S.Amdt. 3288

SA 3288. Mr. MERKLEY (for himself and Mr. Wyden) submitted an
amendment intended to be proposed to amendment SA 2953 proposed by Ms.
Murkowski to the bill S. 2012, to provide for the modernization of the
energy policy of the United States, and for other purposes; which was
ordered to lie on the table; as follows:

At the end of subtitle E of title IV, add the following:

SEC. 44___. KLAMATH PROJECT WATER AND POWER.

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

``SEC. 4. POWER AND WATER MANAGEMENT.

``(a) Definitions.--In this section:
``(1) Covered power use.--The term `covered power use'
means a use of power to develop or manage water for
irrigation, wildlife purposes, or drainage on land that is--
``(A) associated with the Klamath Project, including land
within a unit of the National Wildlife Refuge System that
receives water due to the operation of Klamath Project
facilities; or
``(B) irrigated by the class of users covered by the
agreement dated April 30, 1956, between the California Oregon
Power Company and Klamath Basin Water Users Protective
Association and within the Off Project Area (as defined in
the Upper Basin Comprehensive Agreement entered into on April
18, 2014), only if each applicable owner and holder of a
possessory interest of the land is a party to that agreement
(or a successor agreement that the Secretary determines
provides a comparable benefit to the United States).
``(2) Klamath project.--
``(A) In general.--The term `Klamath Project' means the
Bureau of Reclamation project in the States of California and
Oregon.
``(B) Inclusions.--The term `Klamath Project' includes any
dams, canals, and other works and interests for water
diversion, storage, delivery, and drainage, flood control,
and similar functions that are part of the project described
in subparagraph (A).
``(3) Power cost benchmark.--The term `power cost
benchmark' means the average net delivered cost of power for
irrigation and drainage at Reclamation projects in the area
surrounding the Klamath Project that are similarly situated
to the Klamath Project, including Reclamation projects that--
``(A) are located in the Pacific Northwest; and
``(B) receive project-use power.
``(b) Water, Environmental, and Power Activities.--
``(1) In general.--Pursuant to the reclamation laws and
subject to appropriations and required environmental reviews,
the Secretary may carry out activities, including entering
into an agreement or contract or otherwise making financial
assistance available--
``(A) to plan, implement, and administer programs to align
water supplies and demand for irrigation water users
associated with the Klamath Project, with a primary emphasis
on programs developed or endorsed by local entities comprised
of representatives of those water users;
``(B) to plan and implement activities and projects that--
``(i) avoid or mitigate environmental effects of irrigation
activities; or
``(ii) restore habitats in the Klamath Basin watershed,
including restoring tribal fishery resources held in trust;
and
``(C) to limit the net delivered cost of power for covered
power uses.
``(2) Effect.--Nothing in subparagraph (A) or (B) of
paragraph (1) authorizes the Secretary--
``(A) to develop or construct new facilities for the
Klamath Project without appropriate approval from Congress
under section 9 of the Reclamation Projects Act of 1939 (43
U.S.C. 485h); or
``(B) to carry out activities that have not otherwise been
authorized.
``(c) Reducing Power Costs.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Energy Policy Modernization Act of 2016,
the Secretary, in consultation with interested irrigation
interests that are eligible for covered power use and
representative organizations of those interests, shall submit
to the Committee on Energy and Natural Resources of the
Senate and the Committee on Natural Resources of the House of
Representatives a report that--
``(A) identifies the power cost benchmark; and
``(B) recommends actions that, in the judgment of the
Secretary, are necessary and appropriate to ensure that the
net delivered power cost for covered power use is equal to or
less than the power cost benchmark, including a description
of--
``(i) actions to immediately reduce power costs and to have
the net delivered power cost for covered power use be equal
to or less than the power cost benchmark in the near term,
while longer-term actions are being implemented;
``(ii) actions that prioritize water and power conservation
and efficiency measures and, to the extent actions involving
the development or acquisition of power generation are
included, renewable energy technologies (including
hydropower);
``(iii) the potential costs and timeline for the actions
recommended under this subparagraph;

