[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1837 Reported in House (RH)]

                                                 Union Calendar No. 280
112th CONGRESS
  2d Session
                                H. R. 1837

                          [Report No. 112-403]

To address certain water-related concerns on the San Joaquin River, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2011

  Mr. Nunes (for himself, Mr. McCarthy of California, and Mr. Denham) 
 introduced the following bill; which was referred to the Committee on 
                           Natural Resources

                           February 27, 2012

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 11, 
                                 2011]


_______________________________________________________________________

                                 A BILL


 
To address certain water-related concerns on the San Joaquin River, and 
                          for other purposes.


 


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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sacramento-San Joaquin Valley Water 
Reliability Act''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.

           TITLE I--CENTRAL VALLEY PROJECT WATER RELIABILITY

Sec. 101. Amendment to purposes.
Sec. 102. Amendment to definition.
Sec. 103. Contracts.
Sec. 104. Water transfers, improved water management, and conservation.
Sec. 105. Fish, wildlife, and habitat restoration.
Sec. 106. Restoration fund.
Sec. 107. Additional authorities.
Sec. 108. Bay-Delta Accord.
Sec. 109. Natural and artificially spawned species.
Sec. 110. Authorized service area.
Sec. 111. Regulatory streamlining.

                TITLE II--SAN JOAQUIN RIVER RESTORATION

Sec. 201. Repeal of the San Joaquin River settlement.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Implementation of restoration.
Sec. 205. Disposal of property; title to facilities.
Sec. 206. Compliance with applicable law.
Sec. 207. Compliance with Central Valley Project Improvement Act.
Sec. 208. No private right of action.
Sec. 209. Implementation.
Sec. 210. Repayment contracts and acceleration of repayment of 
                            construction costs.
Sec. 211. Repeal.
Sec. 212. Water supply mitigation.
Sec. 213. Additional Authorities.

    TITLE III--REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
                           CONSTRUCTION COSTS

Sec. 301. Repayment contracts and acceleration of repayment of 
                            construction costs.

 TITLE IV--BAY-DELTA WATERSHED WATER RIGHTS PRESERVATION AND PROTECTION

Sec. 401. Water rights and area-of-origin protections.
Sec. 402. Sacramento River settlement contracts.
Sec. 403. Sacramento River Watershed Water Service Contractors.
Sec. 404. No redirected adverse impacts.

                         TITLE V--MISCELLANOUS

Sec. 501. Precedent.

           TITLE I--CENTRAL VALLEY PROJECT WATER RELIABILITY

SEC. 101. AMENDMENT TO PURPOSES.

    Section 3402 of the Central Valley Project Improvement Act (106 
Stat. 4706) is amended--
            (1) in subsection (f), by striking the period at the end; 
        and
            (2) by adding at the end the following:
    ``(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 December 31, 2016, at the lowest cost reasonably 
achievable; and
    ``(h) to facilitate and expedite water transfers in accordance with 
this Act.''.

SEC. 102. AMENDMENT TO DEFINITION.

    Section 3403 of the Central Valley Project Improvement Act (106 
Stat. 4707) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) the term `anadromous fish' means those native stocks of 
salmon (including steelhead) and sturgeon that, as of October 30, 1992, 
were present in the Sacramento and San Joaquin Rivers and their 
tributaries and ascend those rivers and their tributaries to reproduce 
after maturing in San Francisco Bay or the Pacific Ocean;'';
            (2) in subsection (l), by striking ``and,''
            (3) in subsection (m), by striking the period and inserting 
        ``; and'', and
            (4) by adding at the end the following:
    ``(n) the term `reasonable flows' means water flows capable of 
being maintained taking into account competing consumptive uses of 
water and economic, environmental, and social factors.''.

SEC. 103. CONTRACTS.

    Section 3404 of the Central Valley Project Improvement Act (106 
Stat. 4708) is amended--
            (1) in the heading, by striking ``limitation on contracting 
        and contracts reform'' and inserting ``contracts''; and
            (2) by striking the language of the section and by adding:
    ``(a) Renewal of Existing Long-Term Contracts.--Upon request of the 
contractor, the Secretary shall renew any existing long-term repayment 
or water service contract that provides for the delivery of water from 
the Central Valley Project for a period of 40 years, and renew such 
contracts for successive periods of 40 years each.
    ``(b) Delivery Charge.--Beginning on the date of the enactment of 
this Act, a contract entered into or renewed pursuant to this section 
shall include a provision that requires the Secretary to charge the 
other party to such contract only for water actually delivered by the 
Secretary.''.

SEC. 104. WATER TRANSFERS, IMPROVED WATER MANAGEMENT, AND CONSERVATION.

    Section 3405 of the Central Valley Project Improvement Act (106 
Stat. 4709) is amended as follows:
            (1) In subsection (a)--
                    (A) by inserting before ``Except as provided 
                herein'' the following: ``The Secretary shall take all 
                necessary actions to facilitate and expedite transfers 
                of Central Valley Project water in accordance with this 
                Act or any other provision of Federal reclamation law 
                and the National Environmental Policy Act of 1969.'';
                    (B) in paragraph (1)(A), by striking ``to 
                combination'' and inserting ``or combination'';
                    (C) in paragraph (2), by adding at the end the 
                following:
                    ``(E) The contracting district from which the water 
                is coming, the agency, or the Secretary shall determine 
                if a written transfer proposal is complete within 45 
                days after the date of submission of such proposal. If 
                such district or agency or the Secretary determines 
                that such proposal is incomplete, such district or 
                agency or the Secretary shall state with specificity 
                what must be added to or revised in order for such 
                proposal to be complete.
                    ``(F) Except as provided in this section, the 
                Secretary shall not impose mitigation or other 
                requirements on a proposed transfer, but the 
                contracting district from which the water is coming or 
                the agency shall retain all authority under State law 
                to approve or condition a proposed transfer.''; and
                    (D) by adding at the end the following:
            ``(4) Notwithstanding any other provision of Federal 
        reclamation law--
                    ``(A) the authority to make transfers or exchanges 
                of, or banking or recharge arrangements using, Central 
                Valley Project water that could have been conducted 
                before October 30, 1992, is valid, and such transfers, 
                exchanges, or arrangements shall not be subject to, 
                limited, or conditioned by this title; and
                    ``(B) this title shall not supersede or revoke the 
                authority to transfer, exchange, bank, or recharge 
                Central Valley Project water that existed prior to 
                October 30, 1992.''.
            (2) In subsection (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 contractor-owned water delivery systems within 
                its boundaries measure surface water at the district or 
                agency's facilities up to the point the surface water 
                is commingled with other water supplies.''.
            (3) By striking subsection (d).
            (4) By redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
            (5) By amending subsection (e)(as redesignated by paragraph 
        (4))--
                    (A) by striking ``as a result of the increased 
                repayment'' and inserting ``that exceed the cost-of-
                service'';
                    (B) by inserting ``the delivery of'' after ``rates 
                applicable to''; and
                    (C) by striking ``, and all increased revenues 
                received by the Secretary as a result of the increased 
                water prices established under subsection 3405(d) of 
                this section,''.

