HR 429

TITLE XXXIV---CENTRAL VALLEY PROJECT IMPROVEMENT ACT

(Adapted for web distribution by WaterShare USBR, January 16, 1998.)

SEC. 3401. SHORT FORM.

This title may be cited as the "The Central Valley Project Improvement
Act."

SEC. 3402. PURPOSES.

The purposes of this title shall be:

\(a\) to protect, restore, and enhance fish, wildlife, and associated
habitats in the Central Valley and Trinity River basins of California;

\(b\) to address impacts of the Central Valley Project on fish, wildlife
and associated habitats;

\(c\) to improve the operational flexibility of the Central Valley
Project;

\(d\) to increase water-related benefits provided by the Central Valley
Project to the State of California through expanded use of voluntary
water transfers and improved water conservation;

\(e\) to contribute to the State of California\'s interim and long-term
efforts to protect the San Francisco Bay / Sacramento-San Joaquin Delta
Estuary;

\(f\) 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.

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;

\(b\) the terms "artificial propagation" and "artificial production"
mean spawning, incubating, hatching, and rearing fish in a hatchery or
other facility constructed for fish production;

\(c\) the term "Central Valley Habitat Joint Venture" means the
association of Federal and State agencies and private parties
established for the purpose of developing and implementing the North
American Waterfowl Management Plan as it pertains to the Central Valley
of California;

\(d\) the terms "Central Valley Project" or "project" mean all Federal
reclamation projects located within or diverting water from or to the
watershed of the Sacramento and San Joaquin rivers and their tributaries
as authorized by the Act of August 26, 1937 (50 Stat. 850) and all Acts
amendatory or supplemental thereto, including but not limited to the Act
of October 17, 1940 (54 Stat. 1198, 1199), Act of December 22, 1944 (58
Stat. 887), Act of October 14, 1949 (63 Stat. 852), Act of September 26,
1950 (64 Stat. 1036), Act of August 27, 1954 (68 Stat. 879), Act of
August 12, 1955 (69 Stat. 719), Act of June 3, 1960 (74 Stat. 156), Act
of October 23, 1962 (76 Stat. 1173), Act of September 2, 1965 (79 Stat.
615), Act of August 19, 1967 (81 Stat. 167), Act of August 27, 1967 (81
Stat. 173), Act of October 23, 1970 (84 Stat. 1097), Act of September
28, 1976 (90 Stat. 1324) and Act of October 27, 1986 (100 Stat. 3050);

\(e\) the term "Central Valley Project service area" means that area of
the Central Valley and San Francisco Bay Area where water service has
been expressly authorized pursuant to the various feasibility studies
and consequent congressional authorizations for the Central Valley
Project;

\(f\) the term "Central Valley Project water" means all water that is
developed, diverted, stored, or delivered by the Secretary in accordance
with the statutes authorizing the Central Valley Project and in
accordance with the terms and conditions of water rights acquired
pursuant to California law;

\(g\) the term "full cost" has the meaning given such term in paragraph
(3) of section 202 of the Reclamation Reform Act of 1982;

\(h\) the term "natural production" means fish produced to adulthood
without direct human intervention in the spawning, rearing, or migration
processes;

\(i\) the term "Reclamation laws" means the Act of June 17, 1902 (82
Stat. 388) and all Acts amendatory thereof or supplemental thereto;

\(j\) the term "Refuge Water Supply Report" means the report issued by
the Mid-Pacific Region of the Bureau of Reclamation of the U.S.
Department of the Interior entitled Report on Refuge Water Supply
Investigations, Central Valley Hydrologic Basin, California (March
1989);

\(k\) the terms "repayment contract" and "water service contract" have
the same meaning as provided in sections 9(d) and 9(e) of the
Reclamation Project Act of 1939 (53 Stat. 1187, 1195), as amended;

\(l\) 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.

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 U.S. v. State Water
Resources Control Board, 182 Cal. App. 3rd 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 Pub. L
102-250 or section 206 of Pub. L 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 25 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.

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
non-profit organization for project purposes or any purpose recognized
as beneficial under applicable State law. 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 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.

\(B\) All water under the contract which is transferred under authority
of this subsection to any district or agency which is not a Central
Valley Project contractor at the time of enactment of this title shall,
if used for irrigation purposes, be repaid at the greater of the full
cost or cost of service rates, or, if the water is used for municipal
and industrial purposes, at the greater of the cost of service or
municipal and industrial rates.

\(C\) No transfers authorized by this subsection shall be approved
unless the transfer is between a willing buyer and a willing seller
under such terms and conditions as may be mutually agreed upon.

\(D\) No transfer authorized by this subsection shall be approved unless
the transfer is consistent with State law, including but not limited to
provisions of the California Environmental Quality Act.

\(E\) All transfers authorized by this subsection shall be deemed a
beneficial use of water by the transferor for the purposes of section 8
of the Act of June 17, 1902, 32 Stat. 390, 43 U.S.C. 372.

\(F\) All transfers entered into pursuant to this subsection for uses
outside the Central Valley Project service area shall be subject to a
right of first refusal on the same terms and conditions by entities
within the Central Valley Project service area.

The right of first refusal must be exercised within ninety days from the
date that notice is provided of the proposed transfer. Should an entity
exercise the right of first refusal, it must compensate the transferee
who had negotiated the agreement upon which the right of first refusal
is being exercised for that entity\'s total costs associated with the
development and negotiation of the transfer.

\(G\) No transfer authorized by this subsection shall be considered by
the Secretary as conferring supplemental or additional benefits on
Central Valley Project water contractors as provided in section 203 of
Public Law 97-293 (43 U.S.C. 390(cc)).

\(H\) The Secretary shall not approve a transfer authorized by this
subsection unless the Secretary has determined, consistent with
paragraph 3405(a)(2) of this title, that the transfer will not violate
the provisions of this title or other Federal law and will have no
significant adverse effect on the Secretary\'s ability to deliver water
pursuant to the Secretary\'s Central Valley Project contractual
obligations or fish and wildlife obligations under this title because of
limitations in conveyance or pumping capacity.

\(I\) The water subject to any transfer undertaken pursuant to this
subsection shall be limited to water that would have been consumptively
used or irretrievably lost to beneficial use during the year or years of
the transfer.

