I 

112TH CONGRESS 

1ST SESSION H. R. 1837 

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 

A BILL 

To address certain water-related concerns on the San 

Joaquin River, and for other purposes. 

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 ‘‘San Joaquin Valley 

5 Water Reliability Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—CENTRAL VALLEY PROJECT IMPROVEMENT ACT 

REFORMS 


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Sec. 101. Amendment to purposes. 

Sec. 102. Amendment to definition. 

Sec. 103. Limitation on contracting and contract reform. 

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. Compliance with Endangered Species Act of 1973. 

Sec. 109. Authorized service area. 

Sec. 110. Area of origin and prior rights. 

Sec. 111. Water storage. 

TITLE II—SAN JOAQUIN RIVER RESTORATION 

Sec. 201. Reference. 

Sec. 202. Preemption of State law. 

Sec. 203. Repeal of the San Joaquin River Settlement. 

Sec. 204. Satisfaction and discharge of obligations. 

Sec. 205. San Joaquin River Habitat Restoration. 

Sec. 206. Restoration Fund. 

Sec. 207. Natural and artificially spawned species. 

TITLE III—REPAYMENT CONTRACTS AND ACCELERATION OF 

REPAYMENT OF CONSTRUCTION COSTS 

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

costs. 

1 TITLE I—CENTRAL VALLEY 

2 PROJECT IMPROVEMENT ACT 

3 REFORMS 

4 SEC. 101. AMENDMENT TO PURPOSES. 

5 Section 3402 of the Central Valley Project Improve6 ment Act (106 Stat. 4706) is amended— 

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

8 the end; and 

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

10 ‘‘(g) to ensure that water dedicated to fish and wild11 life purposes by this title is replaced and provided to Cen12 tral Valley Project water contractors by December 31, 

13 2016, at the lowest cost reasonably achievable; and 


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1 ‘‘(h) to facilitate and expedite water transfers in ac2 cordance with this Act.’’. 

3 SEC. 102. AMENDMENT TO DEFINITION. 

4 Section 3403(a) of the Central Valley Project Im5 provement Act (106 Stat. 4707) is amended to read as 

6 follows: 

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

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

9 as of October 30, 1992, were present in the Sacramento 

10 and San Joaquin Rivers and their tributaries and ascend 

11 those rivers and their tributaries to reproduce after matur12 ing in San Francisco Bay or the Pacific Ocean;’’. 

13 SEC. 103. LIMITATION ON CONTRACTING AND CONTRACT 

14 REFORM. 

15 Section 3404 of the Central Valley Project Improve16 ment Act (106 Stat. 4710) is amended by striking the lan17 guage of the section and by adding: 

18 ‘‘(a) RENEWAL OF EXISTING LONG-TERM CON19 TRACTS.—Upon request of the contractor, the Secretary 

20 shall renew any existing long-term repayment or water 

21 service contract that provides for the delivery of water 

22 from the Central Valley Project for a period of 40 years, 

23 and renew such contracts for successive periods of 40 

24 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 re3 newed pursuant to this section shall include a provision 

4 that requires the Secretary to charge the other party to 

5 such contract only for water actually delivered by the Sec6 retary.’’. 

7 SEC. 104. WATER TRANSFERS, IMPROVED WATER MANAGE8 MENT, AND CONSERVATION. 

9 Section 3405 of the Central Valley Project Improve10 ment Act (106 Stat. 4710) is amended as follows: 

11 (1) In subsection (a)— 

12 (A) by inserting before ‘‘Except as pro13 vided herein’’ the following: ‘‘The Secretary 

14 shall take all necessary actions to facilitate and 

15 expedite transfers of Central Valley Project 

16 water in accordance with such Act or any other 

17 provision of law.’’; 

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 Sec24 retary shall determine if a written transfer pro25 posal is complete within 45 days after the date 


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1 of submission of such proposal. If such district 

2 or agency or the Secretary determines that such 

3 proposal is incomplete, such district or agency 

4 or the Secretary shall state with specificity 

5 what must be added to or revised in order for 

6 such proposal to be complete. 

