ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

October 1, 2009- September 30, 2010 (Actual) 

October 1, 2011- September 30, 2012 (Projected) 

September 2011 

Bureau of Reclamation 

United States Department of the Interior 
TABLE OF CONTENTS 

Executive Summary 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 

Restoration Fund Revenues and Expenditures for Fiscal Year 2010 (Actual) and Fiscal Year 

2012 (Projected) (Schedule 1) 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 00000 0 0 0 0 0 0 0000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 000 6 

Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2010 (Actual) and Fiscal 

Year 2012 (Projected) (Schedule 2) 0 0000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0000 7 

Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2010 (Actual) and Fiscal Year 

2012 (Projected) (Schedule 3) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000 8 

Restoration Fund Expenditures for Fiscal Year 2010 (Actual) and Fiscal Year 2012 (Projected) 

(Schedule 4) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 
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 eighteenth annual financial 

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

revenues (receipts) and expenditures (uses) during Fiscal Year (FY) 2010 as well as projected 

CVPRF revenues and expenditures during FY 2012. For purposes of this report, revenues are 

actual receipts (payments) processed. 

In FY 2010, the Bureau ofReclamation (Reclamation) collected approximately $48.0 million 

into the Restoration Fund and spent $4 7.2 million on habitat restoration, improvement, and 

acquisition, and other fish and wildlife restoration activities. For FY 2012, the projection for 

revenues is $53 .1 million and $53.1 million for expenditures. Schedule 1 provides an overall 

view of CVPRF revenues and expenditures and Schedules 2 and 3 detail the CVPRF revenues 

for Friant Division surcharges 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, CALFED Bay-Delta funding 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. 

Challenges facing Reclamation include the San Joaquin River Restoration Settlement Act, Title 

X of Public Law 111-11. This legislation diverts approximately $5.6 million in projected FY 

2011 revenues to the San Joaquin River Restoration Fund (SJRRF). Another challenge facing 

the Central Valley Project Restoration Fund includes consecutive drought-years, which shifts the 

burden of revenues (payments) 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 and enhancement as project purposes in addition to agricultural wat~r 

uses, municipal arid industrial water uses, and power generation. Congress directed the Secretary 

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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 Central Valley Project Restoration Fund 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 Central Valley Project 

Restoration Fund. Table 1 below shows actual FY 2010 receipts of$48.0 million by revenue 

type and projected FY 2012 receipts by revenue type totaling $53.1 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 

FY 2010 FY 2012 

Description of Revenue CVPIA Section Actual Receipts Pro.iected Receipts 

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

Tiered Water Charges §3405(d) $327,067 $300,000 

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

Friant Division Surcharges §3406(c)(l) $10,804,25 8 $0 

M&I Surcharges §3407( d)(2)(A) $683 $1 ,000 

Restoration Charges §3407(c) & (d) $36,836,789 $52,767,000 

Total Receipts $47,968,797 $53,068,000 

As shown in Table 1, nearly all collections in FY 2010 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. The projected CVPRF receipts no longer include the Friant Division Surcharge. This 

surcharge is now deposited into the San Joaquin River Restoration Fund (SJRRF). 

Table 2: Restoration Charges by Beneficiary 

FY 2010 FY 2012 

Payment by Beneficiary Actual Receipts Pro.iected Receipts 

Restoration Charges - Irrigation $20,431,694 $23,473,745 

Restoration Charges - M&I $5,723,500 $6,737,846 

Restoration Charges - Power $10,681,594 $22,555,408 

Grand Total $36,836,789 $52,767,000 

Table 2 above depicts receipts for restoration charges by project beneficiaries. The restoration 

charges are not to exceed $30.0 million (1992 dollars) on a three-year rolling average which 

2 
FY 2010 CVPIA Expenditures 

Habitation Restoration, Improvement and Acquisition 

16,000,000 

14,000,000 

12,000,000 

10,000,000 

8,000,000 

6,000,000 

4,000,000 

2,000,000 

0 

generates peaks and valleys in the receipts. Fiscal Year 2010 was a low year and FY 2012 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 

Central Valley Project 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 2010, 

Reclamation spent $39.0 million (or 83%) on habitat related activities; Reclamation projects 

habitat restoration spending to rise slightly to $53.1 million for FY 2012. 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 2010, Reclamation spent $8.2 million (or 17%) on fish and wildlife 

restoration activities, and projections for FY 2012 show spending to be $9.4 million. These 

expenditures are detailed on Schedule 4 and do not include the four other funding sources 

mentioned above. 

Chart 1 and 2 graphically depict the expenditures during FY 201 0 for Habitation Restoration, 

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

Reclamation spent $39.0 million on habitat related work. See Schedule 4. 

Chart 1 

3 
FY 2010 CVPIA Expenditures 

Other Fish and Wildlife Restoration Activities 

6,000,000 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

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The remaining $8.2 million of FY 201 0 expenditures were used for fish and wildlife restoration 

activities. For specific uses, you may refer to Chart 2 or Schedule 4. 

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 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 

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

primary responsibility for implementing CVPIA's many provisions 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 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 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 in 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 XXXIV, titled Central Valley Project Restoration Fund (CVPRF) (hereafter 

Restoration Fund). 

Uses: See outlays above. 

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Schedule 1 

Central Valley Project Restoration Fund 

Revenues and Expenditures 

for Fiscal Year 2010 (Actual) and Fiscal Year 2012 (Projected) 

FY 2010 FY 2012 

REVENUES: (Actual) (Projected) 

Non-Discretionary Revenues: 

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

Tiered Water Charges (Subsection 3405(d)) 327,067 300,000 

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

Friant Division Surcharges (Subsection 3406(c)(1)) 3 See Schedule 2 10,804,258 11 0 21 

M&l Surcharges (Subsection 3407(d)(2)(A)) 683 1,000 

Subtotal - Non-Discretionary Revenues 11 ,132,008 301 ,000 

Discretionary Revenues: 

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 36,836,789 52,767,000 

Contributions: 

Non-Federal Contributions (S,ubsection 3407(a)) 0 0 

TOTAL REVENUES 47,968,797 53,068,000 

EXPENDITURES: 

Expenditures (Subsections 3406 & 3408) See Schedule 4 47,211 ,787 53,068,000 

Expenditures of Non-Federal Contributions 0 0 

TOTAL EXPENDITURES 47,211 ,787 53,068,000 

NET INCREASEIDECREASE (Revenues less Expenditures) 757,010 0 

11 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). 

21 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). 

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

Note: Schedules may reflect rounding differences. 

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Schedule 2 

Central Valley Project Restoration Fund 

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

for Fiscal Year 2010 (Actual) and Fiscal Year 2012 (Projected) 

FY 2010 FY 2012 

Irrigation Revenues: (Actual) 1/ (Projected) 2/ 

Service Area: 

Friant-Kern Canal $8,488,406 $0 

Cross Valley Canal 0 0 

Madera Canal 2,093,980 0 

Friant Dam 46,928 0 

Total Irrigation Revenues $10,629,314 $0 

Municipal & Industrial (M&I) Revenues: 

Service Area: 

Friant-Kern Canal $173,824 $0 

Cross Valley Canal 0 0 

Madera Canal 0 0 

Friant Dam 1 '120 0 

Total M&l Revenues $174,944 $0 

GRAND TOTAL $10,804,258 $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. 

21 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. 

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Schedule 3 

Central Valley Project Restoration Fund 

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

for Fiscal Year 2010 (Actual) and Fiscal Year 2012 (Projected) 

FY 2010 FY 2012 FY 2010 FY 2012 

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

Service Areas: lrri~ation Municipal & Industrial (M&I) 

FOLSOM 

Folsom Dam & Reservoir $0 $0 $667,625 $847,222 

Folsom-South Canal 0 0 187,846 371 ,818 

Sugar Pine Dam & Reservoir 0 2,242 20,010 45,337 

Sly Park Dam & Reservoir 36,102 62,283 345,778 326,427 

Subtotal Folsom $36,102 $64,525 $1 ,221 ,259 $1 ,590,804 

TRACY 

Contra Costa Canal $0 $0 $1 ,613,081 $1 ,583,895 

Delta-Mendota Canal 433,409 1,769,535 122,360 168,255 

San Luis Canal-Tracy 214,753 1,164,767 102,235 12,531 

New Melones Dam & Reservoir 0 0 439,215 0 

San Felipe Unit 109,211 434,362 1,309,856 1,660,116 

Subtotal Tracy $757,373 $3,368,664 $3,586,747 $3,424,797 

FRESNO 

San Luis Canal-Fresno $3,093,245 $8,440,731 $187,328 $246,253 

Friant Dam 61 ,073 0 2,916 3,155 

Friant-Kern Canal 11 ,027,716 6,638,858 396,635 1,064,804 

Cross Valley Canal 259,107 393,517 0 17,645 

Madera Canal 2,723,267 1,501 ,257 0 0 

Delta-Mendota Pool 198,056 307,379 0 0 

Buchanan Unit 229,800 298,958 0 0 

Hidden Unit 218,640 298,958 0 0 

Subtotal Fresno $17,810,903 $17,879,659 $586,879 $1 ,331 ,857 

SHASTA 

Clear Creek Unit $0 $0 ($30,634) 1/ $35,055 

Shasta Dam & Reservoir 0 0 32,973 31,663 

Spring Creek Conduit 0 0 88,989 79,267 

Cow Creek Unit 0 0 67,560 41 ,982 

Toyon Pipeline 0 0 39,933 47,005 

Sacramento River- Shasta 29,052 37,856 61,071 152,822 

Subtotal Shasta $29,052 $37,856 $259,892 $387,795 

WILLOWS 

Corning Canal $0 $0 $0 $0 

Tehama-Colusa Canal 266,695 7,960 5,264 2,122 

Black Butte Dam & Reservoir 0 0 1,724 472 

Colusa Basin Drain 0 0 0 0 

Feather River 57,259 186,849 0 0 

Sacramento River - Willows 1,474,310 1,928,232 61 ,735 0 

Subtotal Willows $1 ,798,265 $2,123,041 $68,723 $2,593 

GRAND TOTAL $20,431 ,694 $23,473,745 $5,723,500 $6,737,846 

Summary of Restoration Charges for Water and Power: FY 2010 FY 2012 

Restoration Charges- Irrigation $20,431 ,694 $23,473,745 

Restoration Charges- M&l 5,723,500 6,737,846 

Restoration Charges - Power 10,681 ,594 22,555,408 

Grand Total $36,836,789 $52,767,000 

1/ Contractor payments were incorrectly applied to restoration-M&I water in FY 2005 and FY 2007, 

then corrected to water account or correct contract in FY 2010. 

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Schedule 4 

Central Valley Project Restoration Fund 

Restoration Fund Expenditures 

for Fiscal Year 2010 (Actual) and Fiscal Year 2012 (Projected) 

CVPIA FY 2010 FY 2012 

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

Habitation Restoration, Improvement and Acquisition 

Anadromous Fish Restoration Program 3406(b)(1) $3,825,970 $8,187,000 

Other CVP Impacts 3406(b)(1) Other 3,267,588 5,375,000 

Dedicated Project Yield 3406(b)(2) 912,835 800,000 

Water Acquisition 3406(b)(3) 15,064,428 11,100,000 

Flow Fluctuation Study 3406(b)(9) 8,729 50,000 

San Joaquin River Basin Res Mgt Initiative 3406(c)(1) 3,957,176 2,000,000 

San Joaquin Basin Action Plan 3406(d) 76,219 200,000 

Refuge Water Supply/Conveyance 3406( d)( 1 )(2)( 5) 10,488,495 14,707,000 

Ecosystem/Water Operations Study 3406(g) 649,191 700,000 

Land Retirement 3408(h) 760,436 500,000 

Subtotal $39,011,069 $43,619,000 

Other Fish and Wildlife Restoration Activities 

Tracy Pumping Plant & Fish Test Facility 3406(b)(4) $225,886 $0 

Clear Creek Restoration 3406(b)(12) 505,946 800,000 

Spawning Gravel 3406(b)(13) 680,744 1,000,000 

Comp Assess. & Monitoring Prgm 3406(b )( 16) 1,227,485 1,600,000 

Anadromous Fish Screen Program 3406(b )(21) 5,560,657 6,049,000 

Subtotal $8,200,719 $9,449,000 

GRAND TOTAL EXPENDITURES $47,211,787 $53,068,000 

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