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[House Report 112-438]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-438

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

 
               CENTRAL OREGON JOBS AND WATER SECURITY ACT

                                _______
                                

 April 16, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2060]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 2060) to amend the Wild and Scenic Rivers Act to 
adjust the Crooked River boundary, to provide water certainty 
for the City of Prineville, Oregon, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Central Oregon Jobs and Water Security 
Act''.

SEC. 2. WILD AND SCENIC RIVER; CROOKED, OREGON.

  Section 3(a)(72) of the Wild and Scenic Rivers Act (16 U.S.C. 
1274(a)(72)) is amended as follows:
          (1) By striking ``15-mile'' and inserting ``14.75-mile''.
          (2) In subparagraph (B)--
                  (A) by striking ``8-mile'' and all that follows 
                through ``Bowman Dam'' and inserting ``7.75-mile 
                segment from a point one-quarter mile downstream from 
                the toe of Bowman Dam''; and
                  (B) by adding at the end the following: ``The 
                developer for any hydropower development, including 
                turbines and appurtenant facilities, at Bowman Dam, in 
                consultation with the Bureau of Land Management, shall 
                analyze any impacts to the Outstandingly Remarkable 
                Values of the Wild and Scenic River that may be caused 
                by such development, including the future need to 
                undertake routine and emergency repairs, and shall 
                propose mitigation for any impacts as part of any 
                license application submitted to the Federal Energy 
                Regulatory Commission.''.

SEC. 3. CITY OF PRINEVILLE WATER SUPPLY.

  Section 4 of the Act of August 6, 1956 (70 Stat. 1058), (as amended 
by the Acts of September 14, 1959 (73 Stat. 554), and September 18, 
1964 (78 Stat. 954)) is further amended as follows:
          (1) By striking ``ten cubic feet'' the first place it appears 
        and inserting ``17 cubic feet''.
          (2) By striking ``during those months when there is no other 
        discharge therefrom, but this release may be reduced for brief 
        temporary periods by the Secretary whenever he may find that 
        release of the full ten cubic feet per second is harmful to the 
        primary purpose of the project''.
          (3) By adding at the end the following: ``Without further 
        action by the Secretary, and as determined necessary for any 
        given year by the City of Prineville, up to seven of the 17 
        cubic feet per second minimum release shall also serve as 
        mitigation for City of Prineville groundwater pumping, pursuant 
        to and in a manner consistent with Oregon State law, including 
        any shaping of the release of the up to seven cubic feet per 
        second to coincide with City of Prineville groundwater pumping 
        as may be required by the State of Oregon. As such, the 
        Secretary is authorized to make applications to the State of 
        Oregon in conjunction with the City to protect these supplies 
        instream. The City shall make payment to the Secretary for that 
        portion of the minimum release that actually serves as 
        mitigation pursuant to Oregon State law for the City in any 
        given year, with the payment for any given year equal to the 
        amount of mitigation in acre feet required to offset actual 
        City groundwater pumping for that year in accordance with 
        Reclamation `Water and Related Contract and Repayment 
        Principles and Requirements', Reclamation Manual Directives and 
        Standards PEC 05-01, dated 09/12/2006, and guided by `Economic 
        and Environmental Principles and Guidelines for Water and 
        Related Land Resources Implementation Studies', dated March 10, 
        1983. The Secretary is authorized to contract exclusively with 
        the City for additional amounts in the future at the request of 
        the City.''.

SEC. 4. FIRST FILL PROTECTION.

