[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3691 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3691

  To amend the Central Valley Project Improvement Act to provide for 
  improved water management and conservation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 7, 2005

  Mr. Nunes introduced the following bill; which was referred to the 
 Committee on Resources, and in addition to the Committee on Ways and 
 Means, 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

_______________________________________________________________________

                                 A BILL


 
  To amend the Central Valley Project Improvement Act to provide for 
  improved water management and conservation, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This title may be cited as the ``Central Valley Project Reform Act 
of 2005''.

SEC. 2. PURPOSES.

    Section 3402 of the Central Valley Project Improvement Act (106 
Stat. 4706) is amended by adding subsection (g) to read as follows:
    ``(g) to ensure that water dedicated to fish and wildlife purposes 
by this title is replaced and provided to Central Valley Project water 
contractors by 2012 at the lowest cost reasonably achievable.''.

SEC. 3. DEFINITIONS.

    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, as of the date this title was 
originally enacted, the Sacramento and San Joaquin rivers and their 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.''.

SEC. 4. LIMITATION ON CONTRACTING AND CONTRACT REFORM.

    The Central Valley Project Improvement Act (106 Stat. 4710) is 
amended as follows:
            (1) The matter preceding paragraph (1) in section 3404(c) 
        is amended 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.''.
            (2) Section 3404(c)(1) is amended to read as follows:
            ``(1) No such renewals shall be authorized until 
        environmental review as required by law has been completed, and 
        until 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 such 
        environmental review 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 review, 
        whichever is earlier. An interim contract shall automatically 
        be extended beyond that three-year date for successive periods 
        of two years each until the long-term renewal contract for that 
        contractor has been executed by the Secretary.''.
            (3) Section 3404 is amended by adding at the end the 
        following new subsection:
    ``(d) Contracts entered into or renewed pursuant to this section 
shall include a provision which requires the Secretary to charge such 
party only for water actually delivered by the Secretary.''.

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

    (a) Facilitation of Transfers.--Congress reconfirms that the 
original intent of the Central Valley Project Improvement Act (106 
Stat. 4712) was to facilitate and expedite water transfers. 
Accordingly, Congress hereby directs the Secretary to take all 
necessary actions to facilitate and expedite transfers of Central 
Valley Project water in accordance with the Central Valley Project 
Improvement Act (106 Stat. 4712) or any other provision of law.
    (b) Amendments.--The Central Valley Project Improvement Act (106 
Stat. 4710) is amended as follows:
            (1) In section 3405(a)(1)(A), by striking ``to 
        combination'' and inserting ``or combination''.
            (2) In section 3405(a)(2)(D), by adding the following at 
        the end the following: ``The contractor or the Secretary shall 
        determine if a written proposal is complete within 45 days of 
        its submission and, if it determines an application is 
        incomplete, shall immediately state with specificity what must 
        be added to or revised in the application in order for it to be 
        complete. Except as provided in this section, the Secretary 
        shall not impose mitigation or other requirements on a proposed 
        transfer, but the contractor shall retain all authority under 
        state law to approve or condition a proposed transfer.''
            (3) In section 3405(a), by adding the following new 
        paragraph:
            ``(4) 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. This title shall not supersede or revoke any 
        authority to transfer, exchange, or bank Central Valley Project 
        water that existed prior to the date of the enactment of this 
        paragraph.''.
            (4) In section 3405(b)--
                    (A) in the heading, by striking ``Metering'' and 
                inserting ``Measurement''; and
                    (B) 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.''.
            (5) In section 3405--
                    (A) by striking subsection (d);
                    (B) by redesignating subsections (e) and (f) as 
                subsections (d) and (e); and
                    (C) by amending subsection (e) (as redesignated by 
                subparagraph (B)) to read as follows:
    ``(e) All increased revenues received by the Secretary that exceed 
the cost of service rate applicable to the delivery of water 
transferred from irrigation use to municipal and industrial use under 
subsection (a) shall be covered to the Restoration Fund.''.

SEC. 6. FISH, WILDLIFE AND HABITAT RESTORATION.

    The Central Valley Project Improvement Act (106 Stat. 4714) is 
amended as follows:
            (1) In section 3406, 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.''.
            (2) Subparagraph (B) of section 3406(b)(1) is 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 dedicated 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, except the San Joaquin River which is governed 
                by section 3406(c)(1) of this title, 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.''.
            (3) The matter preceding paragraph (A) in section 
        3406(b)(2) is amended to read as follows:
            ``(2) Upon enactment of this title, dedicate and manage 
        annually 800,000 acre-feet of Central Valley Project water 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. All Central Valley 
        Project water used for the purposes specified in this paragraph 
        shall be credited to the amount of Central Valley Project water 
        so dedicated under this paragraph. Any Central Valley Project 
        water required to fulfill the purposes specified in this 
        paragraph shall be provided pursuant to subsections (b)(1) and 
        (b)(3). 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.''.
            (4) Section 3406(c)(1) is amended to read as follows:
            ``(1)(A) 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 
                and Kings River Canal and Irrigation Company, 
                Incorporated, et al., 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.
            ``(B) 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 subparagraph (A). In lieu of releasing 
        water directly from Friant Dam into the San Joaquin River for 
        any purposes other than those enumerated in this paragraph, 
        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 the amount of $7 per 
        acre-foot. Such surcharge 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 or 
        to any water delivered pursuant to section 215 of the 
        Reclamation Reform Act of 1982 (96 Stat. 1270).''.

SEC. 7. RESTORATION FUND.

