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[Senate Report 114-187]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 332
114th Congress     }                                     {      Report
                                 SENATE
 1st Session       }                                     {     114-187

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

 
   YAKIMA RIVER BASIN WATER ENHANCEMENT PROJECT PHASE III ACT OF 2015

                                _______
                                

               December 16, 2015.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1694]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1694) to amend Public Law 103-434 to 
authorize Phase III of the Yakima River Basin Water Enhancement 
Project for the purposes of improving water management in the 
Yakima River basin, and for other purposes, having considered 
the same, reports favorably thereon with an amendment in the 
nature of a substitute and recommends that the bill, as 
amended, do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose of the Measure...........................................    11
Background and Need..............................................    11
Legislative History..............................................    13
Committee Recommendation and Tabulation of Votes.................    13
Committee Amendment..............................................    13
Section-by-Section Analysis......................................    13
Cost and Budgetary Considerations................................    17
Regulatory Impact Evaluation.....................................    17
Congressionally Directed Spending................................    17
Executive Communications.........................................    17
Changes in Existing Law..........................................    23

    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 ``Yakima River Basin Water Enhancement 
Project Phase III Act of 2015''.

SEC. 2. MODIFICATION OF TERMS, PURPOSES, AND DEFINITIONS.

    (a) Modification of Terms.--Title XII of Public Law 103-434 (108 
Stat. 4550) is amended--
          (1) by striking ``Yakama Indian'' each place it appears 
        (except section 1204(g)) and inserting ``Yakama''; and
          (2) by striking ``Superintendent'' each place it appears and 
        inserting ``Manager''.
    (b) Modification of Purposes.--Section 1201 of Public Law 103-434 
(108 Stat. 4550) is amended--
          (1) by striking paragraph (1) and inserting the following:
          ``(1) to protect, mitigate, and enhance fish and wildlife and 
        the recovery and maintenance of self-sustaining harvestable 
        populations of fish and other aquatic life, both anadromous and 
        resident species, throughout their historic distribution range 
        in the Yakima Basin through--
                  ``(A) improved water management and the constructions 
                of fish passage at storage and diversion dams, as 
                authorized under the Hoover Power Plant Act of 1984 (43 
                U.S.C. 619 et seq.);
                  ``(B) improved instream flows and water supplies;
                  ``(C) improved water quality, watershed, and 
                ecosystem function;
                  ``(D) protection, creation, and enhancement of 
                wetlands; and
                  ``(E) other appropriate means of habitat 
                improvement;'';
          (2) in paragraph (2), by inserting ``, municipal, industrial, 
        and domestic water supply and use purposes, especially during 
        drought years, including reducing the frequency and severity of 
        water supply shortages for pro-ratable irrigation entities'' 
        before the semicolon at the end;
          (3) by striking paragraph (4);
          (4) by redesignating paragraph (3) as paragraph (4);
          (5) by inserting after paragraph (2) the following:
          ``(3) to authorize the Secretary to make water available for 
        purchase or lease for meeting municipal, industrial, and 
        domestic water supply purposes;'';
          (6) by redesignating paragraphs (5) and (6) as paragraphs (6) 
        and (8), respectively;
          (7) by inserting after paragraph (4) (as so redesignated) the 
        following:
          ``(5) to realize sufficient water savings from implementing 
        the Yakima River Basin Integrated Water Resource Management 
        Plan, so that not less than 85,000 acre feet of water savings 
        are achieved by implementing the first phase of the Integrated 
        Plan pursuant to section 1213(a);'';
          (8) in paragraph (6) (as so redesignated)--
                  (A) by inserting ``an increase in'' before 
                ``voluntary''; and
                  (B) by striking ``and'' at the end;
          (9) by inserting after paragraph (6) (as so redesignated) the 
        following:
          ``(7) to encourage an increase in the use of, and reduce the 
        barriers to, water transfers, leasing, markets, and other 
        voluntary transactions among public and private entities to 
        enhance water management in the Yakima River basin;'';
          (10) in paragraph (8) (as redesignated by paragraph (6)), by 
        striking the period at the end and inserting a semicolon; and
          (11) by adding at the end the following:
          ``(9) to improve the resilience of the ecosystems, economies, 
        and communities in the Basin as they face drought, hydrologic 
        changes, and other related changes and variability in natural 
        and human systems, for the benefit of both the people and the 
        fish and wildlife of the region; and
          ``(10) to authorize and implement the Yakima River Basin 
        Integrated Water Resource Management Plan as Phase III of the 
        Yakima River Basin Water Enhancement Project, as a balanced and 
        cost-effective approach to maximize benefits to the communities 
        and environment in the Basin.''.
    (c) Modification of Definitions.--Section 1202 of Public Law 103-
434 (108 Stat. 4550) is amended--
          (1) by redesignating paragraphs (6), (7), (8), (9), (10), 
        (11), (12), (13), and (14) as paragraphs (8), (10), (11), (13), 
        (14), (15), (16), (18), and (19), respectively;
          (2) by inserting after paragraph (5) the following:
          ``(6) Designated federal official.--The term `designated 
        Federal official' means the Commissioner of Reclamation (or a 
        designee), acting pursuant to the charter of the Conservation 
        Advisory Group.
          ``(7) Integrated plan.--The terms `Integrated Plan' and 
        `Yakima River Basin Integrated Water Resource Plan' mean the 
        plan and activities authorized by the Yakima River Basin 
        Enhancement Project Phase III Act of 2015 and the amendments 
        made by that Act, to be carried out in cooperation with and in 
        addition to activities of the State of Washington and Yakama 
        Nation.'';
          (3) by inserting after paragraph (8) (as redesignated by 
        paragraph (1)) the following:
          ``(9) Municipal, industrial, and domestic water supply and 
        use.--The term `municipal, industrial, and domestic water 
        supply and use' means the supply and use of water for--
                  ``(A) domestic consumption (whether urban or rural);
                  ``(B) maintenance and protection of public health and 
                safety;
                  ``(C) manufacture, fabrication, processing, assembly, 
                or other production of a good or commodity;
                  ``(D) production of energy;
                  ``(E) fish hatcheries; or
                  ``(F) water conservation activities relating to a use 
                described in subparagraphs (A) through (E).'';
          (4) by inserting after paragraph (11) (as redesignated by 
        paragraph (1)) the following:
          ``(12) Proratable irrigation entity.--The term `proratable 
        irrigation entity' means a district, project, or State-
        recognized authority, board of control, agency, or entity 
        located in the Yakima River basin that--
                  ``(A) manages and delivers irrigation water to farms 
                in the basin; and
                  ``(B) possesses, or the members of which possess, 
                water rights that are proratable during periods of 
                water shortage.''; and
          (5) by inserting after paragraph (16) (as redesignated by 
        paragraph (1)) the following:
          ``(17) Yakima enhancement project; yakima river basin water 
        enhancement project.--The terms `Yakima Enhancement Project' 
        and `Yakima River Basin Water Enhancement Project' mean the 
        Yakima River basin water enhancement project authorized by 
        Congress pursuant to this Act and other Acts (including Public 
        Law 96-162 (93 Stat. 1241), section 109 of Public Law 98-381 
        (16 U.S.C. 839b note; 98 Stat. 1340), Public Law 105-62 (111 
        Stat. 1320), and Public Law 106-372 (114 Stat. 1425)) to 
        promote water conservation, water supply, habitat, and stream 
        enhancement improvements in the Yakima River basin.''.

SEC. 3. YAKIMA RIVER BASIN WATER CONSERVATION PROGRAM.

    Section 1203 of Public Law 103-434 (108 Stat. 4551) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) in the second sentence, by striking 
                        ``title'' and inserting ``section''; and
                          (ii) in the third sentence, by striking 
                        ``within 5 years of the date of enactment of 
                        this Act''; and
                  (B) in paragraph (2), by striking ``irrigation'' and 
                inserting ``the number of irrigated acres'';
          (2) in subsection (c)--
                  (A) in paragraph (2)--
                          (i) in each of subparagraphs (A) through (D), 
                        by striking the comma at the end and inserting 
                        a semicolon;
                          (ii) in subparagraph (E), by striking the 
                        comma at the end and inserting ``; and'';
                          (iii) in subparagraph (F), by striking 
                        ``Department of Wildlife of the State of 
                        Washington, and'' and inserting ``Department of 
                        Fish and Wildlife of the State of 
                        Washington.''; and
                          (iv) by striking subparagraph (G);
                  (B) in paragraph (3)--
                          (i) in each of subparagraphs (A) through (C), 
                        by striking the comma at the end and inserting 
                        a semicolon;
                          (ii) in subparagraph (D), by striking ``, 
                        and'' and inserting a semicolon;
                          (iii) in subparagraph (E), by striking the 
                        period at the end and inserting ``; and''; and
                          (iv) by adding at the end the following:
                  ``(F) provide recommendations to advance the purposes 
                and programs of the Yakima Enhancement Project, 
                including the Integrated Plan.''; and
                  (C) by striking paragraph (4) and inserting the 
                following:
          ``(4) Authority of designated federal official.--The 
        designated Federal official may--
                  ``(A) arrange and provide logistical support for 
                meetings of the Conservation Advisory Group;
                  ``(B) use a facilitator to serve as a moderator for 
                meetings of the Conservation Advisory Group or provide 
                additional logistical support; and
                  ``(C) grant any request for a facilitator by any 
                member of the Conservation Advisory Group.'';
          (3) in subsection (d), by adding at the end the following:
          ``(4) Payment of local share by state or federal 
        government.--
                  ``(A) In general.--The State or the Federal 
                Government may fund not more than the 17.5 percent 
                local share of the costs of the Basin Conservation 
                Program in exchange for the longterm use of conserved 
                water, subject to the requirement that the funding by 
                the Federal Government of the local share of the costs 
                shall provide a quantifiable public benefit in meeting 
                Federal responsibilities in the Basin and the purposes 
                of this title.
                  ``(B) Use of conserved water.--The Yakima Project 
                Manager may use water resulting from conservation 
                measures taken under this title, in addition to water 
                that the Bureau of Reclamation may acquire from any 
                willing seller through purchase, donation, or lease, 
                for water management uses pursuant to this title.'';
          (4) in subsection (e), by striking the first sentence and 
        inserting the following: ``To participate in the Basin 
        Conservation Program, as described in subsection (b), an entity 
        shall submit to the Secretary a proposed water conservation 
        plan.'';
          (5) in subsection (i)(3)--
                  (A) by striking ``purchase or lease'' each place it 
                appears and inserting ``purchase, lease, or 
                management''; and
                  (B) in the third sentence, by striking ``made 
                immediately upon availability'' and all that follows 
                through ``Committee'' and inserting ``continued as 
                needed to provide water to be used by the Yakima 
                Project Manager as recommended by the System Operations 
                Advisory Committee and the Conservation Advisory 
                Group''; and
          (6) in subsection (j)(4), in the first sentence, by striking 
        ``initial acquisition'' and all that follows through ``flushing 
        flows'' and inserting ``acquisition of water from willing 
        sellers or lessors specifically to provide improved instream 
        flows for anadromous and resident fish and other aquatic life, 
        including pulse flows to facilitate outward migration of 
        anadromous fish''.

SEC. 4. YAKIMA BASIN WATER PROJECTS, OPERATIONS, AND AUTHORIZATIONS.

    (a) Yakama Nation Projects.--Section 1204 of Public Law 103-434 
(108 Stat. 4555) is amended--
          (1) in subsection (a)(2), in the first sentence, by striking 
        ``not more than $23,000,000'' and inserting ``not more than 
        $100,000,000''; and
          (2) in subsection (g)--
                  (A) by striking the subsection heading and inserting 
                ``REDESIGNATION OF YAKAMA INDIAN NATION TO YAKAMA 
                NATION.--'';
                  (B) by striking paragraph (1) and inserting the 
                following:
          ``(1) Redesignation.--The Confederated Tribes and Bands of 
        the Yakama Indian Nation shall be known and designated as the 
        `Confederated Tribes and Bands of the Yakama Nation'.''; and
                  (C) in paragraph (2), by striking ``deemed to be a 
                reference to the `Confederated Tribes and Bands of the 
                Yakama Indian Nation'.'' and inserting ``deemed to be a 
                reference to the Confederated Tribes and Bands of the 
                Yakama Nation'.''.
    (b) Operation of Yakima Basin Projects.--Section 1205 of Public Law 
103-434 (108 Stat. 4557) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (4)--
                          (i) in subparagraph (A)--
                                  (I) in clause (i)--
                                          (aa) by inserting 
                                        ``additional'' after 
                                        ``secure'';
                                          (bb) by striking ``flushing'' 
                                        and inserting ``pulse''; and
                                          (cc) by striking ``uses'' and 
                                        inserting ``uses, in addition 
                                        to the quantity of water 
                                        provided under the treaty 
                                        between the Yakama Nation and 
                                        the United States''';
                                  (II) by striking clause (ii);
                                  (III) by redesignating clause (iii) 
                                as clause (ii); and
                                  (IV) in clause (ii) (as so 
                                redesignated) by inserting ``and water 
                                rights mandated'' after ``goals''; and
                          (ii) in subparagraph (B)(i), in the first 
                        sentence, by inserting ``in proportion to the 
                        funding received'' after ``Program'';
          (2) in subsection (b) (as amended by section 2(a)(2)), in the 
        second sentence, by striking ``instream flows for use by the 
        Yakima Project Manager as flushing flows or as otherwise'' and 
        inserting ``fishery purposes, as''; and
          (3) in subsection (e), by striking paragraph (1) and 
        inserting the following:
          ``(1) In general.--Additional purposes of the Yakima Project 
        shall be any of the following:
                  ``(A) To recover and maintain self-sustaining 
                harvestable populations of native fish, both anadromous 
                and resident species, throughout their historic 
                distribution range in the Yakima Basin.
                  ``(B) To protect, mitigate, and enhance aquatic life 
                and wildlife.
                  ``(C) Recreation.
                  ``(D) Municipal, industrial, and domestic use.''.
    (c) Lake Cle Elum Authorization of Appropriations.--Section 
1206(a)(1) of Public Law 103-434 (108 Stat. 4560), is amended, in the 
matter preceding subparagraph (A), by striking ``at September'' and all 
that follows through ``to--'' and inserting ``not more than $12,000,000 
to--''.
    (d) Enhancement of Water Supplies for Yakima Basin Tributaries.--
Section 1207 of Public Law 103-434 (108 Stat. 4560) is amended--
          (1) in the heading, by striking ``SUPPLIES'' and inserting 
        ``MANAGEMENT'';
          (2) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``supplies'' and inserting ``management'';
                  (B) in paragraph (1), by inserting ``and water supply 
                entities'' after ``owners''; and
                  (C) in paragraph (2)--
                          (i) in subparagraph (A), by inserting ``that 
                        choose not to participate or opt out of 
                        tributary enhancement projects pursuant to this 
                        section'' after ``water right owners''; and
                          (ii) in subparagraph (B), by inserting 
                        ``nonparticipating'' before ``tributary water 
                        users'';
          (3) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) by striking the paragraph designation and 
                        all that follows through ``(but not limited 
                        to)--'' and inserting the following:
          ``(1) In general.--The Secretary, following consultation with 
        the State of Washington, tributary water right owners, and the 
        Yakama Nation, and on agreement of appropriate water right 
        owners, is authorized to conduct studies to evaluate measures 
        to further Yakima Project purposes on tributaries to the Yakima 
        River. Enhancement programs that use measures authorized by 
        this subsection may be investigated and implemented by the 
        Secretary in tributaries to the Yakima River, including Taneum 
        Creek, other areas, or tributary basins that currently or could 
        potentially be provided supplemental or transfer water by 
        entities, such as the Kittitas Reclamation District or the 
        Yakima-Tieton Irrigation District, subject to the condition 
        that activities may commence on completion of applicable and 
        required feasibility studies, environmental reviews, and cost-
        benefit analyses that include favorable recommendations for 
        further project development, as appropriate. Measures to 
        evaluate include--'';
                          (ii) by indenting subparagraphs (A) through 
                        (F) appropriately;
                          (iii) in subparagraph (A), by inserting 
                        before the semicolon at the end the following: 
                        ``, including irrigation efficiency 
                        improvements (in coordination with programs of 
                        the Department of Agriculture), consolidation 
                        of diversions or administration, and diversion 
                        scheduling or coordination'';
                          (iv) by redesignating subparagraphs (C) 
                        through (F) as subparagraphs (E) through (H), 
                        respectively;
                          (v) by inserting after subparagraph (B) the 
                        following:
                  ``(C) improvements in irrigation system management or 
                delivery facilities within the Yakima River basin when 
                those improvements allow for increased irrigation 
                system conveyance and corresponding reduction in 
                diversion from tributaries or flow enhancements to 
                tributaries through direct flow supplementation or 
                groundwater recharge;
                  ``(D) improvements of irrigation system management or 
                delivery facilities to reduce or eliminate excessively 
                high flows caused by the use of natural streams for 
                conveyance or irrigation water or return water;'';
                          (vi) in subparagraph (E) (as redesignated by 
                        clause (iv)), by striking ``groundwater'' and 
                        inserting ``groundwater recharge and'';
                          (vii) in subparagraph (G) (as redesignated by 
                        clause (iv)), by inserting ``or transfer'' 
                        after ``purchase''; and
                          (viii) in subparagraph (H) (as redesignated 
                        by clause (iv)), by inserting ``stream 
                        processes and'' before ``stream habitats'';
                  (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``the Taneum Creek study'' and 
                        inserting ``studies under this subsection'';
                          (ii) in subparagraph (B)--
                                  (I) by striking ``and economic'' and 
                                inserting ``, infrastructure, economic, 
                                and land use''; and
                                  (II) by striking ``and'' at the end;
                          (iii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                          (iv) by adding at the end the following:
                  ``(D) any related studies already underway or 
                undertaken.''; and
                  (C) in paragraph (3), in the first sentence, by 
                inserting ``of each tributary or group of tributaries'' 
                after ``study'';
          (4) in subsection (c)--
                  (A) in the heading, by inserting ``AND NONSURFACE 
                STORAGE'' after ``NONSTORAGE''; and
                  (B) in the matter preceding paragraph (1), by 
                inserting ``and nonsurface storage'' after 
                ``nonstorage'';
          (5) by striking subsection (d);
          (6) by redesignating subsection (e) as subsection (d); and
          (7) in paragraph (2) of subsection (d) (as so redesignated)--
                  (A) in the first sentence--
                          (i) by inserting ``and implementation'' after 
                        ``investigation'';
                          (ii) by striking ``other'' before ``Yakima 
                        River''; and
                          (iii) by inserting ``and other water supply 
                        entities'' after ``owners''; and
                  (B) by striking the second sentence.
    (e) Chandler Pumping Plant and Powerplant-Operations at Prosser 
Diversion Dam.--Section 1208(d) of Public Law 103-434 (108 Stat. 4562; 
114 Stat. 1425) is amended by inserting ``negatively'' before 
``affected''.
    (f) Interim Comprehensive Basin Operating Plan.--Section 1210(c) of 
Public Law 103-434 (108 Stat. 4564) is amended by striking ``$100,000'' 
and inserting ``$200,000''.
    (g) Environmental Compliance.--Section 1211 of Public Law 103-434 
(108 Stat. 4564) is amended by striking ``$2,000,000'' and inserting 
``$5,000,000''.

