Annual Financial Report

Central Valley Project

Improvement Act

Public Law 102-575, Title XXXIV

Revenues and Expenditures for the Periods:

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

October 1, 2015 - September 30, 2016 (Projected)

Bureau of Reclamation

United States Department of the Interior September 2016

Table of Contents

Page

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

Restoration Fund Revenues and Expenditures for Fiscal Year 2014 (Actual) and Fiscal 

Year 2016 (Projected) - Schedule 1........................................................................................ 7

Friant Division Surcharges (Subsection 3406(c)(1)) for Fiscal Year 2014 (Actual) and 

Fiscal Year 2016 (Projected) - Schedule 2 ............................................................................. 8

Mitigation and Restoration Charges (Subsection 3407(c) & (d)) for Fiscal Year 2014

(Actual) and Fiscal Year 2016 (Projected) - Schedule 3 ........................................................ 9

Restoration Fund Expenditures for Fiscal Year 2014 (Actual) and Fiscal Year 2016

(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 22nd annual financial 

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

revenues (receipts) and expenditures (uses) during Fiscal Year (FY) 2014 as well as projected 

CVPRF revenues and expenditures during FY 2016. For purposes of this report, revenues are 

actual cash receipts (payments) processed.

In FY 2014, the Bureau of Reclamation (Reclamation) collected approximately $46.3 million

from assessments and charges authorized by CVPIA. The majority of receipts, $44.8 million, 

went into the Restoration Fund and $1.4 million went into the San Joaquin River Restoration 

Fund (SJRRF). Reclamation spent $44.5 million on habitat restoration, improvement, and 

acquisition, and other fish and wildlife restoration activities. For FY 2016, the projection for 

receipts is $49.8 million and $49.5 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 revenues 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, 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 
2 

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 revenues, 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 revenues 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 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 (Receipts)

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

shows actual FY 2014 receipts of $46.3 million by revenue type and projected FY 2016 receipts

by revenue type totaling $49.8 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

Description of Revenue CVPIA Section

FY 2014

Actual Receipts

FY 2016

Projected Receipts

Pre-Renewal Charges §3404(c)(3) $0 $0

Tiered Water Charges §3405(d) $596 $300,000

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

Friant Division Surcharges §3406(c)(1) $1,435,128 $0

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

Restoration Charges §3407(c) & (d) $44,839,481 $49,528,000

Total Receipts $46,275,204 $49,829,000

As shown in Table 1, nearly all collections in FY 2014 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 2014

Actual Receipts

FY 2016

Projected Receipts

Restoration Charges - Irrigation $5,029,858 $8,024,338

Restoration Charges - M&I $5,488,970 $5,985,672

Restoration Charges - Power $34,320,653 $35,517,990

Grand Total $44,839,481 $49,528,000

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 2014 was a low year and FY 2016 is a medium 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 2014, Reclamation spent $33.4 

million (or 75%) on habitat related activities. Reclamation projects habitat restoration spending 

to increase slightly to $38.4 (or 78%) million for FY 2016. 

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 2014, Reclamation spent $8.8 million (or 20%) on 

fish and wildlife restoration activities, and projections for FY 2016 show spending to be $7.6 

million (or 15%). These expenditures are detailed on Schedule 4 and do not include the four 

other funding sources mentioned above. 

Figures 1 and 2 graphically depict the expenditures during FY 2014 for Habitat Restoration, 

Improvement and Acquisition (Figure 1), and Other Fish and Wildlife Restoration Activities

(Figure 2). 
4 

Figure 1: Expenditures – Habitat Restoration, Improvement and Acquisition

Reclamation spent $33.4 million on habitat related work. See Schedule 4.
5 

Figure 2: Expenditures – Other Fish and Wildlife Restoration Activities

An additional $8.8 million of FY 2014 expenditures were used for fish and wildlife restoration 

activities. For specific uses, refer to Schedule 4. 
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 (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. 
7

Schedule 1

Central Valley Project Restoration Fund

Revenues (Receipts) and Expenditures (Uses)

for Fiscal Year 2014 (Actual) and Fiscal Year 2016 (Projected)

FY 2014 FY 2016

REVENUES: 1/ (Actual) (Projected)

Non-Discretionary Revenues:

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

Tiered Water Charges (Subsection 3405(d)) 596 300,000

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

Friant Division Surcharges (Subsection 3406(c)(1)) 4/ See Schedule 2 1,435,128 2/ 0 3/

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

Subtotal - Non-Discretionary Revenues 1,435,723 301,000

Discretionary Revenues:

Restoration Charges (Subsection 3407(c) & (d)) See Schedule 3 44,839,481 49,528,000

Contributions:

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

TOTAL REVENUES 46,275,204 49,829,000

EXPENDITURES:

Expenditures (Subsections 3406, 3407, & 3408) See Schedule 4 44,533,531 49,528,000

Expenditures of Non-Federal Contributions 0 0

TOTAL EXPENDITURES 44,533,531 49,528,000

NET INCREASE/DECREASE (Revenues less Expenditures) 1,741,673 301,000

1/ Revenues are actual receipts (cash payments) received and processed. 