SEC. 105. FISH, WILDLIFE, AND HABITAT RESTORATION.

    Section 3406 of the Central Valley Project Improvement Act (106 
Stat. 4714) is amended as follows:
            (1) In subsection (b)--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``is authorized and 
                        directed to'' and inserting ``may'';
                            (ii) by inserting ``reasonable water'' 
                        after ``to provide'';
                            (iii) by striking ``anadromous fish, except 
                        that such'' and inserting ``anadromous fish. 
                        Such'';
                            (iv) by striking ``Instream flow'' and 
                        inserting ``Reasonable instream flow'';
                            (v) by inserting ``and the National Marine 
                        Fisheries Service'' after ``United States Fish 
                        and Wildlife Service''; and
                            (vi) by striking ``California Department of 
                        Fish and Game'' and inserting ``United States 
                        Geological Survey'';
                    (B) in paragraph (2)--
                            (i) by striking ``primary purpose'' and 
                        inserting ``purposes'';
                            (ii) by striking ``but not limited to'' 
                        before ``additional obligations''; and
                            (iii) by adding after the period the 
                        following: ``All Central Valley Project water 
                        used for the purposes specified in this 
                        paragraph shall be credited to the quantity of 
                        Central Valley Project yield dedicated and 
                        managed under this paragraph by determining how 
                        the dedication and management of such water 
                        would affect the delivery capability of the 
                        Central Valley Project during the 1928 to 1934 
                        drought period after fishery, water quality, 
                        and other flow and operational requirements 
                        imposed by terms and conditions existing in 
                        licenses, permits, and other agreements 
                        pertaining to the Central Valley Project under 
                        applicable State or Federal law existing on 
                        October 30, 1992, have been met. To the fullest 
                        extent possible and in accordance with section 
                        3411, Central Valley Project water dedicated 
                        and managed pursuant to this paragraph shall be 
                        reused to fulfill the Secretary's remaining 
                        contractual obligations to provide Central 
                        Valley Project water for agricultural or 
                        municipal and industrial purposes.'';
                    (C) by amending paragraph (2)(C) to read:
                    ``(C) If by March 15th of any year the quantity of 
                Central Valley Project water forecasted to be made 
                available to water service or repayment contractors in 
                the Delta Division of the Central Valley Project is 
                below 75 percent of the total quantity of water to be 
                made available under said contracts, the quantity of 
                Central Valley Project yield dedicated and managed for 
                that year under this paragraph shall be reduced by 25 
                percent.''.
            (2) By adding at the end the following:
                            ``(i) Satisfaction of purposes.--By 
                        pursuing the activities described in this 
                        section, the Secretary shall be deemed to have 
                        met the mitigation, protection, restoration, 
                        and enhancement purposes of this title.''.

SEC. 106. RESTORATION FUND.

    (a) In General.--Section 3407(a) of the Central Valley Project 
Improvement Act (106 Stat. 4726) is amended as follows:
            (1) By inserting ``(1) In general.--'' before ``There is 
        hereby''.
            (2) By striking ``Not less than 67 percent'' and all that 
        follows through ``Monies'' and inserting ``Monies''.
            (3) By adding at the end the following:
    ``(2) Prohibitions.--The Secretary may not directly or indirectly 
require a donation or other payment to the Restoration Fund--
            ``(A) or environmental restoration or mitigation fees not 
        otherwise provided by law, as a condition to--
                    ``(i) providing for the storage or conveyance of 
                non-Central Valley Project water pursuant to Federal 
                reclamation laws; or
                    ``(ii) the delivery of water pursuant to section 
                215 of the Reclamation Reform Act of 1982 (Public Law 
                97-293; 96 Stat. 1270); or
            ``(B) for any water that is delivered with the sole intent 
        of groundwater recharge.''.
    (b) Certain Payments.--Section 3407(c)(1) of the Central Valley 
Project Improvement Act is amended--
            (1) by striking ``mitigation and restoration'';
            (2) by striking ``provided for or''; and
            (3) by striking ``of fish, wildlife'' and all that follows 
        through the period and inserting ``of carrying out all 
        activities described in this title.''.
    (c) Adjustment and Assessment of Mitigation and Restoration 
Payments.--Section 3407(d)(2) of the Central Valley Project Improvement 
Act is amended by inserting ``, or after October 1, 2013, $4 per 
megawatt-hour for Central Valley Project power sold to power 
contractors (October 2013 price levels)'' after ``$12.00 per acre-foot 
(October 1992 price levels) for municipal and industrial water sold and 
delivered by the Central Valley Project''.
    (d) Completion of Actions.--Section 3407(d)(2)(A) of the Central 
Valley Project Improvement Act is amended by inserting ``, no later 
than December 31, 2020,'' after ``That upon the completion of the fish, 
wildlife, and habitat mitigation and restoration actions mandated under 
section 3406 of this title,''.
    (e) Report; Advisory Board.--Section 3407 of the Central Valley 
Project Improvement Act (106 Stat. 4714) is amended by adding at the 
end the following:
    ``(g) Report on Expenditure of Funds.--At the end of each fiscal 
year, the Secretary, in consultation with the Restoration Fund Advisory 
Board, shall submit to Congress a plan for the expenditure of all of 
the funds deposited into the Restoration Fund during the preceding 
fiscal year. Such plan shall contain a cost-effectiveness analysis of 
each expenditure.
    ``(h) Advisory Board.--
            ``(1) Establishment.--There is hereby established the 
        Restoration Fund Advisory Board (hereinafter in this section 
        referred to as the `Advisory Board') composed of 12 members 
        selected by the Secretary, each for four-year terms, one of 
        whom shall be designated by the Secretary as Chairman. The 
        members shall be selected so as to represent the various 
        Central Valley Project stakeholders, four of whom shall be from 
        CVP agricultural users, three from CVP municipal and industrial 
        users, three from CVP power contractors, and two at the 
        discretion of the Secretary. The Secretary and the Secretary of 
        Commerce may each designate a representative to act as an 
        observer of the Advisory Board.
            ``(2) Duties.--The duties of the Advisory Board are as 
        follows:
                    ``(A) To meet at least semiannually to develop and 
                make recommendations to the Secretary regarding 
                priorities and spending levels on projects and programs 
                carried out pursuant to the Central Valley Project 
                Improvement Act.
                    ``(B) To ensure that any advice or recommendation 
                made by the Advisory Board to the Secretary reflect the 
                independent judgment of the Advisory Board.
                    ``(C) Not later than December 31, 2013, and 
                annually thereafter, to transmit to the Secretary and 
                Congress recommendations required under subparagraph 
                (A).
                    ``(D) Not later than December 31, 2013, and 
                biennially thereafter, to transmit to Congress a report 
                that details the progress made in achieving the actions 
                mandated under section 3406 of this title.
            ``(3) Administration.--With the consent of the appropriate 
        agency head, the Advisory Board may use the facilities and 
        services of any Federal agency.''.

