```

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2828 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2828

 To authorize the Secretary of the Interior to implement water supply 
    technology and infrastructure programs aimed at increasing and 
                 diversifying domestic water resources.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2003

Mr. Calvert (for himself, Mr. Dooley of California, Mr. Radanovich, Mr. 
 Ortiz, Mr. Nunes, Mr. Cardoza, Mr. Osborne, Mr. Baca, Mr. Renzi, Mr. 
Gallegly, Mr. Lewis of California, Mr. Thomas, Mr. Dreier, Mr. Hunter, 
 Mrs. Bono, Mr. Cox, Mr. Doolittle, Mr. Gary G. Miller of California, 
 Mr. McKeon, Mr. Royce, Mr. Cunningham, Mr. Rohrabacher, Mr. Issa, Mr. 
 Ose, and Mr. Pombo) introduced the following bill; which was referred 
  to the Committee on Resources, and in addition to the Committee on 
  Transportation and Infrastructure, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To authorize the Secretary of the Interior to implement water supply 
    technology and infrastructure programs aimed at increasing and 
                 diversifying domestic water resources.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Water Supply, Reliability, and 
Environmental Improvement Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Purposes.
       TITLE I--DEPARTMENT OF INTERIOR, COMPETITIVE GRANT PROGRAM

Sec. 101. General authority.
Sec. 102. Authority to study, plan, design, and construct.
Sec. 103. Criteria for grants.
Sec. 104. Annual report.
Sec. 105. Authorization of appropriations.
Sec. 106. Limitation on eligibility for funding.
 TITLE II--CALIFORNIA WATER SECURITY AND ENVIRONMENTAL ENHANCEMENT ACT

Sec. 201. CALFED Bay-Delta Program.
Sec. 202. Management.
Sec. 203. Implementation schedule report.
Sec. 204. Authorization of appropriations.
Sec. 205. Federal share of costs.
Sec. 206. Use of existing authorities and funds.
Sec. 207. Compliance with State and Federal law.
                         TITLE III--SALTON SEA

Sec. 301. Funding to address Salton Sea.
        TITLE IV--ESTABLISHMENT OF CENTRALIZED REGULATORY OFFICE

Sec. 401. Establishment of office.
Sec. 402. Acceptance and expenditure of contributions.
                  TITLE V--RURAL WATER SUPPLY PROGRAM

Sec. 501. Rural water supply program.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Bay-delta solution area.--The term ``Bay-Delta solution 
        area'' means the Bay-Delta watershed and the San Francisco Bay/
        Sacramento-San Joaquin Delta Estuary, California, and the areas 
        in which diverted/exported water is used.
            (2) Bay-delta watershed.--The term ``Bay-Delta watershed'' 
        means the Sacramento River-San Joaquin River Delta, and the 
        rivers and watersheds that are tributary to that delta.
            (3) Calfed bay-delta program.--The term ``CALFED Bay-Delta 
        Program'' means the programs, projects, complementary actions, 
        and activities undertaken through coordinated planning, 
        implementation, and assessment activities of the State and 
        Federal agencies in a manner consistent with the Objectives and 
        Solution Principles of the CALFED Bay-Delta Program as stated 
        in the Record of Decision.
            (4) Congressional authorizing committees.--The term 
        ``congressional authorizing committees'' means the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Resources of the House of Representatives.
            (5) Commissioner.--The term ``commissioner'' means the 
        Commissioner of the Bureau of Reclamation.
            (6) Environmental water account.--The term ``Environmental 
        Water Account'' means the water account established by the 
        Federal agencies and State agencies pursuant to the Record of 
        Decision to reduce incidental take and provide a mechanism for 
        recovery of species.
            (7) Federal agencies.--The term ``Federal agencies'' means 
        the Federal agencies that are signatories to Attachment 3 of 
        the Record of Decision.
            (8) Governor.--The term ``Governor'' means the Governor of 
        the State of California.
            (9) Implementation memorandum.--The term ``Implementation 
        Memorandum'' means the Calfed Bay-Delta Program Implementation 
        Memorandum of Understanding dated August 28, 2000, executed by 
        the Federal agencies and the State agencies, as such record of 
        decision may be adapted or modified by the Secretary in 
        accordance with applicable law.
            (10) Reclamation states.--The term ``Reclamation States'' 
        means the States of Arizona, California, Colorado, Idaho, 
        Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, 
        Oklahoma, Oregon, South Dakota, Utah, Washington, Wyoming, and 
        Texas.
            (11) Record of decision.--The term ``Record of Decision'' 
        means the Federal programmatic Record of Decision dated August 
        28, 2000, issued by the Federal agencies and supported by the 
        State.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (13) State.--The term ``State'' means the State of 
        California.
            (14) State agencies.--The term ``State agencies'' means the 
        California State agencies that are signatories to Attachment 3 
        of the Record of Decision.
            (15) Water resource agencies.--The term ``Water resource 
        agencies'' means the Federal agencies that are signatories to 
        Attachment 3 of the Record of Decision.
            (16) Water supply.--The term ``water supply'' means a 
        quantity of water that is developed or derived from--
                    (A) increased water yield;
                    (B) recycling existing sources;
                    (C) desalination of seawater or brackish water;
                    (D) surface or ground water storage;
                    (E) conservation; or
                    (F) other actions or water management tools that 
                improve the availability and reliability of water 
                supplies for beneficial uses in all water year types, 
                including critically dry years.
            (17) Water yield.--The term ``water yield'' means a new 
        quantity of water in storage that is reliably available in 
        critically dry years for beneficial uses.

SEC. 4. PURPOSES.

    The purposes of this Act are as follows:
            (1) To enhance and improve water supply, water yield, and 
        water reliability coordinated through the Secretary, in 
        cooperation, and consultation with Water Resource Agencies.
            (2) To foster and promote the development of supplemental 
        and new water supplies, coordinated through the Secretary, in 
        consultation and coordination with the Water Resource Agencies, 
        through water reuse and salinity management.
            (3) To establish a competitive, performance-based program, 
        coordinated through the Secretary, in consultation and 
        coordination with the Water Resource Agencies, to provide 
        financial incentives to entities to develop demonstration 
        projects designed to treat seawater and brackish water, 
        wastewater and impaired ground water.
            (4) To establish an office, in any Reclamation State 
        requesting such an office, for the use of all Federal and State 
        agencies that will be involved in issuing permits and 
        conducting environmental reviews for water supply, water supply 
        capital improvement projects, levee maintenance, and delivery 
        systems in any Reclamation State requesting such an office.
