"NEW SECTION.  Sec. 1   A new section is added to chapter 90.90 RCW to read as follows:
     (1) In 2006, the legislature enacted chapter 6, Laws of 2006, an act relating to water resource management in the Columbia river basin. In its enactment, the legislature established that a key priority of water resource management in the Columbia river basin is the development of new water supplies to meet economic and community development needs concurrent with instream flow needs.
     (2) Consistent with this intent, the governor and the legislature are in agreement with the Confederated Tribes of the Colville Reservation and the Spokane Tribe of Indians to support additional releases of water from Lake Roosevelt. Because the sovereign and proprietary interests of these tribal governments are directly affected by water levels in Lake Roosevelt, the state intends to share a portion of the benefits derived from Lake Roosevelt water releases and to mitigate for any impacts such releases may have upon the tribes.
     (3) These new releases of Lake Roosevelt water of approximately eighty-two thousand five hundred acre feet of water, increasing to no more than one hundred thirty-two thousand five hundred acre feet of water in drought years, will bolster the state economy and will meet the following critical needs: New surface water supplies for farmers to replace the use of diminishing groundwater in the Odessa aquifer; new water supplies for municipalities with pending water right applications; enhanced certainty for agricultural water users with water rights that are interruptible during times of drought; and water to increase flows in the river when salmon need it most.
     (4) Nothing in chapter . . . , Laws of 2008 (this act) expands, impairs, or otherwise affects the existing status and sovereignty of the tribal governments involved in Lake Roosevelt water releases pursuant to this section and section 2 of this act.

NEW SECTION.  Sec. 2   A new section is added to chapter 90.90 RCW to read as follows:
     (1) The Columbia river water delivery account is created in the state treasury. Moneys in the account may be spent only after appropriation. The account consists of all moneys transferred or appropriated to the account by law. The legislature may appropriate moneys in the account:
     (a) For distributions for purposes of section 1 of this act as provided in this section; and
     (b) To the department of ecology for other purposes relating to implementation of sections 1 and 3 of this act.
     (2) On July 1, 2008, and each July 1st thereafter for the duration of the agreements described in section 1 of this act, the state treasurer shall transfer moneys from the general fund into the Columbia river water delivery account in the amounts described in subsection (3) of this section.
     (3) 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 follows:
     (a) To the Confederated Tribes of the Colville Reservation, on July 1, 2008, the sum of three million seven hundred seventy-five thousand dollars; and on July 1, 2009, the sum of three million six hundred twenty-five thousand dollars. Each July 1st thereafter for the duration of the agreement, the treasurer shall distribute an amount equal to the previous year's distribution adjusted for inflation. The inflation adjustment shall be computed using the percentage change on the implicit price deflator for personal consumption expenditures for the United States for the previous calendar year, as compiled by the bureau of economic analysis of the United States department of commerce and reported in the most recent quarterly publication of the economic and revenue forecast council or successor agency.
     (b) To the Spokane Tribe of Indians, on July 1, 2008, the sum of two million two hundred fifty thousand dollars. Each July 1st thereafter for the duration of the agreement, the treasurer shall distribute an amount equal to the previous year's distribution adjusted for inflation. The inflation adjustment shall be computed using the percentage change in the consumer price index for the Washington state Seattle-Tacoma-Bremerton consolidated metropolitan statistical area for the previous calendar year as compiled by the bureau of labor statistics, United States department of labor, and reported in the most recent quarterly publication of the economic and revenue forecast council or successor agency.
     (4) The state treasurer may not distribute moneys from the Columbia river water delivery account to a tribe pursuant to this section unless the director of ecology has certified in writing to the state treasurer and the legislature that the agreement with the tribes is still in effect.

NEW SECTION.  Sec. 3   A new section is added to chapter 90.90 RCW to read as follows:
     (1) Because the potential impacts of water releases under agreements reached under this chapter on affected counties are unknown, the department of ecology shall, by November 15, 2009:
     (a) Conduct an assessment of the potential impacts, including recommendations for mitigation, and report to appropriate committees of the legislature; and
     (b) Establish a process for identifying and reporting on future impacts on the affected counties, and for making recommendations for mitigation.
     (2) Within the framework of Columbia river basin water resources management under this chapter, the department of ecology shall:
     (a) Provide technical assistance to help affected counties identify and develop competitive project applications to benefit both instream and out-of-stream uses;
     (b) Assist affected counties in exploring all feasible options, including policy options, to protect and preserve local access to water resources, including pursuing a memorandum of understanding with the affected counties that is consistent with RCW 90.90.005 to effectuate the purposes of this section. The memorandum of understanding shall be available for public comment for a period of thirty days before being signed by the department; and
     (c) Consider regional equity when making funding decisions on water supply applications.
     (3) As used in this section, "affected counties" means those counties east of the crest of the Cascade mountains with an international border, or those counties east of the crest of the Cascade mountains that border both a county with an international border and a county with four hundred thousand or more residents.

NEW SECTION.  Sec. 4   The sum of six million twenty-five thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2009, from the Columbia river water delivery account to the state treasurer solely for distribution as provided in section 2 of this act.

NEW SECTION.  Sec. 5   The sum of two million one hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2009, from the general fund to the Columbia river water delivery account for the purposes established in section 6 of this act.

NEW SECTION.  Sec. 6   (1) The sum of two million dollars is appropriated for the fiscal year ending June 30, 2009, from the Columbia river water delivery account to the department of ecology for distribution to affected counties as defined in section 3 of this act to mitigate for negative impacts caused by releases of Lake Roosevelt water for the purposes described in section 1 of this act. The criteria for allocating these funds shall be developed by the department in consultation with affected local governments.
     (2) The sum of one hundred fifty thousand dollars is appropriated for the fiscal year ending June 30, 2009, from the Columbia river water delivery account to the department of ecology to retain a contractor to perform an independent analysis of options, including legislative options, to protect rural communities in northeast Washington from disproportionate economic, agricultural, and environmental impacts that may occur when upstream water rights are purchased and transferred for use, or idled and used as mitigation, in a downstream watershed or county. Before retaining a contractor, the department shall consult with affected counties as defined in section 3 of this act. The contractor selected shall conduct the independent analysis and develop a report describing options and recommended actions. The department of ecology shall provide the report to the appropriate committees of the legislature by December 1, 2008.

NEW SECTION.  Sec. 7   This act takes effect July 1, 2008."