SEC. 5. AUTHORIZATION OF PHASE III OF YAKIMA RIVER BASIN WATER 
                    ENHANCEMENT PROJECT.

    Title XII of Public Law 103-434 (108 Stat. 4550) is amended by 
adding at the end the following:

``SEC. 1213. AUTHORIZATION OF THE INTEGRATED PLAN AS PHASE III OF 
                    YAKIMA RIVER BASIN WATER ENHANCEMENT PROJECT.

    ``(a) Integrated Plan.--
          ``(1) In general.--The Secretary shall implement the 
        Integrated Plan as Phase III of the Yakima River Basin Water 
        Enhancement Project in accordance with this section and 
        applicable laws.
          ``(2) Initial development phase of the integrated plan.--
                  ``(A) In general.--The Secretary, in coordination 
                with the State of Washington and Yakama Nation and 
                subject to feasibility studies, environmental reviews, 
                and the availability of appropriations, shall implement 
                an initial development phase of the Integrated Plan, 
                to--
                          ``(i) complete the planning, design, and 
                        construction or development of upstream and 
                        downstream fish passage facilities, as 
                        previously authorized by the Hoover Power Plant 
                        Act of 1984 (43 U.S.C. 619 et seq.) at Cle Elum 
                        Reservoir and another Yakima Project reservoir 
                        identified by the Secretary as consistent with 
                        the Integrated Plan, subject to the condition 
                        that, if the Yakima Project reservoir 
                        identified by the Secretary contains a 
                        hydropower project licensed by the Federal 
                        Energy Regulatory Commission (FERC), the 
                        Secretary shall cooperate with FERC in a timely 
                        manner to ensure that actions taken by the 
                        Secretary are consistent with the applicable 
                        hydropower project license;
                          ``(ii) negotiate long-term agreements with 
                        participating proratable irrigation entities in 
                        the Yakima Basin and, acting through the Bureau 
                        of Reclamation, coordinate between Bureaus of 
                        the Department of the Interior and with the 
                        heads of other Federal agencies to negotiate 
                        agreements concerning leases, easements, and 
                        rights-of-way on Federal land, and other terms 
                        and conditions determined to be necessary to 
                        allow for the non-Federal financing, 
                        construction, operation, and maintenance of--
                                  ``(I) new facilities needed to access 
                                and deliver inactive storage in Lake 
                                Kachess for the purpose of providing 
                                drought relief for irrigation (known as 
                                the `Kachess Drought Relief Pumping 
                                Plant'); and
                                  ``(II) a conveyance system to allow 
                                transfer of water between Keechelus 
                                Reservoir to Kachess Reservoir for 
                                purposes of improving operational 
                                flexibility for the benefit of both 
                                fish and irrigation (known as the `K to 
                                K Pipeline');
                          ``(iii) participate in, provide funding for, 
                        and accept non-Federal financing for--
                                  ``(I) water conservation projects, 
                                not subject to the provisions of the 
                                Basin Conservation Program described in 
                                section 1203, that are intended to 
                                partially implement the Integrated Plan 
                                by providing 85,000 acre-feet of 
                                conserved water to improve tributary 
                                and mainstem stream flow; and
                                  ``(II) aquifer storage and recovery 
                                projects;
                          ``(iv) study, evaluate, and conduct 
                        feasibility analyses and environmental reviews 
                        of fish passage, water supply (including 
                        groundwater and surface water storage), 
                        conservation, habitat restoration projects, and 
                        other alternatives identified as consistent 
                        with the purposes of this Act, for the initial 
                        and future phases of the Integrated Plan;
                          ``(v) coordinate with and assist the State of 
                        Washington in implementing a robust water 
                        market to enhance water management in the 
                        Yakima River basin, including--
                                  ``(I) assisting in identifying ways 
                                to encourage and increase the use of, 
                                and reduce the barriers to, water 
                                transfers, leasing, markets, and other 
                                voluntary transactions among public and 
                                private entities in the Yakima River 
                                basin;
                                  ``(II) providing technical 
                                assistance, including scientific data 
                                and market information; and
                                  ``(III) negotiating agreements that 
                                would facilitate voluntary water 
                                transfers between entities, including 
                                as appropriate, the use of federally 
                                managed infrastructure; and
                          ``(vi) enter into cooperative agreements 
                        with, or, subject to a minimum non-Federal 
                        cost-sharing requirement of 50 percent, make 
                        grants to, the Yakama Nation, the State of 
                        Washington, Yakima River basin irrigation 
                        districts, water districts, conservation 
                        districts, other local governmental entities, 
                        nonprofit organizations, and land owners to 
                        carry out this title under such terms and 
                        conditions as the Secretary may require, 
                        including the following purposes:
                                  ``(I) Land and water transfers, 
                                leases, and acquisitions from willing 
                                participants, so long as the acquiring 
                                entity shall hold title and be 
                                responsible for any and all required 
                                operations, maintenance, and management 
                                of that land and water.
                                  ``(II) To combine or relocate 
                                diversion points, remove fish barriers, 
                                or for other activities that increase 
                                flows or improve habitat in the Yakima 
                                River and its tributaries in 
                                furtherance of this title.
                                  ``(III) To implement, in partnership 
                                with Federal and non-Federal entities, 
                                projects to enhance the health and 
                                resilience of the watershed.
                  ``(B) Commencement date.--The Secretary shall 
                commence implementation of the activities included 
                under the initial development phase pursuant to this 
                paragraph--
                          ``(i) on the date of enactment of this 
                        section; and
                          ``(ii) on completion of applicable 
                        feasibility studies, environmental reviews, and 
                        cost-benefit analyses that include favorable 
                        recommendations for further project 
                        development.
          ``(3) Intermediate and final phases.--
                  ``(A) In general.--The Secretary, in coordination 
                with the State of Washington and in consultation with 
                the Yakama Nation, shall develop plans for intermediate 
                and final development phases of the Integrated Plan to 
                achieve the purposes of this Act, including conducting 
                applicable feasibility studies, environmental reviews, 
                and other relevant studies needed to develop the plans.
                  ``(B) Intermediate phase.--The Secretary shall 
                develop an intermediate development phase to implement 
                the Integrated Plan that, subject to authorization and 
                appropriation, would commence not later than 10 years 
                after the date of enactment of this section.
                  ``(C) Final phase.--The Secretary shall develop a 
                final development phase to implement the Integrated 
                Plan that, subject to authorization and appropriation, 
                would commence not later than 20 years after the date 
                of enactment of this section.
          ``(4) Contingencies.--The implementation by the Secretary of 
        projects and activities identified for implementation under the 
        Integrated Plan shall be--
                  ``(A) subject to authorization and appropriation;
                  ``(B) contingent on the completion of applicable 
                feasibility studies, environmental reviews, and cost-
                benefit analyses that include favorable recommendations 
                for further project development;
                  ``(C) implemented on public review and a 
                determination by the Secretary that design, 
                construction, and operation of a proposed project or 
                activity is in the best interest of the public; and
                  ``(D) in compliance with all applicable laws, 
                including the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.) and the Endangered Species Act 
                of 1973 (16 U.S.C. 1531 et seq).
          ``(5) Progress report.--
                  ``(A) In general.--Not later than 5 years after the 
                date of enactment of this section, the Secretary, in 
                conjunction with the State of Washington and in 
                consultation with the Yakama Nation, shall submit to 
                the Committee on Energy and Natural Resources of the 
                Senate and the Committee on Natural Resources of the 
                House of Representatives a progress report on the 
                development and implementation of the Integrated Plan.
                  ``(B) Requirements.--The progress report under this 
                paragraph shall--
                          ``(i) provide a review and reassessment, if 
                        needed, of the objectives of the Integrated 
                        Plan, as applied to all elements of the 
                        Integrated Plan;
                          ``(ii) assess, through performance metrics 
                        developed at the initiation of, and measured 
                        throughout the implementation of, the 
                        Integrated Plan, the degree to which the 
                        implementation of the initial development phase 
                        addresses the objectives and all elements of 
                        the Integrated Plan;
                          ``(iii) identify the amount of Federal 
                        funding and non-Federal contributions received 
                        and expended during the period covered by the 
                        report;
                          ``(iv) describe the pace of project 
                        development during the period covered by the 
                        report;
                          ``(v) identify additional projects and 
                        activities proposed for inclusion in any future 
                        phase of the Integrated Plan to address the 
                        objectives of the Integrated Plan, as applied 
                        to all elements of the Integrated Plan; and
                          ``(vi) for water supply projects--
                                  ``(I) provide a preliminary 
                                discussion of the means by which--
                                          ``(aa) water and costs 
                                        associated with each 
                                        recommended project would be 
                                        allocated among authorized 
                                        uses; and
                                          ``(bb) those allocations 
                                        would be consistent with the 
                                        objectives of the Integrated 
                                        Plan; and
                                  ``(II) establish a plan for 
                                soliciting and formalizing 
                                subscriptions among individuals and 
                                entities for participation in any of 
                                the recommended water supply projects 
                                that will establish the terms for 
                                participation, including fiscal 
                                obligations associated with 
                                subscription.
    ``(b) Financing, Construction, Operation, and Maintenance of 
Kachess Drought Relief Pumping Plant and K to K Pipeline.--
          ``(1) Agreements.--Long-term agreements negotiated between 
        the Secretary and participating proratable irrigation entities 
        in the Yakima Basin for the non-Federal financing, 
        construction, operation, and maintenance of the Drought Relief 
        Pumping Plant and K to K Pipeline shall include provisions 
        regarding--
                  ``(A) responsibilities of the participating 
                proratable irrigation entities for the planning, 
                design, and construction of infrastructure in 
                consultation and coordination with the Secretary;
                  ``(B) property titles and responsibilities of the 
                participating proratable irrigation entities for the 
                maintenance of and liability for all infrastructure 
                constructed under this title;
                  ``(C) operation and integration of the projects by 
                the Secretary in the operation of the Yakima Project;
                  ``(D) costs associated with the design, financing, 
                construction, operation, maintenance, and mitigation of 
                projects, with the costs of Federal oversight and 
                review to be nonreimbursable to the participating 
                proratable irrigation entities and the Yakima Project; 
                and
                  ``(E) responsibilities for the pumping and 
                operational costs necessary to provide the total water 
                supply available made inaccessible due to drought 
                pumping during the preceding 1 or more calendar years, 
                in the event that the Kachess Reservoir fails to refill 
                as a result of pumping drought storage water during the 
                preceding 1 or more calendar years, which shall remain 
                the responsibility of the participating proratable 
                irrigation entities.
          ``(2) Use of kachess reservoir stored water.--
                  ``(A) In general.--The additional stored water made 
                available by the construction of facilities to access 
                and deliver inactive storage in Kachess Reservoir under 
                subsection (a)(2)(A)(ii)(I) shall--
                          ``(i) be considered to be Yakima Project 
                        water;
                          ``(ii) not be part of the total water supply 
                        available, as that term is defined in various 
                        court rulings; and
                          ``(iii) be used exclusively by the 
                        Secretary--
                                  ``(I) to enhance the water supply in 
                                years when the total water supply 
                                available is not sufficient to provide 
                                70 percent of proratable entitlements 
                                in order to make that additional water 
                                available up to 70 percent of 
                                proratable entitlements to the Kittitas 
                                Reclamation District, the Roza 
                                Irrigation District, or other 
                                proratable irrigation entities 
                                participating in the construction, 
                                operation, and maintenance costs of the 
                                facilities under this title under such 
                                terms and conditions to which the 
                                districts may agree, subject to the 
                                conditions that--
                                          ``(aa) the Bureau of Indian 
                                        Affairs, the Wapato Irrigation 
                                        Project, and the Yakama Nation, 
                                        on an election to participate, 
                                        may also obtain water from 
                                        Kachess Reservoir inactive 
                                        storage to enhance applicable 
                                        existing irrigation water 
                                        supply in accordance with such 
                                        terms and conditions to which 
                                        the Bureau of Indian Affairs 
                                        and the Yakama Nation may 
                                        agree; and
                                          ``(bb) the additional supply 
                                        made available under this 
                                        clause shall be available to 
                                        participating individuals and 
                                        entities in proportion to the 
                                        proratable entitlements of the 
                                        participating individuals and 
                                        entities, or in such other 
                                        proportion as the participating 
                                        entities may agree; and
                                  ``(II) to facilitate reservoir 
                                operations in the reach of the Yakima 
                                River between Keechelus Dam and Easton 
                                Dam for the propagation of anadromous 
                                fish.
                  ``(B) Effect of paragraph.--Nothing in this paragraph 
                affects (as in existence on the date of enactment of 
                this section) any contract, law (including regulations) 
                relating to repayment costs, water right, or Yakama 
                Nation treaty right.
          ``(3) Commencement.--The Secretary shall not commence 
        entering into agreements pursuant to subsection (a)(2)(A)(ii) 
        or subsection (b)(1) or implementing any activities pursuant to 
        the agreements before the date on which--
                  ``(A) all applicable and required feasibility 
                studies, environmental reviews, and cost-benefit 
                analyses have been completed and include favorable 
                recommendations for further project development, 
                including an analysis of--
                          ``(i) the impacts of the agreements and 
                        activities conducted pursuant to subsection 
                        (a)(2)(A)(ii) on adjacent communities, 
                        including potential fire hazards, water access 
                        for fire districts, community and homeowner 
                        wells, future water levels based on projected 
                        usage, recreational values, and property 
                        values; and
                          ``(ii) specific options and measures for 
                        mitigating the impacts, as appropriate;
                  ``(B) the Secretary has made the agreements and any 
                applicable project designs, operations plans, and other 
                documents available for public review and comment in 
                the Federal Register for a period of not less than 60 
                days; and
                  ``(C) the Secretary has made a determination, 
                consistent with applicable law, that the agreements and 
                activities to which the agreements relate--
                          ``(i) are in the public interest; and
                          ``(ii) could be implemented without 
                        significant adverse impacts to the environment.
          ``(4) Electrical power associated with kachess drought relief 
        pumping plant.--
                  ``(A) In general.--The Administrator of the 
                Bonneville Power Administration, pursuant to the 
                Pacific Northwest Electric Power Planning and 
                Conservation Act (16 U.S.C. 839 et seq.), shall provide 
                to the Secretary project power to operate the Kachess 
                Pumping Plant constructed under this title if inactive 
                storage in Kachess Reservoir is needed to provide 
                drought relief for irrigation, subject to the 
                requirements of subparagraphs (B) and (C).
                  ``(B) Determination.--Power may be provided under 
                subparagraph (A) only if--
                          ``(i) there is in effect a drought 
                        declaration issued by the State of Washington;
                          ``(ii) there are conditions that have led to 
                        70 percent or less water delivery to proratable 
                        irrigation districts, as determined by the 
                        Secretary; and
                          ``(iii) the Secretary determines that it is 
                        appropriate to provide power under that 
                        subparagraph.
                  ``(C) Period of availability.--Power under 
                subparagraph (A) shall be provided until the date on 
                which the Secretary determines that power should no 
                longer be provided under that subparagraph, but for not 
                more than a 1-year period or the period during which 
                the Secretary determines that drought mitigation 
                measures are necessary in the Yakima River basin.
                  ``(D) Rate.--The Administrator of the Bonneville 
                Power Administration shall provide power under 
                subparagraph (A) at the then-applicable lowest 
                Bonneville Power Administration rate for public body, 
                cooperative, and Federal agency customers firm 
                obligations, which as of the date of enactment of this 
                section is the priority firm Tier 1 rate, and shall not 
                include any irrigation discount.
                  ``(E) Local provider.--During any period in which 
                power is not being provided under subparagraph (A), the 
                power needed to operate the Kachess Pumping Plant shall 
                be obtained by the Secretary from a local provider.
                  ``(F) Costs.--The cost of power for such pumping, 
                station service power, and all costs of transmitting 
                power from the Federal Columbia River Power System to 
                the Yakima Enhancement Project pumping facilities shall 
                be borne by irrigation districts receiving the benefits 
                of that water.
                  ``(G) Duties of commissioner.--The Commissioner of 
                Reclamation shall be responsible for arranging 
                transmission for deliveries of Federal power over the 
                Bonneville system through applicable tariff and 
                business practice processes of the Bonneville system 
                and for arranging transmission for deliveries of power 
                obtained from a local provider.
    ``(c) Design and Use of Groundwater Recharge Projects.--
          ``(1) In general.--Any water supply that results from an 
        aquifer storage and recovery project shall not be considered to 
        be a part of the total water supply available if--
                  ``(A) the water for the aquifer storage and recovery 
                project would not be available for use, but instead for 
                the development of the project;
                  ``(B) the aquifer storage and recovery project will 
                not otherwise impair any water supply available for any 
                individual or entity entitled to use the total water 
                supply available; and
                  ``(C) the development of the aquifer storage and 
                recovery project will not impair fish or other aquatic 
                life in any localized stream reach.
          ``(2) Project types.--The Secretary may provide technical 
        assistance for, and participate in, any of the following 3 
        types of groundwater recharge projects (including the 
        incorporation of groundwater recharge projects into Yakima 
        Project operations, as appropriate):
                  ``(A) Aquifer recharge projects designed to 
                redistribute Yakima Project water within a water year 
                for the purposes of supplementing stream flow during 
                the irrigation season, particularly during storage 
                control, subject to the condition that if such a 
                project is designed to supplement a mainstem reach, the 
                water supply that results from the project shall be 
                credited to instream flow targets, in lieu of using the 
                total water supply available to meet those targets.
                  ``(B) Aquifer storage and recovery projects that are 
                designed, within a given water year or over multiple 
                water years--
                          ``(i) to supplement or mitigate for municipal 
                        uses;
                          ``(ii) to supplement municipal supply in a 
                        subsurface aquifer; or
                          ``(iii) to mitigate the effect of groundwater 
                        use on instream flow or senior water rights.
                  ``(C) Aquifer storage and recovery projects designed 
                to supplement existing irrigation water supply, or to 
                store water in subsurface aquifers, for use by the 
                Kittitas Reclamation District, the Roza Irrigation 
                District, or any other proratable irrigation entity 
                participating in the repayment of the construction, 
                operation, and maintenance costs of the facilities 
                under this section during years in which the total 
                water supply available is insufficient to provide to 
                those proratable irrigation entities all water to which 
                the entities are entitled, subject to the conditions 
                that--
                          ``(i) the Bureau of Indian Affairs, the 
                        Wapato Irrigation Project, and the Yakama 
                        Nation, on an election to participate, may also 
                        obtain water from aquifer storage to enhance 
                        applicable existing irrigation water supply in 
                        accordance with such terms and conditions to 
                        which the Bureau of Indian Affairs and the 
                        Yakama Nation may agree; and
                          ``(ii) nothing in this subparagraph affects 
                        (as in existence on the date of enactment of 
                        this section) any contract, law (including 
                        regulations) relating to repayment costs, water 
                        right, or Yakama Nation treaty right.
    ``(d) Federal Cost-Share.--
          ``(1) In general.--The Federal cost-share of a project 
        carried out under this section shall be determined in 
        accordance with the applicable laws (including regulations) and 
        policies of the Bureau of Reclamation.
          ``(2) Initial phase.--The Federal cost-share for the initial 
        development phase of the Integrated Plan shall not exceed 50 
        percent of the total cost of the initial development phase.
          ``(3) State and other contributions.--The Secretary may 
        accept as part of the non-Federal costshare of a project 
        carried out under this section, and expend as if appropriated, 
        any contribution (including in-kind services) by the State of 
        Washington or any other individual or entity that the Secretary 
        determines will enhance the conduct and completion of the 
        project.
          ``(4) Limitation on use of other federal funds.--Except as 
        otherwise provided in this title, other Federal funds may not 
        be used to provide the non-Federal cost-share of a project 
        carried out under this section.
    ``(e) Savings and Contingencies.--Nothing in this section shall--
          ``(1) be a new or supplemental benefit for purposes of the 
        Reclamation Reform Act of 1982 (43 25 U.S.C. 390aa et seq.);
          ``(2) affect any contract in existence on the date of 
        enactment of the Yakima River Basin Water Enhancement Project 
        Phase III Act of 2015 that was executed pursuant to the 
        reclamation laws;
          ``(3) affect any contract or agreement between the Bureau of 
        Indian Affairs and the Bureau of Reclamation;
          ``(4) affect, waive, abrogate, diminish, define, or interpret 
        the treaty between the Yakama Nation and the United States; or
          ``(5) constrain the continued authority of the Secretary to 
        provide fish passage in the Yakima Basin in accordance with the 
        Hoover Power Plant Act of 1984 (43 U.S.C. 619 et seq.).

