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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2727 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2727

   To approve and implement the Klamath Basin agreements, to improve 
natural resource management, support economic development, and sustain 
   agricultural production in the Klamath River Basin in the public 
interest and the interest of the United States, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2014

Mr. Wyden (for himself and Mr. Merkley) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
   To approve and implement the Klamath Basin agreements, to improve 
natural resource management, support economic development, and sustain 
   agricultural production in the Klamath River Basin in the public 
interest and the interest of the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Klamath Basin Water Recovery and 
Economic Restoration Act of 2014''.

SEC. 2. DEFINITIONS.

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

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

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

SEC. 4. KLAMATH PROJECT AUTHORIZED PURPOSES.

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

SEC. 5. TRIBAL COMMITMENTS; RELEASE OF CLAIMS.

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

SEC. 6. WATER AND POWER PROVISIONS.

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

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

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

SEC. 7. KLAMATH TRIBES TRIBAL RESOURCE FUND.

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

SEC. 8. HYDROELECTRIC FACILITIES.

    (a) Secretarial Determination.--
            (1) In general.--Subject to paragraph (3), in accordance 
        with section 3 of the Hydroelectric Settlement, the Secretary 
        shall--
                    (A) as soon as practicable after the date of 
                enactment of this Act, determine whether to proceed 
                with facilities removal, based on whether facilities 
                removal--
                            (i) would advance restoration of the 
                        salmonid fisheries of the Klamath Basin; and
                            (ii) is in the public interest, taking into 
                        account potential impacts on affected local 
                        communities and federally recognized Indian 
                        tribes; and
                    (B) if the Secretary determines under subparagraph 
                (A) to proceed with facilities removal, include in the 
                determination the designation of a dam removal entity, 
                subject to paragraph (6).
            (2) Basis for secretarial determination to proceed.--For 
        purposes of making a determination under paragraph (1)(A), the 
        Secretary, in cooperation with the Secretary of Commerce and 
        other appropriate entities, shall--
                    (A) use existing information;
                    (B) conduct any necessary additional studies;
                    (C) comply with the National Environmental Policy 
                Act of 1969 (42 U.S.C. 4321 et seq.); and
                    (D) take such other actions as the Secretary 
                determines to be appropriate to support the 
                determination of the Secretary under paragraph (1).
            (3) Conditions for secretarial determination to proceed.--
        The Secretary may not make or publish the determination under 
        this subsection, unless the conditions specified in section 
        3.3.4 of the Hydroelectric Settlement have been satisfied.
            (4) Publication of notice.--The Secretary shall publish 
        notification of the determination of the Secretary under this 
        subsection in the Federal Register.
            (5) Judicial review of secretarial determination.--
                    (A) In general.--For purposes of judicial review, 
                the determination of the Secretary shall constitute a 
                final agency action with respect to whether or not to 
                proceed with facilities removal.
                    (B) Petition for review.--
                            (i) Filing.--
                                    (I) In general.--Judicial review of 
                                the determination of the Secretary and 
                                related actions to comply with 
                                environmental laws (including the 
                                National Environmental Policy Act of 
                                1969 (42 U.S.C. 4321 et seq.), the 
                                Endangered Species Act of 1973 (16 
                                U.S.C. 1531 et seq.), and the National 
                                Historic Preservation Act (16 U.S.C. 
                                470 et seq.)) may be obtained by an 
                                aggrieved person only as provided in 
                                this paragraph.
                                    (II) Jurisdiction.--A petition for 
                                review under this paragraph may be 
                                filed only in the United States Court 
                                of Appeals for the District of Columbia 
                                Circuit or in the Ninth Circuit Court 
                                of Appeals.
                                    (III) Limitation.--A district court 
                                of the United States and a State court 
                                shall not have jurisdiction to review 
                                the determination of the Secretary or 
                                related actions to comply with 
                                environmental laws described in 
                                subclause (I).
                            (ii) Deadline.--
                                    (I) In general.--Except as provided 
                                in subclause (II), any petition for 
                                review under this paragraph shall be 
                                filed not later than 60 days after the 
                                date of publication of the 