            (5) To provide assistance to States, municipalities, other 
        local governmental agencies (including soil and water 
        conservation districts) and investor-owned utilities that 
        provide municipal water supply service pursuant to State law in 
        the design and construction of projects to desalinate seawater 
        and put to beneficial use impaired ground water and brackish 
        water.
            (6) To implement and abide by the 4 primary objectives and 
        solution principles set forth in the CALFED Bay-Delta Program. 
        To authorize funding and coordinate sustained funding sources, 
        through the Secretary, for the implementation of a 
        comprehensive program to achieve increased water yield and 
        water supply, improved water quality, and enhanced 
        environmental benefits as well as improved water system 
        reliability, water use efficiency, watershed management, water 
        transfers, and levee protection.
            (7) To implement other related provisions to improve water 
        supply and yield.

       TITLE I--DEPARTMENT OF INTERIOR, COMPETITIVE GRANT PROGRAM

SEC. 101. GENERAL AUTHORITY.

    (a) Establishment of a Water Resources Coordination Office.--There 
shall be established within the Office of the Secretary the Office of 
the Federal Water Resources Coordinator (referred to in this title as 
the ``Coordinator'') who shall be responsible for coordinating the 
Water Resource Agencies activities addressing water desalination 
(including sea and brackish water), impaired ground water, brine 
removal, and water reuse projects and activities authorized under this 
title.
    (b) Secretarial Responsibility.--The Secretary, through the 
Coordinator, shall carry out the responsibilities, as specifically 
identified as a responsibility of the Coordinator under this title, and 
may not delegate these responsibilities to the Water Resource Agencies. 
The Coordinator at its sole option may use the services of the Water 
Resource Agencies on any project deemed necessary.
    (c) Assessment of Existing Federal Authorities.--The Secretary, 
through the Coordinator and in consultation with the Water Resource 
agencies, shall develop and transmit to Congress no later than 60 days 
after enactment of this Act, an assessment report that identifies the 
following:
            (1) A list of authorities, including mandatory and 
        discretionary trust funds, other than those under this title, 
        to undertake activities under section 102.
            (2) A list of all Water Resource Agencies expenditures 
        since fiscal year 1998 undertaken for projects and activities 
        related to this title.
            (3) A plan of Water Resource Agencies coordination to meet 
        the criteria, and guidelines as determined under this title.
            (4) A detailed/coordinated Water Resource Agencies budget 
        review document, including outyears funding requirements.
            (5) Recommendations for alternative financing mechanisms.
    (d) Establishment of Guidelines for Activities Undertaken by the 
Coordinator.--
            (1) Rules and guidelines.--In carrying out activities under 
        this title the Secretary, acting through the Coordinator, in 
        coordination with the Water Resource Agencies, shall issue 
        rules and guidelines for the submission of selection, 
        solicitation, and timelines of eligible projects and activities 
        seeking grants assistance to analyze, plan, develop and 
        construct, including but not limited to, the following:
                    (A) Sea and brackish water desalination projects, 
                including analysis and technology development, 
                reclamation of wastewater, and impaired ground and 
                surface waters.
                    (B) Brine management and disposal, including 
                analysis and technology development. Such analysis 
                shall include, but not be limited to, the effects of 
                concentrate disposal and possible mitigation measures.
                    (C) Water reuse, including, but not limited to, 
                techniques for cleanup and treatment of ground water 
                contamination, especially ground water basins that are 
                the primary source of drinking water supplies.
            (2) Equitable selection.--The Secretary shall ensure the 
        rules and guidelines provide for the equitable selection, to 
the maximum extent practicable, of projects and distribution of grants 
among the eligible activities identified under this section.
            (3) Timeframe.--Such rules and guidelines shall be issued 
        not later than 90 days after the date of the enactment of this 
        Act.
    (e) Agency Participation.--The Coordinator, in consultation with 
the Water Resource Agencies, shall--
            (1) determine available and appropriate accounts, both 
        mandatory and permanent, including Federal trust funds; and
            (2) direct the Federal agency heads to spend authorized 
        funds, if available within their agency, based on their 
        proportional Federal interest.

SEC. 102. AUTHORITY TO STUDY, PLAN, DESIGN, AND CONSTRUCT.

    (a) In General.--The Secretary, through the Coordinator, in 
cooperation and consultation with the Water Resource Agencies, shall 
undertake a competitive grant program--
            (1) to investigate and identify opportunities for the 
        study, plan, and design of activities under this title; and
            (2) to construct demonstration and permanent facilities, or 
        the implementation of other programs and activities, to meet 
        the criteria under this title.
    (b) Conditions.--No grant may be made under this title for the 
design and construction of any project until after--
            (1) an appraisal investigation and a feasibility study 
        (which may be performed, if applicable, by the non-Federal 
        sponsor and submitted to the Secretary, through the 
        Coordinator, for review) have been completed and approved by 
        the Secretary, through the Coordinator;
            (2) the Secretary, through the Coordinator, has determined 
        that, if applicable, the non-Federal project sponsor has the 
        financial resources available to fund the non-Federal share of 
        the project's costs; and
            (3) the Secretary, through the Coordinator, has approved, 
        if applicable, a cost-sharing agreement with the non-Federal 
        project sponsor that commits the non-Federal project sponsor to 
        funding its share of the project's construction costs on an 
        annual basis, and ongoing operations and maintenance.

SEC. 103. CRITERIA FOR GRANTS.

    In making grants pursuant to this title, the Secretary, acting 
through the Coordinator shall give priority to those projects which 
meet at least one of the following criteria:
            (1) The requirements of the Secretary, as applicable, and 
        any applicable State requirements.
            (2) Is agreed to by the Federal and non-Federal entities 
        with authority and responsibility for the project.
            (3) Increase water supply yield.
            (4) Improve water use efficiency and water conservation.
            (5) Reduce or stabilize demand on existing Federal and 
        State water supply facilities.
            (6) Improve water quality.
            (7) Employ innovative approaches, including but not limited 
        to, ground water recharge.
            (8) Facilitate the transfer and adoption of technology.
            (9) Employ regional solutions that increase the 
        availability of locally and regionally developed water 
        supplies.
            (10) Remediate a contaminated ground water basin.
            (11) Provide a secure source of new water supplies for 
        national defense activities.
            (12) Reduce the threat of a water supply disruption as a 
        result of a natural disaster or acts of terrorism.
