[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2738 Introduced in House (IH)]

  1st Session
                                H. R. 2738

 To make amendments to the the Central Valley Project Improvement Act 
and to the Reclamation Wastewater and Groundwater Study and Facilities 
                      Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 1995

  Mr. Doolittle (for himself and Mr. Hansen) introduced the following 
         bill; which was referred to the Committee on Resources

_______________________________________________________________________

                                 A BILL


 
 To make amendments to the the Central Valley Project Improvement Act 
and to the Reclamation Wastewater and Groundwater Study and Facilities 
                      Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

                 TITLE I--CENTRAL VALLEY PROJECT REFORM

SEC. 101. SHORT TITLE.

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

SEC. 102. PURPOSES.

    Section 3402 of the Central Valley Project Improvement Act (106 
Stat. 4706) is amended by striking subsection (f) and inserting the 
following:
            ``(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; 
        and
            ``(g) to improve the reliability of Central Valley Project 
        water delivered under municipal and industrial water service 
        and repayments contracts.''.

SEC. 103. 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 and its tributaries 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' (i) 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; and 
        (ii) to clarify the nature of Sacramento River water rights 
        settlement contracts and to improve the opportunities for the 
        reasonable and beneficial use of water within counties, 
        watersheds, or other areas of origin as defined by State law, 
        the term `Central Valley Project water' does not include water 
        defined as `base supply' in those certain contracts between the 
        United States and diverters of water from Sacramento River 
        sources providing for project water service and agreement on 
        diversion of water, sometimes referred to as the Sacramento 
        River water rights settlement contracts;''.
    (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. 104. 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, 
subject to paragraphs (1) and (2) of this subsection, 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 or the date which is three years after 
        completion of the applicable environmental impact statement 
        required by section 3409, whichever is earlier; except that an 
        interim contract shall automatically be extended beyond that 
        three-year date for the period necessary to provide the 
        contractors with one year for contract negotiations with the 
        Secretary, with such one-year period determined from the time 
        the draft long-term contract is formally presented to the 
        contractor by the Secretary. 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, and before 
        October 31, 1992, 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. 105. WATER TRANSFERS, IMPROVED WATER MANAGEMENT AND CONSERVATION.

