District of Columbia 
                                Circuit or in the Ninth Circuit Court 
                                of Appeals.
                                  (III) Limitation.--A district court 
                                of the United States and a State court 
                                shall not have jurisdiction to review 
                                the determination of the Secretary or 
                                related actions to comply with 
                                environmental laws described in 
                                subclause (I).
                          (ii) Deadline.--
                                  (I) In general.--Except as provided 
                                in subclause (II), any petition for 
                                review under this paragraph shall be 
                                filed not later than 60 days after the 
                                date of publication of the 
                                determination in the Federal Register.
                                  (II) Subsequent grounds.--If a 
                                petition is based solely on grounds 
                                arising after the date that is 60 days 
                                after the date of publication of the 
                                determination in the Federal Register, 
                                the petition for review under this 
                                subsection shall be filed not later 
                                than 60 days after the grounds arise.
                  (C) Implementation.--Any action of the Secretary with 
                respect to which review could have been obtained under 
                this paragraph shall not be subject to judicial review 
                in any action relating to the implementation of the 
                determination of the Secretary or in proceedings for 
                enforcement of the Hydroelectric Settlement.
                  (D) Applicable standard and scope.--Judicial review 
                of the determination of the Secretary shall be in 
                accordance with the standard and scope of review under 
                subchapter II of chapter 5, and chapter 7, of title 5, 
                United States Code (commonly known as the 
                ``Administrative Procedure Act'').
                  (E) Nontolling.--The filing of a petition for 
                reconsideration by the Secretary of an action subject 
                to review under this subsection shall not--
                          (i) affect the finality of the action for 
                        purposes of judicial review;
                          (ii) extend the time within which a petition 
                        for judicial review under this subsection may 
                        be filed; or
                          (iii) postpone the effectiveness of the 
                        action.
          (6) Requirements for dam removal entity.--A dam removal 
        entity designated by the Governors and the Secretary under 
        paragraph (1)(B) shall, in the sole judgment of the Governors 
        and the Secretary--
                  (A) have the capabilities for facilities removal 
                described in section 7.1.1 of the Hydroelectric 
                Settlement;
                  (B) be otherwise qualified to perform facilities 
                removal; and
                  (C) have committed, if so designated, to perform 
                facilities removal within the State Cost Cap as 
                described in section 4.1.3 of the Hydroelectric 
                Settlement.
          (7) Responsibilities of dam removal entity.--The dam removal 
        entity designated by the Governors and the Secretary under 
        paragraph (1)(B) shall have the responsibilities described in 
        section 7.1.2 of the Hydroelectric Settlement.
  (b) Facilities Removal.--
          (1) Applicability.--This subsection shall apply if--
                  (A) the determination of the Governors and the 
                Secretary under subsection (a) provides for proceeding 
                with facilities removal;
                  (B) the availability of non-Federal funds for the 
                purposes of facilities removal is consistent with the 
                Hydroelectric Settlement; and
                  (C) the Hydroelectric Settlement has not terminated 
                in accordance with section 8.11 of the Hydroelectric 
                Settlement.
          (2) Non-federal funds.--
                  (A) In general.--Notwithstanding title 31, United 
                States Code, if the Department of the Interior is 
                designated as the dam removal entity under subsection 
                (a)(1)(B), the Secretary may accept, manage, and 
                expend, without further appropriation, non-Federal 
                funds for the purpose of facilities removal in 
                accordance with sections 4 and 7 of the Hydroelectric 
                Settlement.
                  (B) Refund.--The Secretary may administer and refund 
                any amounts described in subparagraph (A) received from 
                the State of California in accordance with the 
                requirements established by the State.
                  (C) Inclusion.--The costs of dam removal shall 
                include, within the State Cost Cap described in section 
                4.1.3 of the Hydroelectric Settlement, reasonable 
                compensation for property owners whose property or 
                property value is directly damaged by facilities 
                removal, consistent with State, local, and Federal law.
          (3) Agreements.--The dam removal entity may enter into 
        agreements and contracts as necessary to assist in the 
        implementation of the Hydroelectric Settlement.
          (4) Proceeding with facilities removal.--
                  (A) In general.--The dam removal entity shall, 
                consistent with the Hydroelectric Settlement--
                          (i) develop a definite plan for facilities 
                        removal as described in section 7 of the 
                        Hydroelectric Settlement, including a schedule 
                        for facilities removal;
                          (ii) obtain all permits, authorizations, 
                        entitlements, certifications, and other 
                        approvals necessary to implement facilities 
                        removal, including a permit under section 404 
                        of the Federal Water Pollution Control Act (33 
                        U.S.C. 1344), notwithstanding subsection (r) of 
                        that section; and
                          (iii) implement facilities removal.
                  (B) Report.--
                          (i) In general.--The Governors and the 
                        Secretary shall prepare and make public a 
                        report on the determination and plan for 
                        facilities removal.
                          (ii) Inclusions.--The report shall, at a 
                        minimum--
                                  (I) provide a detailed explanation of 
                                the basis for the determination to 
                                proceed with facilities removal and for 
                                the designation of the dam removal 
                                entity, including relevant supporting 
                                documents;
                                  (II) include any comments received 
                                from the Commission on the 
                                determination and a written response to 
                                the comments;
                                  (III) state specific goals intended 
                                to be achieved by facilities removal;
                                  (IV) include specific performance 
                                measures that will be used to show 
                                achievements in meeting the goals;
                                  (V) provide a detailed explanation of 
                                factors that are unique to facilities 
                                removal in the Klamath Basin, including 
                                why the Federal role is limited to the 
                                Klamath Basin and sets no precedent for 
                                future Federal action;
                                  (VI) describe plans to address any 
                                potential costs in excess of the State 
                                Cost Cap described in section 4.1.3 of 
                                the Hydroelectric Settlement;
                                  (VII) describe plans for addressing 
                                or mitigating intentional or 
                                unintentional impacts on local 
                                communities and property owners; and
                                  (VIII) describe how any potential 
                                environmental or other liability 
                                concerns will be addressed.
                          (iii) Submission.--The report required under 
                        this subparagraph shall be submitted to--
                                  (I) the Committee on Energy and 
                                Natural Resources of the Senate;
                                  (II) the Committee on Natural 
                                Resources of the House of 
                                Representatives; and
                                  (III) the Commission.
                          (iv) Comment and consultation by 
                        commission.--Not later than 180 days before the 
                        publication of the report required by this 
                        subparagraph, the Governors and the Secretary 
                        shall submit to the Commission the section of 
                        the report describing the basis of the 
                        determination to proceed with dam removal for 
                        comment and, as appropriate, consultation.
                          (v) Deadline.--The report required under this 
                        subparagraph shall be made public--
                                  (I) not less than 1 year before the 
                                date of implementation of facilities 
                                removal; and
                                  (II) not more than 2 years before the 
                                date of implementation of facilities 
                                removal.
                  (C) State and local laws.--
                          (i) In general.--Except as provided in clause 
                        (ii), facilities removal shall be subject to 
                        applicable requirements of State and local laws 
                        relating to permits and other authorizations, 
                        to the extent the requirements are not in 
                        conflict with Federal law, including the 
                        determination of the Governors and the 
                        Secretary under subsection (a) and the definite 
                        plan (including the schedule) for facilities 
                        removal authorized under this Act.
                          (ii) Limitations.--Clause (i) shall not 
                        affect--
                                  (I) the authorities of the States 
                                regarding concurrence with the 
                                determination of the Secretary under 
                                subsection (a) in accordance with State 
                                law; or
