ANNUAL FINANCIAL REPORT 

CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

Public Law 102-575, Title XXXIV 

Revenues and Expenditures for the Periods: 

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

October 1, 2013- September 30, 2014 (Projected) 

September 2013 

Bureau of Reclamation 

United States Department of the Interior 
TABLE OF CONTENTS 

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

Restoration Fund Revenues and Expenditures for Fiscal Year 2012 (Actual) and Fiscal Year 

2014 (Projected)- Schedule 1 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... 7 

Friant Division Surcharges (Subsection 3406(c)(l)) for Fiscal Year 2012 (Actual) and Fiscal 

Year 2014 (Projected)- Schedule 2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... 8 

Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2012 (Actual) and Fiscal Year 

2014 (Projected)- Schedule 3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... 9 

Restoration Fund Expenditures for Fiscal Year 2012 (Actual) and Fiscal Year 2014 (Projected) -

Schedule 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 
CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

ANNUAL FINANCIAL REPORT 

EXECUTIVE SUMMARY 

Subsection 3407(f) ofthe 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 201

h annual financial report 

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

(receipts) and expenditures (uses) during Fiscal Year (FY) 2012 as well as projected CVPRF 

revenues and expenditures during FY 2014. For purposes ofthis report, revenues are actual 

receipts (payments) processed. 

In FY 2012, the Bureau of Reclamation (Reclamation) collected approximately $59.5 million 

from assessments and charges authorized by CVPIA. The majority of receipts, $53.3 million, 

went into the Restoration Fund and $6.2 million went into the San Joaquin River Restoration 

Fund (SJRRF). Reclamation spent $47.6 million on habitat restoration, improvement, and 

acquisition, and other fish and wildlife restoration activities. For FY 2014, the projection for 

revenues is $53.6 million and $53.2 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 into 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 2014 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 2012 receipts of$59.5 million by revenue type and projected FY 2014 

receipts by revenue type totaling $53.6 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 2012 FY 2014 

Description of Revenue CVPIA Section Actual Receipts Pro.iected Receipts 

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

Tiered Water Charges §3405(d) $107,457 $300,000 

Water Transfer Charges §3405(a)(l )(B) $37 $0 

Friant Division Surcharges §3406( c)( 1) $6,195,992 $0 

M&I Surcharges §3407(d)(2)(A) $436,654 $1,000 

Restoration Charges §3407(c) & (d) $52,760,699 $53,347,000 

Total Receipts $59,500,839 $53,648,000 

As shown in Table 1, nearly all collections in FY 2012 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 

FY 2012 FY 2014 

Payment by Beneficiary Actual Receipts Projected Receipts 

Restoration Charges - Irrigation $21,191,633 $25,646,777 

Restoration Charges - M&I $10,706,433 $7,131,976 

Restoration Charges - Power $20,862,633 $20,568,247 

Grand Total $52,760,699 $53,347,000 

Table 2 shows receipts for Restoration Charges by project beneficiaries. The 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 2012 was a high year 

and FY 2014 is a mid-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 2012, 

Reclamation spent $37.5 million (or 78%) on habitat related activities. Reclamation projects 

habitat restoration spending to increase slightly to $41.1 million for FY 2014. 

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 2012, Reclamation spent $7.6 million (or 16%) on 

fish and wildlife restoration activities, and projections for FY 2014 show spending to be $9.3 

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 2012 for Habitat Restoration, 

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

3 
FY 2012 CVP Res- Fund 

Expenditures tubiat ResiDI'alion,lmprovement and Acquisition 

$25,000,000 

$20,000,000 

$1 5.000,000 

$10.000,000 

$5,000 ,000 

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Chart 1 

Reclamation spent $37.5 million on habitat related work. See Schedule 4. 

4 
FY 2012 CVP Rest«adon Fund 

ExpencliturH 

Other Fish and wtldlh Res-on Activities 

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Chart 2 

An additional $7.6 million ofFY 2012 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 

offish, wildlife, and associated habitats within the CVP. The Secretary, in tum, 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 acts 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 2012 (Actual) and Fiscal Year 2014 (Projected) 

FY 2012 FY 2014 

REVENUES: (Actual) (Projected) 

Non-Discretionary Revenues: 

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

Tiered Water Charges (Subsection 3405(d)) 107.457 300,000 

Water Transfer Charges (Subsection 3405(a)(1 )(B)) 37 0 

Friant Division Surcharges (Subsection 3406(c)(1 )) 31 See Schedule 2 6,195,992 11 0 21 

M&l Surcharges (Subsection 3407(d)(2)(A)) 436,654 1,000 

Subtotal - Non-Discretionary Revenues 6,740,140 301,000 

Discretionary Revenues: 

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 52,760,699 53,347,000 

Contributions: 

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

TOTAL REVENUES 59,500,839 53,648,000 

EXPENDITURES: 

Expenditures (Subsections 3406, 3408 & 341 0) See Schedule 4 47,619,307 53,288,000 

Expenditures of Non-Federal Contributions 0 0 

TOTAL EXPENDITURES 47,619,307 53,288,000 

NET INCREASEIDECREASE (Revenues less Expenditures) 11,881 ,532 360,000 

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. 