    (a) Conditions for Transfers.--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) Regulatory and Environmental Laws.--Section 3405(a)(1)(D) of 
the Central Valley Project Improvement Act (106 Stat. 4710) is amended 
by striking ``laws, including but not limited to provisions of the 
California Environmental Quality Act'' and inserting ``regulatory and 
environmental laws''.
    (d) 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 in the 
                        transferor's service area or areas within the 
                        same groundwater basin or areas adjacent 
                        thereto.
                            ``(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.
                    ``(M) The transfer of `base supply', as that term 
                is defined in Sacramento River water rights settlement 
                contracts, shall be subject only to State law, and the 
                Secretary shall have no authority to approve, 
                disapprove, review, control or otherwise interfere, 
                except as provided by State law, with any transfer of 
                base supply. For an individual or district which holds 
                any contract for Central Valley Project water, in 
                determining the amount under the provisions of the Act 
                of February 21, 1911 (36 Stat. 925; 43 U.S.C. 523-525), 
                to be charged for the wheeling or conveyance of base 
                supply water through Central Valley Project facilities, 
                the Secretary shall charge the contractor receiving 
                that water the applicable full operations and 
                maintenance rate or a rate that does not exceed the 
                lowest amount the individual or district would pay for 
                Central Valley Project water through the same 
                facilities at the same time, whichever is greater.''.
    (e) Approval of Transfers.--Section 3405(a)(2)(C) of the Central 
Valley Project Improvement Act (106 Stat. 4712) is amended by striking 
the first sentence and inserting the following: ``The contracting 
district or agency shall approve the transfer unless the transfer is 
not consistent with the terms and conditions of subparagraphs (A) 
through (F) and (I) through (K) of this paragraph. The Secretary shall 
approve the transfer if the transfer is consistent with paragraphs (H) 
and (L). The contracting district's or agency's decision to approve or 
disapprove a water transfer shall be final unless appealed to the 
Secretary as provided by paragraph (4).
    (f) Water Transfer Programs.--Section 3405(a) of the Central Valley 
Project Improvement Act (106 Stat. 4711) is amended--
            (1) by redesignating paragraph (3) as paragraph (5); and
            (2) by inserting after paragraph (2) the following new 
        paragraphs:
            ``(3) Contracting district or agency water transfer 
        programs.--A contracting district or agency may, and if a water 
        user within the district or agency formally requests approval 
        of a water transfer shall, adopt a water transfer program 
        setting forth reasonable and objective criteria and a 
        procedure, all consistent with the purpose and provisions of 
        this section 3405, for reviewing and approving water transfers. 
        The program shall not add conditions for approval not otherwise 
        identified in, or restrict the ability to implement water 
        transfers which otherwise meet the conditions of section 
        3405(a)(1).
            ``(4) Appeal of contracting district or agency 
        determinations.--
                    ``(A) An interested party may appeal in writing to 
                the Secretary the contracting district's or agency's 
                approval or disapproval of a proposed water transfer 
                made under section 3405(a)(2)(C) or adoption of a water 
                transfer program within 30 days of the approval or 
                disapproval of the transfer or adoption of the program.
                    ``(B) The Secretary shall resolve the appeal within 
                90 days from the date the Secretary is notified of the 
                appeal. The Secretary shall only set aside a district's 
                or agency's decision, action, findings, or conclusion 
                if the decision, action, findings, or conclusion are 
                found to be arbitrary, capricious, an abuse of 
                discretion or otherwise not in accordance with this 
                title, or in the case of a proposed water transfer from 
                a district or agency which has adopted a water transfer 
                program pursuant to section 3405(a)(3), not in 
                accordance with such program.
                    ``(C) The term `interested party' as used in this 
                subsection shall include the parties to the proposed 
                water transfer, other water users within the 
                contracting district or agency from which the water 
                will be transferred, persons or entities asserting that 
                the transfer would impair that person's or entity's 
                water rights.
                    ``(D) Nothing in this paragraph shall limit or 
                otherwise affect any judicial or administrative remedy 
                otherwise available.''.
    (g) Transfers After September 30, 1999.--Section 3405(a)(5) of the 
Central Valley Project Improvement Act (106 Stat. 4712), as amended by 
subsection (g) of this section, is amended to read as follows:
            ``(5) 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), (L), and (M) of this title, and by State law.''.
    (h) Transfers, Exchanges, and Banking Arrangements Under Prior 
Law.--Section 3405(a) of the Central Valley Project Improvement Act 
(106 Stat. 4709), as amended by subsections (g) and (h) of this 
section, is amended by adding at the end the following:
            ``(6) 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.''.
    (i) Measurement of Water Use Required.--Section 3405(b) of the 
Central Valley Project Improvement Act (106 Stat. 4712) is amended--
            (1) in the heading, by striking ``Metering'' and inserting 
        ``Measurement''; and
            (2) by inserting after the first sentence the following: 
        ``The contracting district or agency, not including contracting 
        districts serving multiple agencies with separate governing 
        boards, shall ensure that all water delivery systems within its 
        boundaries measure surface water at the agency's facilities up 
        to the point the surface water is commingled with other water 
        supplies.''.
    (j) 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 not prohibited by California or local law as of January 1, 1993, 
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. 106. 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. 
        Purchases of water associated with this program shall be from 
        willing sellers, and shall be Federal nonreimbursable 
        expenditures to the extent they are not funded through the 
        Restoration Fund established in section 3407 of this title.''.
    (5) Section 3406(b)(8) of the Central Valley Project Improvement 
Act (106 Stat. 4717) is amended by inserting ``as appropriate based on 
best available river specific science,'' after ``(8)''.
    (6) Section 3406(b) of the Central Valley Project Improvement Act 
(106 Stat. 4714), as amended by paragraph (8) of this subsection, is 
further amended by striking paragraph (18) and by redesignating 
paragraphs (19) through (23) as paragraphs (18) through (22), 
respectively.
    (7) Section 3406(b)(22) of the Central Valley Project Improvement 
Act (106 Stat. 4716), as amended by paragraph (9) of this subsection, 
is amended to read as follows:
            ``(22) 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; and:
                    ``(A) By September 30, 1996, the Secretary, after 
                consultation with the Hoopa Valley Tribe, the Trinity 
                River Restoration Program Task Force, and its Technical 
                Coordinating Committee, 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.
                    ``(B) Not later than December 31, 1996, the 
                Secretary shall forward the recommendations of the 
                Trinity River Flow Evaluation Study, referred to in 
                subparagraph (A) 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, after 
                consultation with the Trinity River Restoration Program 
                Task Force and its Technical Coordinating Committee, 
                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 the matter 
                preceding subparagraph (A) shall be implemented in 
                accordance with subparagraph (C). If the Hoopa Valley 
                Tribe and the Secretary do not concur, the minimum 
                Trinity River instream fishery releases established 
                under the matter preceding subparagraph (A) shall 
                remain in effect unless increased by an Act of 
                Congress, appropriate judicial decree, or agreement 
                among the Secretary, the Hoopa Valley Tribe, the 
                Trinity River Restoration Program Task Force, and its 
                Technical Coordinating Committee, implemented in 
                accordance with subparagraph (C).
                    ``(C) The Secretary may only implement 
                recommendations pursuant to the study referred to in 
                subparagraph (A) 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. Any such draft rule shall be published within 
                180 days after the Secretary forwards the 
                recommendations under subparagraph (B).
                    ``(D) Any recommendation implemented pursuant to 
                subparagraph (C) shall provide for a variance in the 
                instream flow to take into account differing hydrologic 
                and reservoir storage conditions.
                    ``(E) Costs associated with implementation of this 
                paragraph shall be reimbursable as operation and 
                maintenance expenditures pursuant to existing law.''.
    (8) 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, which plan 
        shall be consistent with restoring and maintaining the floodway 
        flow capacities and associated river stages for which levees 
        and other flood protection facilities were designed and built;
            ``(vi) initiate a program of screening or providing other 
        fish protective measures at 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.''.
    (9) 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 implement the requirements of this subsection and 
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 through purchase, 
lease, or short-term or long-term operating agreement such water 
conveyance facilities, conveyance capacity, pumping capacity, and 
wells, within one year after enactment of this paragraph: Provided, 
That such actions are approved by the non-Federal facilities' owners, 
and operators. 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.''.
    (10) 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''.
    (11) Section 3406 of the Central Valley Project Improvement Act 
(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. 107. 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--
            (1) by striking ``per year'' and inserting ``in any one 
        year''; and
            (2) 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, $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, and an amount equal to the annual Central Valley 
Project power generation (in kilowatt hours), net of project use, 
multiplied by 2.0 mils per kilowatt hour (October 1992 price levels) 
for power contractors: 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--
            (1) by striking ``Committee on Interior and Insular 
        Affairs, the Committee on Merchant Marine and Fisheries,'' and 
        inserting ``Committee on Resources''; and
            (2) by striking ``next upcoming'' and inserting 
        ``current''.