            (13) Help Water Resource Agencies meet existing legal 
        requirements, contractual water supply obligations, Indian 
        trust responsibilities, water rights settlements, water quality 
        control plans and department of health requirements, Federal 
        and State environmental laws, the Federal Water Pollution 
        Control Act, or other obligations.
            (14) Promote and applies a regional or watershed approach 
        to water resource management or cross-boundary issues, 
        implements an integrated resources management approach, 
        increases water management flexibility, or forms a partnership 
        with other entities.
            (15) Improve health and safety of the general public.
            (16) Provide benefits outside the region in which the 
        project occurs.
            (17) Provide benefits to the agricultural community.

SEC. 104. ANNUAL REPORT.

    The Secretary shall provide the Congress an annual report that 
includes the following:
            (1) A list of projects, and project details, amount of 
        past, current, and projected funding.
            (2) Documentation of the accounts within the Water Resource 
        Agencies funding.
            (3) The benefits gained by projects, and to which 
        beneficiaries and users, funded under this title.
            (4) An assessment of how the project met each of the 
        evaluation criteria under this title.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

    (a) Activities and Projects Under This Title.--
            (1) Determination of water resources agency 
        participation.--If existing authorities are not available to 
        carry out activities addressed under this title, the 
        Coordinator, in consultation with the Water Resource agencies, 
        shall make the determination of Federal participation and 
        Federal agency cost share.
            (2) Funding.--Subject to section 105(a)(1) and section 
        105(b), there are authorized to be appropriated--
                    (A) $50,000,000 for fiscal year 2004; and
                    (B) $100,000,000 for each fiscal year thereafter.
    (b) Limitations on Grants.--
            (1) Location of project.--Grants carried out by the 
        Secretary, through the Coordinator, may be carried out through 
        the 50 States.
            (2) Per state limit.--Except as provided in under this 
        section, of the amount available in a fiscal year for grants 
        under this title, not more than 30 percent may be used for 
        projects in a single State.
    (c) Cost Sharing.--Except as provided under this section, and 
notwithstanding any other provision of this title. Grants for projects 
receiving Federal assistance under this title shall not exceed the 
lesser of $50,000,000 (indexed annually for inflation) or 35 percent of 
the total cost of the project.

SEC. 106. LIMITATION ON ELIGIBILITY FOR FUNDING.

    A project that receives funds under this Act shall be ineligible to 
receive Federal funds from any other source for the same purpose unless 
such funds are provided to ensure compliance with a Federal mandate.

 TITLE II--CALIFORNIA WATER SECURITY AND ENVIRONMENTAL ENHANCEMENT ACT

SEC. 201. CALFED BAY-DELTA PROGRAM.

    (a) Findings.--Congress finds as follows:
            (1) The mission of the CALFED Bay-Delta Program is to 
        develop and implement a long-term comprehensive plan that will 
        increase water supply and yield, improve water management, and 
        restore the ecological health of the Bay-Delta solution area.
            (2) The CALFED Bay-Delta Program was developed as a joint 
        Federal-State program to deal effectively with the 
        multijurisdictional issues involved in managing the Bay-Delta 
        Watershed.
    (b) In General.--
            (1) Authorization.--The Federal agencies, in consultation 
        with State agencies, are authorized to participate in the 
        CALFED Bay-Delta Program, in accordance with this title, and 
        consistent with the Objectives and Solution Principles set 
        forth in the Record of Decision.
            (2) Goals.--The goals of the CALFED Bay-Delta Program shall 
        consist of components that include water supply and yield, 
        ecosystem restoration, water supply reliability, conveyance, 
        water use efficiency, water quality, water transfers, 
        watersheds, Environmental Water Account, levee stability, and 
        science.
            (3) Balance.--CALFED Bay-Delta Program activities 
        consisting of protecting water quality, including but not 
        limited to, drinking water quality, restoring ecological 
        health, improving water supply reliability, including 
        additional water supply and water yield and conveyance, and 
        protecting levees in the Bay-Delta watershed, shall progress in 
        a balanced manner.
    (c) Administration of Activities.--
            (1) In general.--The Secretary and the heads of the Federal 
        agencies are authorized to carry out the activities described 
        in this title, subject to the cost-share and other provisions 
        of this title, if the activity--
                    (A) has been subject to environmental review and 
                approval as required under applicable Federal and State 
                law; and
                    (B) has been approved and certified by the 
                Secretary to be consistent with the Objectives and 
                Solution Principles of the CALFED Bay-Delta Program as 
                stated in Record of Decision.
            (2) Multiple benefit projects favored.--The Secretary and 
        Federal agencies are authorized to carry out the activities set 
        forth in this title. In selecting projects and programs for 
        increasing water yield and water supply, improving water 
        quality, and enhancing environmental benefits, projects and 
        programs with multiple benefits shall be emphasized.
            (3) Elements regulated.--To the extent that CALFED Bay-
        Delta Program projects and elements are subject to regulation 
        under section 404 of the Clean Water Act, the United States 
        Army Corps of Engineers and the United States Environmental 
        Protection Agency shall not consider, as alternatives to 
        projects that are elements of the overall CALFED Bay-Delta 
        Program, programs, projects, or actions beyond those described 
        in the Record of Decision, nor shall they favor one CALFED Bay-
        Delta Program project or element over another.
            (4) Balance.--The Secretary shall ensure that all elements 
        of the CALFED Bay-Delta Program need to be completed and 
        operated cooperatively to maintain the balanced progress in all 
        CALFED Bay-Delta Program areas.
    (d) Program Activities.--
            (1) Water storage.--Except as provided by section 207(b), 
        the amounts authorized to be appropriated for fiscal years 2004 
        through 2007 under this Act, no more than $102,000,000 may be 
        expended for the following:
                    (A) Water storage supply and yield.--For purposes 
                of implementing the CALFED Bay-Delta Program, the 
                Secretary is authorized to undertake all necessary 
                planning activities and feasibility studies required 
                for the development of recommendations by the Secretary 
                to Congress on the construction and implementation of 
                specific water supply and yield, ground water 
                management, and ground water storage projects and 
                implementation of comprehensive water management 
                planning. The requirements of section 9(a) of the Act 
                of August 4, 1939 (43 U.S.C. 485h(a); 53 Stat. 1193) 
                shall be deemed to be met through the performance of a 
                feasibility study as authorized within this section as 
                well as those feasibility studies authorized under the 
                Consolidated Appropriations Resolution Fiscal Year 
                2003, Public Law 108-7, House Report 108-10, division 
                D, title II, section 215.
