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[House Report 109-636]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-636

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

 
             OREGON WATER RESOURCES MANAGEMENT ACT OF 2006

                                _______
                                

 September 6, 2006.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Pombo, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 5079]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 5079) to provide for the modification of an amendatory 
repayment contract between the Secretary of the Interior and 
the North Unit Irrigation District, and for other purposes, 
having considered the same, report favorably thereon with 
amendment and recommend that the bill as amended do pass.
  The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Oregon Water Resources Management Act 
of 2006''.

SEC. 2. EXTENSION OF PARTICIPATION OF BUREAU OF RECLAMATION IN 
                    DESCHUTES RIVER CONSERVANCY.

  Section 301 of the Oregon Resource Conservation Act of 1996 (division 
B of Public Law 104-208; 110 Stat. 3009-534) is amended--
          (1) in subsection (a)(1), by striking ``Deschutes River Basin 
        Working Group'' and inserting ``Deschutes River Conservancy 
        Working Group'';
          (2) by amending the text of subsection (a)(1)(B) to read as 
        follows: ``4 representatives of private interests including two 
        from irrigated agriculture who actively farm more than 100 
        acres of irrigated land and are not irrigation district 
        managers and two from the environmental community;'';
          (3) in subsection (b)(3), by inserting before the final 
        period the following: ``, and up to a total amount of 
        $2,000,000 during each of fiscal years 2006 through 2015''; and
          (4) in subsection (h), by inserting before the period at the 
        end the following: ``, and $2,000,000 for each of fiscal years 
        2006 through 2015''.

SEC. 3. WALLOWA LAKE DAM REHABILITATION ACT.

  (a) Definitions.--In this section, the following definitions apply:
          (1) Associated ditch companies, incorporated.--The term 
        ``Associated Ditch Companies, Incorporated'' means the 
        nonprofit corporation established under the laws of the State 
        of Oregon that operates Wallowa Lake Dam.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior, acting through the Commissioner of Reclamation.
          (3) Wallowa lake dam rehabilitation program.--The term 
        ``Wallowa Lake Dam Rehabilitation Program'' means the program 
        for the rehabilitation of the Wallowa Lake Dam in Oregon, as 
        contained in the engineering document titled, ``Phase I Dam 
        Assessment and Preliminary Engineering Design'', dated December 
        2002, and on file with the Bureau of Reclamation.
  (b) Authorization to Participate in Program.--
          (1) Grants and cooperative agreements.--The Secretary may 
        provide grants to, or enter into cooperative or other 
        agreements with, tribal, State, and local governmental entities 
        and the Associated Ditch Companies, Incorporated, to plan, 
        design, and construct facilities needed to implement the 
        Wallowa Lake Dam Rehabilitation Program.
          (2) Conditions.--As a condition of providing funds under 
        paragraph (1), the Secretary shall ensure that--
                  (A) the Wallowa Lake Dam Rehabilitation Program and 
                activities under this section meet the standards of the 
                dam safety program of the State of Oregon;
                  (B) the Associated Ditch Companies, Incorporated, 
                agrees to assume liability for any work performed, or 
                supervised, with Federal funds provided to it under 
                this section; and
                  (C) the United States shall not be liable for damages 
                of any kind arising out of any act, omission, or 
                occurrence relating to a facility rehabilitated or 
                constructed with Federal funds provided under this 
                section, both while and after activities are conducted 
                using Federal funds provided under this section.
          (3) Cost sharing.--
                  (A) In general.--The Federal share of the costs of 
                activities authorized under this section shall not 
                exceed 50 percent.
                  (B) Exclusions from federal share.--There shall not 
                be credited against the Federal share of such costs--
                          (i) any expenditure by the Bonneville Power 
                        Administration in the Wallowa River watershed; 
                        and
                          (ii) expenditures made by individual 
                        agricultural producers in any Federal commodity 
                        or conservation program.
          (4) Compliance with state law.--The Secretary, in carrying 
        out this section, shall comply with applicable Oregon State 
        water law.
          (5) Prohibition on holding title.--The Federal Government 
        shall not hold title to any facility rehabilitated or 
        constructed under this section.
          (6) Prohibition on operation and maintenance.--The Federal 
        Government shall not be responsible for the operation and 
        maintenance of any facility constructed or rehabilitated under 
        this section.
  (c) Relationship to Other Law.--Activities funded under this section 
shall not be considered a supplemental or additional benefit under 
Federal reclamation law (the Act of June 17, 1902 (32 Stat. 388, 
chapter 1093), and Acts supplemental to and amendatory of that Act (43 
U.S.C. 371 et seq.)).
  (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to pay the Federal share of the costs of 
activities authorized under this section, $6,000,000.
  (e) Sunset.--The authority of the Secretary to carry out any 
provisions of this section shall terminate 10 years after the date of 
the enactment of this section.