``SEC. 1214. OPERATIONAL CONTROL OF WATER SUPPLIES.

    ``The Secretary shall retain authority and discretion over the 
management of project supplies to optimize operational use and 
flexibility to ensure compliance with all applicable Federal and State 
laws, treaty rights of the Yakama Nation, and legal obligations, 
including those contained in this Act. That authority and discretion 
includes the ability of the United States to store, deliver, conserve, 
and reuse water supplies deriving from projects authorized under this 
title.''.

                                Purpose

    The purpose of S. 1694 is to amend Public Law 103-434 to 
authorize Phase III of the Yakima River Basin Water Enhancement 
Project in Washington State for the purposes of improving water 
management in the Yakima River basin.

                          Background and Need

    The legislation seeks to address long-term water supply 
challenges and environmental needs in the Yakima Basin by 
authorizing Phase III of the Yakima River Basin Water 
Enhancement Project (YRBWEP Phase III). Phase III is the first 
phase of the Yakima River Basin Integrated Water Resource Plan 
(Integrated Plan), an adaptive watershed management plan for 
the Yakima River Basin. The legislation seeks to improve the 
reliability and sustainability of water supplies to meet 
agricultural, municipal, and environmental needs, and to 
restore the ecosystems and habitat of the Basin for fish, 
wildlife, and recreation purposes.
    The Yakima Basin encompasses about 6,155 square miles in 
South-central Washington. The Yakima River originates in the 
Cascade Mountains and flows nearly 215 miles to its confluence 
with the Columbia River and is the longest river located 
entirely within the State. Upper elevations of the Basin 
primarily contain wilderness and public lands; middle 
elevations support dry and irrigated agriculture and cattle 
grazing; and lower elevations support irrigated agriculture. 
The Basin is one of the most productive agricultural regions in 
the state, producing nearly $3.2 billion in agricultural 
income--with apples, hops, grapes, and other fruits and 
vegetables as the primary cash crops. The Basin has experienced 
water supply challenges since irrigated agriculture began in 
the late 19th century and became the predominant economic 
engine of the region in the 20th and 21st centuries.
    The Basin is also home to the Confederated Tribes and Bands 
of the Yakama Nation. The Yakama Nation signed a treaty with 
the U.S. in 1855 and American settlers began to establish 
permanent settlements and irrigated agriculture in the region 
in the 1850s and 1860s. In 1905 the Bureau of Reclamation 
(Reclamation) was authorized to build the Yakima Project to 
support irrigated agriculture in the Basin. One of the oldest 
Reclamation projects in the U.S., the Yakima Project today 
includes six major storage dams and reservoirs, several 
hydropower facilities, and seven divisions that serve 464,000 
acres of irrigated land.
    Water shortages and litigation in the first half of the 
20th century led to a court decree in 1945, which established 
that irrigators throughout the Basin would share water 
shortages equally in times of drought. An adjudication of the 
Basin's water rights was filed in 1977 and the Yakama Nation 
filed suit to adjudicate the tribe's rights, which have the 
oldest priority date and thus seniority in the system. 
Subsequent growth further strained an already over-allocated 
water supply--contributing to ongoing water shortages, 
litigation, and conflict in the Basin.
    Drought in the 1970s led to the Congressional authorization 
of the Yakima River Basin Water Enhancement Project in 1979 to 
alleviate water shortages, promote water conservation, and 
improve fish passage (YRBWEP Phase I). YRBWEP Phase I was later 
amended in 1994 (title XII of Public Law 103-434) with a 
further focus on water conservation (YRBWEP Phase II).
    In 2009, Reclamation and the State of Washington formed a 
Work Group to develop a consensus-based solution for the Basin. 
The Work Group evaluated various water supply options and 
supported the completion of a Yakima River Basin Study 
conducted under the Department of the Interior's WaterSMART 
Program in 2010, which built on decades of other project 
studies in the Basin. The Study evaluated current and future 
water demand scenarios in the Basin in relation to potential 
water supplies and found that increasing temperatures, 
decreasing snowpack, and drought are likely to intensify in 
coming decades.
    To address these challenges, the Work Group engaged in a 
collaborative, locally-driven process to develop an integrated 
water resource management plan for addressing agricultural, 
municipal, tribal, and environmental water needs. A joint 
Programmatic Environmental Impact Statement for this integrated 
plan was completed by Reclamation and the State in 2012. The 
State of Washington subsequently appropriated $162 million to 
implement the plan, including $132 million in 2013 and an 
additional $30 million in 2015. This legislation authorizes 
Federal participation in a subset of activities associated with 
the plan, to be implemented over a decade building on the 
original YRBWEP legislation.

                          Legislative History

    S. 1694 was introduced by Senators Cantwell and Murray on 
June 25, 2015. The Senate Energy and Natural Resources 
Committee conducted a hearing on S. 1694 on July 7, 2015.
    At its business meeting on November 19, 2015, the Committee 
on Energy and Natural Resources, on a voice vote, ordered S. 
1694 favorably reported as amended.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on November 19, 2015, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
1694, if amended as described herein.

                          Committee Amendments

    The amendment in the nature of a substitute adds 
requirements that feasibility studies, environmental reviews, 
and cost-benefit analyses be completed and that such reviews 
include favorable recommendations and other requirements be met 
prior to project implementation; strikes references to a Work 
Group; defines the Integrated Plan as activities authorized in 
the legislation; includes a water conservation target for 
implementation of the initial development phase of the 
Integrated Plan; includes provisions to encourage water 
marketing, transfers, and other voluntary transactions; 
clarifies terms and agreements associated with drought relief 
projects; clarifies fish passage authorities; requires the 
Secretary to cooperate with FERC when adding fish passage 
facilities as called for in the Integrated Plan to a reservoir 
that contains a licensed hydropower project; sets conditions 
for the circumstances that trigger the mandatory use of BPA 
power for the new pumping facility during times of drought; 
strikes indexing language pertaining to authorizations for 
appropriations and adjusts authorization amounts to account for 
inflation; adds a requirement that federal funds cannot be used 
for the non-federal share for any authorized projects unless 
otherwise specified; includes a 50 percent non-federal cost 
share on the new grants program; and makes other technical 
changes. The amendment is further described in the section-by-
section analysis.

                      Section-by-Section Analysis

Section 1. Short title

    Section 1 provides a short title.

Section 2. Modification of terms, purposes, and definitions

    Section 2(a) amends Title XII of Public Law 103-434 (YRBWEP 
Phase II) to modify certain terms and headings.
    Section 2(b) amends section 1201 of Public Law 103-434 to 
modify the purposes of YRBWEP to include water management 
activities to achieve fish and wildlife benefits; to include 
improvements in the reliability of municipal, industrial and 
domestic water supplies and uses; to realize at least 85,000 
acre feet of water conservation savings from the initial 
development phase of the Integrated Plan; to encourage the use 
of water transfers, leasing, markets, and other voluntary 
transactions; to improve the resilience of the ecosystems, 
economies, and communities as they face drought and hydrologic 
changes; and to authorize and implement the Yakima River Basin 
Integrated Water Resource Plan as Phase III of YRBWEP.
    Section 2(c) amends section 1202 of Public Law 103-434 to 
include definitions for the following terms: ``Designated 
Federal Official,'' ``Integrated Plan; Yakima River Basin 
Integrated Water Resource Plan,'' ``Municipal, Industrial, and 
Domestic Water Supply and Use,'' ``Proratable Irrigation 
Entity,'' and ``Yakima Enhancement Project; Yakima River Basin 
Water Enhancement Project.''

Section 3. Yakima River Basin Water Conservation Program

    Section 3 amends section 1203 of Public Law 103-434 to make 
a number of technical changes. This section amends section 
1203(c)(3) of Public Law 103-434 by directing the Conservation 
Advisory Group to provide recommendations to advance the 
purposes and programs of the Yakima Enhancement Project, 
including the Integrated Plan and amends section 1203(c)(4) by 
tasking the Designated Federal Official to provide logistical 
support for Conservation Advisory Group meetings, including the 
use of a facilitator to serve as a moderator.
    Section 3 further adds a new provision to section 1203(d) 
of Public Law 103-434 by authorizing the State or the Federal 
government to fund up to the 17.5 percent local cost share of 
the Basin Conservation Program in exchange for the long-term 
use of the conserved water. Any such funding provided by the 
Federal government must provide a quantifiable public benefit 
in meeting federal responsibilities in the Basin. Water 
resulting from conservation measures is made available for 
water management uses pursuant to the title.
    Additionally, this section amends section 1203(i) of Public 
Law 103-434 to include management actions and to allow water 
acquisition efforts to continue as needed to provide water to 
be used by the Yakima Project Manager for instream flow 
purposes. This section also amends section 1203(j) to allow for 
voluntary water acquisitions to provide improved instream flows 
for anadromous and resident fish and other aquatic life.

Section 4. Yakima Basin water projects, operations, and authorizations

    Section 4(a) amends section 1204 of Public Law 103-434 to 
increase the existing authorization amount from $23 million to 
$100 million and to redesignate the Yakima Indian Nation as the 
Yakama Nation.
    Section 4(b) amends section 1205 of Public Law 103-434 to 
make a number of technical changes and to designate additional 
purposes for the Yakima Project, including to recover and 
maintain self-sustaining harvestable populations of native 
fish, both anadromous and resident species; to protect, 
mitigate, and enhance aquatic life and wildlife; recreation; 
and municipal, industrial, and domestic use.
    Section 4(c) amends section 1206(a)(1) of Public Law 103-
434 to increase the existing authorization amount from $2 
million to $12 million for the development of additional 
storage capacity at Lake Cle Elum.
    Section 4(d) amends section 1207 of Public Law 103-434 to 
make a number of technical changes. This section authorizes the 
Secretary, in consultation with the State and the Yakama 
Nation, and on agreement of appropriate water entities, to 
conduct studies to evaluate measures for water enhancements in 
the Yakima Basin tributaries. The Secretary is further 
authorized to implement measures to promote tributary flow 
enhancements subject to the condition that such activities may 
not commence until the applicable and required feasibility 
studies, environmental reviews, and cost-benefit analyses are 
completed and include favorable recommendations for further 
project development. Additionally, the Secretary is authorized 
to implement nonstorage, as well as nonsurface storage 
measures, upon the agreement of willing water rights owners, 
the State and the Yakama Nation.
    Section 4(e) amends section 1208(d) of Public Law 103-434 
to make a technical change.
    Section 4(f) amends section 1210(c) of Public Law 103-434 
to increase the existing authorization amount for updates to 
the Interim Comprehensive Basin Operating Plan from $100,000 to 
$200,000.
    Section 4(g) amends section 1211 of Public Law 103-434 to 
increase the existing authorization amount from $2 million to 
$5 million for environmental compliance activities in the 
Yakima River Basin.

