II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Klamath Basin Water 

5 Recovery and Economic Restoration Act of 2014’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) AGREEMENT.—The term ‘‘Agreement’’ 

2 means each of— 

3 (A) the Restoration Agreement; and 

4 (B) the Upper Basin Agreement. 

5 (2) COMMISSION.—The term ‘‘Commission’’ 

6 means the Federal Energy Regulatory Commission. 

7 (3) FACILITIES REMOVAL.—The term ‘‘facilities 

8 removal’’ means— 

9 (A) physical removal of all or part of each 

10 facility to achieve, at a minimum, a free-flowing 

11 condition and volitional fish passage; 

12 (B) site remediation and restoration, in13 cluding restoration of previously inundated 

14 land; 

15 (C) measures to avoid or minimize adverse 

16 downstream impacts; and 

17 (D) all associated permitting for the ac18 tions described in this paragraph. 

19 (4) FACILITY.—The term ‘‘facility’’ means the 

20 following 1 or more hydropower facilities (including 

21 appurtenant works licensed to PacifiCorp) within the 

22 jurisdictional boundary of the Klamath Hydroelectric 

23 Project, FERC Project No. 2082 (as applicable): 

24 (A) Iron Gate Dam. 

25 (B) Copco No. 1 Dam. 


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1 (C) Copco No. 2 Dam. 

2 (D) J.C. Boyle Dam. 

3 (5) HYDROELECTRIC SETTLEMENT.—The term 

4 ‘‘Hydroelectric Settlement’’ means the agreement 

5 entitled ‘‘Klamath Hydroelectric Settlement Agree6 ment’’ and dated February 18, 2010 (including any 

7 amendments to that agreement approved pursuant 

8 to section 3(a)). 

9 (6) JOINT MANAGEMENT ENTITY.—The term 

10 ‘‘Joint Management Entity’’ means the entity that— 

11 (A) is comprised of the Landowner Entity, 

12 the Klamath Tribes, the United States, and the 

13 State of Oregon; 

14 (B) represents the interests of the parties 

15 to the Upper Basin Agreement; and 

16 (C) is responsible for overseeing implemen17 tation of the Upper Basin Agreement, as de18 scribed in section 7 of the Upper Basin Agree19 ment. 

20 (7) JOINT MANAGEMENT ENTITY TECHNICAL

21 TEAM.—The term ‘‘Joint Management Entity Tech22 nical Team’’ means the group of specialists ap23 pointed by the Joint Management Entity as provided 

24 for in section 7.8 of the Upper Basin Agreement. 


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1 (8) KENO FACILITY.—The term ‘‘Keno Facil2 ity’’ means the dam located in Klamath County, Or3 egon, land underlying the dam, appurtenant facili4 ties, and PacifiCorp-owned property described as 

5 Klamath County Map Tax Lot R–3907–03600– 

6 00200–000. 

7 (9) KLAMATH BASIN.— 

8 (A) IN GENERAL.—The term ‘‘Klamath 

9 Basin’’ means the land tributary to the Klam10 ath River in Oregon and California. 

11 (B) INCLUSIONS.—The term ‘‘Klamath 

12 Basin’’ includes the Lost River and Tule Lake 

13 Basins. 

14 (10) KLAMATH PROJECT.— 

15 (A) IN GENERAL.—The term ‘‘Klamath 

16 Project’’ means the Bureau of Reclamation 

17 project in the States of California and Oregon, 

18 as authorized under the Act of June 17, 1902 

19 (32 Stat. 388, chapter 1093). 

20 (B) INCLUSIONS.—The term ‘‘Klamath 

21 Project’’ includes any dams, canals, and other 

22 works and interests for water diversion, storage, 

23 delivery, and drainage, flood control, and simi24 lar functions that are part of the project de25 scribed in subparagraph (A). 


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1 (11) KLAMATH PROJECT WATER USERS.—The 

2 term ‘‘Klamath Project Water Users’’ has the mean3 ing given the term in the Restoration Agreement. 

4 (12) LANDOWNER ENTITY.—The term ‘‘Land5 owner Entity’’ means the entity established pursuant 

6 to section 8 of the Upper Basin Agreement. 

7 (13) OFF-PROJECT AREA.—The term ‘‘Off8 Project Area’’ means— 

9 (A) the areas within the Sprague River, 

10 Sycan River, Williamson River, and Wood Val11 ley (including the Wood River, Crooked Creek, 

12 Sevenmile Creek, Fourmile Creek, and Crane 

13 Creek) subbasins referred to in Exhibit B of the 

14 Upper Basin Agreement; and 

15 (B) to the extent provided for in the Upper 

16 Basin Agreement, any other areas for which 

17 claims described by section 1.3 or 2.5.1 of the 

18 Upper Basin Agreement are settled as provided 

19 for in section 2.5.1 of the Upper Basin Agree20 ment. 

21 (14) OFF-PROJECT IRRIGATOR.—The term 

22 ‘‘Off-Project Irrigator’’ means any person that is— 

23 (A)(i) a claimant for water rights for irri24 gation uses in the Off-Project Area in Oregon’s 

25 Klamath Basin Adjudication; or 


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1 (ii) a holder of a State of Oregon water 

2 right permit or certificate for irrigation use in 

3 the Off-Project Area; and 

4 (B) a Party to the Upper Basin Agree5 ment. 

6 (15) OREGON’S KLAMATH BASIN ADJUDICA7 TION.—The term ‘‘Oregon’s Klamath Basin adju8 dication’’ means the proceeding to determine surface 

9 water rights pursuant to chapter 539 of the Oregon 

10 Revised Statutes entitled ‘‘In the matter of the de11 termination of the relative rights of the waters of 

12 the Klamath River, a tributary of the Pacific 

13 Ocean’’, in the Circuit Court of the State of Oregon 

14 for the County of Klamath, numbered WA 1300001. 

15 (16) PACIFICORP.—The term ‘‘PacifiCorp’’ 

16 means the owner and licensee of the facility (as of 

17 the date of enactment of this Act). 

18 (17) PARTY TRIBES.—The term ‘‘Party tribes’’ 

19 means— 

20 (A) the Yurok Tribe; 

21 (B) the Karuk Tribe; 

22 (C) the Klamath Tribes; and 

23 (D) such other federally recognized tribes 

24 of the Klamath Basin as may become party to 


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1 the Restoration Agreement after the date of en2 actment of this Act. 

3 (18) RESTORATION AGREEMENT.—The term 

4 ‘‘Restoration Agreement’’ means the agreement enti5 tled ‘‘Klamath River Basin Restoration Agreement 

6 for the Sustainability of Public and Trust Resources 

7 and Affected Communities’’ and dated February 18, 

8 2010 (including amendments adopted prior to the 

9 date of enactment of this Act and any further 

10 amendments to that agreement approved pursuant 

11 to section 3(a)). 

12 (19) RIPARIAN PROGRAM.—The term ‘‘Riparian 

13 Program’’ means the program described in section 4 

14 of the Upper Basin Agreement. 

15 (20) SECRETARY.—The term ‘‘Secretary’’ 

16 means the Secretary of the Interior. 

17 (21) SECRETARIES.—The term ‘‘Secretaries’’ 

18 means each of— 

19 (A) the Secretary of the Interior; 

20 (B) the Secretary of Commerce; and 

21 (C) the Secretary of Agriculture. 

22 (22) SETTLEMENTS.—The term ‘‘Settlements’’ 

23 means each of— 

24 (A) the Hydroelectric Settlement; 

25 (B) the Restoration Agreement; and 


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1 (C) the Upper Basin Agreement. 

2 (23) UPPER BASIN AGREEMENT.—The term 

3 ‘‘Upper Basin Agreement’’ means the agreement en4 titled ‘‘Upper Klamath Basin Comprehensive Agree5 ment’’ and dated April 18, 2014 (including any 

6 amendments to that agreement approved pursuant 

7 to section 3(a)). 

8 (24) WATER USE PROGRAM.—The term ‘‘Water 

9 Use Program’’ means the program described in sec10 tion 3 of the Upper Basin Agreement and section 

11 16.2 of the Restoration Agreement. 

12 SEC. 3. AUTHORIZATION, EXECUTION, AND IMPLEMENTA13 TION OF SETTLEMENTS. 

14 (a) RATIFICATION OF SETTLEMENTS.— 

15 (1) IN GENERAL.—Except as modified by this 

16 Act, and to the extent that the Settlements do not 

17 conflict with this Act, the Settlements are author18 ized, ratified, and confirmed. 

19 (2) AMENDMENTS CONSISTENT WITH THIS

20 ACT.—If any amendment is executed to make any of 

21 the Settlements consistent with this Act, the amend22 ment is also authorized, ratified, and confirmed to 

23 the extent the amendment is consistent with this 

24 Act. 


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1 (3) FURTHER AMENDMENTS.—If any amend2 ment to any of the Settlements is executed by the 

3 parties to the applicable Settlement after the date of 

4 enactment of this Act, unless the Secretary, the Sec5 retary of Commerce, or Secretary of Agriculture de6 termines, not later than 90 days after the date on 

7 which the non-Federal parties agree to the amend8 ment, that the amendment is inconsistent with this 

9 Act or other provisions of law, the amendment is 

10 also authorized, ratified, and confirmed to the extent 

11 the amendment— 

12 (A) is not inconsistent with this Act or 

13 other provisions of law; 

14 (B) is executed in a manner consistent 

15 with the terms of the applicable Settlement; and 

16 (C) does not require congressional approval 

17 pursuant to section 2116 of the Revised Stat18 utes (25 U.S.C. 177) or other applicable Fed19 eral law. 