SEC. 107. ADDITIONAL AUTHORITIES.

    (a) Authority for Certain Activities.--Section 3408(c) of the 
Central Valley Project Improvement Act (106 Stat. 4728) is amended to 
read as follows:
    ``(c) Contracts for Additional Storage and Delivery of Water.--
            ``(1) In general.--The Secretary is authorized to enter 
        into contracts pursuant to Federal reclamation law and this 
        title with any Federal agency, California water user or water 
        agency, State agency, or private organization for the exchange, 
        impoundment, storage, carriage, and delivery of nonproject 
        water for domestic, municipal, industrial, fish and wildlife, 
        and any other beneficial purpose.
            ``(2) Limitation.--Nothing in this subsection shall be 
        deemed to supersede the provisions of section 103 of Public Law 
        99-546 (100 Stat. 3051).
            ``(3) Authority for certain activities.--The Secretary 
        shall use the authority granted by this subsection in 
        connection with requests to exchange, impound, store, carry, or 
        deliver nonproject water using Central Valley Project 
        facilities for any beneficial purpose.
            ``(4) Rates.--The Secretary shall develop rates not to 
        exceed the amount required to recover the reasonable costs 
        incurred by the Secretary in connection with a beneficial 
        purpose under this subsection. Such rates shall be charged to a 
        party using Central Valley Project facilities for such purpose. 
        Such costs shall not include any donation or other payment to 
        the Restoration Fund.
            ``(5) Construction.--This subsection shall be construed and 
        implemented to facilitate and encourage the use of Central 
        Valley Project facilities to exchange, impound, store, carry, 
        or deliver nonproject water for any beneficial purpose.''.
    (b) Reporting Requirements.--Section 3408(f) of the Central Valley 
Project Improvement Act (106 Stat. 4729) is amended--
            (1) by striking ``Interior and Insular Affairs and the 
        Committee on Merchant Marine and Fisheries'' and inserting 
        ``Natural Resources'';
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, including progress on the plan 
        required by subsection (j)''; and
            (3) by adding at the end the following: ``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.''.
    (c) Project Yield Increase.--Section 3408(j) of the Central Valley 
Project Improvement Act (106 Stat. 4730) is amended as follows:
            (1) By redesignating paragraphs (1) through (7) as 
        subparagraphs (A) through (G), respectively.
            (2) By striking ``In order to minimize adverse effects, if 
        any, upon'' and inserting ``(1) In general.--In order to 
        minimize adverse effects upon''.
            (3) By striking ``needs, the Secretary,'' and all that 
        follows through ``submit to Congress, a'' and inserting 
        ``needs, the Secretary, on a priority basis and not later than 
        September 30, 2013, shall submit to Congress a''.
            (4) By striking ``increase,'' and all that follows through 
        ``options--'' and inserting ``increase, as soon as possible but 
        not later than September 30, 2016 (except for the construction 
        of new facilities which shall not be limited by that deadline), 
        the water 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 satisfying contractual obligations. The plan 
        required by this subsection shall include recommendations on 
        appropriate cost-sharing arrangements and authorizing 
        legislation or other measures needed to implement the intent, 
        purposes, and provisions of this subsection and a description 
        of how the Secretary intends to use the following options--''.
            (5) In subparagraph (A), by inserting ``and construction of 
        new water storage facilities'' before the semicolon.
            (6) In subparagraph (F), by striking ``and'' at the end.
            (7) In subparagraph (G), by striking the period and all 
        that follows through the end of the subsection and inserting 
        ``; and''.
            (8) By inserting after subparagraph (G) the following:
            ``(H) Water banking and recharge.''.
            (9) By adding at the end the following:
            ``(2) Implementation of plan.--The Secretary shall 
        implement the plan required by paragraph (1) commencing on 
        October 1, 2013. In order to carry out this subsection, the 
        Secretary shall 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.
            ``(3) Failure of the plan.--Notwithstanding any other 
        provision of Federal reclamation law, if by September 30, 2016, 
        the plan required by paragraph (1) fails to increase the annual 
        delivery capability of the Central Valley Project by 800,000 
        acre-feet, implementation of any non-mandatory action under 
        section 3406(b)(2) shall be suspended until the plan achieves 
        an increase in the annual delivery capability of the Central 
        Valley Project by 800,000 acre-feet.''.
    (d) Technical Correction.--Section 3408(h) of the Central Valley 
Project Improvement Act (106 Stat. 4729) is amended--
            (1) in paragraph (1), by striking ``paragraph (h)(2)'' and 
        inserting ``paragraph (2)''; and
            (2) in paragraph (2), by striking ``paragraph (h)(i)'' and 
        inserting ``paragraph (1)''.
    (e) Water Storage Project Construction.--The Secretary, acting 
through the Commissioner of the Bureau of Reclamation, may partner on 
the water storage projects identified in section 103(d)(1) of the Water 
Supply Reliability, and Environmental Improvement Act (Public Law 108-
361)(and Acts supplemental and amendatory to the Act) with local joint 
powers authorities formed pursuant to State law by irrigation districts 
and other local water districts and local governments within the 
applicable hydrologic region, to advance these projects. No Federal 
funds are authorized for this purpose and each water storage project is 
authorized for construction if non-Federal funds are used for financing 
and constructing the project.

SEC. 108. BAY-DELTA ACCORD.

