ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

October 1, 2007 - September 30, 2008 (Actual) 

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

September 2009 

Bureau of Reclamation 

United States Department of the Interior 
TABLE OF CONTENTS 

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

Restoration Fund Revenues and Expenditures for Fiscal Year 2008 (Actual) and Fiscal Year 

2010 (Projected) (Schedule 1) ...... ...... .... .. .... .. .... .. ........ .... .... .. .... .. .. ........ ...... .... 6 

Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2008 (Actual) and Fiscal 

Year 2010 (Projected) (Schedule 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2008 (Actual) and Fiscal Year 

2010 (Projected) (Schedule 3) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8 

Restoration Fund Expenditures for Fiscal Year 2008 (Actual) and Fiscal Year 2010 (Projected) 

(Schedule 4) ......................... ..... ........................... .... ..... .... ...... .. ~.. . . . . . . . . . . . .. . 9 
CENTRALVALLEYPROJECTIMPROVEMENTACT 

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 sixteenth annual financial 

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

expenditures (uses) during Fiscal Year (FY) 2008 as well as projected CVPRF revenues and 

expenditures during FY 2010. For purposes of this report, revenues are actual receipts 

(payments) processed. 

In FY 2008, the Bureau of Reclamation (Reclamation) collected approximately $52.9 million 

into the CVPRF and spent $45.6 million on habitat restoration, improvement, and acquisition, 

and other fish and wildlife restoration activities. For FY 2010, the projection for revenues is 

$35.3 million and $35.3 million for expenditures. Schedule 1 provides an overall view of 

Central Valley Project Restoration Fund revenues and expenditures. Schedule 2 and 3 detail 

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 and CALFED Bay-Delta funding. These three funding sources are in addition to 

the Central Valley Project Restoration Fund and 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 .1 million in projected FY 

2010 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 ofrevenues (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, enhancement, and mitigation as project purposes having equal priority 

1 
with power generation, irrigation, and domestic water uses. 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 (CVPRF) which collects charges 

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 2008 receipts of $52.9 million by 

revenue type and projected FY 2010 receipts by revenue type totaling $35.3 million. Central 

Valley Project Restoration Fund receipts are calculated by applying the applicable charge to CVP 

project water sold and delivered. 

Table 1: Restoration Fund Receipts 

FY 2008 FY 2010 

CVPIA Section Actual Recei ts Pro· ected Recei ts 

$0 $0 

$204,101 $300,000 

$0 $0 

$5 ,807,113 $0 

$1 ,520 $1 ,000 

$46,913,864 $35,057,000 

$52,926,599 $35,358,000 

As shown in Table 1, nearly all collections in FY 2008 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 CVPRF receipts will no longer include the Friant Division Surcharge. This 

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

Table 2: Restoration Fund Charges by Beneficiary 

FY 2008 FY 2010 

Payment by Beneficiary Actual Receipts Pro_jected Receipts 

Restoration Charges - Irrigation $12,204,419 $12,510,620 

Restoration Charges - M&I 7,698,357 6,661,981 

Restoration Charges - Power 27,011 ,088 15,884,399 

Grand Total $46,913,864 $35,057,000 

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 
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 2008, 

Reclamation spent $38.8 million (or 85%) on habitat related activities; we project habitat 

restoration spending to drop slightly to $32.0 for FY 2010. 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 2008, 

Reclamation spent $6.8 million (or 15%) on fish and wildlife restoration, and projections for FY 

2010 show spending to be $3 .4 million. These expenditures are detailed on Schedule 4 and do 

not include the three other funding sources mentioned above. 

Chart 1 and 2 below graphically depict the expenditures during FY 2008 for Habitation 

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

Reclamation spent $38.8 million on habitat related work, of which nearly 27 percent was used for 

water acquisition. 

Chart 1 

3 

$12,000,000 

$10,000,000 

$8 ,000,000 

$6,000,000 

$4,000,000 

$2,000,000 

$0 IIO'I Series1 I 

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FY 2008 CVPIA Expenditures . 