Section 5. Authorization of Phase III of Yakima River Basin Water 
        Enhancement Project

    Section 5 amends Title XII of Public Law 103-434 by adding 
a new section 1213 to authorize YRBWEP Phase III. The new 
section 1213(a) directs the Secretary, in coordination with the 
State and the Yakama Nation, to implement the Integrated Plan 
as YRBWEP Phase III, subject to feasibility studies, 
environmental reviews, cost-benefit analyses and available 
appropriations. The new section 1213(a)(2) specifies a number 
of authorized activities, including: completing upstream and 
downstream fish passage at Cle Elum Reservoir and another 
Yakima Project Reservoir; negotiating long-term agreements 
regarding a pumping plant and associated facilities to access 
and deliver inactive storage at Kachess Reservoir and a 
conveyance system to allow water transfers from Keechelus 
Reservoir to Kachess Reservoir (``K to K Pipeline''); 
participating in, providing funding for, and accepting non-
federal financing for water conservation projects intended to 
conserve 85,000 acre-feet of water and for aquifer storage and 
recovery projects; conducting studies, feasibility analyses and 
environmental reviews of fish passage, water supply, 
conservation, habitat restoration projects, and other 
alternatives; coordinating with and assisting the State in 
implementing a robust water market to enhance water management 
in the Yakima River Basin; and entering into cooperative 
agreements with, or making grants to, the Yakama Nation, the 
State, or other entities subject to a 50 percent non-federal 
cost-sharing requirement.
    The new section 1213(a)(3) directs the Secretary, in 
coordination with the State and in consultation with the Yakama 
Nation, to develop plans for the intermediate and final 
development phases of the Integrated Plan. The intermediate 
phase is to commence not later than 10 years after the date of 
enactment of this Act and the final phase is to commence not 
later than 20 years after the date of enactment of this Act, 
subject to authorization and appropriation.
    The new section 1213(a)(4) sets forth a number of 
contingencies to implementation, including the opportunity for 
public review, a Secretarial determination that the design, 
construction, and operation of a proposed project is in the 
public's best interest, and that the work be done in compliance 
with all applicable laws, including the National Environmental 
Policy Act and the Endangered Species Act.
    The new section 1215(a)(5) directs the Secretary, in 
conjunction with the State and in consultation with the Yakama 
Nation, to submit a progress report to Congress on the 
development and implementation of the Integrated Plan not later 
than five years after the date of enactment of this Act. The 
report must identify the amount of federal funding and non-
federal contributions received during that period and should 
identify any additional projects and activities proposed for 
inclusion in any future phase of the Integrated Plan.
    The new section 1213(b) stipulates that long-term 
agreements shall be negotiated between the Secretary and 
participating proratable irrigation entities in the Yakima 
Basin for the financing, construction, operation and 
maintenance of the Kachess Drought Relief Pumping Plant and the 
K to K Pipeline. This section provides that water made 
available from construction and operation of facilities at 
Kachess Reservoir must be used to enhance water supply when the 
total water supply available in the Yakima Project is not 
sufficient to provide 70 percent of proratable irrigation 
district entitlements. This section further provides that 
activities pursuant to these agreements shall not commence 
until stipulated criteria are met, including completion of 
environmental reviews and a finding that activities are in the 
public interest. Additionally, this section directs the 
Administrator of the Bonneville Power Administration to provide 
project power to operate the Kachess Pumping Plant during times 
of drought at no more than the applicable Tier 1 rate. The cost 
of power for the Kachess Reservoir drought relief project must 
be borne by irrigation districts receiving benefits from the 
project.
    The new section 1213(c) authorizes the Secretary to provide 
technical assistance for and participate in groundwater 
recharge projects, such as aquifer storage and recovery 
projects.
    The new section 1213(d) specifies that the federal cost 
share for projects authorized under this section will be 
determined in accordance with Reclamation law and policy. The 
Secretary is authorized to accept contributions by the State 
and other participating entities toward implementation of the 
Integrated Plan. This section further requires that the federal 
cost share for the initial development phase of the Integrated 
Plan shall not exceed 50 percent of the total cost of the 
initial development phase and that federal funds may not be 
used to provide the non-federal cost-share unless otherwise 
specified.
    The new section 1213(e) contains a number of savings 
clauses, including upholding existing contracts.
    Section 5 amends Title XII of Public Law 103-434 by adding 
a new section 1214 regarding the operational control of water 
supplies. This new section stipulates that the Secretary 
retains the authority and discretion over the management of 
project supplies to optimize operational use and flexibility to 
ensure compliance with all applicable Federal and State laws, 
treaty rights of the Yakama Nation, and legal obligations, 
including those contained in this Act.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      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. 1694. 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. 1694, as ordered reported.

                   Congressionally Directed Spending

    S. 1694, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the July 7, 2015 hearing on S. 1694 follows:

   Statement of Tom Iseman, Deputy Assistant Secretary for Water and 
                  Science, Department of the Interior

    Chairman Murkowski, Ranking Member Cantwell and members of 
the Committee, thank you for the opportunity to provide the 
initial views of the Department of the Interior (Department) on 
S. 1694, legislation to implement Phase III of the Yakima River 
Basin Water Enhancement Project (YRBWEP). I am Tom Iseman, 
Deputy Assistant Secretary for Water and Science at the 
Department of the Interior. The Department continues to review 
the recently-introduced version of S. 1694 and as such would 
like to work with the sponsor and this Committee to offer 
additional input on the bill and to address some initial 
concerns with the bill as discussed later in this testimony. 
The Department is an ongoing federal participant in Phase III, 
also known as the Integrated Plan, and this testimony will 
address areas where S. 1694 is consistent with that role. The 
Department supports the goals of S. 1694, which are consistent 
with the Department's ongoing coordination with our State 
partners and all Basin interests to find solutions to the long-
term imbalance between water supply and demand in the Yakima 
Basin.
    The YRBWEP Workgroup, formed in 2009, developed the Yakima 
River Basin Integrated Water Resources Management Plan, which 
is a partnership between Bureau of Reclamation (Reclamation), 
Washington State Department of Ecology, the Yakama Nation, 
irrigation districts, local governments, non-governmental 
organizations, and several other Federal and state agencies. It 
is exactly the kind of broad-based, consensus-driven 
cooperation that is essential to successful modern water 
resources management. As a long-term, collaborative process, 
the YRBWEP helps Reclamation continue to implement the Yakama 
Nation Settlement Agreement, and has progressed through two 
prior phases to arrive at Phase III, the Yakima River Basin 
Integrated Water Resources Management Plan, or Integrated Plan.
    YRBWEP and the Integrated Plan have their roots in the 
original authorization of a joint Federal-state feasibility 
study in 1979 (PL 96-162). In this statute, Congress directed 
Reclamation to conduct a feasibility study of the Yakima River 
Basin Water Enhancement Project and develop a plan that would 
provide supplemental water for currently irrigated lands, water 
for new lands within the Yakama Indian Reservation, increased 
instream flows for aquatic life, and a comprehensive plan for 
efficient management of existing basin water supplies.
    Early in the YRBWEP study process, fish passage problems 
were identified as needing immediate attention and in 1984, 
Congress authorized YRBWEP Phase I (Section 109 of PL 98-381), 
which primarily involved rebuilding fish ladders and 
constructing fish screens on river diversions. The YRBWEP study 
proceeded through the 1980s, but was not fully completed 
primarily due to uncertainties associated with the adjudication 
of basin surface water rights that began in 1977. Consequently, 
Congress passed additional legislation in 1994 (PL 103-434), 
for what is generally referred to as YRBWEP Phase II. This 
legislation provided for significant water conservation and 
acquisition activities, studies to define the long-term water 
needs of fish and current irrigators, improvements to the 
Wapato Irrigation Project, and development of a plan for 
management of basin water supplies.
    The broad-based, consensus-driven nature of YRBWEP Phases I 
and II has been established through the development of many 
relationships, building diverse support for continued 
implementation of a broad range of projects as part of Phase 
III. The elements of this plan, and associated activities, were 
never envisioned to be stand-alone, individual efforts, but 
rather broad-based collaborative efforts that strive to 
integrate elements of interests held by each stakeholder. 
Still, while prioritizing Federal support, both financially and 
administratively, we have a responsibility to ensure that 
available resources are put to their highest and best use, 
utilized for the most cost-effective elements that have a 
strong Federal interest. This has been the approach used in the 
Administration's recent Budgets, as discussed below. As a 
corollary to this Federal support, in June 2013, the Washington 
State Legislature affirmed their support for the Integrated 
Plan in statute (SSSB 5367) and provided $132 million to begin 
implementation of the plan.
    The current lack of facilities in which to store the full 
water supply of the basin, operational constraints, and legal 
framework affecting water resources in the Yakima River Basin 
illustrate the challenges for residents, businesses, tribal 
communities, and ecosystem resources. The Integrated Plan is 
aimed at addressing these challenges, which include:
     Water reliability for the Yakama Nation: the 
Integrated Plan approach will help assure the ability to meet 
Tribal water supply needs, and offers an alternative to 
expensive and time-consuming litigation to resolve treaty 
issues.
     Proratable water users receive sharply diminished 
supplies from the Yakima Project during severe drought years, 
in one year as little as 38% of their full allotment. Junior 
users can be cut off completely. This reduces agricultural 
production and associated jobs in the basin. For those who grow 
tree fruit, this could cause early loss of trees, which could 
have remained economically productive, sometimes for many 
additional years.
     Most municipal and domestic water users in the 
basin rely on junior water rights for their drinking water 
supplies. The Yakama Nation and irrigation users, including 
proratable irrigation users, hold water rights and entitlements 
that are senior to most municipal and domestic uses. Municipal 
and domestic users live with a very real risk that their 
supplies could be cut off as a result of litigation brought by 
senior water users under drought conditions. This affects 
current residents and also limits the ability of local 
communities to grow and develop. The State of Washington and 
local governments have identified averting such litigation as a 
key objective.
     Scientists studying the effects of global climate 
change on the Columbia River Basin project that less water will 
be stored in the Cascade Range snowpack in future decades 
compared with current conditions. Snowpack currently provides a 
substantial portion of runoff to the Yakima River basin, and 
reduced snowpack in the future would compromise water supply, 
streamflow, and aquatic habitat conditions. There is no single 
type of action that can address the multiple effects of climate 
change on snowpack, runoff conditions, water temperature, 
aquatic life, and forest health. Reclamation and Ecology 
believe that an integrated approach that includes consideration 
of water storage, water conservation, streamflow management, 
fish passage, and habitat improvements offers the best 
opportunity to mitigate climate change impacts on the Yakima 
basin's aquatic habitat and economy.
     Forest resources, land and terrestrial habitat of 
the Yakima basin also face risks from climate change, large 
wildfires, fragmented ownership, and land-use practices. These 
risks exacerbate the other risks to water resources and aquatic 
habitats. The Integrated Plan includes approaches to coordinate 
land management and water management to help manage these 
risks.
    The Integrated Plan encompasses seven elements: habitat and 
watershed protection and enhancement; reservoir fish passage; 
surface storage; enhanced water conservation; structural and 
operational changes; groundwater storage; and the use of 
market-based forces to reallocate water and habitat among 
willing buyers and sellers. The goals of the Integrated Plan 
are to protect, mitigate, and enhance fish and wildlife 
habitat; provide increased operational flexibility to manage 
instream flows to meet ecological objectives; and improve the 
reliability of the water supply for irrigation, municipal 
supply and domestic uses.
    Because of this history, a strong foundation of planning, 
study and diverse support underlies the YRBWEP and the 
Integrated Plan. Reclamation and Ecology completed a final 
Programmatic Environmental Impact Statement (PEIS) for the 
Integrated Plan in March 2012, and a Record of Decision (ROD) 
was signed in 2013. Under Phase II, Reclamation completed eight 
basin conservation plans and five feasibility-level 
conservation plans with two more feasibility plans to be 
completed this year.
    The President's FY 2016 request is $12.8 million for 
currently authorized YRBWEP activities consistent with Phase II 
and the Integrated Plan that are cost-effective and have a 
strong Federal interest. The YRBWEP has been part of the 
President's request consistently each year because of its nexus 
with several mission areas for the Department, and because of 
the multiple benefits that the current process makes possible, 
such as avoiding water resources conflicts that might otherwise 
occur and achieving both ecological and economic benefits in 
the basin. By linking several elements together for shared 
progress, YRBWEP is meaningfully increasing the reliability of 
the irrigation water supply and benefitting anadromous fish in 
the Yakima River basin. Dozens of activities are underway and 
in various stages of implementation. For example, the river 
levee set-back project in Yakima, Washington, is now complete 
and was jointly funded by Reclamation, the U.S. Army Corps of 
Engineers (Corps) and the City of Yakima, and provides multiple 
local benefits including fish and wildlife benefits, increased 
flood protection and improved water quality. Reclamation is 
currently in the design phase of a similar project near 
Ellensburg, Washington.
    Additionally, Reclamation, along with several Federal, 
state, local and private partners, completed the Manastash 
Creek Conservation and Tributary Enhancement Project, which was 
the first construction project included in the Integrated Plan, 
and was completed in 2014. This project is considered a major 
success because portions of the stream that have been 
seasonally dewatered for over 100 years are now flowing year-
round, and steelhead can be found in the stream. Other projects 
include providing permanent fish passage at Cle Elum Dam; 
construction is scheduled to begin this year and is being co-
funded by Reclamation and the State of Washington, which will 
help meet Reclamation's obligation for fish passage under the 
Yakama Nation Settlement Agreement, in addition to continuing 
acquisitions of land and water on the Yakima River and its 
tributaries where there exists a high potential for improved 
fisheries and watershed conditions. As of 2015, approximately 
40,000 acre-feet (af) of water has been acquired for instream 
flows by Phase II projects and over 13,000 af has been 
conserved to improve irrigation supplies in drought years. 
These diverse projects combine planning, grant-making and 
direct construction through many partnerships.
    This legislation specifically directs the completion of 
construction of fish passage at Cle Elum dam and at least one 
other Yakima Basin reservoir within the next ten years. This is 
extremely important to the Yakama Nation and various federal 
and state fishery agencies. Restoration of fish passage in the 
Yakima Basin is culturally significant and fish passage at the 
dams will open up tens of miles of pristine fish habitat 
currently inaccessible above the dams.
    The Department would like to work with the sponsor's office 
and this committee to clarify the authorities that are utilized 
in the Yakima River Basin and altered by this bill, 
particularly those in Section 4(c) and Section 5. As currently 
drafted, we do not interpret the authorization provided in this 
bill to extend to the construction or raise of any large dams 
in the Basin, with the exception of Cle Elum Dam, despite their 
inclusion in the overall Integrated plan, the provision in 
Section 2(b)(8), and the provisions added by Section 5. In 
general, we interpret authorities added by this bill to be 
limited to carrying out those elements currently identified as 
the `Initial Development Phase' of the Integrated Plan. We 
would also like to work with the committee regarding the fish 
recovery language at sections 2(b)(1) and 4(b)(3) [bill pages 2 
and 15], the treaty language at 4(b) [bill page 12], and the 
instream flow language at section 4(b)(2) [bill page 14].
    This legislation also allows for the irrigation districts 
to construct a facility to access a significant amount of water 
stored in the inactive pool of Kachess Reservoir. This will 
provide proratable irrigation districts with the additional 
water needed to increase their supply in drought years from a 
climate-model estimated low of 20-30% up to 70%. This 
legislation will also allow additional funds for water 
conservation on the Yakama Reservation, which is the largest 
irrigator in the basin and has a significant conservation need, 
to be able to help the entire basin with more efficient use of 
limited water supplies. Additional funds for the Cle Elum pool 
raise project are authorized which will allow control of 
another 14,600 af of water that can be used in ways beneficial 
to fish. There are many other benefits to this legislation, but 
the last I will mention here is that it allows the Secretary to 
accept cost share for many of these projects which allows 
Federal dollars to be leveraged to achieve more conservation.
    The Integrated Plan has also provided for unprecedented 
collaboration between irrigation districts, the Yakama Nation 
and fish agencies, which can best be described by the recent 
example of Kittitas Reclamation District's (KRD) efforts to 
relieve hardships to local streams from drought. KRD has turned 
on siphons and water gates in its canals that provide flows to 
Manastash Creek and five other upstream Yakima River 
tributaries. Under an agreement with Reclamation, Ecology, the 
Yakama Nation and in consultation with the state Department of 
Fish & Wildlife, Yakima Project water is being routed through 
KRD canals on its way to downstream diverters and passed 
through these small creeks. It then flows back to the same 
river it came from and it is available for diversions further 
down the Yakima River. This is being done in a manner that has 
no impact on the total water supply and still improves flow, 
fish habitat and vegetation lining creek banks.
    Implementation of the YRBWEP is based on a funding strategy 
that includes the premise that projects with Federal 
participation will be cost-shared by Federal and non-Federal 
entities. For example, the State of Washington and Reclamation 
have signed a Memorandum of Agreement to provide 50-50 cost-
share for the Cle Elum Dam Fish Passage Project, and the 
beneficiaries of the Kachess Drought Relief Pumping Plant have 
suggested that they will fund both capital and operations and 
maintenance (O&M) costs of that project. Additionally, several 
habitat enhancement and agricultural conservation projects are 
being funded by Federal, state, and local governments.
    S. 1694 is being introduced at an opportune time when 
stakeholders understand the urgency in implementing many 
elements of the Integrated Plan and are willing funding 
partners, able to take on the operations and maintenance (O&M) 
of various elements of YRBWEP projects, thus taking the full 
funding and O&M burden off the federal budget. This unique 
opportunity is a result of many years of collaboration with a 
diverse group of stakeholders who have traditionally held 
opposing views but are now cooperatively working together to 
achieve real, tangible results. This legislation is essential 
in maintaining the momentum that has been built.
    As stated above, while the Administration supports YRBWEP 
activities that are cost-effective and have a strong Federal 
interest through its budget request and through ongoing 
activities at other agencies, the Department is still 
completing its review of the introduced version of S. 1694. We 
understand it has undergone several recent revisions up through 
the preceding days, and we appreciate having been part of some 
of those revisions. The Department still needs to closely 
complete review of the introduced bill to determine its 
consistency--both from a budgetary perspective as well as a 
programmatic view--with the agreed-to elements in YRBWEP and 
the Integrated Plan. While the Department supports the 
sponsor's intention to authorize continued federal 
participation in the implementation of the Integrated Plan 
(a.k.a. YRBWEP Phase III), we look forward to working with the 
bill's sponsor and the Committee to address specific elements 
of the bill once we have had the opportunity to conduct further 
analysis. The Department supports the goals of S. 1694; 
however, we reserve the right to submit additional comments on 
the bill in the future.
    This concludes my written statement. I would be 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 original bill, as 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):

PUBLIC LAW 103-434, AS AMENDED

           *       *       *       *       *       *       *

        TITLE XII--YAKIMA RIVER BASIN WATER ENHANCEMENT PROJECT

SEC. 1201. PURPOSES.

