[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3208 Reported in House (RH)]






                                                 Union Calendar No. 217
107th CONGRESS
  2d Session
                                H. R. 3208

                      [Report No. 107-360, Part I]

  To authorize funding through the Secretary of the Interior for the 
  implementation of a comprehensive program in California to achieve 
 increased water yield and environmental benefits, as well as improved 
    water system reliability, water quality, water use efficiency, 
      watershed management, water transfers, and levee protection.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 2001

 Mr. Calvert (for himself and Mr. Dooley of California) introduced the 
 following bill; which was referred to the Committee on Resources, and 
in addition to the Committee on Transportation and Infrastructure, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

                           February 14, 2002

       Reported from the Committee on Resources with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           February 14, 2002

Referral to the Committee on Transportation and Infrastructure extended 
           for a period ending not later than March 14, 2002.

                           February 14, 2002

 Referred to the Committee on Education and the Workforce for a period 
    ending not later than March 14, 2002, for consideration of such 
provisions of the bill and amendment as fall within the jurisdiction of 
            that committee pursuant to clause 1(e), rule X.

                             March 14, 2002

 The Committees on Transportation and Infrastructure and Education and 
the Workforce discharged; committed to the Committee of the Whole House 
          on the State of the Union and ordered to be printed
    [For text of introduced bill, see copy of bill as introduced on 
                           November 1, 2001]

_______________________________________________________________________

                                 A BILL


 
  To authorize funding through the Secretary of the Interior for the 
  implementation of a comprehensive program in California to achieve 
 increased water yield and environmental benefits, as well as improved 
    water system reliability, water quality, water use efficiency, 
      watershed management, water transfers, and levee protection.

    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 ``Western Water Security Enhancement 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purposes.
Sec. 4. Definitions.

                TITLE I--WESTERN WATER SECURITY PROGRAM

Sec. 101. Interim program activities and governance structure.
Sec. 102. Long-term governance and monitoring.
Sec. 103. California water supply security.
Sec. 104. Implementation of the CALFED program.
Sec. 105. Competitive grant program.
Sec. 106. Authorization and appropriation process.
Sec. 107. Annual reports.
Sec. 108. Treatment of funds.
Sec. 109. Land acquisition; management plan required for existing 
                            lands.
Sec. 110. Environmental justice.

                  TITLE II--SMALL RECLAMATION PROJECTS

Sec. 201. Short title; references.
Sec. 202. Amendments to the Small Reclamation Projects Act of 1956.
Sec. 203. Additional appropriations.
Sec. 204. Guidelines.
Sec. 205. Effective date.
Sec. 206. Limitation.

                        TITLE III--MISCELLANEOUS

Sec. 301. Secretarial actions to reduce California's use of Colorado 
                            River water.
Sec. 302. Willard Bay Reservoir enlargement study.
Sec. 303. Amendments to the Federal Water Project Recreation Act.
Sec. 304. Limitations on recovery of reimbursable expenses for valve 
                            rehabilitation project at the Arrowrock 
                            Dam, Boise Project, Idaho.
Sec. 305. Contract assurances for payment of prevailing wages for 
                            laborers and mechanics.

SEC. 3. PURPOSES.

    The purposes of this Act are the following:
            (1) To authorize funding, through the Secretary of the 
        Interior, for the implementation of a comprehensive program to 
        achieve increased water yield and water supply, improved water 
        quality and enhanced environmental benefits as well as improved 
        water system reliability, water use efficiency, watershed 
        management, water transfers, and levee protection for 
        California.
            (2) To implement the 4 primary objectives of the CALFED 
        program for California in accordance with the solution 
        principles set forth in the CALFED program.
            (3) To ensure that the Secretary of the Interior and the 
        Federal agencies, in cooperation with the State, implement 
        actions necessary to improve drinking water quality pursuant to 
        the record of decision, including through financial and 
        technical support of local enhancement of water treatment 
        infrastructure and technology.
            (4) To enhance water security in the Western United States 
        by authorizing a competitive grants program and reauthorizing 
        and amending the Small Reclamation Projects Act of 1956.

SEC. 4. DEFINITIONS.

    As used in this Act:
            (1) Bay-delta solution area.--The term ``Bay-Delta solution 
        area'' means the Bay-Delta watershed and the San Francisco Bay/
        Sacramento-San Joaquin Delta Estuary, California, and the areas 
        in which diverted/exported water is used.
            (2) Bay-delta watershed.--The term ``Bay-Delta watershed'' 
        means the Sacramento River-San Joaquin River Delta, and the 
        rivers and watersheds that are tributary to that Delta.
            (3) CALFED program.--The term ``CALFED program'' means the 
        cooperative, interagency effort of the State agencies and 
        Federal agencies with management or regulatory responsibilities 
        for the Bay-Delta solution area as set forth in the record of 
        decision, including complementary actions (as that term is 
        defined in the record of decision).
            (4) Congressional authorizing committees.--The term 
        ``congressional authorizing committees'' means the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Resources of the House of Representatives.
            (5) Delta.--The term ``Delta'' means the Sacramento River-
        San Joaquin River Delta in California as defined in California 
        Water Code section 12220.
            (6) Ecosystem restoration program.--The term ``Ecosystem 
        Restoration Program'' means the program described in section 
        2.2.2 of the record of decision.
            (7) Environmental water account.--The term ``Environmental 
        Water Account'' means the water account established by the 
        Program agencies pursuant to the record of decision to provide 
        water for the protection and recovery of species of fish listed 
        under section 4(c) of the Endangered Species Act of 1973 (16 
        U.S.C. 1533(c)).
            (8) Federal agencies.--The term ``Federal agencies'' means 
        the Federal agencies that are signatories to Attachment 3 of 
        the record of decision.
            (9) Program agencies.--The term ``Program agencies'' means 
        both the Federal agencies and the State agencies.
            (10) Reclamation lands.--The term ``Reclamation lands''--
                    (A) means real property administered by the 
                Secretary, acting through the Commissioner of 
                Reclamation; and
                    (B) includes all acquired and withdrawn lands and 
                water areas under the administrative jurisdiction of 
                the Bureau of Reclamation.
            (11) Record of decision.--The term ``record of decision'' 
        means the record of decision issued August 28, 2000, pursuant 
        to the National Environmental Policy Act of 1969 for the CALFED 
        Bay-Delta Program Final Programmatic Environmental Impact 
        Statement.
            (12) Restoration fund.--The term ``restoration fund'' means 
        the Central Valley Project Restoration Fund established by 
        section 3407 of the Central Valley Project Improvement Act (106 
        Stat. 4726).
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (14) State agencies.--The term ``State agencies'' means the 
        California State agencies that are signatories to Attachment 3 
        of the record of decision.
            (15) Water security board.--The term ``Water Security 
        Board'' means such board established pursuant to section 102.
            (16) Water supply.--The term ``water supply'' means a 
        quantity of water that is developed or derived from--
                    (A) increased water yield;
                    (B) recycling existing sources;
                    (C) surface or groundwater storage;
                    (D) conservation; or
                    (E) other actions or water management tools that 
                improve the availability and reliability of water 
                supplies for beneficial uses in all water year types, 
                including critically dry years.
            (17) Water yield.--The term ``water yield'' means a new 
        quantity of water in storage that is reliably available in 
        critically dry years for beneficial uses.

                TITLE I--WESTERN WATER SECURITY PROGRAM

SEC. 101. INTERIM PROGRAM ACTIVITIES AND GOVERNANCE STRUCTURE.

    (a) In General.--The Federal agencies, in consultation with State 
agencies, shall continue to operate under the interim governance 
structure as described in Attachment 3 of the record of decision, and 
in accordance with section 103 of this Act, until the date on which the 
Water Security Board is established under section 102.
    (b) Allocation of Funding During Interim.--The Secretary shall 
ensure that during the period preceding establishment of the Water 
Security Board under section 102, Federal funding is allocated such 
that--
            (1) there is balanced progress toward increased water yield 
        and water supply, improved water quality, and enhanced 
        environmental benefits; and
            (2) adequate progress is made in improving water system 
        reliability, water quality, water use efficiency, watershed 
        management, water transfers, and levee protection, in 
        accordance with the record of decision.
    (c) Water Supply and Water Yield Studies.--
            (1) In general.--The Secretary, acting through the Bureau 
        of Reclamation, shall conduct a study of available water 
        supplies and water yields and existing demand and future 
        needs--
                    (A) within the units of the Central Valley Project;
                    (B) within the area served by Central Valley 
                Project agricultural water service contractors and 
                municipal and industrial water service contractors; and
                    (C) within the Bay-Delta solution area.
            (2) Report.--The Secretary shall submit a report to the 
        congressional authorizing committees by not later than October 
        1, 2002, describing the findings of the study. The report shall 
        describe--
                    (A) water yield and water supply improvements, if 
                any, for Central Valley Project agricultural water 
                service contractors and municipal and industrial water 
                service contractors, that would result from projects 
                described in the record of decision; and
                    (B) all feasible water management actions or 
                projects that would improve water yield or water supply 
                and that, if taken or constructed, would balance 
                available water supplies and existing demand for those 
                contractors and other water users of the Bay-Delta 
                watershed with due recognition of water right 
                priorities.
            (3) Feasible defined.--For purposes of paragraph (2), the 
        term ``feasible'' means capable of being accomplished in a 
        reasonable period of time, taking into account economic, 
        environmental, social, and technological factors and benefits.
    (d) Water Quality Studies.--
            (1) Study.--The Secretary, in cooperation with the State, 
        shall conduct a study to identify and recommend drinking water 
        quality improvement projects and programs to carry out under 
        the CALFED program.
            (2) Report.--The Secretary shall submit a report to the 
        congressional authorizing committees by not later than October 
        1, 2002, describing the findings of the study.
    (e) Summary of Expenditures to Date.--The Director of the Office of 
Management and Budget shall submit to the Congress, by not later than 
March 1, 2002, a report describing all Federal and State expenditures 
made before such date under the CALFED program and other Federal and 
State programs that may be complementary to the CALFED program.