                    (B) Feasibility studies.--All feasibility studies 
                completed for storage projects as a result of this 
                section shall include identification of project 
                benefits and beneficiaries and a cost allocation plan 
                consistent with the benefits to be received, for both 
                governmental and non-governmental entities.
                    (C) Disapproval resolution.--If the Secretary 
                determines a project to be feasible, and meets the 
                requirements under subparagraph (B), the report shall 
                be submitted to Congress. If Congress does not pass a 
                disapproval resolution of the feasibility study during 
                the first 120 days before Congress (not including days 
                on which either the House of Representatives or the 
                Senate is not in session because of an adjournment of 
                more than three calendar days to a day certain) the 
                project shall be authorized, subject to appropriations.
                    (D) Water supply and water yield study.--(i) The 
                Secretary, acting through the Bureau of Reclamation and 
                in consultation with the State, shall conduct a study 
                of available water supplies and water yield and 
                existing demand and future needs for water--
                            (I) within the units of the Central Valley 
                        Project;
                            (II) within the area served by Central 
                        Valley Project agricultural water service 
                        contractors and municipal and industrial water 
                        service contractors; and
                            (III) within the Bay-Delta solution area.
                    (ii) Relationship to prior study.--The study under 
                clause (i) shall incorporate and revise as necessary 
                the study required by section 3408(j) of the Central 
                Valley Project Improvement Act of 1992 (Public Law 102-
                575).
                    (E)  Report.--The Secretary shall submit a report 
                to the congressional authorizing committees by not 
                later than 180 days after the date of the enactment of 
                this title describing the following:
                            (i) Water yield and water supply 
                        improvements, if any, for Central Valley 
                        Project agricultural water service contractors 
                        and municipal and industrial water service 
                        contractors.
                            (ii) All water management actions or 
                        projects that would improve water yield or 
                        water supply and that, if taken or constructed, 
                        would balance available water supplies and 
                        existing demand for those contractors and other 
                        water users of the Bay-Delta watershed with due 
                        recognition of water right priorities and 
                        environmental needs.
                            (iii) The financial costs of the actions 
                        and projects described under clause (ii).
                            (iv) The beneficiaries of those actions and 
                        projects and an assessment of their willingness 
                        to pay the capital costs and operation and 
                        maintenance costs thereof.
                    (F) Other activities.--Studying, developing and 
                implementing ground water management and ground water 
                storage projects (not to exceed $50,000,000); and
                    (G) Planning.--Comprehensive water management 
                planning (not to exceed $6,000,000).
            (2) Conveyance.--Except as provided by section 207(b), the 
        amounts authorized to be appropriated for fiscal years 2004 
        through 2007 under this Act, no more than $77,000,000 may be 
        expended for the following:
                    (A) South Delta Actions (not to exceed 
                $45,000,000):
                            (i) South Delta Improvements Program for 
                        the following:
                                    (I) To increase the State Water 
                                Project export limit to 8500 cfs, 
                                subject to subclause (VI).
                                    (II) To install permanent, operable 
                                barriers in the south Delta. The 
                                Federal Agencies shall cooperate with 
                                the State to accelerate installation of 
                                the permanent, operable barriers in the 
                                south Delta, with the intent to 
                                complete that installation not later 
                                than the end of fiscal year 2006.
                                    (III) To design and construct fish 
                                screens and intake facilities at 
                                Clifton Court Forebay and the Tracy 
                                Pumping Plant facilities.
                                    (IV) To increase the State Water 
                                Project export to the maximum 
                                capability of 10,300 cfs.
                            (ii) Reduction of agricultural drainage in 
                        south Delta channels and other actions 
                        necessary to minimize impacts of such drainage 
                        on water quality, including but not limited to, 
                        design and construction of the relocation of 
                        drinking water intake facilities to delta water 
                        users. The Secretary shall coordinate actions 
                        for relocating intake facilities on a time 
                        schedule consistent with subclause (i)(II).
                            (iii) Design and construction of lower San 
                        Joaquin River floodway improvements.
                            (iv) Installation and operation of 
                        temporary barriers in the south Delta until 
                        fully operable barriers are constructed.
                            (v) Actions to protect navigation and local 
                        diversions not adequately protected by the 
                        temporary barriers.
                            (vi) Actions to increase pumping shall be 
                        accomplished in a manner consistent with 
                        California law protecting:
                                    (I) deliveries to, costs of, and 
                                water suppliers and water users, 
                                including but not limited to, 
                                agricultural users, that have 
                                historically relied on water diverted 
                                from the Delta; and
                                    (II) the quality of water for 
                                existing municipal, industrial, and 
                                agricultural uses.
                            (vi) Actions at Franks Tract to improve 
                        water quality in the Delta.
                    (B) North Delta Actions (not to exceed 
                $12,000,000):
                            (i) Evaluation and implementation of 
                        improved operational procedures for the Delta 
                        Cross Channel to address fishery and water 
                        quality concerns.
                            (ii) Evaluation of a screened through-Delta 
                        facility on the Sacramento River.
                            (iii) Design and construction of lower 
                        Mokelumne River floodway improvements.
                    (C) Interties (not to exceed $10,000,000):
                            (i) Evaluation and construction of an 
                        intertie between the State Water Project and 
                        the Central Valley Project facilities at or 
                        near the City of Tracy.
                            (ii) Assessment of the connection of the 
                        Central Valley Project to the State Water 
                        Project's Clifton Court Forebay with a 
                        corresponding increase in the Forebay's 
                        screened intake.
                    (D) Evaluation and implementation of the San Luis 
                Reservoir lowpoint improvement project (not to exceed 
                $10,000,000).
            (3) Water use efficiency.--Of the amounts authorized to be 
        appropriated for fiscal years 2004 through 2007 under this Act, 
        no more than $153,000,000 may be expended for the following:
                    (A) Water conservation projects that provide water 
                supply reliability, water quality, and ecosystem 
                benefits to the Bay-Delta solution area (not to exceed 
                $61,000,000).
                    (B) Technical assistance for urban and agricultural 
                water conservation projects (not to exceed $5,000,000).
                    (C) Water recycling and desalination projects, 
                including but not limited to projects identified in the 
                Bay Area Water Recycling Plan and the Southern 
                California Comprehensive Water Reclamation and Reuse 
                Study (not to exceed $84,000,000), as follows:
                            (i) In providing financial assistance under 
                        this clause, the Secretary shall give priority 
                        consideration to projects that include regional 
                        solutions to benefit regional water supply and 
                        reliability needs.