SEC. 4. LITTLE BUTTE/BEAR CREEK SUBBASINS, OREGON, WATER RESOURCE 
                    STUDY.

  (a) Authorization.--The Secretary of the Interior, acting through the 
Bureau of Reclamation, may participate in the Water for Irrigation, 
Streams and the Economy Project water management feasibility study and 
environmental impact statement in accordance with the ``Memorandum of 
Agreement Between City of Medford and Bureau of Reclamation for the 
Water for Irrigation, Streams, and the Economy Project'', dated July 2, 
2004.
  (b) Authorization of Appropriations.--
          (1) In general.--There is authorized to be appropriated to 
        the Bureau of Reclamation $500,000 to carry out activities 
        under this section.
          (2) Non-federal share.--
                  (A) In general.--The non-Federal share shall be 50 
                percent of the total costs of the Bureau of Reclamation 
                in carrying out subsection (a).
                  (B) Form.--The non-Federal share required under 
                subparagraph (A) may be in the form of any in-kind 
                services that the Secretary of the Interior determines 
                would contribute substantially toward the conduct and 
                completion of the study and environmental impact 
                statement required under subsection (a).
  (c) Sunset.--The authority of the Secretary to carry out any 
provisions of this section shall terminate 10 years after the date of 
the enactment of this section.

SEC. 5. NORTH UNIT IRRIGATION DISTRICT.

  (a) Short Title.--This section may be cited as the ``North Unit 
Irrigation District Act of 2006''.
  (b) Amendment.--The Act of August 10, 1954 (68 Stat. 679, chapter 
663), is amended--
          (1) in the first section--
                  (A) by inserting ``(referred to in this Act as the 
                `District')'' after ``irrigation district''; and
                  (B) by inserting ``(referred to in this Act as the 
                `Contract')'' after ``1953''; and
          (2) by adding at the end the following:

``SEC. 3. ADDITIONAL TERMS.

