Provides that the Columbia river basin water supply development account is intended to fund projects using tax exempt bonds.

Authorizes expenditures from the Columbia river basin water supply development account to be used to develop pump exchanges.

Creates the Columbia river basin taxable bond water supply development account and the Columbia river basin water supply revenue recovery account.

Addresses the use of funds from the accounts with regard to the allocation of water supplies secured through the development of new storage facilities.

Requires two-thirds of the water made available through reoperation of Sullivan lake to be used to supply or offset out-of-stream uses in certain counties.