                                determination of the Secretary in the 
                                Federal Register.
                                    (II) Subsequent grounds.--If a 
                                petition is based solely on grounds 
                                arising after the date that is 60 days 
                                after the date of publication of the 
                                determination of the Secretary in the 
                                Federal Register, the petition for 
                                review under this subsection shall be 
                                filed not later than 60 days after the 
                                grounds arise.
                    (C) Implementation.--Any action of the Secretary 
                with respect to which review could have been obtained 
                under this paragraph shall not be subject to judicial 
                review in any action relating to the implementation of 
                the determination of the Secretary or in proceedings 
                for enforcement of the Hydroelectric Settlement.
                    (D) Applicable standard and scope.--Judicial review 
                of the determination of the Secretary shall be in 
                accordance with the standard and scope of review under 
                subchapter II of chapter 5, and chapter 7, of title 5, 
                United States Code (commonly known as the 
                ``Administrative Procedure Act'').
                    (E) Nontolling.--The filing of a petition for 
                reconsideration by the Secretary of an action subject 
                to review under this subsection shall not--
                            (i) affect the finality of the action for 
                        purposes of judicial review;
                            (ii) extend the time within which a 
                        petition for judicial review under this 
                        subsection may be filed; or
                            (iii) postpone the effectiveness of the 
                        action.
            (6) Requirements for dam removal entity.--A dam removal 
        entity designated by the Secretary under paragraph (1)(B) 
        shall--
                    (A) have the capabilities for facilities removal 
                described in section 7.1.1 of the Hydroelectric 
                Settlement; and
                    (B) be the Department of the Interior, except that 
                the Secretary, consistent with section 3.3.4.E of the 
                Hydroelectric Settlement, may designate a non-Federal 
                dam removal entity if--
                            (i) the Secretary, in the sole judgment and 
                        discretion of the Secretary, finds that the dam 
                        removal entity-designate--
                                    (I) is qualified; and
                                    (II) has the capabilities described 
                                in subparagraph (A);
                            (ii) the States of California and Oregon 
                        have concurred in the finding under clause (i); 
                        and
                            (iii) the dam removal entity-designate has 
                        committed, if so designated, to perform 
                        facilities removal within the State Cost Cap as 
                        described in section 4.1.3 of the Hydroelectric 
                        Settlement.
            (7) Responsibilities of dam removal entity.--The dam 
        removal entity designated by the Secretary under paragraph 
        (1)(B) shall have the responsibilities described in section 
        7.1.2 of the Hydroelectric Settlement.
    (b) Facilities Removal.--
            (1) Applicability.--This subsection shall apply if--
                    (A) the determination of the Secretary under 
                subsection (a) provides for proceeding with facilities 
                removal;
                    (B) the State of California and the State of Oregon 
                concur in the determination of the Secretary, in 
                accordance with section 3.3.5 of the Hydroelectric 
                Settlement;
                    (C) the availability of non-Federal funds for the 
                purposes of facilities removal is consistent with the 
                Hydroelectric Settlement; and
                    (D) the Hydroelectric Settlement has not terminated 
                in accordance with section 8.11 of the Hydroelectric 
                Settlement.
            (2) Non-federal funds.--
                    (A) In general.--Notwithstanding title 31, United 
                States Code, if the Department of the Interior is 
                designated as the dam removal entity under subsection 
                (a)(1)(B), the Secretary may accept, manage, and 
                expend, without further appropriation, non-Federal 
                funds for the purpose of facilities removal in 
                accordance with sections 4 and 7 of the Hydroelectric 
                Settlement.
                    (B) Refund.--The Secretary may administer and 
                refund any amounts described in subparagraph (A) 
                received from the State of California in accordance 
                with the requirements established by the State.
            (3) Agreements.--The dam removal entity may enter into 
        agreements and contracts as necessary to assist in the 
        implementation of the Hydroelectric Settlement.
            (4) Proceeding with facilities removal.--
                    (A) In general.--The dam removal entity shall, 
                consistent with the Hydroelectric Settlement--
                            (i) develop a definite plan for facilities 
                        removal as described in section 7 of the 
                        Hydroelectric Settlement, including a schedule 
                        for facilities removal;
                            (ii) obtain all permits, authorizations, 
                        entitlements, certifications, and other 
                        approvals necessary to implement facilities 
                        removal, including a permit under section 404 