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

8 the Secretary shall not impose mitigation or 

9 other requirements on a proposed transfer, but 

10 the contracting district from which the water is 

11 coming or the agency shall retain all authority 

12 under State law to approve or condition a pro13 posed transfer.’’; and 

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

15 ‘‘(4) Notwithstanding any other provision of 

16 law— 

17 ‘‘(A) the authority to make transfers or ex18 changes of, or banking or recharge arrange19 ments using, Central Valley Project water that 

20 could have been conducted before October 30, 

21 1992, is valid, and such transfers, exchanges, 

22 or arrangements shall not be subject to, limited, 

23 or conditioned by this title; and 

24 ‘‘(B) this title shall not supersede or re25 voke the authority to transfer, exchange, bank, 


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1 or recharge Central Valley Project water that 

2 existed 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 

7 the following: ‘‘The contracting district or agen8 cy, not including contracting districts serving 

9 multiple agencies with separate governing 

10 boards, shall ensure that all contractor-owned 

11 water delivery systems within its boundaries 

12 measure surface water at the district or agen13 cy’s facilities up to the point the surface water 

14 is commingled 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 redesig19 nated by paragraph (4)) to read as follows: 

20 ‘‘(e) RESTORATION FUND.—All revenues received by 

21 the Secretary that exceed the cost-of-service rate applica22 ble to the delivery of water transferred from irrigation use 

23 to municipal and industrial use under subsection (a) shall 

24 be deposited into the Restoration Fund, as established 

25 under section 3407.’’. 


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

2 Section 3406 of the Central Valley Project Improve3 ment Act (106 Stat. 4714) is amended as follows: 

4 (1) In subsection (b)— 

5 (A) in paragraph (1), by amending sub6 paragraph (B) to read as follows: 

7 ‘‘(B) MODIFICATION OF PROGRAM.— 

8 ‘‘(i) IN GENERAL.—As needed to 

9 achieve the goals of the program estab10 lished under this paragraph, the Secretary 

11 may modify Central Valley Project oper12 ations to provide reasonable water flows of 

13 suitable quality, quantity, and timing to 

14 protect all life stages of anadromous fish. 

15 Such flows shall be provided— 

16 ‘‘(I) from the quantity of water 

17 dedicated for fish, wildlife, and habi18 tat restoration purposes under para19 graph (2); 

20 ‘‘(II) from the water supplies ac21 quired pursuant to paragraph (3); and 

22 ‘‘(III) from other sources that do 

23 not conflict with fulfillment of the 

24 Secretary’s remaining contractual ob25 ligations to provide Central Valley 


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1 Project water for other authorized 

2 purposes. 

3 ‘‘(ii) INSTREAM FLOW NEEDS.—Rea4 sonable instream flow needs for all Central 

5 Valley Project controlled streams and riv6 ers shall be determined by the Secretary 

7 based on recommendations of the United 

8 States Fish and Wildlife Service and the 

9 National Marine Fisheries Service after 

10 consultation with the United States Geo11 logical Survey.’’; 

12 (B) by amending paragraph (2) to read as 

13 follows: 

14 ‘‘(2) upon October 30, 1992, dedicate and man15 age annually 800,000 acre-feet of Central Valley 

16 Project yield for the purposes of implementing the 

17 fish, wildlife, and habitat restoration purposes and 

18 measures authorized by such Act; assisting the State 

19 of California in its efforts to protect the waters of 

20 the San Francisco Bay/Sacramento-San Joaquin 

21 Delta Estuary; and helping to meet such obligations 

22 as may be legally imposed upon the Central Valley 

23 Project under State or Federal law following Octo24 ber 30, 1992, including additional obligations under 

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


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1 1531 et seq.). For the purpose of this section, the 

2 term ‘Central Valley Project yield’ means the deliv3 ery capability of the Central Valley Project during 

4 the 1928 to 1934 drought period after fishery, water 

5 quality, and other flow and operational requirements 

6 imposed by terms and conditions existing in licenses, 

7 permits, and other agreements pertaining to the 

8 Central Valley Project under applicable State or 

9 Federal law existing on October 30, 1992, have been 

10 met. All Central Valley Project water used for the 

11 purposes specified in this paragraph shall be cred12 ited to the quantity of Central Valley Project yield 

13 dedicated and managed under this paragraph by de14 termining how the dedication and management of 

15 such water would affect the delivery capability of the 

16 Central Valley Project during the 1928 to 1934 

17 drought period after fishery, water quality, and 

18 other flow and operational requirements imposed by 

19 terms and conditions existing in licenses, permits, 

20 and other agreements pertaining to the Central Val21 ley Project under applicable State or Federal law ex22 isting on October 30, 1992, have been met. To the 

23 fullest extent possible and in accordance with section 

24 3411, Central Valley Project water dedicated and 

25 managed pursuant to this paragraph shall be reused 


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1 to fulfill the Secretary’s remaining contractual obli2 gations to provide Central Valley Project water for 

3 agricultural or municipal and industrial purposes.’’; 

4 and 

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 

11 of the total quantity of water to be made avail12 able under said contracts, the quantity of Cen13 tral Valley Project yield dedicated and managed 

14 for that year under this paragraph shall be re15 duced by 25 percent.’’. 