\(J\) The Secretary shall not approve a transfer authorized by this
subsection unless the Secretary determines, consistent with paragraph
3405(a)(2) of this title, that such transfer will have no significant
long-term adverse impact on groundwater conditions in the transferor\'s
service area.

\(K\) The Secretary shall not approve a transfer unless the Secretary
determines, consistent with paragraph 3405(a)(2) of this title, that
such transfer will have no unreasonable impact on the water supply,
operations, or financial conditions of the transferor\'s contracting
district or agency or its water users.

\(L\) The Secretary shall not approve a transfer if the Secretary
determines, consistent with paragraph 3405(a)(2) of this title, that
such transfer would result in a significant reduction in the quantity or
decrease in the quality of water supplies currently used for fish and
wildlife purposes, unless the Secretary determines pursuant to findings
setting forth the basis for such determination that such adverse effects
would be more than offset by the benefits of the proposed transfer. In
the event of such a determination, the Secretary shall develop and
implement alternative measures and mitigation activities as integral and
concurrent elements of any such transfer to provide fish and wildlife
benefits substantially equivalent to those lost as a consequence of such
transfer.

\(M\) Transfers between Central Valley Project contractors within
countries, watersheds, or other areas of origin, as those terms are
utilized under California law, shall be deemed to meet the conditions
set forth in subparagraphs (A) and (I) of this paragraph.

\(2\) 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:

\(A\) Decisions on water transfers subject to review by a contracting
district or agency or by the Secretary shall be rendered within ninety
days of receiving a written transfer proposal from the transferee or
transferor. Such written proposal should provide all information
reasonably necessary to determine whether the transfer complies with the
terms and conditions of this subsection.

\(B\) All transfers subject to review by a contracting district or
agency shall be reviewed in a public process similar to that provided
for in section 226 of Pub. L. 97-293.

\(C\) The contracting district or agency or the Secretary shall approve
all transfers subject to review and approval by such entity if such
transfers are consistent with the terms and conditions of this
subsection. To disapprove a transfer, the contracting district or agency
or the Secretary shall inform the transferee and transferor, in writing,
why the transfer does not comply with the terms and conditions of this
subsection and what alternatives, if any, could be included so that the
transfer would reasonably comply with the requirements of this
subsection.

\(D\) If the contracting district or agency or the Secretary fails to
approve or disapprove a proposed transfer within ninety days of
receiving a complete written proposal from the transferee or transferor,
then the transfer shall be deemed approved.

\(3\) Transfers executed after September 30, 1999 shall only be governed
by the provisions of subparagraphs 3405(a)(1)(A)--(C), (E), (G), (H),
(I), (L) and (M) of this title, and by State law.

\(b\) METERING 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 shall inform the Secretary and the State of
California annually as to the monthly volume of surface water delivered
within its boundaries.

\(c\) STATE AND FEDERAL WATER QUALITY STANDARDS. --- 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 be responsible for compliance with all applicable State and
Federal water quality standards applicable to surface and subsurface
agricultural drainage discharges generated within its boundaries. This
subsection shall not affect or alter any legal obligation of the
Secretary to provide drainage services.

\(d\) 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 goals and objectives of this
title through binding agreements executed with or approved by the
Secretary.

\(e\) WATER CONSERVATION STANDARDS. --- The Secretary shall establish
and administer an office on 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.

\(1\) Criteria developed pursuant to this subsection shall be
established within six months following enactment of this title and
shall be reviewed periodically thereafter, but no less than every three
years, with the purpose of promoting the highest level of water use
efficiency reasonably achievable by project contractors using best
available cost-effective technology and best management practices. The
criteria shall include, but not be limited to agricultural water
suppliers\' efficient water management practices developed pursuant to
California State law or reasonable alternatives.

\(2\) The Secretary, through the office established under this
subsection, shall review and evaluate within 18 months following
enactment of this title all existing conservation plans submitted by
project contractors to determine whether they meet the conservation and
efficiency criteria established pursuant to this subsection

\(3\) In developing the water conservation best management practice
criteria required by this subsection, the Secretary shall take into
account and grant substantial deference to the recommendations for
action specific to water conservation and drainage source reduction
proposed in the Final Report of the San Joaquin Valley Drainage Program,
entitled A Management Plan for Agricultural Subsurface Drainage and
Related Problems on the Westside San Joaquin Valley (September 1990).

\(f\) INCREASED REVENUES.  All revenues received by the Secretary as a
result of the increased repayment rates applicable to 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.

\(a\) AMENDMENT TO CENTRAL VALLEY PROJECT AUTHORIZATIONS ACT of August
26, 1937. --- Section 2 of the Act of August 26, 1937 (chapter 832; 50
Stat. 850), as amended, is amended.

\(1\) in the second proviso of subsection (a), by inserting "and
mitigation, protection, and restoration of fish and wildlife" after
"Indian reservations,";

\(2\) in the last proviso of subsection (a), by striking "domestic
uses;" and inserting "domestic uses and fish and wildlife mitigation,
protection and restoration purposes;" and by striking "power" and
inserting "power and fish and wildlife enhancement";

\(3\) by adding at the end the following: "The mitigation for fish and
wildlife losses incurred as a result of construction, operation, or
maintenance of the Central Valley Project shall be based on the
replacement of ecologically equivalent habitat and shall take place in
accordance with the provisions of this title and concurrent with any
future actions which adversely affect fish and wildlife populations or
their habitat but shall have no priority over them."; and,

\(4\) by adding at the end the following: "(e) Nothing in this title
shall affect the State\'s authority to condition water rights permits
for the Central Valley Project."

\(b\) 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. 5 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.

\(A\) This program shall give first priority to measures which protect
and restore natural channel and riparian habitat values through habitat
restoration actions, modifications to Central Valley Project operations,
and implementation of the supporting measures mandated by this
subsection; shall be reviewed and updated every five years; and shall
describe how the Secretary intends to operate the Central Valley Project
to meet the fish, wildlife, and habitat restoration goals and
requirements set forth in this title and other project purposes.

\(B\) As needed to achieve the goals of this program, the Secretary is
authorized and directed to modify Central Valley Project operations to
provide flows of suitable quality, quantity, and timing to protect all
life stages of anadromous fish, except that such flows shall be provided
from the quantity of water dedicated 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 needs for all
Central Valley Project controlled streams and rivers shall be determined
by the Secretary based on recommendations of the U.S. Fish and Wildlife
Service after consultation with the California Department of Fish and
Game.