SEC. 102. LONG-TERM GOVERNANCE AND MONITORING.

    (a) Establishment of the Water Security Board.--
            (1) In general.--The Secretary shall cooperate with the 
        State of California to develop a proposal to--
                    (A) establish an administrative entity, to be known 
                as the ``Water Security Board'', for managing CALFED 
                program operations and implementation of section 105 
                with respect to California; and
                    (B) otherwise provide for the long-term 
                implementation of the CALFED program.
            (2) Development and submittal of proposal.--For purposes of 
        paragraph (1)--
                    (A) the Federal agencies shall participate with the 
                State agencies and stakeholders to develop a proposal 
                in accordance with this section to be authorized by the 
Congress and the California Legislature before becoming effective; and
                    (B) the Secretary shall submit the proposal to the 
                Congress and the California Legislature by October 1, 
                2002.
            (3) Public participation.--The Federal agencies shall 
        include broad public, tribal, and local government involvement 
        in the proposal. Meetings of multiple State agencies and 
        Federal agencies for development of the proposal shall be open 
        to the public.
    (b) Program Elements.--The proposal submitted by the Secretary 
under this section shall provide the following:
            (1) Establishment of an administrative entity to be 
        authorized under Federal and California State law which shall 
        be known as the Water Security Board.
            (2) The Water Security Board--
                    (A) shall direct and oversee the implementation of 
                the CALFED program and implementation of section 105 
                with respect to California; and
                    (B) may adopt and modify program elements as 
                necessary to achieve the purposes of the CALFED 
                program.
            (3) The Water Security Board shall ensure that all relevant 
        Federal programs authorized under this Act and other 
        preexisting authorities, including the restoration fund and 
        other programs authorized by the Central Valley Project 
        Improvement Act (106 Stat. 4706 et seq.), coordinate and 
        integrate goalsetting, funding, and implementation with CALFED 
        programs to ensure the most biologically effective and cost-
        effective expenditure of Federal funds and resources for CALFED 
        program-related activities.
            (4) The Water Security Board shall manage and allocate 
        CALFED program funds to maintain balanced progress among all 
        CALFED program elements.
            (5) The Water Security Board shall be comprised of 
        representatives from each of the following groups:
                    (A) The Federal agencies.
                    (B) The State agencies.
                    (C) Local governments and other interested persons.
            (6) Each member of the Water Security Board who is a 
        representative of a Federal agency or State agency shall be an 
        official with a level of authority that is at least as great as 
        the lowest level of authority of the Federal and State 
        officials, respectively, that signed the record of decision.
            (7) Mechanisms for funding, by the Program agencies, of 
        activities under the proposal, including for the Ecosystem 
        Restoration Program.
    (c) Promotion of Partnerships.--The proposal submitted by the 
Secretary under this section shall provide the following:
            (1) The Water Security Board shall seek out and promote 
        partnerships with local interests and programs that seek to 
        integrate various management options so as to maximize the 
        final resource benefits.
            (2) The Water Security Board shall cooperate and undertake 
        joint activities with other persons, including local public 
        agencies, Indian tribes, private water users, and landowners 
        pursuant to the record of decision. Such activities shall 
        include, but not be limited to, planning, design, technical 
        assistance, construction projects, and the development of an 
        independent peer review science program.
    (d) Monitoring.--The proposal submitted by the Secretary under this 
section shall provide that the Water Security Board shall coordinate 
with the Program agencies to--
            (1) ensure that ecological monitoring data collected for 
        ecosystem restoration projects are integrated, streamlined, 
        compatible, and designed to measure overall trends in ecosystem 
        health in the Bay-Delta watershed;
            (2) provide integrated monitoring plans and protocols to be 
        used for gauging cost-effective performance of projects; and
            (3) ensure that the findings of such monitoring are used to 
        modify and adopt elements of the CALFED program.
    (e) Objective Review and Analysis.--The proposal submitted by the 
Secretary under this section shall provide that the Water Security 
Board shall ensure that--
            (1) all aspects of the CALFED program components, including 
        the competitive grants program under section 105 with respect 
        to California, use credible and objective scientific review and 
        economic analysis;
            (2) recommendations of the Water Security Board are based 
        on the best available scientific information; and
            (3) a science review board and independent peer review 
        process for implementation of the proposal is established, 
        including independent review of biological opinions.
    (f) Land Partnerships and Acquisitions.--The proposal submitted by 
the Secretary under this section shall provide that--
            (1) before obligating or expending Federal funds to acquire 
        land for the Ecosystem Restoration Program, the Water Security 
        Board shall first determine that existing Federal land, State 
        land, or other land acquired for ecosystem restoration with 
        amounts provided by the United States or the State of 
        California is not available for that purpose;
            (2) in determining whether to acquire land for the 
        Ecosystem Restoration Program, the Water Security Board, 
        through the Secretary, shall--
                    (A) consider the cumulative impacts on the local 
                government and communities of transferring the property 
                into government ownership; and
                    (B) fully mitigate such impacts;
            (3) the Water Security Board may not acquire land for any 
        project if such acquisition, or any change in management of the 
        land after such acquisition, will have any significant 
        unmitigated effect on surrounding landowners;
            (4) the Water Security Board, through the Secretary, shall 
        fully mitigate the adverse impacts of any conversion of 
agriculture land due to the implementation of the CALFED program; and
            (5) the Water Security Board shall partner with landowners 
        and local agencies to develop cooperating landowner commitments 
        that will meet coequal objectives of achieving local economic 
        and social goals and implementing the Ecosystem Restoration 
        Program goals.
    (g) Compliance With State Law.--The proposal submitted by the 
Secretary under this section shall provide that the Federal agencies 
and the Water Security Board shall operate in compliance with 
California water law. Nothing in this Act shall be construed to 
invalidate or preempt State law.
    (h) Continued Consultation and Negotiation Regarding Cost 
Sharing.--The Federal agencies shall continue coordinated consultations 
and negotiations with the State of California pursuant to the cost 
sharing agreement required by section 78684.10 of California Senate 
Bill 900, Chapter 135, Statutes of 1996, signed by the Governor of 
California on July 11, 1996, and may enter into an agreement with the 
State for that purpose.
    (i) Satisfaction of Solution Principles and Primary Objectives.--
The Secretary shall ensure that the proposal submitted under this 
section and other actions taken to implement the record of decision 
satisfy the solution principles and primary objectives of the CALFED 
program.
    (j) Limitation on Appropriations To Implement CALFED Program.--No 
amounts may be appropriated for any fiscal year after fiscal year 2004 
to implement the CALFED program, including under any other provision of 
this title, and no amounts may be appropriated from the restoration 
fund after such fiscal year, if there has not been enacted by the 
Congress a law authorizing implementation of the proposal submitted by 
the Secretary under this section.

SEC. 103. CALIFORNIA WATER SUPPLY SECURITY.

