IB 

Union Calendar No. 280 

112TH CONGRESS 

2D SESSION H. R. 1837 

[Report No. 112–403] 

To address certain water-related concerns on the San Joaquin River, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 11, 2011 

Mr. NUNES (for himself, Mr. MCCARTHY of California, and Mr. DENHAM) introduced the following bill; which was referred to the Committee on Natural Resources 

FEBRUARY 27, 2012 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on May 11, 2011] 


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A BILL 

To address certain water-related concerns on the San 

Joaquin River, and for other purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sacramento-San Joa5 quin Valley Water Reliability Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—CENTRAL VALLEY PROJECT WATER RELIABILITY 

Sec. 101. Amendment to purposes. 

Sec. 102. Amendment to definition. 

Sec. 103. Contracts. 

Sec. 104. Water transfers, improved water management, and conservation. 

Sec. 105. Fish, wildlife, and habitat restoration. 

Sec. 106. Restoration fund. 

Sec. 107. Additional authorities. 

Sec. 108. Bay-Delta Accord. 

Sec. 109. Natural and artificially spawned species. 

Sec. 110. Authorized service area. 

Sec. 111. Regulatory streamlining. 

TITLE II—SAN JOAQUIN RIVER RESTORATION 

Sec. 201. Repeal of the San Joaquin River settlement. 

Sec. 202. Purpose. 

Sec. 203. Definitions. 

Sec. 204. Implementation of restoration. 

Sec. 205. Disposal of property; title to facilities. 

Sec. 206. Compliance with applicable law. 

Sec. 207. Compliance with Central Valley Project Improvement Act. 

Sec. 208. No private right of action. 

Sec. 209. Implementation. 

Sec. 210. Repayment contracts and acceleration of repayment of construction 

costs. 

Sec. 211. Repeal. 

Sec. 212. Water supply mitigation. 

Sec. 213. Additional Authorities. 

TITLE III—REPAYMENT CONTRACTS AND ACCELERATION OF 

REPAYMENT OF CONSTRUCTION COSTS 

Sec. 301. Repayment contracts and acceleration of repayment of construction 

costs. 

TITLE IV—BAY-DELTA WATERSHED WATER RIGHTS PRESERVATION 

AND PROTECTION 

Sec. 401. Water rights and area-of-origin protections. 


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Sec. 402. Sacramento River settlement contracts. 

Sec. 403. Sacramento River Watershed Water Service Contractors. 

Sec. 404. No redirected adverse impacts. 

TITLE V—MISCELLANOUS 

Sec. 501. Precedent. 

1 TITLE I—CENTRAL VALLEY 

2 PROJECT WATER RELIABILITY 

3 SEC. 101. AMENDMENT TO PURPOSES. 

4 Section 3402 of the Central Valley Project Improve5 ment Act (106 Stat. 4706) is amended— 

6 (1) in subsection (f), by striking the period at the 

7 end; and 

8 (2) by adding at the end the following: 

9 ‘‘(g) to ensure that water dedicated to fish and wildlife 

10 purposes by this title is replaced and provided to Central 

11 Valley Project water contractors by December 31, 2016, at 

12 the lowest cost reasonably achievable; and 

13 ‘‘(h) to facilitate and expedite water transfers in ac14 cordance with this Act.’’. 

15 SEC. 102. AMENDMENT TO DEFINITION. 

16 Section 3403 of the Central Valley Project Improve17 ment Act (106 Stat. 4707) is amended— 

18 (1) by amending subsection (a) to read as fol19 lows: 

20 ‘‘(a) the term ‘anadromous fish’ means those native 

21 stocks of salmon (including steelhead) and sturgeon that, 

22 as of October 30, 1992, were present in the Sacramento and 


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1 San Joaquin Rivers and their tributaries and ascend those 

2 rivers and their tributaries to reproduce after maturing in 

3 San Francisco Bay or the Pacific Ocean;’’; 

4 (2) in subsection (l), by striking ‘‘and,’’ 

5 (3) in subsection (m), by striking the period and 

6 inserting ‘‘; and’’, and 

7 (4) by adding at the end the following: 

8 ‘‘(n) the term ‘reasonable flows’ means water flows ca9 pable of being maintained taking into account competing 

10 consumptive uses of water and economic, environmental, 

11 and social factors.’’. 

12 SEC. 103. CONTRACTS. 

13 Section 3404 of the Central Valley Project Improve14 ment Act (106 Stat. 4708) is amended— 

15 (1) in the heading, by striking ‘‘LIMITATION

16 ON CONTRACTING AND CONTRACTS REFORM’’ 

17 and inserting ‘‘CONTRACTS’’; and 

18 (2) by striking the language of the section and 

19 by adding: 

20 ‘‘(a) RENEWAL OF EXISTING LONG-TERM CON21 TRACTS.—Upon request of the contractor, the Secretary 

22 shall renew any existing long-term repayment or water 

23 service contract that provides for the delivery of water from 

24 the Central Valley Project for a period of 40 years, and 

25 renew such contracts for successive periods of 40 years each. 


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1 ‘‘(b) DELIVERY CHARGE.—Beginning on the date of 

2 the enactment of this Act, a contract entered into or renewed 

3 pursuant to this section shall include a provision that re4 quires the Secretary to charge the other party to such con5 tract only for water actually delivered by the Secretary.’’. 

6 SEC. 104. WATER TRANSFERS, IMPROVED WATER MANAGE7 MENT, AND CONSERVATION. 

8 Section 3405 of the Central Valley Project Improve9 ment Act (106 Stat. 4709) is amended as follows: 

10 (1) In subsection (a)— 

11 (A) by inserting before ‘‘Except as provided 

12 herein’’ the following: ‘‘The Secretary shall take 

13 all necessary actions to facilitate and expedite 

14 transfers of Central Valley Project water in ac15 cordance with this Act or any other provision of 

16 Federal reclamation law and the National Envi17 ronmental Policy Act of 1969.’’; 

18 (B) in paragraph (1)(A), by striking ‘‘to 

19 combination’’ and inserting ‘‘or combination’’; 

20 (C) in paragraph (2), by adding at the end 

21 the following: 

22 ‘‘(E) The contracting district from which 

23 the water is coming, the agency, or the Secretary 

24 shall determine if a written transfer proposal is 

25 complete within 45 days after the date of submisVerDate Mar 15 2010 21:58 Feb 27, 2012 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H1837.RH H1837

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1 sion of such proposal. If such district or agency 

2 or the Secretary determines that such proposal is 

3 incomplete, such district or agency or the Sec4 retary shall state with specificity what must be 

5 added to or revised in order for such proposal to 

6 be complete. 

7 ‘‘(F) Except as provided in this section, the 

8 Secretary shall not impose mitigation or other 

9 requirements on a proposed transfer, but the con10 tracting district from which the water is coming 

11 or the agency shall retain all authority under 

12 State law to approve or condition a proposed 

13 transfer.’’; and 

14 (D) by adding at the end the following: 

15 ‘‘(4) Notwithstanding any other provision of 

16 Federal reclamation law— 

17 ‘‘(A) the authority to make transfers or ex18 changes of, or banking or recharge arrangements 

19 using, Central Valley Project water that could 

20 have been conducted before October 30, 1992, is 

21 valid, and such transfers, exchanges, or arrange22 ments shall not be subject to, limited, or condi23 tioned by this title; and 

24 ‘‘(B) this title shall not supersede or revoke 

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1 charge Central Valley Project water that existed 

2 prior to October 30, 1992.’’. 

3 (2) In subsection (b)— 

4 (A) in the heading, by striking ‘‘METER5 ING’’ and inserting ‘‘MEASUREMENT’’; and 

6 (B) by inserting after the first sentence the 

7 following: ‘‘The contracting district or agency, 

8 not including contracting districts serving mul9 tiple agencies with separate governing boards, 

10 shall ensure that all contractor-owned water de11 livery systems within its boundaries measure 

12 surface water at the district or agency’s facilities 

13 up to the point the surface water is commingled 

14 with other water supplies.’’. 

15 (3) By striking subsection (d). 

16 (4) By redesignating subsections (e) and (f) as 

17 subsections (d) and (e), respectively. 