Habitation Restoration, Improvement and Acquisition 

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The remaining $6.8 million of FY 2008 expenditures were used for fish and wildlife restoration 

activities, with the anadromous fish screen program accounting for nearly 69 percent of total fish 

and wildlife restoration. For specific uses, you may refer to Chart 2 below. 

Chart 2 

4 

5,000,000 

4,500,000 

4,000,000 

3,500,000 

3,000,000 

2,500,000 

2,000,000 

1,500,000 

1,000,000 

500,000 

0 

FY 2008 CVPIA Expenditures 

Other Fish and Wildlife Restoration Activities 

l Series1 I 

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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 34. This landmark piece 

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

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

enhancement of fish and wildlife associated with 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 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 34, titled Central Valley Project Restoration Fund (CVPRF) (hereafter Restoration 

Fund). 

Uses: See outlays above. 

5 
Schedule 1 

Central Valley Project Improvement Act 

Restoration Fund Revenues and Expenditures 

for Fiscal Year 2008 (Actual) and Fiscal Year 2010 (Projected) 

FY 2008 FY 2010 

REVENUES: (Actual) (Projected) 

Non-Discretionary Revenues: 

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

Tiered Water Charges (Subsection 3405(d)) 204,101 300,000 

Water Transfer Charges (Subsection 3405(a)(1 )(8)) 0 0 

Friant Division Surcharges (Subsection 3406(c)(1)) See Schedule 2 5,807,113 0 1/ 

M&I Surcharges (Subsection 3407(d)(2)(A)) 1,520 1,000 

Subtotal - Non-Discretionary Revenues . 6,012,735 301,000 

Discretionary Revenues: 

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 46,913,864 35,057,000 

Contributions: 

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

TOT AL REVENUES $52,926,599 $35,358,000 

EXPENDITURES: 

Expenditures (Subsections 3406 & 3408) See Schedule 4 $45,582,318 $35,358,000 

Expenditures of Non-Federal Contributions 0 0 

TOTAL EXPENDITURES $45,582,318 $35,358,000 

NET INCREASE/DECREASE (Revenues less Expenditures) $7,344,281 $0 

1/ FY 2010 projected revenues for the Friant Division Surcharge is $0.00. All Friant revenues received as of October 1, 2009, 

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

Note: Schedules may reflect rounding differences. 

6 
Schedule 2 

Central Valley Project Improvement Act 

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

for Fiscal Year 2008 (Actual) and Fiscal Year 2010 (Projected) 

FY 2008 FY 2010 

Irrigation Revenues: (Actual) (Projected) 2/ 

Service Area: 

Friant-Kern Canal $4,028,111 $0 

Cross Valley Canal 1,974 1/ 0 

Madera Canal 969,255 0 

Friant Dam 70,931 0 

Mendota Pool 0 0 

Total Irrigation Revenues $5,070,271 $0 

Municipal & Industrial (M&I) Revenues: 

Service Area: 

Friant-Kern Canal $735,421 $0 

Cross Valley Canal 0 0 

Madera Canal 210 0 

Friant Dam 1,211 0 

Mendota Pool 0 0 

Total M&I Revenues $736,842 $0 

GRAND TOTAL $5,807,113 $0 

1/ Contractor paid the Friant Surcharge. The Friant Surcharge is not applicable 

to this delivery area. 

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 surcharg 

7 
Schedule 3 

Central Valley Project Improvement Act 

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

for Fiscal Year 2008 (Actual) and Fiscal Year 2010 (Projected) 

FY 2008 FY 2010 FY 2008 FY 2010 

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

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

FOLSOM 

Folsom Dam & Reservoir $0 $32,163 $1 ,003,033 $635,480 

Folsom-South Canal 73,276 0 187,675 47,445 

Sugar Pine Dam & Reservoir 0 1,637 21 ,830 13,995 

Sly Park Dam & Reservoir 67,491 45,480 327,857 205,851 

Subtotal Folsom $140,767 $79,281 $1 ,540,396 $902,771 

TRACY. 

