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ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

October 1, 2006 - September 30, 2007 (Actual) 

October 1, 2008 - September 30, 2009 (Projected) 

September 2008 

Bureau of Reclamation 

United States Department of the Interior 
.. 

TABLE OF CONTENTS 

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . .. 1 

Restoration Fund Revenues and Expenditures for Fiscal Year 2007 (Actual) and Fiscal Year 

2009 (Projected) (Schedule 1) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 6 

Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2007 (Actual) and Fiscal 

Year 2009 (Projected) (Schedule 2) . . . . .. . .. . . . .. . .. . . . .. . . .. . .. . .. . . . . .. . .. . . .. .. . .. . . . . .. . .. . . . . . .. . 7 

Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2007 (Actual) and Fiscal Year 

2009 (Projected) (Schedule 3) .............. .. ................................................... ; .. .. .. 8 

Restoration Fund Expenditures for Fiscal Year 2007 (Actual) and Fiscal Year 2009 (Projected) 

(Schedule 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 9 
CENTRALVALLEYPROJECTIMPROVEMENTACT 

ANNUAL FINANCIAL REPORT 

EXECUTIVE SUMMARY 

Subsection 3407(f) of the Central Valley Project Improvement Act (CVPIA), Title XXXIV of 

Public Law 102-575, requires an annual financial report to the Senate Committee on Energy and 

Natural Resources, the Senate Committee on Appropriations, the House Committee on Natural 

Resources, and the House Committee on Appropriations. This is the fifteenth annual financial 

report which describes all actual Restoration Fund revenues (receipts) and expenditures (uses) 

during Fiscal Year (FY) 2007 as well as projected Restoration Fund revenues and expenditures 

during FY2009. For purposes of this report, revenues are actual receipts processed. 

In FY 2007, the Bureau of Reclamation (Reclamation) collected approximately $40.1 million 

into the Restoration Fund and spent $55.5 million on habitat restoration, improvement, and 

acquisition, atrd other fish and wildlife restoration activities. For FY2009, the projection for 

receipts is approximately $56.1 million into the Restoration Fund and $48.6 million for, ' · 

expenditures. Schedule 1 provides an overall view of revenues and expenditures. Schedule 2 

and 3 details Restoration Fund receipts for Friant Division surcharges and restoration charges, 

respectively. Finally, schedule 4 details Restoration Fund expenditures. 

This report does not include water and related resources appropriations, State of California cost 

share funding and CALFED Bay-Delta funding. These three funding sources are in addition to 

the Restoration Fund and with the Restoration Fund compose the annual CVPIA program. Each 

funding source is considered in allocating funds to individual CVPIA activities and coordinated 

with the CALFED Bay-Delta Program to best ensure compatibility with and to complement 

CALFED initiatives. Overlapping CVPIA and CALFED areas are integrated as a way of using 

the strengths of both programs to maximize performance and meet program objectives. It is 

anticipated that these processes will result in a broad-based ecosystem management strategy 

wherein all parties join together in a partnership in their efforts toward mitigation and restoration 

of the environment. 

Challenges facing Reclamation include pending legislation- namely, House Resolution 24, San 

Joaquin River Restoration Settlement Act, which if passed will divert approximately $7.5 million 

in projected revenues to the San Joaquin River Restoration. Additional challenges facing the 

Restoration Fund include consecutive drought-years, which would shift the burden of Restoration 

Fund revenues from water contractors to power contractors. 

Background 

In 1992, Congress passed the Central Valley Project Improvement Act, which amended the 

previous authorization of California's Central Valley Project (CVP), to include fish and wildlife 

protection, restoration, enhancement, and mitigation as project purposes having equal priority 

with power generation, irrigation, and domestic water uses. Congress directed the Secretary of 

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the Interior, through Reclamation and the U.S. Fish and Wildlife Service (F&W Service), to 

operate the CVP consistent with the purposes of the CVPIA, to meet the Federal trust 

responsibilities to protect the fishery resources of affected Federally recognized Indian tribes, and 

to achieve a reasonable balance among competing demands for use of CVP water. To help 

achieve CVPIA measures, the Act established the Restoration Fund, derived from charges paid 

by those who benefit from the CVP's water and power supplies. 

