[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1906 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1906

  To amend the Central Valley Project Improvement Act, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 1995

Mr. Doolittle (for himself, Mr. Radanovich, Mr. Condit, Mr. Thomas, Mr. 
Herger, Mr. Fazio of California, Mr. Pombo, and Mr. Dooley) introduced 
  the following bill; which was referred to the Committee on Resources

_______________________________________________________________________

                                 A BILL


 
  To amend the Central Valley Project Improvement Act, and for other 
                               purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Central Valley Project Reform Act of 
1995''.

SEC. 2. PURPOSE.

    Section 3402(f) of the Central Valley Project Improvement Act (106 
Stat. 4706) is amended to read as follows:
            ``(f) to require that the Secretary operate the Central 
        Valley Project in a manner to achieve a reasonable balance 
        among competing demands for use of Central Valley Project 
        water, including the requirements of fish and wildlife, 
        agricultural, municipal and industrial and power 
        contractors.''.

SEC. 3. DEFINITIONS.

    (a) Anadromous Fish.--Section 3403(a) of the Central Valley Project 
Improvement Act (106 Stat. 4707) is amended to read as follows:
            ``(a) the term `anadromous fish' means those stocks of 
        Salmon (including steelhead) that ascend the Sacramento and San 
        Joaquin rivers and their tributaries and the Sacramento-San 
        Joaquin Delta to reproduce after maturing in San Francisco Bay 
        or the Pacific Ocean;''.
    (b) Central Valley Project Water.--Section 3403(f) of the Central 
Valley Project Improvement Act (106 Stat. 4707) is amended to read as 
follows:
            ``(f) the term `Central Valley Project water' means all 
        water that is developed, diverted, stored, or delivered by the 
        Secretary in accordance with the statutes authorizing the 
        Central Valley Project and in accordance with the terms and 
        conditions of water rights permits or licenses acquired by or 
        issued to the United States pursuant to California law;''.
    (c) Repayment and Water Service Contracts.--Section 3403(k) of the 
Central Valley Project Improvement Act (106 Stat. 4707) is amended to 
read as follows:
            ``(k) the terms `repayment contract' and `water service 
        contract' have the same meaning as provided in sections 9(d) 
        and 9(e) of the Reclamation Project Act of 1939 (53 Stat. 1187, 
        1195), as amended, but such terms do not include those 
        contracts which contain terms or agreements for water right 
        settlements, such as those on the Sacramento River, or water 
        right exchanges, notwithstanding that such contracts may also 
        include provisions which are the same or similar to those 
        contained in repayment or water service contracts;''.

SEC. 4. LIMITATION ON CONTRACTING AND CONTRACT REFORM.

    (a) New Contracts.--Section 3404(a) of the Central Valley Project 
Improvement Act (106 Stat. 4708) is amended to read as follows:
    ``(a) New Contracts.--Except as provided in subsection (b) of this 
section, the Secretary shall not enter into any new short-term, 
temporary, or long-term contracts or agreements for water supply from 
the Central Valley Project for any purpose other than fish and wildlife 
before the Secretary has completed appropriate environmental review, 
including the preparation of the environmental impact statement 
required in section 3409 of this title, and has determined that there 
is sufficient water to meet the existing contractual and legal 
obligations of the Secretary relative to the Central Valley Project.''.
    (b) Renewal of Existing Long-Term Contracts.--Section 3404 of the 
Central Valley Project Improvement Act (106 Stat. 4708) is amended--
            (1) by amending subsection (c) to read as follows:
    ``(c) Renewal of Existing Long-Term Contracts.--Notwithstanding the 
provisions of the Act of July 2, 1956 (70 Stat. 483), the Secretary 
shall, upon request, renew any existing long-term repayment or water 
service contracts which provide for the delivery of water from the 
Central Valley Project for a period of twenty-five years and shall 
renew such contracts for successive periods of 25 years each.
            ``(1) No such renewals shall be authorized until 
        appropriate environmental review, including the preparation of 
        the environmental impact statement required in section 3409 of 
        this title, has been completed. Contracts which expire prior to 
        the completion of the environmental impact statement required 
        by section 3409 shall, upon request of the other contracting 
        party, be renewed for an interim period ending on the date on 
        which the long-term renewal with respect to each such contract 
        becomes effective. Such interim renewal contracts shall be 
        modified to comply with existing law, including provisions of 
        this title. Upon request of the other contracting party, the 
        Secretary shall execute an amendment to extend the term of any 
        interim renewal contract entered into under this paragraph 
        before the enactment of the Central Valley Project Reform Act 
        of 1995 in accordance with this title. Notwithstanding any 
        other provision of law, all contracts renewed by the Secretary 
        since January 1, 1988, but before the enactment of this title 
        are hereby validated and ratified in all respects as of their 
        respective dates of execution, except that all water delivered 
        pursuant to such renewed contracts shall be subject to payment 
        of the charges mandated in sections 3406(c)(1)(D) and 3407(d) 
        of this title.
            ``(2) Upon renewal of any long-term repayment or water 
        service contract providing for the delivery of water from the 
        Central Valley Project, the Secretary shall incorporate all 
        requirements imposed by existing law, including provisions of 
        this title, within such renewed contracts. The Secretary shall 
        also administer all existing, new, and renewed contracts in 
        conformance with the requirements and goals of this title.''; 
        and
            (2) by adding at the end thereof the following new 
        subsection:
    ``(d) Contracts entered into or renewed pursuant to this section 
shall, upon request of the other contracting party, include a provision 
which requires the Secretary to charge such party only for water 
actually delivered by the Secretary.''.

SEC. 5. WATER TRANSFERS, IMPROVED WATER MANAGEMENT AND CONSERVATION.