  ``On approval of the District directors and notwithstanding project 
authorizing legislation to the contrary, the Contract is modified, 
without further action by the Secretary of the Interior, to include the 
following modifications:
          ``(1) In Article 8(a) of the Contract, by deleting `a maximum 
        of 50,000' and inserting `approximately 59,000' after 
        `irrigation service to'.
          ``(2) In Article 11(a) of the Contract, by deleting `The 
        classified irrigable lands within the project comprise 
        49,817.75 irrigable acres, of which 35,773.75 acres are in 
        Class A and 14,044.40 in Class B. These lands and the standards 
        upon which the classification was made are described in the 
        document entitled ``Land Classification, North Unit, Deschutes 
        Project, 1953'' which is on file in the office of the Regional 
        Director, Bureau of Reclamation, Boise, Idaho, and in the 
        office of the District' and inserting `The classified irrigable 
        land within the project comprises 58,902.8 irrigable acres, all 
        of which are authorized to receive irrigation water pursuant to 
        water rights issued by the State of Oregon and have in the past 
        received water pursuant to such State water rights.'.
          ``(3) In Article 11(c) of the Contract, by deleting `, with 
        the approval of the Secretary,' after `District may', by 
        deleting `the 49,817.75 acre maximum limit on the irrigable 
        area is not exceeded' and inserting `irrigation service is 
        provided to no more than approximately 59,000 acres and no 
        amendment to the District boundary is required' after `time so 
        long as'.
          ``(4) In Article 11(d) of the Contract, by inserting `, and 
        may further be used for instream purposes, including fish or 
        wildlife purposes, to the extent that such use is required by 
        Oregon State law in order for the District to engage in, or 
        take advantage of, conserved water projects as authorized by 
        Oregon State law' after `herein provided'.
          ``(5) By adding at the end of Article 12(d) the following: 
        `(e) Notwithstanding the above subsections of this Article or 
        Article 13 below, beginning with the irrigation season 
        immediately following the date of enactment of the North Unit 
        Irrigation District Act of 2006, the annual installment for 
        each year, for the District, under the Contract, on account of 
        the District's construction charge obligation, shall be a fixed 
        and equal annual amount payable on June 30 the year following 
        the year for which it is applicable, such that the District's 
        total construction charge obligation shall be completely paid 
        by June 30, 2044.'.
          ``(6) In Article 14(a) of the Contract, by inserting `and for 
        instream purposes, including fish or wildlife purposes, to the 
        extent that such use is required by Oregon State law in order 
        for the District to engage in, or take advantage of, conserved 
        water projects as authorized by Oregon State law,' after `and 
        incidental stock and domestic uses', by inserting `and for 
        instream purposes as described above,' after `irrigation, stock 
        and domestic uses', and by inserting `, including natural flow 
        rights out of the Crooked River held by the District' after 
        `irrigation system'.
          ``(7) In Article 29(a) of the Contract, by inserting `and for 
        instream purposes, including fish or wildlife purposes, to the 
        extent that such use is required by Oregon State law in order 
        for the District to engage in, or take advantage of, conserved 
        water projects as authorized by Oregon State law' after 
        `provided in article 11'.
          ``(8) In Article 34 of the Contract, by deleting `The 
        District, after the election and upon the execution of this 
        contract, shall promptly secure final decree of the proper 
        State court approving and confirming this contract and 
        decreeing and adjudging it to be a lawful, valid, and binding 
        general obligation of the District. The District shall furnish 
        to the United States certified copies of such decrees and of 
        all pertinent supporting records.' after `for that purpose.'.

``SEC. 4. FUTURE AUTHORITY TO RENEGOTIATE.

  ``The Secretary of the Interior (acting through the Commissioner of 
Reclamation) may in the future renegotiate with the District such terms 
of the Contract as the District directors determine to be necessary, 
only upon the written request of the District directors and the consent 
of the Commissioner of Reclamation.''.

  Amend the title so as to read:

      A bill to update the management of Oregon water resources, and 
for other purposes.

                          Purpose of the Bill

    The purpose of H.R. 5079, as ordered reported, is to update 
the management of Oregon water resources, and for other 
purposes.

                  Background and Need for Legislation

    Originally formed in 1916, the North Unit Irrigation 
District is one of seven irrigation districts located in 
central Oregon and provides irrigated water to approximately 
59,000 acres of farmland. Of that farmland, the District 
provides irrigation water to 49,900 acres, associated with the 
Bureau of Reclamation's Deschutes Project, while the remaining 
9,000 acres are irrigated using water from the privately 
developed Crooked River diversion.
    In 1954, Congress authorized through Public Law 83-573 
construction of the Haystack Dam and approved a contract 
between the Bureau of Reclamation and the District. That 
contract established, among other things, project costs, 
repayment terms, operations and maintenance charges, and the 
maximum allowable acreage that could be irrigated from federal 
project water. Recent changes in State law have caused the need 
to amend the contract.
    Specifically, Oregon law requires irrigation districts that 
want to participate in a publicly financed ``conserved water 
project'' to dedicate a portion of conserved water to instream 
flows for fish, wildlife or other purposes. The District would 
like to consider participation in a publicly financed 
conservation water project, but the contract terms limit water 
use from the federal project to irrigation purposes only. The 
legislation allows the District to comply with State law if it 
chooses to participate in a conserved water project.
    The amended contract language would allow the District to 
deliver Deschutes Project water to families who are currently 
irrigating 9,000 acres of land in the District with Crooked 
River water. All of these lands are within the District's 
present boundary, have been irrigated for decades, and have 
appurtenant water rights issued by the State. Using Deschutes 
Project water on these lands will allow the District to divert 
less Crooked River water and leave more water instream. For the 
District to shift its reliance to Deschutes Project water 
supplies, it must first conserve the necessary water or secure 
conserved water from another water district.
    The District states that this legislation will enable it to 
conserve water, to return a portion of the conserved water to 
the Deschutes River, and ultimately to use less water from the 
Crooked River, thereby benefitting fish and wildlife. The 
legislation is specific to the District, and it would not 
affect any other district in the Deschutes Project, its 
patrons, or any others in Oregon. The Department of the 
Interior has formally acknowledged the District's legal 
situation, that Congressional authorization is needed, and that 
it will work cooperatively with the District in resolving these 
problems.
    As ordered reported, the bill also includes various other 
water projects affecting the State of Oregon. These are 
described more specifically below.