18 (5) By amending subsection (e)(as redesignated 

19 by paragraph (4))— 

20 (A) by striking ‘‘as a result of the increased 

21 repayment’’ and inserting ‘‘that exceed the cost22 of-service’’; 

23 (B) by inserting ‘‘the delivery of’’ after 

24 ‘‘rates applicable to’’; and 


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1 (C) by striking ‘‘, and all increased reve2 nues received by the Secretary as a result of the 

3 increased water prices established under sub4 section 3405(d) of this section,’’. 

5 SEC. 105. FISH, WILDLIFE, AND HABITAT RESTORATION. 

6 Section 3406 of the Central Valley Project Improve7 ment Act (106 Stat. 4714) is amended as follows: 

8 (1) In subsection (b)— 

9 (A) in paragraph (1)(B)— 

10 (i) by striking ‘‘is authorized and di11 rected to’’ and inserting ‘‘may’’; 

12 (ii) by inserting ‘‘reasonable water’’ 

13 after ‘‘to provide’’; 

14 (iii) by striking ‘‘anadromous fish, ex15 cept that such’’ and inserting ‘‘anadromous 

16 fish. Such’’; 

17 (iv) by striking ‘‘Instream flow’’ and 

18 inserting ‘‘Reasonable instream flow’’; 

19 (v) by inserting ‘‘and the National Ma20 rine Fisheries Service’’ after ‘‘United States 

21 Fish and Wildlife Service’’; and 

22 (vi) by striking ‘‘California Depart23 ment of Fish and Game’’ and inserting 

24 ‘‘United States Geological Survey’’; 

25 (B) in paragraph (2)— 


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1 (i) by striking ‘‘primary purpose’’ and 

2 inserting ‘‘purposes’’; 

3 (ii) by striking ‘‘but not limited to’’ be4 fore ‘‘additional obligations’’; and 

5 (iii) by adding after the period the fol6 lowing: ‘‘All Central Valley Project water 

7 used for the purposes specified in this para8 graph shall be credited to the quantity of 

9 Central Valley Project yield dedicated and 

10 managed under this paragraph by deter11 mining how the dedication and manage12 ment of such water would affect the delivery 

13 capability of the Central Valley Project dur14 ing the 1928 to 1934 drought period after 

15 fishery, water quality, and other flow and 

16 operational requirements imposed by terms 

17 and conditions existing in licenses, permits, 

18 and other agreements pertaining to the Cen19 tral Valley Project under applicable State 

20 or Federal law existing on October 30, 

21 1992, have been met. To the fullest extent 

22 possible and in accordance with section 

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1 retary’s remaining contractual obligations 

2 to provide Central Valley Project water for 

3 agricultural or municipal and industrial 

4 purposes.’’; 

5 (C) by amending paragraph (2)(C) to read: 

6 ‘‘(C) If by March 15th of any year the 

7 quantity of Central Valley Project water fore8 casted to be made available to water service or 

9 repayment contractors in the Delta Division of 

10 the Central Valley Project is below 75 percent of 

11 the total quantity of water to be made available 

12 under said contracts, the quantity of Central 

13 Valley Project yield dedicated and managed for 

14 that year under this paragraph shall be reduced 

15 by 25 percent.’’. 

16 (2) By adding at the end the following: 

17 ‘‘(i) SATISFACTION OF PURPOSES.—By 

18 pursuing the activities described in this sec19 tion, the Secretary shall be deemed to have 

20 met the mitigation, protection, restoration, 

21 and enhancement purposes of this title.’’. 

22 SEC. 106. RESTORATION FUND. 

23 (a) IN GENERAL.—Section 3407(a) of the Central Val24 ley Project Improvement Act (106 Stat. 4726) is amended 

25 as follows: 


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1 (1) By inserting ‘‘(1) IN GENERAL.—’’ before 

2 ‘‘There is hereby’’. 

3 (2) By striking ‘‘Not less than 67 percent’’ and 

4 all that follows through ‘‘Monies’’ and inserting 

5 ‘‘Monies’’. 

6 (3) By adding at the end the following: 

7 ‘‘(2) PROHIBITIONS.—The Secretary may not directly 

8 or indirectly require a donation or other payment to the 

9 Restoration Fund— 

10 ‘‘(A) or environmental restoration or mitigation 

11 fees not otherwise provided by law, as a condition 

12 to— 

13 ‘‘(i) providing for the storage or conveyance 

14 of non-Central Valley Project water pursuant to 

15 Federal reclamation laws; or 

16 ‘‘(ii) the delivery of water pursuant to sec17 tion 215 of the Reclamation Reform Act of 1982 

18 (Public Law 97–293; 96 Stat. 1270); or 

19 ‘‘(B) for any water that is delivered with the sole 

20 intent of groundwater recharge.’’. 

21 (b) CERTAIN PAYMENTS.—Section 3407(c)(1) of the 

22 Central Valley Project Improvement Act is amended— 

23 (1) by striking ‘‘mitigation and restoration’’; 

24 (2) by striking ‘‘provided for or’’; and 


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1 (3) by striking ‘‘of fish, wildlife’’ and all that fol2 lows through the period and inserting ‘‘of carrying 

3 out all activities described in this title.’’. 

4 (c) ADJUSTMENT AND ASSESSMENT OF MITIGATION

5 AND RESTORATION PAYMENTS.—Section 3407(d)(2) of the 

6 Central Valley Project Improvement Act is amended by in7 serting ‘‘, or after October 1, 2013, $4 per megawatt-hour 

8 for Central Valley Project power sold to power contractors 

9 (October 2013 price levels)’’ after ‘‘$12.00 per acre-foot (Oc10 tober 1992 price levels) for municipal and industrial water 

11 sold and delivered by the Central Valley Project’’. 

12 (d) COMPLETION OF ACTIONS.—Section 3407(d)(2)(A) 

13 of the Central Valley Project Improvement Act is amended 

14 by inserting ‘‘, no later than December 31, 2020,’’ after 

15 ‘‘That upon the completion of the fish, wildlife, and habitat 

16 mitigation and restoration actions mandated under section 

17 3406 of this title,’’. 

18 (e) REPORT; ADVISORY BOARD.—Section 3407 of the 

19 Central Valley Project Improvement Act (106 Stat. 4714) 

20 is amended by adding at the end the following: 

21 ‘‘(g) REPORT ON EXPENDITURE OF FUNDS.—At the 

22 end of each fiscal year, the Secretary, in consultation with 

23 the Restoration Fund Advisory Board, shall submit to Con24 gress a plan for the expenditure of all of the funds deposited 

25 into the Restoration Fund during the preceding fiscal year. 


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1 Such plan shall contain a cost-effectiveness analysis of each 

2 expenditure. 

3 ‘‘(h) ADVISORY BOARD.— 

4 ‘‘(1) ESTABLISHMENT.—There is hereby estab5 lished the Restoration Fund Advisory Board (herein6 after in this section referred to as the ‘Advisory 

7 Board’) composed of 12 members selected by the Sec8 retary, each for four-year terms, one of whom shall be 

9 designated by the Secretary as Chairman. The mem10 bers shall be selected so as to represent the various 

11 Central Valley Project stakeholders, four of whom 

12 shall be from CVP agricultural users, three from CVP 

13 municipal and industrial users, three from CVP 

14 power contractors, and two at the discretion of the 

15 Secretary. The Secretary and the Secretary of Com16 merce may each designate a representative to act as 

17 an observer of the Advisory Board. 

18 ‘‘(2) DUTIES.—The duties of the Advisory Board 

19 are as follows: 

20 ‘‘(A) To meet at least semiannually to de21 velop and make recommendations to the Sec22 retary regarding priorities and spending levels 

23 on projects and programs carried out pursuant 

24 to the Central Valley Project Improvement Act. 


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1 ‘‘(B) To ensure that any advice or rec2 ommendation made by the Advisory Board to the 

3 Secretary reflect the independent judgment of the 

4 Advisory Board. 

5 ‘‘(C) Not later than December 31, 2013, and 

6 annually thereafter, to transmit to the Secretary 

7 and Congress recommendations required under 

8 subparagraph (A). 