    (a) Conditions for Transfer.--The matter preceding subparagraph (A) 
in section 3405(a)(1) of the Central Valley Project Improvement Act 
(106 Stat. 4710) is amended to read as follows:
            ``(1) Conditions for transfers.--All transfers of Central 
        Valley Project water authorized by the subsection shall be 
        subject to review and approval by the Secretary and the 
        contracting district or agency under the conditions specified 
        in this subsection:''.
    (b) Technical Amendment.--Section 3405(a)(1)(A) of the Central 
Valley Project Improvement Act (106 Stat. 4710) is amended by striking 
``to combination'' and inserting ``or combination''.
    (c) Approval of Transfer Request.--Subparagraphs (J), (K), (L), and 
(M) of section 3405(a)(1) of the Central Valley Project Improvement Act 
(106 Stat. 4711) are amended to read as follows:
                    ``(J) The contracting district or agency shall 
                either approve the transfer request subject to 
                reasonable conditions or deny the transfer request 
                subject to making findings supporting a reasonable 
                basis for the denial. The conditions or findings shall 
                only relate to the proposed transfer's impacts on any 
                of the following:
                            ``(i) The quantity and quality of the water 
                        supply available to the contracting district or 
                        agency and its water users, including impacts 
                        to ground water quantity and quality.
                            ``(ii) The contracting district or agency's 
                        operations, including (but not limited to) the 
                        ability of the contracting district or agency 
                        to meet its delivery obligations, obtain 
                        additional water supplies, and undertake 
                        conservation measures, exchanges, transfers, 
                        ground water storage, water banking 
                        arrangements, or conjunctive use programs.
                            ``(iii) The contracting district or 
                        agency's financial condition and the cost of 
                        providing water service.
                            ``(iv) The appropriate maintenance of 
                        fallowed land.
                            ``(v) Other relevant factors that may 
                        create an adverse financial, operations or 
                        water supply impact on the contracting district 
                        or agency, its water users, or the local 
                        community.
                    ``(K) The Secretary shall not alter an approval or 
                denial by the contracting district or agency under 
                subparagraph (J) of this section unless the Secretary 
                determines, consistent with paragraph 3405(a)(2) of 
                this title, that such transfer would result in a 
                significant reduction in the quantity or decrease in 
                the quality of water supplies currently used for fish 
                and wildlife purposes, except in the event that the 
                Secretary determines pursuant to findings setting forth 
                the basis for such determination that such adverse 
                effects would be more than offset by the benefits of 
                the proposed transfer. In the event of such a 
                determination, the Secretary shall develop and 
                implement alternative measures and mitigation 
                activities as integral and concurrent elements of any 
                such transfer to provide fish and wildlife benefits 
                substantially equivalent to those lost as a consequence 
                of such transfer.
                    ``(L) Transfers between Central Valley Project 
                contractors within counties, watersheds, or other areas 
                of origin, as those terms are utilized under California 
                law, shall be deemed to meet the conditions set forth 
                in subparagraphs (A) and (I) of this paragraph.''.
    (d) Transfers After September 30, 1999.--Section 3405(a)(3) of the 
Central Valley Project Improvement Act (106 Stat. 4712) is amended to 
read as follows:
            ``(3) Transfers after september 30, 1999.--Transfers 
        executed after September 30, 1999, shall only be governed by 
        the provisions of sections 3405(a)(1)(A)-(C), (E), (F), (G), 
        (H), (I), (K), and (L) of this title, and by State law.''.
    (e) Transfers, Exchanges, and Banking Arrangements Under Prior 
Law.--Section 3405(a) of the Central Valley Project Improvement Act 
(106 Stat. 4709) is amended by adding at the end the following:
            ``(4) Transfers, exchanges, and banking arrangements under 
        prior law.--Notwithstanding any other provision of law, the 
        authority to make transfers, exchanges, and banking 
        arrangements of Central Valley Project water which could have 
        been conducted prior to the enactment of this title is 
        continued hereby, and such transfers, exchanges, and banking 
        arrangements shall not be subject to, limited, or conditioned 
        by this title.''.
    (f) Measurement of Water Use Required.--The heading of subsection 
(b) of section 3405 of the Central Valley Project Improvement Act (106 
Stat. 4712) is amended by striking ``Metering'' and inserting 
``Measurement''.
    (g) Water Conservation Standards.--Section 3405 of the Central 
Valley Project Improvement Act (106 Stat. 4709) is amended by striking 
out subsection (d), redesignating subsections (e) and (f) as 
subsections (d) and (e), and amending subsections (d) and (e) (as so 
redesignated) to read as follows:
    ``(d) Water Conservation Standards.--(1) The Secretary shall 
establish and administer an office of Central Valley Project water 
conservation best management practices that shall, in consultation with 
the Secretary of Agriculture, the California Department of Water 
Resources, California academic institutions, and Central Valley Project 
water users, develop criteria for evaluating the adequacy of all water 
conservation plans developed by project contractors, including those 
plans required by section 210 of the Reclamation Reform Act of 1982. In 
developing the criteria described in this paragraph for refuges, in 
addition to consulting with the Secretary of Agriculture, the 
California Department of Water Resources, California academic 
institutions, and Central Valley Project water users, the Secretary 
shall consult with the California Department of Fish and Game.
    ``(2) Criteria developed pursuant to this subsection shall apply 
only to Central Valley Project water and shall be established within 
six months following enactment of this title and shall be reviewed 
periodically thereafter, but no less than every five years, with the 
purpose of promoting the highest level of water use efficiency 
reasonably achievable by project contractors using best available cost-
effective technology and best management practices. The criteria shall 
include, but not be limited to agricultural water suppliers' efficient 
water management practices developed pursuant to California State law 
or reasonable alternatives. The conservation guidelines and criteria 
may include only those management practices and conservation measures 
which (A) are demonstrated by the Secretary to achieve significant 
water conservation and efficient management of water resources without 
unreasonably burdening project contractors or their water users, (B) 
are demonstrated by the Secretary to be practices or measures that are 
cost-effective and economically feasible under applicable 
circumstances, and (C) take into consideration the amount of water 
under contract to the project contractor, probable Central Valley 
Project water supply, economic resources, geography, and other factors 
relevant to that project contractor.
    ``(3) The Secretary, through the office established under this 
subsection, shall review and evaluate within 18 months following 
enactment of this title all existing conservation plans submitted by 
project contractors to determine whether they meet the conservation and 
efficiency criteria established pursuant to this subsection.
    ``(4) The Secretary shall approve or disapprove a water 
conservation plan within 90 days after such plan is submitted under 
this subsection. A water conservation plan shall be deemed to be 
approved if the Secretary fails to approve or disapprove such plan 
within such 90-day period.
    ``(5) Water conserved by a project contractor or water user 
pursuant to a plan approved under this subsection shall accrue, in a 
manner consistent with State law, to the benefit of such project 
contractor or water user.
    ``(6) Compliance with conservation guidelines and criteria 
developed pursuant to this subsection shall be deemed compliance with 
section 210 of the Reclamation Reform Act of 1982 (43 U.S.C. 390jj).
    ``(e) Increased Revenues.--All increased revenues received by the 
Secretary which exceed the cost of service rate applicable to the 
delivery of water transferred from irrigation use to municipal and 
industrial use under subsection (a) shall be covered to the Restoration 
Fund.''.

SEC. 6. FISH, WILDLIFE AND HABITAT RESTORATION.

