Annual Financial Report

Central Valley Project 

Improvement Act

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods:

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

October 1, 2016 - September 30, 2017 (Projected)

Bureau of Reclamation 

United States Department of the Interior

September 2016
Table of Contents

Page

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

Restoration Fund Receipts and Expenditures for Fiscal Year 2015 (Actual) and Fiscal 

Year 2017 (Projected) - Schedule 1 ........................................................................................ 7 

Friant Division Surcharges (Subsection 3406(c)(1)) for Fiscal Year 2015 (Actual) and 

Fiscal Year 2017 (Projected) - Schedule 2 ............................................................................. 8 

Mitigation and Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2015 

(Actual) and Fiscal Year 2017 (Projected) - Schedule 3 ........................................................ 9 

Restoration Fund Expenditures for Fiscal Year 2015 (Actual) and Fiscal Year 2017 

(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 23rd annual financial 

report, and it describes Central Valley Project Restoration Fund (CVPRF or Restoration Fund) 

receipts (collections/payments) and uses (expenditures) during Fiscal Year (FY) 2015 as well as 

projected CVPRF receipts and expenditures during FY 2017. For purposes of this report, 

receipts are actual cash collections/payments received and processed.

In FY 2015, the Bureau of Reclamation (Reclamation) collected approximately $48.1 million

from assessments and charges authorized by CVPIA. The majority of receipts, $47.4 million,

went into the mitigation and restoration charges fund and $653 thousand went into the San 

Joaquin River Restoration Fund (SJRRF). Reclamation spent $48.8 million on habitat 

restoration, improvement, and acquisition, and other fish and wildlife restoration activities. For 

FY 2017, the projection for receipts is $55.9 million and $55.6 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 receipts and expenditures. 

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

detail the CVPRF receipts 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, and California Bay-Delta Restoration appropriations. These additional three

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 
2

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.

There are a few challenges facing Reclamation in implementing the provisions of CVPIA. The 

first includes 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 receipts, 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. The second challenge facing the CVPRF includes consecutive droughtyears, which reduces receipts from water contractors and increases assessments to power 

contractors. The third challenge is increasing costs to convey water supplies to CVPIA wildlife 

refuges under Section 3406(d)(1), requiring a greater share of the CVPRF and reducing the 

ability to meet other CVPIA requirements.

Background

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

Central Valley Project (CVP), to include fish and wildlife mitigation, 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 receipts from any source provided by the Act 

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

Restoration Fund Receipts

Public Law 102-575, Title XXXIV, Section 3407 established the Restoration Fund. Table 1 

shows actual FY 2015 receipts of $48.1 million by type of charges and projected FY 2017

receipts by type of charges totaling $55.9 million. Restoration Fund receipts are calculated by 

applying the applicable charge to CVP project water sold and delivered.
3

Table 1: Central Valley Project Restoration Fund Receipts

Type of Charges CVPIA Section

FY 2015

Actual Receipts

FY 2017

Projected Receipts

Pre-Renewal Charges §3404(c)(3) $0 $0

Tiered Water Charges §3405(d) $1,672 $300,000

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

Friant Division Surcharges §3406(c)(1) $653,234 $0

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

Mitigation and Restoration Charges §3407(c) & (d) $47,436,148 $55,606,000

Total Receipts $48,091,055 $55,907,000

As shown in Table 1, nearly all collections in FY 2015 were from two CVPIA subsections –

namely, Friant Division Surcharges and Mitigation 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.

Table 2: Mitigation and Restoration Charges by Beneficiary

Payment by Beneficiary

FY 2015

Actual Receipts

FY 2017

Projected Receipts

Mitigation and Restoration Charges –

Irrigation Water $3,557,692 $12,831,200

Mitigation and Restoration Charges –

Municipal & Industrial Water $3,488,759 $6,920,991

Mitigation and Restoration Charges –

Power $40,389,697 $35,853,809

Grand Total $47,436,148 $55,606,000

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 2015 was a high year and FY 2017 is also 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 2015, Reclamation spent $33.7

million (or 69%) on habitat related activities. Reclamation projects habitat restoration spending

to increase slightly to $34.4 million (or 62%) for FY 2017.