                                  (II) the authority of a State public 
                                utility commission regarding funding of 
                                facilities removal.
                          (iii) Jurisdiction.--The United States 
                        district courts shall have original 
                        jurisdiction over all claims regarding the 
                        consistency of State and local laws regarding 
                        permits and other authorizations, and of State 
                        and local actions pursuant to those laws, with 
                        the definite plan (including the schedule) for 
                        facilities removal authorized under this Act.
                  (D) Acceptance of title to facilities.--
                          (i) In general.--The dam removal entity may 
                        accept from PacifiCorp all rights, titles, 
                        permits, and other interests in the facilities 
                        and associated land, for facilities removal and 
                        for disposition of facility land (as provided 
                        in section 7.6.4 of the Hydroelectric 
                        Settlement) on providing to PacifiCorp a notice 
                        that the dam removal entity is ready to 
                        commence facilities removal in accordance with 
                        section 7.4.1 of the Hydroelectric Settlement.
                          (ii) Non-federal dam removal entity.--
                        Notwithstanding section 8 of the Federal Power 
                        Act (16 U.S.C. 801), the transfer of title to 
                        facilities from PacifiCorp to a non-Federal dam 
                        removal entity, in accordance with the 
                        Hydroelectric Settlement and this Act, is 
                        authorized.
                  (E) Continued power generation.--
                          (i) In general.--In accordance with an 
                        agreement negotiated under clause (ii), on 
                        transfer of title pursuant to subparagraph (C) 
                        and until the dam removal entity instructs 
                        PacifiCorp to cease the generation of power, 
                        PacifiCorp may continue, consistent with State 
                        law--
                                  (I) to generate, and retain title to, 
                                any power generated by the facilities 
                                in accordance with section 7 of the 
                                Hydroelectric Settlement; and
                                  (II) to transmit and use the power 
                                for the benefit of the customers of 
                                PacifiCorp under the jurisdiction of 
                                applicable State public utility 
                                commissions and the Commission.
                          (ii) Agreement with dam removal entity.--As a 
                        condition of transfer of title pursuant to 
                        subparagraph (C), the dam removal entity shall 
                        enter into an agreement with PacifiCorp that 
                        provides for continued generation of power in 
                        accordance with clause (i).
                  (F) Report.--Not later than 3 years after the date of 
                the completion of facilities removal, the Governors and 
                the Secretary shall submit to the Committee on Energy 
                and Natural Resources of the Senate, the Committee on 
                Natural Resources of the House of Representatives, and 
                the Commission--
                          (i) a detailed report describing the results 
                        of facilities removal, including the status of 
                        achieving the performance measures and goals 
                        included in the report described in 
                        subparagraph (B); and
                          (ii) such additional reports as the 
                        Committees consider appropriate, to be 
                        completed and submitted by the Secretary, in 
                        consultation with the Governors.
          (5) Licenses and jurisdiction.--
                  (A) Annual licenses.--
                          (i) In general.--The Commission shall issue 
                        annual licenses authorizing PacifiCorp to 
                        continue to operate the facilities until 
                        PacifiCorp transfers title to all of the 
                        facilities.
                          (ii) Termination.--The annual licenses shall 
                        terminate with respect to a facility on 
                        transfer of title for the facility from 
                        PacifiCorp to the dam removal entity.
                          (iii) Staged removal.--
                                  (I) In general.--On transfer of title 
                                of any facility by PacifiCorp to the 
                                dam removal entity, annual license 
                                conditions shall no longer be in effect 
                                with respect to the facility.
                                  (II) Nontransfer of title.--Annual 
                                license conditions shall remain in 
                                effect with respect to any facility for 
                                which PacifiCorp has not transferred 
                                title to the dam removal entity to the 
                                extent compliance with the annual 
                                license conditions are not prevented by 
                                the removal of any other facility.
                  (B) Jurisdiction.--The jurisdiction of the Commission 
                under part I of the Federal Power Act (16 U.S.C. 792 et 
                seq.) shall terminate with respect to a facility on the 
                transfer of title for the facility from PacifiCorp to 
                the dam removal entity.
                  (C) Relicensing.--
                          (i) In general.--The Commission shall--
                                  (I) stay the proceeding of the 
                                Commission regarding the pending 
                                license application of PacifiCorp for 
                                Project No. 2082 for the period during 
                                which the Hydroelectric Settlement 
                                remains in effect; and
                                  (II) resume the proceeding and 
                                proceed to take final action on the new 
                                license application only if the 
                                Hydroelectric Settlement terminates 
                                pursuant to section 8.11 of the 
                                Hydroelectric Settlement.
                  (D) Termination; limitations.--If the Hydroelectric 
                Settlement is terminated pursuant to section 8.11 of 
                the Hydroelectric Settlement, the Commission, in 
                proceedings on the application for relicensing, shall 
                not be bound by the record or findings of the Secretary 
                relating to the determination of the Secretary or by 
                the determination of the Secretary.
  (c) Liability Protection.--
          (1) In general.--Notwithstanding any other Federal, State, 
        local, or common law, PacifiCorp shall not be liable for any 
        harm to an individual or entity, property, or the environment, 
        or any damages resulting from facilities removal or facility 
        operations arising from, relating to, or triggered by actions 
        associated with facilities removal under this Act, including 
        any damage caused by the release of any material or substance 
        (including a hazardous substance).
          (2) Funding.--Notwithstanding any other Federal, State, 
        local, or common law, no individual or entity contributing 
        funds for facilities removal shall be held liable, solely by 
        virtue of that funding, for any harm to an individual or 
        entity, property, or the environment, or damages arising from 
        facilities removal or facility operations arising from, 
        relating to, or triggered by actions associated with facilities 
        removal under this Act, including any damage caused by the 
        release of any material or substance (including a hazardous 
        substance).
          (3) Preemption.--Notwithstanding section 10(c) of the Federal 
        Power Act (16 U.S.C. 803(c)), protection from liability 
        pursuant to this section shall preempt the laws of any State to 
        the extent the laws are inconsistent with this Act, except that 
        this Act shall not limit any otherwise-available immunity, 
        privilege, or defense under any other provision of law.
          (4) Effective date.--Liability protection under this 
        subsection shall take effect as the protection relates to any 
        particular facilities on transfer of title to the facility from 
        PacifiCorp to the dam removal entity designated by the 
        Secretary under subsection (a)(1)(B).
  (d) Facilities Not Removed.--
          (1) Keno facility.--
                  (A) Transfer.--On notice that the dam removal entity 
                is ready to commence removal of the J.C. Boyle Dam, the 
                Secretary shall accept the transfer of title to the 
                Keno Facility to the United States in accordance with 
                section 7.5 of the Hydroelectric Settlement.
                  (B) Effect of transfer.--On the transfer under 
                subparagraph (A), and without further action by 
                Congress--
                          (i) the Keno Facility shall--
                                  (I) become part of the Klamath 
                                Reclamation Project; and
                                  (II) be operated and maintained in 
                                accordance with the Federal reclamation 
                                laws and this Act; and
                          (ii) the jurisdiction of the Commission over 
                        the Keno Facility shall terminate.
          (2) East side and west side developments.--On filing by 
        PacifiCorp of an application for surrender of the East Side and 
        West Side Developments in Project No. 2082, the Commission 
        shall issue an order approving partial surrender of the license 
        for Project No. 2082, including any reasonable and appropriate 
        conditions, as provided in section 6.4.1 of the Hydroelectric 
        Settlement.
          (3) Fall creek.--Not later than 60 days after the date of the 
        transfer of title to the Iron Gate Facility to the dam removal 
        entity, the Commission shall resume timely consideration of the 
        pending licensing application for the Fall Creek development 
        pursuant to the Federal Power Act (16 U.S.C. 791a et seq.), 
        regardless of whether PacifiCorp retains ownership of Fall 
        Creek or transfers ownership to a new licensee.
          (4) Iron gate hatchery.--Notwithstanding section 8 of the 
        Federal Power Act (16 U.S.C. 801), consistent with section 
        7.6.6 of the Hydroelectric Settlement title to the PacifiCorp 
        hatchery facilities within the State of California shall be 
        transferred to the State of California at--
                  (A) the time of transfer to the dam removal entity of 
                title to the Iron Gate Dam; or
                  (B) such other time as may be agreed to by the 
                parties to the Hydroelectric Settlement.