  The Act of August 6, 1956 (70 Stat. 1058), as amended by the Acts of 
September 14, 1959 (73 Stat. 554), and September 18, 1964 (78 Stat. 
954), is further amended by adding at the end the following:
  ``Sec. 6.  Other than the 17 cubic feet per second release provided 
for in section 4, and subject to compliance with the Army Corps of 
Engineers' flood curve requirements, the Secretary shall, on a `first 
fill' priority basis, store in and release from Prineville Reservoir, 
whether from carryover, infill, or a combination thereof, the 
following:
          ``(1) 68,273 acre feet of water annually to fulfill all 16 
        Bureau of Reclamation contracts existing as of January 1, 2011, 
        and up to 2,740 acre feet of water annually to supply the McKay 
        Creek lands as provided for in section 5 of this Act.
          ``(2) Not more than 10,000 acre feet of water annually, to be 
        made available to the North Unit Irrigation District pursuant 
        to a Temporary Water Service Contract, upon the request of the 
        North Unit Irrigation District, consistent with the same terms 
        and conditions as prior such contracts between the District and 
        the Bureau of Reclamation.
  ``Sec. 7.  Except as otherwise provided in this Act, nothing in this 
Act--
          ``(1) modifies contractual rights that may exist between 
        contractors and the United States under Reclamation contracts;
          ``(2) amends or reopens contracts referred to in paragraph 
        (1); or
          ``(3) modifies any rights, obligations, or requirements that 
        may be provided or governed by Oregon State law.''.

SEC. 5. OCHOCO IRRIGATION DISTRICT.

  (a) Early Repayment.--Notwithstanding section 213 of the Reclamation 
Reform Act of 1982 (43 U.S.C. 390mm), any landowner within Ochoco 
Irrigation District in Oregon, may repay, at any time, the construction 
costs of the project facilities allocated to that landowner's lands 
within the district. Upon discharge, in full, of the obligation for 
repayment of the construction costs allocated to all lands the 
landowner owns in the district, those lands shall not be subject to the 
ownership and full-cost pricing limitations of the Act of June 17, 1902 
(43 U.S.C. 371 et seq.), and Acts supplemental to and amendatory of 
that Act, including the Reclamation Reform Act of 1982 (43 U.S.C. 390aa 
et seq.).
  (b) Certification.--Upon the request of a landowner who has repaid, 
in full, the construction costs of the project facilities allocated to 
that landowner's lands owned within the district, the Secretary of the 
Interior shall provide the certification provided for in subsection 
(b)(1) of section 213 of the Reclamation Reform Act of 1982 (43 U.S.C. 
390mm(b)(1)).
  (c) Contract Amendment.--On approval of the district directors and 
notwithstanding project authorizing legislation to the contrary, the 
district's reclamation contracts are modified, without further action 
by the Secretary of the Interior, to--
          (1) authorize the use of water for instream purposes, 
        including fish or wildlife purposes, in order for the district 
        to engage in, or take advantage of, conserved water projects 
        and temporary instream leasing as authorized by Oregon State 
        law;
          (2) include within the district boundary approximately 2,742 
        acres in the vicinity of McKay Creek, resulting in a total of 
        approximately 44,937 acres within the district boundary;
          (3) classify as irrigable approximately 685 acres within the 
        approximately 2,742 acres of included lands in the vicinity of 
        McKay Creek, where the approximately 685 acres 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; and
          (4) provide the district with stored water from Prineville 
        Reservoir for purposes of supplying up to the approximately 685 
        acres of lands added within the district boundary and 
        classified as irrigable under paragraphs (2) and (3), with such 
        stored water to be supplied on an acre-per-acre basis 
        contingent on the transfer of existing appurtenant McKay Creek 
        water rights to instream use and the State's issuance of water 
        rights for the use of stored water.
  (d) Limitation.--Except as otherwise provided in subsections (a) and 
(c), nothing in this section shall be construed to--
          (1) modify contractual rights that may exist between the 
        district and the United States under the district's Reclamation 
        contracts;
          (2) amend or reopen the contracts referred to in paragraph 
        (1); or
          (3) modify any rights, obligations or relationships that may 
        exist between the district and its landowners as may be 
        provided or governed by Oregon State law.

                          Purpose of the Bill

    The purpose of H.R. 2060, as ordered reported, is to amend 
the Wild and Scenic Rivers Act to adjust the Crooked River 
boundary, and to provide water certainty for the City of 
Prineville, Oregon.

