[Congressional Record Volume 149, Number 76 (Wednesday, May 21, 2003)]
[Senate]
[Pages S6859-S6863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
  S. 1097. A bill to authorize the Secretary of the Interior to 
implement the Calfed Bay-Delta Program; to the Committee on Energy and 
Natural Resources.
  Mrs. FEINSTEIN. Mr. President, on behalf of Senator Boxer and myself, 
I rise today to introduce the Calfed Bay-Delta Authorization Act. This 
bill, an $880 million authorization, is a 33 percent match for state 
and local dollars over the next 4 years to address California's water 
needs through a balanced program.
  Last year's bill passed the Energy and Natural Resources Committee by 
a vote of 18-5, and since that time I have worked with Republicans, 
most notably Senator Jon Kyl of Arizona, to come up with an even 
stronger bill.
  The result: the legislation we introduced today is greatly improved 
from last year's bill--it is smaller, the authorizations are more 
specific, and it does a better job of ensuring that the CALFED program 
be implemented in a balanced manner. Let me describe how the bill is 
improved:
  First, many Senators from other States were afraid CALFED was going 
to use up the Bureau of Reclamation's entire budget. To meet these 
concerns, we have cut the authorization level, ultimately to $880 
million over four years. We also limited the Federal cost-share to one-
third.
  Second, some Republican Senators were afraid that environmental 
projects not needing authorization would sail smoothly ahead, while 
storage projects lacking Congressional approval would languish. To meet 
this concern, we required balanced implementation. The Secretary of the 
Interior must certify annually that the CALFED program is progressing 
in a balanced manner toward achieving all of its different components.
  Third, other Republican Senators were concerned that they had no good 
handle on the Federal funding of the many different agencies involved 
in CALFED. We meet this concern by requiring the Office of Management 
and Budget, OMB, to prepare a cross-cut budget showing the Federal 
funding of each of the different agencies. We also prepared a specific 
list of the projects to be funded and how much each one would receive.
  In my view, these changes make the bill stronger and more likely to 
pass both the Senate and the House. Just as importantly, the bill 
continues to provide the funding necessary to implement the key 
elements of the CALFED program. In fact, the pieces of the legislation 
work together to solve our water needs:
  One need is water storage. I don't believe we can meet all of our 
future water needs without increased water storage that is 
environmentally benign, that if off stream and that provides 
flexibility in the system for us to increase water supply, improve 
water quality, and enhance ecosystem restoration.
  We must be able to take water in wet years and store it for use in 
dry years. The bill provides $102 million for planning and feasibility 
studies for water storage projects--and an additional $77 million for 
conveyance.
  Next is ecological restoration. This means improving fish passages, 
restoring streams, rivers and habitats and improving water quality. The 
bill provides $100 million for ecological restoration.
  The bill authorizes $153 million for water conservation and 
recycling, including $84 million for desalination and water recycling 
projects, leveraging substantial additional water supplies for 
California with relatively little Federal investment.
  The bill would also improve water quality for drinking through 
investment in treatment technology demonstration projects and water 
quality improvements in the San Francisco Bay Delta, the San Joaquin 
Valley, and other parts of the State.
  I would also like to emphasize that the bill includes a grants 
program for local and regional communities throughout California, 
including the northern part of the State. The bill authorizes up to $95 
million for local California communities to develop plans and projects 
to improve their water situation. This State-wide grants program is an 
example of how the bill will benefit all Californians. The bill also 
includes $50 million for watershed planning and assistance.
  The bill also includes other important provisions on levee stability, 
with $70 million, ensuring CALFED has strong supporting science, with 
$50 million, and $25 million for program management, oversight, and 
coordination. There is also $75 million for the environmental water 
account, which purchases available water for environmental and other 
purposes.
  The bill also includes balance and cross-cut budget reporting 
requirements.
  Through the CALFED process, we have discovered that, as Californians, 
we have many common water interests. For example, if we both conserve 
water and build new environmentally responsible off-stream storage, 
then we have

[[Page S6860]]

found two ways to increase the supply of water for everyone's use. And 
if we make intelligent investments in ecological restoration, we can 
continue to use water for growing our economy while benefitting our 
environment at the same time.
  CALFED emerged after years of negotiations between Californians of 
different backgrounds who care about water. This bill proposes specific 
projects for each of CALFED's basic parts--and it appropriately defines 
the Federal role so that other states know that California is taking 
full responsibility for its own situation.
  It is my strong belief that the Western energy crisis is a forerunner 
to what California will soon experience with water. Just consider the 
following: California has a population of over 35 million people, which 
is expected to grow to 50 million in twenty years, yet our water system 
infrastructure was built when the State had only 16 million people.