                            (ii) The Secretary shall review any 
                        feasibility level studies for seawater 
                        desalination and regional brine line projects 
                        that have been completed, whether or not those 
                        studies were prepared with financial assistance 
                        from the Secretary.
                            (iii) The Secretary shall report to the 
                        Congress within 90 days after the completion of 
                        a feasibility study or the review of a 
                        feasibility study for the purposes of providing 
                        design and construction assistance for the 
                        construction of desalination and regional brine 
                        line projects.
                            (iv) The Federal share of the cost of any 
                        activity carried out with assistance under this 
                        clause may not exceed the lesser of 35 percent 
                        of the total cost of the activity or 
                        $50,000,000.
                    (D) Water measurement and transfer actions (not to 
                exceed $1,500,000).
                    (E) Certification of implementation of best 
                management practices for urban water conservation (not 
                to exceed $1,500,000).
            (4) Water transfers.--Of the amounts authorized to be 
        appropriated for fiscal years 2004 through 2007 under this Act, 
        no more than $3,000,000 may be expended for the following:
                    (A) Increasing the availability of existing 
                facilities for water transfers.
                    (B) Lowering transaction costs through permit 
                streamlining.
                    (C) Maintaining a water transfer information 
                clearinghouse.
            (5) Environmental water account.--Of the amounts authorized 
        to be appropriated for fiscal years 2004 through 2007 under 
        this Act, no more than $75,000,000 may be expended for 
        implementation of the Environmental Water Account.
            (6) Integrated regional water management plans.--Of the 
        amounts authorized to be appropriated for fiscal years 2004 
        through 2007 under this Act, no more than $95,000,000 may be 
        expended for the following:
                    (A) Establishing a competitive grants program to 
                assist local and regional communities in California in 
                developing and implementing integrated regional water 
                management plans to carry out the Objectives and 
                Solution Principles of the CALFED Bay-Delta Program as 
                stated in the Record of Decision.
                    (B) Implementation of projects and programs in 
                California that improve water supply reliability, water 
                quality, ecosystem restoration, and flood protection, 
                or meet other local and regional needs, that are 
                consistent with, and make a significant contribution 
                to, Stage 1 of the CALFED Bay-Delta Program.
            (7) Ecosystem restoration.--(A) Of the amounts authorized 
        to be appropriated for fiscal years 2004 through 2007 under 
        this title, no more than $100,000,000 may be expended for 
        projects under this subsection.
            (B) The Secretary is authorized to undertake the following 
        projects under this paragraph:
                    (i) Restoration of habitat in the San Francisco 
                Bay-Delta watershed, San Pablo Bay, and Suisun Bay and 
                Marsh, including tidal wetlands and riparian habitat.
                    (ii) Fish screen and fish passage improvement 
                projects.
                    (iii) Implementation of an invasive species 
                program, including prevention, control, and 
                eradication.
                    (iv) Development and integration of State and 
                Federal agricultural programs that benefit wildlife 
into the Ecosystem Restoration Program.
                    (v) Financial and technical support for locally-
                based collaborative programs to restore habitat while 
                addressing the concerns of local communities.
                    (vi) Water quality improvement projects to manage 
                salinity, selenium, mercury, pesticides, trace metals, 
                dissolved oxygen, turbidity, sediment, and other 
                pollutants.
                    (vii) Land and water acquisitions to improve 
                habitat and fish spawning and survival in the Bay-Delta 
                watershed.
                    (viii) Integrated flood management and levee 
                protection projects for improving ecosystem 
                restoration.
                    (ix) Scientific evaluations and targeted research 
                on program activities, including appropriate use of 
                adaptive management concepts.
                    (x) Preparation of management plans for all 
                properties acquired, and update current management 
                plans, prior to the purchase or any contribution to the 
                purchase of any interest in land for ecosystem.
                    (xi) Strategic planning and tracking of program 
                performance using established protocols and/or bio-
                indicators.
            (C) Project Initiation Report for each project, describing 
        project purpose, objective, and cost, shall be transmitted to 
        Congress following Secretarial certification, 30 days (not 
        including days on which either the House of Representatives or 
        the Senate is not in session because of an adjournment of more 
        than three calendar days to a day certain) prior to 
        implementing ecosystem restoration actions as described under 
        this paragraph. Such reports shall be required for all 
        ecosystem projects, (including comprehensive projects that are 
        composed of several components and are to be completed by 
        staged implementation) exceeding $20,000 in Federal funds. 
        Annual ecosystem restoration project summary reports shall be 
        submitted to Congress through the Secretary highlighting 
        progress of the project implementation. The reports required to 
        be submitted under this paragraph shall consider the following 
        on each project:
                    (i) A description of ecological monitoring data to 
                be collected for the restoration projects and how the 
                data are to be integrated, streamlined, compatible, and 
                designed to measure overall trends of ecosystem health 
                in the Bay-Delta watershed.
                    (ii) Whether the restoration project has integrated 
                monitoring plans and descriptions of protocols, or bio-
                indicators, to be used for gauging cost-effective 
                performance of the project.
                    (iii) Whether the proposed project is a part of a 
                larger, more comprehensive restoration project in a 
                particular part of the solution area, and if so, how 
                the proposed project contributes to the larger project.
                    (iv) A secretarial determination, or strategy, that 
                utilizes existing Federal land, State land, or other 
                land acquired for ecosystem restoration, with amounts 
                provided by the United States or the State, to the 
                extent that such lands are available within the CALFED 
                solution area.
                    (v) A determination of the potential cumulative 
                impacts, or induced damages of fee title, easement, 
                and/or lease acquisition of land on local and regional 
                economies, and adjacent land and landowners; and a 
                description of how such impacts will be mitigated.
                    (vi) A description of actions that will be taken to 
                mitigate any induced damages from the conversion of 
                agriculture land including the degree to which wildlife 
                and habitat values will increase due to the land 
                conversion.