                  Background and Need for Legislation

    The City of Prineville is located in Crook County, Oregon, 
and has had the State's highest unemployment rates (ranging 
from 15%-20%) for several consecutive years due to loss of 
traditional logging and natural resources jobs. The recent 
construction of Facebook's first custom-built data center 
within the City limits and the potential establishment of three 
other similar facilities could help reverse the economic 
situation. However, the lack of adequate water supplies could 
prevent this economic development.
    Near the City, the Crooked River flows as a tributary of 
the Deschutes River. Both rivers serve as a valuable water 
supply source for irrigated agriculture in central Oregon. In 
fact, seven irrigation districts rely on water from these two 
rivers. The Arthur R. Bowman Dam, a Bureau of Reclamation-owned 
project on the River, plays a pivotal role in delivering some 
of that water. It is an earthen structure about 20 miles 
upstream from Prineville. The Dam's congressionally authorized 
purposes include flood control and irrigation. Water releases 
from the Dam also provide water for a cold-water fishery. 
Although the Dam impounds 160,000 acre feet of water at full 
capacity, approximately 80,000 acre feet of this water are not 
contracted for specific uses. However, the Bureau of 
Reclamation annually releases some of the uncontracted water 
supplies for fish and wildlife purposes into the lower Crooked 
River and will continue to do so during good water years.
    Like much of the West, central Oregon has experienced 
controversies over the Endangered Species Act as part of the 
larger Columbia basin. As a way to protect irrigation districts 
in the local watershed and to reintroduce steelhead on an 
experimental basis, various parties at the governmental and 
non-governmental levels have worked on a collaborative basis. 
This legislation, as amended, seeks to continue that 
collaborative partnership through provisions that provide a 
long-term water supply for the area, generate clean and 
emissions-free hydropower and allocate more water for fisheries 
purposes at no cost to the American taxpayer.

                            Committee Action

    H.R. 2060 was introduced on May 31, 2011 by Congressman 
Greg Walden (R-OR). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water and Power and the Subcommittee on National Parks, 
Forests and Public Lands. On June 23, 2011, the Subcommittee on 
Water and Power held a hearing on the bill. On October 5, 2011, 
the Full Natural Resources Committee met to consider the bill. 
The Subcommittee on Water and Power and the Subcommittee on 
National Parks, Forests and Public Lands were discharged by 
unanimous consent. Congressman Tom McClintock (R-CA) offered en 
bloc amendment designated .068; the amendment was adopted by 
voice vote. The bill was then favorably reported, as amended, 
to the House of Representatives by voice vote.

                      Section-by-Section Analysis

Section 1. Short title

    This section designates the title of the bill as the 
``Central Oregon Jobs and Water Security Act.''

Section 2. Wild and Scenic River; Crooked, Oregon

    This section amends the Federal Wild and Scenic Rivers Act 
to re-designate the Wild and Scenic boundary of the Crooked 
River. Since the original congressional designation failed to 
specify the exact upper boundary line of the Crooked Wild and 
Scenic River, the Bureau of Land Management (BLM) established 
the upstream boundary at the crest of the Arthur R. Bowman Dam. 
Although BLM now states that this location was never intended 
to be the boundary, it has been unwilling to move the boundary 
at the administrative level. As such, this section moves the 
upper boundary line one quarter downstream of the Dam. This 
redesignation will allow up to six megawatts of hydropower 
development at the Dam. The section requires any future 
hydropower developer to analyze any related impacts to the 
river and propose mitigation for any impacts.