                            Committee Action

    H.R. 5079 was introduced on April 4, 2006, by Congressman 
Greg Walden (R-OR). The bill was referred to the Committee on 
Resources, and within the Committee to the Subcommittee on 
Water and Power. On May 10, 2006, the Subcommittee held a 
hearing on the bill. On June 21, 2006, the Full Resources 
Committee met to consider the bill. The Subcommittee on Water 
and Power was discharged from further consideration of the bill 
by unanimous consent. Congressman George Radanovich (R-CA) 
offered an amendment in the nature of a substitute to 
incorporate legislative language from H.R. 5019, S. 166, and S. 
251 into H.R. 5079. The amendment was adopted by unanimous 
consent. The bill, as amended, was then ordered favorably 
reported to the House of Representatives by unanimous consent.

                      Section-by-Section Analysis

Section 1. Short title

    This section cites the short title of the bill as the 
``Oregon Water Resources Management Act of 2006''.

Section 2. Extension of participation of Bureau of Reclamation in 
        Deschutes River Conservancy

    This section amends Section 301 of the Oregon Resource 
Conservation Act of 1996 (division B of Public Law 104-208). It 
replaces references to the ``Deschutes River Basin Working 
Group'' with the ``Deschutes River Conservancy Working Group,'' 
and redesignates the background requirements for two 
representatives nominated to the Working Group. Finally it 
increases authorization of appropriations to $2 million per 
year, and extends that authorization until fiscal year 2015. 
This language is taken from S. 166.

Section 3. Wallowa Lake Dam Rehabilitation Act

    This section authorizes the Bureau of Reclamation to 
participate with the Associated Ditch Companies in the 
planning, design, and construction of facilities needed to 
implement the Wallowa Lake Dam Rehabilitation Program. The 
federal share of costs will not exceed 50%, and no funds will 
be used for facility operations and maintenance. There is 
authorized to be appropriated $6 million, and the authority to 
carry out any provisions of this section shall terminate in 10 
years. This language is taken from H.R. 5019.

Section 4. Little Butte/Bear Creek Subbasins, Oregon water resource 
        study

    This section authorizes the Bureau of Reclamation to 
participate, with the City of Medford, Oregon, in the Water for 
Irrigation, Streams and the Economy Project water management 
feasibility study. There is authorized to be appropriated 
$500,000 to carry out this study and it includes a 50% federal 
cost share. The authority to carry out any provisions of this 
section shall terminate in 10 years. This language is taken 
from S. 251.

Section 5. North Unit Irrigation District

    This section amends a repayment contract (#14-06-W-71), 
authorized in Public Law 83-573, between the Bureau of 
Reclamation and the North Unit Irrigation District in Oregon. 
As amended, it changes the irrigated land available to receive 
water from the Bureau of Reclamation's Deschutes Project from 
50,000 acres to 59,000 acres. It also changes the repayment 
terms from a variable rate to a fixed rate. Additionally, it 
authorizes the Secretary of the Interior to renegotiate 
contract terms upon the written request of the Irrigation 
District.