            (D) Conditions, if applicable, for projects and activities 
        under this paragraph are as follows:
                    (i) A requirement that before obligating or 
                expending Federal funds to acquire land, the Secretary 
                shall first determine that existing Federal land, State 
                land, or other land acquired for ecosystem restoration 
                with amounts provided by the United States or the 
                State, to the extent such lands are available, is not 
                available for that purpose. If no public land is 
                available the Secretary, prior to any federal 
                expenditure for private land acquisition, shall--
                            (I) make an accounting of all habitat types 
                        located on publicly owned land throughout the 
                        solution area;
                            (II) not convert prime farm land and unique 
                        farm land, to the maximum extent as 
                        practicable, as identified by local, State, or 
                        Federal land use inventories, including the 
                        Natural Resources Conservation Service;
                            (III) not conflict with existing zoning for 
                        agriculture use; and
                            (IV) not involve other changes in existing 
                        environment due to location and nature of 
                        converting farmland to non-farmland use.
                    (ii) A requirement that in determining whether to 
                acquire private land for ecosystem restoration, the 
                Secretary shall--
                            (I) conduct appropriate analysis, including 
                        cost valuation to assure that private land 
                        acquisitions prioritize easements and leases 
                        over acquisition by fee title unless easements 
                        and leases are unavailable or unsuitable for 
                        the stated purposes;
                            (II) consider the potential cumulative 
                        impacts on the local and regional economies of 
                        transferring the property into government 
                        ownership and--
                                    (aa) describe the actions that will 
                                be taken, to the maximum extent 
                                practicable, to mitigate any induced 
                                damages; and
                                    (bb) determine that the land 
                                acquired will add increasing value to 
                                the purposes of ecosystem restoration;
                            (III) mitigate any potential induced 
                        damage, to the maximum extent practicable, of 
                        any conversion of agriculture land for 
                        ecosystem restoration due to the implementation 
                        of the CALFED Bay-Delta Program; and
                            (IV) partner with landowners and local 
                        agencies to develop cooperating landowner 
                        commitments that are likely to meet coequal 
                        objectives of achieving local economic and 
                        social goals and implementing the ecosystem 
                        restoration goals.
            (8) Watersheds.--Of the amounts authorized to be 
        appropriated for fiscal years 2004 through 2007 under this Act, 
        no more than $50,000,000 may be expended for the following:
                    (A) Building local capacity to assess and manage 
                watersheds affecting the Bay-Delta solution area.
                    (B) Technical assistance for watershed assessments 
                and management plans.
                    (C) Developing and implementing locally-based 
                watershed conservation, maintenance, and restoration 
                actions.
            (9) Water quality.--Of the amounts authorized to be 
        appropriated for fiscal years 2004 through 2007 under this Act, 
        no more than $50,000,000 may be expended for the following:
                    (A) Addressing drainage problems in the San Joaquin 
                Valley to improve downstream water quality, including 
                habitat restoration projects that reduce drainage and 
                improve water quality, provided that--
                            (i) a plan is in place for monitoring 
                        downstream water quality improvements;
                            (ii) State and local agencies are consulted 
                        on the activities to be funded; and
                            (iii) this clause is not intended to create 
                        any right, benefit, or privilege.
                    (B) Implementing source control programs in the 
                Bay-Delta watershed.
                    (C) Developing recommendations through technical 
                panels and advisory council processes to meet the 
                CALFED Bay-Delta Program goal of continuous improvement 
                in water quality for all uses.
                    (D) Investing in treatment technology demonstration 
                projects.
                    (E) Controlling runoff into the California aqueduct 
                and other similar conveyances.
                    (F) Addressing water quality problems at the North 
                Bay Aqueduct.
                    (G) Studying recirculation of export water to 
                reduce salinity and improve dissolved oxygen in the San 
                Joaquin River.
                    (H) Projects that may meet the Objectives and 
                Solution Principles of the water quality component of 
                CALFED Bay-Delta Program.
                    (I) Development of water quality exchanges and 
                other programs to make high quality water available to 
                urban areas.
                    (J) Development and implementation of a plan to 
                meet all existing water quality standards for which the 
                State and Federal water projects have responsibility.
            (10) Levee stability.--Of the amounts authorized to be 
        appropriated for fiscal years 2004 through 2007 under this Act, 
        no more than $70,000,000 may be expended for the following:
                    (A) Assisting local reclamation districts in 
                reconstructing Delta levees to a base level of 
                protection not to exceed $20,000,000.
                    (B) Enhancing the stability of levees that have 
                particular importance in the system through the Delta 
                Levee Special Improvement Projects program not to 
                exceed $20,000,000.
                    (C) Developing best management practices to control 
                and reverse land subsidence on islands in the Bay-Delta 
                watershed (not to exceed $1,000,000).
                    (D) Refining the Delta Emergency Management Plan 
                (not to exceed $1,000,000).
                    (E) Developing a Delta Risk Management Strategy 
                after assessing the consequences of failure levees in 
                the Bay-Delta watershed from floods, seepage, 
                subsidence, and earthquakes (not to exceed $500,000).
                    (F) Developing a strategy for reuse of dredged 
                materials on islands in the Bay-Delta watershed (not to 
                exceed $1,500,000).
                    (G) Evaluating and, where appropriate, 
                rehabilitating the Suisun Marsh levees (not to exceed 
                $6,000,000).
                    (H) Integrated flood management, ecosystem 
                restoration, and levee protection projects, including 
                design and construction of lower San Joaquin River and 
                lower Mokelumne River floodway improvements and other 
                projects under the Sacramento-San Joaquin Comprehensive 
                Study (not to exceed $20,000,000).
            (11) Monitoring and analysis.--Of the amounts authorized to 
        be appropriated for fiscal years 2004 through 2007 under this 
        Act, no more than $50,000,000 may be expended for the 
        following:
                    (A) Establishing and maintaining an independent 
                technical board, technical panels, and standing boards 
                to provide oversight and peer review of the CALFED Bay-
                Delta Program.
                    (B) Conducting expert evaluations and scientific 
                assessments of all CALFED Bay-Delta Program elements.
                    (C) Coordinating existing monitoring and scientific 
                research programs.
                    (D) Developing and implementing adaptive management 
                experiments to test, refine, and improve technical 
                understandings.
                    (E) Establishing performance measures and 
                monitoring and valuating the performance of all CALFED 
                Bay-Delta Program elements.
                    (F) Preparing an annual science report.
            (12) Program management, oversight, and coordination.--Of 
        the amounts authorized to be appropriated for fiscal years 2004 
        through 2007 under this Act, no more than $25,000,000 may be 
        expended by the Secretary, in cooperation with the State, for 
        the following:
                    (A) CALFED Bay-Delta Program-wide tracking of 
                schedules, finances, and performance.
                    (B) Multi-agency oversight and coordination of 
                CALFED Bay-Delta Program activities to ensure program 
                balance and integration.
