[House Report 112-403]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-403

======================================================================



 
                  SACRAMENTO-SAN JOAQUIN VALLEY WATER 
                            RELIABILITY ACT

                                _______
                                

 February 27, 2012.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Hastings of Washington, from the Committee on Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 1837]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 1837) to address certain water-related concerns 
on the San Joaquin River, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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.

                          Purpose of the Bill

    The purpose of H.R. 1837, as ordered reported, is to 
address certain water-related concerns on the San Joaquin 
River.

                  Background and Need for Legislation

    H.R. 1837, the Sacramento-San Joaquin Valley Water 
Reliability Act, eliminates future man-made droughts in 
California caused by a number of federal laws and regulations 
and past Congressional inaction. As amended, the bill not only 
provides water supply certainty and water rights protections to 
those in the Sacramento and San Joaquin Valleys of California, 
but will also preserve and create thousands of jobs at no 
taxpayer expense, expedite revenue to the U.S. Treasury, and 
decrease reliance on foreign food sources.
    California's water supply system was once legendary, 
transforming desert into some of the most productive farmland 
in the world and fueling rapid growth in the southern part of 
the State. Now, however, the system has been compromised due to 
environmental lawsuits, age and lack of new facilities. The 
current California water storage and delivery system is 
designed to serve 22 million people, yet the State has 37 
million residents and the population is expected to nearly 
double by 2050. This legislation seeks to help remedy that 
situation by restoring water supply balance.
    California has experienced drought twelve times since 1850 
according to hydrologic records. These drought periods and the 
need to provide water to a rapidly growing population and farms 
led to an innovative and complex water storage and delivery 
system designed by the federal and state governments. The 
Central Valley Project (CVP) is a federal multi-purpose system 
of reservoirs and canals that collects and delivers waters from 
northern California and the Sierra Nevada mountains. In normal 
water years, the CVP can deliver a total of seven million acre 
feet (one acre foot is about 326,000 gallons, or enough water 
for two families for a year) of water. Most water is used to 
irrigate over three million acres of farmland while about 15 
percent of the water is used to serve over two million urban 
and industrial customers. The State Water Project (SWP) serves 
similar purposes, providing supplemental water to approximately 
25 million Californians and about 750,000 acres of irrigated 
farmland. The CVP and SWP, which are operated as one integrated 
unit under the terms of Public Law 99-546, have helped create a 
massive agricultural economy that supplies the nation with the 
majority of our vegetables, fruits and nuts.
    Water from both the CVP and SWP delivered to southern 
portions of the State is conveyed through the Sacramento/San 
Joaquin Bay-Delta through two massive pump systems near Tracy, 
California. Since northern California contains over two-thirds 
of the water resources and southern California has two-thirds 
of the human population and needs irrigation water, these two 
projects deliver water to over 27 million humans south of the 
Delta pumps and around the San Francisco Bay area. The westside 
of the San Joaquin Valley, which is south of the pumps, is a 
prime recipient of water delivered from the CVP pumps.
    While infrastructure is not being built on an adequate 
scale to account for population growth and other factors, 
environmental regulations continue to restrict water supplies 
for human needs. In 1992, Congress passed the Central Valley 
Project Improvement Act (CVPIA, Public Law 102-575) to include 
the ``protection, restoration, and mitigation of fish and 
wildlife'' as a new purpose for the CVP. This purpose was given 
equal priority with agricultural water supply and other 
original uses. The controversial CVPIA was enacted while 
California was experiencing the effects of a long-term drought. 
One of the most contentious aspects of the CVPIA was the 
dedication of 800,000 acre-feet/year of CVP water for fish and 
wildlife purposes. This provision reallocated water that had 
been delivered to farmers and cities. However, many have 
questioned whether the flows have had any positive impact on 
fish and wildlife flows compared to other factors, such as 
ocean conditions and predation. In addition, many have accused 
the Department of the Interior (DOI) of allocating more than 
800,000 acre feet due to vague language in the statute. H.R. 
1837 resolves this situation by setting a ceiling of 800,000 
acre feet. With this and other water sources, H.R. 1837 would 
still allow for over 1 million acre feet to be dedicated for 
fish and wildlife purposes.
    The CVPIA also created the CVP Restoration Fund to help pay 
for the vast majority of the actions taken to implement this 
law. Over $800 million in water and power ratepayer revenues 
have been collected for this purpose and deposited into the 
Fund since 1992. Many water and power customers have cited a 
lack of transparency over funding expenditures and have 
questioned their impact on fish and wildlife. H.R. 1837 
requires more transparency and creates an Advisory Board for 
program expenditures.
    The CVPIA and the Endangered Species Act (ESA) have 
contributed significantly to water supply uncertainty and 
instability. Environmental organizations blaming the water 
pumps as the main cause of endangered Delta smelt declines 
successfully used the federal court system to achieve many of 
their objectives. In May 2007, a Federal District Court judge 
ruled in Natural Resources Defense Council vs. Kempthorne that 
DOI's Biological Opinion on Delta smelt was ``arbitrary, 
capricious and contrary to law.'' This eventually led to a 
revised Biological Opinion that caused massive water shut-offs 
in 2009 and 2010. Under that Biological Opinion, increased 
amounts of water were re-allocated towards Delta smelt during 
the time farm communities in the west side of the San Joaquin 
Valley needed it most. A Biological Opinion on salmon and orcas 
led to additional water restrictions. There is disagreement 
about the causes of the salmon fisheries declines in California 
rivers, but a 2010 report by the National Marine Fisheries 
Service determined that poor ocean conditions were by far the 
most important factor causing this decline.
    The results of the water restrictions were devastating. 
Over one million acre feet of water were lost due to the smelt 
and salmon Biological Opinions. Although jobs estimates differ, 
thousands of jobs were lost and hundreds of thousands of acres 
of land were fallowed in 2010. The City of Mendota experienced 
an unemployment rate of 40 percent as a result of such 
restrictions. Since 1992--with the enactment of the CVPIA and 
in light of ESA restrictions--west side San Joaquin Valley 
irrigators have gone from receiving an average of 92 percent of 
their water supply to a current annual average of 35 to 40 
percent. On February 22, 2012, after this bill was ordered 
favorably reported from the Committee, the Obama Administration 
announced that the farmers in the San Joaquin Valley initially 
would only receive 30 percent of their allocated water for 
2012.
    Even though California experienced substantial 
precipitation and snowpack (165 percent of normal) in 2011, 
some irrigation districts south of the Delta only received 80 
percent of their water allocation. The Bureau of Reclamation 
(Reclamation), the federal agency operating the CVP, maintains 
that this allocation would be normal for this type of above 
average water year, but farmers who receive the water counter 
that in a year like last year, their allocation should have 
been at 90 percent at a minimum. The farmers' assertion is 
correct in light of recent history. In 2006, a water year that 
was much like the 2011 water year, the farmers received a 65 
percent allocation in February, but by April they were at 85 
percent and in May went to a 100 percent allocation. In 2005, a 
year that was actually drier than the current water year, these 
farmers received an initial allocation of 65 percent in 
February and ultimately went up to an 85 percent allocation. 
There is only one difference between 2011 and then: in 2005 and 
2006, the operations of the CVP were not constrained by 
Biological Opinions issued in December 2008 and May 2009 by the 
U.S. Fish and Wildlife Service (smelt) and the National Marine 
Fisheries Service (salmon), respectively.
    H.R. 1837 attempts to reverse the impacts of the ESA 
lawsuits by declaring that the CVP and SWP are compliant with 
the ESA if the projects are implemented in a manner consistent 
with the 1994 ``Principles for Agreement on Bay-Delta Standards 
between the State of California and the Federal Government,'' 
better known as the ``Bay-Delta Accord.'' This document serves 
as a landmark and universally praised agreement to improve 
water quality in the Delta and increase water reliability for 
users. The Bay-Delta Accord included the following elements: 
provisions to regulate springtime flow and export limits to 
benefit fish species; operational flexibility to comply with 
ESA provisions that address water supply and species monitoring 
issues among others; and measures to improve environmental 
conditions in the Bay-Delta Estuary.
    H.R. 1837 codifies the standards set forth in the Bay-Delta 
Accord to return balance and certainty to Sacramento-San 
Joaquin flows. The bill also preempts California's ESA 
standards to ensure that the environmental community does not 
sue and to keep the State regulatory community from seizing 
water from the SWP and others to impose more strict limits if 
they cannot get water from the federal CVP. This preemption is 
necessary given that the SWP and CVP are intertwined legally 
and functionally (pursuant to Public Law 99-546). This already 
existing preemption is the only such circumstance in the 
western United States, so the preemption in H.R. 1837 is 
limited solely to this situation. The Committee voted on a 
bipartisan basis to recognize this unique situation and to 
state that H.R. 1837 should not serve as precedent for any 
other State because no similar circumstance exists.
    The second title of the bill revolves around reforming the 
San Joaquin River Restoration Program, as authorized in Public 
Law 111-11. For decades, controversy has surrounded 
construction of the Friant Dam, which diverts San Joaquin River 
flows to provide much of the water for the Friant Division of 
the CVP. The Friant Division provides irrigation and municipal 
water to farms and communities along the southern San Joaquin 
Valley's east side.
    In 1987, the Friant water users started to negotiate the 
renewal of their water contracts with the federal government. 
In December 1988, the Natural Resources Defense Council (NRDC) 
and a coalition of conservation and fishing groups filed 
Natural Resources Defense Council, et al. vs. Kirk Rodgers, et 
al. to challenge the contract renewals. Subsequent amendments 
to the lawsuit alleged that Reclamation violated California 
Fish and Game Code Section 5937, the National Environmental 
Protection Act (NEPA), and the ESA. Section 5937 of Public Law 
111-11 requires dam owners to ``allow sufficient water to pass 
over, around or through the dam, to keep in good condition any 
fish that may be planted or exist below the dam.'' In August 
2004 and July 2005, a federal District Court judge ruled in 
NRDC's favor, finding that Reclamation violated Section 5937.
    A new series of settlement negotiations began, with 
negotiating parties agreeing on a final settlement on June 30, 
2006. After three years of heated disputes regarding the merits 
of the settlement, the 111th Congress codified the settlement 
agreement and directed Reclamation to carry out certain 
activities in the settlement: (1) restoring the dry part of the 
San Joaquin River through a series of interim and permanent 
flows that divert, on average, more than 200,000 acre feet per 
year from farms to fish; (2) re-introducing an ``experimental'' 
population of Chinook salmon into the river; and (3) mitigating 
water user impacts associated with river restoration and salmon 
re-introduction. At the time of enactment of this settlement, 
the Congressional Budget Office estimated that the law and 
settlement agreement would increase net direct spending by $190 
million over the 2009-2018 period and $200 million over the 
2019-2040 period. In addition, implementation would increase 
discretionary spending by $271 million over the 2009-2018 
period. Most water users estimate that the program will cost 
around $1.2 billion over twenty years. Title II of H.R. 1837 
substantially reforms this program and eliminates all 
authorized federal appropriation amounts while still allowing 
flows for a warm water fishery.
    The third title of the bill creates a mechanism for CVP 
water users to convert their water service contracts to capital 
repayment contracts. Under a CVP water service contract, a 
water user pays for only the water allocated and delivered, 
whereas a capital repayment contract is for the cost of the 
water and the appropriate facility (capital) being used to 
store and convey the water. When the CVP water user enters a 
capital repayment contract in H.R. 1837, the water user has the 
ability to pay off that contract early to the federal 
government. That early payment increases short-term revenue to 
the U.S. Treasury, but also releases the water user from 
acreage and pricing limitations imposed under the Reclamation 
Reform Act of 1982 (Public Law 97-293). This will allow farmers 
to put more acreage in production when they have water supplied 
under the bill. This provision is nearly identical to 
prepayment provisions in the San Joaquin River Settlement Act 
(Public Law 111-11).
    The bill, as amended at Committee, now includes a fourth 
title. This title is intended to ensure that other titles of 
the legislation will not have unintended consequences on other 
water rights holders and to protect private property rights 
established under California law. These provisions will give 
northern California's water rights holders unprecedented 
protections at the federal level.
    The Committee also added a fifth title to the bill during 
markup. This title includes a provision describing the unique 
situation of the CVP and SWP coordination and existing 
preemption while stating that nothing in the Act shall serve as 
a precedent in another State.

