SECTION 1. SHORT TITLE.

    This Act may be cited to as the ``Umatilla Basin Project Completion 
Act''.

SEC. 2. AUTHORITY TO COMPLETE THIRD PHASE OF UMATILLA BASIN PROJECT.

    The Umatilla Basin Project Act (102 Stat. 2791) is amended by 
adding at the end the following new sections:

``SEC. 215. UMATILLA BASIN PROJECT PHASE III EXCHANGE.

    ``(a) Authorization of Project Construction.--(1) Effective upon 
the boundary adjustments under section 216(a), the Secretary is 
authorized to construct a third and final phase of the Umatilla Basin 
Project to provide additional flows in the Umatilla River for 
anadromous fish through a water exchange with Westland Irrigation 
District.
    ``(2) Prior to construction, the Secretary shall complete a 
feasibility study to identify alternatives to provide Westland 
Irrigation District and other Umatilla River Basin water users with 
exchange flows of approximately 220 cubic feet per second to restore 
the Umatilla River fishery, as determined through analysis in a 
feasibility study under paragraph (3).
    ``(3)(A) The feasibility study for the Phase III exchange 
facilities shall examine engineering, environmental, and economic 
factors associated with project alternatives, including but not limited 
to: technical engineering and hydrologic analyses pertinent to the 
identification and design of alternatives; biological analyses of 
instream flow levels to optimize anadromous fish restoration; and 
assessment of the best biological value per unit expenditure among the 
alternatives.
    ``(B) The feasibility study shall also include an analysis of 
inclusion of other irrigators in the exchange; consolidation of 
irrigation delivery facilities; potential for voluntary water 
transfers; optimization of water delivery scheduling for all four 
irrigation districts; appropriate backup systems; water conservation 
opportunities; and such other analyses as the Secretary may consider 
appropriate to improve the exchange project for fishery restoration 
purposes.
    ``(4) Prior to completion of Phase III facilities, the Secretary 
shall negotiate and execute an exchange agreement with the Westland 
Irrigation District to allow the use of Columbia River water in 
exchange for an equivalent amount of Umatilla River or McKay Reservoir 
water. Additional exchange agreements with other water users may be 
executed either before or after the completion of Phase III. The 
exchange agreement shall incorporate water delivery scheduling 
optimization, conservation, water transfer, and other technical 
operational measures recommended in the feasibility study.
    ``(b) Operation and Maintenance Costs.--All exchange system 
operation and maintenance costs and any increased operation and 
maintenance costs to the project caused by the Phase III exchange shall 
be the responsibility of the Federal Government and shall be 
nonreimbursable.
    ``(c) Power for Project Pumping.--The Administrator of the 
Bonneville Power Administration (hereinafter in this subsection 
referred to as the `Administrator'), consistent with provisions of the 
Columbia River Basin Fish and Wildlife Program established pursuant to 
the Pacific Northwest Electric Power Planning and Conservation Act (94 
Stat. 2697), shall provide for project power needed to effect the Phase 
III water exchange for purposes of mitigating anadromous fishery 
impacts. The cost of power shall be calculated as an offset to the 
Administrator's annual Treasury payments for operation and maintenance 
of the Federal Columbia River Power System.
    ``(d) Integration and Coordination of Facilities.--Project 
facilities authorized by sections 215 through 219 shall be integrated 
and coordinated into the existing Umatilla Basin Project.

``SEC. 216. UMATILLA BASIN IRRIGATION DISTRICTS BOUNDARY ADJUSTMENT.