Restoration Fund Revenues 

Public Law 102-575, Title XXXIV, Section 3407 established the Central Valley Project 

Restoration Fund (CVPRF). Table 1 below shows actual FY2007 Restoration Fund receipts of 

$40.1 million by revenue type and projected FY2009 receipts by revenue type totaling $56.1 

million. Restoration Fund receipts are calculated by applying the applicable charge to CVP 

project water sold and delivered. 

Table 1: Restoration Fund Receipts 

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FY2007 FY2009 

Description of Revenue CVPIA Section Actual Receipts Projected Receipts 

Pre-Renewal Charges §3404(c)(3) $0 $0 

Tiered Water Charges §3405(d) $690,760 $300,000 

Water Transfer Charges §3405(a)(1)(B) $0 $0 

Friant Division Surcharges § 3406( c )(1) $6,529,319 $7,500,000 

M&I Surcharges §3407(d)(2)(A) $0 $1,000 

Restoration Charges §3407(c) & (d) . $32,862,000 $48,278,000 

Total Receipts $40,082,078 $56,079,000 

As shown in Table 1, nearly all collections in FY2007 were derived from two CVPIA 

subsections- namely, Friant Division Surcharges and Restoration Charges. Receipts from prerenewal charges, tiered water charges, water transfer charges, and M&I surcharges continue to be 

nominal. 

Total restoration charge receipts shown in Table 2 below, detail receipts by project beneficiaries. 

As seen in the table, receipts from beneficiaries can change drastically after drought years. 

Table 2: Restoration Fund Charges by Beneficiary 

FY2007 FY2009 

Payment by Beneficiary Actual Receipts Pro.iected Receipts 

Restoration Charges - Irrigation $21,700,282 $14,328,241 

Restoration Charges - M&I 5,794,884 5,935,574 

Restoration Charges - Power 5,366,834 28,014,185 

Grand Total $32,862,000 $48,278,000 

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Restoration Fund Expenditures 

CVPIA Section 3407(a) states that not less than 67 percent of all funds made available to the 

Restoration Fund under this title are authorized to be appropriated to carry out the habitat 

restoration, improvement and acquisition provisions of this title. In FY 2007, Reclamation spent 

$44.8 million (or 80%) on habitat related activities; we project habitat restoration spending to 

remain steady at $43.9 for FY 2009. Additionally, CVPIA section 3407(a) states that not more 

than 33 percent of all funds made available to the Restoration Fund under this title are authorized 

to be appropriated for fish and wildlife restoration activities. In FY 2007, Reclamation spent 

$10.7 million (or 20%) on fish and wildlife restoration, and projections for FY 2009 show 

spending to be $4.7 million. These expenditures are detailed on Schedule 4 and do not include 

the three other funding sources mentioned above. 

Chart 1 and 2 below graphically depict the expenditures during FY2007 for Habitation 

Restoration, Improvement and Acquisition and Other Fish and Wildlife Restoration Activities. 

Reclamation spent $44.8 million on habitat related work, of which nearly 29 percent was used for 

water acquisition. 

Chart 1 

$14,000,000 

FY2007 CVPIA Expenditures 

Habitation Restoration, Improvement and Acquisition 

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The remaining $1 0. 7 million of FY 2007 expenditures were used for fish and wildlife restoration 

activities, with the anadromous fish screen program accounting for nearly 82 percent of total fish 

and wildlife restoration. For specific uses, you may refer to Chart 2 below. 

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FY2007 CVPIA Expenditures 

Other Fish and Wildlife Restoration Activities 

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Chart 2 

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Glossary 

Anadromous Fish: 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. 

Central Valley Project: 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, and all Acts amendatory or supplemental thereto. 

Central Valley Project Improvement Act: Public Law 102-575, Title 34. This landmark piece 

of legislation mandates changes in the purposes and management of Reclamation's CVP and 

specifically focused the Secretary of the Department of the Interior on protection, restoration and 

enhancement offish and wildlife associated with the CVP. The Secretary, in turn, assigned 

primary responsibility for implementing CVPIA's many provision to Reclamation and the U.S. 

Fish and Wildlife Service. 

Offsetting Collections: Any funds paid into the Restoration Fund by CVP water and power 

contractors and which are also used to pay for 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 the title. 