SEC. 9. ADMINISTRATION AND FUNDING.

  (a) Agreements.--
          (1) In general.--The Secretaries may enter into such 
        agreements (including contracts, memoranda of understanding, 
        financial assistance agreements, cost sharing agreements, and 
        other appropriate agreements) with State, tribal, and local 
        government agencies or private individuals and entities as the 
        Secretary concerned consider to be necessary to carry out this 
        Act and the Settlements, subject to such terms and conditions 
        as the Secretary concerned considers to be necessary.
          (2) Tribal programs.--Consistent with paragraph (1) and 
        section 32 of the Restoration Agreement, the Secretaries shall 
        give priority to qualified Party tribes in awarding grants, 
        contracts, or other agreements for purposes of implementing the 
        fisheries programs described in part III of the Restoration 
        Agreement.
  (b) Establishment of Accounts.--There are established in the Treasury 
for the deposit of appropriations and other funds (including non-
Federal donated funds) the following noninterest-bearing accounts:
          (1) The On-Project Plan and Power for Water Management Fund, 
        to be administered by the Bureau of Reclamation.
          (2) The Water Use Retirement and Off-Project Reliance Fund, 
        to be administered by the United States Fish and Wildlife 
        Service.
          (3) The Klamath Drought Fund, to be administered by the 
        National Fish and Wildlife Foundation.
  (c) Management.--
          (1) In general.--The accounts established by subsection (b) 
        shall be managed in accordance with this Act and section 14.3 
        of the Restoration Agreement.
          (2) Transfers.--Notwithstanding section 1535 of title 31, 
        United States Code, the Secretaries are authorized to enter 
        into interagency agreements for the transfer of Federal funds 
        between Federal programs for the purpose of implementing this 
        Act and the Settlements.
  (d) Acceptance and Expenditure of Non-federal Funds.--
          (1) In general.--Notwithstanding title 31, United States 
        Code, the Secretaries may accept and expend, without further 
        appropriation, non-Federal funds, in-kind services, or property 
        for purposes of implementing the Settlement.
          (2) Use.--The funds and property described in paragraph (1) 
        may be expended or used, as applicable, only for the purpose 
        for which the funds or property were provided.
  (e) Funds Available Until Expended.--All funds made available for the 
implementation of the Settlements shall remain available until 
expended.
  (f) Termination of Agreements.--If any Agreement terminates--
          (1) any appropriated Federal funds provided to a party that 
        are unexpended at the time of the termination of the Agreement 
        shall be returned to the general fund of the Treasury; and
          (2) any appropriated Federal funds provided to a party shall 
        be treated as an offset against any claim for damages by the 
        party arising under the Agreement.
  (g) Budget.--
          (1) In general.--The budget of the President shall include 
        such requests as the President considers to be necessary for 
        the level of funding for each of the Federal agencies to carry 
        out the responsibilities of the agencies under the Settlements.
          (2) Crosscut budget.--Not later than the date of submission 
        of the budget of the President to Congress for each fiscal 
        year, the Director of the Office of Management and Budget shall 
        submit to the appropriate authorizing and appropriating 
        committees of the Senate and the House of Representatives a 
        financial report containing--
                  (A) an interagency budget crosscut report that 
                displays the budget proposed for each of the Federal 
                agencies to carry out the Settlements for the upcoming 
                fiscal year, separately showing funding requested under 
                preexisting authorities and new authorities provided by 
                this Act;
                  (B) a detailed accounting of all funds received and 
                obligated by all Federal agencies responsible for 
                implementing the Settlements; and
                  (C) a budget for proposed actions to be carried out 
                in the upcoming fiscal year by the applicable Federal 
                agencies in the upcoming fiscal year.
  (h) Report to Congress.--Not later than the date of submission of the 
budget of the President to Congress for each fiscal year, the 
Secretaries shall submit to the appropriate authorizing committees of 
the Senate and the House of Representatives a report that describes--
          (1) the status of implementation of all of the Settlements;
          (2) expenditures during the preceding fiscal year for 
        implementation of all of the Settlements;
          (3) the current schedule and funding levels that are needed 
        to complete implementation of each of the Settlements;
          (4) achievements in advancing the purposes of complying with 
        the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 
        under the Settlements;
          (5) additional achievements in restoring fisheries under the 
        Settlements;
          (6) the status of water deliveries for the preceding water 
        year and projections for the upcoming water year for--
                  (A) the Klamath Project and irrigators in the Off-
                Project Area pursuant to the Agreements; and
                  (B) the National Wildlife Refuges in areas covered by 
                the Agreements;
          (7) the status of achieving the goals of supporting 
        sustainable agriculture production (including the goal of 
        limiting net power costs for water management) and general 
        economic development in the Klamath Basin;
          (8) the status of achieving the goal of supporting the 
        economic development of the Party tribes;
          (9) the assessment of the Secretaries of the progress being 
        made toward completing implementation of all of the 
        Settlements;
          (10)(A) identification of performance measures established 
        for the goals of the Agreements and of facilities removal as 
        described in the report to Congress required under section 
        8(b)(4)(B); and
          (B) until achieved, the assessment of the Secretaries of the 
        progress being made toward meeting the performance measures; 
        and
          (11) the status of plans to address any potential cost in 
        excess of the State cost cap as described in the report to 
        Congress required under section 8(b)(4)(B).

                                Purpose

    The purpose of S. 2379 is to approve and implement the 
Klamath Basin agreements to improve natural resource 
management, support economic development, and sustain 
agricultural production in the Klamath River Basin in the 
public interest and the interest of the United States.

                          Background and Need

    The Klamath River Basin drains a 16,000 square mile area in 
Oregon and California. The Klamath River originates in southern 
Oregon and flows 253 miles through northern California to the 
Pacific Ocean. The Basin is divided into two parts: the Upper 
Basin, which lies upriver and east of Iron Gate Dam and where 
the Upper Klamath Lake is found; and the Lower Basin, which 
includes that portion of the river between Iron Gate Dam and 
the Pacific Ocean.

                            THE UPPER BASIN

    Located in the Upper Klamath Basin is Upper Klamath Lake, 
which contains 50,000 acre feet of water storage and is 
naturally high in nutrients given its shallow depth. In 
addition, agricultural use has impacted the lake conditions 
over the past century.
    The Klamath Project, built in 1905, is a federal water 
project managed by the Bureau of Reclamation (BoR) in the Upper 
Basin. The project provides irrigation water for approximately 
210,000 acres. The project does not have a hydroelectricity 
component, so power is purchased from PacifiCorp, an investor-
owned utility which serves the region.
    There are also 180,000 acres of irrigated agriculture that 
do not use water delivered from the Klamath Project. The land 
(mostly ranches) of these so-called ``off-project users'' is 
primarily to the north of Upper Klamath Lake and is located on 
tributaries to the Lake.
    The Klamath Basin National Wildlife Refuge (comprised of 
six wildlife refuges administered by the U.S. Fish and Wildlife 
Service) is located in the Upper Klamath Basin. The wetlands in 
these refuges are a stopping place for nearly three-quarters of 
the migratory birds on the Pacific flyway. Some of the Klamath 
Basin Project water is released downstream for the benefit of 
the two additional federal wildlife refuges, the Lower Klamath 
Wildlife Refuge and the Tule Lake Wildlife Refuge. Both of 
these refuges allow land to be leased out for farming (``lease-
land farming'').
    Two fish species listed as endangered under the Endangered 
Species Act--the Lost River sucker and the shortnose sucker--
are found in Upper Klamath Lake. Members of the Klamath Tribe 
use these fish for ceremonial purposes and historically relied 
on them for sustenance. Fish populations declined for a variety 
of reasons, such as low lake levels and related high nutrients 
and poor water quality, agricultural development, habitat 
degradation, and dams located on tributaries to the lake.

                            THE LOWER BASIN

    The Lower Klamath Basin is located below Iron Gate Dam. The 
Klamath River runs through the Lower Basin to the Pacific 
Ocean. There are 13 anadromous fish species in the Lower Basin, 
including three types of salmon. One of these, the coho salmon, 
is listed as threatened under the Endangered Species Act. Much 
of the land area is irrigated agriculture or National Forest 
System land. Three Lower Basin tribes--the Hoopa Valley, Karuk, 
and Yurok Tribes--consider salmon to be an important resource, 
both economic and cultural. The presence of salmon has declined 
in the Lower Basin.

                              KLAMATH DAMS

    The Klamath Hydroelectric Project is comprised of six dams 
located on the Klamath River and is owned by PacifiCorp. These 
dams provide approximately 160 megawatts of hydroelectricity to 
170,000 homes and for power users in the Basin, including 
irrigators. One additional non-hydroelectric dam (Link River 
Dam) is owned by the Bureau of Reclamation and is operated to 
regulate flows for the production of hydropower downstream. The 
dams owned by PacifiCorp are: Keno Dam (a non-hydroelectric dam 
operated to regulate flows and as a diversion structure for 
irrigation); J.C. Boyle Dam; Copco Dams 2 and 1; and Iron Gate 
Dam. In addition, PacifiCorp operates a small dam on a 
tributary to the Klamath River.
    There is currently a hydroelectric relicensing proceeding 
pending before the Federal Energy Regulatory Commission (FERC) 
for the Klamath Hydroelectric Project but the FERC proceeding 
is inactive because the negotiated settlement calls for the 
removal of PacifiCorps dams (see discussion of the KHSA below). 
The original license expired in 2006, and the project is 
operating on annual licenses which are granted as a matter of 
course until a new license is issued. FERC has issued a final 
environmental impact statement and has indicated the conditions 
that FERC staff recommend be met by PacifiCorp in a new 
license. The States of California and Oregon also have pending 
proceedings relating to water quality certification of the 
project under section 401 of the Clean Water Act. Both water 
quality proceedings have been held in abeyance due to the 
negotiated settlement. However, the FERC and State proceedings 
could become active again if progress on implementing the 
settlement is not made.