                    (C) Development of interagency cross-cut budgets 
                and a comprehensive finance plan to allocate costs in 
                accordance with the beneficiary pays provisions of the 
                Record of Decision.
                    (D) Coordination of public outreach and 
                involvement, including tribal, environmental justice, 
                and public advisory activities under the Federal 
                Advisory Committee Act.
                    (E) Development of annual reports.
            (13) Diversification of water supplies.--Of the amounts 
        authorized to be appropriated for fiscal years 2004 through 
        2007 under this Act, no more than $30,000,000 may be expended 
        to diversify sources of level 2 refuge supplies and modes of 
        delivery to refuges and to acquire additional water for level 4 
        refuge supplies.
    (e) Authorized Actions.--The Secretary and the Federal agency heads 
are authorized to carry out the activities authorized by this title 
through the use of grants, loans, contracts, and cooperative agreements 
with Federal and non-Federal entities where the Secretary or Federal 
agency head determines that the grant, loan, contract, or cooperative 
agreement is likely to assist in implementing the authorized activity 
in an efficient, timely, and cost-effective manner.

SEC. 202. MANAGEMENT.

    (a) Coordination.--In carrying out the CALFED Bay-Delta Program, 
the Federal agencies shall coordinate, to the maximum extent 
practicable, their activities with the State agencies.
    (b) Public Participation.--In carrying out the CALFED Bay-Delta 
Program, the Federal agencies shall cooperate with local and tribal 
governments and the public through a federally chartered advisory 
committee or other appropriate means, to seek input on program elements 
such as planning, design, technical assistance, and development of peer 
review science programs.
    (c) Objective Review and Analysis.--In carrying out the CALFED Bay-
Delta Program, the Federal agencies shall seek to ensure, to the 
maximum extent practicable, that--
            (1) all major aspects of implementing the CALFED Bay-Delta 
        Program are subjected to credible and objective scientific 
        review and economic analysis; and
            (2) major decisions are based upon the best available 
        scientific information.
    (d) Agencies' Discretion.--This Act shall not affect the discretion 
of any of the Federal agencies or the State agencies or the authority 
granted to any of the Federal agencies or State agencies by any other 
Federal or State law.
    (e) Status Reports.--The Secretary shall report, quarterly to the 
Congressional Committees, on the progress in achieving the water supply 
targets as described in Section 2.2.4 of the Record of Decision, the 
environmental water account requirements as described in Section 2.2.7, 
and the water quality targets as described in Section 2.2.9, and any 
pending actions that may affect the ability of the CALFED Bay-Delta 
Program to achieve those targets and requirements.

SEC. 203. IMPLEMENTATION SCHEDULE REPORT.

    (a) The Secretary, in cooperation with the Governor, shall submit a 
report of the CALFED Bay-Delta Program not later than 90 days after the 
date of the enactment of this Act and December 15 of each year 
thereafter to the appropriate authorizing and appropriating Committees 
of the Senate and the House of Representatives that describes the 
status and projected implementation schedule of all components through 
fiscal year 2008 of the CALFED Bay-Delta Program. The Report shall 
contain the following:
            (1) Statement of balance.--The report shall identify the 
        progress in each of the categories listed in paragraph (2). The 
        Secretary, in cooperation with the Governor, shall prepare and 
        certify a statement of whether the program is in balance taking 
        into consideration the following:
                    (A) The status of all actions, including goals, 
                schedules, and financing agreements and funding 
                commitments.
                    (B) Progress on storage projects, including yield, 
                conveyance improvements, levee improvements, water 
                quality projects, and water use efficiency programs and 
                reasons for any delays.
                    (C) Completion of key projects and milestones 
                identified in the Ecosystem Restoration Program.
                    (D) Development and implementation of local 
                programs for watershed conservation and restoration.
                    (E) Progress in improving water supply reliability 
                and implementing the Environmental Water Account.
                    (F) Achievement of commitments under State and 
                Federal endangered species laws.
                    (G) Implementation of a comprehensive science 
                program.
                    (H) Progress toward acquisition of the State and 
                Federal permits, including permits issued under section 
                404(a) of the Clean Water Act, for implementation of 
                projects in all identified program areas.
                    (I) Progress in achieving benefits in all 
                geographic regions covered by the CALFED Bay-Delta 
                Program.
                    (J) Status of actions that compliment the Record of 
                Decision.
                    (K) Status of mitigation measures addressed under 
                section 201(d)(7).
                    (L) Revisions to funding commitments and CALFED 
                Bay-Delta Program responsibilities.
            (2) Accomplishments in the past fiscal year and year-to-
        date in achieving the objectives of--
                    (A) additional and improved water storage; 
                including supply and yield;
                    (B) water quality;
                    (C) water use efficiency;
                    (D) ecosystem restoration;
                    (E) watershed management;
                    (F) levee system integrity;
                    (G) water transfers;
                    (H) water conveyance; and
                    (I) water supply reliability.
            (3) Revised schedule.--If the report and statement of 
        balance under subsection (a) concludes that the CALFED Bay-
        Delta Program is not progressing in a balanced manner so that 
        no certification of balanced implementation can be made, the 
        Secretary, in consultation with the Governor, shall prepare a 
        revised schedule to ensure that the CALFED Bay-Delta Program is 
        likely to progress in a balanced manner consistent with the 
        objectives and solution principles of the Record of Decision 
        and in consideration of subsections (a) and (b) of this 
        section. This revised schedule shall be subject to approval by 
        the Secretary, in consultation by the Governor, and upon such 
        approval shall be submitted to the appropriate authorizing and 
        appropriating Committees of the Senate and the House of 
        Representatives.
    (b) Crosscut Budget and Authorization of Appropriations.--
            (1) Crosscut budget.--The President's Budget shall include 
        the appropriate departmental and agency authorities, and 
        request for the level of funding for each of the Federal 
        agencies to carry out its responsibilities under the CALFED 
        Bay-Delta Program. Such funds shall be requested for the 
        Federal agency with authority and programmatic responsibility 
        for the obligation of such funds. No later than 30 days after 
        submission of the President's Budget to the Congress, the 
        Director of the Office of Management and Budget shall submit to 
        the appropriate authorizing and appropriating committees of the 
        Senate and the House of Representatives an updated interagency 
        budget crosscut report, as required under Public Law 108-7.