    The Central Valley Project Improvement Act (106 Stat. 4714) is 
amended as follows:
            (1) Section 3407(a) 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 3404(c), 3405(e), 3406(c)(1), 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 shall utilize amounts collected 
        pursuant to section 3406(c)(1) to assist in improving water 
        quality and riparian values in the San Joaquin River, or to 
        support other projects benefiting land within the Friant 
        Division.
            ``(3) Notwithstanding any other provision of this title, 
        funds deposited in the Restoration Fund may be appropriated for 
        the acquisition of water supplies and the construction of 
        facilities used to implement projects or programs undertaken 
        pursuant to section 3408(j) of this title.
            ``(4) Any amounts paid by a repayment or water service 
        contractor under sections 3404(c), 3405(e), 3406(c)(1), and 
        3407(d) after the date of enactment of Public Law 102-575 shall 
        be a credit to the obligations of that contractor to repay the 
        construction costs of the Central Valley Project.''.
            (2) Section 3407(c)(1) is amended to read as follows:
            ``(1) Payments by water and power beneficiaries.--To the 
        extent required in appropriation Acts, the Secretary shall 
        assess and collect additional annual payments, in addition to 
        the charges provided for or collected under sections 
        3404(c)(3), 3405(a)(1)(C), 3405(f), and 3406(c)(1) 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 carrying out 
        programs, projects, plans, and habitat restoration, 
        improvement, and acquisition provisions of this title.''.
            (3) Section 3407 is amended by adding at the end the 
        following new subsection (g):
    ``(g) Each year the Secretary shall submit to Congress a proposed 
plan to expend all of the funds deposited in the Restoration Fund 
during the preceding year that describes why the expenditure of those 
funds produces the optimum benefit from those expenditures.''.

SEC. 8. ADDITIONAL AUTHORITIES.

    (a) Exclusion of Nonprofit.--Section 3408(c) of the Central Valley 
Project Improvement Act (106 Stat. 4728.) is amended by striking 
``nonprofit''.
    (b) Authority for Certain Activities; Rates.--The Secretary shall 
use the authority granted by section 3408(c) of the Central Valley 
Project Improvement Act (106 Stat. 4728.) rather than other authorities 
whenever possible in connection with requests to exchange, impound, 
store, carry or deliver non-project water using Central Valley Project 
facilities for any beneficial purpose. The Secretary shall develop 
rates to be charged to parties using Central Valley Project facilities 
for any of such purposes that recover the reasonable costs incurred by 
the Secretary in connection therewith, which costs shall not include 
any donation or other payment to the Restoration Fund. Payments 
received in connection with the use of Central Valley Project 
facilities shall be applied to reduce the current year operations and 
maintenance expenses otherwise payable by Project contractors for the 
Central Valley Project facilities used.
    (c) Reporting Requirements.--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'';
            (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)''; and
            (3) by adding the following sentence at the end: ``The 
        filing and adequacy of such report shall be personally 
        certified to the Committees referenced above by the Regional 
        Director of the Mid-Pacific Region of the Bureau of 
        Reclamation.''.
    (d) Project Yield Increase.--Section 3408(j) of the Central Valley 
Project Improvement Act (106 Stat. 4730) is amended to read as follows:
    ``(j) Project Yield Increase.--
            ``(1) Plan required.--In order to minimize adverse effects 
        upon existing Central Valley Project water contractors 
        resulting from the water dedicated 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 September 30, 2007, submit to Congress a 
        least-cost plan to increase, as soon as possible but not later 
        than September 30, 2012 (except for the construction of new 
        facilities which shall not be limited by that deadline), the 
        yield of the Central Valley Project by the amount dedicated 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. The plan shall be developed in a manner consistent 
        with all applicable State and Federal laws.
            ``(2) Contents of plan.--The plan authorized by this 
        subsection shall include, at a minimum, recommendations on 
        appropriate cost-sharing arrangements and for authorizing 
        legislation or other measures, if any, needed to implement the 
        intent, purposes, and provisions of this subsection, and a 
        description of how the Secretary intends to use the following 
        options:
                    ``(A) Improvements in, modification of, or 
                additions to the facilities and operations of the 
                project and construction of new water storage 
                facilities.
                    ``(B) Conservation.
                    ``(C) Transfers.
                    ``(D) Conjunctive use.
                    ``(E) Purchase of water.
                    ``(F) Purchase and idling of agricultural land.
                    ``(G) Direct purchase of water rights.
            ``(3) Implementation of plan.--Subject to appropriation of 
        required funds, such plan shall be implemented by the Secretary 
        commencing on October 1, 2007. 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.''.
    (e) Section 3408(h)(2) of the Central Valley Project Improvement 
Act (106 Stat. 4729) is amended by striking ``(h)(i)'' and inserting 
``(h)(1)''.

SEC. 9. REPORTING BY SECRETARY OF THE TREASURY REGARDING ILLEGAL 
              FEDERAL IRRIGATION SUBSIDIES.

    Section 90 of the Internal Revenue Code of 1986 (relating to 
illegal Federal irrigation subsidies) is amended by adding at the end 
the following new subsection:
    ``(d) Reporting to Bureau of Reclamation.--Not later than September 
30 of each year, the Secretary shall submit a written report to the 
Commissioner of the Bureau of Reclamation which states the number of 
taxpayers who included an amount in gross income under this section by 
reason of receiving an illegal Federal irrigation subsidy during the 
preceding calendar year.''.

SEC. 10. ALL-AMERICAN CANAL, CALIFORNIA; LAGUNA DAM, ARIZONA.

    (a) Project Authorization.--The Secretary of the Interior, acting 
through the Commissioner of the Bureau of Reclamation, is authorized to 
construct new off-stream regulatory storage near the All-American Canal 
in California and to remove sediment behind Laguna Dam, Arizona.
    (b) Cost Sharing.--The Federal share of the cost of activities 
authorized under this section shall be 100 percent.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out this section.
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