20 (b) EXECUTION AND IMPLEMENTATION OF SETTLE21 MENTS.— 

22 (1) THE AGREEMENTS.— 

23 (A) IN GENERAL.—As authorized, ratified, 

24 and confirmed pursuant to subsection (a)— 


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1 (i) the Secretary, the Secretary of 

2 Commerce, and the Secretary of Agri3 culture shall promptly execute and imple4 ment the Restoration Agreement; and 

5 (ii) the Secretary and the Secretary of 

6 Commerce shall promptly execute and im7 plement the Upper Basin Agreement. 

8 (B) EFFECT OF EXECUTING AGREE9 MENTS.—Notwithstanding subsection (l), execu10 tion by the applicable Secretaries under sub11 paragraph (A) of either Agreement shall not be 

12 considered a major Federal action under the 

13 National Environmental Policy Act of 1969 (42 

14 U.S.C. 4321 et seq.). 

15 (C) PARTICIPATION IN THE UPPER BASIN

16 AGREEMENT.—As provided for in the Upper 

17 Basin Agreement and as part of implementing 

18 the Upper Basin Agreement, the Secretary and 

19 the Secretary of Commerce may— 

20 (i) participate in the Water Use Pro21 gram and in the Riparian Program; and 

22 (ii) serve as members of the Joint 

23 Management Entity representing the Bu24 reau of Indian Affairs, the United States 

25 Fish and Wildlife Service, the United 


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1 States Geological Survey, and the National 

2 Marine Fisheries Service of the Depart3 ment of Commerce, with the Secretary 

4 serving as the voting member, as described 

5 in section 7.1.5 of the Upper Basin Agree6 ment. 

7 (2) HYDROELECTRIC SETTLEMENT.—To the ex8 tent that the Hydroelectric Settlement does not con9 flict with this Act, the Secretary, the Secretary of 

10 Commerce, and the Commission shall implement the 

11 Hydroelectric Settlement, in consultation with other 

12 applicable Federal agencies. 

13 (c) FEDERAL RESPONSIBILITIES.—To the extent 

14 consistent with the Settlements, this Act, and other provi15 sions of law, the Secretary, the Secretary of Commerce, 

16 the Secretary of Agriculture, and the Commission shall 

17 perform all actions necessary to carry out each responsi18 bility of the Secretary, the Secretary of Commerce, the 

19 Secretary of Agriculture, and the Commission, respec20 tively, under the Settlements. 

21 (d) ENVIRONMENTAL COMPLIANCE.—In imple22 menting the Settlements, the Secretaries and the Commis23 sion shall comply with— 

24 (1) the National Environmental Policy Act of 

25 1969 (42 U.S.C. 4321 et seq.); 


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1 (2) the Endangered Species Act of 1973 (16 

2 U.S.C. 1531 et seq.); and 

3 (3) all other applicable law. 

4 (e) PUBLICATION OF NOTICE; EFFECT OF PUBLICA5 TION.— 

6 (1) RESTORATION AGREEMENT.— 

7 (A) PUBLICATION.—The Secretary shall 

8 publish the notice required by section 15.3.4.A 

9 or section 15.3.4.C of the Restoration Agree10 ment, as applicable, in accordance with the Res11 toration Agreement. 

12 (B) EFFECT OF PUBLICATION.—Publica13 tion of the notice described in subparagraph (A) 

14 shall have the effects on the commitments, 

15 rights, and obligations of the Party tribes, the 

16 United States (as trustee for the federally rec17 ognized tribes of the Klamath Basin), and other 

18 parties to the Restoration Agreement as the 

19 rights and obligations that are provided for in 

20 the Restoration Agreement. 

21 (2) UPPER BASIN AGREEMENT.— 

22 (A) PUBLICATION.—The Secretary shall 

23 publish the notice required by section 10.1 of 

24 the Upper Basin Agreement if all requirements 

25 of section 10 of the Upper Basin Agreement 


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1 have been fulfilled, including the requirement 

2 for notice by the Klamath Tribes of the willing3 ness of the Tribes to proceed with the Upper 

4 Basin Agreement following enactment of au5 thorizing legislation as described in section 

6 10.1.10 or 10.2 of the Upper Basin Agreement, 

7 as applicable, in accordance with the Upper 

8 Basin Agreement. 

9 (B) EFFECT OF PUBLICATION.— 

10 (i) PERMANENCY.—On publication of 

11 the notice required under section 10.1 of 

12 the Upper Basin Agreement, the Upper 

13 Basin Agreement shall become permanent. 

14 (ii) TERMINATION.—On publication of 

15 the notice required under section 10.2 of 

16 the Upper Basin Agreement, the Upper 

17 Basin Agreement shall terminate, accord18 ing to the terms of that section. 

19 (3) JUDICIAL REVIEW.— 

20 (A) IN GENERAL.—Judicial review of a de21 cision of the Secretary pursuant to this sub22 section shall be in accordance with the standard 

23 and scope of review under subchapter II of 

24 chapter 5, and chapter 7, of title 5, United 


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1 States Code (commonly known as the ‘‘Admin2 istrative Procedure Act’’). 

3 (B) DEADLINE.—Any petition for review 

4 under this subparagraph shall be filed not later 

5 than 1 year after the date of publication of the 

6 notice required under this paragraph. 

7 (f) ELIGIBILITY FOR FUNDS PROTECTED.—Notwith8 standing any other provision of law, nothing in this Act 

9 or the implementation of the Settlements, other than as 

10 explicitly provided for in this Act or the Settlements— 

11 (1) restricts or alters the eligibility of any party 

12 to any of the Settlements, or of any Indian tribe, for 

13 the receipt of funds; or 

14 (2) shall be considered an offset against any ob15 ligations or funds in existence on the date of enact16 ment of this Act, under any Federal or State law. 

17 (g) TRIBAL RIGHTS PROTECTED.—Nothing in this 

18 Act or the Settlements— 

19 (1) affects the rights of any Indian tribe out20 side the Klamath Basin; or 

21 (2) amends, alters, or limits the authority of 

22 the Indian tribes of the Klamath Basin to exercise 

23 any water rights the Indian tribes hold or may be 

24 determined to hold except as expressly provided in 

25 the Agreements. 


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1 (h) WATER RIGHTS.— 

2 (1) IN GENERAL.—Except as specifically pro3 vided in this Act and the Settlements, nothing in 

4 this Act or the Settlements creates or determines 

5 water rights or affects water rights or water right 

6 claims in existence on the date of enactment of this 

7 Act. 

8 (2) NO STANDARD FOR QUANTIFICATION.— 

9 Nothing in this Act or the Settlements establishes 

10 any standard for the quantification of Federal re11 served water rights or any water claims of any In12 dian tribe in any judicial or administrative pro13 ceeding. 

14 (i) WILLING SELLERS.—Any acquisition of interests 

15 in land or water pursuant to either Agreement shall be 

16 from willing sellers. 

17 (j) NO PRIVATE RIGHT OF ACTION.— 

18 (1) IN GENERAL.—Nothing in this Act confers 

19 on any person or entity not a party to the Settle20 ments a private right of action or claim for relief to 

21 interpret or enforce this Act or the Settlements. 

22 (2) OTHER LAW.—This subsection does not 

23 alter or curtail any right of action or claim for relief 

24 under any other applicable law. 


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1 (k) STATE COURTS.—Nothing in this Act expands 

2 the jurisdiction of State courts to review Federal agency 

3 actions or determine Federal rights. 

4 (l) RELATIONSHIP TO CERTAIN OTHER FEDERAL

5 LAW.— 

6 (1) IN GENERAL.—Nothing in this Act amends, 

7 supersedes, modifies, or otherwise affects— 

8 (A) Public Law 88–567 (16 U.S.C. 695k 

9 et seq.), except as provided in section 4(c); 

10 (B) the National Wildlife Refuge System 

11 Administration Act of 1966 (16 U.S.C. 668dd 

12 et seq.); 

13 (C) the Endangered Species Act of 1973 

14 (16 U.S.C. 1531 et seq.); 

15 (D) the National Environmental Policy Act 

16 of 1969 (42 U.S.C. 4321 et seq.); 

17 (E) the Federal Water Pollution Control 

18 Act (33 U.S.C. 1251 et seq.), except to the ex19 tent section 8(b)(4) of this Act requires a per20 mit under section 404 of that Act (33 U.S.C. 

21 1344), notwithstanding section 404(r) of that 

22 Act (33 U.S.C. 1344(r)); 

23 (F) the Federal Land Policy and Manage24 ment Act of 1976 (43 U.S.C. 1701 et seq.); 


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1 (G) the Treaty between the United States 

2 and the Klamath and Moadoc Tribes and the 

3 Yahooskin Band of Snake Indians dated Octo4 ber 14, 1864 (16 Stat. 707); or 

5 (H) the Klamath Indian Tribe Restoration 

6 Act (25 U.S.C. 566 et seq.). 

7 (2) CONSISTENCY.—The Agreements shall be 

8 considered consistent with subsections (a) through 

9 (c) of section 208 of the Department of Justice Ap10 propriation Act, 1953 (43 U.S.C. 666). 