    ``(a) In General.--(1) Effective upon completion of environmental 
reviews and approval by the Secretary, the boundaries of the Umatilla 
Basin Project irrigation districts are adjusted by operation of law as 
follows:
            ``(A) Hermiston Irrigation District's boundaries are 
        adjusted to include the 1,091 acres identified in its 1993 
        request to the Bureau of Reclamation.
            ``(B) Stanfield Irrigation District's boundaries are 
        adjusted to include the 3,549 acres identified in its 1993 
        request to the Bureau of Reclamation.
            ``(C) West Extension Irrigation District's boundaries are 
        adjusted to include the 2,436.8 acres identified in the June 
        1993 Bureau of Reclamation Land Classification Report as 
        irrigable.
            ``(D) Westland Irrigation District's boundaries are 
        adjusted to include the 9,912 acres identified in its 1993 
        request to the Bureau of Reclamation.
    ``(2) The Secretary shall complete environmental reviews pursuant 
to this subsection no later than 6 months after the date of enactment 
of the Umatilla Basin Project Completion Act and at no cost to the 
Umatilla Basin Project irrigation districts.
    ``(b) Provision of McKay Reservoir Water for Environmental 
Enhancement.--(1) After the boundary adjustments under subsection (a), 
the Umatilla Basin Project irrigation districts shall provide water for 
environmental enhancement from McKay Reservoir to the Secretary in 
accordance with Option A or Option B, as specified by the Secretary.
            ``(2)(A)(i) Under Option A, the irrigation districts shall 
        provide storage capacity from McKay Reservoir for environmental 
        enhancement purposes each year equal the applicable amount 
        stated in clause (ii), or the corresponding percentage of fill 
        as determined by the Bureau of Reclamation, whichever is less.
            ``(ii) The applicable amounts referred to in clause (i) are 
        the following:
                    ``(I) In 1997, 6,500 acre feet.
                    ``(II) In 1998, 5,500 acre feet.
                    ``(III) In 1999, 4,500 acre feet.
                    ``(IV) In 2000, 3,500 acre feet.
                    ``(V) In 2001, 3,000 acre feet.
                    ``(VI) In 2002, 3,000 acre feet.
            ``(B) Under Option B, the irrigation districts shall 
        provide storage capacity from McKay Reservoir for environmental 
        enhancement purposes, equal to 6,500 acre feet of water or the 
        corresponding percentage of fill as determined by the Bureau of 
        Reclamation, whichever is less, in each calendar year beginning 
        in 1997 and ending in the year 2002: Provided, That the 
        Secretary grant $300,000 by March 1st of each calendar year 
1997 through 2002 to the Westland Irrigation District of the Umatilla 
Project for water district improvements or other uses deemed 
appropriate by the District: Provided further, if the Secretary fails 
to grant the $300,000 by March 1st in any calendar year between 1997 
and 2002 for purposes of this subsection the District is not required 
to provide any water for that calendar year.
    ``(C) Not later than 9 months after the date of enactment of the 
Umatilla Basin Project Completion Act, the Secretary shall specify 
Option A or Option B and notify the Umatilla Basin Project irrigation 
districts of that specification.
    ``(c) Requirements for Receiving Project Water.--Notwithstanding 
any other provision of this title, no parcel may receive Umatilla Basin 
Project water unless it has a valid State water right and is classified 
as irrigable in the Bureau of Reclamation's Land Classification Report.
    ``(d) Provision of Description of Boundaries.--A legal description 
of the irrigation district boundaries as adjusted under subsection (a), 
including land classification and project boundary maps, shall be 
provided as an attachment to all 4 Umatilla Basin Project irrigation 
districts' existing contracts.
    ``(e) Limitation on Altering Ability To Pay Determination.--No 
alteration in the ability to pay determination for the Umatilla Basin 
Project irrigation districts may be made as a result of the irrigation 
district boundary adjustments made by subsection (a).

``SEC. 217. WATER PROTECTION AND MANAGEMENT.