                     THE WATER RIGHTS ADJUDICATION

    On March 7, 2013, the Final Order of Determination in the 
Klamath River Basin Adjudication was delivered by the Oregon 
Water Resources Department (OWRD) to the Klamath County Circuit 
Court, marking the end of Phase I of the water rights 
adjudication which has been ongoing since 1975. During Phase I, 
the OWRD determined the validity of 730 claims for the use of 
surface water in the Klamath Basin. The Department also 
received and resolved 5,660 contests to these claims.
    The key finding in the adjudication was that the most 
senior claims in the Klamath River Basin Adjudication are 
claims held by the United States in trust for the Klamath 
Tribes. These claims carry a priority date of ``time 
immemorial.'' The tribal claims were recognized for certain 
reaches of major tributaries to Upper Klamath Lake and for the 
Lake itself. The next most senior rights holders are Indian 
Allottees (members of the Klamath Tribes who received 
allotments of land within the boundaries of the former 
reservation) and the so-called ``Walton'' claim holders, non-
Indian purchasers of Indian allotments who hold lands that were 
once reservation lands and whose claims are based on the 1864 
Klamath Treaty and carry a priority date of 1864. Under the 
Final Order of Determination, the United States holds the water 
rights for the Klamath Irrigation Project with a priority that 
dates to 1905, and users of the Project water hold the Project 
water rights for the purpose beneficial use of the water.

                        KBRA AND KHSA AGREEMENTS

    In February 2010, a negotiated settlement was reached by a 
number of parties in the Klamath River Basin on two related 
agreements--the Klamath Basin Restoration Agreement (KBRA) and 
the Klamath Hydropower Settlement Agreement (KHSA). However, 
Congress must authorize these two agreements before every 
provision of the agreements can be implemented. The KBRA 
provides for measures to address resource issues in the Basin 
and includes agreement on the allocation of water when shortage 
occurs. The KHSA provides for the removal of four Klamath River 
Dams owned by PacifiCorp.
    The KBRA is divided into sections designed to achieve three 
major goals: (1) restore and sustain natural production of fish 
species throughout the Basin; (2) establish reliable water and 
power supplies for agricultural users, communities, and 
wildlife refuges; and (3) contribute to the public welfare and 
sustainability of communities. The KBRA would have expired at 
the end of 2012 by its own terms since Congress had not acted 
to ratify it. The parties to the agreement each voted to extend 
the agreement in December 2012, so the agreement remains in 
force.
    The second agreement, the KHSA, provides for dam removal 
and measures to restore fish runs. This agreement was reached 
with PacifiCorp, the owner of the four downstream hydroelectric 
dams, in the context of a relicensing proceeding before the 
Federal Energy Regulatory Commission. This agreement provides 
that the dams would be removed beginning in the year 2020.
    The KHSA calls on ratepayers and taxpayers in Oregon and 
California to pay up to $450 million to remove the dams. Of 
this amount, $200 million is to come from PacifiCorp's 
ratepayers through a dam removal surcharge--up to $184 million 
from Oregon customers and $16 million from California 
customers. The remaining $250 million will come from a bond 
issued by the State of California. A recent estimate by the 
Department of the Interior suggests that the cost of dam 
removal could be less than $300 million. Oregon has already 
approved an increase to the ratepayers.
    The KHSA also calls for indemnification of PacifiCorp for 
any damages from dam removal and calls for the designation by 
the Secretary of the Interior of a ``dam removal entity'' to be 
responsible for the physical removal of the dams. This could be 
a government agency such as BoR. The agreement also allows 
PacifiCorp the right to the power generated from the dams up to 
the point they are actually removed.
    The KHSA also includes provisions regarding the supply of 
power used for irrigation pumping. For example, the agreement 
anticipates that the Bonneville Power Administration (BPA) will 
sell power to the BoR who will sell it to Klamath irrigators to 
help lower irrigation power costs. However, the process to 
accomplish this has yet to be finalized.
    Pursuant to the KHSA, the Secretary of the Interior 
released a final environmental impact statement that endorsed 
removal of all four dams as its preferred alternative. The 
Secretary cannot make a final determination on whether dam 
removal is in the public interest until Congress acts.

                         UPPER BASIN AGREEMENT

    The final agreement, the Upper Basin Agreement, was signed 
on March 5, 2014, after a year-long Klamath Basin Task Force 
convened by Senator Wyden, Senator Merkley, Congressman Walden, 
and Governor Kitzhaber. The Agreement resolves water right 
disputes that were not addressed in the KBRA. The most senior 
water rights above Upper Klamath Lake are held by the Klamath 
Tribes and full exercise of those rights would preclude 
irrigation in many years.
    The Upper Basin Agreement lays out water management and 
restoration measures for the Upper Basin, including a water use 
program that will increase stream flows into Upper Klamath Lake 
adding at least 30,000 acre feet annually to the lake, which 
allows for a more predictable future for agriculture in the 
Upper Basin, a riparian program that will improve and protect 
riparian conditions to help restore fisheries, and an economic 
development program for the Klamath Tribes.
    Legislation is needed to implement the three settlement 
agreements.

                          Legislative History

    S. 2379 was introduced by Senator Wyden on May 21, 2014. 
Senators Merkley, Feinstein, and Boxer are original cosponsors. 
The Subcommittee on Power and Water held a hearing on S. 2379 
on June 3, 2014. S. Hrg. 113-451. At its business meeting on 
November 13, 2014, the Committee ordered the bill favorably 
reported with an amendment in the nature of a substitute.
    Similar legislation, S. 2727, was introduced by Senators 
Wyden and Merkley on July 31, 2014 and was referred to the 
Committee on Finance. The Committee on Energy and Natural 
Resources held an oversight hearing on water resource issues in 
the Klamath River Basin on June 20, 2013. Similar legislation 
(S. 1851 and H.R. 3398) was also introduced in both the House 
and the Senate in the 112th Congress, but was not acted upon.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 13, 2014, by a voice vote of 
a quorum present, recommends that the Senate pass S. 2379, if 
amended as described herein.
    The rollcall vote on reporting the measure was 17 yeas and 
5 nays, as follows:

        YEAS
Ms. Landrieu*
Mr. Wyden
Mr. Johnson
Ms. Cantwell
Mr. Sanders
Ms. Stabenow*
Mr. Udall
Mr. Franken
Mr. Manchin
Mr. Schatz
Mr. Heinrich
Ms. Baldwin
Ms. Murkowski
Mr. Heller*
Mr. Flake
Mr. Portman
Mr. Hoeven*                           NAYS
                                    Mr. Barrasso*
                                    Mr. Risch*
                                    Mr. Lee*
                                    Mr. Scott*
                                    Mr. Alexander*
    *Indicates vote by proxy.

                          Committee Amendment

    During its consideration of S. 2379, the Committee adopted 
an amendment in the nature of a substitute. The amendment is 
described in the section-by-section analysis.