  California is the sixth largest economy in the world. It is the 
number one agricultural producing State in the Nation. It is the 
leading producer of agriculture products, such as dairy, wine, grapes, 
strawberries, almonds, lettuce and tomatoes--the list goes on and on.
  California's trade, manufacturing, and service sectors are 
substantial contributors to the American economy. Clearly, these 
sectors would be put at risk if there is not an adequate supply of 
water.
  California has more endangered species than any State except Hawaii, 
as well as the largest population.
  To make matters worse, a recent study by the Scripps Institute of 
Oceanography predicts that global warming could reduce the West's water 
suppy by an much as 30 percent by 2050.
  Clearly, California's water needs are tremendous; meanwhile, the last 
major infrastructure improvement in the state occurred in the 1970s. We 
need to prepare for the future and we need to do so in an 
environmentally sensitive way. If there is one lesson to learn from 
California's damaging energy crisis, it is that time to address a 
crisis is not while it is happening, but beforehand.
  California is struggling to build more power plants, while also doing 
everything possible to reduce demand through increased efficiency and 
conservation. But because this started so late, we have encountered 
some serious problems in the past two years, which is why it is even 
more important that we fix our water problem before it, too, reaches a 
crisis stage.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1097

       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 ``Calfed Bay-Delta 
     Authorization Act''.

     SEC. 2. DEFINITIONS.

       For purposes of this Act:
       (1) Calfed bay-delta program.--The ``Calfed Bay-Delta 
     Program'' means the programs, projects, complementary 
     actions, and activities undertaken through coordinated 
     planning, implementation, and assessment activities of the 
     State and Federal agencies in a manner consistent with the 
     Record of Decision.
       (2) California bay-delta authority.--The term ``California 
     Bay-Delta Authority'' means a committee of State and Federal 
     agencies and public members established to oversee the Calfed 
     Bay-Delta Program, as set forth in the California Bay-Delta 
     Authority Act (2002 Cal. Stat. Chap. 812).
       (3) Environmental water account.--The term ``Environmental 
     Water Account'' means the reserve of water provided for in 
     the Record of Decision to provide water, in addition to the 
     amount of the regulatory baseline, to protect and restore 
     Delta fisheries.
       (4) Federal agencies.--The term ``Federal agencies'' means 
     the following:
       (A) The Department of the Interior (including the Bureau of 
     Reclamation, Fish and Wildlife Service, Bureau of Land 
     Management, and United States Geological Survey);
       (B) The Environmental Protection Agency;
       (C) The Army Corps of Engineers;
       (D) The Department of Commerce (including NOAA Fisheries);
       (E) The Department of Agriculture (including the Natural 
     Resources Conservation Service and the Forest Service); and
       (F) The Western Area Power Administration.
       (5) Governor.--The term ``Governor'' means the Governor of 
     the State of California.
       (6) Implementation memorandum.--The term ``Implementation 
     Memorandum'' means the Calfed Bay-Delta Program 
     Implementation Memorandum of Understanding dated August 28, 
     2000, executed by the Federal agencies and the State 
     agencies.
       (7) Record of decision.--The term ``Record of Decision'' 
     means the Federal programmatic Record of Decision dated 
     August 28, 2000, issued by the Federal agencies and supported 
     by the State.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (9) Stage 1.--The term ``Stage 1'' means the programs and 
     projects planned for the first 7 years of the Calfed Bay-
     Delta Program, as specified in the Record of Decision.
       (10) State.--The term ``State'' means the State of 
     California.
       (11) State agencies.--The term ``State Agencies'' means the 
     following:
       (A) The Resources Agency of California (including the 
     Department of Water Resources and the Department of Fish and 
     Game);
       (B) The California Environmental Protection Agency 
     (including the State Water Resources Control Board); and
       (C) The California Department of Food and Agriculture.

     SEC. 3. BAY OF DELTA PROGRAM.