                            Committee Action

    H.R. 1837 was introduced on May 11, 2011, by Congressman 
Devin Nunes (R-CA). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water and Power. On June 2, 2011 and June 13, 2011, the 
Subcommittee held hearings on the bill. On February 16, 2012, 
the Full Natural Resources Committee met to consider the bill. 
The Subcommittee on Water and Power was discharged by unanimous 
consent. Congressman Tom McClintock (R-CA) offered an amendment 
in the nature of a substitute to the bill. Congresswoman Grace 
Napolitano (D-CA) offered amendment designated .014 to the 
amendment in the nature of a substitute; the amendment was not 
adopted by a bipartisan roll call vote of 17 to 27, as follows:



    Congressman Scott Tipton (R-CO) offered amendment 
designated .004 to the amendment in the nature of a substitute; 
the amendment was adopted by a bipartisan roll call vote of 31 
to 13, as follows:



    Congresswoman Grace Napolitano (D-CA) offered amendment 
designated .003 to the amendment in the nature of a substitute; 
the amendment was not adopted by a bipartisan roll call vote of 
17 to 27, as follows:



    Congressman Jim Costa (D-CA) offered amendment designated 
.008 to the amendment in the nature of a substitute; the 
amendment was withdrawn. Congressman John Garamendi (D-CA) 
offered amendment designated .002 to the amendment in the 
nature of a substitute; the amendment was not adopted by voice 
vote. Congressman Garamendi offered amendment designated .077 
to the amendment in the nature of a substitute; the amendment 
was not adopted by voice vote. Congressman Garamendi offered 
amendment designated .079 to the amendment in the nature of a 
substitute; the amendment was not adopted by voice vote. 
Congressman Garamendi offered amendment designated .082 to the 
amendment in the nature of a substitute; the amendment was not 
adopted by a bipartisan roll call vote of 17 to 27, as follows:



    Congressman Garamendi offered amendment designated .083 to 
the amendment in the nature of a substitute. Congressman Jeff 
Denham (R-CA) offered a substitute amendment to the Garamendi 
amendment designated .083; the Denham amendment was adopted by 
a bipartisan roll call vote of 27 to 17, as follows:



    The amendment offered by Congressman Garamendi designated 
.083, as amended by the Denham substitute amendment, was 
adopted by voice vote. Congressman Garamendi offered amendment 
designated .084 to the amendment in the nature of a substitute; 
the amendment was not adopted by a bipartisan roll call vote of 
17 to 27, as follows:



    Congressman Garamendi offered amendment designated .085 to 
the amendment in the nature of a substitute; the amendment was 
not adopted by voice vote. Congressman Garamendi offered 
amendment designated .086 to the amendment in the nature of a 
substitute; the amendment was not adopted by a bipartisan roll 
call of 17 to 27, as follows:



    The McClintock amendment in the nature of a substitute, as 
amended, was adopted by voice vote. The bill, as amended, was 
then adopted and ordered favorably reported to the House of 
Representatives by a bipartisan roll call vote of 27 to 17, as 
follows:



                      Section-by-Section Analysis


Section 1. Short title

    This section, as amended, cites the bill as the 
``Sacramento-San Joaquin Valley Water Reliability Act.''

Section 2. Table of contents

           TITLE I--CENTRAL VALLEY PROJECT WATER RELIABILITY

Section 101. Amendment to purposes

    This section amends Section 3402 of the Central Valley 
Project Improvement Act (CVPIA, Public Law 102-575) by adding 
two new purposes to the CVPIA. These new purposes include the 
replacement of water dedicated to fish and wildlife purposes by 
the year 2016 at a reasonably low cost and to facilitate and 
expedite water transfers. The intent of this section is to 
reaffirm that 800,000 acre feet of water re-allocated annually 
from farms to fish and wildlife will be replaced for those 
farmers and that water transfers between willing sellers within 
the Central Valley of California are purposes to help meet 
water demand during drought.

Section 102. Amendment to definition

    This section amends Section 3403 of the CVPIA to prioritize 
restoration on native fish species (salmon, steelhead and 
sturgeon) in the Sacramento and San Joaquin Rivers as of 
October 30, 1992, by removing non-native American shad and 
striped bass from the definition of ``anadromous fish.'' It 
further adds the definition of ``reasonable flows'' to provide 
the Secretary of the Interior (Secretary) guidance when making 
decisions on ``reasonable'' levels of environmental flows.

Section 103. Contracts

    This section amends Section 3404 of the CVPIA to allow for 
40-year renewal of existing Central Valley Project (CVP) long-
term water user contracts with the Bureau of Reclamation 
(Reclamation) and retains the existing CVPIA provision 
requiring that contracts shall include a provision to charge 
such water users only for water actually delivered. The current 
contractual term is 25 years, under the CVPIA. The intent of 
Section 103 is to return the contractual duration back to the 
40-year term allowed for in similar water user contracts with 
Reclamation throughout the western United States.

Section 104. Water transfers, improved water management, and 
        conservation

    This section generally seeks to streamline the process for 
willing seller-based water transfers while giving water users 
in the originating water basin the rights to approve and modify 
such transfers. The section amends Section 3405(a) of the CVPIA 
to add that the water district of origin or the Secretary shall 
determine whether a transfer proposal is complete within 45 
days of submission and, in addition, shall specify what must be 
added or revised to complete the transfer proposal. The 
provision further delineates that the Secretary shall not 
impose mitigation or other requirements on a proposed transfer, 
but the water district of origin shall retain authority to 
approve or condition a proposed transfer as provided under 
state law.
    This section also amends Section 3405(a) of CVPIA to 
clarify that transfers, exchanges and water banking 
arrangements among CVP water users which could have been 
conducted prior to the enactment of the CVPIA may still take 
place and are not subject to the CVPIA, which imposed a super-
structure of regulations on existing and future water 
transfers.
    This section also amends Section 3405(b) of the CVPIA to 
clarify the obligation to measure surface water deliveries by 
deleting the word ``metering'' and replacing it with 
``measurement.'' This change is intended to require all CVP 
water users to ensure that all water delivery systems are 
equipped with devices or methods to measure the monthly volume 
of surface water delivered within its boundaries and specifies 
the area of surface water that must be measured.
    This section deletes Section 3405(d) of the CVPIA, which 
required ``tiered pricing'' provisions in CVP water service 
contracts. This deletion is intended to provide incentives for 
water users to buy and conserve transferred water and bank such 
water in groundwater basins to help overcome drought and 
provide water for wildlife uses.

Section 105. Fish, wildlife, and habitat restoration

    This section amends Section 3406(b)(1)(B) of the CVPIA to 
provide reasonable flows to restore anadromous fish production 
in the Central Valley. This section also amends Section 
3406(b)(2) of the CVPIA to affirm that the management of 
800,000 acre-feet of CVP water for fish, wildlife and habitat 
purposes is a ceiling, rather than a floor, on the amount of 
water re-allocated from water users. The section reauthorizes 
and directs reuse or diversion of any part of the 800,000 acre-
feet to agriculture or municipal and industrial purposes after 
it has fulfilled its fish and wildlife purposes. It further 
authorizes that, if by March 15th of any year, the water 
allocation for the Delta Division of the CVP is below 75 
percent, then the 800,000 acre-feet mandate is reduced by 25 
percent. The section adds new Section 3406(i) to the CVPIA to 
clarify that by pursuing the specific mitigation projects, 
programs and activities authorized by this section, the 
Secretary shall be deemed to have met the mitigation, 
protection, restoration and enhancement purposes established in 
CVPIA.

Section 106. Restoration Fund

    This section generally changes the CVP Restoration Fund 
(Fund), which was created as an environmental mitigation fund 
financed by water and power users under the CVPIA. This section 
deletes references to specific Fund activities that have 
already been accomplished or outdated. This section also adds a 
new provision to Section 3407(a)(2) to the CVPIA to prohibit 
the Secretary from requiring donations to the Fund as a 
condition to contracting for storage or conveyance of non-CVP 
water pursuant to Reclamation laws. It also prohibits Fund 
charges on any water that is delivered with the sole intent of 
groundwater recharge. The section also amends Section 
3407(c)(1) of the CVPIA to make certain technical and 
conforming amendments to provide for assessment and collections 
into the Fund.
    This section also amends Section 3407(d)(2)(A) of the CVPIA 
by setting a Fund fee cap of $4 per megawatt-hour for CVP power 
sold to power users beginning on October 1, 2013. The intent of 
this provision is to provide cost certainty to power users that 
have experienced fluctuations in Fund charges. Such cost 
certainties already exist for water users. The amendment also 
reduces the amount of overall annual CVP Restoration Funds from 
$50 million to $35 million a year beginning after December 31, 
2020.
    This section adds Section 3407(g) to the CVPIA to direct 
the Secretary, in consultation with the Restoration Fund 
Advisory Board created in Section 3407(h), to submit to 
Congress a report outlining the proposed expenditure of the 
Restoration Funds deposited in the preceding year and 
describing why that plan provides optimum benefits.
    This section also adds Section 3407(h) to the CVPIA to 
create a Restoration Fund Advisory Board composed of twelve 
members selected by the Secretary. The board members serve 
four-year terms and consist of four CVP agricultural users, 
three CVP municipal and industrial users, three CVP power 
contractors, and two at the discretion of the Secretary. The 
Secretaries of the Interior and Commerce may also each 
designate a representative to act as an observer. The duties of 
the Advisory Board are to make recommendations, annually, to 
the Secretary regarding priorities and spending levels on 
projects and programs carried out pursuant to the CVPIA and to 
report to Congress biennially on the progress made to achieve 
the goals for the Fund as identified in Section 3406 of the 
CVPIA.

Section 107. Additional authorities

    This section amends Section 3408(c) of the CVPIA by 
striking ``non-profit,'' thereby expanding the authority of the 
Secretary to enter into conveyance, storage and similar 
contracts with all private entities; directs the Secretary to 
use authority granted in this subsection to exchange, impound, 
store, carry or deliver non-project water using CVP facilities; 
and stipulates that nothing in the section shall supersede the 
provisions of Section 103 of Public Law 99-546, commonly 
referred to as the Coordinated Operations Agreement between the 
federal government and the State of California.
    This section also amends Section 3408(f) of the CVPIA by 
striking out ``Interior and Insular Affairs and Merchant Marine 
and Fisheries'' and inserting in lieu thereof ``Natural 
Resources,'' requires the reporting of progress on the plan 
required by subsection (j) (project yield increase), and 
requires the Mid-Pacific Regional Director of the Bureau of 
Reclamation to certify required annual reports.
    This section also amends Section 3408(j) of the CVPIA by 
requiring the Secretary to develop and implement a plan to 
replace the 800,000 acre-feet of water dedicated to fish and 
wildlife by establishing a plan to increase (by no later than 
2016) the yield of the CVP. The section also requires that the 
plan include recommendations on appropriate cost-sharing and 
requires that the dedication of the 800,000 acre-feet for fish, 
wildlife and habitat purposes be suspended until the plan 
achieves an increase in the annual delivery capability of the 
CVP by 800,000 acre-feet.
    This section, as amended, also authorizes the Secretary to 
partner with local joint powers authorities to advance surface 
water storage project studies authorized in Public Law 108-361. 
The section makes it specific that federal funding is not 
authorized for such partnerships and is intended to utilize 
non-federal funding, expertise and efficiencies to advance such 
studies. However, nothing in the provision is intended to 
prohibit such ongoing studies from moving forward with or 
without the partnerships. The section also authorizes each 
water storage project for construction if non-federal funds are 
used for financing and constructing each project. This 
provision is intended to facilitate construction of each 
project in a manner like how Reclamation's water recycling and 
rural water projects are authorized for construction.

Section 108. Bay-Delta Accord

    This section intends to restore operational flexibility for 
California's two major water projects and restore water to 
farmers while protecting senior water rights holders and other 
northern California water users from any potential, unintended 
impacts. The section directs the CVP and the State Water 
Project (SWP) to be operated in a manner consistent with the 
``Principles for Agreement on the Bay-Delta Standards Between 
the State of California and the Federal Government'' (known as 
the Bay-Delta Accord of 1994). This language codifies the Bay-
Delta Accord's flows as it relates to the CVP and prevents the 
State of California from imposing further flow reductions to 
ensure the Bay-Delta Accord commitments. This provision is 
warranted given the coordinated operations between the CVP and 
SWP pursuant to Public Law 99-546, a preemption sought by the 
State of California. The Committee believes that this 
circumstance is unique and does not serve as a precedent since 
there is no such similar situation in any other State. This 
section ensures that implementation of the Bay-Delta Accord 
shall be in strict compliance with the water rights priority 
system and statutory protections for areas of origin. 
Subsection (b) further protects property rights established 
under state law by prohibiting the federal government or the 
State of California from imposing restrictions on pre-1914 and 
other water rights holders. Subsection (c) prohibits the State 
of California from imposing restrictions on the ``take'' of any 
non-native fish that preys on one or more native fish species 
in the Sacramento and San Joaquin Rivers and their tributaries 
or the Sacramento/San Joaquin Bay Delta.

Section 109. Natural and artificially spawned species

    This section specifically directs the Secretaries of the 
Interior and Commerce to not distinguish between natural-
spawned and hatchery-spawned species when making any 
determinations under the Endangered Species Act (ESA) that 
relate to anadromous fish in the Sacramento and San Joaquin 
Rivers and their tributaries.

Section 110. Authorized service area

    This section adds the Kettleman City Community Services 
District as a new authorized service area of the CVP. This 
section authorizes the Secretary to enter into a long-term 
contract, in accordance with Reclamation laws, for the delivery 
of up to 900 acre-feet of CVP water for municipal and 
industrial use. The Secretary can reduce deliveries by 25 
percent if restrictions are imposed on agricultural deliveries. 
As amended, this section ensures that any infrastructure or 
other costs related to this section are borne by Kettleman 
City.

Section 111. Regulatory streamlining

    This section seeks to streamline federal and State of 
California environmental permitting regulations. It declares 
that a Notice of Determination or a Notice of Exemption 
prepared pursuant to the California Environmental Quality Act 
(CEQA) for a project or issuance of a permit related to a CVP 
water project will satisfy the requirements of the National 
Environmental Policy Act (NEPA). The section allows Reclamation 
to proceed with activities on a CVP project if there is a 
pending legal challenge to the Notice of Determination. The 
section defines the project as being part of the CVP and having 
the following qualities: an action being undertaken by a public 
agency or that requires a issuance of a permit by a public 
agency, has potential to result in a physical change of the 
environment, and may be subject to discretionary approvals by 
government agencies. The definition further includes, but is 
not limited to, construction activities, clearing or grading of 
land, improvements to existing structures, activities or 
equipment involving the issuance of a permit, and proposals and 
activities defined as a project by the State of California 
under CEQA.

                TITLE II--SAN JOAQUIN RIVER RESTORATION

Section 201. Repeal of the San Joaquin River Settlement

    This section requires the Secretary to cease any action 
related to the implementation of the Stipulation of Settlement 
filed in federal court of the Eastern District of California in 
Natural Resources Defense Council, et al. v. Kirk Rodgers, et 
al., Eastern District of California (No. Civ. S-88-1658 LKK/
GHH).

Section 202. Purpose

    This section amends Section 10002 of Public Law 111-11 by 
striking the words ``implementation of the Settlement'' and 
replacing it with ``restoration of the San Joaquin River.'' By 
doing so, this section changes the purpose of the law to end 
the Settlement and replace it with a warm water fishery 
restoration with the intent of saving water for local farmers 
while creating a more viable fishery.