    (a) Water System Improvements.--
            (1) In general.--The Federal agencies, acting through the 
        CALFED program, shall develop a balanced and timely program to 
        achieve for agricultural and urban uses throughout the Bay-
        Delta solution area--
                    (A) increased water supply and water yield, 
                improved water quality, and environmental benefits; and
                    (B) improved water system reliability, water use 
                efficiency, watershed management, water transfers, and 
                levee protection.
            (2) Development of options.--In developing water yield and 
        water supply options the Federal agencies, in cooperation with 
        the State agencies, shall--
                    (A) consider all potential water yield and water 
                supply storage alternatives (including those identified 
                in the study under section 101(c)(1)); and
                    (B) utilize a cost/benefit analysis in conjunction 
                with environmental criteria to ensure that proposals 
                are selected that address environmental issues and are 
                economically viable.
            (3) Selection of projects.--In selecting projects and 
        programs for increasing water yield and water supply, improving 
        water quality, and enhancing environmental benefits, projects 
        and programs with multiple benefits shall be emphasized.
            (4) Water deliveries to south-of-delta agricultural water 
        service contractors.--(A) The Secretary shall use the 
        discretion of the Secretary to the maximum extent practicable 
        to accomplish the goal, during a normal water year, of making 
        available to south-of-Delta Central Valley Project agricultural 
        water service contractors at least 70 percent of the currently 
        identified contract maximum for such contractors.
            (B) The restoration of supply for south-of-Delta Central 
        Valley Project agricultural water service contractors pursuant 
        to this paragraph shall be accomplished--
                    (i) by providing water from existing facilities 
                historically used to provide Central Valley Project 
                water to these contractors,
                    (ii) in a manner consistent with California water 
                laws,
                    (iii) without reducing deliveries to, increasing 
                the costs of, or otherwise adversely affecting other 
                water suppliers and water users that rely on water 
                diverted from watercourses tributary to the Delta, and 
                in the Delta,
                    (iv) without degrading the quality of water for 
                municipal, industrial, and agricultural uses, and
                    (v) in a manner that is consistent with the Bureau 
                of Reclamation's municipal and industrial water 
                shortage policy.
            (C) Nothing in this paragraph grants, diminishes, or 
        otherwise affects any water right or right under any contract, 
        including a settlement or exchange contract, in effect as of 
        the date of enactment of this Act.
            (5) Banks pumping plant.--In accordance with the record of 
        decision, the Federal agencies shall cooperate with the State 
        of California to do the following:
                    (A) Increase pumping limits at the Banks Pumping 
                Plant in accordance with the schedule established in 
                the record of decision, or earlier if feasible.
                    (B) Manage the Environmental Water Account and the 
                Ecosystem Restoration Program to maximize the water 
                supply benefits to be provided by the increased pumping 
                capability.
                    (C) Implement the other actions in section 2.2.6. 
                of the record of decision.
    (b) Environmental Water Management.--
            (1) Management of environmental water account.--The Federal 
        agencies, in cooperation with the State agencies, shall manage 
        the Environmental Water Account and the Ecosystem Restoration 
        Program under the record of decision as part of a comprehensive 
        plan to provide assurances that actions taken to protect 
        species listed under section 4(c) of the Endangered Species Act 
        of 1973 (16 U.S.C. 1533(c)), pursuant to biological opinions 
and incidental take permits under that Act, will be carried out in a 
manner that--
                    (A) avoids redirected impacts and water supply and 
                water quality impacts to the Central Valley Project and 
                the State Water Project and to water right holders in 
                the Bay-Delta solution area; and
                    (B) avoids adverse effects on the water right 
                holders in the Bay-Delta solution area, by not imposing 
                any direct costs or indirect costs on the water users 
                in the Bay-Delta solution area.
            (2) Environmental water account priorities and operation.--
        (A) The Secretary shall give first priority, in the allocation 
        and use of Environmental Water Account and the Ecosystem 
        Restoration Program assets actually obtained or developed, to 
        meeting the water supply assurances set forth in paragraph (1).
            (B) If, by December 31 of any year, the Environmental Water 
        Account Tier 2 assets (as that term is used in section 2.2.7 of 
        the record of decision) water purchase targets, or their 
        functional equivalents, have not been met, the Federal agencies 
        shall continue their efforts to meet such water purchase 
        targets and shall make use of the available Environmental Water 
        Account assets to avoid jeopardizing the continued existence of 
        any species listed under section 4(c) of the Endangered Species 
        Act of 1973 (16 U.S.C. 1533(c)) in a manner consistent with 
        minimizing water supply and water quality impacts.
            (C) If the efforts to meet such water purchase targets are 
        unsuccessful, the maximum responsibility of water service 
        contractors of the State Water Project and the Central Valley 
        Project to provide water for Environmental Water Account Tier 2 
        asset purposes shall be the difference between the 
        Environmental Water Account purchase targets established in 
        section 2.2.7 of the record of decision and the amount of water 
        actually acquired. This section shall not impose any 
        obligations or responsibilities on other water users within the 
        Bay-Delta watershed.

SEC. 104. IMPLEMENTATION OF THE CALFED PROGRAM.

    (a) In General.--The Secretary and the Federal agencies shall, 
subject to approvals and the availability of appropriations under this 
Act, and consistent with the goals included pursuant to paragraph (3) 
of section 107(a) in annual reports under that section, carry out all 
actions necessary to implement the CALFED program.
    (b) Balanced Regulatory Implementation.--The Secretary and the 
Federal agencies, in carrying out their regulatory responsibilities 
under any Federal law, shall not--
            (1) treat one CALFED program element as an alternative to 
        another CALFED program element; or
            (2) consider, as an alternative to one element of the 
        CALFED program, implementation of any other element of the 
        CALFED program beyond the levels described in the record of 
        decision.
    (c) Regulatory Coordination.--The Secretary, working with the 
Governor of the State of California, shall, on or before January 1, 
2003, develop a regulatory coordination and streamlining process for 
the issuance of permits and approvals required under State and Federal 
law for projects under the CALFED program, to ensure that all Federal 
agencies' and State agencies' respective regulatory programs will be 
coordinated in a manner that reduces or eliminates duplicative 
processes or decisionmaking, thereby reducing costs and time that would 
otherwise be required.
    (d) Program Agencies Discretion.--This Act shall not affect the 
discretion of any of the Program agencies or the authority granted to 
any of the Program agencies by any other Federal or State law.
    (e) Authorization of Appropriations.--
            (1) In general.--In addition to the other amounts 
        authorized by this Act, there are authorized to be appropriated 
        for activities that implement the CALFED program--
                    (A) for each of fiscal years 2002 through 2004, 
                $200,000,000; and
                    (B) for each of fiscal years 2005 through 2032 such 
                sums as may be necessary for balanced completion of 
                Stage 1 of the CALFED program and balanced 
                implementation of subsequent stages of the CALFED 
                program.
            (2) Continuing availability.--Funds appropriated pursuant 
        to this subsection may remain available until expended.

SEC. 105. COMPETITIVE GRANT PROGRAM.

    (a) General Authority.--The implementing entity shall undertake a 
competitive grant program to--
            (1) investigate and identify opportunities for the design 
        and construction of demonstration and permanent facilities, or 
        the implementation of other programs, to--
                    (A) increase water yield and water supply;
                    (B) maintain existing water supply;
                    (C) improve water quality; or
                    (D) improve water use efficiency and water 
                conservation, reclamation, desalination of brackish and 
                sea water, and recycling of wastewater and impaired 
                ground and surface waters;
            (2) carry out design and construction of facilities and 
        implement other programs identified pursuant to paragraph (1);
            (3) conduct research, including desalination and other new 
        and innovative techniques and techniques for water treatment, 
        regarding sea water and the reclamation of wastewater and 
        impaired ground and surface waters; and
            (4) encourage watershed management actions to increase 
        water quality, water yield, water supply, and groundwater 
        recharge and storage.
    (b) Limitations on Grants.--
            (1) Location of project.--Grants under the program may be 
        made only for projects carried out in a State that contains 
        Reclamation lands.
            (2) Per state limit.--(A) Except as provided in 
        subparagraph (B), of the amount available in a fiscal year for 
        grants under the program, not more than 50 percent may be used 
        for projects in a single State.
            (B) The Secretary may increase the percentage that applies 
        under subparagraph (A) if the Secretary finds that, due to the 
        lack of grant applications for projects that the Secretary 
        finds meet the evaluation criteria under this section, such 
        increase is necessary to ensure the use of amounts available 
        for such fiscal year for such grants.
    (c) Evaluation Criteria.--In determining what projects described in 
subsection (a) are eligible for funding under this section, the 
implementing entity, to the maximum extent possible, shall consider the 
following criteria:
            (1) Whether a project--
                    (A) increases water yield and water supply;
                    (B) reduces or stabilizes demand on existing 
                Federal and State water supply facilities; or
                    (C) increases the availability of locally and 
                regionally developed water supplies.
            (2) Whether a project improves water quality in a manner 
        that results in continuous, measurable, and significant water 
        quality benefits, except that any project the primary purpose 
        of which is the project sponsor's compliance with the Federal 
        Water Pollution Control Act shall not be considered as 
        improving water quality for purposes of this paragraph.
            (3) Whether a project--
                    (A) serves a small, rural, or economically 
                disadvantaged community or Indian tribes;
                    (B) shows economic benefits; and
                    (C) is cost-effective.
            (4) Whether a project restores or enhances habitats, 
        including those affected by or affecting project operation, or 
        provides water for, or otherwise protects, Federal or State 
        listed threatened or endangered species, or facilitates 
        consensus-based environmental restoration programs.
            (5) Whether a project helps meet existing legal 
        requirements, contractual water supply obligations, Indian 
        trust responsibilities, water rights settlements, water quality 
        control plans and department of health requirements, Federal 
        and State environmental laws, the Federal Water Pollution 
        Control Act, or other obligations.
            (6) Whether a project promotes and applies a regional or 
        watershed perspective to water resource management or cross-
        boundary issues, implements an integrated resources management 
        approach, increases water management flexibility, or forms a 
        partnership with other entities.
            (7) Whether a project improves health and safety of the 
        general public.
            (8) Whether a project provides benefits outside the region 
        in which the project occurs.
            (9) Whether a project provides benefits to the agricultural 
        community, including any adverse impacts on agricultural 
        production and agricultural lands.
    (d) Construction Grants.--No grant may be made under this section 
for the construction of any project until after--
            (1) an appraisal investigation and a feasibility study have 
        been completed;
            (2) the implementing entity has determined that the non-
        Federal project sponsor is financially capable of funding the 
        non-Federal share of the project's costs; and
            (3) the implementing entity has approved a cost-sharing 
        agreement with the non-Federal project sponsor that commits the 
        non-Federal project sponsor to funding its share of the 
        project's construction costs on an annual basis, and ongoing 
        operations and maintenance.
    (e) Cost Sharing.--
            (1) In general.--Except as provided in paragraph (2), and 
        notwithstanding any other provision of this Act, a grant under 
        this section shall not exceed the lesser of $50,000,000 (June 
        2000 prices) or 35 percent of the total cost of the project.
            (2) Reduced non-federal share.--The implementing entity may 
        reduce the non-Federal share of the cost of a project carried 
        out with a grant under this section, including (subject to the 
        availability of amounts for such grants, and less than $50 
        million) by increasing the amount of the Federal share of such 
        costs to an amount that is greater than the amount specified in 
        paragraph (1), if the implementing entity, through the 
        Secretary, determines that--
                    (A) the project is for the benefit of a small, 
                rural, or socially disadvantaged community or an Indian 
                tribe; and
                    (B) application of paragraph (1) would result in 
                economic hardship for such community or Indian tribe.
    (f) Annual Report.--The implementing entity shall provide the 
Congress an annual report detailing the benefits gained by projects 
funded under this section, and expenditures for each such project. The 
report shall include information on each project the implementing 
entity has approved for funding, including an assessment of how the 
project met each of the evaluation criteria under this section.
    (g) Implementing Entity Defined.--In this section the term 
``implementing entity''--
            (1) except as provided in paragraph (2), means the 
        Secretary; and
            (2) for purposes of grants under this section for projects 
        in California, means the Water Security Board.
    (h) Authorization of Appropriations.--For grants under this 
section, there are authorized to be appropriated--
            (1) $50,000,000 for fiscal year 2002; and
            (2) $500,000,000 for each fiscal year thereafter.