\(C\) The Secretary shall cooperate with the State of California to
ensure that, to the greatest degree practicable, the specific quantities
of yield dedicated to and managed for fish and wildlife purposes under
this title are credited against any additional obligations of the
Central Valley Project which may be imposed by the State of California
following enactment of this title, including but not limited to
increased flow and reduced export obligations which may be imposed by
the California State Water Resources Control Board in implementing San
Francisco Bay / Sacramento-San Joaquin Delta Estuary standards pursuant
to the review ordered by the California Court of Appeals in U.S. v.
State Water Resources Control Board, 182 Cal.App.3rd 82 (1986), and
that, to the greatest degree practicable, the programs and plans
required by this title are developed and implemented in a way that
avoids inconsistent or duplicative obligations from being imposed upon
Central Valley Project water and power contractors.

\(D\) Costs associated with this paragraph shall be reimbursable
pursuant to existing statutory and regulatory procedures.

\(2\) upon enactment of this title dedicate and manage annually 800,000
acre-feet of Central Valley Project yield for the primary purpose 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. 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.

\(A\) Such quantity of water shall be in addition to the quantities
needed to implement paragraph 3406(d)(1) of this title and in addition
to all water allocated pursuant to paragraph (23) of this subsection for
release to the Trinity River for the purposes of fishery restoration,
propagation, and maintenance; and shall be supplemented by all water
that comes under the Secretary\'s control pursuant to subsections
3406(b)(3), 3408(h)--(i), and through other measures consistent with
subparagraph 3406(b)(1)(B) of this title.

\(B\) Such quantity of water shall be managed pursuant to conditions
specified by the U.S. Fish and Wildlife Service after consultation with
the Bureau of Reclamation and the California Department of Water
Resources and in cooperation with the California Department of Fish and
Game.

\(C\) 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.

\(D\) If the quantity of water dedicated under this paragraph, or any
portion thereof, is not needed for the purposes of this section, based
on a finding by the Secretary, the Secretary is authorized to make such
water available for other project purposes.

\(3\) develop and implement a program in coordination and in conformance
with the plan required under paragraph (1) of this subsection for the
acquisition of a water supply to supplement the quantity of water
dedicated to fish and wildlife purposes under paragraph (2) of this
subsection and to fulfill the Secretary\'s obligations under paragraph
3406(d)(2) of this title. The program should identify how the Secretary
intends to utilize, in particular the following options: improvements in
or modifications of the operations of the project; water banking;
conservation; transfers; conjunctive use; and temporary and permanent
land fallowing, including purchase, lease, and option of water, water
rights, and associated agricultural land.

\(4\) develop and implement a program to mitigate for fishery impacts
associated with operations of the Tracy Pumping Plant. Such program
shall include, but is not limited to improvement or replacement of the
fish screens and fish recovery facilities and practices associated with
the Tracy Pumping Plant. Costs associated with this paragraph shall be
reimbursed in accordance with the following formula: 37.5 percent shall
be reimbursed as main project features, 37.5 percent shall be considered
a nonreimbursable Federal expenditure, and 25 percent shall be paid by
the State of California The reimbursable share of funding for this and
other facility repairs, improvements, and construction shall be
allocated among project water and power users in accordance with
existing project cost allocation procedures.

\(5\) develop and implement a program to mitigate for fishery impacts
resulting from operations of the Contra Costa Canal Pumping Plant No.1.
Such program shall provide for construction and operation of fish
screening and recovery facilities, and for modified practices and
operations. Costs associated with this paragraph shall be reimbursed in
accordance with the following formula: 37.5 percent shall be reimbursed
as main project features, 37.5 percent shall be considered a
nonreimbursable Federal expenditure, and 25 percent shall be paid by the
State of California.

\(6\) install and operate a structural temperature control device at
Shasta Dam and develop and implement modifications in CVP operations as
needed to assist in the Secretary\'s efforts to control water
temperatures in the upper Sacramento River in order to protect
anadromous fish in the upper Sacramento River. Costs associated with
planning and construction of the structural temperature control device
shall be reimbursed in accordance with the following formula: 37.5
percent shall be reimbursed as main project features, 37.5 percent shall
be considered a nonreimbursable Federal expenditure, and 25 percent
shall be paid by the State of California.

\(7\) meet flow standards and objectives and diversion limits set forth
in all laws and judicial decisions that apply to Central Valley Project
facilities, including, but not limited to, provisions of this title and
all obligations of the United States under the "Agreement Between the
United States and the Department of Water Resources of the State of
California for Coordinated Operation of the Central Valley Project and
the State Water Project" dated May 20, 1985, as well as Pub. L 99-546.

\(8\) make use of short pulses of increased water flows to increase the
survival of migrating anadromous fish moving into and through the
Sacramento-San Joaquin Delta and Central Valley rivers and streams.

\(9\) develop and implement a program to eliminate, to the extent
possible, losses of anadromous fish due to flow fluctuations caused by
the operation of any Central Valley Project storage or re-regulating
facility. The program shall be patterned where appropriate after the
agreement between the California Department of Water Resources and the
California Department of Fish and Game with respect to the operation of
the California State Water Project Oroville Dam complex.

\(10\) develop and implement measures to minimize fish passage problems
for adult and juvenile anadromous fish at the Red Bluff Diversion Dam in
a manner that provides for the use of associated Central Valley Project
conveyance facilities for delivery of water to the Sacramento Valley
National Wildlife Refuge complex in accordance with the requirements of
subsection (d) of this section. Costs associated with implementation of
this paragraph shall be reimbursed in accordance with the following
formula: 37.5 percent shall be reimbursed as main project features, 37.5
percent shall be considered a nonreimbursable Federal expenditure, and
25 percent shall be paid by the State of California.

\(11\) rehabilitate and expand the Coleman National Fish Hatchery by
implementing the U.S. Fish and Wildlife Service\'s Coleman National Fish
Hatchery Development Plan, and modify the Keswick Dam Fish Trap to
provide for its efficient operation at all project flow release levels
and modify the basin below the Keswick Dam spillway to prevent the
trapping of fish. Costs associated with implementation of this paragraph
shall be reimbursed in accordance with the following formula: 50 percent
shall be reimbursed as main project features and 50 percent shall be
considered a nonreimbursable Federal expenditure.