11 (3) FEDERAL ADVISORY COMMITTEE ACT.—The 

12 actions of the Joint Management Entity and the 

13 Joint Management Entity Technical Team shall not 

14 be subject to the Federal Advisory Committee Act (5 

15 U.S.C. App.). 

16 (m) WAIVER OF SOVEREIGN IMMUNITY BY THE

17 UNITED STATES.—Except as provided in subsections (a) 

18 through (c) of section 208 of the Department of Justice 

19 Appropriations Act, 1953 (43 U.S.C. 666), nothing in this 

20 Act or the implementation of the Settlements waives the 

21 sovereign immunity of the United States. 

22 (n) WAIVER OF SOVEREIGN IMMUNITY BY THE

23 PARTY TRIBES.—Nothing in this Act waives or abrogates 

24 the sovereign immunity of the Party tribes. 


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1 SEC. 4. KLAMATH PROJECT AUTHORIZED PURPOSES. 

2 (a) KLAMATH PROJECT PURPOSES.— 

3 (1) IN GENERAL.—Subject to paragraph (2) 

4 and subsection (b), the purposes of the Klamath 

5 Project include— 

6 (A) irrigation; 

7 (B) reclamation; 

8 (C) flood control; 

9 (D) municipal; 

10 (E) industrial; 

11 (F) power; 

12 (G) fish and wildlife purposes; and 

13 (H) National Wildlife Refuge purposes. 

14 (2) EFFECT OF FISH AND WILDLIFE PUR15 POSES.— 

16 (A) IN GENERAL.—Subject to subpara17 graph (B), the fish and wildlife purposes of the 

18 Klamath Project authorized under paragraph 

19 (1) shall not adversely affect the irrigation pur20 pose of the Klamath Project. 

21 (B) WATER ALLOCATIONS AND DELIV22 ERY.—Notwithstanding subparagraph (A), the 

23 water allocations and delivery to the National 

24 Wildlife Refuges provided for in the Restoration 

25 Agreement shall not constitute an adverse effect 


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1 on the irrigation purpose of the Klamath 

2 Project for purposes of this paragraph. 

3 (b) WATER RIGHTS ADJUDICATION.—For purposes 

4 of the determination of water rights in Oregon’s Klamath 

5 Basin adjudication, until the date on which the Appendix 

6 E–1 to the Restoration Agreement is filed in Oregon’s 

7 Klamath Basin adjudication pursuant to the Restoration 

8 Agreement, the purposes of the Klamath Project shall be 

9 the purposes in effect on the day before the date of enact10 ment of this Act. 

11 (c) DISPOSITION OF NET REVENUES FROM LEASING

12 OF TULE LAKE AND LOWER KLAMATH NATIONAL WILD13 LIFE REFUGE LAND.—Notwithstanding any other provi14 sion of law, net revenues from the leasing of refuge land 

15 within the Tule Lake National Wildlife Refuge and Lower 

16 Klamath National Wildlife Refuge under section 4 of Pub17 lic Law 88–567 (78 Stat. 851) (commonly known as the 

18 ‘‘Kuchel Act’’), shall be provided directly, without further 

19 appropriation, as follows: 

20 (1) 10 percent of net revenues from land within 

21 the Tule Lake National Wildlife Refuge that are 

22 within the boundaries of Tulelake Irrigation District 

23 to Tulelake Irrigation District, as provided in article 

24 4 of Contract No. 14–06–200–5954 and section 2(a) 


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1 of the Act of August 1, 1956 (70 Stat. 799, chapter 

2 828). 

3 (2) Such amounts as are necessary to counties 

4 as payments in lieu of taxes as provided in section 

5 3 of Public Law 88–567 (16 U.S.C. 695m). 

6 (3) 20 percent of net revenues to the Klamath 

7 Basin National Wildlife Refuge Complex of the 

8 United States Fish and Wildlife Service, for wildlife 

9 management purposes on the Tule Lake National 

10 Wildlife Refuge and the Lower Klamath National 

11 Wildlife Refuge. 

12 (4) 10 percent of net revenues from land within 

13 the Lower Klamath National Wildlife Refuge that 

14 are within the boundaries of the Klamath Drainage 

15 District to Klamath Drainage District, for operation 

16 and maintenance responsibility for the Federal rec17 lamation water delivery and drainage facilities within 

18 the boundaries of the Klamath Drainage District 

19 and the Lower Klamath National Wildlife Refuge 

20 exclusive of the Klamath Straits Drain, subject to a 

21 transfer agreement with the Bureau of Reclamation 

22 under which the Klamath Drainage District assumes 

23 the operation and maintenance duties of the Bureau 

24 of Reclamation for Klamath Drainage District (Area 

25 K) lease land exclusive of Klamath Straits Drain. 


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1 (5) The remainder of net revenues to the Bu2 reau of Reclamation for— 

3 (A) operation and maintenance costs of 

4 Link River and Keno Dams incurred by the 

5 United States; and 

6 (B) to the extent that the revenues re7 ceived under this paragraph for any year exceed 

8 the costs described in subparagraph (A)— 

9 (i) future capital costs of the Klamath 

10 Project; or 

11 (ii) the Renewable Power Program de12 scribed in section 17.7 of the Restoration 

13 Agreement, pursuant to an expenditure 

14 plan submitted to and approved by the 

15 Secretary. 

16 SEC. 5. TRIBAL COMMITMENTS; RELEASE OF CLAIMS. 

17 (a) ACTIONS BY KLAMATH TRIBES.— 

18 (1) RESTORATION AGREEMENT COMMITMENTS

19 ACKNOWLEDGED AND AGREED TO.—In consideration 

20 for the resolution of any contest or exception of the 

21 Klamath Project Water Users to the water rights 

22 claims of the Klamath Tribes and the United States 

23 (acting as trustee for the Klamath Tribes and mem24 bers of the Klamath Tribes in Oregon’s Klamath 

25 Basin adjudication), and for the other commitments 


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1 of the Klamath Project Water Users described in the 

2 Restoration Agreement, and for other benefits de3 scribed in the Restoration Agreement and this Act, 

4 the Klamath Tribes (on behalf of the Klamath 

5 Tribes and the members of the Klamath Tribes) 

6 may make the commitments provided in the Restora7 tion Agreement. 

8 (2) UPPER BASIN AGREEMENT COMMITMENTS

9 ACKNOWLEDGED AND AGREED TO.—In consideration 

10 for the resolution of any contest or exception of the 

11 Off-Project Irrigators to the water rights claims of 

12 the Klamath Tribes and the United States (acting 

13 as trustee for the Klamath Tribes and members of 

14 the Klamath Tribes in Oregon’s Klamath Basin ad15 judication), and for the other commitments of the 

16 Off-Project Irrigators described in the upper Basin 

17 Agreement, and for other benefits described in the 

18 Upper Basin Agreement and this Act, the Klamath 

19 Tribes (on behalf of the Klamath Tribes and the 

20 members of the Klamath Tribes) may make the 

21 commitments provided in the Upper Basin Agree22 ment. 

23 (3) NO FURTHER ACTION REQUIRED.—Except 

24 as provided in subsection (c), the commitments de25 scribed in paragraphs (1) and (2) are confirmed as 


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1 effective and binding, in accordance with the terms 

2 of the commitments, without further action by the 

3 Klamath Tribes. 

4 (4) ADDITIONAL COMMITMENTS.—The Klamath 

5 Tribes (on behalf of the tribe and the members of 

6 the tribe) may make additional commitments and as7 surances in exchange for the resolution of its claims 

8 described in section 1.3.1 or 2.5.1 of the Upper 

9 Basin Agreement, subject to the conditions that the 

10 commitments and assurances shall be— 

11 (A) consistent with this Act, the Settle12 ments, and other applicable provisions of law, 

13 based on the totality of the circumstances; and 

14 (B) covered by a written agreement signed 

15 by the Klamath Tribes and the United States 

16 (acting as trustee for the tribe and the mem17 bers of the tribe in Oregon’s Klamath Basin ad18 judication) pursuant to subsection (f). 

19 (b) ACTIONS BY KARUK TRIBE AND YUROK

20 TRIBE.— 

21 (1) COMMITMENTS ACKNOWLEDGED AND

22 AGREED TO.—In consideration for the commitments 

23 of the Klamath Project Water Users described in the 

24 Restoration Agreement, and other benefits described 

25 in the Restoration Agreement and this Act, the 


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1 Karuk Tribe and the Yurok Tribe (on behalf of the 

2 tribe and the members of the tribe) may make the 

3 commitments provided in the Restoration Agree4 ment. 

5 (2) NO FURTHER ACTION REQUIRED.—Except 

6 as provided in subsection (c), the commitments de7 scribed in paragraph (1) are confirmed as effective 

8 and binding, in accordance with the terms of the 

9 commitments, without further action by the Yurok 

10 Tribe or Karuk Tribe. 

11 (c) RELEASE OF CLAIMS BY PARTY TRIBES.— 

12 (1) IN GENERAL.—Subject to paragraph (2), 

13 subsection (d), and the Agreements, but without oth14 erwise affecting any right secured by a treaty, Exec15 utive order, or other law, the Party tribes (on behalf 

16 of the tribes and the members of the tribes) may re17 linquish and release certain claims against the 

18 United States (including any Federal agencies and 

19 employees) described in sections 15.3.5.A, 

20 15.3.6.B.i, and 15.3.7.B.i of the Restoration Agree21 ment and, in the case of the Klamath Tribes, section 

22 2.5 of the Upper Basin Agreement. 