            Committee Oversight Findings and Recommendations

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

                   Constitutional Authority Statement

    Article I, section 8, clause 3 of the Constitution of the 
United States grants Congress the authority to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures. According to the Congressional 
Budget Office, enacting this bill will increase offsetting 
receipts by less than $100,000 a year.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill, as ordered reported, is to update the 
management of Oregon water resources, and for other purposes.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 5079--Oregon Water Resources Management Act of 2006

    Summary: H.R. 5079 would authorize the appropriation of 
$16.5 million over the 2007-2011 period, and another $8 million 
over the 2012-2015 period for river restoration and water 
management projects in Oregon. Assuming appropriation of the 
authorized amounts, CBO estimates that implementing H.R. 5079 
would cost $2 million in 2007 and $14 million over the 2007-
2011 period (the remaining funds would be spent after 2011).
    The bill also would amend certain provisions of a contract 
between the Department of the Interior and Oregon's North Unit 
Irrigation District. Enacting this section would increase 
federal collections by less than $100,000 a year. (Such 
collections are recorded as offsetting receipts, a credit 
against direct spending.) Enacting this bill would not affect 
revenues.
    H.R. 5079 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA); 
the bill would benefit state, local, and tribal governments and 
any costs to those governments would be incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5079 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2007     2008     2009     2010     2011
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Deschutes River Restoration Projects:
    Authorization Level............................................        2        2        2        2        2
    Estimated Outlays..............................................        *        1        2        2        2
Wallowa Lake Dam Rehabilitation:
    Estimated Authorization Level..................................        2        2        2        0        0
    Estimated Outlays..............................................        1        2        2        1        0
Water Management Study:
    Authorization Level............................................      0.5        0        0        0        0
    Estimated Outlays..............................................      0.5        0        0        0        0
    Total Changes:
        Estimated Authorization Level..............................        5        4        4        2        2
        Estimated Outlays..........................................        2        3        4        3        2
----------------------------------------------------------------------------------------------------------------
NOTE: * = less than $500,000.

Basis of estimate

    For this estimate, CBO assumes that H.R. 5097 will be 
enacted near the start of fiscal year 2007 and that amounts 
specified will be appropriated beginning in 2007. Estimates of 
outlays are based on historical spending patterns for similar 
Bureau of Reclamation activities.
            Spending subject to appropriation
    H.R. 5079 would authorize the appropriation of $16.5 
million over the 2007-2011 period, and an additional $8 million 
to be authorized over the 2012-2015 period. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing H.R. 5079 would cost $2 million in 2007 and $14 
million over the 2007-2011 period (additional amounts would be 
spent after 2011). As described below, these amounts would be 
primarily used for the Bureau of Reclamation restoration and 
water management activities in Oregon.
    Deschutes River Restoration Projects. Section 2 would 
authorize the appropriation of $12 million over the 2006-2011 
period and $8 million over the 2012-2015 period for ecosystem 
projects administered by the bureau in the Deschutes River 
basin region. Assuming appropriation of the authorized amounts, 
CBO estimates that the project would cost $7 million over the 
2007-2011 period, with the remaining funds to be spent after 
2011.
    Wallowa Lake Dam Rehabilitation. Section 3 would authorize 
the appropriation of $6 million for the bureau's share of the 
cost to participate in the Wallowa Lake Dam rehabilitation. CBO 
expects that $2 million would be provided each year over the 
2007-2009 period. Appropriation of the authorized amount would 
result in discretionary spending of $6 million over the 2007-
2011 period.
    Water Management Study. Section 4 would authorize the 
appropriation of $500,000 to the bureau to participate in a 
water management study of the Little Butte and Bear Creek 
watersheds in Medford, Oregon. The study would identify ways to 
meet future water supply needs and to improve water quality, 
conservation, and storage measures. Assuming appropriation of 
the authorized amounts, the study would cost $500,000 in 2007.
            Direct spending
    H.R. 5079 would amend the North Unit's Irrigation District 
repayment contract with the Department of the Interior. Under 
current law, payments would be completed within the next 35 to 
45 years. H.R. 5079 would amend the terms of the district's 
contract with the department by setting a fixed annual payment, 
and require the district's total obligation to be paid to the 
department by 2044. CBO estimates that enacting H.R. 5079 would 
increase offsetting receipts by less than $100,000 a year.
    Intergovernmental and private-sector impact: H.R. 5079 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Enacting this bill would benefit state, local, 
and tribal governments by authorizing funds for restoration 
projects; any costs that they might incur would result from 
complying with conditions for receiving federal assistance.
    Previous CBO estimates: CBO transmitted three cost 
estimates for bills that include similar provisions to those 
contained in H.R. 5079. On February 14, 2005, CBO transmitted a 
cost estimate for S. 231, the Wallowa Lake Dam Rehabilitation 
and Water Management Act of 2005, as ordered reported by the 
Senate Committee on Energy and Natural Resources on February 9, 
2005. Both S. 231 and H.R. 5079 authorize appropriations for 
Wallowa Lake Dam rehabilitation, but H.R. 5079 limits the 
authorization of appropriations to phase I projects. H.R. 5079 
would not result in an increase in direct spending by the 
Bonneville Power Administration as CBO estimated under S. 231.
    On October 7, 2005, CBO transmitted a cost estimate for S. 
166, the Deschutes River Conservancy Reauthorization Act of 
2005, as ordered reported by the Senate Committee on Energy and 
Natural Resources on September 28, 2005. Both S. 166 and H.R. 
5097 would authorize appropriations to restore the Deschutes 
River basin. The differences in the cost estimates for those 
provisions are due to different assumed dates of enactment.
    On October 7, 2005, CBO transmitted a cost estimate for S. 
251, the Little Butte/Bear Creek Subbasins Water Feasibility 
Act, as ordered reported by the Senate Committee on Energy and 
Natural Resources on September 28, 2005. Both S. 251 and H.R. 
5079 would authorize the appropriation of $0.5 million for a 
water management feasibility study.
    Estimate prepared by: Federal costs: Julie Middleton; 
Impact on state, local, and tribal governments: Lisa Ramirez-
Branum; Impact on the private sector: Amy Petz.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (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):