Section 203. Definitions

    The section amends Section 10003 of Public Law 111-11 by 
striking the terms ``Friant Division long-term contractors'', 
``Interim Flows'', ``Restoration Flows'', ``Recovered Water 
Account'', ``Restoration Goal'', ``Water Management Goal'', and 
``Settlement.''
    The section also adds the following definitions to Section 
10003 of Public Law 111-11: ``Restoration Flows'' means 
additional water released from Friant Dam to ensure a target 
flow entering Mendota Pool does not fall below 50 cubic feet 
per second; ``Water Year'' means March 1 through the last day 
of February of the following Calendar Year; and ``Critical 
Water Year'' is defined as when total unimpaired runoff at 
Friant Dam is less than 400,000 acre feet.

Section 204. Implementation of restoration

    This section amends Section 10004 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement'' and directs the Secretary, 
beginning in March 2013, to modify Friant Dam operations to 
release ``Restoration Flows'' in every year except a ``Critical 
Water Year'' in a manner that improves the fishery in the San 
Joaquin River between Friant Dam and Gravelly Ford. The section 
further authorizes the Secretary to, within one year of 
enactment, develop and implement a plan to fully re-circulate, 
recapture, reuse, exchange or transfer all ``Restoration 
Flows.'' The Secretary is further directed to address any 
impact on groundwater resources within the Friant service area 
and stipulates that mitigation may include groundwater banking 
and recharge projects.
    This section also directs the Secretary to: identify the 
impacts associated with the release of Restoration Flows 
prescribed in Public Law 111-11; identify measures necessary to 
mitigate impacts on downstream landowners as a result of 
Restoration Flows as prescribed in this title; and fully 
implement such measures before Restoration Flows begin. This 
section also clarifies that Reclamation must follow a claims 
process to reimburse current and future claims from groundwater 
seepage, flooding or levee instability damages caused as a 
result of Restoration Flows prescribed in Public Law 111-11. 
The Committee believes that the agency already has such 
authority to provide for such claims; however, this provision 
is intended to ensure that the agency follows this process.
    This section declares that, notwithstanding Section 8 of 
the Reclamation Act of 1902 and Title IV of H.R. 1837, the 
title preempts and supersedes any State law, regulation or 
requirement that imposes more restrictive requirements or 
regulations on the activities under this title. This provision 
is intended to preempt the State of California's Fish and Game 
Code Section 5937, which was used as the legal basis to sue the 
federal government and water users receiving water from the 
Friant Division on the San Joaquin River. Section 5937 states: 
``The owner of any dam shall allow sufficient water at all 
times to pass through a fishway, or in the absence of a 
fishway, allow sufficient water to pass over, around or through 
the dam, to keep in good condition any fish that may be planted 
or exist below the dam.'' This provision further declares that 
the Friant Division, Hidden Unit, and Buchanan Unit of the CVP 
shall comply with orders issued by the State Water Resources 
Control Board pursuant to the Porter-Cologne Water Quality 
Control Act provided that such orders are consistent with the 
Congressional authorization for any affected federal 
facilities.
    The section further directs the Secretary to phase-in each 
project to implement this title in the following order: 
identify project purpose and need, identify mitigation 
measures, conduct environmental review, and complete project.

Section 205. Disposal of property; title to facilities

    This section amends Section 10005 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement'' and strikes the federal 
authorization to use eminent domain.

Section 206. Compliance with applicable law

    This section amends Section 10006 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement.''

Section 207. Compliance with Central Valley Project Improvement Act

    This section amends Section 10007 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement.'' This section also 
declares that implementation under this title satisfies federal 
obligations under Section 5937 of the California Fish and Game 
Code.

Section 208. No private right of action

    This section amends Section 10008 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement.'' The section also affirms 
that nothing shall confer on anyone a private right of action 
or claim for relief to interpret or enforce the provisions of 
Section 10004(a)(3) (except for contractors within Friant 
Division, Hidden Unit, or Buchanan Unit).

Section 209. Implementation

    This section amends Section 10009 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement''. The section also strikes 
$250 million in authorized federal funding, descriptive 
language concerning levels of funding, limitations on 
contributions, and the Reach 4B study.

Section 210. Repayment contracts and acceleration of repayment of 
        construction costs

    This section amends Section 10010 of Public Law 111-11 by 
striking the word ``Settlement,'' the word ``Interim Flows,'' 
the word ``Water Management Goal,'' and references to the 
``Settlement.''

Section 211. Repeal

    This section repeals Section 10011 (Salmon Restoration 
Program) of Public Law 111-11.

Section 212. Water supply mitigation

    This section amends Section 10202 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement.''

Section 213. Additional authorities

    This section amends Section 10203 of Public Law 111-11 by 
striking all language that references or directs the 
implementation of the ``Settlement'' and striking $50 million 
in authorized federal funding.

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

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

    This section allows CVP water users to pre-pay their share 
of the capital construction costs of the CVP. The provision is 
based on nearly identical authorizing language in the San 
Joaquin River Restoration program (Public Law 111-11). The 
section specifically directs the Secretary, upon the request of 
a water contractor, to convert a long-term CVP contract entered 
into under subsection 9(e) of the Reclamation Project Act of 
1939 into contracts under subsection 9(d) of the same law. It 
also authorizes the Secretary, upon the request of the 
contractor, to convert a long-term CVP contract entered into 
under subsection 9(c)(2) of the Reclamation Project Act of 1939 
into a contract under subsection 9(c)(1) of the same law. A 
contractor who chooses to convert shall be required to, either 
in lump sum or accelerated prepayment, pay the remaining 
balance of construction at a Treasury rate discount. In return 
for pre-paying such contractual obligations to the federal 
government, pricing and acreage limitations of federal 
reclamation law shall no longer apply to the water contractors. 
The section stipulates that any capital costs that have been 
incurred after the date of conversion will be repaid either 
within five years of being incurred or later, depending on the 
amount.

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

Section 401. Water rights and area-of-origin protections

    This section directs the Secretary, in the operation of the 
CVP, to strictly adhere to state water rights laws and 
priorities and to honor water rights senior to those held by 
the CVP. This section further directs the Secretary to strictly 
adhere to and honor water rights and priorities that were 
obtained or existed pursuant to various sections of California 
Water Code and ensures that the federal ESA is implemented in a 
manner that honors the priorities delineated in this section.

Section 402. Sacramento River Settlement Contracts

    This section directs the Secretary to apply any ESA 
limitations (as they relate to the operation of the CVP) 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. It also 
ensures that Article 3(i) of the Sacramento River Settlement 
Contracts shall not be utilized as a means to provide water 
shortages that are different than those provided for in Article 
5(a)16 of those contracts. This section is intended to fulfill 
the contractual commitments the federal government made with 
the Sacramento River Settlement Contractors, who have water 
rights pre-dating the creation of the CVP.

Section 403. Sacramento River watershed water service contractors

    This section directs the Secretary to provide certain 
amounts of water to Sacramento Valley water service contractors 
who receive water from the CVP. Subject to the absolute 
priority of Sacramento River Settlement Contractors, subsection 
(a) directs the Secretary to allocate water provided for 
irrigation purposes to existing CVP agricultural water service 
contractors within the Sacramento River Watershed in the 
following order: not less than 100 percent of their contract 
quantities in a ``Wet,'' ``Above Normal,'' and ``Below Normal'' 
water year; not less than 75 percent of their contract 
quantities in a ``Dry'' water year; and, not less than 50 
percent of their contract quantities in a ``Critically Dry'' 
water year. The water years follow the Sacramento Valley Water 
Year Type (40-30-30) Index.
    Subsection (b) ensures that nothing in subsection (a) 
modifies any provision of a water service contract that 
addresses municipal and industrial water shortage policies of 
the Secretary, affects or limits the authority of the Secretary 
to adopt or modify municipal and industrial water shortage 
policies, affects or limits the authority of the Secretary to 
implement municipal and industrial water shortage policies, or 
affects allocations to CVP 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 
CVP's American River Division or any deliveries from that 
Division, its units or its facilities. The section defines 
``existing Central Valley Project agricultural water service 
contractors within the Sacramento River Watershed'' as 
contractors within the Shasta, Trinity, and Sacramento River 
Divisions of the CVP who have a water service contract in 
effect on the date of enactment of this Act.

Section 404. No redirected adverse impacts

    This section directs the Secretary to ensure there are no 
redirected adverse water supply or fiscal impacts to those 
within the Sacramento River watershed, or to the SWP, arising 
from the Secretary's operation of the CVP to meet legal 
obligations imposed by state or federal agencies or actions 
implemented to meet the twin goals of improving water supply 
and environmental needs of the Bay-Delta.

                         TITLE V--MISCELLANEOUS

Section 501. Precedent

    In this section, Congress finds and declares that 
coordinated operations between the CVP and the SWP, based on 
the State of California's request and consented to by the 
federal government, requires assertion of federal supremacy to 
protect existing water rights throughout the system and that 
these circumstances are unique to California. As a result, the 
section declares that nothing in this Act shall serve as 
precedent in any other State.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(2)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974. Under clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
403 of the Congressional Budget Act of 1974, the Committee has 
received the following cost estimate for this bill from the 
Director of the Congressional Budget Office:

H.R. 1837--Sacramento-San Joaquin Valley Water Reliability Act

    Summary: H.R. 1837 would amend the Central Valley Project 
Improvement Act (CVPIA) and the San Joaquin River Restoration 
Settlement Act to change water management plans and 
environmental restoration goals for the Central Valley region 
in central California.
    Based on information from the Bureau of Reclamation and 
local water districts in California, CBO and staff of the Joint 
Committee on Taxation (JCT) estimate that enacting the bill 
would increase offsetting receipts (a credit against direct 
spending) by $254 million and decrease revenues by $33 million 
over the 2013-2022 period. Together, those changes would reduce 
future budget deficits by $221 million over the next 10 years, 
CBO estimates. Because the legislation would affect direct 
spending and revenues, pay-as-you-go procedures apply.
    In addition, CBO estimates that implementing the 
legislation would reduce discretionary spending for restoration 
activities associated with the San Joaquin River by $190 
million over the 2013-2017 period, assuming appropriation 
actions consistent with the authorization levels in the bill.
    H.R. 1837 would impose intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act (UMRA) by 
preempting state laws and requiring or prohibiting some 
activities related to water management and wildlife 
preservation. Based on information from state and local 
agencies, CBO estimates that the cost for the state of 
California to comply with those mandates would not exceed the 
annual thresholds established in UMRA ($73 million in 2012, 
adjusted annually for inflation). The legislation contains no 
private-sector mandates.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1837 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year, in millions of dollars--
                                                --------------------------------------------------------------------------------------------------------
                                                    2013     2014    2015    2016    2017    2018    2019    2020    2021    2022   2013-2017  2013-2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Title II--San Joaquin River Restoration:
    Estimated Authorization Level..............          0     -50     -50     -50     -50     -50     -50       0       0       0       -200       -300
    Estimated Outlays..........................          0     -40     -50     -50     -50     -50     -50     -10       0       0       -190       -300

                                                               CHANGES IN DIRECT SPENDING

Title III--Early Repayment of Capital Debt:
    Estimated Budget Authority.................       -232     -24     -24     -24      10      10      10      10      10      10       -294       -244
    Estimated Outlays..........................       -232     -24     -24     -24      10      10      10      10      10      10       -294       -244
Title I--Central Valley Project Reliability
 Act:
    Estimated Budget Authority.................         -1      -1      -1      -1      -1      -1      -1      -1      -1      -1         -5        -10
    Estimated Outlays..........................         -1      -1      -1      -1      -1      -1      -1      -1      -1      -1         -5        -10
    Total Changes:
        Estimated Budget Authority.............       -233     -25     -25     -25       9       9       9       9       9       9       -299       -254
        Estimated Outlays......................       -233     -25     -25     -25       9       9       9       9       9       9       -299       -254

                                                                   CHANGES IN REVENUES

Estimated Revenuesa............................          *      -2      -3      -3      -4      -4      -4      -4      -4      -4        -13        -33

                                NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
Change in Deficit..............................       -233     -23     -22     -22      13      13      13      13      13      13       -286      -221
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding; * = revenue loss of less than $500,000.
aFor revenues, negative numbers indicate an increase in the deficit. Estimate prepared by staff of the Joint Committee on Taxation.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1837 will be enacted in fiscal year 2012. The bill would 
deauthorize $300 million originally authorized to be 
appropriated for implementation of the San Joaquin River 
Restoration Settlement Act.
    CBO estimates that enacting the bill would increase 
offsetting receipts (a credit against direct spending) by $254 
million over the 2013-2022 period. Additionally, staff of the 
Joint Committee on Taxation estimates that the legislation 
would lead to a decrease in revenues of $33 million over the 
2013-2022 period. Together, those changes in direct spending 
and revenues would reduce future budget deficits by $221 
million, CBO estimates.

Spending subject to appropriation

    Title II would require the bureau to cease all planning and 
construction activities necessary to implement the San Joaquin 
River Restoration Settlement Act (title X of Public Law 111-
11). That act requires the bureau to restore about 153 miles of 
the San Joaquin River by improving channels and structures for 
the purpose of improving water flow and fish habitat and 
passage. Title II would replace those objectives with a 
different restoration program that would require the bureau to 
restore about 65 miles of the river and ensure certain minimum 
river flows. The bill also would deauthorize the salmon 
restoration program authorized in the San Joaquin River 
Restoration Settlement Act. Finally, the bill would deauthorize 
$300 million originally authorized to be appropriated for 
restoration activities in the San Joaquin River Restoration 
Settlement Act. CBO expects that those funds will be provided 
in equal increments of $50 million annually beginning in 2014. 
Based on that anticipated spending pattern, CBO estimates that 
H.R. 1837 would lead to a discretionary savings for San Joaquin 
restoration activities of $190 million over the 2013-2017 
period and $300 million over the 2013-2022 period, assuming 
appropriation actions consistent with the bill.