SEC. 108. ADDITIONAL AUTHORITIES.

    (a) Eligible Organizations.--Section 3408(c) of the Central Valley 
Project Improvement Act (106 Stat. 4728.) is amended by striking 
``nonprofit''.
    (b) 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)''.
    (c) 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 (except for the construction of new facilities which shall 
not be limited by the ten year period), 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 and construction of 
        new water storage facilities.
            ``(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 79-106 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.''.
    (d) 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)''.
    (e) Stanislaus River.--Section 3408 of the Central Valley Project 
Improvement Act (106 Stat 4730) is amended by adding at the end the 
following:
    ``(l)(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 and entities adjacent to the watershed 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 in accordance with California law, other conjunctive 
use facilities satisfactory to the contracting entities, and/or 
additional 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 Central Valley Project 
contractor.''.

SEC. 109. PREFERENCE CUSTOMER.

    The Central Valley Project Improvement Act (106 Stat. 4706 et seq.) 
is amended by adding at the end the following new section:

``SEC. 3413. PREFERENCE CUSTOMER.

    ``The first preference entitlement to electrical power from the 
Central Valley Project provided to Calaveras and Tuolumne Counties, 
California, by the Flood Control Act of 1962 (Public Law 87-874) shall 
not be reduced by the implementation of this title to a level that 
would fall below 25 percent of the `average annual amount of 
generation' from the New Melones Project (as specified at page 2505, 
section 2.3, of the January 16, 1985 Federal Register). Such allocation 
shall not cause a reoperation of the New Melones Project.''.

 TITLE II--RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND FACILITIES

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Reclamation Recycling and Water 
Conservation Act of 1995''.

SEC. 202. WATER RECYCLING PROJECTS.

    Section 1602 of the Reclamation Projects Authorization and 
Adjustment Act of 1992 (43 U.S.C. 390h) is amended by adding at the end 
the following:
    ``(e)(1) The Secretary, in cooperation with the appropriate State 
and local authorities, is authorized to participate in the design, 
planning, and construction of the following water reclamation and reuse 
projects:
            ``(A) The North San Diego County Area Water Recycling 
        Project, consisting of projects to reclaim and reuse water in 
        service areas of the San Elijo Joint Powers Authority, the 
        Leucadia County Water District, the City of Carlsbad, and the 
        Olivenhain Water District, California.
            ``(B) The Calleguas Municipal Water District Recycling 
        Project to reclaim and reuse water in the service area of the 
        Calleguas Municipal Water District in Ventura County, 
        California.
            ``(C) The Central Valley Water Recycling Project to reclaim 
        and reuse water in the service areas of the Central Valley 
        Reclamation Facility and the Salt Lake County Water Conservancy 
        District in Utah.
            ``(D) The St. George Area Water Recycling Project to 
        reclaim and reuse water in the service area of the Washington 
        County Water Conservancy District in Utah.
            ``(E) The Watsonville Area Water Recycling Project, in 
        cooperation with the City of Watsonville, California, to 
        reclaim and reuse water in the Pajaro Valley in Santa Cruz 
        County, California.
            ``(F) The Southern Nevada Water Recycling Project to 
        reclaim and reuse water in the service area of the Southern 
        Nevada Water Authority in Clark County, Nevada, including an 
        operable unit to reclaim industrial water at the Basic 
        industrial site in Henderson, Nevada.
            ``(G) The Albuquerque Metropolitan Area Water Reclamation 
        and Reuse Study, in cooperation with the city of Albuquerque, 
        New Mexico, to reclaim and reuse industrial and municipal 
        wastewater and reclaim and use naturally impaired ground water 
        in the Albuquerque metropolitan area.
            ``(H) The El Paso Water Reclamation and Reuse Project to 
        reclaim and reuse wastewater in the service area of the El Paso 
        Water Utilities Public Service Board.
            ``(I) The City of Pasadena, California, reclaimed water 
        project to obtain, store, and use reclaimed water in Pasadena 
        and its service area as well as neighboring communities.
            ``(J) Phase 1 of the Orange County Regional Water 
        Reclamation Project, which will reclaim and reuse water within 
        the service area of the Orange-County Water District in 
        California.
            ``(K) The City of West Jordan Water Reuse Project to 
        recycle and reuse water in their service area from the South 
        Valley Water Reclamation Facility Discharge Waters in Utah.
            ``(L) The Hi-Desert Water District in Yucca Valley, 
        California wastewater collection and wastewater treatment 
        system in their service area.
            ``(M) The City of Oceanside, for the design, planning, and 
        construction of a 3,000,000 gallon per day expansion of the 
        Mission Basin Brackish Groundwater Desalting Demonstration 
        Project in Oceanside, California.
            ``(N) The Water Replenishment District of Southern 
        California, city of Long Beach and the Orange County Water 
        District in the State of California, and other appropriate 
        authorities, to participate in the design, planning, and 
        construction of water reclamation and reuse projects to treat 
        approximately 10,000 acre-feet per year of effluent from the 
        city of Long Beach.
            ``(O) The San Joaquin Area Water Recycling and Reuse 
        Project, in cooperation with the City of Tracy, and consisting 
        of participating projects which will reclaim and reuse water 
        within the County of San Joaquin in California.
    ``(2) The Federal share of the cost of a project described in 
paragraph (1) shall not exceed 25 percent of the total cost.
    ``(3) The Secretary shall not provide funds for the operation or 
maintenance of a project described in paragraph (1).''.

SEC. 203. DESALINATION RESEARCH AND DEVELOPMENT PROJECT.

    Section 1605 of the Reclamation Projects Authorization and 
Adjustment Act of 1992 (43 U.S.C. 390h-3) is amended--
            (1) by designating the existing text as subsection (a); and
            (2) by adding at the end the following:
    ``(b)(1) The Secretary, in cooperation with the city of Long Beach, 
the Central Basin Municipal Water District, and the Metropolitan Water 
District of Southern California may participate in the design, 
planning, and construction of the Long Beach Desalination Research and 
Development Project in Los Angeles County, California.
    ``(2) The Federal share of the cost of the project described in 
paragraph (1) shall not exceed 50 percent of the total.
    ``(3) The Secretary shall not provide funds for the operation or 
maintenance of the project described in paragraph (1).''.
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