    (a) Satisfaction of Purposes.--Section 3406 of the Central Valley 
Project Improvement Act (106 Stat. 4714) is amended by adding at the 
end the following new subsection:
    ``(i) Satisfaction of Purposes.--By pursuing the programs and 
activities authorized by this section, the Secretary shall be deemed to 
have met the mitigation, protection, restoration, and enhancement 
purposes of section 2 of the Act of August 26, 1937 (ch. 832, 50 Stat. 
850), as amended.''.
    (b) Fish and Wildlife Restoration Activities.--(1) The matter 
preceding subparagraph (A) of section 3406(b)(1) of the Central Valley 
Project Improvement Act (106 Stat. 4714) is amended to read as follows:
            ``(1) assist the State of California in pursuing its goal 
        of doubling production of anadromous fish in Central Valley 
        rivers and streams in accordance with the program specified in 
        the report prepared by the California Department of Fish and 
        Game entitled `Central Valley Salmon and Steelhead Restoration 
        and Enhancement Plan', dated April 1990, through the actions 
        specified in this subsection, with priority given to those 
        actions specified in paragraphs (4) through (22): Provided, 
        That this goal shall not apply to the San Joaquin River between 
        Friant Dam and the Mendota Pool, for which separate provision 
        has been made under section 3406(c) of this title: Provided 
        further, That in the course of assisting the State of 
        California, the Secretary shall make all reasonable efforts 
        consistent with the requirements of this section to address 
        other identified adverse environmental impacts of the Central 
        Valley Project not specifically enumerated in this section.''.
    (2) Subparagraphs (B) and (C) of section 3406(b)(1) of the Central 
Valley Project Improvement Act (106 Stat. 4714) are amended to read as 
follows:
                    ``(B) As needed to achieve the goals of this 
                program, the Secretary is authorized and directed to 
                modify Central Valley Project operations to provide 
                reasonable flows of suitable quality, quantity, and 
                timing to protect all life stages of anadromous fish, 
                except that such flows shall be provided from the 
                quantity of water reserved for fish, wildlife, and 
                habitat restoration purposes under paragraph (2) of 
                this subsection; from the water supplies acquired 
                pursuant to paragraph (3) of this subsection; and from 
                other sources which do not conflict with fulfillment of 
                the Secretary's remaining contractual obligations to 
                provide Central Valley Project water for other 
                authorized purposes. Reasonable instream flow needs for 
                all Central Valley Project controlled streams and 
                rivers shall be determined by the Secretary based on 
                recommendations of the United States Fish and Wildlife 
                Service after consultation with the California 
                Department of Fish and Game.
                    ``(C) The Secretary shall cooperate with the State 
                of California to ensure that, to the greatest degree 
                practicable, the specific quantities of Central Valley 
                Project water reserved and managed for fish and 
                wildlife purposes under this title are credited against 
                any additional obligations of the Central Valley 
                Project which may be imposed by the State of California 
                following enactment of this title, including but not 
                limited to increased flow and reduced export 
                obligations which may be imposed by the California 
                State Water Resources Control Board in implementing San 
                Francisco Bay/Sacramento-San Joaquin Delta Estuary 
                standards pursuant to the review ordered by the 
                California Court of Appeals in United States v. State 
                Water Resources Control Board, 182 Cal. App. 3d 82 
                (1986), and that, to the greatest degree practicable, 
                the programs and plans required by this title are 
                developed and implemented in a way that avoids 
                inconsistent or duplicative obligations from being 
                imposed upon Central Valley Project water and power 
                contractors.''.
    (3) Section 3406(b)(2) of the Central Valley Project Improvement 
Act (106 Stat. 4714) is amended to read as follows:
            ``(2) upon enactment of this title, reserve and manage 
        annually 800,000 acre-feet of Central Valley Project water, 
        excluding any Central Valley Project water delivered under the 
        Contract for Exchange of Waters described in subsection 
        (c)(1)(C) of this section for the purposes of (A) implementing 
        the fish, wildlife, and habitat restoration purposes and 
        measures authorized by this title; (B) assisting the State of 
        California in its efforts to protect the waters of the San 
        Francisco Bay/Sacramento-San Joaquin Delta Estuary; and (C) 
        helping to meet such obligations as may be legally imposed upon 
        the Central Valley Project under State or Federal law following 
        the date of enactment of this title, including (but not limited 
        to) additional obligations under the Endangered Species Act of 
        1973: Provided, That all Central Valley Project water used to 
        assist the State of California in its efforts to protect the 
        water of the San Francisco Bay/Sacramento-San Joaquin Delta 
        Estuary and to help meet such obligations as may be legally 
        imposed upon the Central Valley Project under State or Federal 
        law following the date of enactment of this title, including 
        (but not limited to) additional obligations under the 
        Endangered Species Act of 1973, is credited to the amount of 
        Central Valley Project water so reserved under this paragraph: 
        Provided further, That the Central Valley Project water 
        reserved under this paragraph shall not be used to increase the 
        flow of water through the San Francisco Bay/Sacramento-San 
        Joaquin Delta Estuary beyond that required to meet the 
        requirements of the Bay/Delta Water Quality Control Plan, as 
        may be amended or modified, or the Endangered Species Act of 
        1973. To the fullest extent possible and in accordance with 
        section 3411 of this title, after using a quantity of such 
        800,000 acre-feet of water for fish and wildlife purposes 
        pursuant to this paragraph, the Secretary shall reuse or divert 
        such quantity of water for agricultural or municipal and 
        industrial purposes.
                    ``(A) Such quantity of water shall be in addition 
                to the quantities needed to implement subsection (d)(1) 
                of this title and in addition to all water allocated 
                pursuant to paragraph (23) of this subsection for 
                release to the Trinity
                 River for the purposes of fishery restoration, 
propagation, and maintenance; and shall be supplemented by all water 
that comes under the Secretary's control pursuant to subsection (b)(3), 
sections 3408(h)-(i), and through other measures consistent with 
paragraph (1)(B) of this subsection.
                    ``(B) Such quantity of water shall be managed 
                pursuant to reasonable conditions specified by the 
                United States Fish and Wildlife Service after 
                consultation with the Bureau of Reclamation and the 
                California Department of Water Resources and in 
                cooperation with the California Department of Fish and 
                Game.