23 (2) CONDITIONS.—The relinquishments and re24 leases under paragraph (1) shall not take force or 

25 effect until the terms described in sections 15.3.5.C, 


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1 15.3.5.D, 15.3.6.B.iii, 15.3.7.B.iii, 15.3.7.B.iv, and 

2 33.2.1 of the Restoration Agreement and sections 

3 2.4 and 10 of the Upper Basin Agreement have been 

4 fulfilled. 

5 (d) RETENTION OF RIGHTS OF PARTY TRIBES.— 

6 Notwithstanding subsections (a) through (c) or any other 

7 provision of this Act, the Party tribes (on behalf of the 

8 tribes and the members of the tribes) and the United 

9 States (acting as trustee for the Party tribes), shall re10 tain— 

11 (1) all claims and rights described in sections 

12 15.3.5.B, 15.3.6.B.ii, and 15.3.7.B.ii of the Restora13 tion Agreement; and 

14 (2) any other claims and rights retained by the 

15 Party Tribes in negotiations pursuant to section 

16 15.3.5.D, 15.3.6.B.iv, and 15.3.7.B.iv of the Res17 toration Agreement. 

18 (e) TOLLING OF CLAIMS.— 

19 (1) IN GENERAL.—Subject to paragraph (2), 

20 the period of limitation and time-based equitable de21 fense relating to a claim described in subsection (c) 

22 shall be tolled during the period— 

23 (A) beginning on the date of enactment of 

24 this Act; and 

25 (B) ending on the earlier of— 


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1 (i) the date on which the Secretary 

2 publishes the notice described in sections 

3 15.3.5.C, 15.3.6.B.iii, and 15.3.7.B.iii of 

4 the Restoration Agreement; or 

5 (ii) December 1, 2030. 

6 (2) EFFECT OF TOLLING.—Nothing in this sub7 section— 

8 (A) revives any claim or tolls any period of 

9 limitation or time-based equitable defense that 

10 expired before the date of enactment of this 

11 Act; or 

12 (B) precludes the tolling of any period of 

13 limitation or any time-based equitable defense 

14 under any other applicable law. 

15 (f) ACTIONS OF UNITED STATES AS TRUSTEE.— 

16 (1) RESTORATION AGREEMENT COMMITMENTS

17 AUTHORIZED.—In consideration for the commit18 ments of the Klamath Project Water Users de19 scribed in the Restoration Agreement and for other 

20 benefits described in the Restoration Agreement and 

21 this Act, the United States, acting as trustee for the 

22 federally recognized tribes of the Klamath Basin and 

23 the members of such tribes, may make the commit24 ments provided in the Restoration Agreement. 


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1 (2) UPPER BASIN AGREEMENT COMMITMENTS

2 AUTHORIZED.—In consideration for the commit3 ments of the Off-Project Irrigators described in the 

4 Upper Basin Agreement and for other benefits de5 scribed in the Upper Basin Agreement and this Act, 

6 the United States, acting as trustee for the Klamath 

7 Tribes and the members of the Klamath Tribes, may 

8 make the commitments provided in the Upper Basin 

9 Agreement. 

10 (3) NO FURTHER ACTION.—The commitments 

11 described in paragraphs (1) and (2) are confirmed 

12 as effective and binding, in accordance with the 

13 terms of the commitments, without further action by 

14 the United States. 

15 (4) ADDITIONAL COMMITMENTS.—The United 

16 States, acting as trustee for the Klamath Tribes and 

17 the members of the Klamath Tribes in Oregon’s 

18 Klamath Basin Adjudication, may make additional 

19 commitments and assurances of rights in exchange 

20 for the resolution of the tribal water right claims de21 scribed in section 1.3.1 or 2.5.1 of the Upper Basin 

22 Agreement, subject to the conditions that the com23 mitments or assurances shall be— 


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1 (A) consistent with this Act, the Settle2 ments, and other applicable provisions of law, 

3 based on the totality of the circumstances; and 

4 (B) covered by a written agreement signed 

5 by the Klamath Tribes and the United States 

6 (acting as trustee for the Klamath Tribes and 

7 the members of the tribe in Oregon’s Klamath 

8 Basin adjudication) under subsection (a)(3)(B). 

9 (g) JUDICIAL REVIEW.—Judicial review of a decision 

10 of the Secretary concerning any right or obligation under 

11 section 15.3.5.C, 15.3.6.B.iii, 15.3.7.B.iii, 15.3.8.B, or 

12 15.3.9 of the Restoration Agreement shall be in accord13 ance with the standard and scope of review under sub14 chapter II of chapter 5, and chapter 7, of title 5, United 

15 States Code (commonly known as the ‘‘Administrative 

16 Procedure Act’’). 

17 (h) EFFECT OF SECTION.—Nothing in this section— 

18 (1) affects the ability of the United States to 

19 take any action— 

20 (A) authorized by law to be taken in the 

21 sovereign capacity of the United States, includ22 ing any law relating to health, safety, or the en23 vironment, including— 

24 (i) the Federal Water Pollution Con25 trol Act (33 U.S.C. 1251 et seq.); 


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1 (ii) the Safe Drinking Water Act (42 

2 U.S.C. 300f et seq.); 

3 (iii) the Solid Waste Disposal Act (42 

4 U.S.C. 6901 et seq.); 

5 (iv) the Comprehensive Environmental 

6 Response, Compensation, and Liability Act 

7 of 1980 (42 U.S.C. 9601 et seq.); 

8 (v) the Endangered Species Act of 

9 1973 (16 U.S.C. 1531 et seq.); and 

10 (vi) regulations implementing the Acts 

11 described in this subparagraph; and 

12 (B) as trustee for the benefit of any feder13 ally recognized Indian tribe other than an In14 dian tribe of the Klamath Basin; 

15 (C) as trustee for the Party tribes to en16 force the Agreements and this Act through such 

17 legal and equitable remedies as are available in 

18 an appropriate United States court or State 

19 court or administrative proceeding, including 

20 Oregon’s Klamath Basin adjudication; or 

21 (D) as trustee for the federally recognized 

22 Indian tribes of the Klamath Basin and the 

23 members of the tribes, in accordance with the 

24 Agreements and this Act— 


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1 (i) to acquire water rights after the 

2 effective date of the Agreements (as de3 fined in section 1.5.1 of the Restoration 

4 Agreement and section 14.3 of the Upper 

5 Basin Agreement); 

6 (ii) to use and protect water rights, 

7 including water rights acquired after the 

8 effective date of the Agreements (as de9 fined in section 1.5.1 of the Restoration 

10 Agreement and section 14.3 of the Upper 

11 Basin Agreement), subject to the Agree12 ments; or 

13 (iii) to claim a water right or continue 

14 to advocate for an existing claim for water 

15 rights in an appropriate United States 

16 court or State court or administrative pro17 ceeding, subject to the Agreements; 

18 (2) affects the treaty fishing, hunting, trapping, 

19 pasturing, or gathering right of any Indian tribe ex20 cept to the extent expressly provided in this Act or 

21 the Agreements; or 

22 (3) affects any right, remedy, privilege, immu23 nity, power, or claim not specifically relinquished 

24 and released under, or limited by, this Act or the 

25 Agreements. 


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1 SEC. 6. WATER AND POWER PROVISIONS. 

2 The Klamath Basin Water Supply Enhancement Act 

3 of 2000 (Public Law 106–498; 114 Stat. 2221) is amend4 ed— 

5 (1) by redesignating sections 4 through 6 as 

6 sections 5 through 7, respectively; and 

7 (2) by inserting after section 3 the following: 

8 ‘‘SEC. 4. WATER MANAGEMENT AND PLANNING ACTIVITIES. 

9 ‘‘(a) DEFINITIONS.—In this section: 

10 ‘‘(1) OFF-PROJECT AREA.—The term ‘Off11 Project Area’ means— 

12 ‘‘(A) the areas within the Sprague River, 

13 Sycan River, Williamson River, and Wood Val14 ley (including Crooked Creek, Sevenmile Creek, 

15 Fourmile Creek, and Crane Creek) subbasins 

16 referred to in Exhibit B of the Upper Basin 

17 Agreement; and 

18 ‘‘(B) to the extent provided for in the 

19 Upper Basin Agreement, any other areas for 

20 which claims described by section 1.3 or 2.5.1 

21 of the Upper Basin Agreement are settled as 

22 provided for in section 2.5.1 of the Upper Basin 

23 Agreement. 

24 ‘‘(2) ON-PROJECT POWER USER.—The term 

25 ‘On-Project Power User’ has the meaning given the 

26 term in the Restoration Agreement. 


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1 ‘‘(3) RESTORATION AGREEMENT.—The term 

2 ‘Restoration Agreement’ means the agreement enti3 tled ‘Klamath River Basin Restoration Agreement 

4 for the Sustainability of Public and Trust Resources 

5 and Affected Communities’ and dated February 18, 

6 2010 (including any amendments adopted prior to 

7 the date of enactment of this Act and any further 

8 amendment to that agreement approved pursuant to 

9 section 3(a) of the Klamath Basin Water Recovery 

10 and Economic Restoration Act of 2014). 

11 ‘‘(4) UPPER BASIN AGREEMENT.—The term 

12 ‘Upper Basin Agreement’ means the agreement enti13 tled ‘Upper Klamath Basin Comprehensive Agree14 ment’ and dated April 18, 2014 (including any 

15 amendment to that agreement). 