Direct spending and revenues

    Repayment Contracts and Acceleration of Repayment of 
Construction Costs. Title III would authorize the bureau to 
convert water service contracts in the Central Valley Project 
(CVP) to repayment contracts if the contractor requests it. 
Under a repayment contract, the CVP customers would be required 
to accelerate the repayment of their share of the capital 
investment in the project. Water contractors could choose to 
pay the present value of their future contract payments 
(discounted at the 20-year constant maturity Treasury rate), 
either in one lump sum by January 31, 2013, or in equal 
installments by January 31, 2016. Based on the participation 
rates of water contractors in a similar program recently 
offered to contractors in CVP's Friant Division, CBO expects 
that a majority of CVP contractors would choose the lump-sum 
option. CBO estimates that the government would receive net 
accelerated payments from the contractors of $244 million over 
the 2013-2022 period. Over the 2022-2030 period, payments of 
$420 million would no longer be made under the bill's option to 
prepay contracts, CBO estimates.
    CBO expects that those accelerated payments to the federal 
government would be financed with bonds exempt from federal 
taxation, which the staff of the Joint Committee on Taxation 
estimates would lead to a revenue loss of $33 million over the 
next 10 years.
    Central Valley Project Water Reliability. Title I would 
amend the Central Valley Project Improvement Act (Public Law 
102-575) by changing several management features of the 
project. The bill would require the bureau to adhere to a 
specified timeline when reviewing requests to transfer water 
among Central Valley Project contractors. Under the bill, 
certain water transfers would be deemed to have met the 
requirements of some environmental laws. CBO expects that those 
provisions and other changes in the bill would lead to more 
water transfers among contractors than expected under current 
law. We estimate that those additional transfers and other 
changes would result in additional offsetting receipts of $1 
million annually because water use would increase.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

        CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1837 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON FEBRUARY 16, 2012
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2012    2013    2014    2015    2016    2017    2018    2019    2020    2021    2022   2012-2017  2012-2022
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact............      0     -233     -23     -22     -22      13      13      13      13      13      13      -286       -221
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on State, Local, and Tribal Governments: 
H.R. 1837 would impose intergovernmental mandates as defined in 
UMRA by preempting state laws and requiring or prohibiting some 
activities related to water management and wildlife 
preservation. The bill would require the state of California to 
change how it manages a state system for storing and delivering 
water. It also would prohibit the state from restricting 
existing water rights in an effort to protect any species 
affected by the operations of the water projects in the state. 
Similarly, it would prohibit restrictions on water rights that 
are designed to protect, enhance, or restore the value of 
public water resources. Finally, the bill would preempt several 
other state laws related to water management and wildlife 
preservation. Based on information from state and local 
agencies, CBO estimates that the cost for the state to comply 
with those mandates would not exceed the annual thresholds 
established in UMRA ($73 million in 2012, adjusted annually for 
inflation).
    Estimated impact on the private sector: The bill contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Aurora Swanson; Impact 
on state, local, and tribal governments: Melissa Merrell; 
Impact on the private sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.
    2. Section 308(a) of Congressional Budget Act. As required 
by clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives and section 308(a) of the Congressional Budget 
Act of 1974, this bill does not contain any new budget 
authority, credit authority, or an increase or decrease in tax 
expenditures. Based on information from the Bureau of 
Reclamation and local water districts in California, CBO and 
staff of the Joint Committee on Taxation (JCT) estimate that 
enacting the bill would increase offsetting receipts (a credit 
against direct spending) by $254 million and decrease revenues 
by $33 million over the 2013-2022 period. Together, those 
changes would reduce future budget deficits by $221 million 
over the next 10 years, CBO estimates. Because the legislation 
would affect direct spending and revenues, pay-as-you-go 
procedures apply.
    In addition, CBO estimates that implementing the 
legislation would reduce discretionary spending for restoration 
activities associated with the San Joaquin River by $190 
million over the 2013-2017 period, assuming appropriation 
actions consistent with the authorization levels in the bill.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill, as ordered reported, is to address 
certain water-related concerns on the San Joaquin River.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates as defined under 
Public Law 104-4.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any local or tribal 
law. The bill preempts and supersedes certain California water 
and environmental laws, regulations or requirements that impose 
more restrictive requirements or regulations on the activities 
under the bill.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                 CENTRAL VALLEY PROJECT IMPROVEMENT ACT

TITLE XXXIV--CENTRAL VALLEY PROJECT IMPROVEMENT ACT

           *       *       *       *       *       *       *


SEC. 3402. PURPOSES.

  The purposes of this title shall be--
          (a) * * *

           *       *       *       *       *       *       *

          (f) to achieve a reasonable balance among competing 
        demands for use of Central Valley Project water, 
        including the requirements of fish and wildlife, 
        agricultural, municipal and industrial and power 
        contractors[.]
          (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. 3403. DEFINITIONS.

  As used in this title--
          [(a) the term ``anadromous fish'' means those stocks 
        of salmon (including steelhead), striped bass, 
        sturgeon, and American shad that ascend the Sacramento 
        and San Joaquin rivers and their tributaries and the 
        Sacramento-San Joaquin Delta to reproduce after 
        maturing in San Francisco Bay or the Pacific Ocean;]
          (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;

           *       *       *       *       *       *       *

          (l) the terms ``Restoration Fund'' and ``Fund'' mean 
        the Central Valley Project Restoration Fund established 
        by this title; [and,]
          (m) the term ``Secretary'' means the Secretary of the 
        Interior[.]; and
          (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. 3404. LIMITATION ON CONTRACTING AND CONTRACT REFORM.

  [(a) New Contracts.--Except as provided in subsection (b) of 
this section, the Secretary shall not enter into any new short-
term, temporary, or long-term contracts or agreements for water 
supply from the Central Valley Project for any purpose other 
than fish and wildlife before:
          [(1) the provisions of subsections 3406(b)-(d) of 
        this title are met;
          [(2) the California State Water Resources Control 
        Board concludes the review ordered by the California 
        Court of Appeals in United States v. State Water 
        Resources Control Board, 182 Cal. App. 3d 82 (1986) and 
        determines the means of implementing its decision, 
        including the obligations of the Central Valley 
        Project, if any, and the Administrator of the 
        Environmental Protection Agency shall have approved 
        such decision pursuant to existing authorities; and,
          [(3) at least one hundred and twenty days shall have 
        passed after the Secretary provides a report to the 
        Committee on Energy and Natural Resources of the Senate 
        and the Committee on Interior and Insular Affairs and 
        the Committee on Merchant Marine and Fisheries of the 
        House of Representatives explaining the obligations, if 
        any, of the Central Valley Project system, including 
        its component facilities and contracts, with regard to 
        achieving its responsibilities for the San Francisco 
        Bay/Sacramento-San Joaquin Delta Estuary as finally 
        established and approved by relevant State and Federal 
        authorities, and the impact of such obligations on 
        Central Valley Project operations, supplies, and 
        commitments.
  [(b) Exceptions to Limit on New Contracts.--The prohibition 
on execution of new contracts under subsection (a) of this 
section shall not apply to contracts executed pursuant to 
section 305 of Public Law 102-250 or section 206 of Public Law 
101-514 or to one-year contracts for delivery of surplus flood 
flows or contracts not to exceed two years in length for 
delivery of class II water in the Friant Unit. Notwithstanding 
the prohibition in the Energy and Water Development 
Appropriations Act of 1990, the Secretary is authorized, 
pursuant to section 203 of the Flood Control Act of 1962, to 
enter into a long-term contract in accordance with the 
Reclamation laws with the Tuolumne Regional Water District, 
California, for the delivery of water from the New Melones 
project to the county's water distribution system and a 
contract with the Secretary of Veteran Affairs to provide for 
the delivery in perpetuity of water from the project in 
quantities sufficient, but not to exceed 850 acre-feet per 
year, to meet the needs of the San Joaquin Valley National 
Cemetery, California.
  [(c) Renewal of Existing Long-Term Contracts.--
Notwithstanding the provisions of the Act of July 2, 1956 (70 
Stat. 483), the Secretary shall, upon request, renew any 
existing long-term repayment or water service contract for the 
delivery of water from the Central Valley Project for a period 
of twenty-five years and may renew such contracts for 
successive periods of up to 25 years each.
          [(1) No such renewals shall be authorized until 
        appropriate environmental review, including the 
        preparation of the environmental impact statement 
        required in section 3409 of this title, has been 
        completed. Contracts which expire prior to the 
        completion of the environmental impact statement 
        required by section 3409 may be renewed for an interim 
        period not to exceed three years in length, and for 
        successive interim periods of not more than two years 
        in length, until the environmental impact statement 
        required by section 3409 has been finally completed, at 
        which time such interim renewal contracts shall be 
        eligible for long-term renewal as provided above. Such 
        interim renewal contracts shall be modified to comply 
        with existing law, including provisions of this title. 
        With respect to all contracts renewed by the Secretary 
        since January 1, 1988, the Secretary shall incorporate 
        in said contracts a provision requiring payment of the 
        charge mandated in subsection 3406(c) and subsection 
        3407(b) of this title and all other modifications 
        needed to comply with existing law, including 
        provisions of this title. This title shall be deemed 
        ``applicable law'' as that term is used in Article 
        14(c) of contracts renewed by the Secretary since 
        January 1, 1988.
          [(2) Upon renewal of any long-term repayment or water 
        service contract providing for the delivery of water 
        from the Central Valley Project, the Secretary shall 
        incorporate all requirements imposed by existing law, 
        including provisions of this title, within such renewed 
        contracts. The Secretary shall also administer all 
        existing, new, and renewed contracts in conformance 
        with the requirements and goals of this title.
          [(3) In order to encourage early renewal of project 
        water contracts and facilitate timely implementation of 
        this title, the Secretary shall impose on existing 
        contractors an additional mitigation and restoration 
        payment of one and one-half times the annual mitigation 
        and restoration payment calculated under subsection 
        3407(d) of this title for every year starting October 
        1, 1997 or January 1 of the year following the year in 
        which the environmental impact statement required under 
        section 3409 is completed, whichever is sooner, and 
        ending on the effective date of the renewed contract 
        payable prior to the renewal of such contract, to be 
        covered to the Restoration Fund: Provided, however, 
        That this paragraph shall not apply to contracts 
        renewed after January 1, 1988, and prior to the date of 
        enactment of this title or, in the event the 
        environmental impact statement required by section 3409 
        is not completed by October 1, 1997, to any holder of a 
        contract in existence on the date of enactment of this 
        title who enters into a binding agreement with the 
        Secretary prior to October 1, 1997, to renew its 
        contract immediately upon completion of that 
        environmental impact statement, if such contract has 
        not expired prior to such date.]
  (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. 3405. WATER TRANSFERS, IMPROVED WATER MANAGEMENT AND CONSERVATION.

  (a) Water Transfers.--In order to assist California urban 
areas, agricultural water users, and others in meeting their 
future water needs, subject to the conditions and requirements 
of this subsection, all individuals or districts who receive 
Central Valley Project water under water service or repayment 
contracts, water rights settlement contracts or exchange 
contracts entered into prior to or after the date of enactment 
of this title are authorized to transfer all or a portion of 
the water subject to such contract to any other California 
water user or water agency, State or Federal agency, Indian 
tribe, or private nonprofit organization for project purposes 
or any purpose recognized as beneficial under applicable State 
law. 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. Except as provided herein, the terms of such 
transfers shall be set by mutual agreement between the 
transferee and the transferor.
          (1) Conditions for transfers.--All transfers to 
        Central Valley Project water authorized by this 
        subsection shall be subject to review and approval by 
        the Secretary under the conditions specified in this 
        subsection. Transfers involving more than 20 percent of 
        the Central Valley Project water subject to long-term 
        contract within any contracting district or agency 
        shall also be subject to review and approval by such 
        district or agency under the conditions specified in 
        this subsection:
                  (A) No transfer [to combination] or 
                combination of transfers authorized by this 
                subsection shall exceed, in any year, the 
                average annual quantity of water under contract 
                actually delivered to the contracting district 
                or agency during the last three years of normal 
                water delivery prior to the date of enactment 
                of this title.

           *       *       *       *       *       *       *

          (2) Review and approval of transfers.--All transfers 
        subject to review and approval under this subsection 
        shall be reviewed and approved in a manner consistent 
        with the following:
                  (A) * * *

           *       *       *       *       *       *       *

                  (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.

           *       *       *       *       *       *       *

          (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.
  (b) [Metering] Measurement of Water Use Required.--All 
Central Valley Project water service or repayment contracts for 
agricultural, municipal, or industrial purposes that are 
entered into, renewed, or amended under any provision of 
Federal Reclamation law after the date of enactment of this 
title, shall provide that the contracting district or agency 
shall ensure that all surface water delivery systems within its 
boundaries are equipped with water measuring devices or water 
measuring methods of comparable effectiveness acceptable to the 
Secretary within five years of the date of contract execution, 
amendment, or renewal, and that any new surface water delivery 
systems installed within its boundaries on or after the date of 
contract renewal are so equipped. 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. The contracting district or agency shall inform the 
Secretary and the State of California annually as to the 
monthly volume of surface water delivered within its 
boundaries.