Section 3. City of Prineville water supply

    This section allows an additional annual release of 5,100 
acre feet (equivalent to seven cubic feet per second, year-
round) of currently un-allocated water from the Dam to serve as 
a state mitigation credit for groundwater pumping by the City 
of Prineville. Since the water released would not actually be 
withdrawn from the Crooked River, the increased flows would 
also benefit prime trout fishing habitat. The section also 
ensures that base ``fish'' flows authorized by Congress in 1956 
are permanent.
    As amended, this section requires the City of Prineville to 
pay the federal government for the amount of water that serves 
as mitigation under Oregon law. The provision references 
federal documents used in making the water rate calculations. 
The intent of this provision is to provide water supply 
certainty to the City at reasonable and predictable water rates 
while adhering to the longtime ``beneficiary pays'' policy. For 
that reason, the Committee is concerned that the Bureau of 
Reclamation (BOR) has offered widely conflicting accounts of 
how much the water would cost and believes that BOR has failed 
to offer transparent and certain information to the City. The 
Committee expects BOR to consult and communicate substantively 
with the City in this rate-setting effort and believes that a 
temporary contract is necessary while contract negotiations are 
under way. The Committee also believes that BOR's water supply 
contract with the City is merely a paper exercise with no 
environmental impact. The Administration, in testimony on the 
bill, indicated the release will not actually increase flows 
below the Dam due to current reservoir operational practice. 
Additionally, the release is not an extraordinary circumstance 
which causes a significant and adverse environmental effect. As 
such, the Committee expects BOR to determine this paperwork 
requirement as a Categorical Exclusion under the National 
Environmental Policy Act.

Section 4. First fill protection

    This section, as amended, ensures that existing water 
supply contracts held between various irrigation districts and 
the federal government are met prior to the use or release of 
stored water behind the Dam for any new or additional purposes. 
The provision also provides water for new lands identified as 
part of the McKay Creek exchange in Section 5. Nothing in this 
provision modifies existing contracts or any rights, 
obligations or requirements under Oregon law.

Section 5. Ochoco Irrigation District

    This section allows the nearby Ochoco Irrigation District 
to pre-pay its capital repayment contract with the federal 
government and requires the Secretary of the Interior to 
certify that such amounts have been fully repaid. The provision 
also provides a mechanism for an exchange of water and lands so 
that more water is used for fish restoration on McKay Creek. 
This section also amends the water contracts to enable the 
District to participate in ``Conserved Water Projects'' under 
Oregon law, if it so chooses, as a way to provide more water 
for the environment.

            Committee Oversight Findings and Recommendations

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

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(1) 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)(2)(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. 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. 2060--Central Oregon Jobs and Water Security Act

    H.R. 2060 would modify features of the Crooked River 
Project located in central Oregon, north of the City of 
Prineville, and prioritize the allocations of water from the 
project for different uses. Based on information from the 
Bureau of Reclamation, CBO estimates that enacting H.R. 2060 
would have an insignificant impact on direct spending; 
therefore, pay-as-you-go procedures apply. The legislation 
would not affect revenues.
    The main features of the Crooked River Project include 
Bowman Dam, Prineville Reservoir, and Ochoco Dam and Reservoir 
located in the Ochoco Irrigation District. Enacting two 
provisions of H.R. 2060 would have an insignificant impact on 
net direct spending over the next 10 years. Those provisions 
would:
     Require the city of Prineville to pay the Bureau 
of Reclamation for additional water to be released from the 
Prineville Reservoir. Based on information from the bureau, CBO 
estimates that those payments would average less than $40,000 
annually.
     Authorize landowners in Ochoco Irrigation District 
to prepay construction costs of the Crooked River project 
allocated to their land. Those landowners owe the bureau 
$400,000, and CBO estimates that exercising the prepayment 
option would increase net receipts by less than $50,000 over 
the 2012-2021 period.
    CBO estimates that implementing other provisions of the 
bill would have no significant effect on the federal budget.
    H.R. 2060 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Aurora Swanson. 
The estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of 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, credit authority, or an increase or decrease in 
revenues or tax expenditures. Based on information from the 
Bureau of Reclamation, CBO estimates that enacting H.R. 2060 
would have an insignificant impact on direct spending; 
therefore, pay-as-you-go procedures apply. The legislation 
would not affect revenues.
    The main features of the Crooked River Project include 
Bowman Dam, Prineville Reservoir, and Ochoco Dam and Reservoir 
located in the Ochoco Irrigation District. Enacting two 
provisions of H.R. 2060 would have an insignificant impact on 
net direct spending over the next 10 years. Those provisions 
would first, require the City of Prineville to pay the Bureau 
of Reclamation for additional water to be released from the 
Prineville Reservoir. Based on information from the bureau, CBO 
estimates that those payments would average less than $40,000 
annually. Second, the provisions authorize landowners in Ochoco 
Irrigation District to prepay construction costs of the Crooked 
River project allocated to their land. Those landowners owe the 
Bureau of Reclamation $400,000, and CBO estimates that 
exercising the prepayment option would increase net receipts by 
less than $50,000 over the 2012-2021 period.
    CBO estimates that implementing other provisions of the 
bill would have no significant effect on the federal budget.
    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 amend the 
Wild and Scenic Rivers Act to adjust the Crooked River 
boundary, and to provide water certainty for the City of 
Prineville, Oregon.