            (2) Financial summary.--As part of the crosscut budget 
        submission, a financial report certified by the Secretary, and 
        the Office of Management and Budget, containing a detailed 
        accounting of current year, budget year and all funds received 
        and obligated by all Federal and State agencies responsible for 
        implementing the CALFED Bay-Delta Program in the previous 
        fiscal year, a budget for the proposed projects (including a 
        description of the project, authorization level, and project 
        status) to be carried out through fiscal year 2008 the Federal 
        portion of funds authorized under this title, and a list of all 
        projects to be undertaken in the upcoming fiscal year with the 
        Federal portion of funds authorized under this title.

SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary and the 
heads of the Federal agencies $880,000,000 to pay the Federal share of 
programs and activities under this title for fiscal years 2004 through 
2007, in accordance with the provisions of this title. The funds shall 
remain available without fiscal year limitation.

SEC. 205. FEDERAL SHARE OF COSTS.

    (a) In General.--The Federal share of the cost of implementing of 
the CALFED Bay-Delta Program as set forth in the Record of Decision 
shall not exceed 33.3 percent.
    (b) CALFED Bay-Delta Program Beneficiaries.--
            (1) In general.--The Secretary shall ensure that all 
        beneficiaries, including the environment, shall pay for 
        benefits received from all projects or activities carried out 
        under the CALFED Bay-Delta Program. This requirement shall not 
        be limited to storage and conveyance projects and shall be 
        implemented so as to encourage integrated resource planning.

SEC. 206. USE OF EXISTING AUTHORITIES AND FUNDS.

    (a) Generally.--The heads of the Federal agencies shall use the 
authority under the alternative Acts identified by the Secretary to 
carry out the purposes of this title. Funds available under the 
alternative Acts shall be used before other funds made available under 
this title for the same activities.
    (b) Use of Funds.--In addition to funds authorized and appropriated 
for section 201(d)(1) or section 201(d)(2), the Secretary, in 
consultation with the heads of the Federal agencies, may use money 
appropriated for any activity authorized under this title for any 
activity authorized under section 201(d)(1) or section 201(d)(2) if the 
Secretary, in consultation with the heads of the Federal agencies, 
determines that the funds appropriated for the other activity cannot be 
used for that other activity. This section shall be construed to apply 
to funds appropriated after the date of the enactment of this Act 
unless the Act appropriating the funds specifically and explicitly 
states that this section shall not apply to those funds.
    (c) Use of Unexpended Budget Authority.--The Secretary is 
authorized to utilize all unexpended budget authority under this title 
for any activity authorized under section 201(d)(1) or section 
201(d)(2).
    (d) Report.--Not later than 60 days after the date of the enactment 
of this Act and annual thereafter, the Secretary, in consultation with 
the heads of the Federal agencies, shall transmit to Congress a report 
that describes the following:
            (1) A list of all existing authorities, including the 
        authorities listed in subsection (a), under which the Secretary 
        or the heads of the Federal agencies may carry out the purposes 
        of this Act.
            (2) A list funds authorized in the previous fiscal year for 
        the authorities listed under paragraph (1).
            (3) A list of the projects carried out with the funds 
        listed in paragraph (2) and the amount of funds obligated and 
        expended for each project.

SEC. 207. COMPLIANCE WITH STATE AND FEDERAL LAW.

    Nothing in this Act--
            (1) invalidates of preempts State water law or an 
        interstate compact governing water;
            (2) alters the rights of any State to any appropriated 
        share of the waters of any body of surface or ground water, 
        whether determined by past or future interstate compacts or 
        final judicial allocations;
            (3) preempts or modifies any State or Federal law or 
        interstate compact governing water quality or disposal; or
            (4) confers on any non-federal entity the ability to 
        exercise any Federal right to the waters of any stream or to 
        any ground water resource.

                         TITLE III--SALTON SEA

SEC. 301. FUNDING TO ADDRESS SALTON SEA.

    There is authorized to be appropriated to the Secretary 
$300,000,000 for activities to address issues surrounding the Salton 
Sea.

        TITLE IV--ESTABLISHMENT OF CENTRALIZED REGULATORY OFFICE

SEC. 401. ESTABLISHMENT OF OFFICE.

    The Secretary shall establish an office, in Sacramento California, 
and may establish other offices in the capitol of any Reclamation State 
requesting such an office, for projects within their State, for the use 
of all Federal agencies and State agencies that are likely to be 
involved in issuing permits and conducting environmental reviews for 
water supply, water supply capital improvement projects, levee 
maintenance, and delivery systems in California or any Reclamation 
State requesting such an office.

SEC. 402. ACCEPTANCE AND EXPENDITURE OF CONTRIBUTIONS.

    (a) In General.--The Secretary may accept and expend funds 
contributed by non-Federal public entities to expedite the 
consideration of permits and the conducting of environmental reviews 
for all projects described in section 401 and to offset the Federal 
costs of processing such permits and conducting such reviews. The 
Secretary shall allocate funds received under this section among 
Federal agencies in accordance with the costs such agencies incur in 
processing such permits and conducting such reviews. The allocated 
funds shall be for reimbursements of such costs.
    (b) Protection of Impartial Decisionmaking.--In carrying out this 
section, the Secretary and the heads Federal agencies receiving funds 
under this section shall ensure that the use of the funds accepted 
under this section will not impact impartial decisionmaking with 
respect to the issuance of permits or conducting of environmental 
reviews, either substantively or procedurally, or diminish, modify, or 
otherwise affect the statutory or regulatory authorities of such 
agencies.

                  TITLE V--RURAL WATER SUPPLY PROGRAM

SEC. 501. RURAL WATER SUPPLY PROGRAM.

    (a) In General.--The Secretary is authorized to establish a program 
to plan, design, and construct rural water systems in coordination with 
other Federal agencies with rural water programs, and in cooperation 
with non-Federal project entities.
    (b) Requirements.--Provisions to be included in the establishment 
of a rural water system shall include the following:
            (1) Appraisal investigations.
            (2) Feasibility studies.
            (3) Environmental reports.
            (4) Cost sharing responsibilities.
            (5) Responsibility for operation and maintenance.
            (6) Prohibition for funding for irrigation.
    (c) Criteria.--The Secretary is authorized to develop criteria for 
determining which projects are eligible for participation in the 
program established under this section.
    (d) Reports to Congress.--The Secretary shall submit to Congress 
the program developed under this section.
    (e) Reclamation States.--The program established by this section 
shall be limited to Reclamation States.
                                 <all>
```