       (a) Findings.--Congress finds that--
       (1) the mission of the Calfed Bay-Delta Program is to 
     develop and implement a long-term comprehensive plan that 
     will improve water management and restore the ecological 
     health of the Bay-Delta system.
       (2) the Federal and State agencies participating in the 
     Bay-Delta Program have prepared a thirty-year plan, the 
     Record of Decision, dated August 28, 2000, to coordinate 
     existing programs and direct new programs to improve the 
     quality and reliability of the State's water supplies and to 
     restore the ecological health of the Bay-Delta watershed.
       (3) the Calfed Bay-Delta Program was developed as a joint 
     Federal-State program to deal effectively with the 
     multijurisdictional issues involved in managing the Bay-Delta 
     system; and
       (4) while this Act authorizes appropriations for four years 
     of this thirty-year Program, it is anticipated that the 
     Federal Government will participate as a full partner with 
     the State of California for the duration of this thirty-year 
     Program.
       (b) In General.--The Record of Decision is approved as a 
     framework for addressing Calfed Bay-Delta Program components 
     consisting of water storage, ecosystem restoration, water 
     supply reliability, conveyance, water use efficiency, water 
     quality, water transfers, watersheds, Environmental Water 
     Account, levee stability, governance, and science. The 
     Secretary and the heads of the Federal agencies are 
     authorized to carry out (undertake, fund, or participate in) 
     the activities in the Record of Decision, subject to the 
     provisions of this Act and the constraints of the Record of 
     Decision, so that the Program activities consisting of 
     protecting drinking water quality; restoring ecological 
     health; improving water supply reliability, including 
     additional water storage and conveyance; and protecting Delta 
     levees; will progress in a balanced manner.
       (c) Authorized Activities.--
       (1) In general.--The Secretary and the heads of the Federal 
     agencies are authorized to carry out the activities described 
     in this subsection in furtherance of Stage 1 of the Calfed 
     Bay-Delta Program as set forth in the Record of Decision, 
     subject to the cost-share and other provisions of this Act, 
     if the activity has been subject to environmental review and 
     approval as required under applicable Federal and State law, 
     and has been approved and certified by the California Bay-
     Delta Authority to be consistent with the Record of Decision.
       (2) Specific activities authorized.--The Secretary of the 
     Interior is authorized to carry out the activities set forth 
     in subparagraphs (A) through (H), and subparagraphs (K), (L), 
     and (M) of subsection (c)(3). The Administrator of the 
     Environmental Protection Agency is authorized to carry out 
     the activities set forth in subparagraphs (G), (H), (I), (K), 
     and (L) of subsection (c)(3). The Secretary of the Army is 
     authorized to carry out the activities set forth in 
     subparagraphs (G), (J), (K), and (L) of subsection (c)(3). 
     The Secretary of Commerce is authorized to carry out the 
     activities set forth in subparagraphs (E), (G), (H), and (K) 
     of subsection (c)(3). The Secretary of Agriculture is 
     authorized to carry out the activities set forth in 
     subparagraphs (C), (G), (H), (I), and (K) of subsection 
     (c)(3).
       (3) Program activities.--
       (A) Water storage.--Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $102,000,000 may be expended for the 
     following:
       (i) planning activities and feasibility studies for the 
     following projects to be pursued with project-specific study:
       (I) enlargement of Shasta Dam in Shasta County (not to 
     exceed $12,000,000); and
       (II) enlargement of Los Vaqueros Reservoir in Contra Costa 
     County (not to exceed $17,000,000);
       (ii) planning and feasibility studies for the following 
     projects requiring further consideration:
       (I) Sites Reservoir in Colusa County (not to exceed 
     $6,000,000); and
       (II) Upper San Joaquin River storage in Fresno and Madera 
     Counties (not to exceed $11,000,000);
       (iii) developing and implementing groundwater management 
     and groundwater storage projects (not to exceed $50,000,000); 
     and
       (iv) comprehensive water management planning (not to exceed 
     $6,000,000).