                    ``(C) The Secretary may temporarily reduce 
                deliveries of the quantity of water reserved under this 
                paragraph up to 25 percent of such total whenever 
                reductions are imposed upon agricultural water service 
                contractors; Provided, That such reductions shall not 
                exceed in percentage terms the reductions imposed on 
                agricultural water service contractors; Provided 
                further, That nothing in this subsection or subsection 
                (d) shall require the Secretary to operate the project 
                in a way that jeopardizes human health or safety.
                    ``(D) If the quantity of water reserved under this 
                paragraph, or any portion thereof, is not needed for 
                the purposes of this section, based on a finding by the 
                Secretary, the Secretary is authorized to make such 
                water available for other project purposes.''.
    (4) Section 3406(b)(3) of the Central Valley Project Improvement 
Act (106 Stat. 4716) is amended to read as follows:
            ``(3) develop and implement a program in coordination and 
        in conformance with the plan required under paragraph (1) of 
        this subsection for the acquisition of a water supply to 
        supplement the quantity of water reserved for fish and wildlife 
        purposes under paragraph (2) of this subsection and to fulfill 
        the Secretary's obligations under subsection (d)(2). The 
        program should identify how the Secretary intends to utilize, 
        in particular the following options: improvements in or 
        modifications of the operations of the project; water banking; 
        conservation; transfers; conjunctive use; and temporary and 
        permanent land fallowing, including purchase, lease, and option 
        of water, water rights, and associated agricultural land.''.
    (5) Section 3406(b) of the Central Valley Project Improvement Act 
(106 Stat. 4714) is amended by striking paragraph (18) and by 
redesignating paragraphs (19) through (23) as paragraphs (18) through 
(22), respectively.
    (6) Section 3406(b)(22) of the Central Valley Project Improvement 
Act (106 Stat. 4716), as amended by paragraph (5) of this subsection, 
is amended to read as follows:
            ``(22)(A) In order to meet Federal trust responsibilities 
        to protect the fishery resources of the Hoopa Valley Tribe, and 
        to meet the fishery restoration goals of the Act of October 24, 
        1984, Public Law 98-541, provide through the Trinity River 
        Division, for water years 1992 through 1996, an instream 
        release of water to the Trinity River of not less than three 
        hundred and forty thousand acre-feet per year for the purposes 
        of fishery restoration, propagation, and maintenance.
            ``(B) By September 30, 1996, the Secretary, after 
        consultation with the Hoopa Valley Tribe, shall complete the 
        Trinity River Flow Evaluation Study currently being conducted 
        by the United States Fish and Wildlife Service under the 
        mandate of the Secretarial Decision of January 14, 1981, in a 
        manner which ensures the development of recommendations, based 
        on the best available scientific data, regarding permanent 
        instream fishery flow requirements and Trinity River Division 
        operating criteria and procedures for the restoration and 
        maintenance of the Trinity River fishery.
            ``(C) Not later than December 31, 1996, the Secretary shall 
        forward the recommendations of the Trinity River Flow 
        Evaluation Study, referred to in subparagraph (B) of this 
        paragraph, to the Committee on Energy and Natural Resources and 
        the Select Committee on Indian Affairs of the Senate and the 
        Committee on Resources of the House of Representatives. If the 
        Secretary and the Hoopa Valley Tribe concur in these 
        recommendations, any increase to the minimum Trinity River 
        instream fishery releases established under this paragraph and 
        the operating criteria and procedures referred to in 
        subparagraph (A) shall be implemented in accordance with 
        subparagraph (D). If the Hoopa Valley Tribe and the Secretary 
        do not concur, the minimum Trinity River instream fishery 
        releases established under subparagraph (A) shall remain in 
        effect unless increased by an Act of Congress, appropriate 
        judicial decree, or
         agreement between the Secretary and the Hoopa Valley Tribe 
implemented in accordance with subparagraph (D).
            ``(D) The Secretary may only implement recommendations 
        pursuant to the study referred to in subparagraph (B) relating 
        to instream flows through a rulemaking process under chapter 5 
        of title 5, United States Code (relating to administrative 
        procedure), with a comment period of not less than 60 days and 
        not more than 180 days. The studies and data on which such 
        recommendations are based shall be available for public review.
            ``(E) Any recommendation implemented pursuant to 
        subparagraph (D) shall provide for a variance in the instream 
        flow to take into account differing hydrologic and reservoir 
        storage conditions.
            ``(F) Costs associated with implementation of this 
        paragraph shall be reimbursable as operation and maintenance 
        expenditures pursuant to existing law.''.
    (7) Section 3406(c) of the Central Valley Project Improvement Act 
(106 Stat. 4721) is amended to read as follows:
    ``(c) San Joaquin and Stanislaus Rivers.--(1)(A) In furtherance of 
the purposes of this title, the Secretary shall cooperate with the 
State of California and local agencies and entities that impound and/or 
divert water tributary to the San Joaquin River in the development and 
implementation of projects to--
            ``(i) coordinate the flows in the Stanislaus, Tuolumne, 
        Merced, and San Joaquin Rivers and exports at the Tracy and 
        Banks pumping plants to facilitate increased survival of San 
        Joaquin River chinook salmon;
            ``(ii) develop and implement a program in the San Joaquin 
        River and its tributaries to identify, restore, and improve 
        channel and riffle locations, to clean spawning gravel of fine 
        sediments, and to reduce sediment input from near stream and 
        watershed areas due to erosion and land management practices;
            ``(iii)(I) establish a gene bank to ensure protection of 
        San Joaquin River fall-run chinook salmon genetic material in 
        the event of catastrophic loss, (II) selectively harvest 
        hatchery fish to encourage increases in wild stocks of San 
        Joaquin River fall-run chinook salmon, (III) mark all hatchery 
        San Joaquin River fall-run chinook salmon to allow their 
        identification in ocean and inland fisheries, (IV) capture and 
        breed wild San Joaquin River fall-run chinook salmon to enhance 
        wild populations, and (V) establish a genetic advisory 
        committee to provide advice to the Secretary on the protection 
        of San Joaquin River fall-run chinook salmon genetic material, 
        which committee shall be composed of experts from academia, 
        fishery management agencies, and water management agencies;
            ``(iv) install a minimum of six telemetry devices on the 
        San Joaquin River and tributary channels for the purposes of 
        estimating the current overall water quality conditions in the 
        San Joaquin Basin, which information shall be made available 
        for water managers to coordinate water management decisions;
            ``(v) develop a plan to restore and manage the riparian 
        corridor of the San Joaquin River and its tributaries, 
        including areas on both sides of river channels where flood 