           *       *       *       *       *       *       *

  [(d) Water Pricing Reform.--All Central Valley Project water 
service or repayment contracts for a term longer than three 
years for agricultural, municipal, or industrial purposes that 
are entered into, renewed, or amended under any provision of 
Federal Reclamation law after the date of enactment of this 
title shall provide that all project water subject to contract 
shall be made available to districts, agencies, and other 
contracting entities pursuant to a system of tiered water 
pricing. Such a system shall specify rates for each district, 
agency or entity based on an inverted block rate structure with 
the following provisions:
          [(1) the first rate tier shall apply to a quantity of 
        water up to 80 percent of the contract total and shall 
        not be less than the applicable contract rate;
          [(2) the second rate tier shall apply to that 
        quantity of water over 80 percent and under 90 percent 
        of the contract total and shall be at a level halfway 
        between the rates established under paragraphs (1) and 
        (3) of this subsection;
          [(3) the third rate tier shall apply to that quantity 
        of water over 90 percent of the contract total and 
        shall not be less than the full cost rate; and
          [(4) the Secretary shall charge contractors only for 
        water actually delivered.
The Secretary shall waive application of this subsection as it 
relates to any project water delivered to produce a crop which 
the Secretary determines will provide significant and 
quantifiable habitat values for waterfowl in fields where the 
water is used and the crops are produced: Provided, That such 
waiver shall apply only if such habitat values can be assured 
consistent with the purposes of this title through binding 
agreements executed with or approved by the Secretary.]
  [(e)] (d) Water Conservation Standards.--The Secretary shall 
establish and administer an office of Central Valley Project 
water conservation best management practices that shall, in 
consultation with the Secretary of Agriculture, the California 
Department of Water Resources, California academic 
institutions, and Central Valley Project water users, develop 
criteria for evaluating the adequacy of all water conservation 
plans developed by project contractors, including those plans 
required by section 210 of the Reclamation Reform Act of 1982.
          (1) * * *

           *       *       *       *       *       *       *

  [(f)] (e) Increased Revenues.--All revenues received by the 
Secretary [as a result of the increased repayment] that exceed 
the cost-of-service rates applicable to the delivery of water 
transferred from irrigation use to municipal and industrial use 
under subsection 3405(a) of this section[, and all increased 
revenues received by the Secretary as a result of the increased 
water prices established under subsection 3405(d) of this 
section,] shall be covered to the Restoration Fund.

SEC. 3406. FISH, WILDLIFE AND HABITAT RESTORATION.

  (a) * * *
  (b) Fish and Wildlife Restoration Activities.--The Secretary, 
immediately upon the enactment of this title, shall operate the 
Central Valley Project to meet all obligations under State and 
Federal law, including but not limited to the Federal 
Endangered Species Act, 16 U.S.C. 1531, et seq., and all 
decisions of the California State Water Resources Control Board 
establishing conditions on applicable licenses and permits for 
the project. The Secretary, in consultation with other State 
and Federal agencies, Indian tribes, and affected interests, is 
further authorized and directed to:
          (1) develop within three years of enactment and 
        implement a program which makes all reasonable efforts 
        to ensure that, by the year 2002, natural production of 
        anadromous fish in Central Valley rivers and streams 
        will be sustainable, on a long-term basis, at levels 
        not less than twice the average levels attained during 
        the period of 1967-1991; Provided, That this goal shall 
        not apply to the San Joaquin River between Friant Dam 
        and the Mendota Pool, for which a separate program is 
        authorized under subsection 3406(c) of this title; 
        Provided further, That the programs and activities 
        authorized by this section shall, when fully 
        implemented, be deemed to meet the mitigation, 
        protection, restoration, and enhancement purposes 
        established by subsection 3406(a) of this title; And 
        provided further, That in the course of developing and 
        implementing this program the Secretary shall make all 
        reasonable efforts consistent with the requirements of 
        this section to address other identified adverse 
        environmental impacts of the Central Valley Project not 
        specifically enumerated in this section.
                  (A) * * *
                  (B) As needed to achieve the goals of this 
                program, the Secretary [is authorized and 
                directed to] may modify Central Valley Project 
                operations to provide reasonable water flows of 
                suitable quality, quantity, and timing to 
                protect all life stages of [anadromous fish, 
                except that such] anadromous fish. Such flows 
                shall be provided from the quantity of water 
                dedicated to fish, wildlife, and habitat 
                restoration purposes under paragraph (2) of 
                this subsection; from the water supplies 
                acquired pursuant to paragraph (3) of this 
                subsection; and from other sources which do not 
                conflict with fulfillment of the Secretary's 
                remaining contractual obligations to provide 
                Central Valley Project water for other 
                authorized purposes. [Instream flow] Reasonable 
                instream flow needs for all Central Valley 
                Project controlled streams and rivers shall be 
                determined by the Secretary based on 
                recommendations of the United States Fish and 
                Wildlife Service and the National Marine 
                Fisheries Service after consultation with the 
                [California Department of Fish and Game] United 
                States Geological Survey.

           *       *       *       *       *       *       *

          (2) upon enactment of this title dedicate and manage 
        annually eight hundred thousand acre-feet of Central 
        Valley Project yield for the [primary purpose] purposes 
        of implementing the fish, wildlife, and habitat 
        restoration purposes and measures authorized by this 
        title; to assist the State of California in its efforts 
        to protect the waters of the San Francisco Bay/
        Sacramento-San Joaquin Delta Estuary; and to help to 
        meet such obligations as may be legally imposed upon 
        the Central Valley Project under State or Federal law 
        following the date of enactment of this title, 
        including [but not limited to] additional obligations 
        under the Federal Endangered Species Act. 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. For 
        the purpose of this section, the term ``Central Valley 
        Project yield'' means the delivery capability of the 
        Central Valley Project during the 1928-1934 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 at the 
        time of enactment of this title have been met.
                  (A) * * *

           *       *       *       *       *       *       *

                  [(C) The Secretary may temporarily reduce 
                deliveries of the quantity of water dedicated 
                under this paragraph up to 25 percent of such 
                total whenever reductions due to hydrologic 
                circumstances are imposed upon agricultural 
                deliveries of Central Valley Project water; 
                Provided, That such reductions shall not exceed 
                in percentage terms the reductions imposed on 
                agricultural service contractors; Provided 
                further, That nothing in this subsection or 
                subsection 3406(e) shall require the Secretary 
                to operate the project in a way that 
                jeopardizes human health or safety.]
                  (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.

           *       *       *       *       *       *       *

                          (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. 3407. RESTORATION FUND.

  (a) Restoration Fund Established.--(1) In general.--There is 
hereby established in the Treasury of the United States the 
``Central Valley Project Restoration Fund'' (hereafter 
``Restoration Fund'') which shall be available for deposit of 
donations from any source and revenues provided under sections 
3404(c)(3), 3405(f), 3406(c)(1), and 3407(d) of this title. 
Amounts deposited shall be credited as offsetting collections. 
[Not less than 67 percent of all funds made available to the 
Restoration Fund under this title are authorized to be 
appropriated to the Secretary to carry out the habitat 
restoration, improvement and acquisition (from willing sellers) 
provisions of this title. Not more than 33 percent of all funds 
made available to the Restoration Fund under this title are 
authorized to be appropriated to the Secretary to carry out the 
provisions of paragraphs 3406(b)(4)-(6), (10)-(18), and (20)-
(22) of this title. Monies] Monies donated to the Restoration 
Fund by non-Federal entities for specific purposes shall be 
expended for those purposes only and shall not be subject to 
appropriation.
  (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.

           *       *       *       *       *       *       *

  (c) Mitigation and Restoration Payments by Water and Power 
Beneficiaries.--
          (1) To the extent required in appropriation Acts, the 
        Secretary shall assess and collect additional annual 
        [mitigation and restoration] payments, in addition to 
        the charges [provided for or] collected under sections 
        3404(c)(3), 3405(a)(1)(C), 3405(f), and 3406(c)(1) of 
        this title, consisting of charges to direct 
        beneficiaries of the Central Valley Project under 
        subsection (d) of this section in order to recover a 
        portion or all of the costs [of fish, wildlife, and 
        habitat restoration programs and projects under this 
        title.] of carrying out all activities described in 
        this title.

           *       *       *       *       *       *       *

  (d) Adjustment and Assessment of Mitigation and Restoration 
Payments.--
          (1) * * *
          (2) The Secretary shall assess and collect the 
        following mitigation and restoration payments, to be 
        covered to the Restoration Fund, subject to the 
        requirements of paragraph (1) of this subsection:
                  (A) The Secretary shall require Central 
                Valley Project water and power contractors to 
                make such additional annual payments as are 
                necessary to yield, together with all other 
                receipts, the amount required under paragraph 
                (c)(2) of this subsection; Provided, That such 
                additional payments shall not exceed 
                $30,000,000 (October 1992 price levels) on a 
                three-year rolling average basis; Provided 
                further, That such additional annual payments 
                shall be allocated so as not to exceed $6 per 
                acre-foot (October 1992 price levels) for 
                agricultural water sold and delivered by the 
                Central Valley Project, and $12 per acre-foot 
                (October 1992 price levels) for municipal and 
                industrial water sold and delivered by the 
                Central Valley Project, or after October 1, 
                2013, $4 per megawatt-hour for Central Valley 
                Project power sold to power contractors 
                (October 2013 price levels); Provided further, 
                That the charge imposed on agricultural water 
                shall be reduced, if necessary, to an amount 
                within the probable ability of the water users 
                to pay as determined and adjusted by the 
                Secretary no less than every five years, taking 
                into account the benefits resulting from 
                implementation of this title; Provided further, 
                That the Secretary shall impose an additional 
                annual charge of $25 per acre-foot (October 
                1992 price levels) for Central Valley Project 
                water sold or transferred to any State or local 
                agency or other entity which has not previously 
                been a Central Valley Project customer and 
                which contracts with the Secretary or any other 
                individual or district receiving Central Valley 
                Project water to purchase or otherwise transfer 
                any such water for its own use for municipal 
                and industrial purposes, to be deposited in the 
                Restoration Fund; And Provided further, That 
                upon the completion of the fish, wildlife, and 
                habitat mitigation and restoration actions 
                mandated under section 3406 of this title,, no 
                later than December 31, 2020, the Secretary 
                shall reduce the sums described in paragraph 
                (c)(2) of this section to $35,000,000 per year 
                (October 1992 price levels) and shall reduce 
                the annual mitigation and restoration payment 
                ceiling established under this subsection to 
                $15,000,000 (October 1992 price levels) on a 
                three-year rolling average basis. The amount of 
                the mitigation and restoration payment made by 
                Central Valley Project water and power users, 
                taking into account all funds collected under 
                this title, shall, to the greatest degree 
                practicable, be assessed in the same 
                proportion, measured over a ten-year rolling 
                average, as water and power users' respective 
                allocations for repayment of the Central Valley 
                Project.

           *       *       *       *       *       *       *

  (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. 3408. ADDITIONAL AUTHORITIES.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Contracts for Additional Storage and Delivery of 
Water.--The Secretary is authorized to enter into contracts 
pursuant to Reclamation law and this title with any Federal 
agency, California water user or water agency, State agency, or 
private nonprofit organization for the exchange, impoundment, 
storage, carriage, and delivery of Central Valley Project and 
non-project water for domestic, municipal, industrial, fish and 
wildlife, and any other beneficial purpose, except that nothing 
in this subsection shall be deemed to supersede the provisions 
of section 103 of Public Law 99-546 (100 Stat. 3051).]
  (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.

           *       *       *       *       *       *       *

  (f) Annual Reports to Congress.--Not later than September 30 
of each calendar year after the date of enactment of this 
title, the Secretary shall submit a detailed report to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on [Interior and Insular Affairs and the Committee on 
Merchant Marine and Fisheries] Natural Resources of the House 
of Representatives. Such report shall describe all significant 
actions taken by the Secretary pursuant to this title and 
progress toward achievement of the intent, purposes and 
provisions of this title, including progress on the plan 
required by subsection (j). Such report shall include 
recommendations for authorizing legislation or other measures, 
if any, needed to implement the intent, purposes and provisions 
of this title. 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.

           *       *       *       *       *       *       *

  (h) Land Retirement.--
          (1) The Secretary is authorized to purchase from 
        willing sellers land and associated water rights and 
        other property interests identified in [paragraph 
        (h)(2)] paragraph (2) which receives Central Valley 
        Project water under a contract executed with the United 
        States, and to target such purchases to areas deemed 
        most beneficial to the overall purchase program, 
        including the purposes of this title.
          (2) The Secretary is authorized to purchase, under 
        the authority of [paragraph (h)(i)] paragraph (1), and 
        pursuant to such rules and regulations as may be 
        adopted or promulgated to implement the provisions of 
        this subsection, agricultural land which, in the 
        opinion of the Secretary--
                  (A) * * *

           *       *       *       *       *       *       *

  (j) Project Yield Increase.--[In order to minimize adverse 
effects, if any, upon] (1) In general.--In order to minimize 
adverse effects upon existing Central Valley Project water 
contractors resulting from the water dedicated to fish and 
wildlife under this title, and to assist the State of 
California in meeting its future water needs, the Secretary 
shall, not later than three years after the date of enactment 
of this title, develop and submit to the Congress, a least-cost 
plan to increase, within fifteen years after the date of 
enactment of this title, the yield of the Central Valley 
Project by the amount dedicated to fish and wildlife purposes 
under this title. The plan authorized by this subsection shall 
include, but shall not be limited to a description of how the 
Secretary intends to use the following options:
          [(1)] (A) improvements in, modification of, or 
        additions to the facilities and operations of the 
        project and construction of new water storage 
        facilities;
          [(2)] (B) conservation;
          [(3)] (C) transfers;
          [(4)] (D) conjunctive use;
          [(5)] (E) purchase of water;
          [(6)] (F) purchase and idling of agricultural land; 
        [and]
          [(7)] (G) direct purchase of water rights[.]; and
[Such plan shall include recommendations on appropriate cost-
sharing arrangements and shall be developed in a manner 
consistent with all applicable State and Federal law.]
          (H) Water banking and recharge.
  (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.