9 ‘‘(D) Not later than December 31, 2013, and 

10 biennially thereafter, to transmit to Congress a 

11 report that details the progress made in achiev12 ing the actions mandated under section 3406 of 

13 this title. 

14 ‘‘(3) ADMINISTRATION.—With the consent of the 

15 appropriate agency head, the Advisory Board may 

16 use the facilities and services of any Federal agency.’’. 

17 SEC. 107. ADDITIONAL AUTHORITIES. 

18 (a) AUTHORITY FOR CERTAIN ACTIVITIES.—Section 

19 3408(c) of the Central Valley Project Improvement Act (106 

20 Stat. 4728) is amended to read as follows: 

21 ‘‘(c) CONTRACTS FOR ADDITIONAL STORAGE AND DE22 LIVERY OF WATER.— 

23 ‘‘(1) IN GENERAL.—The Secretary is authorized 

24 to enter into contracts pursuant to Federal reclama25 tion law and this title with any Federal agency, CaliVerDate Mar 15 2010 21:58 Feb 27, 2012 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6203 E:\BILLS\H1837.RH H1837

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1 fornia water user or water agency, State agency, or 

2 private organization for the exchange, impoundment, 

3 storage, carriage, and delivery of nonproject water for 

4 domestic, municipal, industrial, fish and wildlife, 

5 and any other beneficial purpose. 

6 ‘‘(2) LIMITATION.—Nothing in this subsection 

7 shall be deemed to supersede the provisions of section 

8 103 of Public Law 99–546 (100 Stat. 3051). 

9 ‘‘(3) AUTHORITY FOR CERTAIN ACTIVITIES.—The 

10 Secretary shall use the authority granted by this sub11 section in connection with requests to exchange, im12 pound, store, carry, or deliver nonproject water using 

13 Central Valley Project facilities for any beneficial 

14 purpose. 

15 ‘‘(4) RATES.—The Secretary shall develop rates 

16 not to exceed the amount required to recover the rea17 sonable costs incurred by the Secretary in connection 

18 with a beneficial purpose under this subsection. Such 

19 rates shall be charged to a party using Central Valley 

20 Project facilities for such purpose. Such costs shall not 

21 include any donation or other payment to the Res22 toration Fund. 

23 ‘‘(5) CONSTRUCTION.—This subsection shall be 

24 construed and implemented to facilitate and encour25 age the use of Central Valley Project facilities to exVerDate Mar 15 2010 21:58 Feb 27, 2012 Jkt 019200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6203 E:\BILLS\H1837.RH H1837

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1 change, impound, store, carry, or deliver nonproject 

2 water for any beneficial purpose.’’. 

3 (b) REPORTING REQUIREMENTS.—Section 3408(f) of 

4 the Central Valley Project Improvement Act (106 Stat. 

5 4729) is amended— 

6 (1) by striking ‘‘Interior and Insular Affairs and 

7 the Committee on Merchant Marine and Fisheries’’ 

8 and inserting ‘‘Natural Resources’’; 

9 (2) in the second sentence, by inserting before the 

10 period at the end the following: ‘‘, including progress 

11 on the plan required by subsection (j)’’; and 

12 (3) by adding at the end the following: ‘‘The fil13 ing and adequacy of such report shall be personally 

14 certified to the Committees referenced above by the 

15 Regional Director of the Mid-Pacific Region of the 

16 Bureau of Reclamation.’’. 

17 (c) PROJECT YIELD INCREASE.—Section 3408(j) of the 

18 Central Valley Project Improvement Act (106 Stat. 4730) 

19 is amended as follows: 

20 (1) By redesignating paragraphs (1) through (7) 

21 as subparagraphs (A) through (G), respectively. 

22 (2) By striking ‘‘In order to minimize adverse 

23 effects, if any, upon’’ and inserting ‘‘(1) IN GEN24 ERAL.—In order to minimize adverse effects upon’’. 


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1 (3) By striking ‘‘needs, the Secretary,’’ and all 

2 that follows through ‘‘submit to Congress, a’’ and in3 serting ‘‘needs, the Secretary, on a priority basis and 

4 not later than September 30, 2013, shall submit to 

5 Congress a’’. 

6 (4) By striking ‘‘increase,’’ and all that follows 

7 through ‘‘options—’’ and inserting ‘‘increase, as soon 

8 as possible but not later than September 30, 2016 (ex9 cept for the construction of new facilities which shall 

10 not be limited by that deadline), the water of the Cen11 tral Valley Project by the amount dedicated and man12 aged for fish and wildlife purposes under this title 

13 and otherwise required to meet the purposes of the 

14 Central Valley Project including satisfying contrac15 tual obligations. The plan required by this subsection 

16 shall include recommendations on appropriate cost17 sharing arrangements and authorizing legislation or 

18 other measures needed to implement the intent, pur19 poses, and provisions of this subsection and a descrip20 tion of how the Secretary intends to use the following 

21 options—’’. 

22 (5) In subparagraph (A), by inserting ‘‘and con23 struction of new water storage facilities’’ before the 

24 semicolon. 


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1 (6) In subparagraph (F), by striking ‘‘and’’ at 

2 the end. 

3 (7) In subparagraph (G), by striking the period 

4 and all that follows through the end of the subsection 

5 and inserting ‘‘; and’’. 

6 (8) By inserting after subparagraph (G) the fol7 lowing: 

8 ‘‘(H) Water banking and recharge.’’. 

9 (9) By adding at the end the following: 

10 ‘‘(2) IMPLEMENTATION OF PLAN.—The Secretary 

11 shall implement the plan required by paragraph (1) 

12 commencing on October 1, 2013. In order to carry out 

13 this subsection, the Secretary shall coordinate with 

14 the State of California in implementing measures for 

15 the long-term resolution of problems in the San Fran16 cisco Bay/Sacramento-San Joaquin Delta Estuary. 

17 ‘‘(3) FAILURE OF THE PLAN.—Notwithstanding 

18 any other provision of Federal reclamation law, if by 

19 September 30, 2016, the plan required by paragraph 

20 (1) fails to increase the annual delivery capability of 

21 the Central Valley Project by 800,000 acre-feet, imple22 mentation of any non-mandatory action under sec23 tion 3406(b)(2) shall be suspended until the plan 

24 achieves an increase in the annual delivery capability 

25 of the Central Valley Project by 800,000 acre-feet.’’. 


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1 (d) TECHNICAL CORRECTION.—Section 3408(h) of the 

2 Central Valley Project Improvement Act (106 Stat. 4729) 

3 is amended— 

4 (1) in paragraph (1), by striking ‘‘paragraph 

5 (h)(2)’’ and inserting ‘‘paragraph (2)’’; and 

6 (2) in paragraph (2), by striking ‘‘paragraph 

7 (h)(i)’’ and inserting ‘‘paragraph (1)’’. 

8 (e) WATER STORAGE PROJECT CONSTRUCTION.—The 

9 Secretary, acting through the Commissioner of the Bureau 

10 of Reclamation, may partner on the water storage projects 

11 identified in section 103(d)(1) of the Water Supply Reli12 ability, and Environmental Improvement Act (Public Law 

13 108–361)(and Acts supplemental and amendatory to the 

14 Act) with local joint powers authorities formed pursuant 

15 to State law by irrigation districts and other local water 

16 districts and local governments within the applicable hy17 drologic region, to advance these projects. No Federal funds 

18 are authorized for this purpose and each water storage 

19 project is authorized for construction if non-Federal funds 

20 are used for financing and constructing the project. 