[[Page S6861]]

       (B) Conveyance.--Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $77,000,000 may be expended for the 
     following:
       (i) South Delta Actions (not to exceed $45,000,000):
       (I) South Delta Improvements Program to--
       (aa) increase the State Water Project export limit to 8500 
     cfs;
       (bb) install permanent, operable barriers in the south 
     Delta;
       (cc) design and construct fish screens and intake 
     facilities at Clifton Court Forebay and the Tracy Pumping 
     Plant facilities; and
       (dd) increase the State Water Project export to the maximum 
     capability of 10,300 cfs;
       (II) reduction of agricultural drainage in south Delta 
     channels and other actions necessary to minimize impacts of 
     such drainage on drinking water quality;
       (III) design and construction of lower San Joaquin River 
     floodway improvements;
       (IV) installation and operation of temporary barriers in 
     the south Delta until fully operable barriers are 
     constructed;
       (V) actions to protect navigation and local diversions not 
     adequately protected by the temporary barriers;
       (VI) actions identified in Subclause (I) or other actions 
     necessary to offset degradation of drinking water quality in 
     the Delta due to the South Delta Improvements Program; and
       (VII) actions at Franks Tract to improve water quality in 
     the Delta.
       (ii) North Delta Actions (not to exceed $12,000,000):
       (I) evaluation and implementation of improved operational 
     procedures for the Delta Cross Channel to address fishery and 
     water quality concerns;
       (II) evaluation of a screened through-Delta facility on the 
     Sacramento River; and
       (III) design and construction of lower Mokelumne River 
     floodway improvements;
       (iii) interties (not to exceed $10,000,000):
       (I) evaluation and construction of an intertie between the 
     State Water Project and the Central Valley Project facilities 
     at or near the City of Tracy; and
       (II) assessment of the connection of the Central Valley 
     Project to the State Water Project's Clifton Court Forebay 
     with a corresponding increase in the Forebay's screened 
     intake; and
       (iv) evaluation and implementation of the San Luis 
     Reservoir lowpoint improvement project (not to exceed 
     $10,000,000).
       (C) Water use efficiency.--Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $153,000,000 may be expended for the 
     following:
       (i) water conservation projects that provide water supply 
     reliability, water quality, and ecosystem benefits to the 
     Bay-Delta system (not to exceed $61,000,000);
       (ii) technical assistance for urban and agricultural water 
     conservation projects (not to exceed $5,000,000);
       (iii) water recycling and desalination projects, including 
     but not limited to projects identified in the Bay Area Water 
     Recycling Plan and the Southern California Comprehensive 
     Water Reclamation and Reuse Study (not to exceed 
     $84,000,000), as follows:
       (I) in providing financial assistance under this clause, 
     the Secretary shall give priority consideration to projects 
     that include regional solutions to benefit regional water 
     supply and reliability needs;
       (II) the Secretary shall review any feasibility level 
     studies for seawater desalination and regional brine line 
     projects that have been completed, whether or not those 
     studies were prepared with financial assistance from the 
     Secretary;
       (III) the Secretary shall report to the Congress within 90 
     days after the completion of a feasibility study or the 
     review of a feasibility study for the purposes of providing 
     design and construction assistance for the construction of 
     desalination and regional brine line projects; and
       (IV) the Federal share of the cost of any activity carried 
     out with assistance under this clause may not exceed the 
     lesser of 25 percent of the total cost of the activity or 
     $50,000,000;
       (iv) water measurement and transfer actions (not to exceed 
     $1,500,000); and
       (v) certification of implementation of best management 
     practices for urban water conservation (not to exceed 
     $1,500,000).
       (D) Water transfers.--Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $3,000,000 may be expended for the 
     following:
       (i) increasing the availability of existing facilities for 
     water transfers;
       (ii) lowering transaction costs through permit 
     streamlining; and
       (iii) maintaining a water transfer information 
     clearinghouse.
       (E) Environmental water account.--Of the amounts authorized 
     to be appropriated for fiscal years 2004 through 2007 under 
     this Act, no more than $75,000,000 may be expended for 
     implementation of the Environmental Water Account.
       (F) Integrated regional water management plans.--Of the 
     amounts authorized to be appropriated for fiscal years 2004 
     through 2007 under this Act, no more than $95,000,000 may be 
     expended for the following:
       (i) establishing a competitive grants program to assist 
     local and regional communities in California in developing 
     and implementing integrated regional water management 
     plans to carry out Stage 1 of the Record of Decision; and