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.
Schedule 2

Central Valley Project Restoration Fund

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

for Fiscal Year 2014 (Actual) and Fiscal Year 2016 (Projected)

Irrigation Reviews

FY 2014 

(Actual) 1/

FY 2016 

(Projected) 2/

Service Area:

Friant-Kern Canal $1,148,097 $0

Cross Valley Canal 0 0

Madera Canal 241,318 0

Friant Dam 0 0

Total Irrigation Revenues $1,389,415 $0

Municipal & Industrial (M&I) Reviews:

Service Area:

Friant-Kern Canal $45,040 0

Cross Valley Canal 0 0

Madera Canal 0 0

Friant Dam 672 0

Total M&I Revenues $45,712 $0

GRAND TOTAL $1,435,128 $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.
Schedule 3

Central Valley Project Restoration Fund

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

for Fiscal Year 2014 (Actual) and Fiscal Year 2016 (Projected)

FY 2014 FY 2016 FY 2014 FY 2016

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

Irrigation Municipal & Industrial (M&I)

Service Areas:

FOLSOM

Folsom Dam and Reservoir $49,498 $0 $447,305 $548,904

Folsom-South Canal 0 0 0 284,210

Sugar Pine Dam & Reservoir 0 880 23,550 39,785

Sly Park Dam & Reservoir 47,951 24,433 232,385 260,412

Subtotal Folsom $97,450 $25,312 $703,240 $1,133,311

TRACY

Contra Costa Canal $0 $0 $1,836,539 $1,385,346

Delta-Mendota Canal 88,525 445,885 80,072 152,138

San Luis Canal – Tracy 119,911 338,375 3,969 9,852

New Melones Dam & Reservoir 0 0 1,210,674 481,761

San Felipe Unit 127,661 129,005 1,048,118 1,422,397

Subtotal Tracy $336,096 $913,265 $4,179,372 $3,451,494

FRESNO

San Luis Canal – Fresno $773,014 $2,230,156 $180,143 $163,741

Friant Dam 0 0 1,894 2,127

Friant Kern Canal 1,441,740 2,548,540 69,295 810,814

Cross Valley Canal 176,622 157,685 0 14,077

Madera Canal 462,870 548,478 0 0

Delta-Mendota Pool 6,830 101,176 0 0

Buchanan Unit 239,760 117,278 0 0

Hidden Unit 0 117,278 0 0 

Subtotal Fresno $3,100,836 $5,820,590 $251,332 $990,128

SHASTA

Clear Creek Unit $0 $0 $40,877 $25,911

Shasta Dam & Reservoir 0 0 40,376 23,871

Spring Creek Conduit 0 0 15,918 88,424

Cow Creek Unit 0 0 76,883 67,953

Toyon Pipeline 0 0 0 1/ 26,605

Sacramento River – Shasta 44,376 14,782 87,832 175,734

Subtotal Shasta $44,376 $14,782 $261,886 $408,499

WILLOWS

Corning Canal $0 $0 $116 $0

Tehama-Colusa Canal 575,231 398,011 498 1,707

Black Butte Dam & Reservoir 4,002 0 7,024 535

Colusa Basin Drain 0 0 0 0

Feather River 14,168 73,298 0 0

Sacramento River – Willows 857,700 779,075 85,503 0

Subtotal Willows $1,451,100 $1,250,383 $93,140 $2,242

GRAND TOTAL $5,029,858 $8,024,333 $5,488,970 $5,985,675

Summary of Restoration Charges for Water and Power FY 2014 FY 2016

Restoration Charges – Irrigation $5,029,858 $8,024,338

Restoration Charges – M&I 5,488,970 5,985,672

Restoration Charges – Power 34,320,653 35,517,990

Grand Total $44,839,481 $49,528,000

Service Areas:

1/ A WBS (work breakdown structure) does not exist in FBMS for Toyon Pipeline. All receipts (payments) have been

recorded under Shasta Dam & Reservoir.
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Schedule 4

Central Valley Project Restoration Fund

Restoration Fund Expenditures

for Fiscal Year 2014 (Actual) and Fiscal Year 2016 (Projected)

CVPIA FY 2014 FY 2016

SUBSECTION (Actual) (Projected)

Habitat Restoration, Improvement and Acquisition

Anadromous Fish Restoration Program 3406(b)(1) $7,699,180 $8,441,000

Other CVP Impacts 3406(b)(1) Other 1,566,163 1,500,000

Other CVP Impacts-Trinity River 3406(b)(1) Other 488,989 1,500,000

Dedicated Project Yield 3406(b)(2) (135,080) 1/ 400,000

Water Acquisition 3406(b)(3) 214,928 13,587,000

Flow Fluctuation Study 3406(b)(9) 50,963 0

San Joaquin River Restoration Program 3406(c)(1) 274,598 0

Refuge Water Supply/Conveyance & Construction 3406(d)(1)(2)(5) 22,213,456 12,400,000

Ecosystem/Water Operations Study 3406(g) 418,468 600,000

Land Retirement 3408(h) 624,001 0

Subtotal $33,415,667 $38,428,000

Other Fish and Wildlife Restoration Activities

Contra Costa Canal Pump 3406(b)(5) 224,723 0

Clear Creek Restoration 3406(b)(12) 626,955 700,000

Spawning Gravel/Riparian Habitat 3406(b)(13) 445,947 3,400,000

Comp Assess. & Monitoring Prgm 3406(b)(16) 1,961,935 1,000,000

Anadromous Fish Screen Program 3406(b)(21) 5,526,943 2,500,000

Subtotal $8,786,502 $7,600,000

Other Expenses

CVPIA Administration 3407 $1,125,637 $1,500,000

Interest Expense 3407 $0 $0

Public Law 111-11

San Joaquin River Restoration Program 1,205,726 2,000,000

GRAND TOTAL EXPENDITURES $44,533,531 $49,528,000

1/ The negative amount is the result of an accrual for FY 2013 being reversed on a reimbursable agreement.

FISH AND WILDLIFE RESTORATION ACTIVITIES