ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

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

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

February 2013 

Bureau of Reclamation 

United States Department of the Interior 
 

TABLE OF CONTENTS 

Page 

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

Restoration Fund Revenues and Expenditures for Fiscal Year 2011 (Actual) and Fiscal Year 

2013 (Projected) (Schedule 1) .......................................................................... 7 

Friant Division Surcharges (Subsection 3406(c)(1)) for Fiscal Year 2011 (Actual) and Fiscal 

Year 2013 (Projected) (Schedule 2) ................................................................... 8 

Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2011 (Actual) and Fiscal Year 

2013 (Projected) (Schedule 3) .......................................................................... 9 

Restoration Fund Expenditures for Fiscal Year 2011 (Actual) and Fiscal Year 2013 (Projected) 

(Schedule 4) ............................................................................................... 10 
 

 

 

 

 

 

 

 

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 19th annual financial report 

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

(receipts) and expenditures (uses) during Fiscal Year (FY) 2011 as well as projected CVPRF 

revenues and expenditures during FY 2013. For purposes of this report, revenues are actual 

receipts (payments) processed. 

In FY 2011, the Bureau of Reclamation (Reclamation) collected approximately $59.2 million 

from assessments and charges authorized by CVPIA. The majority of receipts, $51.2 million, 

went into the Restoration Fund and $8.0 million went into the San Joaquin River Restoration 

Fund (SJRRF). Reclamation spent $49.6 million on habitat restoration, improvement, and 

acquisition, and other fish and wildlife restoration activities. For FY 2013, the projection for 

revenues is $39.9 million and $39.9 million for expenditures. 

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 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. 

Challenges facing Reclamation in implementing the provisions of CVPIA include funds 

deposited in to 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 2013 revenues 

deposited in the CVPRF prior to FY 2010 are deposited in the San Joaquin River Restoration 

Fund. Another challenge facing the Central Valley Project Restoration Fund includes 

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

assessments to power contractors. 

1 
 

 

 

 

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 water 

uses, municipal and industrial water uses, and power generation. 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 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 Restoration Fund. Table 1 

below shows actual FY 2011 receipts of $59.2 million by revenue type and projected FY 2013 

receipts by revenue type totaling $39.9 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 

FY 2011 

Actual Receipts 

FY 2013 

Projected Receipts 

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

Tiered Water Charges §3405(d) $192,125 $300,000 

Water Transfer Charges §3405(a)(1)(B) $15 $0 

Friant Division Surcharges §3406(c)(1) $7,933,613 $0 

M&I Surcharges §3407(d)(2)(A) $1,457,109 $1,000 

Restoration Charges §3407(c) & (d) $49,614,000 $39,582,000 

Total Receipts $59,196,862 $39,883,000 

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

2 
 

 

 

 

Table 2: Restoration Charges by Beneficiary 

Payment by Beneficiary 

FY 2011 

Actual Receipts 

FY 2013 

Projected Receipts 

Restoration Charges - Irrigation $22,947,707 $24,214,646 

Restoration Charges - M&I $5,705,841 $6,721,584 

Restoration Charges - Power $20,960,452 $8,645,770 

Grand Total $49,614,000 $39,582,000 

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

Charges are not to exceed $30.0 million (1992 dollars) on a 3-year rolling average per the 

CVPIA which generates peaks and valleys in the receipts. Fiscal Year 2011 was a mid-high year 

and FY 2013 is projected to be a low 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 2011, 

Reclamation spent $38.4 million (or 77%) on habitat related activities. Reclamation projects 

habitat restoration spending to fall slightly to $33.1 million for FY 2013. 