           *       *       *       *       *       *       *

                              ----------                              


SAN JOAQUIN RIVER RESTORATION SETTLEMENT ACT

           *       *       *       *       *       *       *


 TITLE X--WATER SETTLEMENTS SUBTITLE A--SAN JOAQUIN RIVER RESTORATION 
                               SETTLEMENT

PART I--SAN JOAQUIN RIVER RESTORATION SETTLEMENT ACT

           *       *       *       *       *       *       *


SEC. 10002. PURPOSE.

  The purpose of this part is to authorize [implementation of 
the Settlement] restoration of the San Joaquin River.

SEC. 10003. DEFINITIONS.

  In this part:
          [(1) The terms ``Friant Division long-term 
        contractors'', ``Interim Flows'', ``Restoration 
        Flows'', ``Recovered Water Account'', ``Restoration 
        Goal'', and ``Water Management Goal'' have the meanings 
        given the terms in the Settlement.]
          (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.

           *       *       *       *       *       *       *

          [(3) The term ``Settlement'' means the Stipulation of 
        Settlement dated September 13, 2006, in the litigation 
        entitled Natural Resources Defense Council, et al. v. 
        Kirk Rodgers, et al., United States District Court, 
        Eastern District of California, No. CIV. S-88-1658-LKK/
        GGH.]
          (3) The term ``Water Year'' means March 1 through the 
        last day of February of the following Calendar Year, 
        both dates inclusive
          (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. 10004. IMPLEMENTATION OF SETTLEMENT.

  (a) In General.--The Secretary of the Interior is hereby 
[authorized and directed to implement the terms and conditions 
of the Settlement in cooperation with the State of California, 
including the following measures as these measures are 
prescribed in the Settlement] authorized to carry out the 
following::
          [(1) Design and construct channel and structural 
        improvements as described in paragraph 11 of the 
        Settlement, provided, however, that the Secretary shall 
        not make or fund any such improvements to facilities or 
        property of the State of California without the 
        approval of the State of California and the State's 
        agreement in 1 or more memoranda of understanding to 
        participate where appropriate.
          [(2) Modify Friant Dam operations so as to provide 
        Restoration Flows and Interim Flows.]
          [(3)] (1) Acquire water, water rights, or options to 
        acquire water as described in [paragraph 13 of the 
        Settlement] this part, provided, however, such 
        acquisitions shall only be made from willing sellers 
        and not through eminent domain.
          [(4) Implement the terms and conditions of paragraph 
        16 of the Settlement related to recirculation, 
        recapture, reuse, exchange, or transfer of water 
        released for Restoration Flows or Interim Flows, for 
        the purpose of accomplishing the Water Management Goal 
        of the Settlement, subject to--
                  [(A) applicable provisions of California 
                water law;
                  [(B) the Secretary's use of Central Valley 
                Project facilities to make Project water (other 
                than water released from Friant Dam pursuant to 
                the Settlement) and water acquired through 
                transfers available to existing south-of-Delta 
                Central Valley Project contractors; and
                  [(C) the Secretary's performance of the 
                Agreement of November 24, 1986, between the 
                United States of America and the Department of 
                Water Resources of the State of California for 
                the coordinated operation of the Central Valley 
                Project and the State Water Project as 
                authorized by Congress in section 2(d) of the 
                Act of August 26, 1937 (50 Stat. 850, 100 Stat. 
                3051), including any agreement to resolve 
                conflicts arising from said Agreement.
          [(5) Develop and implement the Recovered Water 
        Account as specified in paragraph 16(b) of the 
        Settlement, including the pricing and payment crediting 
        provisions described in paragraph 16(b)(3) of the 
        Settlement, provided that all other provisions of 
        Federal reclamation law shall remain applicable.]
          (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.
  (b) Agreements.--
          (1) Agreements with the state.--In order to 
        facilitate or expedite implementation of [the 
        Settlement] this part, the Secretary is authorized and 
        directed to enter into appropriate agreements, 
        including cost-sharing agreements, with the State of 
        California.
          (2) Other agreements.--The Secretary is authorized to 
        enter into contracts, memoranda of understanding, 
        financial assistance agreements, cost sharing 
        agreements, and other appropriate agreements with 
        State, tribal, and local governmental agencies, and 
        with private parties, including agreements related to 
        construction, improvement, and operation and 
        maintenance of facilities, subject to any terms and 
        conditions that the Secretary deems necessary to 
        achieve the purposes of [the Settlement] this part.
  (c) Acceptance and Expenditure of Non-Federal Funds.--The 
Secretary is authorized to accept and expend non-Federal funds 
in order to facilitate implementation of [the Settlement] this 
part.
  [(d) Mitigation of Impacts.--Prior to the implementation of 
decisions or agreements to construct, improve, operate, or 
maintain facilities that the Secretary determines are needed to 
implement the Settlement, the Secretary shall identify--
          [(1) the impacts associated with such actions; and
          [(2) the measures which shall be implemented to 
        mitigate impacts on adjacent and downstream water users 
        and landowners.]
  (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.
  (e) Design and Engineering Studies.--The Secretary is 
authorized to conduct any design or engineering studies that 
are necessary to implement [the Settlement] this part.
  (f) Effect on Contract Water Allocations.--Except as 
otherwise provided in this section, the implementation of [the 
Settlement and the reintroduction of California Central Valley 
Spring Run Chinook salmon pursuant to the Settlement and 
section 10011] this part, shall not result in the involuntary 
reduction in contract water allocations to Central Valley 
Project long-term contractors, other than Friant Division long-
term contractors.
  (g) Effect on Existing Water Contracts.--Except as provided 
in [the Settlement and] this part, nothing in this part shall 
modify or amend the rights and obligations of the parties to 
any existing water service, repayment, purchase, [or exchange 
contract] exchange contract, or water rights settlement or 
holding contracts.
  (h) [Interim] Flows.--
          (1) Study required.--Prior to releasing any [Interim 
        Flows under the Settlement] Restoration Flows under 
        this part, the Secretary shall prepare an analysis in 
        compliance with the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.), including at a 
        minimum--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) an evaluation of--
                          (i) possible impacts associated with 
                        the release of [Interim] Restoration 
                        Flows; and
                          (ii) mitigation measures for those 
                        impacts that are determined to be 
                        significant; and
                  (D) a description of the associated flow 
                monitoring program[ ;and].
                  [(E) an analysis of the likely Federal costs, 
                if any, of any fish screens, fish bypass 
                facilities, fish salvage facilities, and 
                related operations on the San Joaquin River 
                south of the confluence with the Merced River 
                required under the Endangered Species Act of 
                1973 (16 U.S.C. 1531 et seq.) as a result of 
                the Interim Flows.]
          (2) Conditions for release.--The Secretary is 
        authorized to release [Interim] Restoration Flows to 
        the extent that such flows would not--
                  [(A) impede or delay completion of the 
                measures specified in Paragraph 11(a) of the 
                Settlement; or]
                  [(B) exceed] exceed existing downstream 
                channel capacities.
          (3) Seepage impacts.--The Secretary shall reduce 
        [Interim] Restoration Flows to the extent necessary to 
        address any material adverse impacts to third parties 
        from groundwater seepage caused by such flows that the 
        Secretary identifies based on the monitoring program of 
        the Secretary.
          [(4) Temporary fish barrier program.--The Secretary, 
        in consultation with the California Department of Fish 
        and Game, shall evaluate the effectiveness of the Hills 
        Ferry barrier in preventing the unintended upstream 
        migration of anadromous fish in the San Joaquin River 
        and any false migratory pathways. If that evaluation 
        determines that any such migration past the barrier is 
        caused by the introduction of the Interim Flows and 
        that the presence of such fish will result in the 
        imposition of additional regulatory actions against 
        third parties, the Secretary is authorized to assist 
        the Department of Fish and Game in making improvements 
        to the barrier. From funding made available in 
        accordance with section 10009, if third parties along 
        the San Joaquin River south of its confluence with the 
        Merced River are required to install fish screens or 
        fish bypass facilities due to the release of Interim 
        Flows in order to comply with the Endangered Species 
        Act of 1973 (16 U.S.C. 1531 et seq.), the Secretary 
        shall bear the costs of the installation of such 
        screens or facilities if such costs would be borne by 
        the Federal Government under section 10009(a)(3), 
        except to the extent that such costs are already or are 
        further willingly borne by the State of California or 
        by the third parties.]
          (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.
  (i) Funding Availability.--
          (1) In general.--Funds shall be collected in the San 
        Joaquin River Restoration Fund through October 1, 2019, 
        and thereafter, with substantial amounts available 
        through October 1, 2019, pursuant to section 10009 for 
        implementation of [the Settlement and parts I and III] 
        this part, including--
                  (A) $88,000,000, to be available without 
                further appropriation pursuant to section 
                10009(c)(2); and
                  (B) [additional amounts authorized to be 
                appropriated, including the] charges required 
                under section 10007 and an estimated 
                $20,000,000 from the CVP Restoration Fund 
                pursuant to section 10009(b)(2)[; and].
                  [(C) an aggregate commitment of at least 
                $200,000,000 by the State of California.]

           *       *       *       *       *       *       *

          [(3) Effect of subsection.--Nothing in this 
        subsection limits the availability of funds authorized 
        for appropriation pursuant to section 10009(b) or 
        10203(c).]

           *       *       *       *       *       *       *

  (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. 10005. ACQUISITION AND DISPOSAL OF PROPERTY; TITLE TO FACILITIES.

  (a) Title to Facilities.--Unless acquired pursuant to 
subsection (b), title to any facility or facilities, stream 
channel, levees, or other real property modified or improved in 
the course of implementing [the Settlement authorized by this 
part] this part, and title to any modifications or improvements 
of such facility or facilities, stream channel, levees, or 
other real property--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Acquisition of Property.--
          [(1) In general.--The Secretary] The Secretary is 
        authorized to acquire through purchase from willing 
        sellers any property, interests in property, or options 
        to acquire real property needed to implement [the 
        Settlement authorized by this part] this part.
          [(2) Applicable law.--The Secretary is authorized, 
        but not required, to exercise all of the authorities 
        provided in section 2 of the Act of August 26, 1937 (50 
        Stat. 844, chapter 832), to carry out the measures 
        authorized in this section and section 10004.]
  (c) Disposal of Property.--
          (1) In general.--Upon the Secretary's determination 
        that retention of title to property or interests in 
        property acquired pursuant to this part is no longer 
        needed to be held by the United States for the 
        furtherance of [the Settlement] this part, the 
        Secretary is authorized to dispose of such property or 
        interest in property on such terms and conditions as 
        the Secretary deems appropriate and in the best 
        interest of the United States, including possible 
        transfer of such property to the State of California.
          (2) Right of first refusal.--In the event the 
        Secretary determines that property acquired pursuant to 
        this part [through the exercise of its eminent domain 
        authority] is no longer necessary for implementation of 
        [the Settlement] this part, the Secretary shall provide 
        a right of first refusal to the property owner from 
        whom the property was initially acquired, or his or her 
        successor in interest, on the same terms and conditions 
        as the property is being offered to other parties.
          (3) Disposition of proceeds.--Proceeds from the 
        disposal by sale or transfer of any such property or 
        interests in such property shall be deposited in the 
        fund established by [section 10009(c)] section 10009.

           *       *       *       *       *       *       *


SEC. 10006. COMPLIANCE WITH APPLICABLE LAW.

  (a) Applicable Law.--
          (1) In general.--In undertaking the measures 
        authorized by this part, the Secretary and the 
        Secretary of Commerce shall comply with all applicable 
        Federal and State laws, rules, and regulations, 
        including the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.) and the Endangered Species Act 
        of 1973 (16 U.S.C. 1531 et seq.), as necessary unless 
        otherwise provided by this part.
          (2) Environmental reviews.--The Secretary and the 
        Secretary of Commerce are authorized and directed to 
        initiate and expeditiously complete applicable 
        environmental reviews and consultations as may be 
        necessary to effectuate the purposes of [the 
        Settlement] this part.
  (b) Effect on State Law.--Nothing in this part shall preempt 
State law or modify any existing obligation of the United 
States under Federal reclamation law to operate the Central 
Valley Project in conformity with State law, unless otherwise 
provided by this part.
  (c) Use of Funds for Environmental Reviews.--
          (1) * * *
          (2) Participation in environmental review process.--
        In undertaking the measures authorized by [section 
        10004] this part, and for which environmental review is 
        required, the Secretary may provide funds made 
        available under this part to affected Federal agencies, 
        State agencies, local agencies, and Indian tribes if 
        the Secretary determines that such funds are necessary 
        to allow the Federal agencies, State agencies, local 
        agencies, or Indian tribes to effectively participate 
        in the environmental review process.
          (3) Limitation.--Funds may be provided under 
        paragraph (2) only to support activities that directly 
        contribute to the implementation of the terms and 
        conditions of [the Settlement] this part.
  (d) Nonreimbursable Funds.--The United States' share of the 
costs of implementing this part, including without limitation 
to sections 10004(d) and 10004(h)(4) of this part, shall be 
nonreimbursable under Federal reclamation law, provided that 
nothing in this subsection shall limit or be construed to limit 
the use of the funds assessed and collected pursuant to 
sections 3406(c)(1) and 3407(d)(2) of the Reclamation Projects 
Authorization and Adjustment Act of 1992 (Public Law 102-575; 
106 Stat. 4721, 4727), [for implementation of the Settlement], 
nor shall it be construed to limit or modify existing or future 
Central Valley Project ratesetting policies.

SEC. 10007. COMPLIANCE WITH CENTRAL VALLEY PROJECT IMPROVEMENT ACT.