                        of the Federal Water Pollution Control Act (33 
                        U.S.C. 1344), notwithstanding subsection (r) of 
                        that section; and
                            (iii) implement facilities removal.
                    (B) State and local laws.--
                            (i) In general.--Except as provided in 
                        clause (ii), facilities removal shall be 
                        subject to applicable requirements of State and 
                        local laws relating to permits and other 
                        authorizations, to the extent the requirements 
                        are not in conflict with Federal law, including 
                        the determination of the Secretary under 
                        subsection (a) and the definite plan (including 
                        the schedule) for facilities removal authorized 
                        under this Act.
                            (ii) Limitations.--Clause (i) shall not 
                        affect--
                                    (I) the authorities of the States 
                                regarding concurrence with the 
                                determination of the Secretary under 
                                subsection (a) in accordance with State 
                                law; or
                                    (II) the authority of a State 
                                public utility commission regarding 
                                funding of facilities removal.
                            (iii) Jurisdiction.--The United States 
                        district courts shall have original 
                        jurisdiction over all claims regarding the 
                        consistency of State and local laws regarding 
                        permits and other authorizations, and of State 
                        and local actions pursuant to those laws, with 
                        the definite plan (including the schedule) for 
                        facilities removal authorized under this Act.
                    (C) Acceptance of title to facilities.--
                            (i) In general.--The dam removal entity may 
                        accept from PacifiCorp all rights, titles, 
                        permits, and other interests in the facilities 
                        and associated land, for facilities removal and 
                        for disposition of facility land (as provided 
                        in section 7.6.4 of the Hydroelectric 
                        Settlement) on providing to PacifiCorp a notice 
                        that the dam removal entity is ready to 
                        commence facilities removal in accordance with 
                        section 7.4.1 of the Hydroelectric Settlement.
                            (ii) Non-federal dam removal entity.--
                        Notwithstanding section 8 of the Federal Power 
                        Act (16 U.S.C. 801), the transfer of title to 
                        facilities from PacifiCorp to a non-Federal dam 
                        removal entity, in accordance with the 
                        Hydroelectric Settlement and this Act, is 
                        authorized.
                    (D) Continued power generation.--
                            (i) In general.--In accordance with an 
                        agreement negotiated under clause (ii), on 
                        transfer of title pursuant to subparagraph (C) 
                        and until the dam removal entity instructs 
                        PacifiCorp to cease the generation of power, 
                        PacifiCorp may continue, consistent with State 
                        law--
                                    (I) to generate, and retain title 
                                to, any power generated by the 
                                facilities in accordance with section 7 
                                of the Hydroelectric Settlement; and
                                    (II) to transmit and use the power 
                                for the benefit of the customers of 
                                PacifiCorp under the jurisdiction of 
                                applicable State public utility 
                                commissions and the Commission.
                            (ii) Agreement with dam removal entity.--As 
                        a condition of transfer of title pursuant to 
                        subparagraph (C), the dam removal entity shall 
                        enter into an agreement with PacifiCorp that 
                        provides for continued generation of power in 
                        accordance with clause (i).
            (5) Licenses and jurisdiction.--
                    (A) Annual licenses.--
                            (i) In general.--The Commission shall issue 
                        annual licenses authorizing PacifiCorp to 
                        continue to operate the facilities until 
                        PacifiCorp transfers title to all of the 
                        facilities.
                            (ii) Termination.--The annual licenses 
                        shall terminate with respect to a facility on 
                        transfer of title for the facility from 
                        PacifiCorp to the dam removal entity.
                            (iii) Staged removal.--
                                    (I) In general.--On transfer of 
                                title of any facility by PacifiCorp to 
                                the dam removal entity, annual license 
                                conditions shall no longer be in effect 
                                with respect to the facility.
                                    (II) Nontransfer of title.--Annual 
                                license conditions shall remain in 
                                effect with respect to any facility for 
                                which PacifiCorp has not transferred 
                                title to the dam removal entity to the 
                                extent compliance with the annual 
