ANNUAL FINANCIALREPORT

CENTRAL VALLEY PROJECT IMPROVEMENT ACT

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

October 1, 2012 - September 30, 2013 (Actual)

October 1, 2014 - September 30, 2015 (Projected)

September 2014

Bureau of Reclamation 

United States Department of the Interior

TABLE OF CONTENTS

Page

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

Restoration Fund Revenues and Expenditures for Fiscal Year 2013 (Actual) and Fiscal Year 

2015 (Projected) - Schedule 1 .. ........................................................................ 7

Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2013 (Actual) and Fiscal 

Year 2015 (Projected) - Schedule 2 ...... ......... ............... ......... ........................ .... 8

Mitigation and Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2013 (Actual)

and Fiscal Year 2015 (Projected) - Schedule 3 ...................................................... 9

Restoration Fund Expenditures for Fiscal Year 2013 (Actual) and Fiscal Year 2015 (Projected) - 

Schedule 4 ...... ........ . .... .. ...... ...... .. .... ... .. .... . .. ...... . ........ . ..... ......... ...... ... ..... 10 
1

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

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 21st annual financial report 

which describes Central Valley Project Restoration Fund (CVPRF or Restoration Fund) revenues 

(receipts) and expenditures (uses) during Fiscal Year (FY) 2013 as well as projected CVPRF 

revenues and expenditures during FY 2015. For purposes of this report, revenues are actual 

receipts (payments) processed.

In FY 2013, the Bureau of Reclamation (Reclamation) collected approximately $43.7 million 

from assessments and charges authorized by the CVPIA. The majority of receipts, $39.2 million, 

went into the Restoration Fund and $4.3 million went into the San Joaquin River Restoration 

Fund (SJRRF). Reclamation spent $49.0 million on habitat restoration, improvement, and 

acquisition, and other fish and wildlife restoration activities. For FY 2015, the projection for 

revenues is $57.3 million and $56.9 million for expenditures. It should be noted, that there will 

usually be a difference each year between the receipts and expenditures because the amount of 

receipts determines new budget authority to the extent provided in the Appropriations Act.

Budget authority is the authorization to enter into legal obligations that result in immediate or 

future expenditures. However, not all of the new budget authority is expended in the fiscal year. 

Expenditures are payments that liquidate obligations incurred in the same year and unpaid 

obligations from previous fiscal years. In the case of major procurement actions, such as a 

construction project, payments may occur over a period of several years after the obligation is 

incurred.

Included in this financial report are four schedules which detail revenues and expenditures. 

Schedule 1 provides an overall view of CVPRF revenues and expenditures. Schedules 2 and 3 

detail the CVPRF revenues for Friant Division Surcharges and Mitigation and Restoration 

Charges, respectively. Finally, Schedule 4 details CVPRF expenditures.

This report does not include Water and Related Resources appropriations, State of California 

cost share funding, California Bay-Delta Restoration appropriations and American Recovery and 

Reinvestment Act appropriations. These additional four funding sources with the CVPRF make 

up 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.
2

Challenges facing Reclamation in implementing the provisions of the CVPIA include funds 

deposited into the San Joaquin River Restoration Fund established per the San Joaquin River 

Restoration Settlement Act, Title X of Public Law 111-11. This legislation provides that 

approximately $5.6 million in projected FY 2015 revenues, deposited in the CVPRF prior to FY 

2010, are now deposited in the San Joaquin River Restoration Fund, and therefore no longer 

available for CVPIA purposes. Another challenge facing the CVPRF includes consecutive 

drought-years, which reduces revenues from water contractors and increases assessments to 

power contractors.

Background 

In 1992, the Congress passed the CVPIA, which amended the previous authorization of 

California's Central Valley Project (CVP), to include fish and wildlife protection, restoration and 

enhancement as project purposes in addition to agricultural water uses, municipal and industrial 

water uses, and power generation. The Congress directed the Secretary of the Interior, through 

Reclamation and the U.S. Fish and Wildlife 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 CVPRF to collect donations and revenues from any source provided by the Act 

and 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 Restoration Fund. Table 1 

shows actual FY 2013 receipts of $43.7 million by revenue type and projected FY 2015 receipts 

by revenue type totaling $57.3 million. Restoration Fund receipts are calculated by applying the 

applicable charge to CVP project water sold and delivered.