  Congress hereby finds and declares that [the Settlement] 
enactment of this part satisfies and discharges all of the 
obligations of the Secretary contained in section 3406(c)(1) of 
the Reclamation Projects Authorization and Adjustment Act of 
1992 (Public Law 102-575; 106 Stat. 4721) 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.)., 
provided, however, that--
          (1) the Secretary shall continue to assess and 
        collect the charges provided in section 3406(c)(1) of 
        the Reclamation Projects Authorization and Adjustment 
        Act of 1992 (Public Law 102-575; 106 Stat. 4721)[, as 
        provided in the Settlement]; and

           *       *       *       *       *       *       *


SEC. 10008. NO PRIVATE RIGHT OF ACTION.

  (a) In General.--Nothing in this part confers upon any person 
or entity [not a party to the Settlement] a private right of 
action or claim for relief to interpret or enforce the 
provisions of this part [or the Settlement] 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. 10009. APPROPRIATIONS[; SETTLEMENT FUND].

  (a) Implementation Costs.--
          (1) In general.--The costs of implementing [the 
        Settlement] this part shall be covered by payments or 
        in-kind contributions made by Friant Division 
        contractors and other non-Federal parties, including 
        the funds provided in subparagraphs (A) through (D) of 
        subsection (c)(1)[, estimated to total $440,000,000, of 
        which the non-Federal payments are estimated to total 
        $200,000,000 (at October 2006 price levels) and the 
        amount from repaid Central Valley Project capital 
        obligations is estimated to total $240,000,000, the 
        additional Federal appropriation of $250,000,000 
        authorized pursuant to subsection (b)(1),] and such 
        additional funds authorized pursuant to subsection 
        (b)(2); provided however, that the costs of 
        implementing the provisions of section 10004(a)(1) 
        shall be shared by the State of California pursuant to 
        the terms of a memorandum of understanding executed by 
        the State of California and the Parties to the 
        Settlement on September 13, 2006, which includes at 
        least $110,000,000 of State funds.
          (2) Additional agreements.--
                  [(A) In general.--The Secretary] The 
                Secretary shall enter into 1 or more agreements 
                to fund or implement improvements on a project-
                by-project basis with the State of California.
                  [(B) Requirements.--Any agreements entered 
                into under subparagraph (A) shall provide for 
                recognition of either monetary or in-kind 
                contributions toward the State of California's 
                share of the cost of implementing the 
                provisions of section 10004(a)(1).]
          (3) Limitation.--[Except as provided in the 
        Settlement, to] To the extent that costs incurred 
        solely to implement [this Settlement] this part would 
        not otherwise have been incurred by any entity or 
        public or local agency or subdivision of the State of 
        California, such costs shall not be borne by any such 
        entity, agency, or subdivision of the State of 
        California, unless such costs are incurred on a 
        voluntary basis.
  (b) Authorization of Appropriations.--
          (1) In general.--[In addition to the funding provided 
        in subsection (c), there are also authorized to be 
        appropriated not to exceed $250,000,000 (at October 
        2006 price levels) to implement this part and the 
        Settlement, to be available until expended; provided 
        however, that the] The Secretary is authorized to spend 
        [such additional appropriations only in amounts equal 
        to] the amount of funds deposited in the San Joaquin 
        River Restoration Fund (not including payments under 
        subsection (c)(1)(B) and proceeds under subsection 
        (c)(1)(C)), the amount of in-kind contributions, and 
        other non-Federal payments actually committed to the 
        implementation of this part [or the Settlement].

           *       *       *       *       *       *       *

  (c) Fund.--
          (1) In general.--There is hereby established within 
        the Treasury of the United States a fund, to be known 
        as the San Joaquin River Restoration Fund, into which 
        the following funds shall be deposited and used solely 
        for the purpose of implementing [the Settlement] this 
        part except as otherwise provided in subsections (a) 
        and (b) of section 10203:
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Proceeds [from the sale of water pursuant 
                to the Settlement, or] from the sale of 
                property or interests in property as provided 
                in section 10005.
                  (D) Any non-Federal funds, including State 
                cost-sharing funds, contributed to the United 
                States for implementation of [the Settlement] 
                this part, which the Secretary may expend 
                without further appropriation for the purposes 
                for which contributed.
          (2) Availability.--All funds deposited into the Fund 
        pursuant to subparagraphs (A), (B), and (C) of 
        paragraph (1) are authorized for appropriation to 
        implement [the Settlement and] this part, in addition 
        to the authorization provided in subsections (a) and 
        (b) of section 10203, except that $88,000,000 of such 
        funds are available for expenditure without further 
        appropriation; provided that after October 1, 2019, all 
        funds in the Fund shall be available for expenditure 
        without further appropriation.
  [(d) Limitation on Contributions.--Payments made by long-term 
contractors who receive water from the Friant Division and 
Hidden and Buchanan Units of the Central Valley Project 
pursuant to sections 3406(c)(1) and 3407(d)(2) of the 
Reclamation Projects Authorization and Adjustment Act of 1992 
(Public Law 102-575; 106 Stat. 4721, 4727) and payments made 
pursuant to paragraph 16(b)(3) of the Settlement and subsection 
(c)(1)(B) shall be the limitation of such entities' direct 
financial contribution to the Settlement, subject to the terms 
and conditions of paragraph 21 of the Settlement.
  [(e) No Additional Expenditures Required.--Nothing in this 
part shall be construed to require a Federal official to expend 
Federal funds not appropriated by Congress, or to seek the 
appropriation of additional funds by Congress, for the 
implementation of the Settlement.
  [(f) Reach 4B.--
          [(1) Study.--
                  [(A) In general.--In accordance with the 
                Settlement and the memorandum of understanding 
                executed pursuant to paragraph 6 of the 
                Settlement, the Secretary shall conduct a study 
                that specifies--
                          [(i) the costs of undertaking any 
                        work required under paragraph 11(a)(3) 
                        of the Settlement to increase the 
                        capacity of reach 4B prior to 
                        reinitiation of Restoration Flows;
                          [(ii) the impacts associated with 
                        reinitiation of such flows; and
                          [(iii) measures that shall be 
                        implemented to mitigate impacts.
                  [(B) Deadline.--The study under subparagraph 
                (A) shall be completed prior to restoration of 
                any flows other than Interim Flows.
          [(2) Report.--
                  [(A) In general.--The Secretary shall file a 
                report with Congress not later than 90 days 
                after issuing a determination, as required by 
                the Settlement, on whether to expand channel 
                conveyance capacity to 4500 cubic feet per 
                second in reach 4B of the San Joaquin River, or 
                use an alternative route for pulse flows, 
                that--
                          [(i) explains whether the Secretary 
                        has decided to expand Reach 4B capacity 
                        to 4500 cubic feet per second; and
                          [(ii) addresses the following 
                        matters:
                                  [(I) The basis for the 
                                Secretary's determination, 
                                whether set out in 
                                environmental review documents 
                                or otherwise, as to whether the 
                                expansion of Reach 4B would be 
                                the preferable means to achieve 
                                the Restoration Goal as 
                                provided in the Settlement, 
                                including how different factors 
                                were assessed such as 
                                comparative biological and 
                                habitat benefits, comparative 
                                costs, relative availability of 
                                State cost-sharing funds, and 
                                the comparative benefits and 
                                impacts on water temperature, 
                                water supply, private property, 
                                and local and downstream flood 
                                control.
                                  [(II) The Secretary's final 
                                cost estimate for expanding 
                                Reach 4B capacity to 4500 cubic 
                                feet per second, or any 
                                alternative route selected, as 
                                well as the alternative cost 
                                estimates provided by the 
                                State, by the Restoration 
                                Administrator, and by the other 
                                parties to the Settlement.
                                  [(III) The Secretary's plan 
                                for funding the costs of 
                                expanding Reach 4B or any 
                                alternative route selected, 
                                whether by existing Federal 
                                funds provided under this 
                                subtitle, by non-Federal funds, 
                                by future Federal 
                                appropriations, or some 
                                combination of such sources.
                  [(B) Determination required.--The Secretary 
                shall, to the extent feasible, make the 
                determination in subparagraph (A) prior to 
                undertaking any substantial construction work 
                to increase capacity in reach 4B.
          [(3) Costs.--If the Secretary's estimated Federal 
        cost for expanding reach 4B in paragraph (2), in light 
        of the Secretary's funding plan set out in that 
        paragraph, would exceed the remaining Federal funding 
        authorized by this part (including all funds 
        reallocated, all funds dedicated, and all new funds 
        authorized by this part and separate from all 
        commitments of State and other non-Federal funds and 
        in-kind commitments), then before the Secretary 
        commences actual construction work in reach 4B (other 
        than planning, design, feasibility, or other 
        preliminary measures) to expand capacity to 4500 cubic 
        feet per second to implement this Settlement, Congress 
        must have increased the applicable authorization 
        ceiling provided by this part in an amount at least 
        sufficient to cover the higher estimated Federal 
        costs.]

SEC. 10010. REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
                    CONSTRUCTION COSTS.

  (a) Conversion of Contracts.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) All such contracts entered into pursuant to 
        paragraph (1) shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) conform to [the Settlement and] this part 
                and shall continue so long as the contractor 
                pays applicable charges, consistent with 
                subsection (c)(2) and applicable law.
          (4) All such contracts entered into pursuant to 
        paragraph (2) shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) conform to [the Settlement and] this part 
                and shall continue so long as the contractor 
                pays applicable charges, consistent with 
                subsection (c)(2) and applicable law.

           *       *       *       *       *       *       *

  (c) Applicability of Certain Provisions.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Provisions of the Settlement applying to Friant 
        Division, Hidden Unit, and Buchanan Unit long-term 
        water service contracts shall also apply to contracts 
        executed pursuant to this section.]
  (d) Reduction of Charge for Those Contracts Converted 
Pursuant to Subsection (a)(1).--
          (1) At the time all payments by the contractor 
        required by subsection (a)(3)(A) have been completed, 
        the Secretary shall reduce the charge mandated in 
        section 10007(1) of this part, from 2020 through 2039, 
        to offset the financing costs as defined in section 
        10010(d)(3). The reduction shall be calculated at the 
        time all payments by the contractor required by 
        subsection (a)(3)(A) have been completed. The 
        calculation shall remain fixed from 2020 through 2039 
        and shall be based upon anticipated average annual 
        water deliveries, as mutually agreed upon by the 
        Secretary and the contractor, for the period from 2020 
        through 2039, and the amounts of such reductions shall 
        be discounted using the Treasury Rate; provided, that 
        such charge shall not be reduced to less than $4.00 per 
        acre foot of project water delivered; provided further, 
        that such reduction shall be implemented annually 
        unless the Secretary determines, based on the 
        availability of other monies, that the charges mandated 
        in section 10007(1) are otherwise needed to cover 
        ongoing federal costs of [the Settlement] this part, 
        including any federal operation and maintenance costs 
        of facilities that the Secretary determines are needed 
        to implement [the Settlement] this part. If the 
        Secretary determines that such charges are necessary to 
        cover such ongoing federal costs, the Secretary shall, 
        instead of making the reduction in such charges, reduce 
        the contractor's operation and maintenance obligation 
        by an equivalent amount, and such amount shall not be 
        recovered by the United States from any Central Valley 
        Project contractor, provided nothing herein shall 
        affect the obligation of the contractor to make 
        payments pursuant to a transfer agreement with a non-
        federal operating entity.

           *       *       *       *       *       *       *

  (e) Satisfaction of Certain Provisions.--
          (1) In general.--Upon the first release of [Interim 
        Flows or Restoration Flows, pursuant to paragraphs 13 
        or 15 of the Settlement] Restoration Flows, pursuant to 
        this part, any short- or long-term agreement, to which 
        1 or more long-term Friant Division, Hidden Unit, or 
        Buchanan Unit contractor that converts its contract 
        pursuant to subsection (a) is a party, providing for 
        the transfer or exchange of water not released as 
        [Interim Flows or] Restoration Flows shall be deemed to 
        satisfy the provisions of subsection 3405(a)(1)(A) and 
        (I) of the Reclamation Projects Authorization and 
        Adjustment Act of 1992 (Public Law 102-575) without the 
        further concurrence of the Secretary as to compliance 
        with said subsections if the contractor provides, not 
        later than 90 days before commencement of any such 
        transfer or exchange for a period in excess of 1 year, 
        and not later than 30 days before commencement of any 
        proposed transfer or exchange with duration of less 
        than 1 year, written notice to the Secretary stating 
        how the proposed transfer or exchange is intended to 
        reduce, avoid, or mitigate impacts to water deliveries 
        caused by [the Interim Flows or Restoration Flows or is 
        intended to otherwise facilitate the Water Management 
        Goal, as described in the Settlement] Restoration 
        Flows. The Secretary shall promptly make such notice 
        publicly available.
          (2) Determination of reductions to water 
        deliveries.--Water transferred or exchanged under an 
        agreement that meets the terms of this subsection shall 
        not be counted as a replacement or an offset for 
        purposes of determining reductions to water deliveries 
        to any Friant Division long-term contractor [except as 
        provided in paragraph 16(b) of the Settlement]. The 
        Secretary shall, at least annually, make publicly 
        available a compilation of the number of transfer or 
        exchange agreements exercising the provisions of this 
        subsection to reduce, avoid, or mitigate impacts to 
        water deliveries caused by [the Interim Flows or 
        Restoration Flows or to facilitate the Water Management 
        Goal] Restoration Flows, as well as the volume of water 
        transferred or exchanged under such agreements.

           *       *       *       *       *       *       *


[SEC. 10011. CALIFORNIA CENTRAL VALLEY SPRING RUN CHINOOK SALMON.