Outlays: Outlays are disbursement by the Federal Treasury in the form of checks or cash. 

Outlays flow in part from budget authority granted in prior years and in part from budget 

authority provided for the year in which the disbursements occur. 

Receipts: See offsetting collections above. 

Restoration Fund: The fund established in the Treasury of the United States by Public Law 

102-575, Title 34, titled Central Valley Project Restoration Fund (CVPRF) (hereafter Restoration 

Fund). 

Uses: See outlays above. 

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Schedule 1 

Central Valley Project Improvement Act 

Restoration Fund Revenues and Expenditures 

for Fiscal Year 2007 (Actual) and Fiscal Year 2009 (Projected) 

FY2007 FY2009 

REVENUES: (Actual) (Projected) 

Non-Discretionary Revenues: 

Pre-Renewal Charges (Subsection 3404(c)(3)) $0 $0 

Tiered Water Charges (Subsection 3405(d)) 690,760 300,000 

Water Transfer Charges (Subsection 3405(a)(1 )(B)) 0 0 

Friant Division Surcharges (Subsection 3406(c)(1)) See Schedule 2 6,529,319 7,500,000 

M&l Surcharges (Subsection 3407(d)(2)(A)) 0 1,000 

Subtotal - Non-Discretionary Revenues 7,220,078 7,801,000 

Discretionary Revenues: 

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 32,862,000 48,278,000 

Contributions: 

Non-Federal Contributions (Subsection 3407(a)) 0 . 0 

TOTAL REVENUES $40,082,078 $56,079,000 

EXPENDITURES: 

Expenditures (Subsections 3406 & 3408) See Schedule 4 $55,501,987 $48,579,000 

Expenditures of Non-Federal Contributions 0 0 

TOTAL EXPENDITURES $55,501,987 $48,579,000 

NET INCREASE/DECREASE (Revenues less Expenditures) ($15,419,909) $7,500,000 

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Schedule 2 

Central Valley Project Improvement Act 

Friant Division Surcharges (Subsection 3406(c)(1 )) 

for Fiscal Year 2007 (Actual) and Fiscal Year 2009 (Projected) 

FY2007 FY2009 

Irrigation Revenues: (Actual) (Projected) 

Service Area: 

Friant-Kern Canal $4,439,280 $6,126,082 

Cross Valley Canal 0 0 

Madera Canal 1,491 ,007 926,100 

Friant Dam 64,715 0 

Mendota Pool 0 0 

Total Irrigation Revenues $5,995,002 $7,052,182 

Municipal & Industrial (M&I) Revenues: 

Service Area: 

Friant-Kern Canal $532,987 $445,501 

Cross Valley Canal 0 0 

Madera Canal 0 0 

Friant Dam 1,330 2,317 

Mendota Pool 0 0 

Total M&l Revenues $534,317 $447,818 

GRAND TOTAL $6,529,319 $7,500,000 

Note: Project water delivered from the Friant Division is subject to a $7.00 per acre-foot surcharge. 

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Schedule 3 

Central Valley Project Improvement Act 

Restoration Charges (Subsection 3407(c) & (d)) 

for Fiscal Year 2007 (Actual) and Fiscal Year 2009 (Projected) 

FY2007 FY2009 FY2007 FY2009 

(Actual) (Projected) (Actual) (Projected) 

Service Areas: Irrigation Municipal & Industrial (M&I) 