SEC. 106. AUTHORIZATION AND APPROPRIATION PROCESS.

    (a) Activities Other Than Construction and Acquisition.--There are 
authorized to be appropriated to the Secretary such sums as are 
necessary to pay the Federal share of CALFED program costs and expenses 
for--
            (1) prefeasibility and feasibility studies, environmental 
        reviews, permit acquisitions, and related preconstruction and 
        preland acquisition activities;
            (2) administration of all CALFED program areas, including 
        governance, monitoring, and implementation of a comprehensive 
        science program; and
            (3) acquiring the Tier 2 and Tier 3 assets (as those terms 
        are defined in the record of decision) for the Environmental 
        Water Account.
    (b) Construction and Acquisition Activities.--The process for 
authorizing appropriations to pay the Federal share of the costs of 
implementing elements of the CALFED program, as set forth in the record 
of decision, through the construction of projects and the acquisition 
of lands, easements, and rights-of-way shall be as follows:
            (1) Every odd-numbered year beginning in 2003 at the same 
        time the Secretary submits the report described in section 
        107(a), the Water Security Board, acting through the Secretary, 
        shall submit to the congressional authorizing committees a 
        report setting forth the list of projects and other actions 
        that are proposed for construction or acquisition in order to 
        implement the CALFED program over the next 2 fiscal years. The 
        list shall specify which projects and actions require 
        authorization by the Congress through the process set forth in 
        this subsection. The Water Security Board and the Secretary 
        shall certify that implementation of the CALFED program in the 
        manner set forth in the report will result in balanced 
        implementation in all CALFED program areas.
            (2) No amounts may be appropriated for any fiscal year 
        after fiscal year 2003 for any project or other action that has 
        not been previously authorized and that requires construction 
        or acquisition of lands, easements, and rights-of-way, unless 
        the project has been specifically authorized by law.
            (3) It is the intent of Congress that the authorizations 
        and appropriations for implementation of the CALFED program 
        shall promote and carry out the fundamental principle that the 
        CALFED program components, consisting of ecosystem restoration, 
        watershed improvements, water supply improvements, storage 
        including water yield, conveyance, water use efficiency, water 
        quality improvement, and levee stability, must progress 
        together in a balanced manner.
            (4) If the Congress, through the authorization and 
        appropriation process set forth in this section, amends, or 
        fails to authorize or fund, the projects and other actions 
        included in a report submitted pursuant to paragraph (1), the 
        Secretary shall, in consultation with the Water Security Board, 
        redetermine whether implementation of the projects and other 
        actions, as authorized or funded, respectively, by the Congress 
        will maintain balanced implementation in all CALFED program 
        areas. If the Secretary finds that implementation of such 
        projects, as so authorized or funded by the Congress, will not 
        maintain balanced implementation in all program areas, the 
        Secretary shall report to the Congress the finding and 
        recommend those steps needed to restore balance to the 
        implementation process.
    (c) Contents of Reports.--
            (1) In general.--For each project recommended under 
        paragraph (1), the reports under this subsection shall 
        include--
                    (A) a project description;
                    (B) feasibility and operational studies;
                    (C) required environmental documentation;
                    (D) a finding of consistency with the record of 
                decision;
                    (E) a cost-benefit analysis;
                    (F) identification of project benefits and 
                beneficiaries;
                    (G) identification of adverse impacts, if any, to 
                agricultural, municipal, industrial, or other water 
                users;
                    (H) a cost and benefit allocation plan;
                    (I) financing and repayment plan; and
                    (J) in the case of a project proposed to be funded 
                with a grant under section 105, a certification that an 
                agreement in accordance with section 105(d)(3) has been 
                signed and the Water Security Board has determined that 
                the non-Federal project sponsor is financially capable 
                of funding the project's non-Federal share of the 
                project's costs, and ongoing operations and 
                maintenance.
            (2) Recommendations regarding specific projects.--The Water 
        Security Board, through the Secretary, shall include in reports 
        under this subsection recommendations with respect to 
        construction of the surface storage, groundwater storage, and 
        complementary actions, that would improve water system 
        reliability, water quality, water supply, or water yield, or 
        any combination thereof, consistent with the dates specified in 
        the record of decision or such other date as may be specified 
        by the Water Security Board.

SEC. 107. ANNUAL REPORTS.

    (a) Annual Water Report by Water Security Board.--Not later than 
February 1 of each year, the Water Security Board, through the 
Secretary, shall submit to the Congress an annual report that includes 
the following:
            (1) Federal funding.--An accounting of all Federal funds 
        received (or to be received) by the Water Security Board, 
        including--
                    (A) a description of all projects and activities 
                carried out with such funds;
                    (B) amounts received by the State that have not yet 
                been expended by the State; and
                    (C) cost allocation and any applicable repayment 
                capacity findings for new projects.
            (2) Assessment of achievements.--A description and 
        assessment of expenditures and achievements of the CALFED 
        program and the competitive grant program under section 105 in 
        the current fiscal year, including accomplishments in 
        achieving--
                    (A) increased water supply and water yield;
                    (B) improved water quality, including--
                            (i) measures taken to improve salinity;
                            (ii) an assessment of progress made in 
                        implementing drinking water sources protection 
                        projects and programs described in the record 
                        of decision; and
                            (iii) identification of regionally and 
                        locally sponsored projects and programs to 
                        improve water treatment infrastructure and 
                        technology;
                    (C) enhanced environmental benefits, including 
                ecosystem restoration;
                    (D) improved water system reliability, water use 
                efficiency, watershed management, water transfers, and 
                levee protection; and
                    (E) benefits in all geographic regions covered 
                within the Bay-Delta solution area.
            (3) Performance measures.--A clear statement of goals to 
        achieve, under the CALFED program--
                    (A) increased water supply and water yield;
                    (B) improved water quality;
                    (C) enhanced environmental benefits; and
                    (D) improved water system reliability, water use 
                efficiency, watershed management, water transfers, and 
                levee protection.
    (b) Annual Budget Crosscut Report.--Not later than February 1 of 
each year, the Director of the Office of Management and Budget shall 
submit to the Congress an interagency budget crosscut report that 
describes in detail--
            (1) all proposed and planned Federal expenditures in the 
        next fiscal year on ecosystem restoration and other purposes in 
        the Bay-Delta solution area; and
            (2) all proposed and planned State of California and 
        Federal expenditures in the next fiscal year to achieve the 
        objectives identified within the record of decision.