16 ‘‘(b) ACTION BY SECRETARY.—The Secretary may 

17 carry out any activities, including by entering into an 

18 agreement or contract or otherwise making financial as19 sistance available— 

20 ‘‘(1) to align water supplies with demand, in21 cluding activities to reduce water consumption and 

22 demand, consistent with the Restoration Agreement 

23 or the Upper Basin Agreement; 

24 ‘‘(2) to limit the net costs of power used to 

25 manage water (including by arranging for delivery of 


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1 Federal power, consistent with the Restoration 

2 Agreement and the Upper Basin Agreement) for— 

3 ‘‘(A) the Klamath Project (within the 

4 meaning of section 2); 

5 ‘‘(B) the On-Project Power Users; 

6 ‘‘(C) irrigators in the Off-Project Area; 

7 and 

8 ‘‘(D) the Klamath Basin National Wildlife 

9 Refuge Complex; and 

10 ‘‘(3) to restore any ecosystem and otherwise 

11 protect fish and wildlife in the Klamath Basin wa12 tershed, including tribal fishery resources held in 

13 trust, consistent with Restoration Agreement and 

14 the Upper Basin Agreement.’’. 

15 SEC. 7. KLAMATH TRIBES TRIBAL RESOURCE FUND. 

16 (a) ESTABLISHMENT.—There is established in the 

17 Treasury of the United States a fund to be known as the 

18 ‘‘Klamath Tribes Tribal Resource Fund’’ (referred to in 

19 this section as the ‘‘Fund’’), consisting of the amounts de20 posited in the Fund under subsection (b), together with 

21 any interest earned on those amounts, to be managed, in22 vested, and administered by the Secretary for the benefit 

23 of the Klamath Tribes in accordance with the terms of 

24 section 2.4 of the Upper Basin Agreement, to remain 

25 available until expended. 


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1 (b) TRANSFERS TO FUND.—The Fund shall consist 

2 of such amounts as are appropriated to the Fund under 

3 subsection (i), which shall be deposited in the Fund not 

4 later than 60 days after the amounts are appropriated and 

5 any interest under subsection (c) or (d). 

6 (c) MANAGEMENT BY THE SECRETARY.—Absent an 

7 approved tribal investment plan under subsection (d) or 

8 an economic development plan under subsection (e), the 

9 Secretary shall manage, invest, and distribute all amounts 

10 in the Fund in a manner that is consistent with the invest11 ment authority of the Secretary under— 

12 (1) the first section of the Act of June 24, 

13 1938 (25 U.S.C. 162a); 

14 (2) the American Indian Trust Fund Manage15 ment Reform Act of 1994 (25 U.S.C. 4001 et seq.); 

16 and 

17 (3) this section. 

18 (d) INVESTMENT BY THE KLAMATH TRIBES.— 

19 (1) INVESTMENT PLAN.— 

20 (A) IN GENERAL.—In lieu of the invest21 ment provided for in subsection (c), the Klam22 ath Tribes may submit a tribal investment plan 

23 to the Secretary, applicable to all or part of the 

24 Fund, excluding the amounts described in sub25 section (e)(4)(A). 


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1 (B) APPROVAL.—Not later than 60 days 

2 after the date on which a tribal investment plan 

3 is submitted under subparagraph (A), the Sec4 retary shall approve such investment plan if the 

5 Secretary finds that the plan— 

6 (i) is reasonable and sound; 

7 (ii) meets the requirements of the 

8 American Indian Trust Fund Management 

9 Reform Act of 1994 (25 U.S.C. 4001 et 

10 seq.); and 

11 (iii) meets the requirements of this 

12 section. 

13 (C) DISAPPROVAL.—If the Secretary does 

14 not approve the tribal investment plan, the Sec15 retary shall set forth in writing the particular 

16 reasons for the disapproval. 

17 (2) DISBURSEMENT.—If the tribal investment 

18 plan is approved by the Secretary, the funds involved 

19 shall be disbursed from the Fund to the Klamath 

20 Tribes to be invested by the Klamath Tribes in ac21 cordance with the approved tribal investment plan, 

22 subject to the requirements of this section. 

23 (3) COMPLIANCE.—The Secretary may take 

24 such steps as the Secretary determines to be necVerDate Mar 15 2010 00:27 Aug 13, 2014 Jkt 039200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S2727.IS S2727

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1 essary to monitor the compliance of a Tribe with an 

2 investment plan approved under paragraph (1)(B). 

3 (4) LIMITATION ON LIABILITY.—The United 

4 States shall not be— 

5 (A) responsible for the review, approval, or 

6 audit of any individual investment under an ap7 proved investment plan; or 

8 (B) directly or indirectly liable with respect 

9 to any such investment, including any act or 

10 omission of the Klamath Tribes in managing or 

11 investing amounts in the Fund. 

12 (5) REQUIREMENTS.—The principal and income 

13 derived from tribal investments carried out pursuant 

14 to an investment plan approved under subparagraph 

15 (B) shall be— 

16 (A) subject to the requirements of this sec17 tion; and 

18 (B) expended only in accordance with an 

19 economic development plan approved under sub20 section (e). 

21 (e) ECONOMIC DEVELOPMENT PLAN.— 

22 (1) IN GENERAL.—The Klamath Tribes shall 

23 submit to the Secretary an economic development 

24 plan for the use of the Fund, including the expendi25 ture of any principal or income derived from manVerDate Mar 15 2010 00:27 Aug 13, 2014 Jkt 039200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S2727.IS S2727

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1 agement under subsection (c) or from tribal invest2 ments carried out under subsection (d). 

3 (2) APPROVAL.—Not later than 60 days after 

4 the date on which an economic development plan is 

5 submitted under paragraph (1), the Secretary shall 

6 approve the economic development plan if the Sec7 retary finds that the plan meets the requirements of 

8 the American Indian Trust Fund Management Re9 form Act of 1994 (25 U.S.C. 4001 et seq.) and this 

10 section. 

11 (3) USE OF FUNDS.—The economic develop12 ment plan under this subsection shall— 

13 (A) require that the Klamath Tribes spend 

14 all amounts withdrawn from the Fund in ac15 cordance with this section; and 

16 (B) include such terms and conditions as 

17 are necessary to meet the requirements of this 

18 section. 

19 (4) RESOURCE ACQUISITION AND ENHANCE20 MENT PLAN.—The economic development plan shall 

21 include a resource acquisition and enhancement 

22 plan, which shall— 

(A) require that not less than 1 23 ⁄2 of the 

24 amounts appropriated for each fiscal year to 

25 carry out this section shall be used to enhance, 


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1 restore, and utilize the natural resources of the 

2 Klamath Tribes, in a manner that also provides 

3 for the economic development of the Klamath 

4 Tribes and, as determined by the Secretary, di5 rectly or indirectly benefit adjacent non-Indian 

6 communities; and 

7 (B) be reasonably related to the protection, 

8 acquisition, enhancement, or development of 

9 natural resources for the benefit of the Klamath 

10 Tribes and members of the Klamath Tribes. 

11 (5) MODIFICATION.—Subject to the require12 ments of this Act and approval by the Secretary, the 

13 Klamath Tribes may modify a plan approved under 

14 this subsection. 

15 (6) LIMITATION ON LIABILITY.—The United 

16 States shall not be directly or indirectly liable for 

17 any claim or cause of action arising from— 

18 (A) the approval of a plan under this para19 graph; or 

20 (B) the use or expenditure by the Klamath 

21 Tribes of any amount in the Fund. 

22 (f) LIMITATION ON PER CAPITA DISTRIBUTIONS.— 

23 No amount in the Fund (including any income accruing 

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1 tract may be distributed to any member of the Klamath 

2 Tribes on a per capita basis. 

3 (g) LIMITATION ON DISBURSEMENT.— 

4 (1) IN GENERAL.—Subject to paragraph (2), 

5 amounts in the Fund shall not be available for dis6 bursement under this section until the Klamath 

7 Tribes— 

8 (A) make the commitments set forth in the 

9 Agreements; and 

10 (B) are determined by the Secretary to be 

11 in substantial compliance with those commit12 ments. 

13 (2) EARLY DISBURSEMENT.—Based on the 

14 unique history of the loss of reservation land by the 

15 Klamath Tribes through termination of Federal rec16 ognition and acknowledging that restoration of tribal 

17 land is essential to building the tribal economy and 

18 achieving self-determination, the Secretary may dis19 burse funds to the Klamath Tribes prior to the sat20 isfaction of the requirements of paragraph (1) on a 

21 determination by the Secretary that such funds are 

22 available and that early disbursement will support 

23 activities designed to increase employment opportu24 nities for members of the Klamath Tribes. 


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1 (3) AGREEMENTS.—Any such disbursement 

2 shall be in accordance with a written agreement be3 tween the Secretary and the Klamath Tribes that 

4 provides the following: 

5 (A) For any disbursement to purchase land 

6 that is to be placed in trust pursuant to section 

7 6 of the Klamath Indian Tribe Restoration Act 

8 (25 U.S.C. 566d), the written agreement shall 

9 specify that if assurances made do not become 

10 permanent as described in section 15.3.3 of the 

11 Restoration Agreement and on publication of a 

12 notice by the Secretary pursuant to section 

13 15.3.4.C of the Restoration Agreement or sec14 tion 10.2 of the Upper Basin Agreement, any 

15 land purchased with disbursements from the 

16 Fund shall revert back to sole ownership by the 

17 United States unless, prior to reversion, the 

18 Klamath Tribes enter into a written agreement 

19 to repay the purchase price to the United 

20 States, without interest, in annual installments 

21 over a period not to exceed 40 years. 