\(12\) develop and implement a comprehensive program to provide flows to
allow sufficient spawning, incubation, rearing, and outmigration for
salmon and steelhead from Whiskeytown Dam as determined by instream flow
studies conducted by the California Department of Fish and Game after
Clear Creek has been restored and a new fish ladder has been constructed
at the McCormick-Saeltzer Dam. Costs associated with channel
restoration, passage improvements, and fish ladder construction required
by this paragraph shall be allocated 50 percent to the United States as
a nonreimbursable expenditure and 50 percent to the State of California.
Costs associated with providing the flows required by this paragraph
shall be allocated among project purposes.

\(13\) develop and implement a continuing program for the purpose of
restoring and replenishing, as needed, spawning gravel lost due to the
construction and operation of Central Valley Project dams, bank
protection projects, and other actions that have reduced the
availability of spawning gravel and rearing habitat in the Upper
Sacramento River from Keswick Dam to Red Bluff Diversion Dam in the
American and Stanislaus Rivers downstream from the Nimbus and Goodwin
Dams, respectively. The program shall include preventive measures, such
as re-establishment of meander belts and limitations on future bank
protection activities, in order to avoid further losses of instream and
riparian habitat. Costs associated with implementation of this paragraph
shall be reimbursed in accordance with the following formula: 37.5
percent shall be reimbursed as main project features, 37.5 percent shall
be considered a nonreimbursable Federal expenditure, and 25 percent
shall be paid by the State of California.

\(14\) develop and implement a program which provides for modified
operations and new or improved control structures at the Delta Cross
Channel and Georgiana Slough during times when significant numbers of
striped bass eggs, larvae, and juveniles approach the Sacramento River
intake to the Delta Cross Channel or Georgiana Slough. Costs associated
with implementation of this paragraph shall be reimbursed in accordance
with the following formula: 37.5 percent shall be reimbursed as main
project features, 37.5 percent shall be considered a nonreimbursable
Federal expenditure, and 25 percent shall be paid by the State of
California.

\(15\) construct, in cooperation with the State of California and in
consultation with local interests, a barrier at the head of Old River in
the Sacramento-San Joaquin Delta to be operated on a seasonal basis to
increase the survival of young outmigrating salmon that are diverted
from the San Joaquin River to Central Valley Project and Sate Water
Project pumping plants and in a manner that does not significantly
impair the ability of local entities to divert water. The costs
associated with implementation of this paragraph shall be reimbursed in
accordance with the following formula: 37.5 percent shall be reimbursed
as main project features, 37.5 percent shall be considered a
nonreimbursable Federal expenditure, and 25 percent shall be paid by the
State of California.

\(16\) establish, in cooperation with independent entities and the State
of California, a comprehensive assessment program to monitor fish and
wildlife resources in the Central Valley to assess the biological
results and effectiveness of actions implemented pursuant to this
subsection. 37.5 percent of the costs associated with implementation of
this paragraph shall be reimbursed as main project features, 37.5
percent shall be considered a nonreimbursable Federal expenditure, and
25 percent shall be paid by the State of California.

\(17\) develop and implement a program to resolve fishery passage
problems at the Anderson-Cottonwood Irrigation District Diversion Dam as
well as upstream stranding problems related to Anderson-Cottonwood
­irrigation District Diversion Dam operations. Costs associated with
implementation of this paragraph shall be allocated 50 percent to the
United States as a nonreimbursable expenditure and 50 percent to the
State of California.

\(18\) if requested by the State of California, assist in developing and
implementing management measures to restore the striped bass fishery of
the Bay-Delta estuary. Such measures shall be coordinated with efforts
to protect and restore native fisheries. Costs associated with
implementation of this paragraph shall be allocated 50 percent to the
United States and 50 percent to the State of California. The United
States\' share of costs associated with implementation of this paragraph
shall be nonreimbursable.

\(19\) reevaluate existing operational criteria in order to maintain
minimum carryover storage at Sacramento and Trinity River reservoirs to
protect and restore the anadromous fish of the Sacramento and Trinity
Rivers in accordance with the mandates and requirements of this
subsection and subject to the Secretary\'s responsibility to fulfill all
project purposes, including agricultural water delivery.

\(20\) participate with the State of California and other federal
agencies in the implementation of the on-going program to mitigate fully
for the fishery impacts associated with operations of the Glenn-Colusa
Irrigation District\'s Hamilton City Pumping Plant. Such participation
shall include replacement of the defective fish screens and fish
recovery facilities associated with the Hamilton City Pumping Plant.
This authorization shall not be deemed to supersede or alter existing
authorizations for the participation of other federal agencies in the
mitigation program. Seventy-five percent shall be considered a
nonreimbursable Federal expenditure, and 25 percent shall be paid by the
State of California.

\(21\) assist the State of California in efforts to develop and
implement measures to avoid losses of juvenile anadromous fish resulting
from unscreened or inadequately screened diversions on the Sacramento
and San Juaquin rivers, their tributaries, the Sacramento-San Joaquin
Delta, and the Suisun Marsh. Such measures shall include but shall not
be limited to construction of screens on unscreened diversions,
rehabilitation of existing screens, replacement of existing
non­functioning screens, and relocation of diversions to less
fishery-sensitive areas. The Secretary\'s share of costs associated with
activities authorized under this paragraph shall not exceed 50 percent
of the total cost of any such activity.

\(22\) provide such incentives as the Secretary determines to be
appropriate or necessary, consistent with the goals and objectives of
this title, to encourage farmers to participate in a program, which the
Secretary shall develop, under which such farmers will keep fields
flooded during appropriate time periods for the purposes of waterfowl
habitat creation and maintenance and for Central Valley Project yield
enhancement; Provided, That such incentives shall not exceed \$2,000,000
annually, either directly or through credits against other contractual
payment obligations, including the pricing waivers authorized under
subsection 34O5(d) of this tile; Provided further, That the holder of
the water contract shall pass such incentives through to farmers
participating in the program, less reasonable contractor costs, if any;
And provided further, That such water may be transferred subject to
section 3405(a) of this title only if the farmer waives all rights to
such incentives. This provision shall terminate by the year 2002.