21 SEC. 108. BAY-DELTA ACCORD. 

22 (a) CONGRESSIONAL DIRECTION REGARDING CENTRAL

23 VALLEY PROJECT AND CALIFORNIA STATE WATER

24 PROJECT OPERATIONS.—The Central Valley Project and 

25 the State Water Project shall be operated pursuant to the 


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1 water quality standards and operational constraints de2 scribed in the ‘‘Principles for Agreement on the Bay-Delta 

3 Standards Between the State of California and the Federal 

4 Government’’ dated December 15, 1994, and such oper5 ations shall proceed without regard to the Endangered Spe6 cies Act of 1973 (16 U.S.C. 1531 et seq.) or any other law 

7 pertaining to the operation of the Central Valley Project 

8 and the California State Water Project. Implementation of 

9 this section shall be in strict conformance with the ‘‘Prin10 ciples for Agreement on the Bay-Delta Standards Between 

11 the State of California and the Federal Government’’ dated 

12 December 15, 1994. 

13 (b) APPLICATION OF LAWS TO OTHERS.—Neither a 

14 Federal department nor the State of California, including 

15 any agency or board of the State of California, shall impose 

16 on any valid water right obtained pursuant to State law, 

17 including a pre-1914 appropriative right, any condition 

18 that restricts the exercise of that water right in order to 

19 conserve, enhance, recover or otherwise protect any species 

20 that is affected by operations of the Central Valley Project 

21 or California State Water Project. Nor shall the State of 

22 California, including any agency or board of the State of 

23 California, restrict the exercise of any valid water right ob24 tained pursuant to State law, including a pre-1914 appro25 priative right, in order to protect, enhance, or restore under 


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1 the Public Trust Doctrine any public trust value. Imple2 mentation of the ‘‘Principles for Agreement on the Bay3 Delta Standards Between the State of California and the 

4 Federal Government’’ dated December 15, 1994, shall be in 

5 strict compliance with the water rights priority system and 

6 statutory protections for areas of origin. 

7 (c) COSTS.—No cost associated with the implementa8 tion of this section shall be imposed directly or indirectly 

9 on any Central Valley Project contractor, or any other per10 son or entity, unless such costs are incurred on a voluntary 

11 basis. 

12 (d) NATIVE SPECIES PROTECTION.—California law is 

13 preempted with respect to any restriction on the quantity 

14 or size of nonnative fish taken or harvested that preys upon 

15 one or more native fish species that occupy the Sacramento 

16 and San Joaquin Rivers and their tributaries or the Sac17 ramento-San Joaquin Rivers Delta. 

18 SEC. 109. NATURAL AND ARTIFICIALLY SPAWNED SPECIES. 

19 After the date of the enactment of this title, and regard20 less of the date of listing, the Secretaries of the Interior and 

21 Commerce shall not distinguish between natural-spawned 

22 and hatchery-spawned or otherwise artificially propagated 

23 strains of a species in making any determination under the 

24 Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 

25 that relates to any anadromous fish species present in the 


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1 Sacramento and San Joaquin Rivers or their tributaries 

2 and ascend those rivers and their tributaries to reproduce 

3 after maturing in San Francisco Bay or the Pacific Ocean. 

4 SEC. 110. AUTHORIZED SERVICE AREA. 

5 The authorized service area of the Central Valley 

6 Project shall include the area within the boundaries of the 

7 Kettleman City Community Services District, California, 

8 as those boundaries exist on the date of the enactment of 

9 this title. Notwithstanding the provisions of the Act of Octo10 ber 30, 1992 (Public Law 102–575, 106 Stat. 4600 et seq.), 

11 upon enactment of this title, the Secretary is authorized and 

12 directed to enter into a long-term contract in accordance 

13 with the reclamation laws with the Kettleman City Commu14 nity Services District, California, for the delivery of up to 

15 900 acre-feet of Central Valley Project water for municipal 

16 and industrial use. The Secretary may temporarily reduce 

17 deliveries of the quantity of water made available pursuant 

18 to up to 25 percent of such total whenever reductions due 

19 to hydrologic circumstances are imposed upon agricultural 

20 deliveries of Central Valley Project water. If any additional 

21 infrastructure or related-costs are needed to implement this 

22 section, such costs shall be the responsibility of the non-Fed23 eral entity. 


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1 SEC. 111. REGULATORY STREAMLINING. 

2 (a) APPLICABILITY OF CERTAIN LAWS.—Filing of a 

3 Notice of Determination or a Notice of Exemption for any 

4 project, including the issuance of a permit under State law, 

5 related to any project of the CVP or the delivery of water 

6 therefrom in accordance with the California Environmental 

7 Quality Act shall be deemed to meet the requirements of 

8 section 102(2)(C) of the National Environmental Protection 

9 Act of 1969 (42 U.S.C. 4332(2)(C)) for that project or per10 mit. 

11 (b) CONTINUATION OF PROJECT.—The Bureau of Rec12 lamation shall not be required to cease or modify any major 

13 Federal action or other activity related to any project of 

14 the CVP or the delivery of water there from pending comple15 tion of judicial review of any determination made under 

16 the National Environmental Protection Act of 1969 (42 

17 U.S.C. 4332(2)(C)). 

18 (c) PROJECT DEFINED.—For the purposes of this sec19 tion: 

20 (1) CVP.—The term ‘‘CVP’’ means the Central 

21 Valley Project. 

22 (2) PROJECT.—The term ‘‘project’’— 

23 (A) means an activity that— 

24 (i) is undertaken by a public agency, 

25 funded by a public agency, or that requires 

26 an issuance of a permit by a public agency; 


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1 (ii) has a potential to result in phys2 ical change to the environment; and 

3 (iii) may be subject to several discre4 tionary approvals by governmental agen5 cies; 

6 (B) may include construction activities, 

7 clearing or grading of land, improvements to ex8 isting structures, and activities or equipment in9 volving the issuance of a permit; or 

10 (C) as defined under the California Envi11 ronmental Quality Act in section 21065 of the 

12 California Public Resource Code. 

13 TITLE II—SAN JOAQUIN RIVER 

14 RESTORATION 

15 SEC. 201. REPEAL OF THE SAN JOAQUIN RIVER SETTLE16 MENT. 

17 As of the date of enactment of this title, the Secretary 

18 shall cease any action to implement the Stipulation of Set19 tlement (Natural Resources Defense Council, et al. v. Kirk 

20 Rodgers, et al., Eastern District of California, No. Civ. S– 

21 88–1658 LKK/GGH). 

22 SEC. 202. PURPOSE. 

23 Section 10002 of the San Joaquin River Restoration 

24 Settlement Act (Public Law 111–11) is amended by striking 


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1 ‘‘implementation of the Settlement’’ and inserting ‘‘restora2 tion of the San Joaquin River’’. 

3 SEC. 203. DEFINITIONS. 

4 Section 10003 of the San Joaquin River Restoration 

5 Settlement Act (Public Law 111–11) is amended— 

6 (1) by striking paragraph (1) and inserting the 

7 following: 

8 ‘‘(1) The term ‘Restoration Flows’ means the ad9 ditional water released or bypassed from Friant Dam 

10 to insure that the target flow entering Mendota Pool, 

11 located approximately 62 river miles downstream 

12 from Friant Dam, does not fall below 50 cubic feet 

13 per second.’’; 

14 (2) by striking paragraph (3) and inserting the 

15 following: 

16 ‘‘(3) The term ‘Water Year’ means March 1 

17 through the last day of February of the following Cal18 endar Year, both dates inclusive’’; and 

19 (3) by adding at the end the following new para20 graph: 

21 ‘‘(4) The term ‘Critical Water Year’ means when 

22 the total unimpaired runoff at Friant Dam is less 

23 than 400,000 acre-feet, as forecasted as of March 1 of 

24 that water year by the California Department of 

25 Water Resources.’’. 


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1 SEC. 204. IMPLEMENTATION OF RESTORATION. 

