To update the management of Oregon water resources, and for other purposes.

SECTION 1. SHORT TITLE.

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

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

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

SEC. 3. WALLOWA LAKE DAM REHABILITATION ACT.

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

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

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

SEC. 5. NORTH UNIT IRRIGATION DISTRICT.

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

``SEC. 3. ADDITIONAL TERMS.

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

``SEC. 4. FUTURE AUTHORITY TO RENEGOTIATE.

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

            Passed the House of Representatives September 25, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Oregon Water Resources Management Act of 2006 - (Sec. 2) Amends the Oregon Resource Conservation Act of 1996 to: (1) replace references to the Deschutes River Basin Working Group with the Deschutes River Conservancy Working Group; (2) require the two representatives of private interests from irrigated agriculture on the Working Group to actively farm more than 100 acres of irrigated land and not be irrigation district managers; (3) direct the Bureau of Reclamation to pay up to a total amount of $2 million for each of FY2006 through FY2015 for 50% of the cost of performing projects proposed by the Working Group and approved by the Secretary of the Interior; and (4) authorize appropriations for Deschutes Basin ecosystem restoration projects for FY2006-FY2015.

(Sec. 3) Authorizes the Secretary, acting through the Commissioner of Reclamation, to provide grants to, or enter into cooperative or other agreements with, tribal, state, and local governmental entities and the Associated Ditch Companies, Incorporated (ADC) (nonprofit corporation that operates the Wallowa Lake Dam) to plan, design, and construct facilities needed to implement the Wallowa Lake Dam Rehabilitation Program. Directs the Secretary, as a condition of providing funds, to ensure that: (1) the Rehabilitation Program meets the standards of the dam safety program of Oregon; (2) ADC agrees to assume liability for any work performed or supervised with federal funds provided to it under this section; and (3) the United States shall not be liable for damages arising out of any act relating to a facility rehabilitated or constructed with federal funds provided under this Act, both while and after activities are conducted using such funds. Limits the federal share of the cost of activities authorized under this section to 50%. Prohibits the federal government from holding title to, or being responsible for the operation and maintenance of, any facility rehabilitated or constructed under this section. Authorizes appropriations. Terminates the Secretary's authority to carry out this section 10 years after its enactment.

(Sec. 4) Authorizes the Secretary, acting through the Bureau, to participate in the Water for Irrigation, Streams and the Economy Project water management feasibility study and environmental impact statement in accordance with the Memorandum of Agreement Between City of Medford and Bureau of Reclamation for the Water for Irrigation, Streams and the Economy Project, dated July 2, 2004. Authorizes appropriations. Sets the non-federal share at 50% of the Bureau's costs in carrying out this section. Permits the non-federal share to be in the form of certain in-kind services. Terminates the Secretary's authority to carry out this section 10 years after its enactment.

(Sec. 5) North Unit Irrigation District Act of 2006 - Modifies a repayment contract between the Secretary and the North Unit Irrigation District, Oregon, to permit the District to engage in, or take advantage of, conserved water projects authorized by Oregon law. Authorizes the Secretary to renegotiate such contract terms as the District directors determine to be necessary, only upon the written request of the District directors and the consent of the Commissioner.