In 2004, the Water Supply Project partners moved forward to fund the Draft PR/EIS phase of the Project. Because one of the proposed options is to raise Scoggins Dam, which is a federal facility, the project will be guided by the National Environmental Policy Act (NEPA). A Draft PR/EIS is a required step of the NEPA process. The EIS is a detailed analysis of the environmental impacts of "action alternatives." The Draft PR/EIS will be issued by the US Bureau of Reclamation as the federal partner in the project.

The cost of completing the draft and final PR/EIS is estimated at $6.87 million of which $3.97 million will be provided by local partners. Since 2005, congress has appropriated $1.46 million toward the project. Partners are working with the Oregon Congressional delegation and US Bureau of Reclamation officials to secure the additional $1.44 million necessary to complete the Draft PR/EIS.