    (a) Congressional Direction Regarding Central Valley Project and 
California State Water Project Operations.--The Central Valley Project 
and the State Water Project shall be operated pursuant to the water 
quality standards and operational constraints described in the 
``Principles for Agreement on the Bay-Delta Standards Between the State 
of California and the Federal Government'' dated December 15, 1994, and 
such operations shall proceed without regard to the Endangered Species 
Act of 1973 (16 U.S.C. 1531 et seq.) or any other law pertaining to the 
operation of the Central Valley Project and the California State Water 
Project. Implementation of this section shall be in strict conformance 
with the ``Principles for Agreement on the Bay-Delta Standards Between 
the State of California and the Federal Government'' dated December 15, 
1994.
    (b) Application of Laws to Others.--Neither a Federal department 
nor the State of California, including any agency or board of the State 
of California, shall impose on any valid water right obtained pursuant 
to State law, including a pre-1914 appropriative right, any condition 
that restricts the exercise of that water right in order to conserve, 
enhance, recover or otherwise protect any species that is affected by 
operations of the Central Valley Project or California State Water 
Project. Nor shall the State of California, including any agency or 
board of the State of California, restrict the exercise of any valid 
water right obtained pursuant to State law, including a pre-1914 
appropriative right, in order to protect, enhance, or restore under the 
Public Trust Doctrine any public trust value. Implementation of the 
``Principles for Agreement on the Bay-Delta Standards Between the State 
of California and the Federal Government'' dated December 15, 1994, 
shall be in strict compliance with the water rights priority system and 
statutory protections for areas of origin.
    (c) Costs.--No cost associated with the implementation of this 
section shall be imposed directly or indirectly on any Central Valley 
Project contractor, or any other person or entity, unless such costs 
are incurred on a voluntary basis.
    (d) Native Species Protection.--California law is preempted with 
respect to any restriction on the quantity or size of nonnative fish 
taken or harvested that preys upon one or more native fish species that 
occupy the Sacramento and San Joaquin Rivers and their tributaries or 
the Sacramento-San Joaquin Rivers Delta.

SEC. 109. NATURAL AND ARTIFICIALLY SPAWNED SPECIES.

    After the date of the enactment of this title, and regardless of 
the date of listing, the Secretaries of the Interior and Commerce shall 
not distinguish between natural-spawned and hatchery-spawned or 
otherwise artificially propagated strains of a species in making any 
determination under the Endangered Species Act of 1973 (16 U.S.C. 1531 
et seq.) that relates to any anadromous fish species present in the 
Sacramento and San Joaquin Rivers or their tributaries and ascend those 
rivers and their tributaries to reproduce after maturing in San 
Francisco Bay or the Pacific Ocean.

SEC. 110. AUTHORIZED SERVICE AREA.

    The authorized service area of the Central Valley Project shall 
include the area within the boundaries of the Kettleman City Community 
Services District, California, as those boundaries exist on the date of 
the enactment of this title. Notwithstanding the provisions of the Act 
of October 30, 1992 (Public Law 102-575, 106 Stat. 4600 et seq.), upon 
enactment of this title, the Secretary is authorized and directed to 
enter into a long-term contract in accordance with the reclamation laws 
with the Kettleman City Community Services District, California, for 
the delivery of up to 900 acre-feet of Central Valley Project water for 
municipal and industrial use. The Secretary may temporarily reduce 
deliveries of the quantity of water made available pursuant to up to 25 
percent of such total whenever reductions due to hydrologic 
circumstances are imposed upon agricultural deliveries of Central 
Valley Project water. If any additional infrastructure or related-costs 
are needed to implement this section, such costs shall be the 
responsibility of the non-Federal entity.

SEC. 111. REGULATORY STREAMLINING.

    (a) Applicability of Certain Laws.--Filing of a Notice of 
Determination or a Notice of Exemption for any project, including the 
issuance of a permit under State law, related to any project of the CVP 
or the delivery of water therefrom in accordance with the California 
Environmental Quality Act shall be deemed to meet the requirements of 
section 102(2)(C) of the National Environmental Protection Act of 1969 
(42 U.S.C. 4332(2)(C)) for that project or permit.
    (b) Continuation of Project.--The Bureau of Reclamation shall not 
be required to cease or modify any major Federal action or other 
activity related to any project of the CVP or the delivery of water 
there from pending completion of judicial review of any determination 
made under the National Environmental Protection Act of 1969 (42 U.S.C. 
4332(2)(C)).
    (c) Project Defined.--For the purposes of this section:
            (1) Cvp.--The term ``CVP'' means the Central Valley 
        Project.
            (2) Project.--The term ``project''--
                    (A) means an activity that--
                            (i) is undertaken by a public agency, 
                        funded by a public agency, or that requires an 
                        issuance of a permit by a public agency;
                            (ii) has a potential to result in physical 
                        change to the environment; and
                            (iii) may be subject to several 
                        discretionary approvals by governmental 
                        agencies;
                    (B) may include construction activities, clearing 
                or grading of land, improvements to existing 
                structures, and activities or equipment involving the 
                issuance of a permit; or
                    (C) as defined under the California Environmental 
                Quality Act in section 21065 of the California Public 
                Resource Code.

                TITLE II--SAN JOAQUIN RIVER RESTORATION

SEC. 201. REPEAL OF THE SAN JOAQUIN RIVER SETTLEMENT.

    As of the date of enactment of this title, the Secretary shall 
cease any action to implement the Stipulation of Settlement (Natural 
Resources Defense Council, et al. v. Kirk Rodgers, et al., Eastern 
District of California, No. Civ. S-88-1658 LKK/GGH).

SEC. 202. PURPOSE.

    Section 10002 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended by striking ``implementation of the 
Settlement'' and inserting ``restoration of the San Joaquin River''.

SEC. 203. DEFINITIONS.

    Section 10003 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) The term `Restoration Flows' means the additional 
        water released or bypassed from Friant Dam to insure that the 
        target flow entering Mendota Pool, located approximately 62 
        river miles downstream from Friant Dam, does not fall below 50 
        cubic feet per second.'';
            (2) by striking paragraph (3) and inserting the following:
            ``(3) The term `Water Year' means March 1 through the last 
        day of February of the following Calendar Year, both dates 
        inclusive''; and
            (3) by adding at the end the following new paragraph:
            ``(4) The term `Critical Water Year' means when the total 
        unimpaired runoff at Friant Dam is less than 400,000 acre-feet, 
        as forecasted as of March 1 of that water year by the 
        California Department of Water Resources.''.

SEC. 204. IMPLEMENTATION OF RESTORATION.