      SECTION 301 OF THE OREGON RESOURCE CONSERVATION ACT OF 1996

SEC. 301. DESCHUTES BASIN ECOSYSTEM RESTORATION PROJECTS.

      (a) Definitions.--In this section:
          (1) Working group.--The term ``Working Group'' means 
        the [Deschutes River Basin Working Group] Deschutes 
        River Conservancy Working Group established before the 
        date of enactment of this title, consisting of members 
        nominated by their represented groups, including:
                  (A) * * *
                  (B) [4 representatives of private interests 
                including two each from irrigated agriculture 
                and the environmental community;] 4 
                representatives of private interests including 
                two from irrigated agriculture who actively 
                farm more than 100 acres of irrigated land and 
                are not irrigation district managers and two 
                from the environmental community;

           *       *       *       *       *       *       *

      (b) In General.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) The Bureau of Reclamation shall pay from funds 
        authorized under subsection (h) of this title up to 50 
        percent of the cost of performing any project proposed 
        by the Working Group and approved by the Secretary, up 
        to a total amount of $1,000,000 during each of the 
        fiscal years 1997 through 2001, and up to a total 
        amount of $2,000,000 during each of fiscal years 2002 
        through 2006, and up to a total amount of $2,000,000 
        during each of fiscal years 2006 through 2015.

           *       *       *       *       *       *       *

      (h) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this title 
$1,000,000 for each of fiscal years 1997 through 2001 and 
$2,000,000 for each of fiscal years 2002 through 2006, and 
$2,000,000 for each of fiscal years 2006 through 2015.
                              ----------                              

                         ACT OF AUGUST 10, 1954

AN ACT To approve an amendatory repayment contract negotiated with the 
 North Unit irrigation district, to authorize construction of Haystack 
 Reservoir on the Deschutes Federal reclamation project, and for other 
                               purposes.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That the 
contract with the North Unit irrigation district (referred to 
in this Act as the ``District'') in form substantially similar 
to that approved by the district directors on July 31, 1953 
(referred to in this Act as the ``Contract''), which has been 
negotiated by the Secretary of the Interior pursuant to section 
7, subsection (a), of the Reclamation Project Act of 1939 (53 
Stat. 1187, 1192; 43 U.S.C., 1946 edition, sec. 485), is 
approved and the Secretary of the Interior is authorized to 
execute it on behalf of the United States.