SEC. 108. TREATMENT OF FUNDS.

    Funds authorized to be appropriated by this title to those Federal 
agencies that are currently or subsequently become participants in the 
CALFED program shall be in addition to the baseline funding levels 
established for currently authorized projects and programs under the 
Central Valley Project Improvement Act (title XXXIV of Public Law 102-
575) and other currently authorized Federal programs for the purposes 
of Bay-Delta ecosystem protection and restoration and water system and 
water quality improvement.

SEC. 109. LAND ACQUISITION; MANAGEMENT PLAN REQUIRED FOR EXISTING LAND.

    Federal funds, including Federal grant funds, may not, for purposes 
of implementing the record of decision, be used to acquire any 
additional lands for CALFED ecosystem restoration unless the State 
agencies and Federal agencies, through the Secretary and by not later 
than January 1, 2003, develop a management plan for all lands acquired 
for CALFED program ecosystem restoration before the date of enactment 
of this Act.

SEC. 110. ENVIRONMENTAL JUSTICE.

    It is the intent of the Congress that--
            (1) implementation of the CALFED program by the Federal 
        agencies and State agencies should fulfill the commitment to 
        addressing environmental justice challenges referred to in the 
        CALFED Bay-Delta Program Environmental Justice Workplan, dated 
        December 13, 2000;
            (2) the Federal agencies and State agencies should continue 
        to collaborate to develop a comprehensive environmental justice 
        workplan for the CALFED program, including through continuation 
        of the functions of the CALFED-Bay Delta Environmental Justice 
        Workgroup; and
            (3) the Water Security Board should collaborate with such 
        workgroup to ensure fulfillment of the commitment referred to 
        in paragraph (1).

                  TITLE II--SMALL RECLAMATION PROJECTS

SEC. 201. SHORT TITLE; REFERENCES.

    (a) Short Title.--This title may be cited as the ``Small 
Reclamation Water Resources Project Act of 2001''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this title an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Small Reclamation Projects Act of 1956 (43 U.S.C. 422 et seq.).

SEC. 202. AMENDMENTS TO THE SMALL RECLAMATION PROJECTS ACT OF 1956.

    (a) Purpose.--The first section (43 U.S.C. 422a) is amended--
            (1) by striking ``under the'' and inserting ``under this 
        Act and other''; and
            (2) by adding at the end the following: ``Such projects may 
        include, but shall not be limited to, irrigation projects. 
        Irrigation shall not be a required purpose for projects 
        receiving assistance under this Act. In providing assistance, 
        the Secretary shall give priority to recommended proposals that 
        are related to a project that is otherwise authorized under the 
        Federal reclamation laws and that will benefit from assistance 
        under this Act.''.
    (b) Definitions.--Section 2 (43 U.S.C. 422b) is amended--
            (1) in paragraph (c), by striking ``a State'' and inserting 
        ``an Indian Tribe, a State'';
            (2) by striking paragraph (d) and inserting the following:
    ``(d) The term `project' means any of the following:
            ``(1) A multipurpose water resource development carried out 
        by a non-Federal organization involving significant 
        conservation of water, energy, and the environment.
            ``(2) The rehabilitation, betterment, or retrofit of any 
        existing Federal or non-Federal water infrastructure for 
        purposes of complying with law and regulations.
            ``(3) An activity described in paragraph (1) or (2) that--
                    ``(A) is carried out by a non-Federal organization 
                under the Federal reclamation laws in one or more of 
                the 17 western reclamation States, Hawaii, Alaska, the 
                Commonwealth of Puerto Rico, Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, the 
                Virgin Islands, and the Trust Territory of the Pacific 
                Islands; and
                    ``(B) in the case of an activity proposed for any 
                project that is authorized under the reclamation laws 
                immediately before the enactment of the Small 
                Reclamation Water Resources Project Act of 2001, is 
                determined by the Secretary to be consistent with the 
                purposes of that project before that date of 
                enactment.''; and
            (3) by striking paragraph (f) and inserting the following:
    ``(f) The term `water quality improvements' means operational 
measures and physical features associated with--
            ``(1) the reclamation and reuse of irrigation drainage or 
        municipal and industrial return flows, including wastewater 
        flows; or
            ``(2) the reclamation, or control, of brackish, toxic, or 
        impaired waters for beneficial reuse or protection of other 
        related water, land, or environmental resources.''.
    (c) Modification of Loan and Grant Programs.--The Small Reclamation 
Projects Act of 1956 is amended--
            (1) by striking sections 3 through 8 (43 U.S.C. 422c-422h); 
        and
            (2) by inserting after section 2 (43 U.S.C. 422b) the 
        following:

    ``TITLE I--STATE AND LOCAL PARTICIPATION IN RECLAMATION PROJECTS

``SEC. 101. LOAN, GRANT, AND LOAN GUARANTEE PROGRAM.

    ``There is hereby established a program within the Bureau of 
Reclamation, under which the Secretary may make loans, grants, and loan 
guarantees to any organization to carry out a project.

``SEC. 102. PROPOSAL CONTENTS AND REQUIREMENTS.

    ``(a) In General.--Any organization seeking assistance under this 
title shall submit a proposal to the Secretary in such form and manner 
as the Secretary may prescribe. Any proposal for a project submitted 
under this title shall set forth a plan and estimated cost in detail 
comparable to those included in preauthorization reports required for a 
project under the Federal reclamation laws.
    ``(b) Lands and Waters.--Each proposal submitted under this title 
shall include a statement of financial capability and legal authority, 
and a resolution from the governing board of the organization showing 
that the organization seeking assistance--
            ``(1) holds or can acquire all lands and interests in land 
        (except public and other lands and interest in land owned by 
        the United States that are within the administrative 
        jurisdiction of the Secretary and subject to disposition by the 
        Secretary) to complete the project;
            ``(2) holds or can acquire all rights, pursuant to 
        applicable State law, to the use of water necessary for the 
        successful construction, operation, and maintenance of the 
        project;
            ``(3) is willing to finance, and capable of financing, the 
        non-Federal portion of the costs of the project, including all 
        costs of acquiring lands, interests in land, and rights to the 
        use of water, except as provided in section 105(b)(2); and
            ``(4) has the legal authority and responsibility under 
        State law to carry out the project.

``SEC. 103. FEDERAL SHARE AND PROJECT SPONSOR SHARE OF COSTS.

    ``(a) In General.--The Secretary shall require each organization 
receiving assistance under this title to contribute toward the cost of 
the project (other than by loan or grant of Federal funds) not less 
than 25 percent of the costs of the project. The Secretary shall credit 
toward the non-Federal cost share that amount--
            ``(1) the costs paid by the organization for 
        investigations, surveys, engineering, administration, and other 
        services necessary for the preparation of proposals and plans 
        for the proposed project that are required by the Secretary;
            ``(2) the value of lands, rights-of-way, and water rights 
        acquisition required for the proposed project that are provided 
        by the organization;
            ``(3) amounts spent by the organization for construction or 
        acquisition of facilities for the proposed project prior to 
        project approval; and
            ``(4) the fee required by section 403.
    ``(b) Prevention of Loss and Damage to Fish and Wildlife.--The 
costs of measures to prevent loss of, and damage to, existing fish and 
wildlife resources as the result of a project for which assistance is 
provided under this title shall be considered project costs and, for 
purposes of reimbursement, shall be allocated as may be appropriate 
among project functions.
    ``(c) Maximum Allowable Federal Share.--The maximum allowable 
Federal share per project shall be $50,000,000 (January 2001 dollars).
    ``(d) Increase in Amount.--To compensate for increases in 
construction costs due to price escalation, and subject to subsection 
(c), the Secretary may increase the amount of a loan or grant, or both, 
under this title for a project at any time prior to the completion of 
construction of the project, using the Bureau of Reclamation's 
composite construction cost trends index.

``SEC. 104. APPROVAL OR DISAPPROVAL OF PROJECTS.

    ``(a) In General.--The Secretary shall determine whether a proposal 
under this title is financially feasible and constitutes a reasonable 
risk, and either approve or disapprove the proposal, by not later than 
the later of--
            ``(1) one year after the date the proposal is submitted to 
        the Secretary; or
            ``(2) the date of the completion of the appropriate 
        documentation under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.).
    ``(b) Transmittal to Congress.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall promptly transmit any approved proposals to the Congress 
        with a brief statement of the project purposes and funding 
        requirements.
            ``(2) Completion of documentation.--The documentation 
        required under the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.) for a proposed project must be 
        completed before the Secretary transmits the proposal to the 
        Congress.

``SEC. 105. CONTRACT TERMS AND CONDITIONS.

    ``(a) In General.--Upon approval of any project proposal submitted 
under this title by an organization, the Secretary shall negotiate with 
the organization a contract establishing the terms under which 
assistance shall be provided under this title.
    ``(b) Contract Terms.--The contract shall include the following:
            ``(1) The maximum amount of any grant, which shall not 
        exceed 50 percent of the maximum allowable Federal share of the 
        costs of the project under section 103.
            ``(2) The time and method of making any grant or loan 
        available to the organization.
            ``(3) Such terms and conditions as the Secretary considers 
        necessary or proper to provide assurance of, and security for, 
        prompt repayment of any loan and to ensure achievement of the 
        purposes for which the loan was made.
            ``(4) A plan for repayment by the organization of any loan 
        within 25 years, except that the organization shall have the 
        right to prepay the loan or any component thereof without 
        penalty.
            ``(5) For any loan, payment of interest at a rate 
        established by the Secretary of the Treasury at the beginning 
        of the fiscal year in which the contract is executed, that 
        shall be based on the average market yield on outstanding 
        marketable obligations of the United States with periods of 
        maturity comparable to the applicable repayment period of the 
        loan.
    ``(c) Loans Projects by Indian Tribes.--
            ``(1) In general.--For any project undertaken by an Indian 
        tribe with assistance under this title, the Secretary shall--
                    ``(A) determine, based on the findings in the 
                proposal under section 102, the reimbursable and 
                nonreimbursable costs for the project constructed under 
                this Act;
                    ``(B) apportion those costs in accordance with the 
                benefits received; and
                    ``(C) allocate the reimbursable costs to the 
                project beneficiaries.
            ``(2) Leavitt act.--The Act of July 1, 1932 (chapter 369; 
        25 U.S.C. 386a), popularly known as the `Leavitt Act', shall 
        not apply to loans made under this Act.

                    ``TITLE II--PARTNERSHIP PROGRAM

``SEC. 201. ESTABLISHMENT OF PARTNERSHIP PROGRAM.

    ``(a) Program.--There is hereby established within the Bureau of 
Reclamation a small grant and loan program to be known as the Small 
Reclamation Water Resources Management Partnership Program, to be 
carried out under this title. The purpose of this program shall be to 
implement projects that can be performed--
            ``(1) by the recipient organization's workforce or 
        contractors,
            ``(2) with streamlined documentation, and
            ``(3) in a period of 18 months or less.
    ``(b) Grants.--Grants under this title shall not exceed $5,000,000 
for any one project under such program. The Secretary shall require the 
recipient organization to provide matching funds in an amount equal to 
50 percent of the amount of the grant.
    ``(c) Loans.--Loans under this title shall not exceed $5,000,000 
per project, and shall be subject to cost sharing in the same manner as 
provided in title I. The contract for each loan under this title shall 
require payment of interest at a rate established by the Secretary of 
the Treasury in the same manner as provided in section 105(b)(5) for 
loans under title II.

``SEC. 202. REPAYMENT OF LOANS.

    ``Each loan made under this title shall be repaid within the 5-year 
period beginning on the date the Secretary certifies that work to be 
carried out with the loan is completed.

``SEC. 203. ELIGIBLE ACTIVITIES.

    ``(a) In General.--The following types of activities shall be 
eligible for grants or loans under this title:
            ``(1) Water conservation.
            ``(2) Water quality improvement projects.
            ``(3) Water management for urban landscapes.
            ``(4) Drought assistance.
            ``(5) Fish and wildlife improvements.
            ``(6) Public safety improvements.
            ``(7) Water supply, including water production, conveyance, 
        conservation, and management.
    ``(b) Additional Activities.--The Secretary may add to the list of 
eligible activities under subsection (a) as the Secretary considers 
appropriate, except that any such addition shall not take effect until 
60 days after the Secretary publishes a notice of the proposed addition 
in the Federal Register, and has notified the Committee on Resources of 
the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate in writing of the proposed addition and the 
reasons therefore.

``SEC. 204. APPLICATION PROCESS.

    ``(a) Notice of Intent.--Each organization seeking a grant or loan 
under this title shall submit a notice of intent to the Secretary by 
April 1 of each year outlining the proposed project and the public 
benefits thereof. Within two months, the Secretary shall provide a 
written response to the organization, expressing either the Bureau of 
Reclamation's interest or disinterest in participating in the project.
    ``(b) Application.--30 days after receipt of a response under 
subsection (a) expressing the Bureau of Reclamation's interest in 
participating in a project, the organization may submit to the 
Secretary an appropriate loan or grant application, giving details of 
the project and the anticipated public benefits.
    ``(c) Contents.--The application for any project proposal under 
this title shall include each of the following:
            ``(1) A resolution by the board of directors of the 
        organization stating--
                    ``(A) the total estimated project cost;
                    ``(B) the amount of the grant or loan requested;
                    ``(C) the amount of the non-Federal contribution 
                for any grant;
                    ``(D) the organization's ability to finance and 
                construct the project; and
                    ``(E) the project objectives.
            ``(2) A summary of the proposal.
            ``(3) A brief description of the anticipated effects of the 
        project on the environment.
            ``(4) Evidence that the organization has all lands and 
        water rights needed for the project, or can obtain them and has 
        legal authority and responsibility under, State law to carry 
        out the proposed project.
            ``(5) A project plan, including a general map showing the 
        location of proposed physical features, conceptual engineering 
        drawings of major and typical structures, and general standards 
        for design.
            ``(6) A construction schedule, with dates and a schedule of 
        funding requirements under this title, in sufficient detail to 
        provide an analysis of the proposed construction program.
            ``(7) A description of the proposed Federal funding for the 
        project and of the non-Federal funding for the project.
    ``(d) Costs.--The cost of any investigations and preparation of any 
environmental documentation for a project carried out with assistance 
under this title shall be borne by the project applicant, and shall be 
credited against the non-Federal cost share.
    ``(e) Annual Listing.--The Secretary shall include in the annual 
budget justification for the Bureau of Reclamation, a listing of the 
activities and total funding required for work committed to under this 
title.

``SEC. 205. TERMS AND CONDITIONS OF PROJECT WORK.

    ``The Secretary shall examine each project proposal submitted under 
this title to determine if the project can reasonably be expected to 
accomplish its purpose, and approve or disapprove such proposal by 
September 1 of the year in which the application for assistance under 
this title is submitted. If the Secretary approves the proposal, and 
subject to the availability of appropriations, the Secretary shall 
provide funding within 60 days after such approval for work scheduled 
for the next fiscal year.

``SEC. 206. LIMITATION ON PROJECT PROPOSALS.

    ``Only one proposal may be submitted under this title by an 
applicant in any 5-year period.

                      ``TITLE III--LOAN GUARANTEES

``SEC. 301. ESTABLISHMENT OF LOAN GUARANTEE PROGRAM.

    ``There is hereby established within the Bureau of Reclamation a 
demonstration program to guarantee loans for projects receiving, or 
eligible to receive, loans or grants under title I or II of this Act.

``SEC. 302. PROGRAM REQUIREMENTS.

    ``(a) In General.--The Secretary may provide support under the 
demonstration program to organizations through the provision of loan 
guarantees for the purposes for which assistance is authorized under 
titles I and II, under such terms and conditions as are specified in 
this section. Any proposal for a project submitted under this title 
shall set forth a plan and estimated costs, in detail, comparable to 
those required to be included in preauthorization reports required for 
a project under the Federal reclamation laws.
    ``(b) Selection of Recipients.--The Secretary shall adopt and use 
competitive procedures in the selection of organizations to receive 
loan guarantees under this section. In selecting any organization to 
receive a loan guarantee under this section, the Secretary shall 
consider, at a minimum, the following:
            ``(1) The extent to which the loan guarantee would support 
        new water supplies or more efficient use of existing supplies.
            ``(2) The repayment period of the guaranteed loan.
            ``(3) The extent to which the loan guarantee would provide 
        for a project of wide public purpose.
            ``(4) Whether the loan guarantee would help the 
        organization comply with a Federal or State environmental 
        statute or regulation.
            ``(5) The extent to which the loan guarantee would enable 
        the organization to meet the needs of other local water 
        purveyors.
            ``(6) The extent to which the guaranteed loan would support 
        a program that would supplement, rather than duplicate, other 
        available water resource programs.
            ``(7) The fiscal impact of the loan guarantee program as a 
        whole on other Bureau of Reclamation programs.
    ``(c) Apportionment.--The total amount made available to the 
Secretary for a fiscal year to cover the costs of loan guarantees under 
this section shall be divided between projects receiving or eligible to 
receive loans under titles I and II, with title I projects receiving 75 
percent and title II projects receiving 25 percent.
    ``(d) Maximum.--The maximum amount of a loan guaranteed under this 
section may not exceed 75 percent of the total cost of the project 
carried out with the loan.
    ``(e) Limitation on Use of Loan.--No loan guaranteed under this 
title shall be used to cover the organization's local cost share for 
any project assisted under this Act.
    ``(f) Reporting.--Reporting and documentation requirements under 
titles I and II shall similarly apply to loan guarantees under this 
title.
    ``(g) State Law.--For purposes of this Act, when any bonds are 
issued by an organization to help finance a project for which the 
organization is also receiving a loan guarantee under this section, 
such bonds shall not be treated as affecting the tax-exempt status of 
such bonds under applicable State law.
    ``(h) Full Faith and Credit.--Any loan guarantee issued pursuant to 
this section shall constitute an obligation, in accordance with the 
terms of such guarantee, of the United States Government, and the full 
faith and credit of the United States is hereby pledged to the full 
performance of the obligations.
    ``(i) Report.--At the end of the third fiscal year after the 
enactment of this subsection, the Secretary shall submit a report to 
the Congress on the beneficial use and suggested improvements for use 
of loan guarantees under this title as a mechanism for project 
construction.