    ``The Secretary, in cooperation with the Confederated Tribes of the 
Umatilla Indian Reservation (hereinafter in this section referred to as 
the `Tribes'), shall initiate discussions with the State of Oregon 
(hereinafter in this section referred to as the `State') regarding the 
Tribes' water claims and other water needs in the Umatilla River Basin. 
To facilitate these discussions of water claims, the Secretary shall do 
the following:
            ``(1) The Secretary, taking into account the facilities and 
        analyses authorized by sections 215 through 219, shall work 
        with the State, the Tribes, irrigation districts, the 
        Bonneville Power Administration, and the affected public to 
        develop a water management plan for the Umatilla River Basin. 
        The plan shall address restoration of the Umatilla River Basin 
        anadromous fishery. The Secretary shall also develop an 
        integrated ground water/surface water model of the Upper 
        Umatilla River Basin.
            ``(2) Within 2 years after the date of enactment of the 
        Umatilla Basin Project Completion Act, the Secretary shall 
        report to the Committee on Energy and Natural Resources of the 
        Senate and the Committee on Resources of the House of 
        Representatives on the progress of--
                    ``(A) the facilities authorized by sections 215 
                through 219 of this title;
                    ``(B) the water management plan;
                    ``(C) the ground water/surface water model; and
                    ``(D) the status of discussions of tribal water 
                claims in the Umatilla River Basin.

``SEC. 218. JOINT WATER SUPPLY SYSTEM.

    ``Effective upon the boundary adjustments under section 216(a), the 
Secretary is authorized to contract with the Tribes for the 
construction of a portion of an off-stream storage reservoir of 
approximately 10,000 acre-feet capacity, with associated works. Such 
authorization shall not include water treatment facilities. Such 
reservoir is to be located on or adjacent to the Tribes' reservation in 
Oregon: Provided, That:
            ``(1) The Secretary can demonstrate through appropriate 
        feasibility level planning and environmental studies that the 
        facility can be built in a manner which conforms to all 
applicable Federal, State, and Tribal laws and that the project siting 
and construction minimizes any adverse effects on the Umatilla River 
fishery.
            ``(2) Diversions for storage will not reduce Umatilla River 
        flows below the levels necessary to restore and support the 
        Umatilla River anadromous fishery. In diverting water for 
        storage and operation of the reservoir, the Tribes and the city 
        of Pendleton (hereinafter in this section referred to as the 
        `City') may agree to higher levels of protection of instream 
        flows. The reservoir shall be filled only during periods of 
        high flow, and in such a manner as to preserve the ecological 
        value of high flow events in the Umatilla River, as determined 
        by Federal, State, and tribal fishery experts.
            ``(3) The City agrees to provide up to $16,000,000 (in 
        addition to the $6,500,000 authorized by section 219(4)) for 
        the tribal share of feasibility level planning and 
        environmental studies and to construct the reservoir and 
        associated works provided for by this title. Any cost overruns 
        beyond the $22,500,000 estimated for the reservoir and 
        associated works authorized by this section and section 219(4) 
        shall be allocated 70 percent to the City and 30 percent to the 
        Tribes, unless they mutually agree otherwise.
            ``(4) The City, subject to applicable Federal, State, and 
        tribal laws, shall use all of its water rights to the Umatilla 
        River and its tributaries with priority dates after January 1, 
        1910, including those rights identified in Oregon Regulatory 
        Statute 538.450, for instream flow purposes to improve the 
        Umatilla River anadromous fishery, provided that adequate water 
        from the reservoir project is available for municipal use.
            ``(5) The City and the Tribes will share all operation and 
        maintenance costs on a pro rata basis, determined by the amount 
        of water in the reservoir reserved for each government's use, 
        unless the City and the Tribes mutually agree to an alternative 
        cost allocation.
            ``(6) Title to the reservoir facility will be held jointly 
        in the name of the City and the United States, in trust for the 
        Tribes. The Secretary may negotiate a contract transferring 
        operation and maintenance responsibility to either the Tribes 
        or the City, pursuant to all applicable State, Federal, and 
        tribal law.
            ``(7) The Secretary may direct that funds authorized under 
        this section be contracted to the Tribes, under the Indian 
        Self-Determination and Education Assistance Act (25 U.S.C. 450 
        et seq.).

``SEC. 219. AUTHORIZATION OF APPROPRIATIONS.