Table 1: Central Valley Project Restoration Fund Receipts

Description of Revenue CVPIA Section

FY2013

Actual Receipts

FY2014

Projected Receipts

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

Tiered Water Charges 3405(d) $3,553 $300,000

Water Transfer Charges 3405(a)(1)(B) $5,640 $0

Friant Division Surcharges 3406(c)(1) $4,304,776 $0

M&I Surcharge 3407(d)(2)(A) $174,216 $1,000

Restoration Charges 3407(c)&(d) $39,188,227 $56,955,000

Total Receipts $43,676,413 $57,296,000

As shown in Table 1, nearly all collections in FY 2013 were derived from two CVPIA 

subsections - namely, Friant Division Surcharges and Mitigation and Restoration Charges. 

Receipts from Pre-Renewal Charges, Tiered Water Charges, Water Transfer Charges, and M&I 

Surcharges continue to be nominal. The projected CVPRF receipts no longer include the Friant 

Division Surcharge. This surcharge is now deposited into the San Joaquin River Restoration 

Fund.
3

Table 2: Mitigation and Restoration Charges by Beneficiary

Payment by Beneficiary 

FY2013 

Actual Receipts

FY2015 

Projected Receipts 

Restoration Charges - Irrigation $13,854,320 $17,232,869 

Restoration Charges - M&I $7,929,633 $8,173,502 

Restoration Charges - Power $17,404,274 $31,588,629 

Grand Total $39,188,227 $56,995,000 

Table 2 shows receipts for the Mitigation and Restoration Charges by project beneficiaries. The 

Mitigation and Restoration Charges are not to exceed $30.0 million (October 1992 dollars) on a 

3-year rolling average per the CVPIA, which generates peaks and valleys in the receipts. Fiscal

Year 2013 was a low year and FY 2015 is a high year.

Restoration Fund Expenditures

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

CVPRF under this title are authorized to be appropriated to carry out the habitat restoration, 

improvement and acquisition provisions of this title. In FY 2013, Reclamation spent $38.9 

million (or 79%) on habitat related activities. Reclamation projects habitat restoration spending 

to increase slightly to $44.8 million for FY 2015.

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 specific 

fish and wildlife restoration activities. In FY 2013, Reclamation spent $8.9 million (or 18%) on 

fish and wildlife restoration activities, and projections for FY 2015 show spending to be $8.9 

million. These expenditures are detailed on Schedule 4 and do not include the four other funding

sources mentioned above.

Charts 1 and 2 graphically depict the expenditures during FY 2013 for Habitat Restoration, 

Improvement and Acquisition, and Other Fish and Wildlife Restoration Activities.
4

Chart 1

Reclamation spent $38.9 million on habitat related work. See Schedule 4.
5

Chart 2

An additional $8.9 million of FY 2013 expenditures were used for fish and wildlife restoration 

activities. For specific uses, refer to Schedule 4.
6 

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 XXXIV. This landmark 

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

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

fish, wildlife, and associated habitats within the CVP. The Secretary, in turn, assigned primary 

responsibility for implementing the CVPIA’s many provisions to Reclamation and the U.S. Fish 

and Wildlife Service. 

Receipts: The CVP Restoration Fund is to 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 the CVPIA. 

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

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

Restoration Fund). 