\(23\) in order to meet Federal trust responsibilities to protect the
fishery resources of the Hoopa Valley Tribe, and to meet the fishery
restoration goals of the Act of October 24, 1984, Pub. L. 98-541,
provide through the Trinity River Division, for water years 1992 through
1996, an instream release of water to the Trinity River of not less than
340,000 acre-feet per year for the purposes of fishery restoration,
propagation, and maintenance and,

\(A\) by September 30, 1996, the Secretary, after consultation with the
Hoopa Valley Tribe, shall complete the Trinity River Flow Evaluation
Study currently being conducted by the U.S. Fish and Wildlife Service
under the mandate of the Secretarial Decision of January 14, 1981, in a
manner which insures the development of recommendations, based on the
best available scientific data, regarding permanent instream fishery
flow requirements and Trinity River Division operating criteria and
procedures for the restoration and maintenance of the Trinity River
fishery; and

\(B\) not later than December 31, 1996, the Secretary shall forward the
recommendations of the Trinity River Flow Evaluation Study, referred to
in subparagraph (A) of this paragraph, to the Committee on Energy and
Natural Resources and the Select Committee on Indian Affairs of the
Senate and the Committee on Interior and Insular Affairs and the
Committee on Merchant Marine and Fisheries of the House of
Representatives. If the Secretary and the Hoopa Valley Tribe concur in
these recommendations, any increase to the minimum Trinity River
instream fishery releases established under this paragraph and the
operating criteria and procedures referred to in subparagraph (A) shall
be implemented accordingly. If the Hoopa Valley Tribe and the Secretary
do not concur, the minimum Trinity River instream fishery releases
established under this paragraph shall remain in effect unless increased
by an Act of Congress, appropriate judicial decree, or agreement between
the Secretary and the Hoopa Valley Tribe. Costs associated with
implementation of this paragraph shall be reimbursable as operation and
maintenance expenditures pursuant to existing law.

If the Secretary and the State of California determine that long-term
natural fishery productivity in all Central Valley Project controlled
rivers and streams resulting from implementation of this section exceeds
that which existed in the absence of Central Valley Project facilities,
the costs of implementing those measures which are determined to provide
such enhancement shall become credits to offset reimbursable costs
associated with implementation of this subsection.

\(c\) SAN JOAQUIN AND STANISLAUS RIVERS. --- The Secretary shall, by not
later than September 30, 1996:

\(1\) develop a comprehensive plan, which is reasonable, prudent, and
feasible, to address fish, wildlife, and habitat concerns on the San
Joaquin River, including but not limited to the streamflow, channel,
riparian habitat, and water quality improvements that would be needed to
reestablish where necessary and to sustain naturally reproducing
anadromous fisheries from Friant Dam to its confluence with the San
Francisco Bay / Sacramento-San Joaquin Delta Estuary. Such plan shall be
developed in cooperation with the California Department of Fish and Game
and in coordination with the San Joaquin River Management Program under
development by the State of California; shall comply with and contain
any documents required by the National Environmental Policy Act and
contain findings setting forth the basis for the Secretary\'s decision
to adopt and implement the plan as well as recommendations concerning
the need for subsequent Congressional action, if any; and shall
incorporate, among other relevant factors, the potential contributions
of tributary streams as well as the alternatives to be investigated
under paragraph (2) of this subsection. During the time that the
Secretary is developing the plan provided for in this subsection, and
until such time as Congress has authorized the Secretary to implement
such plan, with or without modifications, the Secretary shall not, as a
measure to implement this title, make releases for the restoration of
flows between Gravelly Ford and the Mendota Pool and shall not
thereafter make such releases as a measure to implement this title
without a specific Act of Congress authorizing such releases. In lieu of
such requirement, and until such time as flows of sufficient quantity,
quality and timing are provided at and below Gravelly Ford to meet the
anadromous fishery needs identified pursuant to such plan, if any,
entities who receive water from the Friant Division of the Central
Valley Project shall be assessed, in addition to all other applicable
charges, a \$4.00 per acre-foot surcharge for all Project water
delivered on or before September 30, 1997; a \$5.00 per acre-foot
surcharge for all Project water delivered after September 30, 1997 but
on or before September 30, 1999; and a \$7.00 per acre-foot surcharge
for all Project water delivered thereafter, to be covered into the
Restoration Fund.

\(2\) in the course of preparing the Stanislaus River Basin and
Calaveras River Water Use Program Environmental Impact Statement and in
consultation with the State of California, affected counties, and other
interests, evaluate and determine existing and anticipated future basin
needs in the Stanislaus River Basin. In the course of such evaluation,
the Secretary shall investigate alternative storage, release, and
delivery regimes, including but not limited to conjunctive use
operations, conservation strategies, exchange arrangements, and the use
of base and channel maintenance flows, in order to best satisfy both
basin and out-of-basin needs consistent, on a continuing basis, with the
limitations and priorities established in the Act of October 23, 1962
(76 Stat. 173). For the purposes of this subparagraph, "basin needs"
shall include water supply for agricultural, municipal and industrial
uses, and maintenance and enhancement of water quality, and fish and
wildlife resources within the Stanislaus River Basin as established by
the Secretary\'s June 29, 1981 Record of Decision; and "out-of-basin"
needs shall include all such needs outside of the Stanislaus River
Basin, including those of the San Francisco Bay / Sacramento-San Joaquin
Delta Estuary and those of the San Joaquin River under paragraph (1) of
this subsection.

\(d\) CENTRAL VALLEY REFUGES AND WILDLIFE HABITAT AREAS. --- In support
of the objectives of the Central Valley Habitat Joint Venture and in
furtherance of the purposes of this title, the Secretary shall provide,
either directly or through contractual agreements with other appropriate
parties, firm water supplies of suitable quality to maintain and improve
wetland habitat areas on units of the National Wildlife Refuge System in
the Central Valley of California; on the Gray Lodge, Los Baños, Volta,
North Grasslands, and Mendota state wildlife management areas; and on
the Grasslands Resources Conservation District in the Central Valley of
California.