        frequency is sufficient to sustain riparian vegetation with the 
        goals to restore areas where the corridor is gone and to 
        develop action items for riparian vegetation where the value of 
        fish and wildlife is reduced by land use practices;
            ``(vi) initiate a program of screening water diversions in 
        the San Joaquin River, its tributaries and estuary, which 
        program will locate, inventory, prioritize and select candidate 
        sites and include installation and long-term maintenance as 
        necessary;
            ``(vii) increase fall flows and install physical and/or 
        mechanical solutions as appropriate in the Stanislaus, 
        Tuolumne, and Merced rivers to attract and provide access to 
        adult San Joaquin River chinook salmon and maintain suitable 
        water temperatures for spawning: Provided, That any increase in 
        flows shall be implemented only through purchase of water from 
        willing sellers, water augmentation projects, and/or additional 
        storage to increase export flexibility or other similar 
        voluntary means: Provided further, That flow increases shall be 
        integrated with physical and mechanical solutions which can 
        lead to improved guidance flows and water quality in the lower 
        San Joaquin River, such as a barrier at the head of Old River 
        and/or an aeration device at Rough and Ready Island;
            ``(viii) evaluate methods to protect San Joaquin River 
        chinook salmon stocks in the ocean and estuarine fisheries, 
        mark all hatchery-produced San Joaquin River chinook salmon, 
        evaluate San Joaquin River chinook salmon `shaker' mortality, 
        and coordinate additional salmon management practices which 
        will contribute to increasing salmon reproduction and 
        survivability;
            ``(ix) undertake measures to reduce salmon predator 
        populations in the San Joaquin River, its tributaries, and 
        other areas such as Clifton Court Forebay, including (but not 
        limited to) encouraging predator harvest, voluntary increases 
        in flows during spring outmigration, reducing water 
        temperatures in summer, increasing turbidity during 
        outmigration, removing predator concentrating features, and 
        modifying channels to isolate predator habitat; and
            ``(x) provide for the annual installation during October to 
        December of a barrier to divert returning adult San Joaquin 
        River chinook salmon from the San Joaquin River into the Merced 
        River, including acquisition of a site at the confluence of the 
        San Joaquin River and the Merced River for barrier installation 
        and operation;
            ``(xi) provide resources to the San Joaquin River 
        Conservancy to assist in its overall efforts, including, but 
        not limited to, land acquisition, natural resource surveys, and 
        environmental studies that may be necessary for successful 
        implementation of the San Joaquin River Parkway; and
            ``(xii) provide one-third matching funds for the annual 
        operating budget for the hatchery at the Tuolumne River Salmon 
        Restoration Center.
    ``(B) Funding for the projects described in subparagraph (A) shall 
be provided under sections 3407(b) and 3407(e). Funds provided pursuant 
to such sections may not be used for any action to address fish, 
wildlife and habitat concerns on the San Joaquin River downstream from 
Friant Dam, including (but not limited to) stream flow, channel, 
riparian habitat, and water quality improvements, until the Secretary 
determines that such action is reasonable, prudent and feasible. Any 
such action shall be subject to subparagraph (C).
    ``(C) The Congress hereby confirms that it is and has been its 
intent to prohibit all releases of water directly from Friant Dam into 
the San Joaquin River other than for bona fide purposes of (i) flood 
control, (ii) satisfying the requirements of that certain Contract for 
Exchange of Waters dated July 27, 1939, between the United States of 
America, the San Joaquin & Kings River Canal & Irrigation Company, 
Incorporated, the Columbia Canal Company, the San Luis Canal Company 
and the Firebaugh Canal Company, as amended from time to time, or (iii) 
satisfying those contractual obligations of the Secretary which existed 
on the date of enactment of this title to provide water to landowners 
located between Friant Dam and Gravelly Ford. Therefore, 
notwithstanding any State or other Federal law, water shall not be 
released directly from Friant Dam into the San Joaquin River except for 
the purposes enumerated in clauses (i), (ii), and (iii) of the 
preceding sentence.
    ``(D) In lieu of releasing water directly from Friant Dam into the 
San Joaquin River for any purposes of this title, entities receiving 
Central Valley Project water from the Friant Division of the Central 
Valley Project shall be assessed, in addition to all other applicable 
charges, a surcharge for all Class 1 and Class 2 water delivered in an 
amount that will result in collection, during each fiscal year, of 
$6,000,000. Such surcharge shall be in the amount of $4.00 per acre-
foot and shall not apply to Class 2 water delivered in excess of 50 
percent of the amount of Class 2 water to which a contracting party is 
contractually entitled.
    ``(E) Except as expressly provided in subparagraphs (C) and (D), 
nothing contained in those subparagraphs shall otherwise alter the 
applicability or inapplicability of State or other Federal law to 
entities receiving Central Valley Project water from the Friant 
Division of the Central Valley Project.
    ``(2) The Secretary shall, by not later than September 30, 1996, in 
the course of preparing the Stanislaus River Basin and Calaveras River 
Water Use Program Environmental Impact Statement and in consultation 
with the State of California, affected counties, and other interests, 
evaluate and determine existing and anticipated future basin needs in 
the Stanislaus River Basin. In the course of such evaluation, the 
Secretary shall investigate alternative storage, release, and delivery 
regimes, including but not limited to conjunctive use operations, 
conservation strategies, exchange arrangements, and the use of base and 
channel maintenance flows, in order to best satisfy both basin and out-
of-basin needs consistent, on a continuing basis, with the limitations 
and priorities established in the Act of October 23, 1962 (76 Stat. 
173). For the purposes of this subparagraph, `basin needs' shall 
include water supply for agricultural, municipal and industrial uses, 
and maintenance and enhancement of water quality, and fish and wildlife 
resources within the Stanislaus River Basin as established by the 
Secretary's June 29, 1981 Record of Decision; and `out-of-basin' needs 
shall include all such needs outside of the Stanislaus River Basin, 
including those of the San Francisco Bay/Sacramento-San Joaquin Delta 
Estuary and those of the San Joaquin River under paragraph (1) of this 
subsection.''.
    (8) Section 3406(d) of the Central Valley Project Improvement Act 
(106 Stat. 4722) is amended to read as follows:
    ``(d) Central Valley Refuges and Wildlife Habitat Areas.--(1) In 
support of the objectives of the Central Valley Habitat Joint Venture 
and in furtherance of the purposes of this title, the Secretary shall 
provide, either directly or through contractual agreements with other 
appropriate parties, firm water supplies of suitable quality to 
maintain and improve wetland habitat areas on units of the National 
Wildlife Refuge System in the Central Valley of California; on the Gray 
Lodge, Los Banos, Volta, North Grasslands, and Mendota state wildlife 
management areas; and on the Grasslands Resources Conservation District 
in the Central Valley of California.
    ``(2) Upon enactment of this title and subject to paragraph (8) of 
this subsection, the quantity and delivery schedules of water measured 
at the boundaries of each wetland habitat area described in this 
paragraph shall be in accordance with level 2 of the `Dependable Water 
Supply Needs' table for those habitat areas as set forth in the Refuge 
Water Supply Report and two-thirds of the water supply needed for full 
habitat development for those habitat areas identified in the San 
Joaquin Basin Action Plan/Kesterson Mitigation Action Plan Report 
prepared by the Bureau of Reclamation. Such water shall be provided 
through long-term contractual agreements with appropriate parties and 
shall be supplemented by the increment of water provided for in 
paragraph (3) of this subsection: Provided, That the Secretary shall be 
obligated to provide such water whether or not such long-term 
contractual agreements are in effect. In implementing this paragraph, 
the Secretary shall endeavor to diversify sources of supply in order to 
minimize possible adverse effects upon Central Valley Project 
contractors.
    ``(3) Not later than ten years after enactment of this title and 
subject to paragraph (8) of this subsection, the quantity and delivery 
schedules of water measured at the boundaries of each wetland habitat 
area described in this paragraph shall be in accordance with level 4 of 
the `Dependable Water Supply Needs' table for those habitat areas as 
set forth in the Refuge Water Supply Report and the full water supply 
needed for full habitat development for those habitat areas identified 
in the San Joaquin Basin Action Plan/Kesterson Mitigation Action Plan 
Report prepared by the Bureau of Reclamation. The quantities of water 
required to supplement the quantities provided under paragraph (2) of 
this subsection shall be acquired by the Secretary in cooperation with 
the State of California and in consultation with the Central Valley 
Habitat Joint Venture and other interests in cumulating increments of 
not less than ten percent per annum through voluntary measures which 
include water conservation, conjunctive use, purchase, lease, 
donations, or similar activities, or a combination of such activities 
which do not require involuntary reallocations of project yield.
    ``(4) All costs associated with implementation of paragraph (2) of 
this subsection shall be deemed a nonreimbursable Federal expenditure. 
Incremental costs associated with implementation of paragraph (3) of 
this subsection shall be fully allocated in accordance with the 
following formula: 75 percent shall be deemed a nonreimbursable Federal 
expenditure; and 25 percent shall be allocated to the State of 
California for recovery through direct reimbursements or through 
equivalent in-kind contributions.
    ``(5) The Secretary shall temporarily reduce deliveries of the 
quantity of water dedicated under paragraph (2) of this subsection up 
to 25 percent of such total whenever reductions are imposed upon 
agricultural water service contractors served from the same Division of 
the Central Valley Project: Provided, That such reductions shall not 
exceed in percentage terms the reductions imposed on agricultural water 
service contractors. For the purpose of shortage allocation, the 
priority or priorities applicable to the increment of water provided 
under paragraph (3) of this subsection shall be the priority or 
priorities which applied to the water in question prior to its transfer 
to the purpose of providing such increment.
    ``(6) In order to minimize possible adverse impacts upon Central 
Valley Project water contractors, the Secretary is authorized and 
directed to construct or to acquire from non-Federal entities such 
water conveyance facilities, conveyance capacity, pumping capacity, and 
wells as are necessary to implement the requirements of this subsection 
within one year after enactment of this paragraph. To carry out this 
obligation, and without limiting other actions, the Secretary shall, in 
cooperation with the State of California and Central Valley Project 
water contractors, implement those immediate actions necessary to 
facilitate the acquisition of pumping and conveyance capacity from the 
State. Additional water that can be delivered as a result of the 
acquisition of such additional pumping and conveyance capacity shall be 
allocated in a manner which avoids water shortages to Central Valley 
Project water contractors and users.
    ``(7) The Secretary, in consultation with the State of California, 
the Central Valley Habitat Joint Venture, and other interests, shall 
investigate and report on the following supplemental actions by not 
later than September 30, 1997--
            ``(A) alternative means of improving the reliability and 
        quality of water supplies currently available to privately 
        owned wetlands in the Central Valley and the need, if any, for 
        additional supplies; and
            ``(B) water supply and delivery requirements necessary to 
        permit full habitat development for water dependent wildlife on 
        one hundred and twenty thousand acres supplemental to the 
        existing wetland habitat acreage identified in Table 8 of the 
        Central Valley Habitat Joint Venture's `Implementation Plan' 
        dated April 19, 1990, as well as feasible means of meeting 
        associated water supply requirements.
    ``(8) Not later than 180 days after the date of the enactment of 
the Central Valley Project Reform Act of 1995, the Secretary shall 
prepare a report in which the Secretary assesses whether the Dependable 
Water Supply Needs outlined in the Refuge Water Supply Report and the 
San Joaquin Basin Action Plan/Kesterson Mitigation Action Plan Report 
prepared by the Bureau of Reclamation accurately reflect reasonable 
dependable water supply needs for refuges, taking into account changes 
in habitat conditions and any other relevant factors. If the Secretary
 determines that the Dependable Water Supply Needs in such Reports do 
not reflect the reasonable dependable water supply needs for refuges, 
the Reports shall be revised to reflect appropriate adjustments in the 
Dependable Water Supply Needs tables, and deliveries and increments 
described in paragraphs (2) and (3) of this subsection shall be 
adjusted accordingly to match the quantities specified in the revised 
Reports. The report shall be prepared with public involvement, 
including water contractors and users.
    ``(9) Not later than one year after the date of the enactment of 
this paragraph, the Secretary shall--
            ``(A) using water measuring devices or other water 
        measuring methods, determine the quantity of all water provided 
        by the Secretary to areas referred to in paragraph (1) of this 
        subsection;
            ``(B) require that such areas be managed in accordance with 
        water conservation plans which incorporate water conservation 
        best management practices developed under section 3405(d) of 
        this title; and
            ``(C) if the Dependable Water Supply Needs levels specified 
        in paragraphs (2) and (3) of this subsection do not correspond 
        with the demonstrated need following implementation of best 
        management practices under this paragraph, the levels shall be 
        adjusted accordingly to match the level of such demonstrated 
        need.''.
    (9) Section 3406(f) of the Central Valley Project Improvement Act 
(106 Stat. 4724) is amended by striking ``Committees on Insular and 
Interior Affairs and Merchant Marine and Fisheries'' and inserting 
``Committee on Resources''.
    (10) Section 3406 (106 Stat. 4714), as amended by subsection (a) of 
this section, is further amended by adding at the end the following new 
subsection:
    ``(j) Purchase of Additional Water.--The Secretary may acquire any 
water needed to carry out this title which is in addition to the water 
required to be made available under subsections (b)(2), (b)(22), and 
(d) only by purchase in accordance with State law. Such purchases shall 
be Federal nonreimbursable expenditures to the extent they are not 
funded through the Restoration Fund established in section 3407 of this 
title.''.