                      Section-by-Section Analysis

    Section 1 provides the short title, the ``Klamath Basin 
Water Recovery and Economic Restoration Act of 2014.''
    Section 2 defines key terms used in the bill.
    Section 3(a)(1) approves and ratifies the Klamath Basin 
Restoration Agreement (KBRA), Klamath Hydroelectric Settlement 
(KHSA), and the Upper Klamath Basin Comprehensive Agreement 
(Upper Basin Agreement, collectively ``the Settlements''). 
Subsection (a)(3) establishes a process for future amendments, 
requiring that they be consistent with the Act.
    Subsection (b) provides for the Settlements' execution and 
implementation by the Departments of the Interior (all three 
settlements) and Agriculture (KBRA only), the National Marine 
Fisheries service (all three), and the Federal Energy 
Regulatory Commission (KHSA only). Subsection (b)(1)(C) 
authorizes the relevant agencies to participate in the 
implementing programs of the Upper Basin Agreement.
    Subsection (c) requires the Secretary of the Interior to 
publish notice when all the commitments and actions agreed to 
in the KBRA and Upper Basin Agreement have happened, which 
would make official the legal settlements and releases of 
claims, or alternately, publication of notice if it is 
determined that they cannot happen and no other path to 
resolution can be agreed upon. Subsection (c)(3) limits, to one 
year, the time period in which judicial review of this final 
decision for the Upper Basin Agreement can be initiated.
    Section 4 updates the authorized purposes of the Klamath 
Reclamation Project to include irrigation, reclamation, flood 
control, municipal uses, industrial uses, power, and fish and 
wildlife purposes (including serving the National Wildlife 
Refuges). Subsection 4(a)(2) provides, consistent with the 
KBRA, that the fish and wildlife purposes, which are being 
established for the first time, cannot adversely affect the 
irrigation purposes (except for the agreed-upon water amounts 
to be delivered to the National Wildlife Refuges).
    Section 5 authorizes the Klamath, Karuk, and Yurok Tribes, 
and the United States acting as the trustee of federal tribes 
in the Klamath Basin, to make the series of commitments agreed 
upon in the Settlements, including settling certain water 
rights and waters claims (especially in the case of the Klamath 
Tribes) and otherwise agreeing not to pursue certain claims 
against the Project and Off-Project irrigators. Subsections (d) 
and (f) authorize the Klamath Tribes and the United States, 
acting as their trustee, to continue negotiating for settlement 
of certain water rights claims not yet settled. Subsection (c) 
authorizes the Tribes to release claims where as appropriate. 
Subsection (h) provides a series of savings clauses limiting 
the scope of rights, privileges, and powers released by the 
United States and the federally recognized Tribes of the 
Klamath Basin to only those explicitly described in the 
Settlements.
    Section 6 authorizes the Secretary of the Interior to 
implement the water, power, and ecosystem restoration programs 
agreed upon in the Settlements. These include--
           a water program to help irrigators align 
        water supply and demand, including reducing total water 
        consumption by both the Klamath Reclamation Project and 
        the off-Project irrigators;
           a program to limit the total cost of power 
        to irrigators, by delivering Federal power and 
        assisting in the development of a local renewable power 
        program; and
           various programs to restore ecosystems in 
        the Klamath Basin to support recovery of endangered 
        fish species.
    Section 7 establishes a Fund, as agreed upon in the Upper 
Basin Agreement, to provide for improved economic development 
for the Klamath Tribes, including primarily acquisition, 
restoration, and development of natural resources for the 
benefit of the Tribes.
    Section 8 directs the Secretary of the Interior to 
determine whether to proceed with removal of four facilities on 
the Klamath River--the J.C. Boyle, Iron Gate, Copco 1, and 
Copco 2 dams--based on whether removing the facilities would 
advance restoration of salmon fisheries and is in the public 
interest, taking into account potential impacts on local 
communities and federally recognized Tribes. Paragraphs (2) and 
(3) of subsection (a) requires that the determination comply 
with National Environmental Policy Act and happen only if 
certain conditions stipulated in the KHSA have been met. 
Subsection (a)(5) provides for judicial review of the 
Secretary's determination only in the United States Court of 
Appeals for the Ninth Circuit or the District of Columbia 
Circuit, and requires that a petition for review be filed 
within 60 days of the determination being published in the 
Federal Register.
    Section 9 authorizes the Secretaries to enter into 
appropriate agreements (including contracts, memoranda of 
understanding, and financial agreements) with State, tribal, 
and local governments and private individuals and entities in 
order to implement the Act and the Settlements. Subsection 
(a)(3) directs that, in awarding grants or contracts to 
implement the fisheries restoration programs in the KBRA, 
priority be given to the Tribes that are parties to the 
Settlements.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of S. 
2379 has been requested but was not received at the time the 
report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the Internet 
at www.cbo.gov.

                      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 
carrying out S. 2379.
    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.
    Little, if any, additional paperwork would result from the 
enactment of S. 2379, as ordered reported.

                   Congressionally Directed Spending

    Section 7(k) of S. 2379, as reported, authorizes 
appropriation of $8 million per fiscal year, not to exceed a 
total of $40 million, to the Secretary of the Interior to 
administer for the benefit of the Klamath Tribes in accordance 
with section 7 and the terms of the Upper Basin Agreement.

                        Executive Communications

    The testimony provided by John Bezdek, Senior Advisor to 
the Deputy Secretary at the Department of Interior, at the June 
3, 2014, hearing on S. 2379 before the Subcommittee on Water 
and Power, follows:

 Statement of John C. Bezdek, Senior Advisor to the Deputy Secretary, 
                       Department of the Interior

    Chairman Landrieu, Ranking Member Murkowski, and members of 
the Committee, I am John Bezdek, Senior Advisor to Department 
of the Interior Deputy Secretary Michael Connor. I began 
working on Klamath Basin issues in 1997 and since 2007 have had 
the privilege of working directly for the Department of the 
Interior (Department), alongside our interagency federal team, 
with the varied and diverse interests of the Klamath Basin 
regarding the Klamath Agreements (Agreements): the Klamath 
Hydroelectric Settlement Agreement (KHSA); the Klamath Basin 
Restoration Agreement (KBRA); and the Upper Klamath Basin 
Comprehensive Agreement (UKBCA). I am pleased to provide the 
views of the Administration regarding S. 2379, the Klamath 
Basin Water Recovery and Economic Restoration Act of 2014, 
which would authorize the Klamath Agreements. These agreements 
were envisioned to provide a comprehensive solution for water, 
fishery, and power issues in the Klamath Basin.
    The Klamath Basin has a long history of conflict driven by 
scarce water resources that have been over-allocated among 
competing uses. While the conflict began generations ago, in 
the recent past we have seen the following: water deliveries to 
Reclamation's Klamath Project were shut off in 2001, which 
caused grave hardship for hundreds of farmers; over 30,000 
adult salmon perished in the lower Klamath River (2002); 
closure of the commercial ocean fishery along the Oregon and 
California coasts due to poor Klamath Basin stocks in 2006; no 
surface water irrigation deliveries made to the upper basin 
ranching communities (2013); reductions in water supplies to 
the Klamath Reclamation Project (2010, 2013, and 2014); the 
continued voluntary tribal fishing ban, since 1986, for c'waam 
(Lost River Suckers) and Shortnose Suckers in Upper Klamath 
Lake; Endangered Species Act listings on declining populations 
of suckers in Upper Klamath Lake and Coho salmon in the Klamath 
River; limited water deliveries to wildlife refuges for a 
number of years, continuing today, for the water needed to 
support one of the most important stop over points on the 
Pacific Flyway; and a significant increase in the cost of power 
which makes it more expensive for irrigators to conserve and 
re-use water. All of these events continue to cast uncertainty 
and doubt upon the communities of the basin, including the 
continuation of the way of life of the tribes and the ranching 
communities and the $600 million a year in agricultural 
products and jobs that contribute to the local economy.\1\ 
Moreover, analysis shows all of these problems in the basin 
will likely worsen and may occur more frequently in the coming 
years due to impacts of climate change unless a long term 
solution is implemented.
---------------------------------------------------------------------------
    \1\Revised Cost Estimates for the Klamath Basin Restoration 
Agreement. June 17, 2011. http://216.119.96.156/Klamath/2011/06/
RevisedCostEstimates.pdf.
---------------------------------------------------------------------------
    Fortunately, the tools, in the form of the Klamath 
Agreements, are available and ready to be implemented to 
address these issues. Collectively, these three Agreements 
approach the restoration of resources, economies, and 
communities of the basin in a holistic manner instead of 
continuing the band-aid approach that oftentimes falls short of 
providing even short-term relief--much less addressing the 
underlying causes.
    These agreements have broad and diverse support. There are 
currently 45 Parties to the KHSA and 43 Parties to the KBRA, 
representing Federal agencies, California and Oregon, three 
Indian tribes, two counties, irrigators, and conservation and 
fishing groups.\2\ There are sixteen parties to the Upper Basin 
Agreement, including the State of Oregon, the Klamath Tribes, 
and a broad coalition of Upper Klamath Basin irrigators.
---------------------------------------------------------------------------
    \2\The Department of the Interior and National Oceanic and 
Atmospheric Administration signed the KHSA; the federal agency parties 
are not signatories to the KBRA. The KBRA includes provisions that 
these agencies will become parties when Federal authorizing legislation 
is enacted. PacifiCorp signed the KHSA; it is not a Party to the KBRA.
---------------------------------------------------------------------------
    The stakeholders of the Klamath Basin have made the 
courageous decision to set aside differences and generations of 
acrimony to find a better path forward. Implementing these 
agreements and accomplishing the parties' collective goals will 
take substantial resources. Yet the cost of inaction could 
easily be even higher, not just in the form of additional 
dollars to be expended in the future, but also in the form of 
additional stressors upon communities in the basin. Thus, we 
support S. 2379 and the Agreements that it will implement, 
including the provisions on costs provided that all parties 
understand that full implementation of the Klamath Agreements 
will need additional, meaningful, non-federal cost-share that 
will reduce the overall costs to the United States. Over the 
course of implementing S. 2379, the Administration will work 
closely with all the parties to secure additional non-federal 
sources of funding.
    Despite the non-partisan development of this settlement 
framework over several federal and state administrations, the 
Administration acknowledges there are a handful of parties that 
have not signed the Klamath Agreements. We will continue our 
efforts to find common ground with these parties; however, it 
is important that the Committee understand that finding common 
ground has been difficult because some of the opponents have 
taken positions that would pose unacceptable risks to the 
farmers, and others oppose efforts to restore the fisheries 
that are important to the tribes and fishing communities. But 
we also believe the time is ripe for action and that we have a 
unique opportunity to heal and restore the basin in a lasting 
manner. We must not lose this opportunity.