Contra Costa Canal $0 $0 $1 ,721 ,424 $1 ,530,571 

Delta-Mendota Canal 716,222 527,1 22 166,287 141 ,553 

San Luis Canal-Tracy 555,226 520,237 (94,267) 1/ 19,127 

New Melones Dam & Reservoir 0 0 47,573 5,260 

San Felipe Unit 225,118 144,617 1,814,813 2,320,398 

Subtotal Tracy $1,496,566 $1 ,191 ,976 $3,655,829 $4,016,909 

FRESNO 

San Luis Canal-Fresno $2,075,783 $777,653 $209,979 $229,838 

Friant Dam 88,748 0 3,031 3,258 

Friant-Kern Canal 5,011 ,958 6,263,233 1,834,589 1,115,465 

Cross Valley Canal 280,558 408,929 0 0 

Madera Canal 1,217,107 1,482,775 520 0 

Delta-Mendota Pool 162,870 199,275 0 0 

Buchanan Unit 210,960 218,304 0 0 

Hidden Unit 210,960 218,304 0 0 

Subtotal Fresno $9,258,944 $9,568,474 $2,048,120 $1 ,348,561 

SHASTA 

Clear Creek Unit $0 $0 $98,351 $29,792 

Shasta Dam & Reservoir 0 0 36,813 20,692 

Spring Creek Conduit 0 0 79,263 56,399 

Cow Creek Unit 0 0 60,140 80,804 

Toyon Pipeline 0 0 33,348 35,306 

Sacramento River - Shasta 37,1 24 13,1 35 72,448 164,830 

Subtotal Shasta $37,1 24 $13,135 $380,364 $387,825 

WILLOWS 

Corning Canal $0 $0 $36 $127 

Tehama-Colusa Canal 8,878 8,250 4,807 3,603 

Black Butte Dam & Reservoir 0 0 913 1,274 

Colusa Basin Drain 0 0 0 0 

Feather River 101 ,845 51 ,301 0 0 

Sacramento River - Willows 1,160,296 1,598,204 67,894 910 

Subtotal Willows $1 ,271 ,019 $1 ,657,755 $73,649 $5,915 

GRAND TOTAL $12,204,419 $12,510,620 $7,698,357 $6,661 ,981 

Summary of Restoration Charges for Water and Power: FY 2008 FY 2010 

Restoration Charges - Irrigation $12,204,419 $12,510,620 

Restoration Charges - M&I 7,698,357 6,661 ,981 

Restoration Charges - Power 27,011 ,088 15,884,399 

Grand Total $46,913,864 $35,057,000 

1/ Contractor payments were incorrectly identified as M&I water in FY 2007 and FY 2008, then corrected to Irrigation 

in FY 2008. 

8 
Schedule 4 

Central Valley Project Improvement Act 

Restoration Fund Expenditures 

for Fiscal Year 2008 (Actual) and Fiscal Year 2010 (Projected) 

FISH AND WILDLIFE RESTORATION ACTIVITIES 

Habitation Restoration, Improvement and Acquisition 

Anadromous Fish Restoration Program 

In-Stream Flow Requirements 

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 

Tracy Pumping Plant & Fish Test Facility 

Coleman Fish Hatchery 

Clear Creek Restoration 

Spawning Gravel 

Old River Barrier 

CVP Project Assessment/Monitoring Program 

Anadromous Fish Screen Program 

Subtotal 

GRAND TOTAL EXPENDITURES 

CVPIA 

SUBSECTION 

3406(b)(1) 

3406(b)(1 )(B) 

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)(4) 

3406(b)(11) 

3406(b)(12) 

3406(b)(13) 

3406(b)(15) 

3406(b)(16) 

3406(b)(21) 

FY 2008 

(Actual) 

$5,708,148 

0 

2,003,347 

868,670 

10,473,877 

26,348 

319,515 

6,429,373 

1,957,306 

5,670,759 

4,532,973 

770,264 

$38,760,580 

$0 

77,619 

680,968 

961 ,509 

27 

402,078 

4,699,536 

FY 2010 

(Projected) 

$3,990,000 

200,000 

1,268,000 

600,000 

8,700,000 

50,000 

1,750,000 

1,000,000 

500,000 

8,550,000 

4,900,000 

500,000 

$32,008,000 

$250,000 

0 

600,000 

500,000 

0 

900,000 

1,100,000 

$6,821 ,738 $3,350,000 

$45,582,318 $35,358,000 

9