Uses: Uses are disbursements by the Federal Treasury in the form of checks or cash. Uses flow in 

part from budget authority granted in prior years and in part from budget authority provided for in 

the year in which the disbursements occur. 
7

Schedule 1

FY 2013 FY 2015

REVENUES: (Actual) (Projected)

Non-Discretionary Revenues:

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

Tiered Water Charges (Subsection 3405(d)) 3,553 300,000

Water Transfer Charges (Subsection 3405(a)(1)(B)) 5,640 0

Friant Division Surcharges (Subsection 3406(c)(1)) 3/ See Schedule 2 4,304,776 1/ 0 2/

M&I Surcharges (Subsection 3407(d)(2)(A)) 174,216 1,000

Subtotal - Non-Discretionary Revenues 4,488,185 301,000

Discretionary Revenues:

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 39,188,227 56,995,000

Contributions:

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

TOTAL REVENUES 43,676,413 57,296,000

EXPENDITURES:

Expenditures (Subsections 3406, 3407, & 3408) See Schedule 4 49,042,508 56,995,000

Expenditures of Non-Federal Contributions 0 0

TOTAL EXPENDITURES 49,042,508 56,995,000

NET INCREASE/DECREASE (Revenues less Expenditures) (5,366,096) 301,000

1/ Actual Friant Surcharge receipts are reported here in accordance with 3407(f) of the CVPIA. 

However, the receipts are actually deposited in the San Joaquin River Restoration Fund (SJRRF). 

2/ Projected revenues for Friant Surcharge are $0.00 due to the fact that all revenues received 

are deposited into the San Joaquin River Restoration Fund (SJRRF).

3/ All Friant revenues (actual or projected) received as of October 1, 2009, are deposited into the SJRRF.

Note: Schedules may reflect rounding differences.

Central Valley Project Restoration Fund

Revenues and Expenditures

for Fiscal Year 2013 (Actual) and Fiscal Year 2015 (Projected)
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Schedule 2

FY 2013 FY 2015

(Actual) 1/ (Projected) 2/

Service Area:

Friant-Kern Canal $3,144,400 $0

Cross Valley Canal 0 0

Madera Canal 858,242 0

Friant Dam 7 0

Total Irrigation Revenues $4,002,649 $0

Service Area:

Friant-Kern Canal $301,210 $0

Cross Valley Canal 0 0

Madera Canal 0 0

Friant Dam 917 0

Total M&I Revenues $302,127 $0

GRAND TOTAL $4,304,776 $0

1/ Actual Friant Surcharge receipts are reported here in accordance with 3407(f) of the CVPIA. 

However, the receipts are actually deposited in the San Joaquin River Restoration Fund.

2/ Projected revenues for Friant Surcharge are $0.00 due to the fact that all revenues received 

are deposited into the San Joaquin River Restoration Fund (SJRRF).

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

Central Valley Project Restoration Fund

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

for Fiscal Year 2013 (Actual) and Fiscal Year 2015 (Projected)

Irrigation Revenues:

Municipal & Industrial (M&I) Revenues:
9

 Schedule 3

FY 2013 FY 2015 FY 2013 FY 2015

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

Service Areas:

FOLSOM 

Folsom Dam & Reservoir $0 $0 $809,330 $832,564

Folsom-South Canal 0 0 71,431 394,770

Sugar Pine Dam & Reservoir 0 1,809 23,009 55,262

Sly Park Dam & Reservoir 42,522 50,238 256,398 361,714

 Subtotal Folsom $42,522 $52,047 $1,160,168 $1,644,310

TRACY 

Contra Costa Canal $0 $0 $2,368,647 $1,861,519

Delta-Mendota Canal 702,301 1,010,517 152,775 182,243

San Luis Canal-Tracy 440,813 731,797 10,496 13,745

New Melones Dam & Reservoir 0 0 973,400 509,494

San Felipe Unit 668,240 253,049 1,621,172 1,920,719

 Subtotal Tracy $1,811,354 $1,995,363 $5,126,489 $4,487,720

FRESNO

San Luis Canal-Fresno $2,491,512 $4,865,440 $200,805 $238,972

Friant Dam 19 0 2,510 3,155

Friant-Kern Canal 4,347,455 5,482,825 834,967 1,233,885

Cross Valley Canal 545,004 269,366 0 19,553

Madera Canal 1,182,506 1,248,736 0 0

Delta-Mendota Pool 118,698 203,112 0 0

Buchanan Unit 233,160 241,142 0 0

Hidden Unit 234,960 241,142 0 0

 Subtotal Fresno $9,153,313 $12,551,763 $1,038,283 $1,495,565

SHASTA 

Clear Creek Unit $0 $0 $35,182 $34,363

Shasta Dam & Reservoir 0 0 38,025 32,635

Spring Creek Conduit 0 0 137,865 108,574

Cow Creek Unit 0 0 158,984 86,972

Toyon Pipeline 0 0 21,818 41,677

Sacramento River - Shasta 23,201 33,619 96,801 238,610

 Subtotal Shasta $23,201 $33,619 $488,674 $542,832

WILLOWS

Corning Canal $33,516 $0 $151 $0

Tehama-Colusa Canal 1,497,869 733,214 4,358 2,351

Black Butte Dam & Reservoir 5,851 0 9,686 723

Colusa Basin Drain 0 0 0 0

Feather River 0 150,713 0 0

Sacramento River - Willows 1,286,695 1,716,150 101,824 0

 Subtotal Willows $2,823,931 $2,600,077 $116,020 $3,075

GRAND TOTAL $13,854,320 $17,232,869 $7,929,633 $8,173,502

Summary of Restoration Charges for Water and Power: FY 2013 FY 2015

$13,854,320 $17,232,869

$7,929,633 8,173,502

Restoration Charges - Irrigation

Restoration Charges - M&I

Restoration Charges - Power* 17,404,274 31,588,629

 Grand Total $39,188,227 $56,995,000

*Power receipts are transferred to Reclamation on a monthly basis by the Western Area Power Administration. This value

represents a summary of those monthly charges and receipts.

Central Valley Project Restoration Fund

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

for Fiscal Year 2013 (Actual) and Fiscal Year 2015 (Projected)

Irrigation Municipal & Industrial (M&I)
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Schedule 4

CVPIA FY 2013 FY 2015

SUBSECTION (Actual) (Projected)

Habitat Restoration, Improvement and Acquisition

Anadromous Fish Restoration Program 3406(b)(1) $5,803,246 $11,379,000

Other CVP Impacts 3406(b)(1) Other 1,280,167 1,700,000

Other CVP Impacts-Trinity River 3406(b)(1) Other 2,022,860 2,000,000

Dedicated Project Yield 3406(b)(2) 918,311 700,000

Water Acquisition 3406(b)(3) 3,300,114 12,105,000

Flow Fluctuation Study 3406(b)(9) 96,965 0

Trinity River Restoration 3406(b)(23) 138 0

Refuge Water Supply/Conveyance & Construction 3406(d)(1)(2)(5) 24,781,532 16,050,000

Ecosystem/Water Operations Study 3406(g) 471,439 900,000

Land Retirement 3408(h) 254,409 0

Subtotal $38,929,180 $44,834,000

Other Fish and Wildlife Restoration Activities

Contra Costa Canal Pump 3406(b)(5) 8,668 0

Clear Creek Restoration 3406(b)(12) 469,829 800,000

Spawning Gravel/Riparian Habitat 3406(b)(13) 459,900 1,690,000

Comp Assess. & Monitoring Prgm 3406(b)(16) 3,043,407 2,306,000

Anadromous Fish Screen Program 3406(b)(21) 4,955,665 4,150,000

Subtotal $8,937,469 $8,946,000

Other Expenses

CVPIA Administration 3407 $580,280 $1,215,000

Interest Expense 3407 $0 $0

Public Law 111-11

San Joaquin River Restoration Program 595,579.02 2,000,000

GRAND TOTAL EXPENDITURES $49,042,508 $56,995,000

Central Valley Project Restoration Fund

Restoration Fund Expenditures

for Fiscal Year 2013 (Actual) and Fiscal Year 2015 (Projected)

FISH AND WILDLIFE RESTORATION ACTIVITIES