                                 ukbca

    In 2010 when the KBRA and KHSA were signed, many felt the 
job was done. The reality is that the parties' work was 
unfinished due to our inability to reach settlement with those 
many ranchers located on the tributaries to Upper Klamath Lake. 
With the execution of the UKBCA this past April, we now are 
able to address restoration of the resources and communities 
from the headwaters of the Klamath Basin all the way downstream 
by resolving claims surrounding the tribal water rights held in 
trust by the United States on behalf of the Klamath Tribes. We 
are able to do so by providing a framework for a balanced 
approach to management of water resources in the upper basin 
that comports seamlessly with the KBRA. In the UKBCA we have 
been able to simultaneously recognize the seniority of the 
Tribal water rights, allocate sufficient water to restore and 
maintain the fisheries, and establish a framework for 
maintaining the majority of irrigation in the upper basin. All 
of this is accomplished through the establishment of certain 
specified instream flows in tributary streams above Upper 
Klamath Lake, the retirement of 30,000 acre-feet of water 
previously consumptively used for irrigation, and, through 
riparian agreements with private landowners, to restore habitat 
necessary to support the fishery, while also providing for a 
stable, sustainable basis for the continuation of irrigated 
agriculture in the upper basin. Just as importantly, these 
actions will be managed by local stakeholders through the 
establishment of a Landowner Entity and a Joint Management 
Entity.
    S. 2379 also establishes tribal economic development funds 
to compensate the Klamath Tribes for additional commitments 
made in the UKBCA that were not made in the KBRA or KHSA, to 
implement a water management program in the upper basin. Since 
the beginning, the Klamath people have relied on the natural 
resources they needed to thrive in their traditional 
subsistence way; these resources, many of which require water 
to thrive, include the fish, animals, birds, and plants which 
have provided essential subsistence and economic resources to 
the Tribes, and which are deeply embedded in the Tribes' 
religious and cultural practice. All who are familiar with the 
Klamath Tribes understand the deep and long-term impact the 
past termination of its federally recognized status and the 
impacts on treaty resources have had upon the economic, 
religious, and cultural viability of the Klamath Tribes. The 
economic development funds authorized under S. 2379 will 
provide support to help the Tribes in their commitment to build 
a viable tribal economy, restore their homeland, and increase 
the opportunities for the exercise of tribal treaty and 
cultural rights. The funds will accomplish this through the 
purchase of timber and other lands to be brought back into 
Trust and the restoration of their subsistence fishery that is 
central to who they are as a people. This will also provide 
significant movement towards self-determination that has been 
so elusive since the restoration of federal recognition.

                                  khsa

    The KHSA is a unique combination of environmental and 
economic interests striking an agreement that combines both 
business sense and protection of natural resources. It is an 
agreement to study the potential removal of four privately 
owned (PacifiCorp) hydroelectric facilities on the Klamath 
River and to determine, based on a host of scientific and 
engineering studies, whether removal of these facilities will 
advance restoration of fisheries and will be in the public 
interest. The KHSA calls for removal to occur in 2020, should 
the Secretary of the Interior determine that removal is in the 
public interest. Congressional authorization is necessary for 
the Secretary to make this determination. If there is a 
decision to remove these facilities, the costs will be borne by 
a combination of PacifiCorp's electricity customers in Oregon 
and California through a minimal surcharge and a water bond 
from the state of California. Consequently, there would be no 
federal costs associated with facilities removal under the 
KHSA.
    The KHSA also includes certain liability protections for 
PacifiCorp if these facilities are removed. The current cost 
estimate is below the cost cap included in the KHSA, though it 
remains uncertain at this point which non-federal entities 
would bear any costs in excess of those protections, should 
such a situation arise. The KHSA also provides a commitment for 
PacifiCorp to transmit and deliver federally generated power to 
the Klamath Project, which could provide savings to water users 
on power costs, making for efficient project operations, and 
opportunities to conserve water. On this point, discussions are 
ongoing between PacifiCorp, the Department, Bonneville Power 
Administration, Westem Area Power Administration, and the 
Klamath water users on ways to provide power at reduced costs 
to both the on and off-project communities. Analysis shows that 
purchasing Federal power could save larger irrigation loads 
three-quarters to one cent per kilowatt hours, or about 7 to 10 
percent. The irrigators who could benefit comprise about half 
the irrigation loads in the basin; however, passage of S. 2379 
would be needed to serve irrigators that are north of the 
Klamath Project. While these discussions may lead to near-term 
reductions in power costs, we also note that the KBRA includes 
programs that require S. 2379's authorization and budget to 
provide more substantial long-term power relief. Studies are 
currently underway analyzing the best possible paths forward in 
achieving the long-term power goal once S. 2379 is enacted.

                                  kbra

    The KBRA is a restoration agreement that includes water 
allocation and fish habitat restoration actions, predicated on, 
and working in conjunction with dam removal. The KBRA includes 
agreements among tribal and non-tribal entities resolving water 
rights disputes and provides the means for Reclamation's 
Klamath Project to conserve water supplies and develop sources 
of power that will place the Project on par with other 
similarly sized irrigation projects in the West. The KBRA 
provides a reliable supply of water to the two national 
wildlife refuges that currently receive adequate water supplies 
in less than one out of 10 years. If funded, the KBRA will put 
tribal members to work on habitat restoration actions needed in 
the basin. Through the establishment of a Federal Advisory 
Committee Act charter, the KBRA will give parties in the 
Klamath Basin a major voice in the decision making process 
regarding the basin's resources.
    To illustrate how the Klamath Agreements would change the 
impacts of the current water year, if fully authorized, 
involuntary shortages among Klamath Project irrigators could be 
avoided, the Lower Klamath National Wildlife Refuge would have 
a guaranteed supply of water (compared to no water being 
available this year), and upper basin irrigators might not be 
subject to having their diversions curtailed due to water 
rights administration. In addition, fishery resources would 
have a dedicated supply of water, in conjunction with an 
identified process for restoring degraded habitat. Without the 
KBRA, the Klamath Reclamation Project and the Klamath Tribes 
are likely to exercise the water rights recognized in the 
Klamath Basin Adjudication with increasing frequency, thereby 
creating uncertainty for and jeopardizing the livelihood of 
irrigators in the Upper Klamath Basin.
    While most of the items in the KBRA, especially those 
involving tribal and fisheries programs, are presently 
authorized under existing law, items associated with making 
Reclamation's Klamath Project more efficient and flexible, such 
as in allocating funds received from the leasing of refuge 
lands to the wildlife refuges and irrigators and clarifying the 
Klamath Project's purposes, require this additional 
Congressional authorization. Legislation would also be needed 
to provide the power for water management benefits to 
irrigators and to supply Federal electricity to off-project 
irrigators.

                       khsa/kbra science process

    Between the signing of the Klamath agreements in early 2010 
and today, many federal studies have been undertaken and 
completed that analyze the potential effects of Klamath River 
dam removal and implementation of KBRA on local communities, 
tribes, and the environment. A Final Environmental Impact 
Statement analyzed the proposed action to remove the four lower 
PacifiCorp dams on the Klamath River in 2020 and to implement 
the KBRA, as well as three alternatives where some or all of 
the dams would remain in place.
    The process undertaken to develop new information for a 
Secretarial Determination was rigorous, open, and transparent; 
it provided multiple opportunities for stakeholder and public 
participation, included independent subject-matter experts to 
provide a breadth of perspectives, and relied on multiple 
levels of independent peer review to ensure objectivity and 
accuracy of findings.
    Over 80 meetings and workshops were held throughout the 
basin over a period of two years that allowed for public and 
stakeholder participation in the science process for the KHSA 
and the KBRA. The public and stakeholders provided input on 
hypotheses to be tested, study designs, available sources of 
information, data analysis, and conclusions to be drawn from 
the analyses. The public involvement improved the quality of 
reports.
    A summary of the findings from the science process is 
attached as an Appendix. All of these studies and materials are 
available to the public and can be found at http://
klamathrestoration.gov/.