    The purposes of this title are--
          [(1) to protect, mitigate, and enhance fish and 
        wildlife through improved water management; improved 
        instream flows; improved water quality; protection, 
        creation and enhancement of wetlands; and by other 
        appropriate means of habitat improvement;]
          (1) to protect, mitigate, and enhance fish and 
        wildlife and the recovery and maintenance of self-
        sustaining harvestable populations of fish and other 
        aquatic life, both anadromous and resident species, 
        throughout their historic distribution range in the 
        Yakima Basin through--
                  (A) improved water management and the 
                constructions of fish passage at storage and 
                diversion dams, as authorized under the Hoover 
                Power Plant Act of 1984 (43 U.S.C. 619 et 
                seq.);
                  (B) improved instream flows and water 
                supplies;
                  (C) improved water quality, watershed, and 
                ecosystem function;
                  (D) protection, creation, and enhancement of 
                wetlands; and
                  (E) other appropriate means of habitat 
                improvement;
          (2) to improve the reliability of water supply for 
        irrigation, municipal, industrial, and domestic water 
        supply and use purposes, especially during drought 
        years, including reducing the frequency and severity of 
        water supply shortages for pro-ratable irrigation 
        entities;
          (3) to authorize the Secretary to make water 
        available for purchase or lease for meeting municipal, 
        industrial, and domestic water supply purposes;
          [(3)] (4) to authorize a Yakima River basin water 
        conservation program that will improve the efficiency 
        of water delivery and use; enhance basin water 
        supplies; improve water quality; protect, create and 
        enhance wetlands; and determine the amount of basin 
        water needs that can be met by water conservation 
        measures;
          [(4) to realize sufficient water savings from the 
        Yakima River Basin Water Conservation Program so that 
        not less than 40,000 acre-feet of water savings per 
        year are achieved by the end of the fourth year of the 
        Basin Conservation Program, and not less than 110,000 
        acre-feet of water savings per year are achieved by the 
        end of the eighth year of the program, to protect and 
        enhance fish and wildlife resources; and not less than 
        55,000 acre feet of water savings per year are achieved 
        by the end of the eighth year of the program for 
        availability for irrigation;]
          (5) to realize sufficient water savings from 
        implementing the Yakima River Basin Integrated Water 
        Resource Management Plan, so that not less than 85,000 
        acre feet of water savings are achieved by implementing 
        the first phase of the Integrated Plan pursuant to 
        section 1213(a);
          [(5)] (6) to encourage an increase in voluntary 
        transactions among public and private entities which 
        result in the implementation of water conservation 
        measures, practices, and facilities; [and]
          (7) to encourage an increase in the use of, and 
        reduce the barriers to, water transfers, leasing, 
        markets, and other voluntary transactions among public 
        and private entities to enhance water management in the 
        Yakima River basin;
          [(6)] (8) to provide for the implementation by the 
        [Yakama Indian] Yakama Nation at its sole discretion of 
        (A) an irrigation demonstration project on the [Yakama 
        Indian] Yakama Reservation using water savings from 
        system improvements to the Wapato Irrigation Project, 
        and (B) a Toppenish Creek corridor enhancement project 
        integrating agricultural, fish, wildlife, and cultural 
        resources[.];
          (9) to improve the resilience of the ecosystems, 
        economies, and communities in the Basin as they face 
        drought, hydrologic changes, and other related changes 
        and variability in natural and human systems, for the 
        benefit of both the people and the fish and wildlife of 
        the region; and
          (10) to authorize and implement the Yakima River 
        Basin Integrated Water Resource Management Plan as 
        Phase III of the Yakima River Basin Water Enhancement 
        Project, as a balanced and cost-effective approach to 
        maximize benefits to the communities and environment in 
        the Basin.

SEC. 1202. DEFINITIONS.

    As used in this title:
          (1) The term ``Basin Conservation Plan'' means a plan 
        for implementing water conservation measures found in 
        the various water conservation plans developed under 
        the Basin Conservation Program.
          (2) The term ``Basin Conservation Program'' means the 
        Yakima River Basin Water Conservation Program 
        established under section 1203(a).
          (3) The term ``comprehensive basin operating plan'' 
        means a plan that will provide guidance to the Yakima 
        Project [Superintendent] Manager for operation of the 
        existing Yakima Project as modified by actions taken 
        pursuant to this title.
          (4) The term ``Conservation Advisory Group'' means 
        the Yakima River Basin Conservation Advisory Group 
        established under section 1203(c).
          (5) The term ``conserved water'' means water saved 
        and attributable to the program established under the 
        Basin Conservation Program.
          (6) Designated federal official._The term 
        ``designated Federal official'' means the Commissioner 
        of Reclamation (or a designee), acting pursuant to the 
        charter of the Conservation Advisory Group.
          (7) Integrated plan._The terms ``Integrated Plan'' 
        and ``Yakima River Basin Integrated Water Resource 
        Plan'' mean the plan and activities authorized by the 
        Yakima River Basin Enhancement Project Phase III Act of 
        2015 and the amendments made by that Act, to be carried 
        out in cooperation with and in addition to activities 
        of the State of Washington and Yakama Nation.
          [(6)] (8) The term ``Irrigation Demonstration 
        Project'' means the [Yakama Indian] Yakama Reservation 
        Irrigation Demonstration Project authorized in section 
        1204(b).
          (9) Municipal, industrial, and domestic water supply 
        and use.--The term ``municipal, industrial, and 
        domestic water supply and use'' means the supply and 
        use of water for--
                  (A) domestic consumption (whether urban or 
                rural);
                  (B) maintenance and protection of public 
                health and safety;
                  (C) manufacture, fabrication, processing, 
                assembly, or other production of a good or 
                commodity;
                  (D) production of energy;
                  (E) fish hatcheries; or
                  (F) water conservation activities relating to 
                a use described in subparagraphs (A) through 
                (E).
          [(7)] (10) The term ``nonproratable water'' means 
        that portion of the total water supply available under 
        provisions of sections 18 and 19 of Civil Action No. 21 
        (Federal District Court Judgment of January 31, 1945) 
        that is not subject to proration in times of water 
        shortage.
          [(8)] (11) The term ``on-district storage'' means 
        small water storage facilities located within the 
        boundaries of an irrigation entity, including 
        reregulating reservoirs, holding ponds, or other new 
        storage methods which allow for efficient water use.
          (12) Proratable irrigation entity._The term 
        ``proratable irrigation entity'' means a district, 
        project, or State-recognized authority, board of 
        control, agency, or entity located in the Yakima River 
        basin that--
                  (A) manages and delivers irrigation water to 
                farms in the basin; and
                  (B) possesses, or the members of which 
                possess, water rights that are proratable 
                during periods of water shortage.
          [(9)] (13) The term ``proratable water'' means that 
        portion of the total water supply available under 
        provisions of sections 18 and 19 of Civil Action No. 21 
        (Federal District Court Judgment of January 31, 1945) 
        that is subject to proration in times of water 
        shortage.
          [(10)] (14) The term ``Secretary'' means the 
        Secretary of the Interior.
          [(11)] (15) The term ``System Operations Advisory 
        Committee'' means a group of fishery biologists--
                  (A) created by the Yakima Project 
                [Superintendent] Manager in response to the 
                supplemental instructions entitled 
                ``Supplementary Instructions to the Water 
                Master'', and dated November 28, 1980, in the 
                case of Kittitass Reclamation District, et al. 
                vs. the Sunnyside Valley Irrigation District, 
                et al. (E.D. Wash., Civil No. 21.);
                  (B) who advise the Yakima Project 
                [Superintendent] Manager on operations of the 
                Yakima Project for fish and wildlife purposes; 
                and
                  (C) who, together with others, were 
                identified for consultation on November 29, 
                1990, in the amended partial summary judgment 
                entered in the basin adjudication (Yakima 
                County Superior Court No. 77-2-01484-5).
          [(12)] (16) The term ``Toppenish Enhancement 
        Project'' means the Toppenish Creek corridor 
        enhancement project authorized by section 1204(c).
          (17) Yakima enhancement project; yakima river basin 
        water enhancement project.--The terms ``Yakima 
        Enhancement Project'' and ``Yakima River Basin Water 
        Enhancement Project'' mean the Yakima River basin water 
        enhancement project authorized by Congress pursuant to 
        this Act and other Acts (including Public Law 96-162 
        (93 Stat. 1241), section 109 of Public Law 98-381 (16 
        U.S.C. 839b note; 98 Stat. 1340), Public Law 105-62 
        (111 Stat. 1320), and Public Law 106-372 (114 Stat. 
        1425)) to promote water conservation, water supply, 
        habitat, and stream enhancement improvements in the 
        Yakima River basin.
          [(13)] (18) The term ``[Yakama Indian] Yakama 
        Nation'' means the Confederated Tribes and Bands of the 
        [Yakama Indian] Yakama Nation as redesignated under 
        section 1204(g).
          [(14)] (19) The term ``Yakima Project 
        [Superintendent] Manager'' means the individual 
        designated by the Regional Director, Pacific Northwest 
        Region, Bureau of Reclamation, to be responsible for 
        the operation and management of the Yakima Federal 
        Reclamation Project, Washington.

SEC. 1203. YAKIMA RIVER BASIN WATER CONSERVATION PROGRAM.

    (a) Establishment.--(1) The Secretary, in consultation with 
the State of Washington, the [Yakama Indian] Yakama Nation, 
Yakima River basin irrigators, and other interested parties, 
shall establish and administer a Yakima River Basin Water 
Conservation Program for the purpose of evaluating and 
implementing measures to improve the availability of water 
supplies for irrigation and the protection and enhancement of 
fish and wildlife resources, including wetlands, while 
improving the quality of water in the Yakima Basin. The 
Secretary may make grants to eligible entities for the purposes 
of carrying out this [title] section under such terms and 
conditions as the Secretary may require. Such terms and 
conditions shall include a requirement that all water 
districts, irrigation districts, individuals, or other entities 
eligible to participate in the Basin Conservation Program must 
equip all surface water delivery systems within their 
boundaries with volumetric water meters or equally effective 
water measuring methods[ within 5 years of the date of 
enactment of this Act].
    (2) Conserved water resulting in whole or in part from the 
expenditure of Federal funds shall not be used to expand 
[irrigation] the number of irrigated acres in the Yakima Basin, 
except as specifically provided in section 1204(a)(3) on the 
[Yakama Indian] Yakama Reservation.
    (3) The provisions of this section shall not apply to the 
[Yakama Indian] Yakama Nation except as to any funds 
specifically applied for from the Basin Conservation Program.
    (b) Four Phases of Program.--The Basin Conservation Program 
shall encourage and provide funding assistance for four phases 
of water conservation, which shall consist of the following:
          (1) The development of water conservation plans, 
        consistent with applicable water conservation 
        guidelines of the Secretary, by irrigation districts, 
        conservation districts, water purveyors, other areawide 
        entities, and individuals not included within an 
        areawide entity.
          (2) The investigation of the feasibility of specific 
        potential water conservation measures identified in 
        conservation plans.
          (3) The implementation of measures that have been 
        identified in conservation plans and have been 
        determined to be feasible.
          (4) Post implementation monitoring and evaluation of 
        implemented measures.
    (c) Conservation Advisory Group.--(1) Not later than 12 
months after the date of enactment of this Act, the Secretary, 
in consultation with the State of Washington, the [Yakama 
Indian] Yakama Nation, Yakima River basin irrigators, and other 
interested and related parties, shall establish the Yakima 
River Basin Conservation Advisory Group.
    (2) Members of the Conservation Advisory Group shall be 
appointed by the Secretary and shall be comprised of--
          (A) one representative of the Yakima River basin 
        nonproratable irrigators[,];
          (B) one representative of the Yakima River basin 
        proratable irrigators[,];
          (C) one representative of the [Yakama Indian] Yakama 
        Nation[,];
          (D) one representative of environmental interests[,];
          (E) one representative of the Washington State 
        University Agricultural Extension Service[,]; and
          (F) one representative of the [Department of Wildlife 
        of the State of Washington, and] Department of Fish and 
        Wildlife of the State of Washington.
          [(G) one individual who shall serve as the 
        facilitator.]
    (3) The Conservation Advisory Group shall--
          (A) provide recommendations to the Secretary and to 
        the State of Washington regarding the structure and 
        implementation of the Basin Conservation Program[,];
          (B) provide recommendations to the Secretary and to 
        the State of Washington regarding the establishment of 
        a permanent program for the measurement and reporting 
        of all natural flow and contract diversions within the 
        basin[,];
          (C) structure a process to prepare a basin 
        conservation plan as specified in subsection (f)[,];
          (D) provide annual review of the implementation of 
        the applicable water conservation guidelines of the 
        Secretary[, and];
          (E) provide recommendations consistent with statutes 
        of the State of Washington on rules, regulations, and 
        administration of a process to facilitate the voluntary 
        sale or lease of water[.]; and
          (F) provide recommendations to advance the purposes 
        and programs of the Yakima Enhancement Project, 
        including the Integrated Plan.
    [(4) The facilitator shall arrange for meetings of the 
Conservation Advisory Group, provide logistical support, and 
serve as moderator for the meetings.]
    (4) Authority of designated federal official.--The 
designated Federal official may----
          (A) arrange and provide logistical support for 
        meetings of the Conservation Advisory Group;
          (B) use a facilitator to serve as a moderator for 
        meetings of the Conservation Advisory Group or provide 
        additional logistical support; and
          (C) grant any request for a facilitator by any member 
        of the Conservation Advisory Group.
    (5) The Conservation Advisory Group shall consult an 
irrigation district when considering actions specifically 
affecting that district. For the purposes of this paragraph, an 
irrigation district includes the Yakima Reservation Irrigation 
District.
    (6) The Conservation Advisory Group shall be nonvoting, 
seeking consensus whenever possible. If disagreement occurs, 
any member may submit independent comments to the Secretary. 
The Conservation Advisory Group shall terminate 5 years after 
the date of its establishment unless extended by the Secretary.
    (d) Cost Sharing.--(1) Except as otherwise provided by this 
title, costs incurred in the four phases of the Basin 
Conservation Program shall be shared as follows:
    (2) The Yakima River Basin Water Enhancement Project is a 
Federal action to improve streamflow and fish passage 
conditions and shall be considered part of a comprehensive 
program to restore the Yakima River basin anadromous fishery 
resource. Related fishery resource improvement facilities which 
utilize funding sources under the Pacific Northwest Electric 
Power Planning and Conservation Act of 1989 (94 Stat. 2697) and 
independent water-related improvements of the State of 
Washington and other public and private entities to improve 
irrigation water use, water supply, and water quality, shall be 
treated as non-Federal cost share expenditures and shall be 
consolidated in any final calculation of required cost sharing. 
Within one year of the date of enactment of this Act, the 
Secretary shall enter into a binding cost sharing agreement 
with the State of Washington. The agreement shall describe the 
terms and conditions of specific contributions and other 
activities that may, subject to approval by the Secretary, 
qualify as non-Federal cost share expenditures.
    (3) Costs of the Basin Conservation Program related to 
projects on the [Yakama Indian] Yakama Reservation are a 
Federal responsibility and shall be nonreimbursable and not 
subject to the cost-sharing provisions of this subsection.
    (4) Payment of local share by state or federal 
government.--
          (A) In general.--The State or the Federal Government 
        may fund not more than the 17.5 percent local share of 
        the costs of the Basin Conservation Program in exchange 
        for the long-term use of conserved water, subject to 
        the requirement that the funding by the Federal 
        Government of the local share of the costs shall 
        provide a quantifiable public benefit in meeting 
        Federal responsibilities in the Basin and the purposes 
        of this title.
          (B) Use of conserved water.--The Yakima Project 
        Manager may use water resulting from conservation 
        measures taken under this title, in addition to water 
        that the Bureau of Reclamation may acquire from any 
        willing seller through purchase, donation, or lease, 
        for water management uses pursuant to this title.
    (e) Entity Water Conservation Plans.--[To participate in 
the Conservation Basin Program an entity must submit a proposed 
water conservation plan to the Secretary. The Secretary shall 
approve a water conservation plan submitted under this 
subsection if the Secretary determines that the plan meets the 
applicable water conservation guidelines of the Secretary.]To 
participate in the Basin Conservation Program, as described in 
subsection (b), an entity shall submit to the Secretary a 
proposed water conservation plan.
    (f) Basin Conservation Plan.--The Conservation Advisory 
Group shall, within 2\1/2\ years after the date of enactment of 
this Act, submit a draft basin conservation plan to the 
Secretary.
    (g) Public Comment.--The Secretary shall distribute the 
draft basin conservation plan and the entity water conservation 
plans submitted under subsections (e) and (f), respectively, 
for public comment for a 60-day period.
    (h) Publication of Basin Conservation Plan.--Within 60 days 
after the close of the comment period under subsection (g), the 
Secretary shall publish the Basin Conservation Plan which plan 
will provide the basis--
          (1) for prioritizing and allocating funds to 
        implement conservation measures under this title; and
          (2) for preparing an interim comprehensive basin 
        operating plan under section 1210 of this title as 
        provided for in Public Law 96-162 (93 Stat. 1241).
    (i) Conservation Measures.--(1) Measures considered for 
implementation in the Basin Conservation Program may include, 
among others, conveyance and distribution system monitoring, 
automation of water conveyance systems, water measuring or 
metering devices and equipment, lining and piping of water 
conveyance and distribution systems, on-district storage, 
electrification of hydraulic turbines, tail-water recycling, 
consolidation of irrigation systems, irrigation scheduling, and 
improvement of on-farm water application systems. Basin 
Conservation Program funds may also be used throughout all four 
phases of the Basin Conservation Program to mitigate for 
adverse impacts of program measures.
    (2) In addition to implementing existing technologies, the 
Secretary shall encourage the testing of innovative water 
conservation measures. The Secretary shall, to the maximum 
extent possible under applicable Federal, State, and tribal 
law, cooperate with the State of Washington to facilitate water 
and water right transfers, water banking, dry year options, the 
sale and leasing of water, and other innovative allocation 
tools used to maximize the utility of existing Yakima River 
basin water supplies.
    (3) The Secretary may, consistent with applicable law, use 
funds appropriated to carry out this section for the [purchase 
or lease] purchase, lease, or management of land, water, or 
water rights from any entity or individual willing to limit or 
forego water use on a temporary or permanent basis. Funds used 
for [purchase or lease] purchase, lease, or management under 
this paragraph are not subject to the cost sharing provisions 
of subsection (d). Efforts to acquire water should be [made 
immediately upon availability of funds to meet the three-year 
goal specified in section 1205(a)(4) to provide water to be 
used by the Yakima Project [Superintendent] Manager under the 
advisement of the System Operations Advisory Committee] 
continued as needed to provide water to be used by the Yakima 
Project Manager as recommended by the System Operations 
Advisory Committee and the Conservation Advisory Group for 
instream flow purposes. The use of Basin Conservation Program 
funds under this paragraph are in addition to those 
specifically authorized to be appropriated by subsection 
(j)(4).
    (4) On-farm water management improvements shall be 
coordinated with programs administered by the Secretary of 
Agriculture and State conservation districts.
    (j) Authorization of Appropriations.--There is hereby 
authorized to be appropriated to the Secretary, at September 
1990 prices, plus or minus such amounts as may be justified by 
reason of ordinary fluctuations of applicable cost indexes, the 
following amounts for the Basin Conservation Program:
          (1) $1,000,000 for the development of water 
        conservation plans.
          (2) $4,000,000 for investigation of specific 
        potential water conservation measures identified in 
        conservation plans for consideration for implementing 
        through the Basin Conservation Program.
          (3) Up to $67,500,000 for design, implementation, 
        post-implementation monitoring and evaluation of 
        measures, and addressing environmental impacts.
          (4) Up to $10,000,000 for the [initial acquisition of 
        water from willing sellers or lessors specifically to 
        provide instream flows for interim periods to 
        facilitate the outward migration of anadromous fish 
        flushing flows] acquisition of water from willing 
        sellers or lessors specifically to provide improved 
        instream flows for anadromous and resident fish and 
        other aquatic life, including pulse flows to facilitate 
        outward migration of anadromous fish. Such funds shall 
        not be subject to the cost sharing provisions of 
        subsection (d).
          (5) $100,000 annually for the establishment and 
        support of the Conservation Advisory Group during its 
        duration. Such funds shall be available for travel and 
        per diem, rental of meeting rooms, typing, printing and 
        mailing, and associated administrative needs. The 
        Secretary and the State of Washington shall provide 
        appropriate staff support to the Conservation Advisory 
        Group.