7 
Schedule 2 

Central Valley Project Restoration Fund 

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

for Fiscal Year 2012 (Actual) and 

_ 

Fiscal 

_ 

Year 2014 (Projected) 

Irrigation ...... FY 2012 FY 2014 

Revenues: (Actual) ...... ....__ 1/ (Projected) 2/ 

Service Area: 

Friant-Kern Canal $4,479,097 $0 

Cross Valley Canal 0 0 

Madera Canal 1,163,785 0 

Friant Dam 1,904 0 

Total Irrigation Revenues $5,644,786 $0 

Municipal & Industrial (M&I) Revenues: 

Service Area: 

Friant-Kern Canal $549,211 $0 

Cross Valley Canal 0 0 

Madera Canal 0 0 

Friant Dam 1,995 0 

Total M&l Revenues $551,206 $0 

GRAND TOTAL $6,195,992 $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 2012 (Actual) and Fiscal Year 2014 (Projected) 

FY 2012 FY 2014 FY 2012 FY 2014 

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

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

FOLSOM 

Folsom Dam & Reservoir ($61 ,477) 1/ $0 $717,462 $762,407 

Folsom-South Canal 0 0 158,733 351 ,510 

Sugar Pine Dam & Reservoir 0 2,582 25,036 49,206 

Sly Park Dam & Reservoir 32,476 71 ,733 306,564 322,076 

Subtotal Folsom ($29,001) $74,315 $1 ,207,796 $1 ,485,199 

TRACY 

Contra Costa Canal $0 $0 $2,373,025 $1 ,467,843 

Delta-Mendota Canal 1,287,493 1,577,055 170,283 145,578 

San Luis Canal-Tracy 2,104,471 1,099,201 18,309 12,310 

New Melones Dam & Reservoir 0 0 1,010,278 283,677 

San Felipe Unit 565,299 325,666 3,269,828 1,937,930 

Subtotal Tracy $3,957,263 $3,001 ,922 $6,841,723 $3,847,339 

FRESNO 

San Luis Canal-Fresno $5,661 ,213 $7,795,121 $244,287 $223,825 

Friant Dam 2,518 0 5,281 2,881 

Friant-Kern Canal 6,003,309 7,527,961 1 ,836,198 1,085,127 

Cross Valley Canal 188,063 541,667 0 17,410 

Madera Canal 1,556,258 1,834,245 0 0 

Delta-Mendota Pool 314,621 301 ,248 0 0 

Buchanan Unit 225,360 344,316 0 0 

Hidden Unit 225,360 344,316 0 0 

Subtotal Fresno $14,176,702 $18,688,875 $2,085,766 $1 ,329,243 

SHASTA 

Clear Creek Unit $0 $0 $37,849 $30,830 

Shasta Dam & Reservoir 0 0 39,551 30,239 

Spring Creek Conduit 0 0 150,182 86,388 

Cow Creek Unit 0 0 100,756 67,743 

Toyon Pipeline 0 0 43,650 42,532 

Sacramento River - Shasta (2,097) 2/ 43,656 96,319 209,707 

Subtotal Shasta ($2,097) $43,656 $468,307 $467,439 

WILLOWS 

Corning Canal $16,140 $62,996 $56 $0 

Tehama-Colusa Canal 1,847,771 1 ,257,199 4,832 2,093 

Black Butte Dam & Reservoir 3,521 10,918 6,515 662 

Colusa Basin Drain 0 0 0 0 

Feather River 52,145 215,198 0 0 

Sacramento River- Willows 1 '169, 188 2,291 ,698 91 ,438 0 

Subtotal Willows $3,088,765 $3,838,008 $102,841 $2,756 

GRAND TOTAL $21 '191 ,633 $25,646,777 $10,706,433 $7,131,976 

Summary of Restoration Charges for Water and Power: FY 2012 FY 2014 

Restoration Charges- Irrigation $21 '191 ,633 $25,646,777 

Restoration Charges - M&l $10,706,433 7,131 ,976 

Restoration Charges - Power 20,862,633 20,568,247 

Grand Total $52,760,699 $53,347,000 

1/ Contractor payments were applied to the incorrect revenue source code in FY 2011 , 

then corrected to the proper revenue source code in FY 2012. 

2/ Contractor payments were applied to the incorrect revenue source code from FY 2008 to 2011 , 

then corrected to the proper revenue source code in FY 2012. 

9 
Schedule 4 

Central Valley Project Restoration Fund 

Restoration Fund Expenditures 

for Fiscal Year 2012 (Actual) and Fiscal Year 2014 (Projected) 

CVPIA FY 2012 FY 2014 

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

Habitat Restoration, Improvement and Acquisition 

Anadromous Fish Restoration Program 3406(b)(1) $8,179,419 $10,065,000 

Other CVP Impacts 3406(b)(1) Other 4,459,494 3,500,000 

Dedicated Project Yield 3406(b)(2) 247,644 600,000 

Water Acquisition 3406(b)(3) 2,933,660 2,856,000 

Flow Fluctuation Study 3406(b)(9) 69,394 0 

San Joaquin Basin Action Plan 3406(d) 377,001 0 

Refuge Water Supply/Conveyance & Construction 3406(d)(1 )(2)(5) 20,445,988 22,792,000 

Ecosystem/Water Operations Study 3406(g) 442,373 800,000 

Land Retirement 3408(h) 388,688 500,000 

Subtotal $37,543,660 $41 ,113,000 

Other Fish and Wildlife Restoration Activities 

Clear Creek Restoration 3406(b)(12) 874,447 800,000 

Spawning Gravel/Riparian Habitat 3406(b)(13) 821 ,075 1,200,000 

Comp Assess. & Monitoring Prgm 3406(b)(16) 2,018,553 2,200,000 

Anadromous Fish Screen Program 3406(b )(21) 3,924,812 5,070,000 

Subtotal $7,638,888 $9,270,000 

Other Expenses 

CVPIA Administration 3407 $794,243 $905,000 

Interest Expense 3407 $0 $0 

Public Law 111-11 

San Joaquin River Restoration Program 1,642,516 2,000,000 

GRAND TOTAL EXPENDITURES $47,619,307 $53,288,000 

10