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

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

18 programs and activities authorized by this section, the 

19 Secretary shall be deemed to have met the mitigation, pro20 tection, restoration, and enhancement purposes of section 

21 2 of the Act of August 26, 1937 (Chapter 832; 50 Stat. 

22 850).’’. 

23 SEC. 106. RESTORATION FUND. 

24 Section 3407 of the Central Valley Project Improve25 ment Act (106 Stat. 4714) is amended as follows: 


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1 (1) By amending subsection (a) to read as fol2 lows: 

3 ‘‘(a) RESTORATION FUND ESTABLISHED.— 

4 ‘‘(1) IN GENERAL.—There is established in the 

5 Treasury the ‘Central Valley Project Restoration 

6 Fund’, which shall be available for deposit of dona7 tions from any source and revenues collected under 

8 sections 3404(c)(3), 3405(f), 3406(c)(1), and 

9 3407(d). Funds donated to the Restoration Fund by 

10 a non-Federal entity for a specific purpose shall be 

11 expended for such purpose only and shall not be 

12 subject to appropriation. Amounts deposited shall be 

13 credited as offsetting collections. Not less than 50 

14 percent of the amounts deposited to the Restoration 

15 Fund shall be expended for purposes of the Central 

16 Valley Project unit or division regarding which the 

17 amounts were collected. 

18 ‘‘(2) PROHIBITION.—The Secretary may not— 

19 ‘‘(A) directly or indirectly require a dona20 tion or other payment to the Restoration Fund, 

21 or environmental restoration or mitigation fees 

22 not otherwise provided by law, as— 

23 ‘‘(i) a condition to providing for the 

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1 ley Project water pursuant to Federal rec2 lamation laws; or 

3 ‘‘(ii) a condition to the delivery of 

4 water pursuant to section 215 of the Rec5 lamation Reform Act of 1982 (Public Law 

6 97–293; 96 Stat. 1270); or 

7 ‘‘(B) require a donation or other payment 

8 to the Restoration Fund for any water that is 

9 delivered with the sole intent of groundwater re10 charge. 

11 ‘‘(3) USE OF CERTAIN AMOUNTS.—The Sec12 retary shall use the amounts collected pursuant to 

13 section 3406(c)(1)— 

14 ‘‘(A) to assist in improving water quality, 

15 riparian values, and fish habitat in the San 

16 Joaquin River from Friant Dam to Mendota 

17 Pool; or 

18 ‘‘(B) to support other projects benefitting 

19 land within the Friant Division. 

20 ‘‘(4) CERTAIN USE OF RESTORATION FUND.— 

21 Except as provided under paragraph (1), funds de22 posited into the Restoration Fund may be appro23 priated for the acquisition of water supplies and the 

24 construction of facilities used to implement projects 


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1 or programs undertaken pursuant to section 

2 3408(j).’’. 

3 (2) In subsection (c), by amending paragraph 

4 (1) to read as follows: 

5 ‘‘(1) To the extent required in Acts of appro6 priation, the Secretary shall assess and collect addi7 tional annual payments, in addition to the charges 

8 collected under sections 3404(c)(3), 3405(a)(1)(C), 

9 3405(f), and 3406(c)(1), consisting of charges to di10 rect beneficiaries of the Central Valley Project under 

11 subsection (d) of this section in order to recover a 

12 portion or all of the costs of carrying out programs, 

13 projects, plans, habitat restoration, improvement, 

14 and acquisition provisions of this title.’’. 

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

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

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

18 the Restoration Fund Advisory Board, shall submit to 

19 Congress a plan for the expenditure of all of the funds 

20 deposited into the Restoration Fund during the preceding 

21 fiscal year. Such plan shall contain a cost effectiveness 

22 analysis of each expenditure. 

23 ‘‘(h) ADVISORY BOARD.— 

24 ‘‘(1) ESTABLISHMENT.—There is hereby estab25 lished the Restoration Fund Advisory Board (hereinVerDate Mar 15 2010 04:30 May 18, 2011 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1837.IH H1837

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1 after in this section referred to as the ‘Advisory 

2 Board’) composed of 12 members selected by the 

3 Secretary, each for four year terms, one of whom 

4 shall be designated by the Secretary as Chairman. 

5 The members shall be selected so as to represent the 

6 various Central Valley Project stakeholders, four of 

7 whom shall be from CVP agricultural users, three 

8 from CVP municipal and industrial users, three 

9 from CVP power contractors, and two at the discre10 tion of the Secretary. The Secretary and the Sec11 retary of Commerce may each designate a represent12 ative to act as an observer of the Advisory Board. 