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 2015, Reclamation spent $12.4 million (or 25%) on 

fish and wildlife restoration activities, and projections for FY 2017 show spending to be $17.2

million (or 31%). These expenditures are detailed on Schedule 4 and do not include the three 

other funding sources mentioned above.

Figures 1 and 2 graphically depict the expenditures.
4

Figure 1: Expenditures – Habitat Restoration, Improvement and Acquisition

Anadromous Fish Restoration 

Program, $3,075,646 

Other CVP Impacts, $1,151,163 

Other CVP Impacts-Trinity 

River, $2,082,987 

Dedicated Project Yield, 

$778,626 

Water Acquisition, $175,745 

Flow Fluctuation Study, $1,366 

Trinity River Restoration, $26 

San Joaquin River Restoration 

Program, $125,888 

Refuge Water 

Supply/Conveyance & 

Construction, $25,383,392 

Ecosystem/Water Operations 

Study, $856,108 

Land Retirement, $118,137 

FY 2015 CVP Restoration Fund

Expenditures - Habitat Restoration, Improvement and Acquisition
5

Figure 2: Expenditures – Other Fish and Wildlife Restoration Activities

Clear Creek Restoration, 

$658,716 

Spawning Gravel/Riparian 

Habitat, $798,888 

Comp Assess. & Monitoring 

Prgm, $4,568,259 

Anadromous Fish Screen 

Program, $6,371,515 

FY 2015 CVP Restoration Fund 

EXPENDITURES - Other Fish and

Wildlife Restoration Activities 
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 mitigation, 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: 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. For purposes of this report, revenues are actual cash receipts (collections/payments) 

received and processed.

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. 
658,716 

798,888 

4,568,259

6,371,515

CLEAR C REEK 

REST ORA TION

SPAWNING 

GRAVEL/RIPARIAN 

HABITAT

COMP ASSE SS. & 

MONIT ORI NG P RGM

ANADROMOUS 

FISH SCREEN P ROG

RAM

FY 2015 CVP Restoration Fund Expenditures - Other Fish and Wildlife Restoration Activities
0

1,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,000

Clear Creek

Restoration

Spawning

Gravel/Riparian Habitat

Comp Assess. &

Monitoring Prgm

Anadromous Fish

FY 2015 CVP Restoration Fund

Expenditures - Other Fish and Wildlife Restoration Activities 
3,075,646 

1,151,163 

2,082,987 

778,626 

175,745 

1,366 

26 

125,888 

25,383,392 

ANADROMOUS 

FISH REST ORA TION P ROG RAM

OTHER C V P I MPACTS

OTHER C VP I MPACTS -T RINITY R IVER

DEDICATED P ROJE

C T YIELD

WATER A CQUISITION

FLOW 

F LUCTUATION 

STUDY

TRINITY 

RIVER REST

ORA TION

SAN JOA QUIN 

RIVER REST ORA

TIONP ROG RAM

REFUGE W ATER 

SUPPLY/CONVEYANCE/C

ONSTRUCTION

ECOSY STEM/

FY 2015 CVP RESTORATION FUND EXPENDITURES -

HABITAT RESTORATION, 

IMPROVEMENT AND ACQUISITION

Series1
0

5,000,000

10,000,00015,000,00020,000,00025,000,00030,000,000

Anadromous Fish

Restoration Program

Other CVP Impacts

Other CVP Impacts-Trinity

River

Dedicated Project Yield

Water Acquisition

Flow Fluctuation Study

Trinity River Restoration

San Joaquin River

Restoration Program

Refuge Water

Supply/Conveyance/Constru

ction

Ecosystem/Water

Operations Study

FY 2015 CVP Restoration Fund

Expenditures - Habitat Restoration, Improvement and Acquisition
7

Schedule 1

Central Valley Project Restoration Fund

Receipts (Cash Collections) and Expenditures (Uses)

for Fiscal Year 2015 (Actual) and Fiscal Year 2017 (Projected)