``SEC. 303. SUNSET.

    ``No loan guarantee may be issued under this title in any fiscal 
year after the expiration of 10 full fiscal years after initial funding 
of projects under the amendments made by the Small Reclamation Water 
Resources Project Act of 2001.

                     ``TITLE IV--GENERAL PROVISIONS

``SEC. 401. PROPOSAL FEE.

    ``The Secretary shall assess and collect a fee to defray the cost 
of examining each proposal for a loan, grant, or loan guarantee under 
this Act. The amount of the fee shall be equal to $5,000 or \1/10\ of 1 
percent of the Federal share of the costs of the proposed project, 
whichever is greater. The Secretary shall require that 50 percent of 
the fee shall accompany the application and the remainder shall be due 
only upon approval of the project by the Secretary.

``SEC. 402. MISCELLANEOUS PROVISIONS.

    ``(a) Title.--Title to all project works and facilities constructed 
with assistance under this Act shall remain in the name of the 
organization.
    ``(b) Combined Loans, Grants, and Loan Guarantees.--A project 
sponsor shall be eligible for a loan, grant, loan guarantee, or 
combination thereof for a project proposal under this Act. An applicant 
may submit one proposal to be carried out with assistance under more 
than one title under this Act. No organization shall be eligible for an 
additional loan, grant, loan guarantee, or any combination thereof for 
the same project that has previously received approval for a loan, 
grant, or loan guarantee under this Act within the prior five fiscal 
years.
    ``(c) Planning, Construction, Operation, and Maintenance.--The 
United States shall not be required to provide planning, construction, 
operation, and maintenance of any project receiving a loan, grant or 
loan guarantee under this Act.
    ``(d) State Water Law.--Any project assisted under this Act shall 
be carried out in accordance with applicable State water law.''.
    (d) Conforming Amendments.--
            (1) Sections 9 through 13 of the Small Reclamation Projects 
        Act of 1956 (43 U.S.C. 422i-422k-1) are redesignated as 
        sections 403 through 407, respectively.
            (2) Section 404 of such Act, as redesignated by paragraph 
        (1) of this subsection, is amended as follows:
                    (A) By striking ``section 3'' and inserting ``title 
                I''.
                    (B) By striking ``effective October 1, 1986,'' and 
                inserting ``for any fiscal year''.
                    (C) By striking ``for loans and grants pursuant to 
                this Act'' and inserting ``for loans and grants 
                pursuant to title I''.
                    (D) By striking ``five years after the date of 
                enactment of this Act'' and inserting ``ten years after 
                the date of enactment of the Small Reclamation Water 
                Resources Project Act of 2001''.
                    (E) By striking ``section 4(c)'' and inserting 
                ``title I''.

SEC. 203. ADDITIONAL APPROPRIATIONS.

    Section 404 of the Small Reclamation Projects Act of 1956 (43 
U.S.C. 422j), as redesignated by section 202(d)(1) of this Act, is 
further amended--
            (1) by striking ``such sums'' and all that follows through 
        ``That the Secretary'' and inserting ``to carry out this Act 
        $1,300,000,000 for fiscal years after fiscal year 2001, of 
        which $900,000,000 may be appropriated to carry out title I and 
        to complete ongoing projects under Public Law 84-984, 
        $300,000,000 may be appropriated to carry out title II, and 
        $100,000,000 may be appropriated to carry out title III. Of 
        funds authorized under this Act, not more than 20 percent shall 
        be used for projects to be carried out by Indian tribes or in 
        economically disadvantaged communities. The Secretary''; and
            (2) by striking ``any single State'' and all that follows 
        through ``the Secretary is authorized to waive'' and inserting 
        ``in any single State. Funds obligated or expended for projects 
        by Indian tribes shall not be considered for purposes of the 
        preceding sentence. The Secretary may waive''.

SEC. 204. GUIDELINES.

    Within 180 days after the date of enactment of this Act, the 
Secretary of the Interior shall complete and publish such 
administrative guidelines as may be necessary to carry out the 
amendments made by this title.

SEC. 205. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
enactment of this Act. Nothing in this title or in any amendment made 
by this title shall affect any loan or grant that has been approved 
before the date of enactment of this Act.

SEC. 206. LIMITATION.

    Activities funded under this title shall not be considered a 
supplemental or additional benefit under the Act of June 17, 1902 (82 
Stat. 388), and all Acts amendatory thereof or supplementary thereto.

                        TITLE III--MISCELLANEOUS

SEC. 301. SECRETARIAL ACTIONS TO REDUCE CALIFORNIA'S USE OF COLORADO 
              RIVER WATER.

    (a) Review.--The Secretary shall review programs that are 
administered by the Department of the Interior in furtherance of the 
goal of reducing California's use of Colorado River water to its basic 
annual apportionment, in a manner consistent with amounts and deadlines 
established in the Interim Surplus Guidelines.
    (b) Utilization of Existing Programs and Authorities.--The 
Secretary shall utilize existing programs and authorities in 
furtherance of the goal of reducing California's current use of 
Colorado River water.
    (c) Identification of Status of Ongoing Efforts.--In preparing the 
operating plans described in section 602(b) of the Colorado River Basin 
Project Act of 1968, beginning with the operating plan for 2003, the 
Secretary shall specifically identify and describe the status of 
ongoing efforts to reduce California's current use of Colorado River 
water.
    (d) Funding To Address Impacts of QSA on Salton Sea.--There is 
authorized to be appropriated to the Secretary $60,000,000 for 
activities to address environmental impacts on the Salton Sea 
associated with implementation of the Quantification Settlement 
Agreement.
    (e) Basis for Determinations of Domestic Colorado River Surplus 
Conditions.--For the purpose of assuring that California expeditiously 
takes all required actions to reduce its use of Colorado River water to 
its allocation of 4,400,000 acre-feet, in accordance with the strategy 
set forth in the Colorado River Interim Surplus Guidelines published in 
the Federal Register on January 25, 2001, the Secretary shall, on and 
after January 1, 2016, base determinations of domestic Colorado River 
surplus conditions under Article II(B)(2) of the Supreme Court Decree 
in Arizona v. California, 376 U.S. 340 (1964) exclusively on the 70R 
spill avoidance strategy, as set forth in section IV of the Interim 
Surplus Guidelines.

SEC. 302. WILLARD BAY RESERVOIR ENLARGEMENT STUDY.

    (a) Authorization of Feasibility Study.--Pursuant to the 
reclamation laws, the Secretary, through the Bureau of Reclamation, may 
conduct a feasibility study on raising the height of Arthur V. Watkins 
Dam and thereby enlarging the Willard Bay Reservoir for the development 
of additional storage to meet water supply needs within the Weber Basin 
Project area. The feasibility study shall include such environmental 
evaluation as required under the National Environmental Policy Act of 
1969 and a cost allocation as required under the Reclamation Projects 
Act of 1939.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit a report on the results of the 
study to the Congress for review and approval.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $2,000,000.

SEC. 303. AMENDMENTS TO THE FEDERAL WATER PROJECT RECREATION ACT.