\(1\) Upon enactment of this title, the quantity and delivery schedules
of water measured at the boundaries of each wetland habitat area
described in this paragraph shall be in accordance with Level 2 of the
"Dependable Water Supply Needs" table for those habitat areas as set
forth in the Refuge Water Supply Report and two-thirds of the water
supply needed for full habitat development for those habitat areas
identified in the San Joaquin Basin Action Plan / Kesterson Mitigation
Action Plan Report prepared by the Bureau of Reclamation. Such water
shall be provided through long-term contractual agreements with
appropriate parties and shall be supplemented by the increment of water
provided for in paragraph (1) of this subsection; Provided, That the
Secretary shall be obligated to provide such water whether or not such
1ong-term contractual agreements are in effect. In implementing this
paragraph, the Secretary shall endeavor to diversify sources of supply
in order to minimize possible adverse effects upon Central Valley
Project contractors.

\(2\) Not later than ten years after enactment of this title, the
quantity and delivery schedules of water measured at the boundaries of
each wetland habitat area described in this paragraph shall be in
accordance with Level 4 of the "Dependable Water Supply Needs" table for
those habitat areas as set forth in the Refuge Water Supply Report and
the full water supply needed for full habitat development for those
habitat areas identified in the San Joaquin Basin Action Plan /
Kesterson Mitigation Action Plan Report prepared by the Bureau of
Reclamation. The quantities of water required to supplement the
quantities provided under paragraph (1) of this subsection shall be
acquired by the Secretary in cooperation with the State of California
and in consultation with the Central Valley Habitat Joint Venture and
other interests in cumulating increments of not less than ten percent
per annum through voluntary measures which include water conservation,
conjunctive use, purchase, lease, donations, or similar activities, or a
combination of such activities which do not require involuntary
reallocations of project yield.

\(3\) All costs associated with implementation of paragraph (1) of this
subsection shall be reimbursable pursuant to existing law. Incremental
costs associated with implementation of paragraph (2) of this subsection
shall be fully allocated in accordance with the following formula: 75
percent shall be deemed a nonreimbursable Federal expenditure; and 25
percent shall be allocated to the State of California for recovery
through direct reimbursements or through equivalent in-kind
contributions.

\(4\) The Secretary may temporarily reduce deliveries of the quantity of
water dedicated under paragraph (1) of this subsection 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. For the purpose
of shortage allocation, the priority or priorities applicable to the
increment of water provided under paragraph (2) of this subsection shall
be the priority or priorities which applied to the water in question
prior to its transfer to the purpose of providing such increment.

\(5\) The Secretary is authorized and directed to construct or to
acquire from non-Federal entities such water conveyance facilities,
conveyance capacity, and wells as are necessary to implement the
requirements of this subsection; Provided, That such authorization shall
not extend to conveyance facilities in or around the Sacramento-San
Joaquin Delta Estuary. Associated construction or acquisition costs
shall be reimbursable pursuant to existing law in accordance with the
cost allocations set forth in paragraph (3) of this subsection.

\(6\) The Secretary, in consultation with the State of California, the
Central Valley Habitat Joint Venture, and other interests, shall
investigate and report on the following supplemental actions by not
later than September 30, 1997:

\(A\) alternative means of improving the reliability and quality of
water supplies currently available to privately owned wetlands in the
Central Valley and the need, if any, for additional supplies; and

\(B\) water supply and delivery requirements necessary to permit full
habitat development for water dependent wildlife on 120,000 acres
supplemental to the existing wetland habitat acreage identified in Table
8 of the Central Valley Habitat Joint Venture\'s "Implementation Plan"
dated April 19, 1990, as well as feasible means of meeting associated
water supply requirements.

\(e\) SUPPORTING INVESTIGATIONS. --- Not later than five years after the
date of enactment of this title, the Secretary shall investigate and
provide recommendations to the Committee on Energy and Natural Resources
of the Senate and the Committees on Interior and Insular Affairs and
Merchant Marine and Fisheries of the House on the feasibility, cost, and
desirability of developing and implementing each of the following,
including, but not limited to, the impact on the project, its users, and
the State of California:

\(1\) measures to maintain suitable temperatures for anadromous fish
survival in the Sacramento and San Joaquin rivers and their tributaries,
and the Sacramento-San Joaquin Delta by controlling or relocating the
discharge of irrigation return flows and sewage effluent, and by
restoring riparian forests;

\(2\) opportunities for additional hatchery production to mitigate the
impacts of water development and operations on, or enhance efforts to
increase Central Valley fisheries; Provided, That additional hatchery
production shall only be used to supplement or to re-establish natural
production while avoiding adverse effects on remaining wild stocks;

\(3\) measures to eliminate barriers to upstream and downstream
migration of salmonids in the Central Valley, including but not limited
to screening programs, barrier removal programs and programs for the
construction or rehabilitation of fish ladders on tributary streams;

\(4\) installation and operation of temperature control devices at
Trinity Dam and Reservoir to assist in the Secretary\'s efforts to
conserve cold water for fishery protection purposes;

\(5\) measures to provide for modified operations and new or improved
control structures at the Delta Cross Channel and Georgiana Slough to
assist in the successful migration of anadromous fish; and

\(6\) other measures which the Secretary determines would protect,
restore, and enhance natural production of salmon and steel-head trout
in tributary streams of the Sacramento and San Joaquin Rivers, including
but not limited to the Merced, Mokulumne, and Calaveras Rivers and
Battle, Butte, Deer, Elder, Mill, and Thomes Creeks.

\(f\) REPORT ON PROJECT FISHERY IMPACTS. --- The Secretary, in
consultation with the Secretary of Commerce, the State of California,
appropriate Indian tribes, and other appropriate public and private
entities, shall investigate and report on all effects of the Central
Valley Project on anadromous fish populations and the fisheries,
communities, tribes, businesses and other interests and entities that
have now or in the past had significant economic, social or cultural
association with those fishery resources. The Secretary shall provide
such report to the Committee on Energy and Natural Resources of the
Senate and the Committees on Interior and Insular Affairs and Merchant
Marine and Fisheries of the House of Representatives not later than two
years after the date of enactment of this title.