FY 2015 FY 2017

RECEIPTS: 1/ (Actual) (Projected)

Non-Discretionary Receipts:

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

Tiered Water Charges (Subsection 3405(d)) 1,672 300,000

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

Friant Division Surcharges (Subsection 3406(c)(1)) 4/ See Schedule 2 653,234 2/ 0 3/

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

Subtotal - Non-Discretionary Receipts $ 654,906 $ 301,000

Discretionary Receipts:

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 $ 47,436,148 $ 55,606,000

Contributions:

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

TOTAL RECEIPTS $ 48,091,055 $ 55,907,000

EXPENDITURES:

Expenditures (Subsections 3406, 3407, & 3408) See Schedule 4 $ 48,829,894 $ 55,606,000

Expenditures of Non-Federal Contributions 0 0

TOTAL EXPENDITURES $ 48,829,894 $ 55,606,000

NET INCREASE/DECREASE (Receipts less Expenditures) $ (738,839) $ 301,000

1/ Receipts are actual collections/payments (cash receipts) received and processed from water and power contractors

this fiscal year.

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 receipts for Friant Surcharge are $0.00 due to the fact that all receipts received are deposited into the

San Joaquin River Restoration Fund (SJRRF).

4/ All Friant Surcharge receipts received beginning October 1, 2009, are deposited into the SJRRF. 

Note: Schedules may reflect rounding differences.
8

Schedule 2

Central Valley Project Restoration Fund

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

for Fiscal Year 2015 (Actual) and Fiscal Year 2017 (Projected)

Irrigation Receipts:

FY 2015

(Actual) 1/

FY 2017

(Projected) 2/

Service Area:

Friant-Kern Canal $ 537,041 $ 0

Cross Valley Canal 0 0

Madera Canal 76,538 0

Friant Dam 0 0

Total Irrigation Receipts $ 613,579 $ 0

Municipal & Industrial (M&I) Receipts:

Service Area:

Friant-Kern Canal $ 16,610 $ 0

Cross Valley Canal 0 0

Madera Canal 22,582 0

Friant Dam 463 0

Total M&I Receipts $ 39,655 $ 0

GRAND TOTAL $ 653,234 $ 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 receipts for Friant Surcharge are $0.00 due to the fact that all receipts 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.
9

 Schedule 3

Central Valley Project Restoration Fund

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

for Fiscal Year 2015 (Actual) and Fiscal Year 2017 (Projected)