22 (B) For any disbursement to support eco23 nomic activity and creation of tribal employ24 ment opportunities (including any rehabilitation 

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1 tivities), the written agreement shall specify 

2 that if assurances made do not become perma3 nent as described in section 15.3.3 of the Res4 toration Agreement and on publication of a no5 tice by the Secretary pursuant to section 

6 15.3.4.C of the Restoration Agreement or sec7 tion 10.2 of the Upper Basin Agreement, any 

8 amounts disbursed from the Fund shall be re9 paid to the United States, without interest, in 

10 annual installments over a period not to exceed 

11 40 years. 

12 (h) PROHIBITION.—Amounts in the Fund may not 

13 be made available for any purpose other than a purpose 

14 described in this section. 

15 (i) ANNUAL REPORTS.— 

16 (1) IN GENERAL.—Not later than 60 days after 

17 the end of each fiscal year beginning with fiscal year 

18 2014, the Secretary shall submit to the Committee 

19 on Appropriations of the House of Representatives, 

20 the Committee on Appropriations of the Senate, and 

21 the appropriate authorizing committees of the Sen22 ate and the House of Representatives a report on 

23 the operation of the Fund during the fiscal year. 

24 (2) CONTENTS.—Each report shall include, for 

25 the fiscal year covered by the report, the following: 


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1 (A) A statement of the amounts deposited 

2 into the Fund. 

3 (B) A description of the expenditures made 

4 from the Fund for the fiscal year, including the 

5 purpose of the expenditures. 

6 (C) Recommendations for additional au7 thorities to fulfill the purpose of the Fund. 

8 (D) A statement of the balance remaining 

9 in the Fund at the end of the fiscal year. 

10 (j) NO THIRD PARTY RIGHTS.—This section does not 

11 create or vest rights or benefits for any party other than 

12 the Klamath Tribes and the United States. 

13 (k) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $8,000,000 for each fiscal year, not to exceed a total 

16 amount of $40,000,000. 

17 SEC. 8. HYDROELECTRIC FACILITIES. 

18 (a) SECRETARIAL DETERMINATION.— 

19 (1) IN GENERAL.—Subject to paragraph (3), in 

20 accordance with section 3 of the Hydroelectric Set21 tlement, the Secretary shall— 

22 (A) as soon as practicable after the date of 

23 enactment of this Act, determine whether to 

24 proceed with facilities removal, based on wheth25 er facilities removal— 


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1 (i) would advance restoration of the 

2 salmonid fisheries of the Klamath Basin; 

3 and 

4 (ii) is in the public interest, taking 

5 into account potential impacts on affected 

6 local communities and federally recognized 

7 Indian tribes; and 

8 (B) if the Secretary determines under sub9 paragraph (A) to proceed with facilities re10 moval, include in the determination the designa11 tion of a dam removal entity, subject to para12 graph (6). 

13 (2) BASIS FOR SECRETARIAL DETERMINATION

14 TO PROCEED.—For purposes of making a deter15 mination under paragraph (1)(A), the Secretary, in 

16 cooperation with the Secretary of Commerce and 

17 other appropriate entities, shall— 

18 (A) use existing information; 

19 (B) conduct any necessary additional stud20 ies; 

21 (C) comply with the National Environ22 mental Policy Act of 1969 (42 U.S.C. 4321 et 

23 seq.); and 

24 (D) take such other actions as the Sec25 retary determines to be appropriate to support 


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1 the determination of the Secretary under para2 graph (1). 

3 (3) CONDITIONS FOR SECRETARIAL DETER4 MINATION TO PROCEED.—The Secretary may not 

5 make or publish the determination under this sub6 section, unless the conditions specified in section 

7 3.3.4 of the Hydroelectric Settlement have been sat8 isfied. 

9 (4) PUBLICATION OF NOTICE.—The Secretary 

10 shall publish notification of the determination of the 

11 Secretary under this subsection in the Federal Reg12 ister. 

13 (5) JUDICIAL REVIEW OF SECRETARIAL DETER14 MINATION.— 

15 (A) IN GENERAL.—For purposes of judi16 cial review, the determination of the Secretary 

17 shall constitute a final agency action with re18 spect to whether or not to proceed with facili19 ties removal. 

20 (B) PETITION FOR REVIEW.— 

21 (i) FILING.— 

22 (I) IN GENERAL.—Judicial re23 view of the determination of the Sec24 retary and related actions to comply 

25 with environmental laws (including 


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1 the National Environmental Policy 

2 Act of 1969 (42 U.S.C. 4321 et seq.), 

3 the Endangered Species Act of 1973 

4 (16 U.S.C. 1531 et seq.), and the Na5 tional Historic Preservation Act (16 

6 U.S.C. 470 et seq.)) may be obtained 

7 by an aggrieved person only as pro8 vided in this paragraph. 

9 (II) JURISDICTION.—A petition 

10 for review under this paragraph may 

11 be filed only in the United States 

12 Court of Appeals for the District of 

13 Columbia Circuit or in the Ninth Cir14 cuit Court of Appeals. 

15 (III) LIMITATION.—A district 

16 court of the United States and a 

17 State court shall not have jurisdiction 

18 to review the determination of the 

19 Secretary or related actions to comply 

20 with environmental laws described in 

21 subclause (I). 

22 (ii) DEADLINE.— 

23 (I) IN GENERAL.—Except as pro24 vided in subclause (II), any petition 

25 for review under this paragraph shall 


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1 be filed not later than 60 days after 

2 the date of publication of the deter3 mination of the Secretary in the Fed4 eral Register. 

5 (II) SUBSEQUENT GROUNDS.—If 

6 a petition is based solely on grounds 

7 arising after the date that is 60 days 

8 after the date of publication of the de9 termination of the Secretary in the 

10 Federal Register, the petition for re11 view under this subsection shall be 

12 filed not later than 60 days after the 

13 grounds arise. 

14 (C) IMPLEMENTATION.—Any action of the 

15 Secretary with respect to which review could 

16 have been obtained under this paragraph shall 

17 not be subject to judicial review in any action 

18 relating to the implementation of the deter19 mination of the Secretary or in proceedings for 

20 enforcement of the Hydroelectric Settlement. 

21 (D) APPLICABLE STANDARD AND SCOPE.— 

22 Judicial review of the determination of the Sec23 retary shall be in accordance with the standard 

24 and scope of review under subchapter II of 

25 chapter 5, and chapter 7, of title 5, United 


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1 States Code (commonly known as the ‘‘Admin2 istrative Procedure Act’’). 

3 (E) NONTOLLING.—The filing of a petition 

4 for reconsideration by the Secretary of an ac5 tion subject to review under this subsection 

6 shall not— 

7 (i) affect the finality of the action for 

8 purposes of judicial review; 

9 (ii) extend the time within which a pe10 tition for judicial review under this sub11 section may be filed; or 

12 (iii) postpone the effectiveness of the 

13 action. 

14 (6) REQUIREMENTS FOR DAM REMOVAL ENTI15 TY.—A dam removal entity designated by the Sec16 retary under paragraph (1)(B) shall— 

17 (A) have the capabilities for facilities re18 moval described in section 7.1.1 of the Hydro19 electric Settlement; and 

20 (B) be the Department of the Interior, ex21 cept that the Secretary, consistent with section 

22 3.3.4.E of the Hydroelectric Settlement, may 

23 designate a non-Federal dam removal entity 

24 if— 


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1 (i) the Secretary, in the sole judgment 

2 and discretion of the Secretary, finds that 

3 the dam removal entity-designate— 

4 (I) is qualified; and 

5 (II) has the capabilities described 

6 in subparagraph (A); 

7 (ii) the States of California and Or8 egon have concurred in the finding under 

9 clause (i); and 

10 (iii) the dam removal entity-designate 

11 has committed, if so designated, to per12 form facilities removal within the State 

13 Cost Cap as described in section 4.1.3 of 

14 the Hydroelectric Settlement. 

15 (7) RESPONSIBILITIES OF DAM REMOVAL ENTI16 TY.—The dam removal entity designated by the Sec17 retary under paragraph (1)(B) shall have the re18 sponsibilities described in section 7.1.2 of the Hy19 droelectric Settlement. 

20 (b) FACILITIES REMOVAL.— 

21 (1) APPLICABILITY.—This subsection shall 

22 apply if— 

23 (A) the determination of the Secretary 

24 under subsection (a) provides for proceeding 

25 with facilities removal; 


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1 (B) the State of California and the State 

2 of Oregon concur in the determination of the 

3 Secretary, in accordance with section 3.3.5 of 

4 the Hydroelectric Settlement; 

5 (C) the availability of non-Federal funds 

6 for the purposes of facilities removal is con7 sistent with the Hydroelectric Settlement; and 

8 (D) the Hydroelectric Settlement has not 

9 terminated in accordance with section 8.11 of 

10 the Hydroelectric Settlement. 

11 (2) NON-FEDERAL FUNDS.— 

12 (A) IN GENERAL.—Notwithstanding title 

13 31, United States Code, if the Department of 

14 the Interior is designated as the dam removal 

15 entity under subsection (a)(1)(B), the Secretary 

16 may accept, manage, and expend, without fur17 ther appropriation, non-Federal funds for the 

18 purpose of facilities removal in accordance with 

19 sections 4 and 7 of the Hydroelectric Settle20 ment. 