    (a) Congressional Policy.--The first section of the Federal Water 
Project Recreation Act (16 U.S.C. 460l-12) is amended by striking 
``public bodies'' and inserting ``entities''.
    (b) Allocation of Costs.--Section 2 of the Federal Water Project 
Recreation Act (16 U.S.C. 460l-13) is amended--
            (1) in subsection (a) by striking ``, before authorization 
        of a project,'';
            (2) in subsection (a), by striking ``public bodies'' and 
        inserting ``entities'' and by striking ``Projects authorized 
        during the calendar year'' and all that follows to the end of 
        the subsection;
            (3) in subsection (b) by striking ``non-Federal interests'' 
        each place it appears and inserting ``non-Federal entities'';
            (4) in subsection (b)(2)--
                    (A) by striking ``: Provided, That the source of 
                repayment may be limited to'' and inserting ``. The 
                source of repayment may include''; and
                    (B) by inserting ``and retained'' after 
                ``collected''; and
            (5) in subsection (b)(2) by adding at the end the 
        following: ``Fees and charges may be collected, retained and 
        used by the non-Federal entities for operation, maintenance, 
        and replacement of recreation facilities on project lands and 
        waters being managed by the non-Federal entities. As 
        established by the Secretary, any excess revenues will be 
        credited to the Reclamation Fund to remain available, without 
        further Act of appropriation, to support recreation development 
        and management of Bureau of Reclamation land and water 
        areas.''.
    (c) Recreation and Fish and Wildlife Enhancement.--Section 3 of the 
Federal Water Project Recreation Act (16 U.S.C. 460l-14) is amended--
            (1) by striking subsection (a), redesignating subsection 
        (b) as subsection (a), and inserting after subsection (a) (as 
        so redesignated) the following:
    ``(b) In the absence of a non-Federal managing partner, the 
Secretary of the Interior, acting through the Commissioner of 
Reclamation, is authorized, as a part of any water resource development 
project under the Secretary's control heretofore or hereafter 
authorized or reauthorized, investigate, plan, construct, replace, 
manage, operate and maintain or otherwise provide for public use and 
enjoyment of project lands, facilities, and water areas in a manner 
coordinated with the other project purposes; the costs of which are 
nonreimbursable.'';
            (2) in subsection (a) (as so redesignated) by inserting 
        ``or enhance'' after ``project construction to preserve'', by 
        striking ``enhancement potential'' and inserting ``resources'', 
        and by striking ``public bodies'' each place it appears and 
        striking ``public body'' and inserting in lieu thereof 
        ``entities'' and ``entity'', respectively;
            (3) in subsection (c)(1)(B) by striking ``public body'' 
        each place it appears and inserting ``entity''; and
            (4) by adding at the end of subsection (c) the following:
    ``(3) In the absence of a non-Federal managing partner, the 
Secretary of the Interior, acting through the Commissioner of 
Reclamation, may modify or expand existing facilities, the costs of 
which are nonreimbursable.''.
    (d) Lease of Facilities.--Section 4 of the Federal Water Project 
Recreation Act (16 U.S.C. 460l-15) is repealed.
    (e) Post Authorization Development.--Section 5 of the Federal Water 
Project Recreation Act (16 U.S.C. 460l-16) is amended by striking 
``public bodies'' and inserting ``entities''.
    (f) Miscellaneous Reports.--Section 6 of the Federal Water Project 
Recreation Act (16 U.S.C. 460l-17) is amended--
            (1) in subsection (e) by striking ``and 5'' and inserting 
        ``and between 3 and 4'';
            (2) in subsection (g) by striking ``3(b)'' and inserting 
        ``3(a)''; and
            (3) in subsection (h) by striking ``public bodies'' and 
        inserting ``entities''; and by striking ``3(b)'' and inserting 
        ``3(a)''.
    (g) Miscellaneous Reports.--Section 6 of the Federal Water Project 
Recreation Act (16 U.S.C. 460l-17) is amended by adding at the end the 
following:
    ``(i) Amounts collected under section 2805 of Public Law 102-575 
for admission to or recreation use of project land and waters shall be 
deposited in a special account in the Reclamation Fund and remain 
available to the Commissioner of Reclamation without further 
appropriation until expended. Such funds may be used for the 
development, reconstruction, replacement, management, and operation of 
recreation resources on project lands and waters with not less than 60 
percent being used at the site from which the fees were collected.''.
    (h) Management for Recreation, Fish and Wildlife, and Other 
Resources.--Section 7 of the Federal Water Project Recreation Act (16 
U.S.C. 460l-18) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) The Secretary of the Interior, acting through the 
Commissioner of Reclamation, is authorized, in conjunction with any 
water resource development project heretofore or hereafter constructed 
or which is otherwise under the Secretary's control, to--
            ``(1) investigate, plan, design, construct, replace, 
        manage, operate, and maintain or otherwise provide for 
        recreation and fish and wildlife enhancement facilities and 
        services, the costs of which may be nonreimbursable;
            ``(2) provide for public use and enjoyment of project 
        lands, facilities, and water areas in a manner coordinated with 
        the other project purposes; and
            ``(3) to acquire or otherwise make available such adjacent 
        lands or interests therein as are necessary for public 
        recreation or fish and wildlife use.'';
            (2) in subsection (b), by inserting ``, acting through the 
        Commissioner of Reclamation,'' and inserting ``and management'' 
        after ``administration''; and by striking ``lease''; and by 
        adding at the end ``All such agreements or contracts for 
        administration or management shall identify the terms and 
        conditions of administration, management, and use, approvals 
        required from Bureau of Reclamation, and assure public access 
        to project lands managed for recreation.'';
            (3) by adding:
            ``(7) The Secretary of the Interior, acting through the 
        Commissioner of Reclamation, is also authorized to enter into 
        agreements with other non-Federal entities for recreation and 
        concession management at Bureau of Reclamation projects. All 
        such agreements or contracts for management shall identify the 
        terms and conditions of management and use, approvals required 
        from the Bureau of Reclamation, and assure public access to 
        project lands managed for recreation.''; and
            (4) by adding at the end the following:
    ``(d) The Secretary of the Interior, acting through the 
Commissioner of Reclamation, is authorized to approve the 
administration, management, and use of Bureau of Reclamation lands, 
waters, and the resources thereon by means of easements, leases, 
licenses, contracts, permits, and other forms of conveyance 
instruments.
    ``(e) The Secretary of the Interior, acting through the 
Commissioner of Reclamation, is authorized to produce and/or sell to 
the public: information about Bureau of Reclamation programs including 
publications, photographs, computer discs, maps, brochures, posters, 
videos, and other memorabilia related to the Bureau of Reclamation, and 
the natural, historic, and cultural resources of the area; and, other 
appropriate and suitable merchandise to enhance the public's use of the 
area. Income from such sales shall be credited to the Reclamation Fund 
to remain available, without further Act of appropriation, to pay costs 
associated with the production and sale of items, and any remaining 
revenue shall be available, without further Act of appropriation, to 
support recreation development and management of Bureau of Reclamation 
land and water areas.''.
    (i) Definitions.--Section 10 of the Federal Water Project 
Recreation Act (16 U.S.C. 4601-21) is amended by adding at the end the 
following:
    ``(f) The term `non-Federal entity' means non-Federal public 
bodies, nonprofit organizations, Indian tribes, or entities within the 
private sector.''.
    (j) Authorization of Appropriations.--The Federal Water Project 
Recreation Act (16 U.S.C. 460l-12 et seq.) is amended by redesignating 
section 12 as section 13, and by inserting after section 11 the 
following:

``SEC. 12. FUND AUTHORIZATIONS.

    ``There is hereby authorized to be appropriated from time to time 
such funds as may be required for the Secretary of the Interior, acting 
through the Commissioner of Reclamation to accomplish the purposes of 
this Act and remain available until expended.''.

SEC. 304. LIMITATIONS ON RECOVERY OF REIMBURSABLE EXPENSES FOR VALVE 
              REHABILITATION PROJECT AT THE ARROWROCK DAM, BOISE 
              PROJECT, IDAHO.

    The Secretary of the Interior, in accepting payments for the 
reimbursable expenses incurred for the replacement, repair, and 
extraordinary maintenance with regard to the Valve Rehabilitation 
Project at the Arrowrock Dam on the Arrowrock Division of the Boise 
Project, Idaho--
            (1) shall recover no more than $6,900,000 of such expenses 
        according to the application of the current formula for 
        charging users for reimbursable operation and maintenance 
        expenses at Bureau of Reclamation facilities on the Boise 
        Project; and
            (2) shall recover this portion of such expenses over a 
        period of not less than 15 years.

SEC. 305. CONTRACT ASSURANCES FOR PAYMENT OF PREVAILING WAGES FOR 
              LABORERS AND MECHANICS.

    Any contract under which laborers or mechanics may be employed, for 
a project or activity funded in whole or in part under title I or II 
(or under an amendment made by such title), shall contain reasonable 
assurances that each contractor or subcontractor involved shall pay 
laborers and mechanics employed by such contractor or subcontractor 
wages equivalent to those applicable under the Act of March 3, 1931 (40 
U.S.C. 276a et seq., commonly known as the Davis-Bacon Act).




                                                 Union Calendar No. 217

107th CONGRESS

  2d Session

                               H. R. 3208

                      [Report No. 107-360, Part I]

_______________________________________________________________________

                                 A BILL

  To authorize funding through the Secretary of the Interior for the 
  implementation of a comprehensive program in California to achieve 
 increased water yield and environmental benefits, as well as improved 
    water system reliability, water quality, water use efficiency, 
      watershed management, water transfers, and levee protection.

_______________________________________________________________________

                             March 14, 2002

 The Committees on Transportation and Infrastructure and Education and 
the Workforce discharged; committed to the Committee of the Whole House 
          on the State of the Union and ordered to be printed