2 Section 10004 of the San Joaquin River Restoration 

3 Settlement Act (Public Law 111–11) is amended— 

4 (1) in subsection (a)— 

5 (A) in the matter preceding paragraph (1), 

6 by striking ‘‘authorized and directed’’ and all 

7 that follows through ‘‘in the Settlement’’ and in8 serting ‘‘authorized to carry out the following:’’; 

9 (B) by striking paragraphs (1), (2), (4), 

10 and (5); 

11 (C) in paragraph (3)— 

12 (i) by striking ‘‘(3)’’ and inserting 

13 ‘‘(1)’’; and 

14 (ii) by striking ‘‘paragraph 13 of the 

15 Settlement’’ and inserting ‘‘this part’’ 

16 (D) by adding at the end the following new 

17 paragraphs: 

18 ‘‘(2) In each Water Year, commencing in the 

19 Water Year starting on March 1, 2013— 

20 ‘‘(A) shall modify Friant Dam operations 

21 so as to release the Restoration Flows for that 

22 Water Year, except in any Critical Water Year; 

23 ‘‘(B) shall ensure that the release of Res24 toration Flows are maintained at the level pre25 scribed by this part, but that Restoration Flows 

26 do not reach downstream of Mendota Pool; 


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1 ‘‘(C) shall release the Restoration Flows in 

2 a manner that improves the fishery in the San 

3 Joaquin River below Friant Dam, but upstream 

4 of Gravelly Ford in existence as of the date of the 

5 enactment of this part, and the associated ripar6 ian habitat; and 

7 ‘‘(D) may, without limiting the actions re8 quired under paragraphs (A) and (C) and sub9 ject to subsections 10004(a)(3) and 10004(l), use 

10 the Restoration Flows to enhance or restore a 

11 warm water fishery downstream of Gravelly 

12 Ford to and including Mendota Pool, if the Sec13 retary determines that it is reasonable, prudent, 

14 and feasible to do so; and 

15 ‘‘(3) Not later than 1 year after the date of the 

16 enactment of this section, the Secretary shall develop 

17 and implement, in cooperation with the State of Cali18 fornia, a reasonable plan, to fully recirculate, recap19 ture, reuse, exchange, or transfer all Restoration 

20 Flows and provide such recirculated, recaptured, re21 used, exchanged, or transferred flows to those contrac22 tors within the Friant Division, Hidden Unit, and 

23 Buchanan Unit of the Central Valley Project that re24 linquished the Restoration Flows so recirculated, re25 captured, reused, exchanged, or transferred. Such a 


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1 plan shall address any impact on ground water re2 sources within the service area of the Friant Division, 

3 Hidden Unit, and Buchanan Unit of the Central Val4 ley Project and mitigation may include ground water 

5 banking and recharge projects. Such a plan shall not 

6 impact the water supply or water rights of any entity 

7 outside the Friant Division, Hidden unit, and 

8 Buchanan Unit of the Central Valley Project. Such a 

9 plan shall be subject to applicable provisions of Cali10 fornia water law and the Secretary’s use of Central 

11 Valley Project facilities to make Project water (other 

12 than water released from Friant Dam pursuant to 

13 this part) and water acquired through transfers avail14 able to existing south-of-Delta Central Valley Project 

15 contractors.’’; 

16 (2) in subsection (b)— 

17 (A) in paragraph (1), by striking ‘‘the Set18 tlement’’ and inserting ‘‘this part’’; 

19 (B) in paragraph (2), by striking ‘‘the Set20 tlement’’ and inserting ‘‘this part’’; 

21 (3) in subsection (c), by striking ‘‘the Settle22 ment’’ and inserting ‘‘this part’’; 

23 (4) by striking subsection (d) and inserting the 

24 following: 


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1 ‘‘(d) MITIGATION OF IMPACTS.—Prior to October 1, 

2 2013, the Secretary shall identify— 

3 ‘‘(1) the impacts associated with the release of 

4 Restoration Flows prescribed in this part; 

5 ‘‘(2) the measures which shall be implemented to 

6 mitigate impacts on adjacent and downstream water 

7 users, landowners and agencies as a result of Restora8 tion Flows prescribed in this part; and 

9 ‘‘(3) prior to the implementation of decisions or 

10 agreements to construct, improve, operate, or main11 tain facilities that the Secretary determines are need12 ed to implement this part, the Secretary shall imple13 ment all mitigations measures identified in subsection 

14 (d)(2) before Restoration Flows are commenced.’’; 

15 (5) in subsection (e), by striking ‘‘the Settle16 ment’’ and inserting ‘‘this part’’; 

17 (6) in subsection (f), by striking ‘‘the Settle18 ment’’ and all that follows through ‘‘section 10011’’ 

19 and insert ‘‘this part’’; 

20 (7) in subsection (g)— 

21 (A) by striking ‘‘the Settlement and’’ before 

22 this part; and 

23 (B) by striking ‘‘or exchange contract’’ and 

24 inserting ‘‘exchange contract, or water rights set25 tlement or holding contracts’’; 


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1 (8) in subsection (h)— 

2 (A) by striking ‘‘INTERIM’’ in the header; 

3 (B) in paragraph (1)— 

4 (i) in the matter preceding subpara5 graph (A), by striking ‘‘Interim Flows 

6 under the Settlement’’ and inserting ‘‘Res7 toration Flows under this part’’; 

8 (ii) in subparagraph (C)— 

9 (I) in clause (i), by striking ‘‘In10 terim’’ and inserting ‘‘Restoration’’; 

11 and 

12 (II) in clause (ii), by inserting 

13 ‘‘and’’ after the semicolon; 

14 (iii) in subparagraph (D), by striking 

15 ‘‘and’’ at the end; and 

16 (iv) by striking subparagraph (E); 

17 (C) in paragraph (2)— 

18 (i) by striking ‘‘Interim’’ and inserting 

19 ‘‘Restoration’’; 

20 (ii) by striking subparagraph (A); and 

21 (iii) by striking ‘‘(B) exceed’’ and in22 serting ‘‘exceed’’; 

23 (D) in paragraph (3), by striking ‘‘In24 terim’’ and inserting ‘‘Restoration’’; and 


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1 (E) by striking paragraph (4) and inserting 

2 the following: 

3 ‘‘(4) CLAIMS.—Within 60 days of enactment of 

4 this Act the Secretary shall promulgate a rule estab5 lishing a claims process to address current and future 

6 claims including, but not limited to, ground water 

7 seepage, flooding, or levee instability damages caused 

8 as a result of, arising out of, or related to implemen9 tation of subtitle A of title X of Public Law 111–11.’’; 

10 (9) in subsection (i)— 

11 (A) in paragraph (1)— 

12 (i) in the matter preceding subpara13 graph (A), by striking ‘‘the Settlement and 

14 parts I and III’’ and inserting ‘‘this part’’; 

15 (ii) in subparagraph (A), by inserting 

16 ‘‘and’’ after the semicolon; 

17 (iii) in subparagraph (B)— 

18 (I) by striking ‘‘additional 

19 amounts authorized to be appro20 priated, including the’’; 

21 (II) by striking ‘‘; and’’ and in22 serting a period; and 

23 (iv) by striking subparagraph (C); and 

24 (B) by striking paragraph (3); and 


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1 (10) by adding at the end the following new sub2 sections: 

3 ‘‘(k) NO IMPACTS ON OTHER INTERESTS.—No Central 

4 Valley Project or other water other than San Joaquin River 

5 water impounded by or bypassed from Friant Dam shall 

6 be used to implement subsection (a)(2) unless such use is 

7 on a voluntary basis. No cost associated with the implemen8 tation of this section shall be imposed directly or indirectly 

9 on any Central Valley Project contractor, or any other per10 son or entity, outside the Friant Division, the Hidden Unit, 

11 or the Buchanan Unit, unless such costs are incurred on 

12 a voluntary basis. The implementation of this part shall 

13 not result directly or indirectly in any reduction in water 

14 supplies or water reliability on any Central Valley Project 

15 contractor, any State Water Project contractor, or any other 

16 person or entity, outside the Friant Division, the Hidden 

17 Unit, or the Buchanan Unit, unless such reductions or costs 

18 are incurred on a voluntary basis. 

19 ‘‘(l) PRIORITY.—All actions taken under this part 

20 shall be subordinate to the Secretary’s use of Central Valley 

21 Project facilities to make Project water available to Project 

22 contractors, other than water released from the Friant Dam 

23 pursuant to this part. 

24 ‘‘(m) IN GENERAL.—Notwithstanding section 8 of the 

25 Reclamation Act of 1902, except as provided in this part, 


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1 including Title IV of the Sacramento and San Joaquin Val2 leys Water Reliability Act, this part preempts and super3 sedes any State law, regulation, or requirement that im4 poses more restrictive requirements or regulations on the ac5 tivities authorized under this part. Nothing in this part 

6 shall alter or modify the obligations, if any, of the Friant 

7 Division, Hidden Unit, and Buchanan Unit of the Central 

8 Valley Project, or other water users on the San Joaquin 

9 River or its tributaries, under orders issued by the State 

10 Water Resources Control Board pursuant to the Porter-Co11 logne Water Quality Control Act (California Water Code 

12 sections 13000 et seq.). Any such order shall be consistent 

13 with the congressional authorization for any affected Fed14 eral facility as it pertains to the Central Valley Project. 