21 (B) REFUND.—The Secretary may admin22 ister and refund any amounts described in sub23 paragraph (A) received from the State of Cali24 fornia in accordance with the requirements es25 tablished by the State. 


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1 (3) AGREEMENTS.—The dam removal entity 

2 may enter into agreements and contracts as nec3 essary to assist in the implementation of the Hydro4 electric Settlement. 

5 (4) PROCEEDING WITH FACILITIES REMOVAL.— 

6 (A) IN GENERAL.—The dam removal enti7 ty shall, consistent with the Hydroelectric Set8 tlement— 

9 (i) develop a definite plan for facilities 

10 removal as described in section 7 of the 

11 Hydroelectric Settlement, including a 

12 schedule for facilities removal; 

13 (ii) obtain all permits, authorizations, 

14 entitlements, certifications, and other ap15 provals necessary to implement facilities 

16 removal, including a permit under section 

17 404 of the Federal Water Pollution Con18 trol Act (33 U.S.C. 1344), notwithstanding 

19 subsection (r) of that section; and 

20 (iii) implement facilities removal. 

21 (B) STATE AND LOCAL LAWS.— 

22 (i) IN GENERAL.—Except as provided 

23 in clause (ii), facilities removal shall be 

24 subject to applicable requirements of State 

25 and local laws relating to permits and 


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1 other authorizations, to the extent the re2 quirements are not in conflict with Federal 

3 law, including the determination of the 

4 Secretary under subsection (a) and the 

5 definite plan (including the schedule) for 

6 facilities removal authorized under this 

7 Act. 

8 (ii) LIMITATIONS.—Clause (i) shall 

9 not affect— 

10 (I) the authorities of the States 

11 regarding concurrence with the deter12 mination of the Secretary under sub13 section (a) in accordance with State 

14 law; or 

15 (II) the authority of a State pub16 lic utility commission regarding fund17 ing of facilities removal. 

18 (iii) JURISDICTION.—The United 

19 States district courts shall have original ju20 risdiction over all claims regarding the con21 sistency of State and local laws regarding 

22 permits and other authorizations, and of 

23 State and local actions pursuant to those 

24 laws, with the definite plan (including the 


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1 schedule) for facilities removal authorized 

2 under this Act. 

3 (C) ACCEPTANCE OF TITLE TO FACILI4 TIES.— 

5 (i) IN GENERAL.—The dam removal 

6 entity may accept from PacifiCorp all 

7 rights, titles, permits, and other interests 

8 in the facilities and associated land, for fa9 cilities removal and for disposition of facil10 ity land (as provided in section 7.6.4 of the 

11 Hydroelectric Settlement) on providing to 

12 PacifiCorp a notice that the dam removal 

13 entity is ready to commence facilities re14 moval in accordance with section 7.4.1 of 

15 the Hydroelectric Settlement. 

16 (ii) NON-FEDERAL DAM REMOVAL EN17 TITY.—Notwithstanding section 8 of the 

18 Federal Power Act (16 U.S.C. 801), the 

19 transfer of title to facilities from 

20 PacifiCorp to a non-Federal dam removal 

21 entity, in accordance with the Hydro22 electric Settlement and this Act, is author23 ized. 

24 (D) CONTINUED POWER GENERATION.— 


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1 (i) IN GENERAL.—In accordance with 

2 an agreement negotiated under clause (ii), 

3 on transfer of title pursuant to subpara4 graph (C) and until the dam removal enti5 ty instructs PacifiCorp to cease the gen6 eration of power, PacifiCorp may continue, 

7 consistent with State law— 

8 (I) to generate, and retain title 

9 to, any power generated by the facili10 ties in accordance with section 7 of 

11 the Hydroelectric Settlement; and 

12 (II) to transmit and use the 

13 power for the benefit of the customers 

14 of PacifiCorp under the jurisdiction of 

15 applicable State public utility commis16 sions and the Commission. 

17 (ii) AGREEMENT WITH DAM REMOVAL

18 ENTITY.—As a condition of transfer of 

19 title pursuant to subparagraph (C), the 

20 dam removal entity shall enter into an 

21 agreement with PacifiCorp that provides 

22 for continued generation of power in ac23 cordance with clause (i). 

24 (5) LICENSES AND JURISDICTION.— 

25 (A) ANNUAL LICENSES.— 


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1 (i) IN GENERAL.—The Commission 

2 shall issue annual licenses authorizing 

3 PacifiCorp to continue to operate the fa4 cilities until PacifiCorp transfers title to all 

5 of the facilities. 

6 (ii) TERMINATION.—The annual li7 censes shall terminate with respect to a fa8 cility on transfer of title for the facility 

9 from PacifiCorp to the dam removal entity. 

10 (iii) STAGED REMOVAL.— 

11 (I) IN GENERAL.—On transfer of 

12 title of any facility by PacifiCorp to 

13 the dam removal entity, annual license 

14 conditions shall no longer be in effect 

15 with respect to the facility. 

16 (II) NONTRANSFER OF TITLE.— 

17 Annual license conditions shall remain 

18 in effect with respect to any facility 

19 for which PacifiCorp has not trans20 ferred title to the dam removal entity 

21 to the extent compliance with the an22 nual license conditions are not pre23 vented by the removal of any other fa24 cility. 


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1 (B) JURISDICTION.—The jurisdiction of 

2 the Commission under part I of the Federal 

3 Power Act (16 U.S.C. 792 et seq.) shall termi4 nate with respect to a facility on the transfer of 

5 title for the facility from PacifiCorp to the dam 

6 removal entity. 

7 (C) RELICENSING.— 

8 (i) IN GENERAL.—The Commission 

9 shall— 

10 (I) stay the proceeding of the 

11 Commission regarding the pending li12 cense application of PacifiCorp for 

13 Project No. 2082 for the period dur14 ing which the Hydroelectric Settle15 ment remains in effect; and 

16 (II) resume the proceeding and 

17 proceed to take final action on the 

18 new license application only if the Hy19 droelectric Settlement terminates pur20 suant to section 8.11 of the Hydro21 electric Settlement. 

22 (D) TERMINATION; LIMITATIONS.—If the 

23 Hydroelectric Settlement is terminated pursu24 ant to section 8.11 of the Hydroelectric Settle25 ment, the Commission, in proceedings on the 


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1 application for relicensing, shall not be bound 

2 by the record or findings of the Secretary relat3 ing to the determination of the Secretary or by 

4 the determination of the Secretary. 

5 (c) LIABILITY PROTECTION.— 

6 (1) IN GENERAL.—Notwithstanding any other 

7 Federal, State, local, or common law, PacifiCorp 

8 shall not be liable for any harm to an individual or 

9 entity, property, or the environment, or any damages 

10 resulting from facilities removal or facility oper11 ations arising from, relating to, or triggered by ac12 tions associated with facilities removal under this 

13 Act, including any damage caused by the release of 

14 any material or substance (including a hazardous 

15 substance). 

16 (2) FUNDING.—Notwithstanding any other 

17 Federal, State, local, or common law, no individual 

18 or entity contributing funds for facilities removal 

19 shall be held liable, solely by virtue of that funding, 

20 for any harm to an individual or entity, property, or 

21 the environment, or damages arising from facilities 

22 removal or facility operations arising from, relating 

23 to, or triggered by actions associated with facilities 

24 removal under this Act, including any damage 


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1 caused by the release of any material or substance 

2 (including a hazardous substance). 

3 (3) PREEMPTION.—Notwithstanding section 

4 10(c) of the Federal Power Act (16 U.S.C. 803(c)), 

5 protection from liability pursuant to this section 

6 shall preempt the laws of any State to the extent the 

7 laws are inconsistent with this Act, except that this 

8 Act shall not limit any otherwise-available immunity, 

9 privilege, or defense under any other provision of 

10 law. 

11 (4) EFFECTIVE DATE.—Liability protection 

12 under this subsection shall take effect as the protec13 tion relates to any particular facilities on transfer of 

14 title to the facility from PacifiCorp to the dam re15 moval entity designated by the Secretary under sub16 section (a)(1)(B). 

17 (d) FACILITIES NOT REMOVED.— 

18 (1) KENO FACILITY.— 

19 (A) TRANSFER.—On notice that the dam 

20 removal entity is ready to commence removal of 

21 the J.C. Boyle Dam, the Secretary shall accept 

22 the transfer of title to the Keno Facility to the 

23 United States in accordance with section 7.5 of 

24 the Hydroelectric Settlement. 


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1 (B) EFFECT OF TRANSFER.—On the 

2 transfer under subparagraph (A), and without 

3 further action by Congress— 

4 (i) the Keno Facility shall— 

5 (I) become part of the Klamath 

6 Reclamation Project; and 

7 (II) be operated and maintained 

8 in accordance with the Federal rec9 lamation laws and this Act; and 

10 (ii) the jurisdiction of the Commission 

11 over the Keno Facility shall terminate. 

12 (2) EAST SIDE AND WEST SIDE DEVELOP13 MENTS.—On filing by PacifiCorp of an application 

14 for surrender of the East Side and West Side Devel15 opments in Project No. 2082, the Commission shall 

16 issue an order approving partial surrender of the li17 cense for Project No. 2082, including any reasonable 

18 and appropriate conditions, as provided in section 

19 6.4.1 of the Hydroelectric Settlement. 