SEC. 1204. [YAKAMA INDIAN] YAKAMA NATION.

    (a) Wapato Irrigation Project Improvements and 
Appropriations.--(1) The [Yakama Indian] Yakama Nation's 
proposed system improvements to the Wapato Irrigation Project, 
as well as the design, construction, operation, and maintenance 
of the Irrigation Demonstration Project and the Toppenish Creek 
corridor enhancement project, pursuant to this title shall be 
coordinated with the Bureau of Indian Affairs.
    (2) There is authorized to be appropriated to the Secretary 
[not more than $ 23,000,000] not more than $100,000,000 for the 
preparation of plans, investigation of measures, and following 
the Secretary's certification that such measures are consistent 
with the water conservation objectives of this title, the 
implementation of system improvements to the Wapato Irrigation 
Project. Funding for further improvements within the Wapato 
Irrigation Project may be acquired under the Basin Conservation 
Program or other sources identified by the [Yakama Indian] 
Yakama Nation.
    (3) Water savings resulting from irrigation system 
improvements shall be available for the use of the [Yakama 
Indian] Yakama Nation for irrigation and other purposes on the 
reservation and for protection and enhancement of fish and 
wildlife within the Yakima River basin. The conveyance of such 
water through irrigation facilities other than the Wapato 
Irrigation Project shall be on a voluntary basis and shall not 
further diminish the amount of water that otherwise would have 
been delivered by an entity to its water users in years of 
water proration.
    (b) Irrigation Demonstration Project Appropriations.--
(1)(A) There is hereby authorized to be appropriated to the 
Secretary--
          (i) at September 1990 prices, plus or minus such 
        amounts as may be justified by reason of ordinary 
        fluctuations of applicable cost indexes, $ 8,500,000 
        for the design and construction of the [Yakama Indian] 
        Yakama Reservation Irrigation Demonstration Project; 
        and
          (ii) such sums as may be necessary for the operation 
        and maintenance of the Irrigation Demonstration 
        Project, including funds for administration, training, 
        equipment, materials, and supplies for the period 
        specified by the Secretary, which sums are in addition 
        to operation and maintenance funds for wildlife and 
        cultural purposes appropriated to the Secretary under 
        other authorization.
    (B) Funds may not be made available under this subsection 
until the [Yakama Indian] Yakama Nation obtains the concurrence 
of the Secretary in the construction, management, and 
administrative aspects of the Irrigation Demonstration Project.
    (C) After the end of the period specified under 
subparagraph (A)(ii), costs for the operation and maintenance 
of the Irrigation Demonstration Project, including funds for 
administration, training, equipment, materials, and supplies 
referred to in that subparagraph, shall be borne exclusively by 
the lands directly benefitting from the Irrigation 
Demonstration Project.
    (2) The Irrigation Demonstration Project shall provide for 
the construction of distribution and on-farm irrigation 
facilities to use all or a portion of the water savings, as 
determined by the [Yakama Indian] Yakama Nation, resulting from 
the Wapato Irrigation Project system improvements for--
          (A) demonstrating cost-effective state of the art 
        irrigation water management and conservation,
          (B) the training of tribal members in irrigation 
        methods, operation, and management, and
          (C) upgrading existing hydroelectric facilities and 
        construction of additional hydroelectric facilities on 
        the reservation to meet irrigation pumping power needs.
    (c) Toppenish Creek Corridor Enhancement Project 
Appropriations.--There is hereby authorized to be appropriated 
to the Secretary $1,500,000 for the further investigation by 
the [Yakama Indian] Yakama Nation of measures to develop a 
Toppenish Creek corridor enhancement project to demonstrate 
integration of management of agricultural, fish, wildlife, and 
cultural resources to meet tribal objectives and such amount as 
the Secretary subsequently determines is necessary for 
implementation. There is also authorized to be appropriated to 
the Secretary such sums as may be necessary for the operation 
and maintenance of the Toppenish Enhancement Project.
    (d) Report.--Within 5 years of the implementation of the 
Irrigation Demonstration Project and the Toppenish Enhancement 
Project, the Secretary, in consultation with the [Yakama 
Indian] Yakama Nation, shall report to the Committee on Energy 
and Natural Resources of the Senate, the Committee on Natural 
Resources of the House of Representatives, and the Governor of 
the State of Washington on the effectiveness of the 
conservation, training, mitigation, and other measures 
implemented.
    (e) Status of Improvements and Facilities.--The Wapato 
Irrigation Project system improvements and any specific 
irrigation facility of the Irrigation Demonstration Project 
(excluding on-farm irrigation facilities) and the Toppenish 
Enhancement Project shall become features of the Wapato 
Irrigation Project.
    (f) Treatment of Certain Costs.--Costs related to Wapato 
Irrigation Project improvements, the Irrigation Demonstration 
Project, and the Toppenish Enhancement Project shall be a 
Federal responsibility and are nonreimbursable and 
nonreturnable.
    (g) [Redesignation of Yakima Indian Nation to Yakama Indian 
Nation.--]Redesignation of Yakama Indian Nation to Yakama 
Nation._
          [(1) Redesignation.--The Confederated Tribes and 
        Bands of the Yakima Indian Nation shall be known and 
        designated as the ``Confederated Tribes and Bands of 
        the Yakama Indian Nation''.]
          (1) Redesignation.--The Confederated Tribes and Bands 
        of the Yakama Indian Nation shall be known and 
        designated as the ``Confederated Tribes and Bands of 
        the Yakama Nation''.
          (2) References.--Any reference in a law, map, 
        regulation, document, paper, or other record of the 
        United States to the Confederated Tribes and Bands of 
        the Yakima Indian Nation referred to in subsection (a) 
        shall be [deemed to be a reference to the 
        ``Confederated Tribes and Bands of the Yakama Indian 
        Nation''.] deemed to be a reference to the 
        ``Confederated Tribes and Bands of the Yakama Nation''.

SEC. 1205. OPERATION OF YAKIMA BASIN PROJECTS.

    (a) Water Savings From Basin Conservation Program.--(1) The 
Basin Conservation Program is intended to result in reductions 
in water diversions allowing for changes in the present 
operation of the Yakima Project to improve stream flow 
conditions in the Yakima River basin. Except as provided by 
paragraph (5) of this subsection and section 1209, commencing 
with the enactment of this title, and notwithstanding that 
anticipated water savings are yet to be realized, the 
Secretary, upon the enactment of this title and acting through 
the Yakima Project [Superintendent] Manager, shall (A) continue 
to estimate the water supply which is anticipated to be 
available to meet water entitlements; and (B) provide instream 
flows in accordance with the following criteria:
    (2) The initial target flows represent target flows at the 
respective points. Reasonable fluctuations from these target 
flows are anticipated in the operation of the Yakima Project, 
except that for any period exceeding 24 hours--
          (A) actual flows at the Sunnyside Diversion Dam may 
        not decrease to less than 65 percent of the target flow 
        at the Sunnyside Diversion Dam; and
          (B) actual flows at the Prosser Diversion Dam may not 
        decrease by more than 50 cubic feet per second from the 
        target flow.
    (3) The instream flows shall be increased for interim 
periods during any month of April through October to facilitate 
when necessary the outward migration of anadromous fish. 
Increased instream flows for such interim periods shall be 
obtained through voluntary sale and leasing of water or water 
rights or from conservation measures taken under this title.
    (4)(A)(i) Within the three-year period beginning when 
appropriations are first provided to carry out the Basin 
Conservation Program, the instream flow goal in the Yakima 
River is as follows: to secure additional water which is to be 
used for instream flows to facilitate meeting recommendations 
of the System Operations Advisory Committee for [flushing] 
pulse flows or other instream [uses] uses, in addition to the 
quantity of water provided under the treaty between the Yakama 
Nation and the United States.
    [(ii) In addition to any other authority of the Secretary 
to provide water for flushing flows, the water required to meet 
the goal specified in clause (i) shall be acquired through the 
voluntary purchase or lease of land, water, or water rights and 
from the development of additional storage capability at Lake 
Cle Elum provided for in section 1206(a).]
    [(iii)] (ii) In addition to water required to meet the 
instream flow goal specified in clause (i), the System 
Operations Advisory Committee may recommend additional water to 
meet instream flow goals and water rights mandated pursuant to 
judicial actions.
    (B) After the period referred to in subparagraph (A), such 
instream flow goal is modified as follows:
          (i) The goal increases so that the instream target 
        flows specified in the table in paragraph (1) increase 
        by 50 cubic feet per second for each 27,000 acre-feet 
        of reduced annual water diversions achieved through 
        implementation of measures under the Basin Conservation 
        Program in proportion to the funding received. Such 
        increases do not apply to actions taken pursuant to 
        section 1204. Such increases shall not further diminish 
        the amount of water that otherwise would have been 
        delivered by an entity to its water users in years of 
        water proration.
          (ii) The goal changes directly with the availability 
        of water resulting from Federal expenditures under this 
        title for purchase or lease of water under this title.
  (C) The Yakima Project [Superintendent] Manager shall 
maintain an account of funded and completed conservation 
measures taken under the Basin Conservation Program.
  (D) No later than March 31 of each calendar year, the Yakima 
Project [Superintendent] Manager shall meet with the State of 
Washington, [Yakama Indian] Yakama Nation, and Yakima River 
basin irrigators to mutually determine total diversion 
reductions and respective adjustments to the target flows 
referred to in this subsection. The Yakima Project 
[Superintendent] Manager shall announce such adjustments with 
the announcements of Total Water Supply Available. For the 
purposes of this subparagraph, conserved water will be 
considered available for adjusting target flows in the first 
year following completion of a measure or following a result 
from the post implementation monitoring and evaluation program, 
as the case may be.
    (5) Operational procedures and processes in the Yakima 
River basin which have or may be implemented through judicial 
actions shall not be impacted by this title.
    (6)(A) Within three years after the date of enactment of 
this Act, the Secretary shall conduct a study and submit a 
report with recommendations to the appropriate committees of 
the Congress on whether the water supply available for 
irrigation is adequate to sustain the agricultural economy of 
the Yakima River basin.
    (B) The target flows provided for under this subsection 
shall be evaluated within three years after the date of 
enactment of this Act by the Systems Operations Advisory 
Committee for the purpose of making a report with 
recommendations to the Secretary and the Congress evaluating 
what is necessary to have biologically-based target flows.
    (C) The recommendations and reports under subparagraphs (A) 
and (B) shall provide a basis for the third phase of the Yakima 
River Basin Water Enhancement Project.
    (b) Water From Lake Cle Elum.--Water accruing from the 
development of additional storage capacity at Lake Cle Elum, 
made available pursuant to the modifications authorized in 
section 1206(a), shall not be part of the Yakima River basin's 
water supply as provided in subsection (a)(1). Water obtained 
from such development is exclusively dedicated to [instream 
flows for use by the Yakima Project [Superintendent] Manager as 
flushing flows or as otherwise] fishery purposes, as advised by 
the System Operations Advisory Committee. Water may be carried 
over from year-to-year in the additional capacity to the extent 
that there is space available. Releases may be made from other 
Yakima Project storage facilities to most effectively utilize 
this additional water, except that water deliveries to holders 
of existing water rights shall not be impaired.
    (c) Status of Basin Conservation Program Facilities.--
Measures of the Basin Conservation Program which are 
implemented on facilities currently under the administrative 
jurisdiction of the Secretary, except as provided in section 
1204, shall be considered features of the Yakima River Basin 
Water Enhancement Project, and their operation and maintenance 
shall be integrated and coordinated with other features of the 
existing Yakima Project. The responsibility for operation and 
maintenance and the related costs shall remain with the current 
operating entity. As appropriate, the Secretary shall 
incorporate the operation and maintenance of such facilities 
into existing agreements. The Secretary shall assure that such 
facilities are operated in a manner consistent with Federal and 
State law and in accordance with water rights recognized 
pursuant to State and Federal law.
    (d) Water Acquired by Purchase and Lease.--Water acquired 
from voluntary sellers and lessors shall be administered as a 
block of water separate from the Total Water Supply Available, 
in accordance with applicable Federal and State law.
    (e) Yakima Project Purpose.--[(1) An additional purpose of 
the Yakima Project shall be for fish, wildlife, and 
recreation.]
    (1) In general.--Additional purposes of the Yakima Project 
shall be any of the following:
          (A) To recover and maintain self-sustaining 
        harvestable populations of native fish, both anadromous 
        and resident species, throughout their historic 
        distribution range in the Yakima Basin.
          (B) To protect, mitigate, and enhance aquatic life 
        and wildlife.
          (C) Recreation.
          (D) Municipal, industrial, and domestic use.
    (2) The existing storage rights of the Yakima Project shall 
include storage for the purposes of fish, wildlife, and 
recreation.
    (3) The purposes specified in paragraphs (1) and (2) shall 
not impair the operation of the Yakima Project to provide water 
for irrigation purposes nor impact existing contracts.

SEC. 1206. LAKE CLE ELUM AUTHORIZATION OF APPROPRIATIONS.

    (a) Modifications and Improvements.--There is hereby 
authorized to be appropriated to the Secretary--
          (1) [at September 1990 prices, plus or minus such 
        amounts as may be justified by reason of ordinary 
        fluctuation of applicable indexes, $2,934,000 to--] not 
        more than $12,000,000 to--
                  (A) modify the radial gates at Cle Elum Dam 
                to provide an additional 14,600 acre-feet of 
                storage capacity in Lake Cle Elum,
                  (B) provide for shoreline protection of Lake 
                Cle Elum, and
                  (C) construct juvenile fish passage 
                facilities at Cle Elum Dam, plus
          (2) such additional amounts as may be necessary which 
        may be required for environmental mitigation.
    (b) Operation and Maintenance Appropriations.--There is 
hereby authorized to be appropriated to the Secretary such sums 
as may be necessary for that portion of the operation and 
maintenance of Cle Elum Dam determined by the Secretary to be a 
Federal responsibility.

SEC. 1207. ENHANCEMENT OF WATER [SUPPLIES] MANAGEMENT FOR YAKIMA BASIN 
                    TRIBUTARIES.