       (ii) implementation of projects and programs in California 
     that improve water supply reliability, water quality, 
     ecosystem restoration, and flood protection, or meet other 
     local and regional needs, that are consistent with, and make 
     a significant contribution to, Stage 1 of the Calfed Bay-
     Delta Program.
       (G) Ecosystem restoration.--Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $100,000,000 may be expended for the 
     following:
       (i) implementation of large-scale restoration projects in 
     San Francisco Bay, the Delta, and its tributaries;
       (ii) restoration of habitat in the Delta, San Pablo Bay, 
     and Suisun Bay and Marsh, including tidal wetlands and 
     riparian habitat;
       (iii) fish screen and fish passage improvement projects;
       (iv) implementation of an invasive species program, 
     including prevention, control, and eradication;
       (v) development and integration of State and Federal 
     agricultural programs that benefit wildlife into the 
     Ecosystem Restoration Program;
       (vi) financial and technical support for locally-based 
     collaborative programs to restore habitat while addressing 
     the concerns of local communities;
       (vii) water quality improvement projects to reduce 
     salinity, selenium, mercury, pesticides, trace metals, 
     dissolved oxygen, turbidity, sediment, and other pollutants;
       (viii) land and water acquisitions to improve habitat and 
     fish spawning and survival in the Delta and its tributaries;
       (ix) integrated flood management, ecosystem restoration, 
     and levee protection projects;
       (x) scientific evaluations and targeted research on program 
     activities; and
       (xi) strategic planning and tracking of program 
     performance.
       (H) Watersheds. Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $50,000,000 may be expended for the 
     following:
       (i) building local capacity to assess and manage watersheds 
     affecting the Bay-Delta system;
       (ii) technical assistance for watershed assessments and 
     management plans; and
       (iii) developing and implementing locally-based watersheds 
     conservation, maintenance, and restoration actions.
       (I) Water quality.--Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $50,000,000 may be expended for the 
     following:
       (i) addressing drainage problems in the San Joaquin Valley 
     to improve downstream water quality, including habitat 
     restoration projects that reduce drainage and improve water 
     quality, provided that--
       (I) a plan is in place for monitoring downstream water 
     quality improvements;
       (II) state and local agencies are consulted on the 
     activities to be funded; and
       (III) this clause is not intended to create any right, 
     benefit or privilege;
       (ii) implementation of source control programs in the Delta 
     and its tributaries;
       (iii) developing recommendations through scientific panels 
     and advisory council processes to meet the Calfed Bay-Delta 
     Program goal of continuous improvement in Delta water quality 
     for all uses;
       (iv) investing in treatment technology demonstration 
     projects;
       (v) controlling runoff into the California aqueduct and 
     other similar conveyances;
       (vi) addressing water quality problems at the North Bay 
     Aqueduct;
       (vii) studying recirculation of export water to reduce 
     salinity and improve dissolved oxygen in the San Joaquin 
     River,
       (viii) supporting and participating in the development of 
     projects to enable San Francisco Bay Area water districts to 
     work cooperatively to address their water quality and supply 
     reliability issues, including connections between aqueducts, 
     water conservation measures, institutional arrangements, and 
     infrastructure improvements that encourage regional 
     approaches, and investigations and studies of available 
     capacity in a project to deliver water to the East Bay 
     Municipal Utility District under its contract with the Bureau 
     of Reclamation dated July 20, 2001, in order to determine if 
     such capacity can be utilized to meet the above objectives; 
     Provided, That these investigations and studies shall be 
     conducted consistent with the Record of Decision;
       (ix) development of water quality exchanges and other 
     programs to make high quality water available to urban areas; 
     and
       (x) development and implementation of a plan to meet all 
     existing water quality standards for which the State and 
     Federal water projects have responsibility.
       (J) Levee stability.--Of the amounts authorized to be 
     appropriated for fiscal years 2004 through 2007 under this 
     Act, no more than $70,000,000 may be expended for the 
     following:
       (i) assisting local reclamation districts in reconstructing 
     Delta levees to a base level of protection (not to exceed 
     $20,000,000);
       (ii) enhancing the stability of levees that have particular 
     importance in the system through the Delta Levee Special 
     Improvement Projects program (not to exceed $20,000,000);
       (iii) developing best management practices to control and 
     reverse land subsidence on Delta islands (not to exceed 
     $1,000,000);
       (iv) refining the Delta Emergency Management Plan (not to 
     exceed $1,000,000);