20 (3) FALL CREEK.—Not later than 60 days after 

21 the date of the transfer of title to the Iron Gate Fa22 cility to the dam removal entity, the Commission 

23 shall resume timely consideration of the pending li24 censing application for the Fall Creek development 

25 pursuant to the Federal Power Act (16 U.S.C. 791a 


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1 et seq.), regardless of whether PacifiCorp retains 

2 ownership of Fall Creek or transfers ownership to a 

3 new licensee. 

4 (4) IRON GATE HATCHERY.—Notwithstanding 

5 section 8 of the Federal Power Act (16 U.S.C. 801), 

6 consistent with section 7.6.6 of the Hydroelectric 

7 Settlement title to the PacifiCorp hatchery facilities 

8 within the State of California shall be transferred to 

9 the State of California at— 

10 (A) the time of transfer to the dam re11 moval entity of title to the Iron Gate Dam; or 

12 (B) such other time as may be agreed to 

13 by the parties to the Hydroelectric Settlement. 

14 SEC. 9. ADMINISTRATION AND FUNDING. 

15 (a) AGREEMENTS.— 

16 (1) IN GENERAL.—The Secretaries may enter 

17 into such agreements (including contracts, memo18 randa of understanding, financial assistance agree19 ments, cost sharing agreements, and other appro20 priate agreements) with State, tribal, and local gov21 ernment agencies or private individuals and entities 

22 as the Secretary concerned consider to be necessary 

23 to carry out this Act and the Settlements, subject to 

24 such terms and conditions as the Secretary con25 cerned considers to be necessary. 


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1 (2) TRIBAL PROGRAMS.—Consistent with para2 graph (1) and section 32 of the Restoration Agree3 ment, the Secretaries shall give priority to qualified 

4 Party tribes in awarding grants, contracts, or other 

5 agreements for purposes of implementing the fish6 eries programs described in part III of the Restora7 tion Agreement. 

8 (b) ESTABLISHMENT OF ACCOUNTS.—There are es9 tablished in the Treasury for the deposit of appropriations 

10 and other funds (including non-Federal donated funds) 

11 the following noninterest-bearing accounts: 

12 (1) The On-Project Plan and Power for Water 

13 Management Fund, to be administered by the Bu14 reau of Reclamation. 

15 (2) The Water Use Retirement and Off-Project 

16 Reliance Fund, to be administered by the United 

17 States Fish and Wildlife Service. 

18 (3) The Klamath Drought Fund, to be adminis19 tered by the National Fish and Wildlife Foundation. 

20 (c) MANAGEMENT.— 

21 (1) IN GENERAL.—The accounts established by 

22 subsection (b) shall be managed in accordance with 

23 this Act and section 14.3 of the Restoration Agree24 ment. 


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1 (2) TRANSFERS.—Notwithstanding section 

2 1535 of title 31, United States Code, the Secretaries 

3 are authorized to enter into interagency agreements 

4 for the transfer of Federal funds between Federal 

5 programs for the purpose of implementing this Act 

6 and the Settlements. 

7 (d) ACCEPTANCE AND EXPENDITURE OF NON-FED8 ERAL FUNDS.— 

9 (1) IN GENERAL.—Notwithstanding title 31, 

10 United States Code, the Secretaries may accept and 

11 expend, without further appropriation, non-Federal 

12 funds, in-kind services, or property for purposes of 

13 implementing the Settlement. 

14 (2) USE.—The funds and property described in 

15 paragraph (1) may be expended or used, as applica16 ble, only for the purpose for which the funds or 

17 property were provided. 

18 (e) FUNDS AVAILABLE UNTIL EXPENDED.—All 

19 funds made available for the implementation of the Settle20 ments shall remain available until expended. 

21 (f) TERMINATION OF AGREEMENTS.—If any Agree22 ment terminates— 

23 (1) any appropriated Federal funds provided to 

24 a party that are unexpended at the time of the terVerDate Mar 15 2010 00:27 Aug 13, 2014 Jkt 039200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S2727.IS S2727

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1 mination of the Agreement shall be returned to the 

2 general fund of the Treasury; and 

3 (2) any appropriated Federal funds provided to 

4 a party shall be treated as an offset against any 

5 claim for damages by the party arising under the 

6 Agreement. 

7 (g) BUDGET.— 

8 (1) IN GENERAL.—The budget of the President 

9 shall include such requests as the President con10 siders to be necessary for the level of funding for 

11 each of the Federal agencies to carry out the respon12 sibilities of the agencies under the Settlements. 

13 (2) CROSSCUT BUDGET.—Not later than the 

14 date of submission of the budget of the President to 

15 Congress for each fiscal year, the Director of the Of16 fice of Management and Budget shall submit to the 

17 appropriate authorizing and appropriating commit18 tees of the Senate and the House of Representatives 

19 a financial report containing— 

20 (A) an interagency budget crosscut report 

21 that displays the budget proposed for each of 

22 the Federal agencies to carry out the Settle23 ments for the upcoming fiscal year, separately 

24 showing funding requested under preexisting 


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1 authorities and new authorities provided by this 

2 Act; 

3 (B) a detailed accounting of all funds re4 ceived and obligated by all Federal agencies re5 sponsible for implementing the Settlements; and 

6 (C) a budget for proposed actions to be 

7 carried out in the upcoming fiscal year by the 

8 applicable Federal agencies in the upcoming fis9 cal year. 

10 (h) REPORT TO CONGRESS.—Not later than the date 

11 of submission of the budget of the President to Congress 

12 for each fiscal year, the Secretaries shall submit to the 

13 appropriate authorizing committees of the Senate and the 

14 House of Representatives a report that describes— 

15 (1) the status of implementation of all of the 

16 Settlements; 

17 (2) expenditures during the preceding fiscal 

18 year for implementation of all of the Settlements; 

19 (3) the current schedule and funding levels that 

20 are needed to complete implementation of each of 

21 the Settlements; 

22 (4) achievements in advancing the purposes of 

23 complying with the Endangered Species Act of 1973 

24 (16 U.S.C. 1531 et seq.) under the Settlements; 


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1 (5) additional achievements in restoring fish2 eries under the Settlements; 

3 (6) the status of water deliveries for the pre4 ceding water year and projections for the upcoming 

5 water year for— 

6 (A) the Klamath Project and irrigators in 

7 the Off-Project Area pursuant to the Agree8 ments; and 

9 (B) the National Wildlife Refuges in areas 

10 covered by the Agreements; 

11 (7) the status of achieving the goals of sup12 porting sustainable agriculture production (including 

13 the goal of limiting net power costs for water man14 agement) and general economic development in the 

15 Klamath Basin; 

16 (8) the status of achieving the goal of sup17 porting the economic development of the Party 

18 tribes; and 

19 (9) the assessment of the Secretaries of the 

20 progress being made toward completing implementa21 tion of all of the Settlements. 


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1 SEC. 10. MODIFICATION OF TAX EXEMPTION REQUIRE2 MENTS FOR MUTUAL DITCH OR IRRIGATION 

3 COMPANIES. 

4 (a) IN GENERAL.—Paragraph (12) of section 501(c) 

5 of the Internal Revenue Code of 1986 is amended by add6 ing at the end the following new subparagraph: 

7 ‘‘(I) TREATMENT OF MUTUAL DITCH IRRI8 GATION COMPANIES.— 

9 ‘‘(i) IN GENERAL.—In the case of a 

10 mutual ditch or irrigation company or of a 

11 like organization to a mutual ditch or irri12 gation company, subparagraph (A) shall be 

13 applied without taking into account any in14 come received or accrued— 

15 ‘‘(I) from the sale, lease, or ex16 change of fee or other interests in real 

17 property, including interests in water, 

18 ‘‘(II) from the sale or exchange 

19 of stock in a mutual ditch or irriga20 tion company (or in a like organiza21 tion to a mutual ditch or irrigation 

22 company) or contract rights for the 

23 delivery or use of water, or 

24 ‘‘(III) from the investment of 

25 proceeds from sales, leases, or ex26 changes under subclauses (I) and (II), 


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1 except that any income received under sub2 clause (I), (II), or (III) which is distrib3 uted or expended for expenses (other than 

4 for operations, maintenance, and capital 

5 improvements) of the mutual ditch or irri6 gation company or of the like organization 

7 to a mutual ditch or irrigation company 

8 (as the case may be) shall be treated as 

9 nonmember income in the year in which it 

10 is distributed or expended. For purposes of 

11 the preceding sentence, expenses (other 

12 than for operations, maintenance, and cap13 ital improvements) include expenses for the 

14 construction of conveyances designed to de15 liver water outside of the system of the 

16 mutual ditch or irrigation company or of 

17 the like organization. 

18 ‘‘(ii) TREATMENT OF ORGANIZA19 TIONAL GOVERNANCE.—In the case of a 

20 mutual ditch or irrigation company or of a 

21 like organization to a mutual ditch or irri22 gation company, where State law provides 

23 that such a company or organization may 

24 be organized in a manner that permits vot25 ing on a basis which is pro rata to share 


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1 ownership on corporate governance mat2 ters, subparagraph (A) shall be applied 

3 without taking into account whether its 

4 member shareholders have one vote on cor5 porate governance matters per share held 

6 in the corporation. Nothing in this clause 

7 shall be construed to create any inference 

8 about the requirements of this subsection 

9 for companies or organizations not in10 cluded in this clause.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall apply to taxable years beginning after 

13 the date of the enactment of this Act. 

Æ 


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