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 2011, Reclamation spent $11.2 million (or 23%) on 

fish and wildlife restoration activities, and projections for FY 2013 show spending to be $6.0 

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 2011 for Habitat Restoration, 

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

3 
Fish Restoration Program 

other CVP Impacts 

Dedicated Project Yield 

Water Acquisition 

Flow Fluctuation Study 

San Joaquin River Restoration Program 

San Joaquin Basin Action Plan 

Refuge Water Supply/Conveyance & 

Construction 

Ecosystem/Water Operations Study 

Land Retirement 

_"' N J: 

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0 0 

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-.I 

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0 0 0 0 p 0 0 0 ·o 0 0 0 0 0 0 

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0 

0 0 

-0 -

0 0 

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

4 
,000,000 

$7,000,000 

$6,000,000 

$5,000,000 

$4,000,000 

$3,000,000 

$2,000,000 

$1 ,000,000 

$0 

FY 2011 CVPIA Expenditures 

Other Fish and Wildlife Restoration Activities 

....,, 

06 C: 

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Chart 2 

The remaining $8.2 million of FY 2011 expenditures were used for fish and wildlife restoration 

activities. For specific uses, refer to Schedule 4. 

5 
 

 

 

 

 

 

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 provisions to Reclamation and the U.S. 

Fish and Wildlife Service. 

Receipts: All funds paid into the CVP Restoration Fund by CVP water and power contractors 

which are also used to pay for the projects and facilities set forth in section 3406(b) which act as 

an offset against any water and power contractor cost share obligations that are otherwise 

provided for in the title. 

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. 

6 
 

Schedule 1 

Central Valley Project Restoration Fund 

Revenues and Expenditures 

for Fiscal Year 2011 (Actual) and Fiscal Year 2013 (Projected) 

REVENUES: 

FY 2011 

(Actual) 

FY 2013 

(Projected) 

Non-Discretionary Revenues: 

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

Tiered Water Charges (Subsection 3405(d)) 192,125 300,000 

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

Friant Division Surcharges (Subsection 3406(c)(1)) 3/ See Schedule 2 

15 

7,933,613 1/ 

0 

0 2/ 

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

Subtotal - Non-Discretionary Revenues 

1,457,109 

9,582,862 

1,000 

301,000 

Discretionary Revenues: 

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 49,614,000 39,582,000 

Contributions: 

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

TOTAL REVENUES 59,196,862 39,883,000 

EXPENDITURES: 

Expenditures (Subsections 3406, 3408 & 3410) See Schedule 4 49,567,956 39,883,000 

Expenditures of Non-Federal Contributions 0 0 

TOTAL EXPENDITURES 49,567,956 39,883,000 

NET INCREASE/DECREASE (Revenues less Expenditures) 9,628,907 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 (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. 

7 
Schedule 2 

Central Valley Project Restoration Fund 

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

for Fiscal Year 2011 (Actual) and Fiscal Year 2013 (Projected) 

FY 2011 FY 2013 

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

Service Area: 

Friant-Kern Canal $6,077,258 $0 

Cross Valley Canal 2,513 0 

Madera Canal 1,216,044 0 

Friant Dam 8,036 0 

Total Irrigation Revenues $7,303,851 $0 

Municipal & Industrial (M&I) Revenues: 

Service Area: 

Friant-Kern Canal $628,131 $0 

Cross Valley Canal 0 0 

Madera Canal 0 0 

Friant Dam 1,631 0 

Total M&I Revenues $629,762 $0 

GRAND TOTAL $7,933,613 $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 

8 
 Schedule 3 

Central Valley Project Restoration Fund 

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

for Fiscal Year 2011 (Actual) and Fiscal Year 2013 (Projected) 

FY 2011 FY 2013 

(Actual) (Projected) 

Municipal & Industrial (M&I) 

$786,895 

(126,071) 1/ 

11,979 

233,014 

$905,817 

$757,486 

729,224 

40,512 

291,690

$1,818,912 

$866,889 

111,238 

199,476 

254,752 

1,228,216 

$2,660,572 

$1,427,238 

136,122 

11,149 

0 

1,708,248

$3,282,757 

$214,723 

4,258 

1,297,285 

0 

0 

0 

1,800 

0 

$1,518,065 

$213,112 

2,739 

994,224 

15,767 

0 

0 

0 

0

$1,225,842 

$34,237 

26,295 

150,519 

89,272 

40,768 

122,550 

$463,640 

$29,234 

29,947 

77,525 

46,832 

41,031 

166,976

$391,545 

$0 

22,968 

970 

0 

0 

133,808 

$157,746 

$0 

1,912 

616 

0 

0 

0

$2,528 

$5,705,841 $6,721,584 

FY 2011 

$22,947,707 

5,705,841 

20,960,452 

$49,614,000 

FY 2013 

$24,214,646 

6,721,584 

8,645,770

$39,582,000 

Service Areas: 