    Section 10004 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``authorized and directed'' and all that 
                follows through ``in the Settlement'' and inserting 
                ``authorized to carry out the following:'';
                    (B) by striking paragraphs (1), (2), (4), and (5);
                    (C) in paragraph (3)--
                            (i) by striking ``(3)'' and inserting 
                        ``(1)''; and
                            (ii) by striking ``paragraph 13 of the 
                        Settlement'' and inserting ``this part''
                    (D) by adding at the end the following new 
                paragraphs:
            ``(2) In each Water Year, commencing in the Water Year 
        starting on March 1, 2013--
                    ``(A) shall modify Friant Dam operations so as to 
                release the Restoration Flows for that Water Year, 
                except in any Critical Water Year;
                    ``(B) shall ensure that the release of Restoration 
                Flows are maintained at the level prescribed by this 
                part, but that Restoration Flows do not reach 
                downstream of Mendota Pool;
                    ``(C) shall release the Restoration Flows in a 
                manner that improves the fishery in the San Joaquin 
                River below Friant Dam, but upstream of Gravelly Ford 
                in existence as of the date of the enactment of this 
                part, and the associated riparian habitat; and
                    ``(D) may, without limiting the actions required 
                under paragraphs (A) and (C) and subject to subsections 
                10004(a)(3) and 10004(l), use the Restoration Flows to 
                enhance or restore a warm water fishery downstream of 
                Gravelly Ford to and including Mendota Pool, if the 
                Secretary determines that it is reasonable, prudent, 
                and feasible to do so; and
            ``(3) Not later than 1 year after the date of the enactment 
        of this section, the Secretary shall develop and implement, in 
        cooperation with the State of California, a reasonable plan, to 
        fully recirculate, recapture, reuse, exchange, or transfer all 
        Restoration Flows and provide such recirculated, recaptured, 
        reused, exchanged, or transferred flows to those contractors 
        within the Friant Division, Hidden Unit, and Buchanan Unit of 
        the Central Valley Project that relinquished the Restoration 
        Flows so recirculated, recaptured, reused, exchanged, or 
        transferred. Such a plan shall address any impact on ground 
        water resources within the service area of the Friant Division, 
        Hidden Unit, and Buchanan Unit of the Central Valley Project 
        and mitigation may include ground water banking and recharge 
        projects. Such a plan shall not impact the water supply or 
        water rights of any entity outside the Friant Division, Hidden 
        unit, and Buchanan Unit of the Central Valley Project. Such a 
        plan shall be subject to applicable provisions of California 
        water law and the Secretary's use of Central Valley Project 
        facilities to make Project water (other than water released 
        from Friant Dam pursuant to this part) and water acquired 
        through transfers available to existing south-of-Delta Central 
        Valley Project contractors.'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``the 
                Settlement'' and inserting ``this part'';
                    (B) in paragraph (2), by striking ``the 
                Settlement'' and inserting ``this part'';
            (3) in subsection (c), by striking ``the Settlement'' and 
        inserting ``this part'';
            (4) by striking subsection (d) and inserting the following:
    ``(d) Mitigation of Impacts.--Prior to October 1, 2013, the 
Secretary shall identify--
            ``(1) the impacts associated with the release of 
        Restoration Flows prescribed in this part;
            ``(2) the measures which shall be implemented to mitigate 
        impacts on adjacent and downstream water users, landowners and 
        agencies as a result of Restoration Flows prescribed in this 
        part; and
            ``(3) prior to the implementation of decisions or 
        agreements to construct, improve, operate, or maintain 
        facilities that the Secretary determines are needed to 
        implement this part, the Secretary shall implement all 
        mitigations measures identified in subsection (d)(2) before 
        Restoration Flows are commenced.'';
            (5) in subsection (e), by striking ``the Settlement'' and 
        inserting ``this part'';
            (6) in subsection (f), by striking ``the Settlement'' and 
        all that follows through ``section 10011'' and insert ``this 
        part'';
            (7) in subsection (g)--
                    (A) by striking ``the Settlement and'' before this 
                part; and
                    (B) by striking ``or exchange contract'' and 
                inserting ``exchange contract, or water rights 
                settlement or holding contracts'';
            (8) in subsection (h)--
                    (A) by striking ``Interim'' in the header;
                    (B) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``Interim Flows under the 
                        Settlement'' and inserting ``Restoration Flows 
                        under this part'';
                            (ii) in subparagraph (C)--
                                    (I) in clause (i), by striking 
                                ``Interim'' and inserting 
                                ``Restoration''; and
                                    (II) in clause (ii), by inserting 
                                ``and'' after the semicolon;
                            (iii) in subparagraph (D), by striking 
                        ``and'' at the end; and
                            (iv) by striking subparagraph (E);
                    (C) in paragraph (2)--
                            (i) by striking ``Interim'' and inserting 
                        ``Restoration'';
                            (ii) by striking subparagraph (A); and
                            (iii) by striking ``(B) exceed'' and 
                        inserting ``exceed'';
                    (D) in paragraph (3), by striking ``Interim'' and 
                inserting ``Restoration''; and
                    (E) by striking paragraph (4) and inserting the 
                following:
            ``(4) Claims.--Within 60 days of enactment of this Act the 
        Secretary shall promulgate a rule establishing a claims process 
        to address current and future claims including, but not limited 
        to, ground water seepage, flooding, or levee instability 
        damages caused as a result of, arising out of, or related to 
        implementation of subtitle A of title X of Public Law 111-
        11.'';
            (9) in subsection (i)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``the Settlement and parts I 
                        and III'' and inserting ``this part'';
                            (ii) in subparagraph (A), by inserting 
                        ``and'' after the semicolon;
                            (iii) in subparagraph (B)--
                                    (I) by striking ``additional 
                                amounts authorized to be appropriated, 
                                including the'';
                                    (II) by striking ``; and'' and 
                                inserting a period; and
                            (iv) by striking subparagraph (C); and
                    (B) by striking paragraph (3); and
            (10) by adding at the end the following new subsections:
    ``(k) No Impacts on Other Interests.--No Central Valley Project or 
other water other than San Joaquin River water impounded by or bypassed 
from Friant Dam shall be used to implement subsection (a)(2) unless 
such use is on a voluntary basis. No cost associated with the 
implementation of this section shall be imposed directly or indirectly 
on any Central Valley Project contractor, or any other person or 
entity, outside the Friant Division, the Hidden Unit, or the Buchanan 
Unit, unless such costs are incurred on a voluntary basis. The 
implementation of this part shall not result directly or indirectly in 
any reduction in water supplies or water reliability on any Central 
Valley Project contractor, any State Water Project contractor, or any 
other person or entity, outside the Friant Division, the Hidden Unit, 
or the Buchanan Unit, unless such reductions or costs are incurred on a 
voluntary basis.
    ``(l) Priority.--All actions taken under this part shall be 
subordinate to the Secretary's use of Central Valley Project facilities 
to make Project water available to Project contractors, other than 
water released from the Friant Dam pursuant to this part.
    ``(m) In General.--Notwithstanding section 8 of the Reclamation Act 
of 1902, except as provided in this part, including Title IV of the 
Sacramento and San Joaquin Valleys Water Reliability Act, this part 
preempts and supersedes any State law, regulation, or requirement that 
imposes more restrictive requirements or regulations on the activities 
authorized under this part. Nothing in this part shall alter or modify 
the obligations, if any, of the Friant Division, Hidden Unit, and 
Buchanan Unit of the Central Valley Project, or other water users on 
the San Joaquin River or its tributaries, under orders issued by the 
State Water Resources Control Board pursuant to the Porter-Cologne 
Water Quality Control Act (California Water Code sections 13000 et 
seq.). Any such order shall be consistent with the congressional 
authorization for any affected Federal facility as it pertains to the 
Central Valley Project.
    ``(n) Project Implementation.--Projects to implement this title 
shall be phased such that each project shall follow the sequencing 
identified below and include at least the--
            ``(1) project purpose and need;
            ``(2) identification of mitigation measures;
            ``(3) appropriate environmental review; and
            ``(4) prior to releasing Restoration Flows under this part, 
        the Secretary shall--
                    ``(A) complete the implementation of mitigation 
                measures required; and
                    ``(B) complete implementation of the project.''.