[[Page S6862]]

       (v) developing a Delta Risk Management Strategy after 
     assessing the consequences of Delta levee failure from 
     floods, seepage, subsidence, and earthquakes (not to exceed 
     $500,000);
       (vi) developing a strategy for reuse of dredged materials 
     on Delta islands (not to exceed $1,500,000);
       (vii) evaluating, and where appropriate, rehabilitating the 
     Suisun Marsh levees (not to exceed $6,000,000); and
       (viii) integrated flood management, ecosystem restoration, 
     and levee protection projects, including design and 
     construction of lower San Joaquin River and lower Mokelumne 
     River floodway improvements and other projects under the 
     Sacramento-San Joaquin Comprehensive Study (not to exceed 
     $20,000,000).
       (K) Science.--Of the amounts authorized to be appropriated 
     for fiscal years 2004 through 2007 under this Act, no more 
     than $50,000,000 may be expended for the following:
       (i) establishing and maintaining an independent science 
     board, technical panels, and standing boards to provide 
     oversight and peer review of the program;
       (ii) conducting expert evaluations and scientific 
     assessments of all program elements;
       (iii) coordinating existing monitoring and scientific 
     research programs;
       (iv) developing and implementing adaptive management 
     experiments to test, refine and improve scientific 
     understandings;
       (v) establishing performance measures, and monitoring and 
     evaluating the performance of all program elements; and
       (vi) preparing an annual Science Report.
       (L) Program management, oversight, and coordination.--Of 
     the amounts authorized to be appropriated for fiscal years 
     2004 through 2007 under this Act, no more than $25,000,000 
     may be expended by the Secretary, acting through the Director 
     of the Calfed Bay-Delta Program, for the following:
       (i) program-wide tracking of schedules, finances, and 
     performance;
       (ii) multi-agency oversight and coordination of Calfed 
     activities to ensure program balance and integration;
       (iii) development of interagency cross-cut budgets and a 
     comprehensive finance plan to allocate costs in accordance 
     with the beneficiary pays provisions of the Record of 
     Decision;
       (iv) coordination of public outreach and involvement, 
     including tribal, environmental justice, and public advisory 
     activities under the Federal Advisory Committee Act; and
       (v) development of Annual Reports.
       (M) Diversification of water supplies.--Of the amounts 
     authorized to be appropriated for fiscal years 2004 through 
     2007 under this Act, no more than $30,000,000 may be expended 
     to diversify sources of level 2 refuge supplies and modes of 
     delivery to refuges, and to acquire additional water for 
     level 4 refuge supplies.
       (4) Authorized actions.--The Secretary and the Federal 
     agency heads are authorized to carry out the activities 
     authorized by this Act through the use of grants, loans, 
     contracts, and cooperative agreements with Federal and non-
     Federal entities where the Secretary or Federal agency head 
     determines that the grant, loan, contract, or cooperative 
     agreement will assist in implementing the authorized activity 
     in an efficient, timely, and cost-effective manner. Provided, 
     however, that such activities shall not include construction 
     unless the United States is a party to the contract for 
     construction.

     SEC. 4. MANAGEMENT.