  [(a) Finding.--Congress finds that the implementation of the 
Settlement to resolve 18 years of contentious litigation 
regarding restoration of the San Joaquin River and the 
reintroduction of the California Central Valley Spring Run 
Chinook salmon is a unique and unprecedented circumstance that 
requires clear expressions of Congressional intent regarding 
how the provisions of the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.) are utilized to achieve the goals of 
restoration of the San Joaquin River and the successful 
reintroduction of California Central Valley Spring Run Chinook 
salmon.
  [(b) Reintroduction in the San Joaquin River.--California 
Central Valley Spring Run Chinook salmon shall be reintroduced 
in the San Joaquin River below Friant Dam pursuant to section 
10(j) of the Endangered Species Act of 1973 (16 U.S.C. 1539(j)) 
and the Settlement, provided that the Secretary of Commerce 
finds that a permit for the reintroduction of California 
Central Valley Spring Run Chinook salmon may be issued pursuant 
to section 10(a)(1)(A) of the Endangered Species Act of 1973 
(16 U.S.C. 1539(a)(1)(A)).
  [(c) Final Rule.--
          [(1) Definition of third party.--For the purpose of 
        this subsection, the term ``third party'' means persons 
        or entities diverting or receiving water pursuant to 
        applicable State and Federal laws and shall include 
        Central Valley Project contractors outside of the 
        Friant Division of the Central Valley Project and the 
        State Water Project.
          [(2) Issuance.--The Secretary of Commerce shall issue 
        a final rule pursuant to section 4(d) of the Endangered 
        Species Act of 1973 (16 U.S.C. 1533(d)) governing the 
        incidental take of reintroduced California Central 
        Valley Spring Run Chinook salmon prior to the 
        reintroduction.
          [(3) Required components.--The rule issued under 
        paragraph (2) shall provide that the reintroduction 
        will not impose more than de minimus: water supply 
        reductions, additional storage releases, or bypass 
        flows on unwilling third parties due to such 
        reintroduction.
          [(4) Applicable law.--Nothing in this section--
                  [(A) diminishes the statutory or regulatory 
                protections provided in the Endangered Species 
                Act of 1973 for any species listed pursuant to 
                section 4 of the Endangered Species Act of 1973 
                (16 U.S.C. 1533) other than the reintroduced 
                population of California Central Valley Spring 
                Run Chinook salmon, including protections 
                pursuant to existing biological opinions or new 
                biological opinions issued by the Secretary or 
                Secretary of Commerce; or
                  [(B) precludes the Secretary or Secretary of 
                Commerce from imposing protections under the 
                Endangered Species Act of 1973 (16 U.S.C. 1531 
                et seq.) for other species listed pursuant to 
                section 4 of that Act (16 U.S.C. 1533) because 
                those protections provide incidental benefits 
                to such reintroduced California Central Valley 
                Spring Run Chinook salmon.
  [(d) Report.--
          [(1) In general.--Not later than December 31, 2024, 
        the Secretary of Commerce shall report to Congress on 
        the progress made on the reintroduction set forth in 
        this section and the Secretary's plans for future 
        implementation of this section.
          [(2) Inclusions.--The report under paragraph (1) 
        shall include--
                  [(A) an assessment of the major challenges, 
                if any, to successful reintroduction;
                  [(B) an evaluation of the effect, if any, of 
                the reintroduction on the existing population 
                of California Central Valley Spring Run Chinook 
                salmon existing on the Sacramento River or its 
                tributaries; and
                  [(C) an assessment regarding the future of 
                the reintroduction.
  [(e) FERC Projects.--
          [(1) In general.--With regard to California Central 
        Valley Spring Run Chinook salmon reintroduced pursuant 
        to the Settlement, the Secretary of Commerce shall 
        exercise its authority under section 18 of the Federal 
        Power Act (16 U.S.C. 811) by reserving its right to 
        file prescriptions in proceedings for projects licensed 
        by the Federal Energy Regulatory Commission on the 
        Calaveras, Stanislaus, Tuolumne, Merced, and San 
        Joaquin rivers and otherwise consistent with subsection 
        (c) until after the expiration of the term of the 
        Settlement, December 31, 2025, or the expiration of the 
        designation made pursuant to subsection (b), whichever 
        ends first.
          [(2) Effect of subsection.--Nothing in this 
        subsection shall preclude the Secretary of Commerce 
        from imposing prescriptions pursuant to section 18 of 
        the Federal Power Act (16 U.S.C. 811) solely for other 
        anadromous fish species because those prescriptions 
        provide incidental benefits to such reintroduced 
        California Central Valley Spring Run Chinook salmon.
  [(f) Effect of Section.--Nothing in this section is intended 
or shall be construed--
          [(1) to modify the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.) or the Federal Power Act (16 
        U.S.C. 791a et seq.); or
          [(2) to establish a precedent with respect to any 
        other application of the Endangered Species Act of 1973 
        (16 U.S.C. 1531 et seq.) or the Federal Power Act (16 
        U.S.C. 791a et seq.).]

           *       *       *       *       *       *       *


PART III--FRIANT DIVISION IMPROVEMENTS

           *       *       *       *       *       *       *


SEC. 10202. FINANCIAL ASSISTANCE FOR LOCAL PROJECTS.

  (a)  * * *
  (b) Criteria.--
          (1) A project shall be eligible for Federal financial 
        assistance under subsection (a) only if all or a 
        portion of the project is designed to reduce, avoid, or 
        offset the quantity of the expected water supply 
        impacts to Friant Division long-term contractors caused 
        by [the Interim or Restoration Flows authorized in part 
        I of this subtitle] Restoration Flows authorized in 
        this part, and such quantities have not already been 
        reduced, avoided, or offset by other programs or 
        projects.
          (2) Federal financial assistance shall only apply to 
        the portion of a project that the local agency 
        designates as reducing, avoiding, or offsetting the 
        expected water supply impacts caused by [the Interim or 
        Restoration Flows authorized in part I of this 
        subtitle] Restoration Flows authorized in this part, 
        consistent with the methodology developed pursuant to 
        paragraph (3)(C).
          (3) No Federal financial assistance shall be provided 
        by the Secretary under this part for construction of a 
        project under subsection (a) unless the Secretary--
                  (A) determines that appropriate planning, 
                design, and environmental compliance activities 
                associated with such a project have been 
                completed, and that the Secretary has been 
                offered the opportunity to participate in the 
                project at a price that is no higher than the 
                local agency's own costs, in order to secure 
                necessary storage, extraction, and conveyance 
                rights for water that may be needed to [meet 
                the Restoration Goal as described in part I of 
                this subtitle] recover Restoration Flows as 
                described in this part, where such project has 
                capacity beyond that designated for the 
                purposes in paragraph (2) or where it is 
                feasible to expand such project to allow 
                participation by the Secretary;
                  (B) * * *
                  (C) determines that a method acceptable to 
                the Secretary has been developed for 
                quantifying the benefit, in terms of reduction, 
                avoidance, or offset of the water supply 
                impacts expected to be caused by [the Interim 
                or Restoration Flows authorized in part I of 
                this subtitle] Restoration Flows authorized in 
                this part, that will result from the project[, 
                and for ensuring appropriate adjustment in the 
                recovered water account pursuant to section 
                10004(a)(5)]; and

           *       *       *       *       *       *       *


SEC. 10203. AUTHORIZATION OF APPROPRIATIONS.

  (a) * * *
  (b) In addition to the funds made available pursuant to 
subsection (a), the Secretary is also authorized to expend such 
additional funds from the fund established under section 10009 
to carry out the purposes of section 10201(a)(2), if such 
facilities have not already been authorized and funded under 
the plan provided for pursuant to [section 10004(a)(4)] section 
10004(a)(3), in an amount not to exceed $17,000,000[, provided 
that the Secretary first determines that such expenditure will 
not conflict with or delay his implementation of actions 
required by part I of this subtitle. Notice of the Secretary's 
determination shall be published not later than his submission 
of the report to Congress required by section 10009(f)(2)].
  [(c) In addition to funds made available in subsections (a) 
and (b), there are authorized to be appropriated $50,000,000 
(October 2008 price levels) to carry out the purposes of this 
part which shall be non-reimbursable.]

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    H.R. 1837 sets an unprecedented standard for state 
preemption, environmental disregard, and the permanent 
privatization of public water resources. The legislation as 
passed out of committee will undermine the progress being made 
to resolve California's water challenges and should be 
rejected.
    If enacted, this legislation would cause more legal 
uncertainty for local communities, not less. Title II of H.R. 
1837 would repeal the court ordered, legally binding San 
Joaquin Restoration Settlement Act and prohibit further federal 
participation in the San Joaquin River Settlement. Proponents 
of this title are not party to the Settlement. Title II is 
contrary to the views held by the parties to the settlement. 
For example, the Friant Water Authority has stated that they 
have a ``contractual obligation to comply with the 
Settlement,'' and therefore ``opposes amendments to the 
Settlement Act that are not agreed to by the parties.''
    H.R. 1837 would repeal several provisions of the Central 
Valley Project Improvement Act (CVPIA), including changing the 
definition of protected species to fish that were present in 
1992. This would exclude any salmon that are recovered as a 
part of the San Joaquin Settlement, since there were no salmon 
in the San Joaquin River in 1992. H.R. 1837 would also strike 
the tiered water system established by the CVPIA, which put in 
place a pricing system that depends on the amount of water 
used. H.R. 1837 reverts contract renewal terms back to 40 years 
from the current 25, and directs the Secretary upon request to 
renew contracts for successive, 40-year terms in perpetuity. 
This amounts to de facto privatization of a public resource.
    Section 108 of H.R. 1837 would deem that all requirements 
of the Endangered Species Act (ESA) in the operation of the CVP 
would be met through the ``Principles Agreement on the Bay-
Delta Standards between the State of California and the Federal 
Government,'' or the 1994 Bay Delta Accord. Reverting to the 
Bay Delta Accord ignores the last fifteen years of best 
available science and disregards the negative effects on 
species as a result of water deliveries. The Pacific Fishery 
Management Council has expressed concern regarding provisions 
in this legislation and its ``potentially negative impact on 
coastal communities and fishing related businesses.'' 
Congressman John Garamendi (D-CA) offered an amendment to 
require that the operations of the Central Valley Project (CVP) 
and the State Water Project be in compliance with state law and 
the best available science. The amendment was not agreed to.
    Provisions in this legislation further prohibit the State 
from taking any action to manage its water resources as 
required by the California Water Code and Constitution. In a 
May 2011 letter from the California State Legislature, signed 
by President pro Tempore Darrell Steinberg and Assembly Speaker 
John Perez, H.R. 1837 is described as ``breathtaking in its 
total disregard for equity and its willful subjugation of the 
State of California to the whims of federal action.'' Water and 
Power Subcommittee Ranking Member Grace Napolitano offered an 
amendment that would prevent the preemption of the state 
constitution. The amendment was not agreed to.
    Strong objection to this legislation is echoed by the 
Western States Water Council, a nonpartisan council consisting 
of representatives appointed by the governors of 18 western 
states. Council Chair Weir Labatt III has stated that ``the 
Council opposes any weakening of the deference to state water 
law as now expressed in Section 8 [of H.R. 1837] as 
inconsistent with the policy of cooperative federalism that has 
guided Reclamation Law for over a century. This is a threat to 
water rights and water rights administration in all of the 
Western States.'' The States of Colorado, Wyoming and Oregon 
have also sent in letters in opposition to the legislation.
    California State Natural Resources Secretary John Laird has 
also expressed concern, stating that ``if this bill passes, no 
state will be safe from congressional interference in their 
water rights laws.'' Subcommittee Chairman Tom McClintock (R-
CA) offered a substitute amendment that added a new Title IV 
that affirms existing water rights and area of origin rights in 
Northern California. While the provisions of Title IV are 
clearly an attempt to address concerns raised with the original 
bill, Title IV does not supersede the legislation's overall 
preemption of both state law and a century of Reclamation law. 
In response to these concerns, Congressman Garamendi offered an 
amendment that nothing in the legislation would preempt state 
law. This amendment was also not agreed to.
    The legislation prohibits action to address legitimate 
environmental concerns as well as any progress on ongoing 
surface water studies. Republicans held a hearing on new 
reservoir storage just a week prior to the mark-up where 
Reclamation explained that the greatest impediment to the 
construction of new facilities is the lack of congressional 
authorization and federal funding. Congressman Jim Costa (D-CA) 
offered an amendment that would have authorized the 
construction of Shasta Reservoir. The majority considered this 
amendment an earmark, despite not being located in Congressman 
Costa's district. The amendment was withdrawn. Congressman 
Garamendi also offered an amendment that would have expedited 
the process of construction of Sites Reservoir. Instead, a 
Republican substitute amendment was adopted that would prevent 
the reservoir from going forward by prohibiting the Bureau of 
Reclamation from working with the Sites Project Joint Powers 
Authority, a regional consortium of local water agencies and 
counties united to develop the project.
    The scope of harmful provisions included in this 
legislation is matched only by the number of necessary 
provisions left out. If enacted, H.R. 1837 will not support the 
co-equal goals, as stated in the bipartisan Sacramento-San 
Joaquin Delta Reform Act of 2009, of first providing a more 
reliable water supply for California, and second protecting, 
restoring, and enhancing the overall quality of the California 
Bay-Delta.
    H.R. 1837 will not solve California's water problems 
through a thoughtful, science-based, stakeholder-inclusive 
process.
    H.R. 1837 will not resolve the long-standing issues on the 
San Joaquin River or provide flood protection and water supply 
projects for farmers that were approved as a part of the San 
Joaquin River Restoration Settlement Act.
    H.R. 1837 will not sustain or rebuild the salmon 
populations, which are the backbone of the west coast salmon 
fishery and support fishermen, their livelihoods, and local 
coastal communities.
    H.R. 1837 would destroy local economies, livelihoods, and 
the environment, all to benefit special interests, and set the 
dangerous precedent of Federal law overturning state water law. 
H.R. 1837 is an attempt to turn back the clock and must be 
rejected.

                                   Edward J. Markey.
                                   Grace F. Napolitano.
                                   Gregorio Kilili Camacho Sablan.
                                   Peter A. DeFazio.
                                   Raul M. Grijalva.
                                   John Garamendi.
                                   Dale E. Kildee.
                                   Madeleine Z. Bordallo.
                                   Rush Holt.

                                  
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