SEC. 205. DISPOSAL OF PROPERTY; TITLE TO FACILITIES.

    Section 10005 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) in subsection (a), by striking ``the Settlement 
        authorized by this part'' and inserting ``this part'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) In general.--The 
                        Secretary'' and inserting ``The Secretary''; 
                        and
                            (ii) by striking ``the Settlement 
                        authorized by this part'' and inserting ``this 
                        part''; and
                    (B) by striking paragraph (2); and
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``the 
                Settlement'' and inserting ``this part'';
                    (B) in paragraph (2)--
                            (i) by striking ``through the exercise of 
                        its eminent domain authority''; and
                            (ii) by striking ``the Settlement'' and 
                        inserting ``this part''; and
                    (C) in paragraph (3), by striking ``section 
                10009(c)'' and inserting ``section 10009''.

SEC. 206. COMPLIANCE WITH APPLICABLE LAW.

    Section 10006 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``unless 
                otherwise provided by this part'' before the period at 
                the end; and
                    (B) in paragraph (2), by striking ``the 
                Settlement'' and inserting ``this part'';
            (2) in subsection (b), by inserting ``, unless otherwise 
        provided by this part'' before the period at the end;
            (3) in subsection (c)--
                    (A) in paragraph (2), by striking ``section 10004'' 
                and inserting ``this part''; and
                    (B) in paragraph (3), by striking ``the 
                Settlement'' and inserting ``this part''; and
            (4) in subsection (d)--
                    (A) by inserting ``, including without limitation 
                to sections 10004(d) and 10004(h)(4) of this part,'' 
                after ``implementing this part''; and
                    (B) by striking ``for implementation of the 
                Settlement''.

SEC. 207. COMPLIANCE WITH CENTRAL VALLEY PROJECT IMPROVEMENT ACT.

    Section 10007 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) in the matter preceding paragraph (1),
                    (A) by striking ``the Settlement'' and inserting 
                ``enactment of this part''; and
                    (B) by inserting: ``and the obligations of the 
                Secretary and all other parties to protect and keep in 
                good condition any fish that may be planted or exist 
                below Friant Dam including any obligations under 
                section 5937 of the California Fish and Game Code and 
                the public trust doctrine, and those of the Secretary 
                and all other parties under the Endangered Species Act 
                of 1973 (16 U.S.C. 1531 et seq.).'' before ``, 
                provided''; and
            (2) in paragraph (1), by striking ``, as provided in the 
        Settlement''.

SEC. 208. NO PRIVATE RIGHT OF ACTION.

    Section 10008(a) of the San Joaquin River Restoration Settlement 
Act (Public Law 111-11) is amended--
            (1) by striking ``not a party to the Settlement'' after 
        ``person or entity'' ; and
            (2) by striking ``or the Settlement'' before the period and 
        inserting ``unless otherwise provided by this part. Any Central 
        Valley Project long-term water service or repayment contractor 
        within the Friant Division, Hidden unit, or Buchanan Unit 
        adversely affected by the Secretary's failure to comply with 
        section 10004(a)(3) of this part may bring an action against 
        the Secretary for injunctive relief or damages, or both.''.

SEC. 209. IMPLEMENTATION.

    Section 10009 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) in the header by striking ``; settlement fund'';
            (2) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``the Settlement'' and 
                        inserting ``this part'';
                            (ii) by striking ``, estimated to total'' 
                        and all that follows through ``subsection 
                        (b)(1),''; and
                            (iii) by striking ``, provided; however,'' 
                        and all that follows through ``$110,000,000 of 
                        State funds'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``(A) 
                        In general.--The Secretary'' and inserting 
                        ``The Secretary'';
                            (ii) by striking subparagraph (B); and
                    (C) in paragraph (3)--
                            (i) by striking ``Except as provided in the 
                        Settlement, to'' and inserting ``To''; and
                            (ii) by striking ``this Settlement'' and 
                        inserting ``this part'';
            (3) in subsection (b)(1)--
                    (A) by striking ``In addition'' through ``however, 
                that the'' and inserting ``The'';
                    (B) by striking ``such additional appropriations 
                only in amounts equal to''; and
                    (C) by striking ``or the Settlement'' before the 
                period;
            (4) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``the Settlement'' and 
                        inserting ``this part'';
                            (ii) in subparagraph (C), by striking 
                        ``from the sale of water pursuant to the 
                        Settlement, or''; and
                            (iii) in subparagraph (D), by striking 
                        ``the Settlement'' and inserting ``this part'';
                    (B) in paragraph (2), by striking ``the Settlement 
                and'' before ``this part''; and
            (5) by striking subsections (d) through (f).

SEC. 210. REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
              CONSTRUCTION COSTS.

    Section 10010 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3)(D), by striking ``the 
                Settlement and'' after ``this part''; and
                    (B) in paragraph (4)(C), by striking ``the 
                Settlement and'' after ``this part'';
            (2) in subsection (c), by striking paragraph (3);
            (3) in subsection (d)(1), by striking ``the Settlement'' in 
        both places it appears and inserting ``this part'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by striking ``Interim Flows or 
                        Restoration Flows, pursuant to paragraphs 13 or 
                        15 of the Settlement'' and inserting 
                        ``Restoration Flows, pursuant to this part'';
                            (ii) by striking ``Interim Flows or'' 
                        before ``Restoration Flows''; and
                            (iii) by striking ``the Interim Flows or 
                        Restoration Flows or is intended to otherwise 
                        facilitate the Water Management Goal, as 
                        described in the Settlement'' and inserting 
                        ``Restoration Flows''; and
                    (B) in paragraph (2)--
                            (i) by striking ``except as provided in 
                        paragraph 16(b) of the Settlement'' after 
                        ``Friant Division long-term contractor''; and
                            (ii) by striking ``the Interim Flows or 
                        Restoration Flows or to facilitate the Water 
                        Management Goal'' and inserting ``Restoration 
                        Flows''.