       (a) Coordination.--In carrying out the Calfed Bay-Delta 
     Program, the Federal agencies shall coordinate their 
     activities with the State agencies.
       (b) Public Participation.--In carrying out the Calfed Bay-
     Delta Program, the Federal agencies shall cooperate with 
     local and tribal governments and the public through a 
     federally chartered advisory committee or other appropriate 
     means, to seek input on program elements such as planning, 
     design, technical assistance, and development of peer review 
     science programs.
       (c) Science.--In carrying out the Calfed Bay-Delta Program, 
     the Federal agencies shall seek to ensure, to the maximum 
     extent practicable, that--
       (1) all major aspects of implementing the Program are 
     subjected to credible and objective scientific review; and
       (2) major decisions are based upon the best available 
     scientific information.
       (d) Governance.--In carrying out the Calfed Bay-Delta 
     Program, the Secretary and the Federal agency heads are 
     authorized to become voting members of the California Bay-
     Delta Authority, as established in the California Bay-Delta 
     Authority Act (2002 Cal. Stat. Chap. 812), to the extent 
     consistent with Federal law. Nothing in this subsection shall 
     preempt or otherwise affect any Federal law or limit the 
     statutory authority of any Federal agency: Provided, That the 
     California Bay-Delta Authority shall not be deemed to be an 
     advisory committee within the meaning of the Federal Advisory 
     Committee Act (5 U.S.C. App. 1) and the financial interests 
     of the California Bay-Delta Authority shall not be imputed to 
     any Federal official participating in such Authority.
       (e) Environmental Justice.--Consistent with Executive Order 
     12899 pertaining to Federal Actions to address Environmental 
     Justice in Minority and Low-Income Populations, it is the 
     intent of the Congress that the Federal and State agencies 
     should continue to collaborate to develop a comprehensive 
     environmental justice workplan for the Calfed Bay-Delta 
     Program and fulfill the commitment to addressing 
     environmental justice challenges referred to in the Calfed 
     Bay-Delta Program Environmental Justice Workplan dated 
     December 13, 2000.
       (f) Land Acquisition.--Before obligating or expending any 
     Federal funds to acquire land for the Ecosystem Restoration 
     Program, the Secretary shall first determine that existing 
     Federal land, State land, or other public land is not 
     available for the project purpose. Private land acquisitions 
     shall prioritize easements over acquisition of fee title 
     unless easements are unavailable or unsuitable for the stated 
     purpose.
       (g) Status Reports.--The Secretary shall report monthly on 
     the Authority's progress in achieving the water supply 
     targets as described in Section 2.2.4 of the Record of 
     Decision, the environmental water account requirements as 
     described in Section 2.2.7, and the water quality targets as 
     described in Section 2.2.9, and any pending actions that may 
     affect the Authority's ability to achieve those targets and 
     requirements.

     SEC. 5. REPORTING REQUIREMENTS.

       (a) Report and Certification by Calfed.--The Secretary, in 
     cooperation with the Governor, shall submit a report of the 
     California Bay-Delta Authority by December 15 of each year to 
     the appropriate authorizing and appropriating Committees of 
     the Senate and the House of Representatives that describes 
     the status of implementation of all components of the Calfed 
     Bay-Delta Program and that certifies whether or not the 
     Calfed Bay-Delta Program is progressing in a balanced manner 
     which allows all program components to be advanced, including 
     additional water supply, ecosystem restoration, and water 
     quality. The Secretary's report shall describe--
       (1) the progress of the Calfed Bay-Delta Program in meeting 
     the implementation schedule for the Program in a manner 
     consistent with the Record of Decision;
       (2) the status of implementation of all components of the 
     Calfed Bay-Delta Program;
       (3) expenditures in the past fiscal year and year to date 
     for implementing the Calfed Bay-Delta Program; and
       (4) accomplishments in the past fiscal year and year to 
     date in achieving the objectives of additional and improved--
       (A) water storage;
       (B) water quality;
       (C) water use efficiency;
       (D) ecosystem restoration;
       (E) watershed management;
       (F) levee system integrity;
       (G) water transfers;
       (H) water conveyance; and
       (I) water supply reliability.

     The report shall discuss the status of Calfed Bay-Delta 
     Program goals, current schedules, and relevant financing 
     agreements.
       (b) Statement of Balance.--Substantial progress in each of 
     the categories listed in subsection (a) shall be considered 
     in determining whether the Calfed Bay-Delta Program 
     is proceeding in a balanced manner for purposes of making 
     the certification provided for in subsection (a). In 
     addition, in making such certification the Secretary, in 
     cooperation with the Governor, shall prepare a statement 
     of whether the program is in balance which takes into 
     consideration the following:
       (1) status of all Stage 1 actions, including goals, 
     schedules, and financing agreements;
       (2) progress on storage projects, conveyance improvements, 
     levee improvements, water quality projects, and water use 
     efficiency programs;
       (3) completion of key projects and milestones identified in 
     the Ecosystem Restoration Program;
       (4) development and implementation of local programs for 
     watershed conservation and restoration;
       (5) progress in improving water supply reliability and 
     implementing the Environmental Water Account;
       (6) achievement of commitments under State and Federal 
     Endangered Species Act;
       (7) implementation of a comprehensive science program;
       (8) progress toward acquisition of the State and Federal 
     permits, including Clean Water Act section 404(a) permits, 
     for implementation of projects in all identified program 
     areas;
       (9) progress in achieving benefits in all geographic 
     regions covered by the Program;
       (10) legislative action on water transfer, groundwater 
     management, water use efficiency, and governance issues;
       (11) status of complementary actions;
       (12) status of mitigation measures; and
       (13) revisions to funding commitments and program 
     responsibilities
       (c) Revised Schedule.--If the report provided for in 
     subsection (a) and the statement of balance provided for in 
     subsection (b) conclude that the Calfed Bay-Delta Program is 
     not progressing in a balanced manner so that no certification 
     of balanced implementation can be made, the California Bay-
     Delta Authority shall prepare a revised schedule to ensure 
     the Calfed Bay-Delta Program will progress in a balanced 
     manner consistent with the intent of the Record of Decision. 
     This revised schedule shall be subject to approval by the 
     Secretary and the Governor, and upon such approval, shall be 
     submitted to the appropriate authorizing and appropriating 
     Committees of the Senate and the House of Representatives.
       (d) Feasibility Studies.--Any feasibility studies completed 
     for storage projects as a