           *       *       *       *       *       *       *

SEC. 3. ADDITIONAL TERMS.

  On approval of the District directors and notwithstanding 
project authorizing legislation to the contrary, the Contract 
is modified, without further action by the Secretary of the 
Interior, to include the following modifications:
          (1) In Article 8(a) of the Contract, by deleting ``a 
        maximum of 50,000'' and inserting ``approximately 
        59,000'' after ``irrigation service to''.
          (2) In Article 11(a) of the Contract, by deleting 
        ``The classified irrigable lands within the project 
        comprise 49,817.75 irrigable acres, of which 35,773.75 
        acres are in Class A and 14,044.40 in Class B. These 
        lands and the standards upon which the classification 
        was made are described in the document entitled `Land 
        Classification, North Unit, Deschutes Project, 1953' 
        which is on file in the office of the Regional 
        Director, Bureau of Reclamation, Boise, Idaho, and in 
        the office of the District'' and inserting ``The 
        classified irrigable land within the project comprises 
        58,902.8 irrigable acres, all of which are authorized 
        to receive irrigation water pursuant to water rights 
        issued by the State of Oregon and have in the past 
        received water pursuant to such State water rights.''.
          (3) In Article 11(c) of the Contract, by deleting ``, 
        with the approval of the Secretary,'' after ``District 
        may'', by deleting ``the 49,817.75 acre maximum limit 
        on the irrigable area is not exceeded'' and inserting 
        ``irrigation service is provided to no more than 
        approximately 59,000 acres and no amendment to the 
        District boundary is required'' after ``time so long 
        as''.
          (4) In Article 11(d) of the Contract, by inserting 
        ``, and may further be used for instream purposes, 
        including fish or wildlife purposes, to the extent that 
        such use is required by Oregon State law in order for 
        the District to engage in, or take advantage of, 
        conserved water projects as authorized by Oregon State 
        law'' after ``herein provided''.
          (5) By adding at the end of Article 12(d) the 
        following: ``(e) Notwithstanding the above subsections 
        of this Article or Article 13 below, beginning with the 
        irrigation season immediately following the date of 
        enactment of the North Unit Irrigation District Act of 
        2006, the annual installment for each year, for the 
        District, under the Contract, on account of the 
        District's construction charge obligation, shall be a 
        fixed and equal annual amount payable on June 30 the 
        year following the year for which it is applicable, 
        such that the District's total construction charge 
        obligation shall be completely paid by June 30, 
        2044.''.
          (6) In Article 14(a) of the Contract, by inserting 
        ``and for instream purposes, including fish or wildlife 
        purposes, to the extent that such use is required by 
        Oregon State law in order for the District to engage 
        in, or take advantage of, conserved water projects as 
        authorized by Oregon State law,'' after ``and 
        incidental stock and domestic uses'', by inserting 
        ``and for instream purposes as described above,'' after 
        ``irrigation, stock and domestic uses'', and by 
        inserting ``, including natural flow rights out of the 
        Crooked River held by the District'' after ``irrigation 
        system''.
          (7) In Article 29(a) of the Contract, by inserting 
        ``and for instream purposes, including fish or wildlife 
        purposes, to the extent that such use is required by 
        Oregon State law in order for the District to engage 
        in, or take advantage of, conserved water projects as 
        authorized by Oregon State law'' after ``provided in 
        article 11''.
          (8) In Article 34 of the Contract, by deleting ``The 
        District, after the election and upon the execution of 
        this contract, shall promptly secure final decree of 
        the proper State court approving and confirming this 
        contract and decreeing and adjudging it to be a lawful, 
        valid, and binding general obligation of the District. 
        The District shall furnish to the United States 
        certified copies of such decrees and of all pertinent 
        supporting records.'' after ``for that purpose.''.

SEC. 4. FUTURE AUTHORITY TO RENEGOTIATE.

  The Secretary of the Interior (acting through the 
Commissioner of Reclamation) may in the future renegotiate with 
the District such terms of the Contract as the District 
directors determine to be necessary, only upon the written 
request of the District directors and the consent of the 
Commissioner of Reclamation.

                                  
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