                                license conditions are not prevented by 
                                the removal of any other facility.
                    (B) Jurisdiction.--The jurisdiction of the 
                Commission under part I of the Federal Power Act (16 
                U.S.C. 792 et seq.) shall terminate with respect to a 
                facility on the transfer of title for the facility from 
                PacifiCorp to the dam removal entity.
                    (C) Relicensing.--
                            (i) In general.--The Commission shall--
                                    (I) stay the proceeding of the 
                                Commission regarding the pending 
                                license application of PacifiCorp for 
                                Project No. 2082 for the period during 
                                which the Hydroelectric Settlement 
                                remains in effect; and
                                    (II) resume the proceeding and 
                                proceed to take final action on the new 
                                license application only if the 
                                Hydroelectric Settlement terminates 
                                pursuant to section 8.11 of the 
                                Hydroelectric Settlement.
                    (D) Termination; limitations.--If the Hydroelectric 
                Settlement is terminated pursuant to section 8.11 of 
                the Hydroelectric Settlement, the Commission, in 
                proceedings on the application for relicensing, shall 
                not be bound by the record or findings of the Secretary 
                relating to the determination of the Secretary or by 
                the determination of the Secretary.
    (c) Liability Protection.--
            (1) In general.--Notwithstanding any other Federal, State, 
        local, or common law, PacifiCorp shall not be liable for any 
        harm to an individual or entity, property, or the environment, 
        or any damages resulting from facilities removal or facility 
        operations arising from, relating to, or triggered by actions 
        associated with facilities removal under this Act, including 
        any damage caused by the release of any material or substance 
        (including a hazardous substance).
            (2) Funding.--Notwithstanding any other Federal, State, 
        local, or common law, no individual or entity contributing 
        funds for facilities removal shall be held liable, solely by 
        virtue of that funding, for any harm to an individual or 
        entity, property, or the environment, or damages arising from 
        facilities removal or facility operations arising from, 
        relating to, or triggered by actions associated with facilities 
        removal under this Act, including any damage caused by the 
        release of any material or substance (including a hazardous 
        substance).
            (3) Preemption.--Notwithstanding section 10(c) of the 
        Federal Power Act (16 U.S.C. 803(c)), protection from liability 
        pursuant to this section shall preempt the laws of any State to 
        the extent the laws are inconsistent with this Act, except that 
        this Act shall not limit any otherwise-available immunity, 
        privilege, or defense under any other provision of law.
            (4) Effective date.--Liability protection under this 
        subsection shall take effect as the protection relates to any 
        particular facilities on transfer of title to the facility from 
        PacifiCorp to the dam removal entity designated by the 
        Secretary under subsection (a)(1)(B).
    (d) Facilities Not Removed.--
            (1) Keno facility.--
                    (A) Transfer.--On notice that the dam removal 
                entity is ready to commence removal of the J.C. Boyle 
                Dam, the Secretary shall accept the transfer of title 
                to the Keno Facility to the United States in accordance 
                with section 7.5 of the Hydroelectric Settlement.
                    (B) Effect of transfer.--On the transfer under 
                subparagraph (A), and without further action by 
                Congress--
                            (i) the Keno Facility shall--
                                    (I) become part of the Klamath 
                                Reclamation Project; and
                                    (II) be operated and maintained in 
                                accordance with the Federal reclamation 
                                laws and this Act; and
                            (ii) the jurisdiction of the Commission 
                        over the Keno Facility shall terminate.
            (2) East side and west side developments.--On filing by 
        PacifiCorp of an application for surrender of the East Side and 
        West Side Developments in Project No. 2082, the Commission 
        shall issue an order approving partial surrender of the license 
        for Project No. 2082, including any reasonable and appropriate 
        conditions, as provided in section 6.4.1 of the Hydroelectric 
        Settlement.
            (3) Fall creek.--Not later than 60 days after the date of 
        the transfer of title to the Iron Gate Facility to the dam 
        removal entity, the Commission shall resume timely 
        consideration of the pending licensing application for the Fall 
        Creek development pursuant to the Federal Power Act (16 U.S.C. 
        791a et seq.), regardless of whether PacifiCorp retains 
        ownership of Fall Creek or transfers ownership to a new 
        licensee.
            (4) Iron gate hatchery.--Notwithstanding section 8 of the 
        Federal Power Act (16 U.S.C. 801), consistent with section 
        7.6.6 of the Hydroelectric Settlement title to the PacifiCorp 
        hatchery facilities within the State of California shall be 
        transferred to the State of California at--
                    (A) the time of transfer to the dam removal entity 
                of title to the Iron Gate Dam; or
                    (B) such other time as may be agreed to by the 
                parties to the Hydroelectric Settlement.