[[Page S6863]]

     result of this Act shall include identification of project 
     benefits and beneficiaries and a cost allocation plan 
     consistent with the beneficiaries pay provisions of the 
     Record of Decision.
       (e) Financial Summary.--In addition to the report required 
     pursuant to subsection (a), no later than February 15 of each 
     year the Secretary shall submit to the appropriate 
     authorizing and appropriating committees of the Senate and 
     the House of Representatives a financial report certified by 
     the Secretary containing a detailed accounting of all funds 
     received and obligated by all Federal and State agencies 
     responsible for implementing the Calfed Bay-Delta Program in 
     the previous fiscal year, a budget for the proposed projects 
     (including a description of the project, authorization level, 
     and project status) to be carried out in the upcoming fiscal 
     year with the Federal portion of funds authorized under this 
     Act, and a listing of all projects to be undertaken in the 
     upcoming fiscal year with the Federal portion of funds 
     authorized under this Act.
       (f) Report.--Prior to December 2004, the Secretary, after 
     consultation with the Governor and the Federal agency heads, 
     shall submit a report to Congress that:
       (1) details the accomplishments of the Calfed Bay-Delta 
     Program to date;
       (2) identifies the specific steps that remain to be 
     undertaken in the Program;
       (3) sets forth the specific funding levels and sources to 
     accomplish such steps; and
       (4) makes such recommendations as may be necessary to 
     accomplish the goals and objectives of the continuing Calfed 
     Bay-Delta Program.

     SEC. 6. CROSSCUT BUDGET AND AUTHORIZATION OF APPROPRIATIONS.

       (a) Crosscut Budget.--The President's Budget shall include 
     requests for the appropriate level of funding for each of the 
     Federal agencies to carry out its responsibilities under the 
     Calfed Bay-Delta Program. Such funds shall be requested for 
     the Federal agency with authority and programmatic 
     responsibility for the obligation of such funds, as set forth 
     in section 3(c)(2). At the time of submission of the 
     President's Budget to the Congress, the Director of the 
     Office of Management and Budget shall submit to the 
     appropriate authorizing and appropriating committees of the 
     Senate and the House of Representatives an interagency budget 
     crosscut report that displays the budget proposed, including 
     any interagency or intra-agency transfer, for each of the 
     Federal agencies to carry out the Calfed Bay-Delta Program 
     for the upcoming fiscal year, separately showing funding 
     requested under both pre-existing authorities and under the 
     new authorities granted by this Act. The report shall also 
     identify all expenditures since 1996 within the Federal and 
     State governments used to achieve the objectives of the 
     Calfed Bay-Delta Program.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary and the heads of the 
     Federal agencies $880,000,000 pay the Federal share of 
     carrying out Stage 1 of the Record of Decision for fiscal 
     years 2004 through 2007, in accordance with the provisions of 
     this Act. The funds shall remain available without fiscal 
     year limitation.

     SEC. 7. FEDERAL SHARE OF COSTS.

       The Federal share of the cost of implementing Stage 1 of 
     the Calfed Bay-Delta Program as set forth in the Record of 
     Decision shall not exceed 33.3 percent.

     SEC. 8. COMPLIANCE WITH STATE AND FEDERAL LAW.

       Nothing in this Act preempts or otherwise affects any 
     Federal or State law, including any authority of a Federal 
     agency to carry out activities related to, or in furtherance 
     of, the Calfed Bay-Delta Program.
                                 ______