SEC. 211. REPEAL.

    Section 10011 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is repealed.

SEC. 212. WATER SUPPLY MITIGATION.

    Section 10202(b) of the San Joaquin River Restoration Settlement 
Act (Public Law 111-11) is amended--
            (1) in paragraph (1), by striking ``the Interim or 
        Restoration Flows authorized in part I of this subtitle'' and 
        inserting ``Restoration Flows authorized in this part'';
            (2) in paragraph (2), by striking ``the Interim or 
        Restoration Flows authorized in part I of this subtitle'' and 
        inserting ``Restoration Flows authorized in this part''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``meet the 
                Restoration Goal as described in part I of this 
                subtitle'' and inserting ``recover Restoration Flows as 
                described in this part'';
                    (B) in subparagraph (C)--
                            (i) by striking ``the Interim or 
                        Restoration Flows authorized in part I of this 
                        subtitle'' and inserting ``Restoration Flows 
                        authorized in this part''; and
                            (ii) by striking ``, and for ensuring 
                        appropriate adjustment in the recovered water 
                        account pursuant to section 10004(a)(5)''.

SEC. 213. ADDITIONAL AUTHORITIES.

    Section 10203 of the San Joaquin River Restoration Settlement Act 
(Public Law 111-11) is amended--
            (1) in subsection (b)--
                    (A) by striking ``section 10004(a)(4)'' and 
                inserting ``section 10004(a)(3)''; and
                    (B) by striking ``, provided'' and all that follows 
                through ``section 10009(f)(2)''; and
            (2) by striking subsection (c).

    TITLE III--REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
                           CONSTRUCTION COSTS

SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
              CONSTRUCTION COSTS.

    (a) Conversion of Contracts.--
            (1) Not later than 1 year after enactment, the Secretary of 
        the Interior, upon request of the contractor, shall convert all 
        existing long-term Central Valley Project contracts entered 
        under subsection (e) of section 9 of the Act of August 4, 1939 
        (53 Stat. 1196), to a contract under subsection (d) of section 
        9 of said Act (53 Stat. 1195), under mutually agreeable terms 
        and conditions.
            (2) Upon request of the contractor, the Secretary is 
        further authorized to convert, not later than 1 year after 
        enactment, any Central Valley Project long-term contract 
        entered under subsection (c)(2) of section 9 of the Act of 
        August 4, 1939 (53 Stat. 1194), to a contract under subsection 
        (c)(1) of section 9 of said Act, under mutually agreeable terms 
        and conditions.
            (3) All contracts entered into pursuant to paragraph (1) 
        shall--
                    (A) require the repayment, either in lump sum or by 
                accelerated prepayment, of the remaining amount of 
                construction costs identified in the most current 
                version of the Central Valley Project Schedule of 
                Irrigation Capital Allocations by Contractor, as 
                adjusted to reflect payments not reflected in such 
                schedule, and properly assignable for ultimate return 
                by the contractor, no later than January 31, 2013, or 
                if made in approximately equal annual installments, no 
                later than January 31, 2016; such amount to be 
                discounted by the Treasury Rate. An estimate of the 
                remaining amount of construction costs as of January 
                31, 2013, as adjusted, shall be provided by the 
                Secretary of the Interior to each contractor no later 
                than 180 days after enactment;
                    (B) require that, notwithstanding subsection 
                (c)(2), construction costs or other capitalized costs 
                incurred after the effective date of the converted 
                contract or not reflected in the schedule referenced in 
                subparagraph (A), and properly assignable to such 
                contractor, shall be repaid in not more than 5 years 
                after notification of the allocation if such amount is 
                a result of a collective annual allocation of capital 
                costs to the contractors exercising contract 
                conversions under this subsection of less than 
                $5,000,000. If such amount is $5,000,000 or greater, 
                such cost shall be repaid as provided by applicable 
                reclamation law, provided that the reference to the 
                amount of $5,000,000 shall not be a precedent in any 
                other context; and
                    (C) provide that power revenues will not be 
                available to aid in repayment of construction costs 
                allocated to irrigation under the contract.
            (4) All contracts entered into pursuant to paragraph (2) 
        shall--
                    (A) require the repayment in lump sum of the 
                remaining amount of construction costs identified in 
                the most current version of the Central Valley Project 
                Schedule of Municipal and Industrial Water Rates, as 
                adjusted to reflect payments not reflected in such 
                schedule, and properly assignable for ultimate return 
                by the contractor, no later than January 31, 2016. An 
                estimate of the remaining amount of construction costs 
                as of January 31, 2016, as adjusted, shall be provided 
                by the Secretary of the Interior to each contractor no 
                later than 180 days after enactment; and
                    (B) require that, notwithstanding subsection 
                (c)(2), construction costs or other capitalized costs 
                incurred after the effective date of the contract or 
                not reflected in the schedule referenced in 
                subparagraph (A), and properly assignable to such 
                contractor, shall be repaid in not more than 5 years 
                after notification of the allocation if such amount is 
                a result of a collective annual allocation of capital 
                costs to the contractors exercising contract 
                conversions under this subsection of less than 
                $5,000,000. If such amount is $5,000,000 or greater, 
                such cost shall be repaid as provided by applicable 
                reclamation law, provided that the reference to the 
                amount of $5,000,000 shall not be a precedent in any 
                other context.
    (b) Final Adjustment.--The amounts paid pursuant to subsection (a) 
shall be subject to adjustment following a final cost allocation by the 
Secretary of the Interior upon completion of the construction of the 
Central Valley Project. In the event that the final cost allocation 
indicates that the costs properly assignable to the contractor are 
greater than what has been paid by the contractor, the contractor shall 
be obligated to pay the remaining allocated costs. The term of such 
additional repayment contract shall be no less than 1 year and no more 
than 10 years, however, mutually agreeable provisions regarding the 
rate of repayment of such amount may be developed by the parties. In 
the event that the final cost allocation indicates that the costs 
properly assignable to the contractor are less than what the contractor 
has paid, the Secretary of the Interior is authorized and directed to 
credit such overpayment as an offset against any outstanding or future 
obligation of the contractor.
    (c) Applicability of Certain Provisions.--
            (1) Notwithstanding any repayment obligation under 
        subsection (a)(3)(B) or subsection (b), upon a contractor's 
        compliance with and discharge of the obligation of repayment of 
        the construction costs as provided in subsection (a)(3)(A), the 
        ownership and full-cost pricing limitations of any provision of 
        Federal reclamation law shall not apply to lands in such 
        district.
            (2) Notwithstanding any repayment obligation under 
        paragraph (3)(B) or paragraph (4)(B) of subsection (a), or 
        subsection (b), upon a contractor's compliance with and 
        discharge of the obligation of repayment of the construction 
        costs as provided in paragraphs (3)(A) and (4)(A) of subsection 
        (a), such contractor shall continue to pay applicable operation 
        and maintenance costs and other charges applicable to such 
        repayment contracts pursuant to the then-current rate-setting 
        policy and applicable law.
    (d) Certain Repayment Obligations Not Altered.--Implementation of 
the provisions of this section shall not alter the repayment obligation 
of any other long-term water service or repayment contractor receiving 
water from the Central Valley Project, or shift any costs that would 
otherwise have been properly assignable to any contractors absent this 
section, including operations and maintenance costs, construction 
costs, or other capitalized costs incurred after the date of enactment 
of this Act, to other such contractors.
    (e) Statutory Interpretation.--Nothing in this part shall be 
construed to affect the right of any long-term contractor to use a 
particular type of financing to make the payments required in paragraph 
(3)(A) or paragraph (4)(A) of subsection (a).
    (f) Definition of Treasury Rate.--For purposes of this section, 
``Treasury Rate'' shall be defined as the 20-year Constant Maturity 
Treasury rate published by the United States Department of the Treasury 
as of October 1, 2012.