         parties who have concerns about the klamath agreements

    We acknowledge that there are a small number of parties who 
participated in the negotiations but have chosen not to sign 
the Klamath Agreements. We respect that each party has its own 
unique concerns and must make its own decisions as to what it 
believes is in its best interest. Some of those who oppose the 
Klamath Agreements want to maintain the status quo or have 
general concerns about dam removal; others believe their 
resources are being inappropriately harmed or their rights are 
being terminated, or that they are bearing an unfair share of 
the adverse consequences of the Klamath Agreements.
    I wish to be clear that given the ongoing challenges and 
increasing demands for limited water resources, we should 
continue to evaluate opportunities to develop additional water 
storage and power generation opportunities where they make 
sense. But we should also not be afraid to evaluate reduction 
of water use or potential dam removal when the specific 
circumstances warrant. The KHSA, for example, reflects the 
unique circumstances of the Klamath Basin, where the owner of 
these private dams, in making a business decision that is in 
the best interests of its electricity customers and the 
company, has agreed to permit the Secretary of the Interior to 
evaluate whether their removal would advance fisheries and be 
in the overall public interest as part of a basin-wide 
restoration effort that addresses many of the systemic problems 
that continually plague the Klamath Basin.
    There are others who favor dam removal but do not support 
the Klamath Agreements because they either want to remove or 
significantly limit irrigated agriculture from the basin or 
believe that the assurances in the Agreements regarding water 
supply and the connected issue of river flows terminate tribal 
rights. As to the former, irrigated agriculture is part of the 
societal fabric of the basin and, as mentioned earlier, 
provides significant jobs and economic support to all 
communities of the basin. While the KBRA does provide further 
funding for voluntary retirement of up to 30,000 acre-feet of 
irrigation water on a willing seller or buyer basis, total 
removal of the loss of most of the irrigated agriculture in the 
basin is simply not consistent with a comprehensive and durable 
restoration program meant to assist the communities of the 
basin and their respective economies and ways of life. As to 
the latter, the tribal parties, state and federal fishery 
agencies, and environmental and fishing groups concluded that 
the water and fisheries program would significantly improve 
basin fisheries. The agreements do not terminate any tribal 
rights.
    We have also heard the concerns of those around the 
reservoirs whose properties and businesses may be most directly 
impacted by dam removal. On this point, we believe that if S. 
2379 is enacted, there should be a fund established, managed by 
representatives in local communities, to recompense land owners 
for significant diminishment in property value that occurs as a 
result of dam removal. The cost of such a fund, we believe, 
should be deemed a cost of mitigation associated with dam 
removal, and thus borne by non-federal sources. Upon enactment 
of S. 2379 we will meet with representatives from California 
and Oregon, as well as the local governments most affected by 
dam removal to assess the potential for establishment of such a 
fund.

                               conclusion

    The Administration supports enactment of S. 2379, which is 
vital to the communities of the Klamath Basin provided that all 
parties understand that full implementation of the Klamath 
Agreements will need additional, meaningful, non-federal cost-
share. Over the course of implementing S. 2379, the 
Administration will work closely with all the parties to secure 
additional non-federal sources of funding to offset the new 
federal costs and ensure timely implementation of the Klamath 
Agreements. This concludes my written statement. I am pleased 
to answer questions at the appropriate time.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 2379, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

           KLAMATH BASIN WATER SUPPLY ENHANCEMENT ACT OF 2000

Public Law 106-498

           *       *       *       *       *       *       *

SEC. 3. ADDITIONAL STUDIES.

           *       *       *       *       *       *       *

SEC. 4. WATER MANAGEMENT AND PLANNING ACTIVITIES.

    (a) Definitions.--In this section:
          (1) Off-project area.--The term ``Off-Project Area'' 
        means--
                  (A) the areas within the Sprague River, Sycan 
                River, Williamson River, and Wood Valley 
                (including Crooked Creek, Sevenmile Creek, 
                Fourmile Creek, and Crane Creek) subbasins 
                referred to in Exhibit B of the Upper Basin 
                Agreement; and
                  (B) to the extent provided for in the Upper 
                Basin Agreement, any other areas for which 
                claims described by section 1.3 or 2.5.1 of the 
                Upper Basin Agreement are settled as provided 
                for in section 2.5.1 of the Upper Basin 
                Agreement.
          (2) On-project power user.--The term ``On-Project 
        Power User'' has the meaning given the term in the 
        Restoration Agreement.
          (3) Restoration agreement.--The term `Restoration 
        Agreement' means the agreement entitled `Klamath River 
        Basin Restoration Agreement for the Sustainability of 
        Public and Trust Resources and Affected Communities' 
        and dated February 18, 2010 (including any amendments 
        adopted prior to the date of enactment of this Act and 
        any further amendment to that agreement approved 
        pursuant to section 3(a) of the Klamath Basin Water 
        Recovery and Economic Restoration Act of 2014).
          (4) Upper basin agreement.--The term `Upper Basin 
        Agreement' means the agreement entitled `Upper Klamath 
        Basin Comprehensive Agreement' and dated April 18, 2014 
        (including any amendment to that agreement).
    (b) Action by Secretary.--
          (1) In general.--The Secretary may carry out any 
        activities, including by entering into an agreement or 
        contract or otherwise making financial assistance 
        available--
                  (A) to align water supplies with demand, 
                including activities to reduce water 
                consumption and demand, consistent with the 
                Restoration Agreement or the Upper Basin 
                Agreement;
                  (B) to limit the net costs of power used to 
                manage water (including by arranging for 
                delivery of Federal power, consistent with the 
                Restoration Agreement and the Upper Basin 
                Agreement) for--
                          (i) the Klamath Project (within the 
                        meaning of section 2);
                          (ii) the On-Project Power Users;
                          (iii) irrigators in the Off-Project 
                        Area; and
                          (iv) the Klamath Basin National 
                        Wildlife Refuge Complex; and
                  (C) to restore any ecosystem and otherwise 
                protect fish and wildlife in the Klamath Basin 
                watershed, including tribal fishery resources 
                held in trust, consistent with Restoration 
                Agreement and the Upper Basin Agreement.
          (2) Inclusion.--Purchases of power by the Secretary 
        under paragraph (1)(B) shall be considered an 
        authorized sale under section 5(b)(3) of the Pacific 
        Northwest Electric Power Planning and Conservation Act 
        (16 U.S.C. 839c(b)(3)).

SEC. [4] 5. LIMITATION.

    Activities funded under this Act shall not be considered a 
supplemental or additional benefit under the Act of June 17, 
1902 (82 Stat. 388) and all Acts amendatory thereof or 
supplementary thereto.

SEC. [5] 6. WATER RIGHTS.

    Nothing in this Act shall be construed to--
          (1) create, by implication or otherwise, any reserved 
        water right or other right to the use of water;
          (2) invalidate, preempt, or create any exception to 
        State water law or an interstate compact governing 
        water;
          (3) alter the rights of any State to any appropriated 
        share of the waters of any body or surface or 
        groundwater, whether determined by past or future 
        interstate compacts or by past or future legislative or 
        final judicial allocations;
          (4) preempt or modify any State or Federal law or 
        interstate compact dealing with water quality or 
        disposal; or
          (5) confer upon any non-Federal entity the ability to 
        exercise any Federal right to the waters of any stream 
        or to any groundwater resources.

SEC. [6] 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized such sums as necessary to carry out 
the purposes of this Act. Activities conducted under this Act 
shall be nonreimbursable and nonreturnable.