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

14 Board are as follows: 

15 ‘‘(A) To meet at least semi-annually to de16 velop and make recommendations to the Sec17 retary regarding priorities and spending levels 

18 on projects and programs carried out pursuant 

19 to the Central Valley Project Improvement Act. 

20 ‘‘(B) To ensure that any advice or rec21 ommendation made by the Advisory Board to 

22 the Secretary reflect the independent judgment 

23 of the Advisory Board. 

24 ‘‘(C) Not later than December 31, 2012, 

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1 retary and Congress recommendations required 

2 under subparagraph (A). 

3 ‘‘(D) Not later than December 31, 2012, 

4 and biennially thereafter, to transmit to Con5 gress a report that details the progress made in 

6 achieving the goals of the Restoration Fund as 

7 identified in this Act. 

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

9 the appropriate agency head, the Advisory Board 

10 may use the facilities and services of any Federal 

11 agency. Non-Federal members of the Advisory 

12 Board, while engaged in the performance of their 

13 duties away from their homes or regular places of 

14 business, may be allowed travel expenses, including 

15 per diem in lieu of subsistence under section 5703 

16 of title 5, United States Code. Funds from the Res17 toration Fund may be used to carry out this para18 graph. 

19 ‘‘(4) FACA.—The Federal Advisory Committee 

20 Act (5 U.S.C. App.) shall not apply to the Advisory 

21 Board.’’. 

22 SEC. 107. ADDITIONAL AUTHORITIES. 

23 (a) AUTHORITY FOR CERTAIN ACTIVITIES.—Section 

24 3408(c) of the Central Valley Project Improvement Act 

25 (106 Stat. 4728) is amended to read as follows: 


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1 ‘‘(c) CONTRACTS FOR ADDITIONAL STORAGE AND

2 DELIVERY OF WATER.— 

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

4 to enter into contracts pursuant to Federal reclama5 tion law and this title with any Federal agency, Cali6 fornia water user or water agency, State agency, or 

7 private organization for the exchange, impoundment, 

8 storage, carriage, and delivery of non-project water 

9 for domestic, municipal, industrial, fish and wildlife, 

10 and any other beneficial purpose. 

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

12 shall be deemed to supersede the provisions of sec13 tion 103 of Public Law 99–546 (100 Stat. 3051). 

14 ‘‘(3) AUTHORITY FOR CERTAIN ACTIVITIES.— 

15 The Secretary shall use the authority granted by 

16 this subsection in connection with requests to ex17 change, impound, store, carry, or deliver nonproject 

18 water using Central Valley Project facilities for any 

19 beneficial purpose. 

20 ‘‘(4) RATES.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall 

22 develop rates not to exceed the amount required 

23 to recover the reasonable costs incurred by the 

24 Secretary in connection with a beneficial pur25 pose under this subsection. Such rates shall be 


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1 charged to a party using Central Valley Project 

2 facilities for such purpose. Such costs shall not 

3 include any donation or other payment to the 

4 Restoration Fund. 

5 ‘‘(B) REDUCTION IN OPERATIONS AND

6 MAINTENANCE.—Any payment received in con7 nection with the use of Central Valley Project 

8 facilities shall be applied to reduce the current9 year operations and maintenance expenses, oth10 erwise payable by Central Valley Project con11 tractors, for such facilities used. 

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

13 construed and implemented to facilitate and encour14 age the use of Central Valley Project facilities to ex15 change, impound, store, carry, or deliver nonproject 

16 water for any beneficial purpose.’’. 

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

18 the Central Valley Project Improvement Act (106 Stat. 

19 4729) is amended— 

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

21 and Merchant Marine and Fisheries’’ and inserting 

22 ‘‘Natural Resources’’; 

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

24 the period at the end the following: ‘‘, including 

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


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1 (3) by adding at the end the following: ‘‘The fil2 ing and adequacy of such report shall be personally 

3 certified to the Committees referenced above by the 

4 Regional Director of the Mid-Pacific Region of the 

5 Bureau of Reclamation.’’. 

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

7 the Central Valley Project Improvement Act (106 Stat. 