FOLSOM 

Folsom Dam & Reservoir 

Folsom-South Canal 

Sugar Pine Dam & Reservoir 

Sly Park Dam & Reservoir 

 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-Kern 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 

Corning Canal 

Tehama-Colusa Canal 

Black Butte Dam & Reservoir 

Colusa Basin Drain 

Feather River 

Sacramento River - Willows 

 Subtotal Willows 

GRAND TOTAL 

FY 2011 FY 2013 

(Actual) (Projected) 

Irrigation 

$61,477 $0 

0 0 

0 2,280 

19,217 63,323 

$80,694 

$0 

1,378,195 

1,092,236 

0 

219,053 

$2,689,484 

$7,988,485 

10,586 

7,858,659 

272,596 

1,634,140 

226,421 

221,160 

222,960 

$18,435,007 

$0 

0 

0 

0 

0 

(26311.04) 2/ 

$65,603 

$0 

1,481,724 

1,065,133 

0 

423,075 

$2,969,932 

$7,535,594 

0 

6,871,942 

389,285 

1,612,043 

286,829 

303,951 

303,951 

$17,303,596 

$0 

0 

0 

0 

0 

38,576 

(26311.04) $38,576 

$0 $57,751 

413,404 1,567,476 

3,800 9,258 

0 0 

98,200 189,969 

1,253,429 2,012,486 

$1,768,833 $3,836,940 

$22,947,707 $24,214,646 

Summary of Restoration Charges for Water and Power: 

Restoration Charges - Irrigation 

Restoration Charges - M&I 

Restoration Charges - Power 

 Grand Total 

1/ Contractor payments were applied to the incorrect program in FY 2007 and FY 2008, 

then corrected to the proper program in FY 2011. 

2/ Contractor payments were applied to the incorrect revenue source code in FY 2010, 

then corrected to the proper revenue source code in FY 2011. 

9 
Schedule 4 

Central Valley Project Restoration Fund 

Restoration Fund Expenditures 

for Fiscal Year 2011 (Actual) and Fiscal Year 2013 (Projected) 

FY 2011 FY 2013 

(Actual) (Projected) 

$5,388,810 $5,500,000 

4,094,758 3,500,000 

775,119 600,000 

13,812,034 11,100,000 

36,903 50,000 

2,115,697 2,000,000 

142,229 0 

10,818,977 9,200,000 

732,097 600,000 

488,025 500,000 

$38,404,649 $33,050,000 

$1,657 $0 

924,410 555,000 

1,253,471 903,000 

1,702,713 1,300,000 

7,278,658 3,200,000 

$11,160,909 $5,958,000 

$0 $875,000 

$2,398 $0 

$49,567,956 $39,883,000 

FISH AND WILDLIFE RESTORATION ACTIVITIES 

Habitat Restoration, Improvement and Acquisition 

Anadromous Fish Restoration Program 

Other CVP Impacts 

Dedicated Project Yield 

Water Acquisition 

Flow Fluctuation Study 

San Joaquin River Restoration Program 

San Joaquin Basin Action Plan 

Refuge Water Supply/Conveyance & Construction 3406(d)(1)(2)(5) 

CVPIA 

SUBSECTION 

3406(b)(1) 

3406(b)(1) Other 

3406(b)(2) 

3406(b)(3) 

3406(b)(9) 

3406(c)(1) 

3406(d) 

Ecosystem/Water Operations Study 3406(g) 

Land Retirement 3408(h) 

Subtotal 

Other Fish and Wildlife Restoration Activities 

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

Clear Creek Restoration 3406(b)(12) 

Spawning Gravel 3406(b)(13) 

Comp Assess. & Monitoring Prgm 3406(b)(16) 

Anadromous Fish Screen Program 3406(b)(21) 

Subtotal 

Other Expenses 

CVPIA Administration 3410 

Interest Expense 3410 

GRAND TOTAL EXPENDITURES 

10