                                Appendix

    SUMMARY OF KEY FINDINGS REGARDING KLAMATH RIVER DAM REMOVAL AND 
                         IMPLEMENTATION OF KBRA

    This document is intended to serve as a summary and, as 
such, numbers cited herein represent averages and/or aggregates 
which may include associated levels of uncertainty that are 
explained fully in the contributing studies. All of the 
scientific studies, which include the complete scientific 
analysis and associated uncertainties, are available at 
klamathrestoration.gov. Any language below that appears to be a 
statement of fact is the Department's best understanding and 
approximation of future events, based on extensive scientific 
study, but still subject to significant levels of uncertainty.
    Dam removal, sediment processes, and impacts on flooding:
           The most probable cost for full dam removal, 
        which is the preferred alternative identified in the 
        FEIS, is about $292 million in 2020 dollars and is 
        under the State cost cap of $450 million. There is a 99 
        percent probability that removal costs would be no more 
        than $493M and a 1 percent probability that removal 
        costs could be less than $238M.
           Dam removal would mobilize between one-third 
        and two-thirds of the 13 million cubic yards of 
        sediment behind the dams. The majority of the sediment 
        is fine-grained material that would be readily 
        transported to the Pacific Ocean 2 to 3 months 
        following the drawdown of reservoirs in the winter of 
        2020.
           Extensive chemical testing of sediments 
        behind the dams shows that human health would not be at 
        risk due to contact with these sediments.
           Dam removal would immediately restore more 
        natural water temperatures and dissolved oxygen 
        concentrations important to downstream fish and 
        fisheries.
           Dam removal would immediately eliminate 
        toxic algae produced in the reservoirs; toxic algae 
        create health concerns in the reservoirs and downstream 
        in the Klamath River for people, fish, and wildlife.
           Long-term flood risks would increase 
        slightly for about 18 miles downstream of the location 
        of Iron Gate Dam. Analyses show that some additional 
        structures currently outside the 100-year flood plain 
        would be located in a new 100-year floodplain following 
        dam removal. If dam removal were to proceed, the Dam 
        Removal Entity would work with willing landowners to 
        reduce or eliminate flood risk for these additional 
        structures.
    Impacts of dam removal and KBRA on fish and fisheries:
           The timing of reservoir drawdown in a single 
        winter season was designed to minimize negative impacts 
        of released sediments on sensitive fish species, 
        particularly federally listed Coho salmon.
           Basin-wide adult and juvenile salmon 
        mortality is expected to be less than 10 percent in the 
        year following dam removal, even under worst-case flow 
        conditions.
           In the long run, opening up fish passage to 
        the Upper Klamath Basin through dam removal and 
        restoring aquatic habitat under the KBRA would increase 
        salmon and steelhead production. For example, annual 
        Chinook salmon production would increase about 80 
        percent (ranging from 40 to 190 percent among modeled 
        years).
           The increased production would increase 
        Chinook salmon harvest about 50 percent for commercial 
        and sport ocean fisheries, as well as for in-river 
        tribal fisheries.
           Coho salmon would be expected to access 68 
        miles of stream habitat upstream of Iron Gate Dam, 
        including 23 miles currently inundated by the 
        reservoirs, thereby advancing the recovery of this 
        federally listed species.
           Steelhead trout would be able to migrate to 
        historical habitat above Iron Gate Dam, including up to 
        420 additional miles of stream, and thereby advancing 
        the most prized game fishery in the Basin.
           Dam removal would also expand the 
        distribution and number of trophy redband rainbow 
        trout, another prized game fishery, throughout the 
        hydroelectric reach of the river.
           Dam removal would totally eliminate a large 
        non-native game fishery on the reservoirs, which 
        includes bass and yellow perch.
    Climate change impacts on water temperatures, fish, and 
flows:
           Over a period of 50 years (2012 to 2061), 
        climate change models show that water temperatures in 
        the Klamath Basin would increase 1 to 3 degrees C (2 to 
        5 degrees F) and earlier snow melt would decrease 
        summer flows.
           Removing the Klamath River dams would 
        restore salmon access to critical cool-water habitat 
        for spawning and rearing in the Upper basin, thereby 
        helping to buffer against effects of climate change.
           Removing the dams would immediately improve 
        late summer and fall water temperatures for salmon 
        below this reach, thereby buffering against future 
        impacts of climate change.
           Decreased summer flows will worsen already 
        strained water supplies needed to support farms, 
        refuges, and fisheries.
    Impacts on jobs and regional economies:
           Dam removal and full KBRA implementation 
        would create a number of full time, part time, and 
        temporary jobs:
                    Hundreds of commercial fishing jobs in five 
                management areas from northern California to 
                central Oregon;
                    1,400 jobs during the year of dam removal;
                    300 annual average jobs over 15 years for 
                KBRA programs;
                    70 to 695 farm jobs in drought years 
                depending on drought intensity.
        Dam removal would also result in the loss of about 70 
        jobs associated with the operation and maintenance of 
        the dams and changes in the recreational industry 
        (reductions in whitewater rafting and reservoir 
        fishing/boating).
    Tribal and cultural impacts:
           All of the native people residing in the 
        Klamath River environment have spiritual beliefs and 
        traditional practices that are inseparable from the 
        River and surrounding homeland environments. Dam 
        removal and implementation of the KBRA would help 
        address tribal trust and social issues identified by 
        the Klamath River Basin Tribes as detrimental to their 
        traditional way of life. Dam removal would have 
        beneficial effects on water quality, fisheries, 
        terrestrial resources, and traditional cultural 
        practices. Dam removal would enhance the ability of 
        Indian tribes in the Klamath River Basin to conduct 
        traditional ceremonies and other traditional practices.
           Dam removal and reservoir drawdown could 
        affect Native American cultural resources sites 
        reported to be currently submerged beneath the 
        reservoirs. Human remains may be associated with these 
        sites. Plans to identify cultural resources and to 
        avoid, minimize, or mitigate impacts to those resources 
        would be developed in consultations with the 
        appropriate State Historic Preservation Office, Tribes, 
        and other Native American organizations.
           The removal of the dams and associated 
        facilities, all part of the Klamath Hydroelectric 
        Project, would result in effects to those historic 
        properties. Plans to avoid, minimize, or mitigate 
        effects to historic era properties would be developed 
        in consultation with the appropriate State Historic 
        Preservation Office and other historic preservation 
        entities.
    Hydropower, green house gas emissions, and electricity 
customers:
           Dam removal would eliminate about 82 
        megawatts of hydropower in 2020 (enough power for 
        70,000 homes), which would be made up by a mix of other 
        energy sources.
           Following dam removal in 2020, approximately 
        526,000 metric tons of carbon dioxide equivalents 
        (MTCO2e) per year would be emitted to the atmosphere 
        from replacement power assuming PacifiCorp's current 
        resource generation mix. This number would decrease to 
        approximately 451,000 MTCO2e per year assuming 
        PacifiCorp met California's goal for replacement power 
        sources.
           A 2010 analysis by PacifiCorp prepared for 
        the Oregon and California PUCs demonstrates that dam 
        removal as laid out in KHSA would be less costly for 
        their customers (about $251 million), and less risky, 
        as compared to likely customer costs associated with 
        relicensing the four dams, which would be in excess of 
        $460 million over a 40-year license term.
    Wildlife refuges:
           Dam removal and KBRA implementation would 
        allow the refuges associated with Reclamation's Klamath 
        Project to have greater certainty about water 
        deliveries with newly established allocations, even 
        during drought years, and increased flexibility in the 
        timing of water deliveries.
           Full refuge needs would likely be met in 88 
        percent of years; currently refuge needs for water are 
        met in less than 10 percent of the years. These NWRs 
        wetlands are critical components of the Pacific Flyway, 
        the corridor for migrating birds from as far away as 
        Alaska and Mexico.
           The additional water deliveries--and the 
        increased predictability of those deliveries would mean 
        that greater numbers of migratory waterfowl, non-game 
        water birds, wintering bald eagles, and other sensitive 
        species would be supported by the refuges and would 
        increase recreational wildlife viewing.
           The estimated increase of over 190,000 
        waterfowl in the fall would result in an additional 
        3,600 hunting trips annually.
    Real estate:
           Upstream of Iron Gate Dam studies identified 
        668 parcels near Copco 1 and Iron Gate reservoirs which 
        either have water frontage, water access, or views of 
        reservoirs. Of these 668 parcels, 127 include single 
        family homes. These 668 land parcels would decline in 
        value if dams were removed and reservoirs drained.
           Land values of parcels downstream of Iron 
        Gate Dam, with river views and river access, may 
        increase in the long-term because of restoration of the 
        river, including improved water quality and more robust 
        salmon and steelhead runs.
    Flows:
           The differences in monthly average flows 
        between dams remaining in place and dam removal options 
        are relatively small; however, without the dams, pulse 
        flows and other seasonal fluctuations beneficial to 
        fish would occur more often.
           The absolute minimum flow target under the 
        KBRA would be approximately 800 cubic feet per second 
        (cfs) at the location of Iron Gate Dam. In most months 
        and years, however, flows would be much greater. In 
        extreme drought years, flows could drop slightly below 
        this target, but never drop below 700 cfs owing to the 
        water-management provisions in the KBRA.
```