                           Earmark Statement

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

                    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):

                       WILD AND SCENIC RIVERS ACT

           *       *       *       *       *       *       *
  Sec. 3. (a) The following rivers and the land adjacent 
thereto are hereby designated as components of the national 
wild and scenic rivers system:
  (1) * * *

           *       *       *       *       *       *       *

  (72) Crooked, Oregon.--The [15-mile] 14.75-mile segment from 
the National Grassland boundary to Dry Creek; to be 
administered by the Secretary of the Interior in the following 
classes:
          (A) * * *
          (B) the [8-mile segment from Bowman Dam] 7.75-mile 
        segment from a point one-quarter mile downstream from 
        the toe of Bowman Dam to Dry Creek as a recreational 
        river. The developer for any hydropower development, 
        including turbines and appurtenant facilities, at 
        Bowman Dam, in consultation with the Bureau of Land 
        Management, shall analyze any impacts to the 
        Outstandingly Remarkable Values of the Wild and Scenic 
        River that may be caused by such development, including 
        the future need to undertake routine and emergency 
        repairs, and shall propose mitigation for any impacts 
        as part of any license application submitted to the 
        Federal Energy Regulatory Commission.

           *       *       *       *       *       *       *

                              ----------                              

                         ACT OF AUGUST 6, 1956

 AN ACT To authorize construction by the Secretary of the Interior of 
         the Crooked River Federal reclamation project, Oregon.

           *       *       *       *       *       *       *
  Sec. 4. In order to promote the preservation and propagation 
of fish and wildlife in accordance with section 2 of the Act of 
August 14, 1946 (60 Stat. 1080, 16 U.S.C., sec. 661a), an 
appropriate screen and fish ladder shall be provided at the 
diversion canal headworks of the Crooked River project below 
Prineville Reservoir and a minimum release of [ten] 17 cubic 
feet per second shall be maintained from said reservoir for the 
benefit of downstream fishlife [during those months when there 
is no other discharge therefrom, but this release may be 
reduced for brief temporary periods by the Secretary whenever 
he may find that release of the full ten cubic feet per second 
is harmful to the primary purpose of the project]. Without 
further action by the Secretary, and as determined necessary 
for any given year by the City of Prineville, up to seven of 
the 17 cubic feet per second minimum release shall also serve 
as mitigation for City of Prineville groundwater pumping, 
pursuant to and in a manner consistent with Oregon State law, 
including any shaping of the release of the up to seven cubic 
feet per second to coincide with City of Prineville groundwater 
pumping as may be required by the State of Oregon. As such, the 
Secretary is authorized to make applications to the State of 
Oregon in conjunction with the City to protect these supplies 
instream. The City shall make payment to the Secretary for that 
portion of the minimum release that actually serves as 
mitigation pursuant to Oregon State law for the City in any 
given year, with the payment for any given year equal to the 
amount of mitigation in acre feet required to offset actual 
City groundwater pumping for that year in accordance with 
Reclamation ``Water and Related Contract and Repayment 
Principles and Requirements'', Reclamation Manual Directives 
and Standards PEC 05-01, dated 09/12/2006, and guided by 
``Economic and Environmental Principles and Guidelines for 
Water and Related Land Resources Implementation Studies'', 
dated March 10, 1983. The Secretary is authorized to contract 
exclusively with the City for additional amounts in the future 
at the request of the City.