\(g\) ECOSYSTEM AND WATER SYSTEM OPERATIONS MODELS. --- The Secretary,
in cooperation with the State of California and other relevant interests
and experts, shall develop readily usable and broadly available models
and supporting data to evaluate the ecologic and hydrologic effects of
existing and alternative operations of public and private water
facilities and systems in the Sacramento, San Joaquin, and Trinity River
watersheds. The primary purpose of this effort shall be to support the
Secretary\'s efforts in fulfilling the requirements of this title
through improved scientific understanding concerning, but not limited
to, the following:

\(1\) a comprehensive water budget of surface and groundwater supplies,
considering all sources of inflow and outflow available over extended
periods;

\(2\) related water quality conditions and improvement alternatives,
including improved temperature prediction capabilities as they relate to
storage;

\(3\) surface-ground and stream-wetland interactions;

\(4\) measures needed to restore anadromous fisheries to optimum and
sustainable levels in accordance with the restored carrying capacities
of Central Valley rivers, streams, and riparian habitats;

\(5\) development and use of base flows and channel maintenance flows to
protect and restore natural channel and riparian habitat values;

\(6\) implementation of operational regimes at State and Federal
facilities to increase springtime flow releases, retain additional
floodwaters, and assist in restoring both upriver and downriver riparian
habitats;

\(7\) measures designed to reach sustainable harvest levels of resident
and anadromous fish, including development and use of systems of
tradable harvest rights;

\(8\) opportunities to protect and restore wetland and upland habitats
throughout the Central Valley;

\(9\) measures to enhance the firm yield of existing Central Valley
Project facilities, including improved management and operations,
conjunctive use opportunities, development of offstream storage, levee
setbacks, and riparian restoration.

All studies and investigations shall take into account and be fully
consistent with the fish, wildlife, and habitat protection and
restoration measures required by this title or by any other state or
federal law. Seventy-five percent of the costs associated with
implementation of this subsection shall be borne by the United States as
a nonreimbursable cost; the remaining 25 percent shall be borne by the
State of California.

\(h\) The Secretary shall enter into a binding cost-share agreement with
the State of California with respect to the timely reimbursement of
costs allocated to the State in this title. Such agreement shall provide
for consideration of the value of direct reimbursements, specific
contributions to the Restoration Fund, and water, conveyance capacity,
or other contributions in-kind that would supplement existing programs
and that would, as determined by the Secretary, materially contribute to
attainment of the goals and objectives of this title.

SEC. 3407. RESTORATION FUND.

\(a\) RESTORATION FUND ESTABLISHED. --- There is hereby established 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 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.

\(b\) AUTHORIZATION OF APPROPRIATIONS. --- Such sums as are necessary,
up to \$50,000,000 per year (October 1992 price levels), are authorized
to be appropriated to the Secretary to be derived from the Restoration
Fund to carry out programs, projects, plans, and habitat restoration,
improvement, and acquisition provisions of this title. Any funds paid
into the Restoration Fund by Central Valley Project water and power
contractors and which are also used to pay for the projects and
facilities set forth in section 3406(b), shall act as an offset against
any water and power contractor cost share obligations that are otherwise
provided for in this title.

\(c\) 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, wildfish, and habitat restoration
programs and projects under this title.

\(2\) The payment described in this subsection shall be established at
amounts that will result in collection, during each fiscal year, of an
amount that can be reasonably expected to equal the amount appropriated
each year, subject to subsection (d) of this section, and in combination
with all other receipts identified under this title, to carry out the
purpose identified in subsection (b) of this section; Provided, That, if
the total amount appropriated under subsection (b) of this section for
the fiscal years following enactment of this title does not equal
\$50,000,000 per year (October 1992 price levels) on an average annual
basis, the Secretary shall impose such charges in fiscal year 1998 and
in each fiscal year thereafter, subject to the limitations in subsection
(d) of this section, as may be required to yield in fiscal year 1998 and
in each fiscal year thereafter total collections equal to \$50,000,000
per year (October 1992 price levels) on a three-year rolling average
basis for each fiscal year that follows enactment of this title.

\(d\) ADJUSTMENT AND ASSESSMENT OF MITIGATION AND RESTORATION PAYMENTS.
---

\(1\) In assessing the annual payments to carry out subsection (c) of
this section, the Secretary shall, prior to each fiscal year, estimate
the amount that could be collected in each fiscal year pursuant to
subparagraphs 2(A) and (B) of this subsection. The Secretary shall
decrease all such payments on a proportionate basis from amounts
contained in the estimate so that an aggregate amount is collected
pursuant to the requirements of paragraph (c)(2) of this section.

\(2\) 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 \$6.00 per
acre-foot (October 1992 price levels) for agricultural water sold and
delivered by the Central Valley Project, and \$12.00 per acre-foot
(October 1992 price levels) for municipal and industrial water sold and
delivered by the Central Valley Project; Provided further, that the
charge imposed on agricultural water shall be reduced, if necessary, to
an amount within the probability 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 \$25.00 per acre-foot (October 1992 price levels) for Central
Valley Project water sold or transferred to a 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 undated under section 3406 of
this title, 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.

\(e\) FUNDING TO NON-FEDERAL ENTITIES. --- If the Secretary determines
that the State of California or an agency or subdivision thereof, an
Indian tribe, or a nonprofit entity concerned with restoration,
protection, or enhancement Of fish, wildlife, habitat, or environmental
values is able to assist in implementing any action authorized by this
title in an efficient, timely, and cost effective manner, the Secretary
is authorized to provide funding to such entity on such terms and
conditions as he deems necessary to assist in implementing the
identified action.

\(f\) RESTORATION FUND FINANCIAL REPORT. --- The Secretary shall, not
later than the first full fiscal year after enactment of this title, and
annually thereafter, submit a detailed report to the Committee on Energy
and Natural Resources and the Committee on Appropriations of the Senate,
and the Committee on Interior and Insular Affairs, the Committee on
Merchant Marine and Fisheries, and the Committee on Appropriations of
the House of Representatives. Such report shall describe all receipts to
and uses made of monies within the Restoration Fund and the Restoration
Account during the prior fiscal year and shall include the Secretary\'s
projection with respect to receipts to and uses to be made of the finds
during the next upcoming fiscal year.

SEC. 3408. ADDITIONAL AUTHORITIES.

\(a\) REGULATIONS AND AGREEMENTS AUTHORIZED. --- The Secretary is
authorized and directed to promulgate such regulations and enter into
such agreements as may be necessary to implement the intent, purposes
and provisions of this title.