    (a) General Provisions.--The following shall be applicable 
to the investigation and implementation of measures to enhance 
water [supplies] management for fish and wildlife and 
irrigation purposes on tributaries of the Yakima River basin:
          (1) An enhancement program authorized by this section 
        undertaken in any tributary shall be contingent upon 
        the agreement of appropriate water right owners and 
        water supply entities to participate.
          (2) The enhancement program authorized by this 
        section shall not be construed to affect (A) the water 
        rights of any water right owners that choose not to 
        participate or opt out of tributary enhancement 
        projects pursuant to this section in the tributary or 
        other water delivering entities; (B) the capability of 
        nonparticipating tributary water users to divert, 
        convey, and apply water; and (C) existing water and 
        land uses within the tributary area.
          (3) The water supply for tributary enhancement shall 
        be administered in accordance with applicable State and 
        Federal laws.
          (4) Any enhancement program authorized by this 
        section shall be predicated upon the availability of a 
        dependable water supply.
    (b) [Study.--(1) The Secretary, following consultation with 
the State of Washington, the tributary water right owners, and 
the [Yakama Indian] Yakama Nation, and agreement of appropriate 
water right owners to participate, shall conduct a study 
concerning the measures that can be implemented to enhance 
water supplies for fish and wildlife and irrigation purposes on 
Taneum Creek, including (but not limited to)--]
    (1) In general.--The Secretary, following consultation with 
the State of Washington, tributary water right owners, and the 
Yakama Nation, and on agreement of appropriate water right 
owners, is authorized to conduct studies to evaluate measures 
to further Yakima Project purposes on tributaries to the Yakima 
River. Enhancement programs that use measures authorized by 
this subsection may be investigated and implemented by the 
Secretary in tributaries to the Yakima River, including Taneum 
Creek, other areas, or tributary basins that currently or could 
potentially be provided supplemental or transfer water by 
entities, such as the Kittitas Reclamation District or the 
Yakima-Tieton Irrigation District, subject to the condition 
that activities may commence on completion of applicable and 
required feasibility studies, environmental reviews, and cost-
benefit analyses that include favorable recommendations for 
further project development, as appropriate. Measures to 
evaluate include--
          (A) water use efficiency improvements, including 
        irrigation efficiency improvements (in coordination 
        with programs of the Department of Agriculture), 
        consolidation of diversions or administration, and 
        diversion scheduling or coordination;
          (B) the conveyance of water from the Yakima Project 
        through the facilities of any irrigation entity willing 
        to contract with the Secretary without adverse impact 
        to water users;
          (C) improvements in irrigation system management or 
        delivery facilities within the Yakima River basin when 
        those improvements allow for increased irrigation 
        system conveyance and corresponding reduction in 
        diversion from tributaries or flow enhancements to 
        tributaries through direct flow supplementation or 
        groundwater recharge;
          (D) improvements of irrigation system management or 
        delivery facilities to reduce or eliminate excessively 
        high flows caused by the use of natural streams for 
        conveyance or irrigation water or return water;
          [(C)] (E) the construction, operation, and 
        maintenance of [ground water] groundwater recharge and 
        withdrawal facilities;
          [(D)] (F) contracting with any entity that is willing 
        to voluntarily limit or forego present water use 
        through lease or sale of water or water rights on a 
        temporary or permanent basis;
          [(E)](G) purchase or transfer of water rights from 
        willing sellers; and
          [(F)] (H) other measures compatible with the purposes 
        of this title, including restoration of stream 
        processes and stream habitats.
    (2) In conducting [the Taneum Creek study] studies under 
this subsection, the Secretary shall consider--
          (A) the hydrologic and environmental characteristics;
          (B) the engineering [and economic], infrastructure, 
        economic, and land use factors relating to each 
        measure; [and]
          (C) the potential impacts upon the operations of 
        present water users in the tributary and measures to 
        alleviate such impacts[.]; and
          (D) any related studies already underway or 
        undertaken.
    (3) The Secretary shall make available to the public for a 
45-day comment period a draft report describing in detail the 
findings, conclusions, and recommendations of the study of each 
tributary or group of tributaries. The Secretary shall consider 
and include any comment made in developing a final report. The 
Secretary's final report shall be submitted to the Committee on 
Energy and Natural Resources of the Senate, the Committee on 
Natural Resources of the House of Representatives, and the 
Governor of the State of Washington, and made available to the 
public.
    (c) Implementation of Nonstorage and Nonsurface Storage 
Measures.--After securing the necessary permits the Secretary 
may, in cooperation with the Department of Ecology of the State 
of Washington and in accordance with the laws of the State of 
Washington, implement nonstorage and nonsurface storage 
measures identified in the final report under subsection (b) 
upon fulfillment of the following conditions:
          (1) The Secretary shall enter into an agreement with 
        the appropriate water right owners who are willing to 
        participate, the State of Washington, and the [Yakama 
        Indian] Yakama Nation, for the use and management of 
        the water supply to be provided by proposed tributary 
        measures pursuant to this section.
          (2) The Secretary and the State of Washington find 
        that the implementation of the proposed tributary 
        measures will not impair the water rights of any person 
        or entity in the affected tributary.
    [(d) Other Yakima River Basin Tributaries.--Enhancement 
programs similar to the enhancement program authorized by this 
section may be investigated and implemented by the Secretary in 
other tributaries contingent upon the agreement of the 
appropriate tributary water right owners to participate. The 
provisions set forth in this section shall be applicable to 
such programs.]
    [(e)] (d) Authorization of Appropriations.--(1) There is 
hereby authorized to be appropriated to the Secretary $ 500,000 
for the study of the Taneum Creek Project and such amount as 
the Secretary subsequently determines is necessary for 
implementation of tributary measures pursuant to this section.
  (2) There is also authorized to be appropriated to the 
Secretary such funds as are necessary for the investigation and 
implementation of enhancement programs similar to the 
enhancement program authorized by this section in [other] 
Yakima River basin tributaries contingent upon the agreement of 
the appropriate water right owners and other water supply 
entities to participate. [Funds for the implementation of any 
such similar enhancement program may not be appropriated until 
after the Secretary submits an investigation report to the 
appropriate congressional committees.]

SEC. 1208. CHANDLER PUMPING PLANT AND POWERPLANT OPERATIONS AT PROSSER 
                    DIVERSION DAM.

    (a) Authorization of Appropriations for Electrification.--
In order to provide for electrification to enhance instream 
flows by eliminating the need to divert water to operate the 
hydraulic turbines which pump water to the Kennewick Irrigation 
District, there is authorized to be appropriated--
          (1) $50,000 to conduct an assessment of opportunities 
        for alternative pumping plant locations;
          (2) $4,000,000 for construction; and
          (3) such sums as may be necessary for the prorata 
        share of the operation and maintenance allocated to 
        fish and wildlife as determined by the Secretary.
    (b) Power for Project Pumping.--(1) The Administrator of 
the Bonneville Power Administration shall provide for project 
power needed to effect the electrification as provided in 
subsection (a).
    (2)(A) There is authorized to be appropriated for the 
Bureau of Reclamation for each fiscal year in which the 
Administrator provides power under this subsection an amount 
equal to the cost to the Bonneville Power Administration of 
providing power under this subsection during such fiscal year. 
The rate to be utilized by the Administrator in determining the 
cost of power under this paragraph in a fiscal year shall be 
the rate for priority firm power charged by the Bonneville 
Power Administration in that fiscal year under section 7(b) of 
the Pacific Northwest Electric Power Planning and Conservation 
Act ( 16 U.S.C. 839e(b)).
    (B) The Bureau of Reclamation shall, using funds 
appropriated pursuant to the authorization of appropriations in 
subparagraph (A), reimburse the Bonneville Power Administration 
for the costs of the project power provided under this 
subsection. Such funds shall be available for such purpose 
without fiscal year limitation.
    (c) Subordination.--Any diversions for hydropower 
generation at the Chandler Powerplant shall be subordinated to 
meet the flow targets determined under subsection (f).
    (d) Water Supply for Kennewick Irrigation District.--The 
Secretary shall ensure that the irrigation water supply for the 
Kennewick Irrigation District shall not be negatively affected 
by conservation, electrification, or subordination pursuant to 
this title and any reduction in its irrigation water supply 
resulting from conservation measures adopted or implemented by 
other entities pursuant to this title shall be replaced by 
water developed through subordination, electrification, or a 
combination of the two.
    (e) Treatment of Certain Funds.--Funds appropriated and 
project power provided pursuant to this section shall be 
nonreimbursable since such funds are used for fish and wildlife 
purposes and such funds are not subject to cost share under 
section 1203(d).
    (f) Target Flows.--Target flows measured at appropriate 
biological and hydrological location or locations shall be 
determined by the Yakima Project [Superintendent] Manager in 
consultation with the System Operations Advisory Committee.

SEC. 1209. AUGMENTATION OF KACHESS RESERVOIR STORED WATER.

    (a) Authorization of Appropriations.--In order to augment 
Kachess Reservoir stored water supplies from flows of Cabin 
Creek and Silver Creek which are excess to system demands, 
there is authorized to be appropriated--
          (1) such sums as may be necessary to carry out a 
        feasibility study, including the benefits, costs, and 
        environmental aspects, of the facility described in 
        paragraph (2);
          (2) for the construction of facilities to convey such 
        flows to Kachess Reservoir, $ 20,000,000; and
          (3) such sums as may be necessary for the pro rata 
        share of the operation and maintenance allocated to 
        fish and wildlife determined by the Secretary.
    (b) Limitation.--Construction of the facilities described 
in subsection (a)(1) is contingent on the completion of the 
feasibility study referred to in subsection (a)(2).
    (c) Use of Additional Water.--The stored water supply 
resulting from the construction of facilities under this 
section shall be used by the Secretary to--
          (1) enhance the water supply available to the 
        Kittitas Reclamation District and the Roza Irrigation 
        District in years of proration; and
          (2) facilitate reservoir operations in the Easton Dam 
        to Keechelus Dam reach of the Yakima River for the 
        propagation of anadromous fish.
    (d) Treatment of Costs.--The construction and operation and 
maintenance costs of the facilities under this section shall be 
allocated to irrigation and fishery enhancement, as follows:
          (1) The portion of such costs allocated to irrigation 
        is reimbursable, with the construction costs to be paid 
        prior to initiation of construction by the Kittitas 
        Reclamation District and the Roza Irrigation District.
          (2) The portion of such costs allocated to fishery 
        enhancement is nonreimbursable.
    (e) Kachess Dam Modifications.--There is authorized to be 
appropriated $ 2,000,000 for the modification of the discharge 
facilities of Kachess Dam to improve reservoir operations for 
anadromous fish enhancement. Amounts appropriated under this 
subsection are nonreimbursable.

SEC. 1210. INTERIM COMPREHENSIVE BASIN OPERATING PLAN.

    (a) Development.--The Secretary shall, in consultation with 
the State of Washington, [Yakama Indian] Yakama Nation, Yakima 
River Basin irrigation districts, Bonneville Power 
Administration, and other entities as determined by the 
Secretary, develop an interim comprehensive operating plan for 
providing a general framework within which the Yakima Project 
[Superintendent] Manager operates the Yakima Project, including 
measures implemented under the Yakima River Basin Water 
Enhancement Project, including (but not limited to)--
          (1) operating capability and constraints of the 
        system;
          (2) information on water supply calculations and 
        water needs;
          (3) system operations and stream flow objectives; and
          (4) the System Operations Advisory Committee 
        activities.
    (b) Process Requirements.--A draft of the interim 
comprehensive basin operating plan shall be completed within 18 
months after the completion of the Basin Conservation Plan 
under section 1203(f) and, upon completion, published for a 90-
day public review period. The Secretary shall complete and 
publish the final interim comprehensive operating plan within 
90 days after the close of the public review period. The 
Secretary shall update the plan as needed to respond to 
decisions from water adjudications relating to the Yakima River 
basin.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated [$100,000] $200,000 to carry out this 
section.

SEC. 1211. ENVIRONMENTAL COMPLIANCE.

    There are hereby authorized to be appropriated to the 
Secretary [$2,000,000] $5,000,000 for environmental compliance 
activities including the conduct, in cooperation with the State 
of Washington, of an inventory of wildlife and wetland 
resources in the Yakima River basin and an investigation of 
measures, including ``wetland banking'', which could be 
implemented to address potential impacts which could result 
from the activities taken under this title.

SEC. 1212. SAVINGS AND CONTINGENCIES.

    (a) In General.--Nothing in this title shall be construed 
to--
          (1) affect or modify any treaty or other right of the 
        [Yakama Indian] Yakama Nation;
          (2) authorize the appropriation or use of water by 
        any Federal, State, or local agency, the [Yakama 
        Indian] Yakama Nation, or any other entity or 
        individual;
          (3) impair the rights or jurisdictions of the United 
        States, the States, the [Yakama Indian] Yakama Nation, 
        or other entities over waters of any river or stream or 
        over any ground water resource;
          (4) alter, amend, repeal, interpret, modify, or be in 
        conflict with any interstate compact made by the 
        States;
          (5) alter, establish, or impair the respective rights 
        of States, the United States, the [Yakama Indian] 
        Yakama Nation, or any other entity or individual with 
        respect to any water or water-related right;
          (6) alter, diminish, or abridge the rights and 
        obligations of any Federal, State, or local agency, the 
        [Yakama Indian] Yakama Nation, or other entity, public 
        or private;
          (7) affect or modify the rights of the [Yakama 
        Indian] Yakama Nation or its successors in interest to, 
        and management and regulation of, those water resources 
        arising or used, within the external boundaries of the 
        [Yakama Indian] Yakama Reservation;
          (8) affect or modify the settlement agreement between 
        the United States and the State of Washington filed in 
        Yakima County Superior Court with regard to Federal 
        reserved water rights other than those rights reserved 
        by the United States for the benefit of the [Yakama 
        Indian] Yakama Nation and its members;
          (9) affect or modify the rights of any Federal, 
        State, or local agency, the [Yakama Indian] Yakama 
        Nation, or any other entity, public or private with 
        respect to any unresolved and unsettled claims in any 
        water right adjudications, or court decisions, 
        including State against Acquavella, or constitute 
        evidence in any such proceeding in which any water or 
        water related right is adjudicated; or
          (10) preclude other planning studies and projects to 
        accomplish the purposes of this title by other means: 
        funded publicly, privately, or by a combination of 
        public and private funding.
    (b) Contingency Based on Appropriations.--The performance 
of any activity under this title which requires accomplishment 
within a specified period that may require appropriation of 
money by Congress or the allotment of funds shall be contingent 
upon such appropriation or allotment being made.

SEC. 1213. AUTHORIZATION OF THE INTEGRATED PLAN AS PHASE III OF YAKIMA 
                    RIVER BASIN WATER ENHANCEMENT PROJECT.