           *       *       *       *       *       *       *

  Sec. 6. Other than the 17 cubic feet per second release 
provided for in section 4, and subject to compliance with the 
Army Corps of Engineers' flood curve requirements, the 
Secretary shall, on a ``first fill'' priority basis, store in 
and release from Prineville Reservoir, whether from carryover, 
infill, or a combination thereof, the following:
          (1) 68,273 acre feet of water annually to fulfill all 
        16 Bureau of Reclamation contracts existing as of 
        January 1, 2011, and up to 2,740 acre feet of water 
        annually to supply the McKay Creek lands as provided 
        for in section 5 of this Act.
          (2) Not more than 10,000 acre feet of water annually, 
        to be made available to the North Unit Irrigation 
        District pursuant to a Temporary Water Service 
        Contract, upon the request of the North Unit Irrigation 
        District, consistent with the same terms and conditions 
        as prior such contracts between the District and the 
        Bureau of Reclamation.
  Sec. 7. Except as otherwise provided in this Act, nothing in 
this Act--
          (1) modifies contractual rights that may exist 
        between contractors and the United States under 
        Reclamation contracts;
          (2) amends or reopens contracts referred to in 
        paragraph (1); or
          (3) modifies any rights, obligations, or requirements 
        that may be provided or governed by Oregon State law.

           *       *       *       *       *       *       *

                            Dissenting Views

    H.R. 2060 would amend a Wild and Scenic River designation 
to move the boundary to allow for hydropower production at 
Bowman Dam; amend the Crooked River Project Act to provide the 
City of Prineville with 5,100 acre-feet of water as flow in the 
Crooked River to mitigate for the City's use of groundwater, 
pursuant to state groundwater law. This legislation would also 
create a first fill ``priority'' in meeting water deliveries; 
and allow for prepayment of debt on a project.
    H.R. 2060 provides a unique opportunity to provide a 
balanced solution for the Crooked River that would benefit all 
stakeholders. We support the legislation's intent of providing 
water and economic certainty to the City of Prineville and the 
Ochoco Irrigation District. It does so in a way, however, that 
provides certainty for the city and agriculture, but not for 
the future needs of the environment.
    Section 4 of the legislation amends the 1956 Act to add 
language that would provide the existing Ochoco Irrigation 
District contractors with a ``first fill'' priority basis. 
Currently, contracted (68,273 acre-feet) and uncontracted 
storage (approximately 80,000 acre-feet) space in the 
Prineville Reservoir are filled simultaneously. Language in 
Section 4 would require Reclamation to first fulfill the 
agricultural contracted amount before any other fill. This 
would mean that the agricultural contracted amounts would have 
priority over any future water required for the environment. In 
dry years, meeting the agricultural contract could result in no 
water being available for future environmental demands from the 
uncontracted storage. Section 4 also mandates how Reclamation 
is to operate and manage the Prineville Reservoir, and removes 
some flexibility on Reclamation's part to mitigate and adapt to 
changing conditions.
    For these reasons, we do not support H.R. 2060 as reported.
                                   Edward J. Markey.
                                   Raul Grijalva.
                                   Rush Holt.
                                   John Garamendi.
                                   Grace F. Napolitano.
                                   Niki Tsongas.
                                   Dale E. Kildee.

                                  
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