15 ‘‘(n) PROJECT IMPLEMENTATION.—Projects to imple16 ment this title shall be phased such that each project shall 

17 follow the sequencing identified below and include at least 

18 the— 

19 ‘‘(1) project purpose and need; 

20 ‘‘(2) identification of mitigation measures; 

21 ‘‘(3) appropriate environmental review; and 

22 ‘‘(4) prior to releasing Restoration Flows under 

23 this part, the Secretary shall— 

24 ‘‘(A) complete the implementation of miti25 gation measures required; and 


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1 ‘‘(B) complete implementation of the 

2 project.’’. 

3 SEC. 205. DISPOSAL OF PROPERTY; TITLE TO FACILITIES. 

4 Section 10005 of the San Joaquin River Restoration 

5 Settlement Act (Public Law 111–11) is amended— 

6 (1) in subsection (a), by striking ‘‘the Settlement 

7 authorized by this part’’ and inserting ‘‘this part’’; 

8 (2) in subsection (b)— 

9 (A) in paragraph (1)— 

10 (i) by striking ‘‘(1) IN GENERAL.—The 

11 Secretary’’ and inserting ‘‘The Secretary’’; 

12 and 

13 (ii) by striking ‘‘the Settlement author14 ized by this part’’ and inserting ‘‘this 

15 part’’; and 

16 (B) by striking paragraph (2); and 

17 (3) in subsection (c)— 

18 (A) in paragraph (1), by striking ‘‘the Set19 tlement’’ and inserting ‘‘this part’’; 

20 (B) in paragraph (2)— 

21 (i) by striking ‘‘through the exercise of 

22 its eminent domain authority’’; and 

23 (ii) by striking ‘‘the Settlement’’ and 

24 inserting ‘‘this part’’; and 


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1 (C) in paragraph (3), by striking ‘‘section 

2 10009(c)’’ and inserting ‘‘section 10009’’. 

3 SEC. 206. COMPLIANCE WITH APPLICABLE LAW. 

4 Section 10006 of the San Joaquin River Restoration 

5 Settlement Act (Public Law 111–11) is amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (1), by inserting ‘‘unless 

8 otherwise provided by this part’’ before the pe9 riod at the end; and 

10 (B) in paragraph (2), by striking ‘‘the Set11 tlement’’ and inserting ‘‘this part’’; 

12 (2) in subsection (b), by inserting ‘‘, unless oth13 erwise provided by this part’’ before the period at the 

14 end; 

15 (3) in subsection (c)— 

16 (A) in paragraph (2), by striking ‘‘section 

17 10004’’ and inserting ‘‘this part’’; and 

18 (B) in paragraph (3), by striking ‘‘the Set19 tlement’’ and inserting ‘‘this part’’; and 

20 (4) in subsection (d)— 

21 (A) by inserting ‘‘, including without limi22 tation to sections 10004(d) and 10004(h)(4) of 

23 this part,’’ after ‘‘implementing this part’’; and 

24 (B) by striking ‘‘for implementation of the 

25 Settlement’’. 


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1 SEC. 207. COMPLIANCE WITH CENTRAL VALLEY PROJECT 

2 IMPROVEMENT ACT. 

3 Section 10007 of the San Joaquin River Restoration 

4 Settlement Act (Public Law 111–11) is amended— 

5 (1) in the matter preceding paragraph (1), 

6 (A) by striking ‘‘the Settlement’’ and insert7 ing ‘‘enactment of this part’’; and 

8 (B) by inserting: ‘‘and the obligations of the 

9 Secretary and all other parties to protect and 

10 keep in good condition any fish that may be 

11 planted or exist below Friant Dam including 

12 any obligations under section 5937 of the Cali13 fornia Fish and Game Code and the public trust 

14 doctrine, and those of the Secretary and all other 

15 parties under the Endangered Species Act of 

16 1973 (16 U.S.C. 1531 et seq.).’’ before ‘‘, pro17 vided’’; and 

18 (2) in paragraph (1), by striking ‘‘, as provided 

19 in the Settlement’’. 

20 SEC. 208. NO PRIVATE RIGHT OF ACTION. 

21 Section 10008(a) of the San Joaquin River Restora22 tion Settlement Act (Public Law 111–11) is amended— 

23 (1) by striking ‘‘not a party to the Settlement’’ 

24 after ‘‘person or entity’’ ; and 

25 (2) by striking ‘‘or the Settlement’’ before the pe26 riod and inserting ‘‘unless otherwise provided by this 


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1 part. Any Central Valley Project long-term water 

2 service or repayment contractor within the Friant Di3 vision, Hidden unit, or Buchanan Unit adversely af4 fected by the Secretary’s failure to comply with sec5 tion 10004(a)(3) of this part may bring an action 

6 against the Secretary for injunctive relief or damages, 

7 or both.’’. 

8 SEC. 209. IMPLEMENTATION. 

9 Section 10009 of the San Joaquin River Restoration 

10 Settlement Act (Public Law 111–11) is amended— 

11 (1) in the header by striking ‘‘; SETTLEMENT

12 FUND’’; 

13 (2) in subsection (a)— 

14 (A) in paragraph (1)— 

15 (i) by striking ‘‘the Settlement’’ and 

16 inserting ‘‘this part’’; 

17 (ii) by striking ‘‘, estimated to total’’ 

18 and all that follows through ‘‘subsection 

19 (b)(1),’’; and 

20 (iii) by striking ‘‘, provided; however,’’ 

21 and all that follows through ‘‘$110,000,000 

22 of State funds’’; 

23 (B) in paragraph (2)— 


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1 (i) in subparagraph (A), by striking 

2 ‘‘(A) IN GENERAL.—The Secretary’’ and in3 serting ‘‘The Secretary’’; 

4 (ii) by striking subparagraph (B); and 

5 (C) in paragraph (3)— 

6 (i) by striking ‘‘Except as provided in 

7 the Settlement, to’’ and inserting ‘‘To’’; and 

8 (ii) by striking ‘‘this Settlement’’ and 

9 inserting ‘‘this part’’; 

10 (3) in subsection (b)(1)— 

11 (A) by striking ‘‘In addition’’ through 

12 ‘‘however, that the’’ and inserting ‘‘The’’; 

13 (B) by striking ‘‘such additional appropria14 tions only in amounts equal to’’; and 

15 (C) by striking ‘‘or the Settlement’’ before 

16 the period; 

17 (4) in subsection (c)— 

18 (A) in paragraph (1)— 

19 (i) in the matter preceding subpara20 graph (A), by striking ‘‘the Settlement’’ and 

21 inserting ‘‘this part’’; 

22 (ii) in subparagraph (C), by striking 

23 ‘‘from the sale of water pursuant to the Set24 tlement, or’’; and 


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1 (iii) in subparagraph (D), by striking 

2 ‘‘the Settlement’’ and inserting ‘‘this part’’; 

3 (B) in paragraph (2), by striking ‘‘the Set4 tlement and’’ before ‘‘this part’’; and 

5 (5) by striking subsections (d) through (f). 