SEC. 7. RESTORATION FUND.

    (a) Restoration Fund Established.--Section 3407(a) of the Central 
Valley Project Improvement Act (106 Stat. 4726) is amended to read as 
follows:
    ``(a) Restoration Fund Established.--
            ``(1) There is hereby established in the Treasury of the 
        United States the `Central Valley Project Restoration Fund' 
        (hereafter `Restoration Fund') which shall be available for 
        deposit of donations from any source and revenues provided 
        under sections 3405(e), 3406(c)(1)(D), and 3407(d) of this 
        title. Amounts deposited shall be credited as offsetting 
        collections. Monies donated to the Restoration Fund by non-
        Federal entities for specific purposes shall be expended for 
        those purposes only and shall not be subject to appropriation. 
        Notwithstanding any other provision of this title, the 
        Secretary may not directly or indirectly require a donation, or 
        any other payment, to the Restoration Fund, or environmental 
        restoration or mitigation fees not otherwise provided by law, 
        as a condition to providing for the storage or conveyance of 
        non-Central Valley Project water pursuant to reclamation laws, 
        or as a condition to the delivery of water pursuant to section 
        215 of the Reclamation Reform Act of 1982 (96 Stat. 1270).
            ``(2) The Secretary may utilize amounts collected pursuant 
        to section 3406(c)(1)(D) to assist in achieving applicable 
        water quality standards imposed in the San Francisco Bay/
        Sacramento-San Joaquin Delta Estuary, with emphasis on funding 
        projects described in section 3406(c)(1)(A) which will 
        contribute to achieving such standards. The balance of all 
        surcharges collected pursuant to section 3406(c)(1)(D) shall be 
        utilized by the Secretary to provide funding to the State of 
        California or other entity described in section 3407(e)(1) to 
        assist in the implementation of all projects described in such 
        subparagraph (A) to which funding is not directed pursuant to 
        the preceding sentence.''.
    (b) Authorization of Appropriations.--Section 3407(b) of the 
Central Valley Project Improvement Act (106 Stat. 4726) is amended by 
inserting ``(from willing sellers)'' after ``acquisition''.
    (c) Mitigation and Restoration Payments by Water and Power 
Beneficiaries.--Section 3407(c) of the Central Valley Project 
Improvement Act (106 Stat. 4726) is amended to read as follows:
    ``(c) Mitigation and Restoration Payments by Water and Power 
Beneficiaries.--
            ``(1) To the extent required in appropriation Acts, the 
        Secretary shall assess and collect additional annual mitigation 
        and restoration payments, in addition to the charges provided 
        for or collected under sections 3405(a)(1)(B), 3405(e), and 
        3406(c)(1)(D) of this title, consisting of charges to direct 
        beneficiaries of the Central Valley Project under subsection 
        (d) of this section in order to recover a portion or all of the 
        costs of fish, wildlife, and habitat restoration programs and 
        projects under this title.
            ``(2) The payment described in this subsection shall be 
        established at amounts that will result in collection, during 
        each fiscal year, of an amount that can be reasonably expected 
        to equal the amount appropriated each year, subject to 
        subsection (d) of this section, and in combination with all 
        other receipts identified under this title, to carry out the 
        purposes identified in subsection (b) of this section.''.
    (d) Adjustment and Assessment of Mitigation and Restoration 
Payments.--Paragraphs (1) and (2) of section 3407(d) of the Central 
Valley Project Improvement Act (106 Stat. 4727) are amended to read as 
follows:
            ``(1) In assessing the annual payments to carry out 
        subsection (c) of this section, the Secretary shall, prior to 
        each fiscal year, estimate the amount that could be collected 
        in each fiscal year pursuant to paragraph (2) of this 
        subsection. The Secretary shall decrease all such payments on a 
        proportionate
         basis from amounts contained in the estimate so that an 
aggregate amount is collected pursuant to the requirements of 
subsection (c)(2) of this section.
            ``(2) The Secretary shall assess and collect the following 
        mitigation and restoration payments, to be covered to the 
        Restoration Fund, subject to the requirements of paragraph (1) 
        of this subsection:
                    ``The Secretary shall require Central Valley 
                Project water and power contractors to make such 
                additional annual payments as are necessary to yield, 
                together with all other receipts, the amount required 
                under subsection (c)(2) of this section: Provided, That 
                such additional payments shall not exceed $30,000,000 
                (October 1992 price levels) on a three-year rolling 
                average basis: Provided further, That such additional 
                annual payments shall be allocated so as not to exceed 
                $6 per acre-foot (October 1992 price levels) for 
                Central Valley Project water for agricultural use 
                delivered by the Central Valley Project and received or 
                transferred by a Central Valley Project water 
                contractor, and $12 per acre-foot (October 1992 price 
                levels) for Central Valley Project water for municipal 
                and industrial use delivered by the Central Valley 
                Project and received or transferred by a Central Valley 
                Project contractor: Provided further, That the charge 
                imposed on agricultural water shall be reduced, if 
                necessary, to an amount within the probable ability of 
                the water users to pay as determined and adjusted by 
                the Secretary no less than every five years: Provided 
                further, That the Secretary shall impose an additional 
                annual charge of $25 per acre-foot (October 1992 price 
                levels) for Central Valley Project water sold or 
                transferred, except water sold or transferred under the 
                right of first refusal, to any State or local agency or 
                other entity which has not previously been a Central 
                Valley Project customer and which contracts with the 
                Secretary or any other individual or district receiving 
                Central Valley Project water to purchase or otherwise 
                transfer any such water for its own use for municipal 
                and industrial purposes, to be deposited in the 
                Restoration Fund: And Provided further, That upon the 
                completion of the fish, wildlife, and habitat 
                mitigation and restoration actions mandated under 
                section 3406 of this title, the Secretary shall reduce 
                the sums described in subsection (c)(2) of this section 
                to $35,000,000 per year (October 1992 price levels) and 
                shall reduce the annual mitigation and restoration 
                payment ceiling established under this subsection to 
                $15,000,000 (October 1992 price levels) on a three-year 
                rolling average basis. The amount of the mitigation and 
                restoration payment made by Central Valley Project 
                water and power users, taking into account all funds 
                collected under this title, shall, to the greatest 
                degree practicable, be assessed in the same proportion, 
                measured over a ten-year rolling average, as water and 
                power users' respective allocations for repayment of 
                the Central Valley Project.''.
    (e) Funding to Non-Federal Entities.--Section 3407(e) of the 
Central Valley Project Improvement Act (106 Stat. 4728) is amended to 
read as follows:
    ``(e) Funding to Non-Federal Entities.--
            ``(1) Except as provided by paragraph (2), if the Secretary 
        determines that the State of California or an agency or 
        subdivision thereof, an Indian tribe, or a nonprofit entity 
        concerned with restoration, protection, or enhancement of fish, 
        wildlife, habitat, or environmental values is able to assist in 
        implementing any action authorized by this title in an 
        efficient, timely, and cost-effective manner, the Secretary is 
        authorized to provide funding to such entity on such terms and 
        conditions as he deems necessary to assist in implementing the 
        identified action.
            ``(2) The use of funding provided by the Secretary to the 
        State of California or other entity described in section 
        3407(e)(1) pursuant to subsection 3407(a)(2) to assist in the 
        implementation of projects described in section 3406(c)(1)(A) 
        shall be as determined by the State of California or such other 
        entity and shall not be subjected to terms and conditions 
        imposed by the Secretary which are unacceptable to the State of 
        California or such other entity.''.
    (f) Restoration Fund Financial Reports.--Subsection (f) of section 
3407 of the the Central Valley Project Improvement Act (106 Stat. 4728) 
is amended by striking ``Committee on Interior and Insular Affairs, the 
Committee on Merchant Marine and Fisheries,'' and inserting ``Committee 
on Resources''.