\(b\) USE OF ELECTRICAL ENERGY. --- Electrical energy used to operate
and maintain facilities developed for fish and wildlife purposes
pursuant to this title, including that used for groundwater development,
shall be deemed as Central Valley Project power and shall, if
reimbursable, be repaid in accordance with Reclamation law at a price
not higher than the lowest price paid by or charged to other Central
Valley Project contractors.

\(c\) 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 non-profit 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 Pub. L. 99-546 (100 Stat. 3051).

\(d\) USE OF PROJECT FACILITIES FOR WATER BANKING. --- The Secretary, in
consultation with the State of California, is authorized to enter into
agreements to allow project contracting entities to use project
facilities, where such facilities are not otherwise committee or
required to fulfill project purposes or other Federal obligations, for
supplying carry-over storage of irrigation and other water for drought
protection, multiple-benefit credit-storage operations, and other
purposes. The use of such water shall be consistent with and subject to
State law. All or a portion of the water provided for fish and wildlife
under is title may be banked for fish and wildlife purposes in
accordance with this subsection.

\(e\) LIMITATION ON CONSTRUCTION. --- This title does not and shall not
be interpreted to authorize construction of water storage facilities,
nor shall it limit the Secretary\'s ability to participate in water
banking or conjunctive use programs.

\(f\) 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 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.
Such report shall include recommendations for authorizing legislation or
other measures, if any, needed to implement the intent, purposes and
provisions of this title.

\(g\) RECLAMATION LAW. --- This title shall amend and supplement the Act
of June 17, 1902, and Acts supplementary thereto and amendatory thereof.

\(h\) 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) 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), 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 --

\(A\) would, if permanently retired from irrigation, improve water
conservation by a district, or improve the quality of an irrigation
district\'s agricultural wastewater and assist the district in
implementing the provisions of a water conservation plan approved under
section 210 of the Reclamation Reform Act of 1982 and agricultural
wastewater management activities developed pursuant to recommendations
specific to water conservation, drainage source reduction, and land
retirement contained in the final report of the San Joaquin Valley
Drainage Program (September, 1990); or

\(B\) are no longer suitable for sustained agricultural production
because of permanent damage resulting from severe drainage or
agricultural wastewater management problems, groundwater withdrawals, or
other causes.

\(i\) WATER CONSERVATION. ---

\(1\) The Secretary is authorized to undertake, in cooperation with
Central Valley Project irrigation contractors, water conservation
projects or measures needed to meet the requirements of this title. The
Secretary shall execute a cost-sharing agreement for any such project or
measure undertaken. Under such agreement, the Secretary is authorized to
pay up to 100 percent of the costs of such projects or measures. Any
water saved by such projects or measures shall be governed by the
conditions of subparagraph 3405(a)(1) (A) and (J) of this title, and
shall be made available to the Secretary in proportion to the
Secretary\'s contribution to the total cost of such project or measure.
Such water shall be used by the Secretary to meet the Secretary\'s
obligations under this title, including the requirements of paragraph
3405(b)(3). Such projects or measures must be implemented fully by
September 30, 1999.

\(2\) There are authorized to be appropriated through the end of fiscal
year 1998 such sums as may be necessary to carry out the provisions of
this subsection. Funds appropriated under this subsection shall be
nonreimbursable Federal expenditure.

\(j\) PROJECTED YIELD INCREASE. --- In order to minimize adverse
effects, if any, 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:

\(1\) improvements in, modification of, or additions to the facilities
and operations of the project;

\(2\) conservation;

\(3\) transfers;

\(4\) conjunctive use;

\(5\) purchase of water;

\(6\) purchase and idling of agricultural land; and

\(7\) direct purchase of water rights.

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.

\(k\) Except as specifically provided in this title, nothing in this
title is intended to alter the terms of any final judicial decree
confirming or determining water rights.

SEC. 3409. ENVIRONMENTAL REVIEW.

Not later than three years after the date of enactment of this title,
the Secretary shall prepare and complete a programmatic environmental
impact statement pursuant to the National Environmental Policy Act
analyzing the direct and indirect impacts and benefits of implementing
this title, including all fish, wildlife, and habitat restoration
actions and the potential renewal of all existing Central Valley Project
water contracts. Such statement shall consider impacts and benefits
within the Sacramento, San Joaquin, and Trinity River basins, and the
San Francisco Bay / Sacramento-San Joaquin River Delta Estuary. The cost
of the environmental impact statement described in this section shall be
treated as a capital expense in accordance with Reclamation law.

SEC. 3410. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be necessary to
carry out the provisions of this title. Funds appropriated under this
title shall remain available until expended without fiscal year
limitation.

SEC. 3411. COMPLIANCE WITH STATE WATER LAW AND COORDINATED OPERATIONS
AGREEMENT.

\(a\) Notwithstanding any other provision of this title, the Secretary
shall, prior to the reallocation of water from any purpose of use or
place of use specified within applicable Central Valley Project water
rights permits and licenses to a purpose of use or place of use not
specified within said permits or licenses, obtain a modification in
those permits and licenses, in a manner consistent with the provisions
of applicable State law, to allow such change in purpose of use or place
of use.

\(b\) The Secretary, in the implementation of the provisions of this
title, shall fully comply with the United States\' obligations as set
forth in the "Agreement Between the United Sates of America and the
Department of Water Resources of the State of California for Coordinated
Operation of the Central Valley Project and the State Water Project"
dated May 20, 1985, and the provisions of Pub. L 99-546; and shall take
no action which shifts an obligation that otherwise should be borne by
the Central Valley Project to any other lawful water rights permittee or
licensee

SEC. 3412. EXTENSION OF THE TEHAMA-COLUSA CANAL SERVICE AREA.

The first paragraph of section 2 of the Act of September 26, 1950 (64
Stat. 1036), as amended by the Act of August 19, 1967 (81 Stat. 167),
and the Act of December 22, 1980 (94 Stat. 3339), authorizing the
Sacramento Valley Irrigation Canals, Central Valley Project, California,
is further amended by striking "Tehama, Glenn, and Colusa Counties, and
those portions of Yolo County within the boundaries of the Colusa
County, Dunnigan, and Yolo-­Zamora water districts or" and inserting
"Tehama, Glenn, Colusa, Solano, and Napa Counties, those portions of
Yolo County within the boundaries of Colusa Water District, Dunnigan
Water District, Yolo-Zamora Water District, and Yolo County Flood
Control and Water Conservation District, or"

END