    ``Effective upon the boundary adjustments under section 216(a), 
there are authorized to be appropriated to the Secretary, plus or minus 
such amounts as may be justified by reason of ordinary fluctuations of 
applicable cost indexes, the following sums, without fiscal year 
limitation:
            ``(1) Not to exceed $64,000,000 for feasibility studies, 
        environmental studies, and construction of the Phase III 
        Exchange: Provided, That all costs of Phase III planning and 
        construction, including operation and maintenance costs 
        allocated to the mitigation of anadromous fish species and the 
        study authorized by section 215 of this Act, shall be 
        nonreimbursable: Provided further, That not more than 25 
        percent of the amount appropriated under this paragraph may be 
        expended for administrative overhead costs.
            ``(2) Not to exceed $500,000 for tribal water claims 
        discussions, a water management plan, and an integrated ground 
        water/surface water model, as provided for in section 217(a).
            ``(3) Not to exceed $400,000 annually for enforcement and 
        protection of Phases I, II, and III exchange water for instream 
        uses.
            ``(4) Not to exceed $6,500,000 for feasibility studies, 
        environmental studies, and construction of the Tribes' portion 
        of an off-stream storage reservoir and associated works, as 
        authorized in section 218 of this title.''.

SEC. 3. WATER RIGHTS.

    In relation to the Umatilla Basin Project, nothing in this Act 
shall--
            (1) impair the validity of or preempt any provision of 
        State law with respect to water or water rights, or of any 
        interstate compact governing water or water rights;
            (2) create a right to the diversion or use of water, other 
        than--
                    (A) as established pursuant to the substantive and 
                procedural requirements of State law; and
                    (B) as recognized under State law;
            (3) impair any valid water right;
            (4) establish or create any water rights for any party; or
            (5) be construed to create directly or indirectly an 
        express or implied Federal reserved water right for any 
        purpose.

SEC. 4. SENSE OF THE CONGRESS.

    It is the sense and expectation of the Congress that construction 
and operation of Phase III, the perpetual operation of the integrated 
Umatilla Basin Project, and the construction and operation of the Joint 
Water Supply System, as authorized in section 218 of the Umatilla Basin 
Project Act, will fulfill obligations of the Federal Government to 
provide the Confederated Tribes of the Umatilla Indian Reservation with 
water for fishery purposes in the Umatilla River below the mouth of 
McKay Creek, as recognized by their 1855 treaty with the United States.
Umatilla Basin Project Completion Act - Amends the Umatilla Basin Project Act to authorize the Secretary of the Interior to construct a third and final phase (phase III) of the Umatilla Basin Project to provide additional water flows into the Umatilla River for anadromous fish through a water exchange with the Westland Irrigation District. Requires a feasibility study prior to such construction.  Requires the execution of an exchange agreement with the District to allow the use of Columbia River water in exchange for an equal amount of Umatilla River or McKay Reservoir water.  Authorizes agreements with other water users before completion of phase III.  Requires the Administrator of the Bonneville Power Administration to provide for Project power necessary to effect the phase III water exchange. 
Adjusts the boundaries of the four Project irrigation districts. Requires the irrigation districts, after the boundary adjustments, to provide water for environmental enhancement from McKay Reservoir to the Secretary under one of two options, as specified by the Secretary.  Requires the Secretary to notify the districts of the option chosen within nine months after the enactment of this Act. 
Prohibits any parcel from receiving Project water unless it has a valid State water right and is classified as irrigable.  Requires an updated description of irrigation districts' boundaries as an attachment to all existing Project contracts. 
Directs the Secretary to initiate discussions with the State of Oregon regarding the water claims of the Confederated Tribes of the Umatilla Indian Reservation and other water needs in the Umatilla River Basin.  Authorizes the Secretary to contract with the Tribes for the construction of a portion of an off-stream storage reservoir of specified capacity and associated works, to be located on or adjacent to the Tribes' reservation. 
Authorizes appropriations. 
Protects existing water rights. 
Expresses the sense of the Congress that construction and operation of phase III, the perpetual operation of the integrated Project, and construction and operation of the joint water supply system (as authorized under the prior Act) will fulfill all Government obligations to provide the Tribes with water for fishery purposes in the Umatilla River below the mouth of McKay Creek, as recognized under the Tribes' treaty with the United States.
Umatilla Basin Project Completion Act