 TITLE IV--BAY-DELTA WATERSHED WATER RIGHTS PRESERVATION AND PROTECTION

SEC. 401. WATER RIGHTS AND AREA-OF-ORIGIN PROTECTIONS.

    Notwithstanding the provisions of this Act, Federal reclamation 
law, or the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.)--
            (1) the Secretary of the Interior (``Secretary'') is 
        directed, in the operation of the Central Valley Project, to 
        strictly adhere to State water rights law governing water 
        rights priorities by honoring water rights senior to those 
        belonging to the Central Valley Project, regardless of the 
        source of priority;
            (2) the Secretary is directed, in the operation of the 
        Central Valley Project, to strictly adhere to and honor water 
        rights and other priorities that are obtained or exist pursuant 
        to the provisions of California Water Code sections 10505, 
        10505:5, 11128, 11460, and 11463; and sections 12200 to 12220, 
        inclusive; and
            (3) any action that affects the diversion of water or 
        involves the release of water from any water storage facility 
        taken by the Secretary or the Secretary of the Department of 
        Commerce to conserve, enhance, recover, or otherwise protect 
        any species listed under the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.) shall be applied in a manner that is 
        consistent with water right priorities established by State 
        law.

SEC. 402. SACRAMENTO RIVER SETTLEMENT CONTRACTS.

     In the implementation of the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.), in the Bay-Delta and on the Sacramento River, the 
Secretary and the Secretary of Commerce are directed to apply any 
limitations on the operation of the Central Valley Project or to 
formulate any ``reasonable prudent alternative'' associated with the 
operation of the Central Valley Project in a manner that strictly 
adheres to and applies the water rights priorities for ``Project 
Water'' and ``Base Supply'' provided for in the Sacramento River 
Settlement Contracts. Article 3(i) of the Sacramento River Settlement 
Contracts shall not be utilized by the United States as means to 
provide shortages to the Sacramento River Settlement Contracts that are 
different than those provided for in Article 5(a) of those contracts.

SEC. 403. SACRAMENTO RIVER WATERSHED WATER SERVICE CONTRACTORS.

    (a) In General.--Subject to subsection (b) and the absolute 
priority of the Sacramento River Settlement Contractors to Sacramento 
River supplies over Central Valley Project diversions and deliveries to 
other contractors, the Secretary is directed, in the operation of the 
Central Valley Project, to allocate water provided for irrigation 
purposes to existing Central Valley Project agricultural water service 
contractors within the Sacramento River Watershed in compliance with 
the following:
            (1) Not less than 100% of their contract quantities in a 
        ``Wet'' year.
            (2) Not less than 100% of their contract quantities in an 
        ``Above Normal'' year.
            (3) Not less than 100% of their contract quantities in a 
        ``Below Normal'' year.
            (4) Not less than 75% of their contract quantities in a 
        ``Dry'' year.
            (5) Not less than 50% of their contract quantities in a 
        ``Critically Dry'' year.
    (b) Protection of Municipal and Industrial Supplies.--Nothing in 
subsection (a) shall be deemed to (i) modify any provision of a water 
service contract that addresses municipal and industrial water shortage 
policies of the Secretary, (ii) affect or limit the authority of the 
Secretary to adopt or modify municipal and industrial water shortage 
policies, (iii) affect or limit the authority of the Secretary to 
implement municipal and industrial water shortage policies, or (iv) 
affect allocations to Central Valley Project municipal and industrial 
contractors pursuant to such policies. Neither subsection (a) nor the 
Secretary's implementation of subsection (a) shall constrain, govern or 
affect, directly or indirectly, the operations of the Central Valley 
Project's American River Division or any deliveries from that Division, 
its units or its facilities.
    (c) Definitions.--In this section:
            (1) The term ``existing Central Valley Project agricultural 
        water service contractors within the Sacramento River 
        Watershed'' means water service contractors within the Shasta, 
        Trinity, and Sacramento River Divisions of the Central Valley 
        Project, that have a water service contract in effect, on the 
        date of the enactment of this section, that provides water for 
        irrigation.
            (2) The year type terms used in subsection (a) have the 
        meaning given those year types in the Sacramento Valley Water 
        Year Type (40-30-30) Index.

SEC. 404. NO REDIRECTED ADVERSE IMPACTS.

    The Secretary shall insure that there are no redirected adverse 
water supply or fiscal impacts to those within the Sacramento River 
watershed or to the State Water Project arising from the Secretary's 
operation of the Central Valley Project to meet legal obligations 
imposed by or through any State or Federal agency, including, but not 
limited to those legal obligations emanating from the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.) or this Act, or actions or 
activities implemented to meet the twin goals of improving water supply 
or addressing environmental needs of the Bay Delta.

                         TITLE V--MISCELLANOUS

SEC. 501. PRECEDENT.

    Congress finds and declares that--
            (1) coordinated operations between the Central Valley 
        Project and the State Water Project, previously requested and 
        consented to by the State of California and the Federal 
        Government, require assertion of Federal supremacy to protect 
        existing water rights throughout the system; and
            (2) these circumstances are unique to California.
Therefore, nothing in this Act shall serve as precedent in any other 
State.
                                                 Union Calendar No. 280

112th CONGRESS

  2d Session

                               H. R. 1837

                          [Report No. 112-403]

_______________________________________________________________________

                                 A BILL

To address certain water-related concerns on the San Joaquin River, and 
                          for other purposes.

_______________________________________________________________________

                           February 27, 2012

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed