ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

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

October 1, 2010 - September 30, 2011 (Projected) 

September 2010 

Bureau of Reclamation 

United States Department of the Interior 
TABLE OF CONTENTS 

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

Restoration Fund Revenues and Expenditures for Fiscal Year 2009 (Actual) and Fiscal Year 

2011 (Projected) (Schedule 1) .. . .. . . .. .. . .. .. . . .. .. . . .. . . .. .. .. .. .. . .. .. .. .. .. .. .. . .. . .. .. .. . .. .. . .. ... 6 

Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2009 (Actual) and fiscal 

Year 2011 (Projected) (Schedule 2) . . . . . . . . . . . . . . . .. . . .. . . . . . . .. . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . .. 7 

Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2009 (Actual) and Fiscal Year 

2011 (Projected) (Schedule 3) ..... .... ........ ... .... .. ........ ... .. ..... .. .. ,.. ... .......... .. .. .... .. 8 

Re~toration Fund Expenditures for Fiscal Year 2009 (Actual) and Fiscal Year 2011 (Projected) 

(Schedule 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 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 seventeenth annual 

financial report which describes Central Valley Project Restoration Fund (CVPRF) revenues 

(receipts) and expenditures (uses) during Fiscal Year (FY) 2009 as well as projected CVPRF 

revenues and expenditures during FY 2011. For purposes of this report, revenues are actual 

receipts (payments) processed. 

In FY 2009, the Bureau of Reclamation (Reclamation) collected approximately $59.4 million 

into the CVPRF and spent $46.9 million on habitat restoration, improvement, and acquisition, 

and other fish and wildlife restoration activities. For FY 2011, the projection for revenues is 

$49.9 million and $49.9 million for expenditures. Schedule 1 provides an overall view of · 

CVPRF revenues and expenditures and Schedule 2 and 3 details 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 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 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 having equal priority with 

agricultural water uses, municipal and industrial water uses, and power generation. Congress 

1 
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 Central Valley Project Restoration Fund 

(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 Central Valley Project 

Restoration Fund (CVPRF). Table 1 below shows actual FY 2009 receipts of $59.4 million by 

revenue type and projected FY 2011 receipts by revenue type totaling $49.9 million. CVPRF 

receipts are calculated by applying the applicable charge to CVP project water sold and 

delivered. 

Table 1: Restoration Fund Receipts 

FY 2009 FY 2011 

Descri tion of Revenue Actual Recei ts Pro· ected Recei ts 

M&I Surchar es 

$0 $0 

$ 191,764 $300,000 

$0 $0 

$6,922,908 $0 

$680 $1,000 

Restoration Char es $52,685,000 $49,614,000 

$59,416,823 $49,915,000 

As shown in Table 1, nearly all collections in FY 2009 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 2009 FY 2011 

Payment by Beneficiarv Actual Receipts Projected Receipts 

Restoration Charges - Irrigation $12,168,526 $16,209,391 

Restoration Charges - M&I 5,980,385 I 7,034,549 

Restoration .Charges - Power 34,536,089 I 26,370,060 

Grand Total $52,685,000 I $49,614,000 

Table 2 above depicts receipts for restoration charges by project beneficiaries. As seen in the 

table, receipts from beneficiaries can change drastically after drought years. Also, the restoration 

2 
FY 2009 CVPIA Expenditures 

Habitation Restoration, Improvement and Acquisition 

12000000 

10000000 

8000000 

6000000 

4000000 

2000000 

0 .c C: C: C: QJ 

U) £l t:5 C: >- c u QJ 0 0 cu 0 cu ·.;; u $ 'O QJ .2: > C) C: u::: C: E 0 C. ·e- ~ a:: ii: :::;: al "' C: "' E U) 

:::, "' .!!l ~ $ >- ~ .§ a.. :::, >- .!:: en C: "' QJ U) ~ 0 ~ 32 O' 

u u 'O ~ .9 :::, QJ a: "' "' > 

C: 'O i QJ :::, ·c: en ·:5 ~ C: :g a.. ·c: QJ O' a:: O' E C: .9 $ <( u: ~ 0 QJ 0 a:: e U) > >= ~ a:: C: Ol(..) QJ (..) u "' 0 ·.;; 0 >- 'O 'O a:: "' 3: --, "' :::,- * U) ~ 'o $ 0 --, u 

<( a>~ 0 QJ C: "' C: cu QJ u: C: al "' C: u C. 

<( 0 ~ "' a:: 8:: w 0 --' "5 Cf) "' "' Cf) :::, 

Cf) 

charges are limited to $30.0 million (1992 dollars) on a three-year rolling average which 

generates peaks and valleys in the receipts. 

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 2009, 

Reclamation spent $44.8 million (or 95%) on habitat related activities; Reclamation projects 

habitat restoration spending to drop slightly to $43 .4 million for FY 2011 . 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 2009, Reclamation spent $2.1 million (or 5%) on fish and wildlife 

restoration activities, and projections for FY 2011 show spending to be $6.4 million. These 

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

mentioned above. 

Chart 1 and 2 below graphically depict the expenditures during FY 2009 for Habitation 

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

Reclamation spent $44.8 million on habitat related work. See schedule 4. 

Chart 1 

3 
The remaining $2.1 million of FY 2009 expenditures were used for fish and wildlife restoration 

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

Chart 2 

FY 2009 CVPIA Expenditures 

Other Fish and Wildlife Restoration Activities 

6000000 

4000000 

2000000 

-2000000 

-4000000 

.c a; oil E .c 

U) E il: > u; e> i':- ~ u::: ~ c: (1) (.!) ::l c.. U) 

U) "' .c Cl :::, e E .B Cl U) C: 0 c.. C: <( ·c: 

o:i: (1) "' ·c: C: 0.. g e 

E (1) 

u E c: -0 ~ ;i: 

O 0 "' 0. 0 u::::e "' C: en <( en 

4 
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 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 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. 

5 
Central Valley Project Improvement Act 

Restoration Fund Revenues and_ Expenditures 

for Fiscal Year 2009 (Actual) and Fiscal Year 2011 (Projected) 

REVENUES: 

Non-Discretionary Revenues: 

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

Tiered Water Charges (Subsection 3405(d)} 

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

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

M&I Surcharges (Subsection 3407(d)(2)(A)) 

Subtotal - Non-Discretionary Revenues 

Discretionary Revenues: 

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

Contributions: 

Non-Federal Contributions (Subsection 3407(a)} 

TOTAL REVENUES 

EXPENDITURES: 

Expenditures (Subsections 3406 & 3408) 

Expenditures of Non-Federal Contributions 

TOTAL EXPENDITURES 

NET INCREASE/DECREASE (Revenues less Expenditures) 

See Schedule 2 

See Schedule 3 

See Schedule 4 

1/ Tiered payments have been incorrectly applied since FY2001. A reconciliation 

that a portion of the payments needed to be applied to the water account. 

FY 2009 

(Actual) 

0 

(191,764) 1/ 

0 

6,922,908 2/ 

680 

6,731,823 

52,685,000 

0 

59,416,823 

Schedule 1 

FY 2011 

(Projected) 

0 

300,000 

0 

0 3/ 

1,000 

301,000 

49,614,000 

49,915,000 

46,975,034 49,915,000 

0 0 

46,975,034 49,915,000 

12,441,789 0 

·performed during FY 2009 determined 

2/ 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). 

3/ 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). 

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

Note: Schedules may reflect rounding differences. 

6 

0 
FY 2009 FY 2011 

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

Service Area: 

Friant-Kern Canal $5,285,749 $0 

Cross Valley Canal 0 0 

Madera Canal 1,276,569 0 

Friant Dam 16,807 0 

Total Irrigation Revenues $6,579,125 $0 

Municipal & Industrial (M&I) Revenues: 

Service Area: 

Friant-Kern Canal $343,223 $0 

Cross Valley Canal 0 0 

Madera Canal 0 0 

Friant Dam 560 0 

Total M&I Revenues $343,783 $0 

GRAND TOTAL $6,922,908 $0 

Schedule 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2009 (Actual) and Fiscal Year 2011 (Projected) 

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. 

7 
Schedule 3 

Central Valley Project Improvement Act 

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

for Fiscal Year 2009 (Actual) and Fiscal Year 2011 (Projected) 

FY 2009 FY 2011 

(Actual) (Projected) 

Service Areas: Irrigation 

FOLSOM 

Folsom Dam & Reservoir $0 $0 

Folsom-South Canal (539,688) 1/ 0 

Sugar Pine Dam & Reservoir 0 1,377 

Sly Park Dam & Reservoir 22,173 38,255 

FY 2009 FY 2011 

(Actual) (Projected) 

Municipal & Industrial (M&I) 

Subtotal Folsom 

TRACY 

Contra Costa Canal 

Delta-Mendota Canal 

San Luis Canal-Tracy 

New Melones Dam & Reservoir 

San Felipe Unit 

Subtotal Tracy 

FRESNO 

San Luis Canal-Fresno 

Friant Dam 

Friant-Kem Canal 

Cross Valley Canal 

Madera Canal 

Delta-Mendota Pool 

Buchanan Unit 

Hidden Unit 

Subtotal Fresno 

SHASTA 

Clear Creek Unit 

Shasta Dam & Reservoir 

Spring Creek Conduit 

Cow Creek Unit 

Toyon Pipeline 

Sacramento River - Shasta 

Subtotal Shasta 

WILLOWS 

Coming Canal 

Tehama-Colusa Canal 

Black Butte Dam & Reservoir 

Colusa Basin Drain 

Feather River 

Sacramento River - Willows 

Subtotal Willows 

GRAND TOTAL 

($517,515) 

$0 

562,018 

438,061 

0 

177,316 

$1,177,396 

$648,347 

21,753 

6,760,112 

249,903 

1,643,310 

82,006 

217,440 

216,000 

$9,838,871 

$0 

0 

0 

0 

0 

13,514 

$13,514 

$0 

(893) 2/ 

0 

0 

85,123 

1,572,030 

$1,656,260 

$12,168,526 

$39,632 

$0 

1,357,119 

879,070 

0 

332,620 

$2,568,809 

$6,259,515 

0 

4,200,316 

270,968 

969,535 

227,885 

183,624 

183,624 

$12,295,467 

$0 

0 

0 

0 

0 

29189 

$29,189 

$0 

5,356 

31 

0 

114,765 

1,156,143 

$1 ,276,294 

$16,209,391 

$530,087 

662,604 

21,544 

160,447 

$1,374,681 

$1,455,798 

168,026 

10,504 

54,360 

1,359,615 

$3,048,303 

$201,590 

1,436 

941,877 

0 

0 

0 

0 

0 

$1 ,144,903 

$22,352 

16,497 

74,411 

38,932 

34,257 

95,784 

$282,233 

$0 

3,091 

1,475 

0 

0 

125,700 

$130,265 

$5,980,385 

FY2009 

$12,168,526 

5,980,385 

34,536,089 

$52,685,000 

Summary of Restoration Charges for Water and Power: 

Restoration Charges - Irrigation 

Restoration Charges - M&I 

Restoration Charges - Power 

Grand Total 

$855,121 

490,510 

44,039 

317,083 

$1 ,706,754 

$1,564,102 

177,126 

12,155 

0 

1,840,176 

$3,593,559 

$248,241 

3,541 

1,069,857 

17,140 

0 

0 

0 

0 

$1,338,779 

$37,451 

34,897 

81,878 

36,870 

49,095 

152,640 

$392,831 

$0 

2,114 

511 

0 

0 

0 

$2,625 

$7,034,549 

FY 2011 

$16,209,391 

7,034,549 

26,370,060 

$49,614,000 

1/ Contractor payments were incorrectly applied to restoration-lRR water in FY 2004, 2005, 2006, 2007 and FY 2008, 

then corrected to restoration-M&I in FY 2009. 

2/ Contractor payments were incorrectly applied to restoration-I RR water in FY 2008, then corrected to water 

account in FY 2009. 

8 
Schedule 4 

Central Valley Project Improvement Act 

Restoration Fund Expenditures 

for Fiscal Year 2009 (Actual) and Fiscal Year 2011 (Projected) 

FY 2011 

(Projected) 

$6,070,000 

1,700,000 

800,000 

13,700,000 

50,000 

1,000,000 

1,500,000 

200,000 

11,400,000 

6,500,000 

500,000 

$43,420,000 

$0 

0 

800,000 

700,000 

1,283,000 

3,712,000 

$6,495,000 

$49,915,000 

CVPIA 

FISH AND WILDLIFE RESTORATION ACTIVITIES SUBSECTION 

Habitation Restoration, Improvement and Acquisition 

Anadromous Fish Restoration Program 

Other CVP Impacts 

Dedicated Project Yield 

Water Acquisition 

Flow Fluctuation Study 

Trinity River Restoration 

San Joaquin River Basin Res Mgt Initiative 

San Joaquin Basin Action Plan 

Refuge Water Supply/Conveyance 

Ecosystem/Water Operations Study 

Land Retirement 

Subtotal 

Other Fish and Wildlife Restoration Activities 

Shasta Temperature Control Device 

Coleman Fish Hatchery 

Clear Creek Restoration 

Spawning Gravel 

Comp Assess. & Monitoring Prgm 

Anadromous Fish Screen Program 

Subtotal 

GRAND TOTAL EXPENDITURES 

3406(b)(1) 

3406(b)(1) Other 

3406(b )(2) 

3406(b)(3) 

3406(b)(9) 

3406(b)(23) 

3406(c)(1) 

3406(d) 

3406(d)(1 )(2)(5) 

3406(9) 

3408(h) 

3406(b)(6) 

3406(b )( 11 ) 

3406(b )(12) 

3406(b )(13) 

3406(b)(16) 

3406{b)(21) 

FY 2009 

(Actual) 

$5,331,006 

· 4,330,883 

674,293 

1· 1,269,039 

75,749 

57 

9,526,951 

422,097 

6,296,981 

5;860,739 

1,048,657 

$44,836,452 

($5,225,998) 1/ 

1,193 

663,904 

951,475 

868,740 

4,879,268 

$2, 1.38,582 

$46,975,034 

1/ Expenses were reversed out of Restoration Fund and transferred to Trust Fund. 

9