6 SEC. 210. REPAYMENT CONTRACTS AND ACCELERATION OF 

7 REPAYMENT OF CONSTRUCTION COSTS. 

8 Section 10010 of the San Joaquin River Restoration 

9 Settlement Act (Public Law 111–11) is amended— 

10 (1) in subsection (a)— 

11 (A) in paragraph (3)(D), by striking ‘‘the 

12 Settlement and’’ after ‘‘this part’’; and 

13 (B) in paragraph (4)(C), by striking ‘‘the 

14 Settlement and’’ after ‘‘this part’’; 

15 (2) in subsection (c), by striking paragraph (3); 

16 (3) in subsection (d)(1), by striking ‘‘the Settle17 ment’’ in both places it appears and inserting ‘‘this 

18 part’’; 

19 (4) in subsection (e)— 

20 (A) in paragraph (1)— 

21 (i) by striking ‘‘Interim Flows or Res22 toration Flows, pursuant to paragraphs 13 

23 or 15 of the Settlement’’ and inserting ‘‘Res24 toration Flows, pursuant to this part’’; 


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1 (ii) by striking ‘‘Interim Flows or’’ be2 fore ‘‘Restoration Flows’’; and 

3 (iii) by striking ‘‘the Interim Flows or 

4 Restoration Flows or is intended to other5 wise facilitate the Water Management Goal, 

6 as described in the Settlement’’ and insert7 ing ‘‘Restoration Flows’’; and 

8 (B) in paragraph (2)— 

9 (i) by striking ‘‘except as provided in 

10 paragraph 16(b) of the Settlement’’ after 

11 ‘‘Friant Division long-term contractor’’; 

12 and 

13 (ii) by striking ‘‘the Interim Flows or 

14 Restoration Flows or to facilitate the Water 

15 Management Goal’’ and inserting ‘‘Restora16 tion Flows’’. 

17 SEC. 211. REPEAL. 

18 Section 10011 of the San Joaquin River Restoration 

19 Settlement Act (Public Law 111–11) is repealed. 

20 SEC. 212. WATER SUPPLY MITIGATION. 

21 Section 10202(b) of the San Joaquin River Restora22 tion Settlement Act (Public Law 111–11) is amended— 

23 (1) in paragraph (1), by striking ‘‘the Interim or 

24 Restoration Flows authorized in part I of this subVerDate Mar 15 2010 21:58 Feb 27, 2012 Jkt 019200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6203 E:\BILLS\H1837.RH H1837

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1 title’’ and inserting ‘‘Restoration Flows authorized in 

2 this part’’; 

3 (2) in paragraph (2), by striking ‘‘the Interim or 

4 Restoration Flows authorized in part I of this sub5 title’’ and inserting ‘‘Restoration Flows authorized in 

6 this part’’; and 

7 (3) in paragraph (3)— 

8 (A) in subparagraph (A), by striking ‘‘meet 

9 the Restoration Goal as described in part I of 

10 this subtitle’’ and inserting ‘‘recover Restoration 

11 Flows as described in this part’’; 

12 (B) in subparagraph (C)— 

13 (i) by striking ‘‘the Interim or Restora14 tion Flows authorized in part I of this sub15 title’’ and inserting ‘‘Restoration Flows au16 thorized in this part’’; and 

17 (ii) by striking ‘‘, and for ensuring ap18 propriate adjustment in the recovered water 

19 account pursuant to section 10004(a)(5)’’. 

20 SEC. 213. ADDITIONAL AUTHORITIES. 

21 Section 10203 of the San Joaquin River Restoration 

22 Settlement Act (Public Law 111–11) is amended— 

23 (1) in subsection (b)— 

24 (A) by striking ‘‘section 10004(a)(4)’’ and 

25 inserting ‘‘section 10004(a)(3)’’; and 


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1 (B) by striking ‘‘, provided’’ and all that 

2 follows through ‘‘section 10009(f)(2)’’; and 

3 (2) by striking subsection (c). 

4 TITLE III—REPAYMENT CON5 TRACTS AND ACCELERATION 

6 OF REPAYMENT OF CON7 STRUCTION COSTS 

8 SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF 

9 REPAYMENT OF CONSTRUCTION COSTS. 

10 (a) CONVERSION OF CONTRACTS.— 

11 (1) Not later than 1 year after enactment, the 

12 Secretary of the Interior, upon request of the con13 tractor, shall convert all existing long-term Central 

14 Valley Project contracts entered under subsection (e) 

15 of section 9 of the Act of August 4, 1939 (53 Stat. 

16 1196), to a contract under subsection (d) of section 9 

17 of said Act (53 Stat. 1195), under mutually agreeable 

18 terms and conditions. 

19 (2) Upon request of the contractor, the Secretary 

20 is further authorized to convert, not later than 1 year 

21 after enactment, any Central Valley Project long-term 

22 contract entered under subsection (c)(2) of section 9 

23 of the Act of August 4, 1939 (53 Stat. 1194), to a con24 tract under subsection (c)(1) of section 9 of said Act, 

25 under mutually agreeable terms and conditions. 


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1 (3) All contracts entered into pursuant to para2 graph (1) shall— 

3 (A) require the repayment, either in lump 

4 sum or by accelerated prepayment, of the re5 maining amount of construction costs identified 

6 in the most current version of the Central Valley 

7 Project Schedule of Irrigation Capital Alloca8 tions by Contractor, as adjusted to reflect pay9 ments not reflected in such schedule, and prop10 erly assignable for ultimate return by the con11 tractor, no later than January 31, 2013, or if 

12 made in approximately equal annual install13 ments, no later than January 31, 2016; such 

14 amount to be discounted by the Treasury Rate. 

15 An estimate of the remaining amount of con16 struction costs as of January 31, 2013, as ad17 justed, shall be provided by the Secretary of the 

18 Interior to each contractor no later than 180 

19 days after enactment; 

20 (B) require that, notwithstanding subsection 

21 (c)(2), construction costs or other capitalized 

22 costs incurred after the effective date of the con23 verted contract or not reflected in the schedule 

24 referenced in subparagraph (A), and properly 

25 assignable to such contractor, shall be repaid in 


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1 not more than 5 years after notification of the 

2 allocation if such amount is a result of a collec3 tive annual allocation of capital costs to the con4 tractors exercising contract conversions under 

5 this subsection of less than $5,000,000. If such 

6 amount is $5,000,000 or greater, such cost shall 

7 be repaid as provided by applicable reclamation 

8 law, provided that the reference to the amount of 

9 $5,000,000 shall not be a precedent in any other 

10 context; and 

11 (C) provide that power revenues will not be 

12 available to aid in repayment of construction 

13 costs allocated to irrigation under the contract. 

14 (4) All contracts entered into pursuant to para15 graph (2) shall— 

16 (A) require the repayment in lump sum of 

17 the remaining amount of construction costs iden18 tified in the most current version of the Central 

19 Valley Project Schedule of Municipal and Indus20 trial Water Rates, as adjusted to reflect pay21 ments not reflected in such schedule, and prop22 erly assignable for ultimate return by the con23 tractor, no later than January 31, 2016. An esti24 mate of the remaining amount of construction 

25 costs as of January 31, 2016, as adjusted, shall 


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1 be provided by the Secretary of the Interior to 

2 each contractor no later than 180 days after en3 actment; and 

4 (B) require that, notwithstanding subsection 

5 (c)(2), construction costs or other capitalized 

6 costs incurred after the effective date of the con7 tract or not reflected in the schedule referenced in 

8 subparagraph (A), and properly assignable to 

9 such contractor, shall be repaid in not more than 

10 5 years after notification of the allocation if such 

11 amount is a result of a collective annual alloca12 tion of capital costs to the contractors exercising 

13 contract conversions under this subsection of less 

14 than $5,000,000. If such amount is $5,000,000 

15 or greater, such cost shall be repaid as provided 

16 by applicable reclamation law, provided that the 

17 reference to the amount of $5,000,000 shall not 

18 be a precedent in any other context. 

19 (b) FINAL ADJUSTMENT.—The amounts paid pursuant 

20 to subsection (a) shall be subject to adjustment following 

21 a final cost allocation by the Secretary of the Interior upon 

22 completion of the construction of the Central Valley Project. 

23 In the event that the final cost allocation indicates that the 

24 costs properly assignable to the contractor are greater than 

25 what has been paid by the contractor, the contractor shall 


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1 be obligated to pay the remaining allocated costs. The term 

2 of such additional repayment contract shall be no less than 

3 1 year and no more than 10 years, however, mutually 

4 agreeable provisions regarding the rate of repayment of such 

5 amount may be developed by the parties. In the event that 

6 the final cost allocation indicates that the costs properly 

7 assignable to the contractor are less than what the con8 tractor has paid, the Secretary of the Interior is authorized 

9 and directed to credit such overpayment as an offset against 

10 any outstanding or future obligation of the contractor. 

