To amend the Wild and Scenic Rivers Act to adjust the Crooked River boundary, to provide water certainty for the City of Prineville, Oregon, and for other purposes.

SECTION 1. SHORT TITLE.

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

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

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

SEC. 3. CITY OF PRINEVILLE WATER SUPPLY.

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

SEC. 4. FIRST FILL PROTECTION.

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

SEC. 5. OCHOCO IRRIGATION DISTRICT.

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

            Passed the House of Representatives June 5, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Central Oregon Jobs and Water Security Act - (Sec. 2) Amends the Wild and Scenic Rivers Act to modify the boundary of the Crooked River, Oregon. Requires the developer for any hydropower development at Bowman Dam to analyze any impacts to the Outstanding Remarkable Values of the Wild and Scenic River that may be caused by such development and propose mitigation for such impacts as part of any license application submitted to the Federal Energy Regulatory Commission (FERC).

(Sec. 3) Increases (from 10 to 17 cubic feet per second) the minimum release that shall be maintained from the Prineville Reservoir for the benefit of downstream fish life. Requires 7 of the 17 cubic feet per second release to serve as mitigation for the city of Prineville groundwater pumping, as determined necessary for any given year by the city, including any shaping of the release of the up to 7 cubic feet per second to coincide with the city's groundwater pumping as may be required by the state of Oregon. Authorizes the Secretary of the Army to make applications to that state in conjunction with that city to protect these supplies instream.

Directs the city to make payment to the Secretary for that portion of the minimum release that actually serves as mitigation under Oregon law. Authorizes the Secretary to contract exclusively with the city for additional amounts in the future at the city's request.

(Sec. 4) Directs the Secretary, on a "first fill" priority basis, to store in and release from the Reservoir: (1) 68,273 acre feet of water annually to fulfill all 16 Bureau of Reclamation contracts existing as of January 1, 2011; (2) up to 2,740 acre feet of water annually to supply the McKay Creek lands; and (3) up to 10,000 acre feet of water annually to the North Unit Irrigation District, upon request, pursuant to a Temporary Water Service Contract.

(Sec. 5) Authorizes any landowner within Ochoco Irrigation District, Oregon, to repay construction costs of project facilities allocated to that landowner's lands within that District. Requires the Secretary of the Interior, upon the request of a landowner who has repaid project construction costs, to provide certification of freedom from ownership and pricing limitations.

Modifies the District's reclamation contracts, on approval of the District directors, to: (1) authorize the use of water for instream purposes in order for the District to engage in, or take advantage of, conserved water projects and temporary instream leasing as authorized by Oregon law; (2) include within the district boundary approximately 2,742 acres in the vicinity of McKay Creek; (3) classify approximately 685 of such acres as irrigable; and (4) provide the District with stored water from Prineville Reservoir for supplying such 685 acres, contingent on the transfer of existing appurtenant McKay Creek water rights to instream use and the state's issuance of water rights for the use of stored water.