SEC. 8. ADDITIONAL AUTHORITIES.

    (a) Annual Reports.--Section 3408(f) of the Central Valley Project 
Improvement Act (106 Stat. 4729) is amended--
            (1) by striking out ``Interior and Insular Affairs and 
        Merchant Marine and Fisheries'' and inserting in lieu thereof 
        ``Resources''; and
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, including (but not limited to) 
        progress on the plan required by subsection (j)''.
    (b) Project Yield Increase and Judicial Decrees.--Subsections (j) 
and (k) of section 3408 of the Central Valley Project Improvement Act 
(106 Stat. 4730) are amended to read as follows:
    ``(j) Project Yield Increase.--In order to minimize adverse effects 
upon existing Central Valley Project water contractors resulting from 
the water reserved for fish and wildlife under this title, and to 
assist the State of California in meeting its future water needs, the 
Secretary shall, on a priority basis, not later than two years after 
the date of enactment of the Central Valley Project Reform Act of 1995, 
develop and submit to Congress, a least-cost plan to increase, as soon 
as possible but not later than ten years after the date of enactment of 
this title, the yield of the Central Valley Project by the amount 
reserved and managed for fish and wildlife purposes under this title 
and otherwise required to meet the purposes of the Central Valley 
Project including, without limitation, satisfying contractual 
obligations. In order to carry out this subsection, the Secretary is 
authorized and directed to coordinate with the State of California in 
implementing measures for the long-term resolution of problems in the 
San Francisco Bay/Sacramento-San Joaquin Delta Estuary. The plan 
authorized by this subsection shall include (but not be limited to) a 
description of how the Secretary intends to use the following options:
            ``(1) Improvements in, modification of, or additions to the 
        facilities and operations of the project.
            ``(2) Conservation.
            ``(3) Transfers.
            ``(4) Conjunctive use.
            ``(5) Purchase of water.
            ``(6) Purchase and idling of agricultural land.
            ``(7) Direct purchase of water rights.
Such plan shall include recommendations on appropriate cost-sharing 
arrangements and shall be developed in a manner consistent with all 
applicable State and Federal law. Such plan shall also include 
recommendations for authorizing legislation or other measures, if any, 
needed to implement the intent, purposes, and provisions of this 
subsection.
    ``(k) Judicial Decrees.--Except as specifically provided in this 
title, nothing in this title is intended to alter the terms of any 
final judicial decree confirming or determining water rights. 
Notwithstanding any other provision of reclamation law, the judgment 
entered December 30, 1986, by the United States District Court of the 
Eastern District of California in the consolidated cases entitled 
Barcellos and Wolfsen, Inc., et al. v. Westlands Water District, et al. 
(No. CV 78-106 EDP) and Westlands Water District, et al. v. United 
States, et al. (No. CV F 81-245 EDP), shall be deemed an existing long-
term water service contract, which shall be renewable pursuant to 
section 3404(c) of this title.''.
    (c) Technical Amendment.--Section 3408(h)(2) of the Central Valley 
Project Improvement Act (106 Stat. 4729) is amended by striking out 
``(h)(i)'' and inserting in lieu thereof ``(h)(1)''.
    (d) Stanislaus River.--Section 3408 of the Central Valley Project 
Improvement Act (106 Stat 4730) is amended by adding at the end the 
following:
    ``(e)(1) The Secretary shall identify the water supply impacts 
resulting from the reallocation of Stanislaus River water for fish and 
wildlife purposes under this title, and no later than two years after 
the date of enactment of the Central Valley Project Reform Act of 1995, 
develop and implement a plan to provide long term replacement water in 
an amount equal to the identified water supply impacts on out-of-basin 
entities which have contracted with the Secretary for water from the 
New Melones Project. In the event the available yield of the New 
Melones Reservoir is insufficient to meet the contractual needs of 
these districts, then the Bureau shall provide an alternative supply at 
the contractual rate. Allocations for other Central Valley Project 
contractors shall not be reduced as a result of deliveries from New 
Melones Reservoir or any alternative source to the Stockton East Water 
District and the Central San Joaquin Water Conservation District.
    ``(2) The plan developed under paragraph (1) shall include (but not 
be limited to) utilization of exchange or transfer of water facilitated 
by the Secretary, other conjunctive use facilities satisfactory to the 
contracting entities, and/or additional diversion facilities. In the 
event additional facilities are authorized and constructed, out-of-
basin entities which have constructed diversion facilities on the 
Stanislaus River pursuant to contracts with the Secretary for water 
from the New Melones Project, shall be credited, in the calculation of 
capital for any such new facilities, with an amount equal to 75 percent 
of the costs associated with the construction of those Stanislaus River 
diversion facilities. The construction of such facilities or the 
allocation of costs associated with such facilities shall be treated as 
nonreimbursible capital costs of the Bureau and not result in increased 
allocation of costs to any other Central Valley Project contractor.''.
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