FY 2015 FY 2017 FY 2015 FY 2017

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

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

FOLSOM 

Folsom Dam & Reservoir $ 0 $ 0 $ 68,772 $ 644,580

Folsom-South Canal 0 0 0 439,534

Sugar Pine Dam & Reservoir 0 1,978 19,857 53,201

Sly Park Dam & Reservoir 20,448 54,953 152,119 381,521

 Subtotal Folsom $ 20,448 $ 56,931 $ 240,748 $ 1,518,836

TRACY 

Contra Costa Canal $ 0 $ 0 $ 1,230,395 $ 1,627,188

Delta-Mendota Canal 204,131 710,132 85,877 154,262

San Luis Canal-Tracy 125,862 533,382 6,933 34,591

New Melones Dam & Reservoir 0 59,052 233,008 506,681

San Felipe Unit 7,206 202,776 1,119,089 1,597,514

 Subtotal Tracy $ 337,200 $ 1,505,343 $ 2,675,302 $ 3,920,237

FRESNO

San Luis Canal-Fresno $ 606,274 $ 3,482,169 $ 176,368 $ 192,901

Friant Dam 0 0 1,323 2,353

Friant-Kern Canal 689,508 4,065,261 112,295 850,432

Cross Valley Canal 6,261 253,112 0 4,727

Madera Canal 107,007 902,467 64,972 0

Delta-Mendota Pool 14,126 177,684 0 0

Buchanan Unit 483,400 211,019 0 0

Hidden Unit 0 1/ 211,019 0 0

 Subtotal Fresno $ 1,906,576 $ 9,302,731 $ 354,957 $ 1,050,413

SHASTA 

Clear Creek Unit $ 0 $ 0 $ 12,976 $ 30,585

Shasta Dam & Reservoir 380 0 21,199 27,427

Spring Creek Conduit 0 0 11,352 87,771

Cow Creek Unit 21,689 0 69,113 78,063

Toyon Pipeline 0 0 0 2/ 29,165

Sacramento River - Shasta 38,820 29,685 75,758 174,652

 Subtotal Shasta $ 60,889 $ 29,685 $ 190,398 $ 427,664

WILLOWS

Corning Canal $ 0 $ 0 $ 40 $ 0

Tehama-Colusa Canal 407,077 345,323 2,545 2,798

Black Butte Dam & Reservoir 3,521 22 6,936 1,039

Colusa Basin Drain 0 41,028 0 0

Feather River (4,063) 3/ 40,576 0 0

Sacramento River - Willows 826,045 1,509,563 17,833 0

 Subtotal Willows $ 1,232,580 $ 1,936,512 $ 27,354 $ 3,836

GRAND TOTAL $ 3,557,692 $ 12,831,200 $ 3,488,759 $ 6,920,991

Summary of Restoration Charges for Water and Power: FY 2015 FY 2017

Restoration Charges - Irrigation $ 3,557,692 $ 12,831,200

Restoration Charges - M&I 3,488,759 6,920,991

Restoration Charges - Power 40,389,697 35,853,809

 Grand Total $ 47,436,148 $ 55,606,000

1/ A WBS (work breakdown structure) does exist in FBMS for Hidden Unit. However, all receipts (payments) have been 

recorded under Buchanan Unit.

2/ A WBS (work breakdown structure) does exist in FBMS for Toyon Pipeline. However, all receipts (payments) have 

been recorded under Shasta Dam & Reservoir.

3/ This credit is due to an accounting adjustment related to a cash Statement of Differences (SOD) issue.

The accounting adjustment still needs to be reversed as cash was inadvertently reduced.
10

Schedule 4

Central Valley Project Restoration Fund

Restoration Fund Expenditures

for Fiscal Year 2015 (Actual) and Fiscal Year 2017 (Projected)

CVPIA FY 2015 FY 2017

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

Habitat Restoration, Improvement and Acquisition

Anadromous Fish Restoration Program 3406(b)(1) $ 3,075,646 $ 4,900,000

Other CVP Impacts 3406(b)(1) Other 1,151,163 1,500,000

Other CVP Impacts-Trinity River 3406(b)(1) Other 2,082,987 1,500,000

Dedicated Project Yield 3406(b)(2) 778,626 500,000

Water Acquisition 3406(b)(3) 175,745 2,300,000

Flow Fluctuation Study 3406(b)(9) 1,366 0

Trinity River Restoration 3406(b)(23) 26 0

San Joaquin River Restoration Program 3406(c)(1) 125,888 0

Refuge Water Supply/Conveyance/Construction 3406(d)(1)(2)(5) 25,383,392 23,106,000

Ecosystem/Water Operations Study 3406(g) 856,108 600,000

Land Retirement 3408(h) 118,137 0

Subtotal $ 33,749,083 $ 34,406,000

Other Fish and Wildlife Restoration Activities

Contra Costa Canal Pump 3406(b)(5) $ 0 $ 0

Clear Creek Restoration 3406(b)(12) 658,716 3,700,000

Spawning Gravel/Riparian Habitat 3406(b)(13) 798,888 5,000,000

Comp Assess. & Monitoring Prgm 3406(b)(16) 4,568,259 6,000,000

Anadromous Fish Screen Program 3406(b)(21) 6,371,515 2,500,000

Subtotal $ 12,397,378 $ 17,200,000

Other Expenses

CVPIA Administration 3407 $ 1,702,216 $ 2,000,000

Interest Expense 3407 $ 0 $ 0

Public Law 111-11

San Joaquin River Restoration Program $ 981,217 $ 2,000,000

GRAND TOTAL EXPENDITURES $ 48,829,894 $ 55,606,000