FOLSOM 

Folsom Dam & Reservoir $0 $25,884 $562,628 $1 ,300,147 

Folsom-South Canal 112,446 0 69,733 49,730 

Sugar Pine Dam & Reservoir 0 0 20,987 22,206 

Sly Park Dam & Reservoir 32,050 0 318,547 0 

Subtotal Folsom $144,496 $25,884 $971,895 $1 ,372,083 

TRACY 

Contra Costa Canal $0 $0 $1 ,726,776 $1,680,612 

Delta-Mendota Canal 1,562,932 864,039 103,814 173,983 

San Luis Canal-Tracy 832,993 750,880 119,362 1,833 

New Melones Dam & Reservoir 0 0 53,488 83,075 

San Felipe Unit 560,746 150,318 935,423 967,541 

Subtotal Tracy $2,956,671 $1,765,237 $2,938,863 $2,907,044 

FRESNO 

San Luis Canal-Fresno $9,206,795 $4,102,529 $239,578 $244,787 

Friant Dam 78,823 0 3,237 2,443 

Friant-Kern Canal 5,217,214 4,586,878 1 ,129,150 973,344 

Cross Valley Canal 580,133 669,464 0 0 

Madera Canal 1,798,074 1,196,794 0 0 

Delta-Mendota Pool 244,884 230,719 0 0 

Buchanan Unit 205,920 215,626 0 0 

Hidden Unit 304,800 215,626 0 0 

Subtotal Fresno $17,636,643 $11,217,636 $1 ,371,965 $1,220,574 

SHASTA 

Clear Creek Unit $0 $0 $33,918 $38,034 

Shasta Dam & Reservoir 0 0 44,734 41,933 

Spring Creek Conduit 0 0 94,595 100,430 

Cow Creek Unit 0 0 41 ,543 62,108 

Toyon Pipeline 0 0 53,481 65,145 

Sacramento River- Shasta 13,730 32,002 100,307 114,677 

Subtotal Shasta $13,730 $32,002 $368,578 $422,327 

WILLOWS 

Corning Canal $0 $0 $120 $162 

Tehama-Colusa Canal 925 7,232 6,174 7,186 

Black Butte Dam & Reservoir 8 0 . 1,420 1,132 

Colusa Basin Drain 0 0 0 0 

Feather River 9,929 96,052 0 0 

Sacramento River- Willows 937,879 1 '184, 198 135,868 5,066 

Subtotal Willows $948,742 $1,287,482 $143,582 $13,546 

GRAND TOTAL $21 ,700,282 $14,328,241 $5,794,884 $5,935,574 

Summary of Restoration Charges for Water and Power: FY2007 FY2009 

Restoration Charges - Irrigation $21 ,700,282 $14,328,241 

Restoration Charges - M&l 5,794,884 5,935,574 

Restoration Charges - Power 5,366,834 28,014,185 

Grand Total $32,862,000 $48,278,000 

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Schedule 4 

Central Valley Project Improvement Act 

Restoration Fund Expenditures 

for Fiscal Year 2007 (Actual) and Fiscal Year 2009 (Projected) 

~ - CVPIA . FY2007 FY2009 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION (Actual) (Projected) · 

Habitation Restoration, Improvement and Acquisition 

Anadromous Fish Program 3406(b)(1) $5,456,964 $5,436,000 

In-Stream Flow Requirements 3406(b )( 1 )(B) 0 300,000 

Other CVP Impacts 3406(b )( 1) Other 2,679,329 1,500,000 

Dedicated Project Yield 3406(b)(2) 788,673 800,000 

Water Acquisition 3406(b)(3) 13,140,124 12,790,000 

Flow Fluctuation Study 3406(b)(9) 10,978 . 50,000 

Trinity Rive 137,491 ,_., r Restoration 3406(b)(23) 1,000,000 

San Joaquin River Basin Res Mgt Initiative 3406(c)(1) 2,379,278 2,000,000 

San Joaquin Basin Action Plan 3406(d) 5,923,100 1,000,000 

Refuge Water Supply/Conveyance 3406( d)( 1 )(2)(5) 9,001,630 13,594,000 

Ecosystem/Water Operations Study 3406(g) 3,739,043 4,909,000 

Land Retirement 3408(h) 1,518,922 500,000 

Subtotal $44,775,533 $43,879,000 

Other Fish and Wildlife Restoration Activities 

Tracy Pumping Plant & Fish Test Facility 3406(b)(4) $0 $0 

Coleman Fish Hatchery 3406(b)(11) 151,051 0 

Clear Creek Restoration 3406(b)(12) 582,752 700,000 

Spawning Gravel 3406(b)(13) 545,660 1,000,000 

Old River Barrier 3406(b )( 15) 79,974 0 

CVP Project Assessment/Monitoring Program 3406(b)(16) 550,426 500,000 

Anadromous Fish Screen Program 3406(b )(21) 8,816,592 2,500,000 

Subtotal $10,726,454 $4,700,000 

GRAND TOTAL EXPENDITURES $55,501 ,987 $48,579,000 

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