SEC. 9. ADMINISTRATION AND FUNDING.

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

SEC. 10. MODIFICATION OF TAX EXEMPTION REQUIREMENTS FOR MUTUAL DITCH OR 
              IRRIGATION COMPANIES.

    (a) In General.--Paragraph (12) of section 501(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(I) Treatment of mutual ditch irrigation 
                companies.--
                            ``(i) In general.--In the case of a mutual 
                        ditch or irrigation company or of a like 
                        organization to a mutual ditch or irrigation 
                        company, subparagraph (A) shall be applied 
                        without taking into account any income received 
                        or accrued--
                                    ``(I) from the sale, lease, or 
                                exchange of fee or other interests in 
                                real property, including interests in 
                                water,
                                    ``(II) from the sale or exchange of 
                                stock in a mutual ditch or irrigation 
                                company (or in a like organization to a 
                                mutual ditch or irrigation company) or 
                                contract rights for the delivery or use 
                                of water, or
                                    ``(III) from the investment of 
                                proceeds from sales, leases, or 
                                exchanges under subclauses (I) and 
                                (II),
                        except that any income received under subclause 
                        (I), (II), or (III) which is distributed or 
                        expended for expenses (other than for 
                        operations, maintenance, and capital 
                        improvements) of the mutual ditch or irrigation 
                        company or of the like organization to a mutual 
                        ditch or irrigation company (as the case may 
                        be) shall be treated as nonmember income in the 
                        year in which it is distributed or expended. 
                        For purposes of the preceding sentence, 
                        expenses (other than for operations, 
                        maintenance, and capital improvements) include 
                        expenses for the construction of conveyances 
                        designed to deliver water outside of the system 
                        of the mutual ditch or irrigation company or of 
                        the like organization.
                            ``(ii) Treatment of organizational 
                        governance.--In the case of a mutual ditch or 
                        irrigation company or of a like organization to 
                        a mutual ditch or irrigation company, where 
                        State law provides that such a company or 
                        organization may be organized in a manner that 
                        permits voting on a basis which is pro rata to 
                        share ownership on corporate governance 
                        matters, subparagraph (A) shall be applied 
                        without taking into account whether its member 
                        shareholders have one vote on corporate 
                        governance matters per share held in the 
                        corporation. Nothing in this clause shall be 
                        construed to create any inference about the 
                        requirements of this subsection for companies 
                        or organizations not included in this 
                        clause.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>
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