11 (c) APPLICABILITY OF CERTAIN PROVISIONS.— 

12 (1) Notwithstanding any repayment obligation 

13 under subsection (a)(3)(B) or subsection (b), upon a 

14 contractor’s compliance with and discharge of the ob15 ligation of repayment of the construction costs as pro16 vided in subsection (a)(3)(A), the ownership and full17 cost pricing limitations of any provision of Federal 

18 reclamation law shall not apply to lands in such dis19 trict. 

20 (2) Notwithstanding any repayment obligation 

21 under paragraph (3)(B) or paragraph (4)(B) of sub22 section (a), or subsection (b), upon a contractor’s 

23 compliance with and discharge of the obligation of re24 payment of the construction costs as provided in 

25 paragraphs (3)(A) and (4)(A) of subsection (a), such 


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1 contractor shall continue to pay applicable operation 

2 and maintenance costs and other charges applicable 

3 to such repayment contracts pursuant to the then-cur4 rent rate-setting policy and applicable law. 

5 (d) CERTAIN REPAYMENT OBLIGATIONS NOT AL6 TERED.—Implementation of the provisions of this section 

7 shall not alter the repayment obligation of any other long8 term water service or repayment contractor receiving water 

9 from the Central Valley Project, or shift any costs that 

10 would otherwise have been properly assignable to any con11 tractors absent this section, including operations and main12 tenance costs, construction costs, or other capitalized costs 

13 incurred after the date of enactment of this Act, to other 

14 such contractors. 

15 (e) STATUTORY INTERPRETATION.—Nothing in this 

16 part shall be construed to affect the right of any long-term 

17 contractor to use a particular type of financing to make 

18 the payments required in paragraph (3)(A) or paragraph 

19 (4)(A) of subsection (a). 

20 (f) DEFINITION OF TREASURY RATE.—For purposes of 

21 this section, ‘‘Treasury Rate’’ shall be defined as the 20- 

22 year Constant Maturity Treasury rate published by the 

23 United States Department of the Treasury as of October 

24 1, 2012. 


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1 TITLE IV—BAY-DELTA WATER2 SHED WATER RIGHTS PRES3 ERVATION AND PROTECTION 

4 SEC. 401. WATER RIGHTS AND AREA-OF-ORIGIN PROTEC5 TIONS. 

6 Notwithstanding the provisions of this Act, Federal 

7 reclamation law, or the Endangered Species Act of 1973 

8 (16 U.S.C. 1531 et seq.)— 

9 (1) the Secretary of the Interior (‘‘Secretary’’) is 

10 directed, in the operation of the Central Valley 

11 Project, to strictly adhere to State water rights law 

12 governing water rights priorities by honoring water 

13 rights senior to those belonging to the Central Valley 

14 Project, regardless of the source of priority; 

15 (2) the Secretary is directed, in the operation of 

16 the Central Valley Project, to strictly adhere to and 

17 honor water rights and other priorities that are ob18 tained or exist pursuant to the provisions of Cali19 fornia Water Code sections 10505, 10505:5, 11128, 

20 11460, and 11463; and sections 12200 to 12220, in21 clusive; and 

22 (3) any action that affects the diversion of water 

23 or involves the release of water from any water stor24 age facility taken by the Secretary or the Secretary 

25 of the Department of Commerce to conserve, enhance, 


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1 recover, or otherwise protect any species listed under 

2 the Endangered Species Act of 1973 (16 U.S.C. 1531 

3 et seq.) shall be applied in a manner that is con4 sistent with water right priorities established by State 

5 law. 

6 SEC. 402. SACRAMENTO RIVER SETTLEMENT CONTRACTS. 

7 In the implementation of the Endangered Species Act 

8 of 1973 (16 U.S.C. 1531 et seq.), in the Bay-Delta and on 

9 the Sacramento River, the Secretary and the Secretary of 

10 Commerce are directed to apply any limitations on the op11 eration of the Central Valley Project or to formulate any 

12 ‘‘reasonable prudent alternative’’ associated with the oper13 ation of the Central Valley Project in a manner that strictly 

14 adheres to and applies the water rights priorities for 

15 ‘‘Project Water’’ and ‘‘Base Supply’’ provided for in the 

16 Sacramento River Settlement Contracts. Article 3(i) of the 

17 Sacramento River Settlement Contracts shall not be utilized 

18 by the United States as means to provide shortages to the 

19 Sacramento River Settlement Contracts that are different 

20 than those provided for in Article 5(a) of those contracts. 

21 SEC. 403. SACRAMENTO RIVER WATERSHED WATER SERV22 ICE CONTRACTORS. 

23 (a) IN GENERAL.—Subject to subsection (b) and the 

24 absolute priority of the Sacramento River Settlement Con25 tractors to Sacramento River supplies over Central Valley 


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1 Project diversions and deliveries to other contractors, the 

2 Secretary is directed, in the operation of the Central Valley 

3 Project, to allocate water provided for irrigation purposes 

4 to existing Central Valley Project agricultural water service 

5 contractors within the Sacramento River Watershed in 

6 compliance with the following: 

7 (1) Not less than 100% of their contract quan8 tities in a ‘‘Wet’’ year. 

9 (2) Not less than 100% of their contract quan10 tities in an ‘‘Above Normal’’ year. 

11 (3) Not less than 100% of their contract quan12 tities in a ‘‘Below Normal’’ year. 

13 (4) Not less than 75% of their contract quan14 tities in a ‘‘Dry’’ year. 

15 (5) Not less than 50% of their contract quan16 tities in a ‘‘Critically Dry’’ year. 

17 (b) PROTECTION OF MUNICIPAL AND INDUSTRIAL SUP18 PLIES.—Nothing in subsection (a) shall be deemed to (i) 

19 modify any provision of a water service contract that ad20 dresses municipal and industrial water shortage policies of 

21 the Secretary, (ii) affect or limit the authority of the Sec22 retary to adopt or modify municipal and industrial water 

23 shortage policies, (iii) affect or limit the authority of the 

24 Secretary to implement municipal and industrial water 

25 shortage policies, or (iv) affect allocations to Central Valley 


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1 Project municipal and industrial contractors pursuant to 

2 such policies. Neither subsection (a) nor the Secretary’s im3 plementation of subsection (a) shall constrain, govern or af4 fect, directly or indirectly, the operations of the Central Val5 ley Project’s American River Division or any deliveries 

6 from that Division, its units or its facilities. 

7 (c) DEFINITIONS.—In this section: 

8 (1) The term ‘‘existing Central Valley Project ag9 ricultural water service contractors within the Sac10 ramento River Watershed’’ means water service con11 tractors within the Shasta, Trinity, and Sacramento 

12 River Divisions of the Central Valley Project, that 

13 have a water service contract in effect, on the date of 

14 the enactment of this section, that provides water for 

15 irrigation. 

16 (2) The year type terms used in subsection (a) 

17 have the meaning given those year types in the Sac18 ramento Valley Water Year Type (40–30–30) Index. 

19 SEC. 404. NO REDIRECTED ADVERSE IMPACTS. 

20 The Secretary shall insure that there are no redirected 

21 adverse water supply or fiscal impacts to those within the 

22 Sacramento River watershed or to the State Water Project 

23 arising from the Secretary’s operation of the Central Valley 

24 Project to meet legal obligations imposed by or through any 

25 State or Federal agency, including, but not limited to those 


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1 legal obligations emanating from the Endangered Species 

2 Act of 1973 (16 U.S.C. 1531 et seq.) or this Act, or actions 

3 or activities implemented to meet the twin goals of improv4 ing water supply or addressing environmental needs of the 

5 Bay Delta. 

6 TITLE V—MISCELLANOUS 

7 SEC. 501. PRECEDENT. 

8 Congress finds and declares that— 

9 (1) coordinated operations between the Central 

10 Valley Project and the State Water Project, previously 

11 requested and consented to by the State of California 

12 and the Federal Government, require assertion of Fed13 eral supremacy to protect existing water rights 

14 throughout the system; and 

15 (2) these circumstances are unique to California. 

16 Therefore, nothing in this Act shall serve as precedent in 

17 any other State. 


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Union Calendar No. 280 

112TH CONGRESS 

2D SESSION H. R. 1837 

[Report No. 112–403] 

A BILL 

To address certain water-related concerns on the 

San Joaquin River, and for other purposes. 

FEBRUARY 27, 2012 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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