[[Page S689]]

``(iv) provisions for modifying the actions and timeline to
adapt to new information or circumstances; and
``(v) a description of public input regarding the proposed
actions, including input from water users that have covered
power use and the degree to which those water users concur
with the recommendations.
``(2) Implementation.--Not later than 180 days after the
date of submission of the report under paragraph (1), the
Secretary shall implement those recommendations described in
the report that the Secretary determines will ensure that the
net delivered power cost for covered power use is equal to or
less than the power cost benchmark, subject to availability
of appropriations, on the fastest practicable timeline.
``(3) Annual reports.--The Secretary shall submit to each
Committee described in paragraph (1) annual reports
describing progress achieved in meeting the requirements of
this subsection.
``(d) Treatment of Power Purchases.--
``(1) In general.--Any purchase of power by the Secretary
under this section shall be considered to be an authorized
sale for purposes of section 5(b)(3) of the Pacific Northwest
Electric Power Planning and Conservation Act (16 U.S.C.
839c(b)(3)).
``(2) Effect.--Nothing in this section authorizes the
Bonneville Power Administration to make a sale of power from
the Federal Columbia River Power System at rates, terms, or
conditions better than those afforded preference customers of
the Bonneville Power Administration.
``(e) Goals.--The goals of activities under subsections (b)
and (c) shall include, as applicable--
``(1) the short-term and long-term reduction and resolution
of conflicts relating to water in the Klamath Basin
watershed; and
``(2) compatibility and utility for protecting natural
resources throughout the Klamath Basin watershed, including
the protection, preservation, and restoration of Klamath
River tribal fishery resources, particularly through
collaboratively developed agreements.
``(f) Pumping Plant D.--The Secretary may enter into 1 or
more agreements with the Tulelake Irrigation District to
reimburse the Tulelake Irrigation District for not more than
69 percent of the cost incurred by the Tulelake Irrigation
District for the operation and maintenance of Pumping Plant
D, on the condition that the cost benefits the United
States.''.
(b) Conveyance of Non-Project Water; Replacement of C
Canal.--
(1) Definition of klamath project.--In this subsection:
(A) In general.--The term ``Klamath Project'' means the
Bureau of Reclamation project in the States of California and
Oregon.
(B) Inclusions.--The term ``Klamath Project'' includes any
dams, canals, and other works and interests for water
diversion, storage, delivery, and drainage, flood control,
and similar functions that are part of the project described
in subparagraph (A).
(2) Conveyance of non-project water.--
(A) In general.--An entity operating under a contract
entered into with the United States for the operation and
maintenance of Klamath Project works or facilities, and an
entity operating any work or facility not owned by the United
States that receives Klamath Project water, may use any of
the Klamath Project works or facilities to convey non-Klamath
Project water for any authorized purpose of the Klamath
Project, subject to subparagraphs (B) and (C).
(B) Permits; measurement.--An addition, conveyance, and use
of water pursuant to subparagraph (A) shall be subject to the
requirements that--
(i) the applicable entity shall secure all permits required
under State or local laws; and
(ii) all water delivered into, or taken out of, a Klamath
Project facility pursuant to that subparagraph shall be
measured.
(C) Effect.--A use of Klamath Project water under this
paragraph shall not--
(i) adversely affect the delivery of water to any water
user or land served by the Klamath Project; or
(ii) result in any additional cost to the United States.
(3) Replacement of c canal flume.--The replacement of the C
Canal flume within the Klamath Project shall be considered to
be, and shall receive the treatment authorized for, emergency
extraordinary operation and maintenance work in accordance
with 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.)).
(c) Administration.--
(1) Compliance.--In implementing this section and the
amendments made by this section, the Secretary of the
Interior shall comply with--
(A) the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.);
(B) the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.); and
(C) all other applicable laws.
(2) Effect.--Nothing in this section--
(A) modifies the authorities or obligations of the United
States with respect to the tribal trust and treaty
obligations of the United States; or
(B) creates or determines water rights or affects water
rights or water right claims in existence on the date of
enactment of this Act.
______