Authorizes the Secretary of the Interior, as an alternative to providing for the electrification of the Chandler Pumping Plant and Powerplant operations at Prosser Diversion Dam, Washington, to use not more than $4 million of sums appropriated for the electrification to study the engineering feasibility of exchanging water from the Columbia River for water historically diverted from the Yakima River. Requires the Secretary, in coordination with the Kennewick Irrigation District and in consultation with the Bonneville Power Administration, to: (1) prepare a report that describes project benefits and contains feasibility level designs and cost estimates; (2) secure the critical right-of-way areas for the pipeline alignment; (3) prepare an environmental assessment; and (4) conduct such other studies or investigations as are necessary to develop a water exchange. Requires that the rate to be utilized in determining the cost of power needed for the electrification or water exchange be the rate prescribed under current law or the equivalent of such rate.