    (a) Integrated Plan.--
          (1) In general.--The Secretary shall implement the 
        Integrated Plan as Phase III of the Yakima River Basin 
        Water Enhancement Project in accordance with this 
        section and applicable laws.
          (2) Initial development phase of the integrated 
        plan.--
                  (A) In general.--The Secretary, in 
                coordination with the State of Washington and 
                Yakama Nation and subject to feasibility 
                studies, environmental reviews, and the 
                availability of appropriations, shall implement 
                an initial development phase of the Integrated 
                Plan, to--
                          (i) complete the planning, design, 
                        and construction or development of 
                        upstream and downstream fish passage 
                        facilities, as previously authorized by 
                        the Hoover Power Plant Act of 1984 (43 
                        U.S.C. 619 et seq.) at Cle Elum 
                        Reservoir and another Yakima Project 
                        reservoir identified by the Secretary 
                        as consistent with the Integrated Plan, 
                        subject to the condition that, if the 
                        Yakima Project reservoir identified by 
                        the Secretary contains a hydropower 
                        project licensed by the Federal Energy 
                        Regulatory Commission, the Secretary 
                        shall cooperate with the Federal Energy 
                        Regulatory Commission in a timely 
                        manner to ensure that actions taken by 
                        the Secretary are consistent with the 
                        applicable hydropower project license;
                          (ii) negotiate long-term agreements 
                        with participating proratable 
                        irrigation entities in the Yakima Basin 
                        and, acting through the Bureau of 
                        Reclamation, coordinate between Bureaus 
                        of the Department of the Interior and 
                        with the heads of other Federal 
                        agencies to negotiate agreements 
                        concerning leases, easements, and 
                        rights-of-way on Federal land, and 
                        other terms and conditions determined 
                        to be necessary to allow for the non-
                        Federal financing, construction, 
                        operation, and maintenance of--
                                  (I) new facilities needed to 
                                access and deliver inactive 
                                storage in Lake Kachess for the 
                                purpose of providing drought 
                                relief for irrigation (known as 
                                the ``Kachess Drought Relief 
                                Pumping Plant''); and
                                  (II) a conveyance system to 
                                allow transfer of water between 
                                Keechelus Reservoir to Kachess 
                                Reservoir for purposes of 
                                improving operational 
                                flexibility for the benefit of 
                                both fish and irrigation (known 
                                as the ``K to K Pipeline'');
                          (iii) participate in, provide funding 
                        for, and accept non-Federal financing 
                        for--
                                  (I) water conservation 
                                projects, not subject to the 
                                provisions of the Basin 
                                Conservation Program described 
                                in section 1203, that are 
                                intended to partially implement 
                                the Integrated Plan by 
                                providing 85,000 acre-feet of 
                                conserved water to improve 
                                tributary and mainstem stream 
                                flow; and
                                  (II) aquifer storage and 
                                recovery projects;
                          (iv) study, evaluate, and conduct 
                        feasibility analyses and environmental 
                        reviews of fish passage, water supply 
                        (including groundwater and surface 
                        water storage), conservation, habitat 
                        restoration projects, and other 
                        alternatives identified as consistent 
                        with the purposes of this Act, for the 
                        initial and future phases of the 
                        Integrated Plan;
                          (v) coordinate with and assist the 
                        State of Washington in implementing a 
                        robust water market to enhance water 
                        management in the Yakima River basin, 
                        including--
                                  (I) assisting in identifying 
                                ways to encourage and increase 
                                the use of, and reduce the 
                                barriers to, water transfers, 
                                leasing, markets, and other 
                                voluntary transactions among 
                                public and private entities in 
                                the Yakima River basin;
                                  (II) providing technical 
                                assistance, including 
                                scientific data and market 
                                information; and
                                  (III) negotiating agreements 
                                that would facilitate voluntary 
                                water transfers between 
                                entities, including as 
                                appropriate, the use of 
                                federally managed 
                                infrastructure; and
                          (vi) enter into cooperative 
                        agreements with, or, subject to a 
                        minimum non-Federal cost-sharing 
                        requirement of 50 percent, make grants 
                        to, the Yakama Nation, the State of 
                        Washington, Yakima River basin 
                        irrigation districts, water districts, 
                        conservation districts, other local 
                        governmental entities, nonprofit 
                        organizations, and land owners to carry 
                        out this title under such terms and 
                        conditions as the Secretary may 
                        require, including the following 
                        purposes:
                                  (I) Land and water transfers, 
                                leases, and acquisitions from 
                                willing participants, so long 
                                as the acquiring entity shall 
                                hold title and be responsible 
                                for any and all required 
                                operations, maintenance, and 
                                management of that land and 
                                water.
                                  (II) To combine or relocate 
                                diversion points, remove fish 
                                barriers, or for other 
                                activities that increase flows 
                                or improve habitat in the 
                                Yakima River and its 
                                tributaries in furtherance of 
                                this title.
                                  (III) To implement, in 
                                partnership with Federal and 
                                non-Federal entities, projects 
                                to enhance the health and 
                                resilience of the watershed.
                  (B) Commencement date.--The Secretary shall 
                commence implementation of the activities 
                included under the initial development phase 
                pursuant to this paragraph--
                          (i) on the date of enactment of this 
                        section; and
                          (ii) on completion of applicable 
                        feasibility studies, environmental 
                        reviews, and cost-benefit analyses that 
                        include favorable recommendations for 
                        further project development.
          (3) Intermediate and final phases.--
                  (A) In general.--The Secretary, in 
                coordination with the State of Washington and 
                in consultation with the Yakama Nation, shall 
                develop plans for intermediate and final 
                development phases of the Integrated Plan to 
                achieve the purposes of this Act, including 
                conducting applicable feasibility studies, 
                environmental reviews, and other relevant 
                studies needed to develop the plans.
                  (B) Intermediate phase.--The Secretary shall 
                develop an intermediate development phase to 
                implement the Integrated Plan that, subject to 
                authorization and appropriation, would commence 
                not later than 10 years after the date of 
                enactment of this section.
                  (C) Final phase.--The Secretary shall develop 
                a final development phase to implement the 
                Integrated Plan that, subject to authorization 
                and appropriation, would commence not later 
                than 20 years after the date of enactment of 
                this section.
          (4) Contingencies.--The implementation by the 
        Secretary of projects and activities identified for 
        implementation under the Integrated Plan shall be--
                  (A) subject to authorization and 
                appropriation;
                  (B) contingent on the completion of 
                applicable feasibility studies, environmental 
                reviews, and cost-benefit analyses that include 
                favorable recommendations for further project 
                development;
                  (C) implemented on public review and a 
                determination by the Secretary that design, 
                construction, and operation of a proposed 
                project or activity is in the best interest of 
                the public; and
                  (D) in compliance with all applicable laws, 
                including the National Environmental Policy Act 
                of 1969 (42 U.S.C. 4321 et seq.) and the 
                Endangered Species Act of 1973 (16 U.S.C. 1531 
                et seq).
          (5) Progress report.--
                  (A) In general.--Not later than 5 years after 
                the date of enactment of this section, the 
                Secretary, in conjunction with the State of 
                Washington and in consultation with the Yakama 
                Nation, shall submit to the Committee on Energy 
                and Natural Resources of the Senate and the 
                Committee on Natural Resources of the House of 
                Representatives a progress report on the 
                development and implementation of the 
                Integrated Plan.
                  (B) Requirements.--The progress report under 
                this paragraph shall--
                          (i) provide a review and 
                        reassessment, if needed, of the 
                        objectives of the Integrated Plan, as 
                        applied to all elements of the 
                        Integrated Plan;
                          (ii) assess, through performance 
                        metrics developed at the initiation of, 
                        and measured throughout the 
                        implementation of, the Integrated Plan, 
                        the degree to which the implementation 
                        of the initial development phase 
                        addresses the objectives and all 
                        elements of the Integrated Plan;
                          (iii) identify the amount of Federal 
                        funding and non-Federal contributions 
                        received and expended during the period 
                        covered by the report;
                          (iv) describe the pace of project 
                        development during the period covered 
                        by the report;
                          (v) identify additional projects and 
                        activities proposed for inclusion in 
                        any future phase of the Integrated Plan 
                        to address the objectives of the 
                        Integrated Plan, as applied to all 
                        elements of the Integrated Plan; and
                          (vi) for water supply projects--
                                  (I) provide a preliminary 
                                discussion of the means by 
                                which--
                                          (aa) water and costs 
                                        associated with each 
                                        recommended project 
                                        would be allocated 
                                        among authorized uses; 
                                        and
                                          (bb) those 
                                        allocations would be 
                                        consistent with the 
                                        objectives of the 
                                        Integrated Plan; and
                                  (II) establish a plan for 
                                soliciting and formalizing 
                                subscriptions among individuals 
                                and entities for participation 
                                in any of the recommended water 
                                supply projects that will 
                                establish the terms for 
                                participation, including fiscal 
                                obligations associated with 
                                subscription.
    (b) Financing, Construction, Operation, and Maintenance of 
Kachess Drought Relief Pumping Plant and K to K Pipeline.--
          (1) Agreements.--Long-term agreements negotiated 
        between the Secretary and participating proratable 
        irrigation entities in the Yakima Basin for the non-
        Federal financing, construction, operation, and 
        maintenance of the Drought Relief Pumping Plant and K 
        to K Pipeline shall include provisions regarding--
                  (A) responsibilities of the participating 
                proratable irrigation entities for the 
                planning, design, and construction of 
                infrastructure in consultation and coordination 
                with the Secretary;
                  (B) property titles and responsibilities of 
                the participating proratable irrigation 
                entities for the maintenance of and liability 
                for all infrastructure constructed under this 
                title;
                  (C) operation and integration of the projects 
                by the Secretary in the operation of the Yakima 
                Project;
                  (D) costs associated with the design, 
                financing, construction, operation, 
                maintenance, and mitigation of projects, with 
                the costs of Federal oversight and review to be 
                nonreimbursable to the participating proratable 
                irrigation entities and the Yakima Project; and
                  (E) responsibilities for the pumping and 
                operational costs necessary to provide the 
                total water supply available made inaccessible 
                due to drought pumping during the preceding 1 
                or more calendar years, in the event that the 
                Kachess Reservoir fails to refill as a result 
                of pumping drought storage water during the 
                preceding 1 or more calendar years, which shall 
                remain the responsibility of the participating 
                proratable irrigation entities.
          (2) Use of kachess reservoir stored water.--
                  (A) In general.--The additional stored water 
                made available by the construction of 
                facilities to access and deliver inactive 
                storage in Kachess Reservoir under subsection 
                (a)(2)(A)(ii)(I) shall--
                          (i) be considered to be Yakima 
                        Project water;
                          (ii) not be part of the total water 
                        supply available, as that term is 
                        defined in various court rulings; and
                          (iii) be used exclusively by the 
                        Secretary--
                                  (I) to enhance the water 
                                supply in years when the total 
                                water supply available is not 
                                sufficient to provide 70 
                                percent of proratable 
                                entitlements in order to make 
                                that additional water available 
                                up to 70 percent of proratable 
                                entitlements to the Kittitas 
                                Reclamation District, the Roza 
                                Irrigation District, or other 
                                proratable irrigation entities 
                                participating in the 
                                construction, operation, and 
                                maintenance costs of the 
                                facilities under this title 
                                under such terms and conditions 
                                to which the districts may 
                                agree, subject to the 
                                conditions that--
                                          (aa) the Bureau of 
                                        Indian Affairs, the 
                                        Wapato Irrigation 
                                        Project, and the Yakama 
                                        Nation, on an election 
                                        to participate, may 
                                        also obtain water from 
                                        Kachess Reservoir 
                                        inactive storage to 
                                        enhance applicable 
                                        existing irrigation 
                                        water supply in 
                                        accordance with such 
                                        terms and conditions to 
                                        which the Bureau of 
                                        Indian Affairs and the 
                                        Yakama Nation may 
                                        agree; and
                                          (bb) the additional 
                                        supply made available 
                                        under this clause shall 
                                        be available to 
                                        participating 
                                        individuals and 
                                        entities in proportion 
                                        to the proratable 
                                        entitlements of the 
                                        participating 
                                        individuals and 
                                        entities, or in such 
                                        other proportion as the 
                                        participating entities 
                                        may agree; and
                                  (II) to facilitate reservoir 
                                operations in the reach of the 
                                Yakima River between Keechelus 
                                Dam and Easton Dam for the 
                                propagation of anadromous fish.
                  (B) Effect of paragraph.--Nothing in this 
                paragraph affects (as in existence on the date 
                of enactment of this section) any contract, law 
                (including regulations) relating to repayment 
                costs, water right, or Yakama Nation treaty 
                right.
          (3) Commencement.--The Secretary shall not commence 
        entering into agreements pursuant to subsection 
        (a)(2)(A)(ii) or subsection (b)(1) or implementing any 
        activities pursuant to the agreements before the date 
        on which--
                  (A) all applicable and required feasibility 
                studies, environmental reviews, and cost-
                benefit analyses have been completed and 
                include favorable recommendations for further 
                project development, including an analysis of--
                          (i) the impacts of the agreements and 
                        activities conducted pursuant to 
                        subsection (a)(2)(A)(ii) on adjacent 
                        communities, including potential fire 
                        hazards, water access for fire 
                        districts, community and homeowner 
                        wells, future water levels based on 
                        projected usage, recreational values, 
                        and property values; and
                          (ii) specific options and measures 
                        for mitigating the impacts, as 
                        appropriate;
                  (B) the Secretary has made the agreements and 
                any applicable project designs, operations 
                plans, and other documents available for public 
                review and comment in the Federal Register for 
                a period of not less than 60 days; and
                  (C) the Secretary has made a determination, 
                consistent with applicable law, that the 
                agreements and activities to which the 
                agreements relate--
                          (i) are in the public interest; and
                          (ii) could be implemented without 
                        significant adverse impacts to the 
                        environment.
          (4) Electrical power associated with kachess drought 
        relief pumping plant.--
                  (A) In general.--The Administrator of the 
                Bonneville Power Administration, pursuant to 
                the Pacific Northwest Electric Power Planning 
                and Conservation Act (16 U.S.C. 839 et seq.), 
                shall provide to the Secretary project power to 
                operate the Kachess Pumping Plant constructed 
                under this title if inactive storage in Kachess 
                Reservoir is needed to provide drought relief 
                for irrigation, subject to the requirements of 
                subparagraphs (B) and (C).
                  (B) Determination.--Power may be provided 
                under subparagraph (A) only if--
                          (i) there is in effect a drought 
                        declaration issued by the State of 
                        Washington;
                          (ii) there are conditions that have 
                        led to 70 percent or less water 
                        delivery to proratable irrigation 
                        districts, as determined by the 
                        Secretary; and
                          (iii) the Secretary determines that 
                        it is appropriate to provide power 
                        under that subparagraph.
                  (C) Period of availability.--Power under 
                subparagraph (A) shall be provided until the 
                date on which the Secretary determines that 
                power should no longer be provided under that 
                subparagraph, but for not more than a 1-year 
                period or the period during which the Secretary 
                determines that drought mitigation measures are 
                necessary in the Yakima River basin.
                  (D) Rate.--The Administrator of the 
                Bonneville Power Administration shall provide 
                power under subparagraph (A) at the then-
                applicable lowest Bonneville Power 
                Administration rate for public body, 
                cooperative, and Federal agency customers firm 
                obligations, which as of the date of enactment 
                of this section is the priority firm Tier 1 
                rate, and shall not include any irrigation 
                discount.
                  (E) Local provider.--During any period in 
                which power is not being provided under 
                subparagraph (A), the power needed to operate 
                the Kachess Pumping Plant shall be obtained by 
                the Secretary from a local provider.
                  (F) Costs.--The cost of power for such 
                pumping, station service power, and all costs 
                of transmitting power from the Federal Columbia 
                River Power System to the Yakima Enhancement 
                Project pumping facilities shall be borne by 
                irrigation districts receiving the benefits of 
                that water.
                  (G) Duties of commissioner.--The Commissioner 
                of Reclamation shall be responsible for 
                arranging transmission for deliveries of 
                Federal power over the Bonneville system 
                through applicable tariff and business practice 
                processes of the Bonneville system and for 
                arranging transmission for deliveries of power 
                obtained from a local provider.
    (c) Design and Use of Groundwater Recharge Projects.--
          (1) In general.--Any water supply that results from 
        an aquifer storage and recovery project shall not be 
        considered to be a part of the total water supply 
        available if--
                  (A) the water for the aquifer storage and 
                recovery project would not be available for 
                use, but instead for the development of the 
                project;
                  (B) the aquifer storage and recovery project 
                will not otherwise impair any water supply 
                available for any individual or entity entitled 
                to use the total water supply available; and
                  (C) the development of the aquifer storage 
                and recovery project will not impair fish or 
                other aquatic life in any localized stream 
                reach.
          (2) Project types.--The Secretary may provide 
        technical assistance for, and participate in, any of 
        the following 3 types of groundwater recharge projects 
        (including the incorporation of groundwater recharge 
        projects into Yakima Project operations, as 
        appropriate):
                  (A) Aquifer recharge projects designed to 
                redistribute Yakima Project water within a 
                water year for the purposes of supplementing 
                stream flow during the irrigation season, 
                particularly during storage control, subject to 
                the condition that if such a project is 
                designed to supplement a mainstem reach, the 
                water supply that results from the project 
                shall be credited to instream flow targets, in 
                lieu of using the total water supply available 
                to meet those targets.
                  (B) Aquifer storage and recovery projects 
                that are designed, within a given water year or 
                over multiple water years--
                          (i) to supplement or mitigate for 
                        municipal uses;
                          (ii) to supplement municipal supply 
                        in a subsurface aquifer; or
                          (iii) to mitigate the effect of 
                        groundwater use on instream flow or 
                        senior water rights.
                  (C) Aquifer storage and recovery projects 
                designed to supplement existing irrigation 
                water supply, or to store water in subsurface 
                aquifers, for use by the Kittitas Reclamation 
                District, the Roza Irrigation District, or any 
                other proratable irrigation entity 
                participating in the repayment of the 
                construction, operation, and maintenance costs 
                of the facilities under this section during 
                years in which the total water supply available 
                is insufficient to provide to those proratable 
                irrigation entities all water to which the 
                entities are entitled, subject to the 
                conditions that--
                          (i) the Bureau of Indian Affairs, the 
                        Wapato Irrigation Project, and the 
                        Yakama Nation, on an election to 
                        participate, may also obtain water from 
                        aquifer storage to enhance applicable 
                        existing irrigation water supply in 
                        accordance with such terms and 
                        conditions to which the Bureau of 
                        Indian Affairs and the Yakama Nation 
                        may agree; and
                          (ii) nothing in this subparagraph 
                        affects (as in existence on the date of 
                        enactment of this section) any 
                        contract, law (including regulations) 
                        relating to repayment costs, water 
                        right, or Yakama Nation treaty right.
    (d) Federal Cost-Share.--
          (1) In general.--The Federal cost-share of a project 
        carried out under this section shall be determined in 
        accordance with the applicable laws (including 
        regulations) and policies of the Bureau of Reclamation.
          (2) Initial phase.--The Federal cost-share for the 
        initial development phase of the Integrated Plan shall 
        not exceed 50 percent of the total cost of the initial 
        development phase.
          (3) State and other contributions.--The Secretary may 
        accept as part of the non-Federal cost-share of a 
        project carried out under this section, and expend as 
        if appropriated, any contribution (including in-kind 
        services) by the State of Washington or any other 
        individual or entity that the Secretary determines will 
        enhance the conduct and completion of the project.
          (4) Limitation on use of other federal funds.--Except 
        as otherwise provided in this title, other Federal 
        funds may not be used to provide the non-Federal cost-
        share of a project carried out under this section.
    (e) Savings and Contingencies.--Nothing in this section 
shall--
          (1) be a new or supplemental benefit for purposes of 
        the Reclamation Reform Act of 1982 (43 U.S.C. 390aa et 
        seq.);
          (2) affect any contract in existence on the date of 
        enactment of the Yakima River Basin Water Enhancement 
        Project Phase III Act of 2015 that was executed 
        pursuant to the reclamation laws;
          (3) affect any contract or agreement between the 
        Bureau of Indian Affairs and the Bureau of Reclamation;
          (4) affect, waive, abrogate, diminish, define, or 
        interpret the treaty between the Yakama Nation and the 
        United States; or
          (5) constrain the continued authority of the 
        Secretary to provide fish passage in the Yakima Basin 
        in accordance with the Hoover Power Plant Act of 1984 
        (43 U.S.C 619 et seq.).

SEC. 1214. OPERATIONAL CONTROL OF WATER SUPPLIES.

    The Secretary shall retain authority and discretion over 
the management of project supplies to optimize operational use 
and flexibility to ensure compliance with all applicable 
Federal and State laws, treaty rights of the Yakama Nation, and 
legal obligations, including those contained in this Act. That 
authority and discretion includes the ability of the United 
States to store, deliver, conserve, and reuse water supplies 
deriving from projects authorized under this title.

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