Creates the Columbia river water delivery account in the state treasury.

Provides, on July 1, 2008, and each July 1st thereafter for the duration of the agreements described in this act, the state treasurer shall transfer moneys from the general fund into the Columbia river water delivery account in the amounts described in this act.

Provides, subject to appropriations, on July 1, 2008, and each July 1st thereafter, the state treasurer shall distribute moneys from the Columbia river water delivery account as specified in this act.

Requires the department of ecology to, by November 15, 2009: (1) Conduct an assessment of the potential impacts, including recommendations for mitigation, and report to appropriate committees of the legislature; and

(2) Establish a process for identifying and reporting on future impacts on the affected counties, and for making recommendations for mitigation.

Requires the department of ecology to: (1) Provide technical assistance to help affected counties identify and develop competitive project applications to benefit both instream and out-of-stream uses;

(2) Assist affected counties in exploring options to ensure water resources are available for their current and future needs. Such options include pursuing a memorandum of understanding with the affected counties that is consistent with RCW 90.90.005 to effectuate the purposes of this act. The memorandum of understanding shall be available for public comment for a period of thirty days before being signed by the department; and

(3) Consider regional equity when making funding decisions on water supply applications.