8 4730) is amended to read as follows: 

9 ‘‘(j) PROJECT YIELD INCREASE.— 

10 ‘‘(1) PLAN REQUIRED.—In order to minimize 

11 adverse effects upon existing Central Valley Project 

12 water contractors resulting from the water dedicated 

13 for fish and wildlife under this title, and to assist 

14 the State of California in meeting its future water 

15 needs, the Secretary, on a priority basis and not 

16 later than September 30, 2012, shall submit to Con17 gress a least-cost plan to increase, as soon as pos18 sible but not later than September 30, 2016 (except 

19 for the construction of new facilities which shall not 

20 be limited by that deadline), the water of the Central 

21 Valley Project by the amount dedicated and man22 aged for fish and wildlife purposes under this title 

23 and otherwise required to meet the purposes of the 

24 Central Valley Project including satisfying contrac25 tual obligations. 


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1 ‘‘(2) CONTENTS OF PLAN.—The plan required 

2 by paragraph (1) shall include— 

3 ‘‘(A) recommendations on appropriate cost4 sharing arrangements and authorizing legisla5 tion or other measures needed to implement the 

6 intent, purposes, and provisions of this sub7 section; and 

8 ‘‘(B) a description of how the Secretary in9 tends to use the following options: 

10 ‘‘(i) Improvements in, modification of, 

11 or additions to the facilities and operations 

12 of the project and construction of new 

13 water storage facilities. 

14 ‘‘(ii) Conservation. 

15 ‘‘(iii) Transfers. 

16 ‘‘(iv) Conjunctive use. 

17 ‘‘(v) Purchase of water. 

18 ‘‘(vi) Purchase and idling of agricul19 tural land. 

20 ‘‘(vii) Direct purchase of water rights. 

21 ‘‘(viii) Water banking and recharge. 

22 ‘‘(3) IMPLEMENTATION OF PLAN.—Subject to 

23 the availability of appropriated funds, the Secretary 

24 shall implement the plan required by paragraph (1) 

25 commencing on October 1, 2012. In order to carry 


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1 out this subsection, the Secretary shall coordinate 

2 with the State of California in implementing meas3 ures for the long-term resolution of problems in the 

4 San Francisco Bay/Sacramento-San Joaquin Delta 

5 Estuary. 

6 ‘‘(4) FAILURE OF THE PLAN.—Not with7 standing any other provision of law, if by September 

8 30, 2016, the plan required by paragraph (1) fails 

9 to increase the annual delivery capability of the Cen10 tral Valley Project by 800,000 acre-feet, implemen11 tation of section 3406(b)(2) shall be suspended until 

12 the plan achieves an increase in the annual delivery 

13 capability of the Central Valley Project by 800,000 

14 acre-feet.’’. 

15 (d) TECHNICAL CORRECTION.—Section 3408(h) of 

16 the Central Valley Project Improvement Act (106 Stat. 

17 4729) is amended— 

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

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

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

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

22 SEC. 108. COMPLIANCE WITH ENDANGERED SPECIES ACT 

23 OF 1973. 

24 (a) COMPLIANCE.— 


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1 (1) IN GENERAL.—All requirements of the En2 dangered Species Act of 1973 (16 U.S.C. 1531 et 

3 seq.) shall be considered to be fully met for the pro4 tection and conservation of the species listed pursu5 ant to the Act for the operations of the Central Val6 ley Project and the California State Water Project, 

7 if the Central Valley Project and the California 

8 State Water Project are operated in a manner con9 sistent with the ‘‘Principles for Agreement on the 

10 Bay-Delta Standards Between the State of Cali11 fornia and the Federal Government’’ dated Decem12 ber 15, 1994. 

13 (2) BIOLOGICAL OPINIONS AND MODIFICA14 TION.—The Secretary of the Interior and the Sec15 retary of Commerce shall issue biological opinions 

16 for coordinated operations of the Central Valley 

17 Project and the California State Water Project that 

18 are no more restrictive than provisions of the ‘‘Prin19 ciples for Agreement on the Bay-Delta Standards 

20 Between the State of California and the Federal 

21 Government’’ dated December 15, 1994. Such bio22 logical opinions may be modified only with the con23 sent of the signatories to the ‘‘Principles for Agree24 ment on the Bay-Delta Standards Between the State 


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1 of California and the Federal Government’’ dated 

2 December 15, 1994. 

3 (b) PREEMPTION OF STATE LAW.— 

4 (1) STATE LAW PREEMPTION.—Neither the 

5 State of California, an agency of the State, nor any 

6 political subdivision of the State shall adopt or en7 force any requirement for the protection or conserva8 tion of any species listed under the Endangered Spe9 cies Act for the operations of the Central Valley 

10 Project or the California State Water Project that is 

11 more restrictive than the requirements of this sec12 tion. Any provision of California State law that au13 thorizes the imposition of conditions or restrictions 

14 on the operations of the Central Valley Project or 

15 the California State Water Project for the protection 

16 or conservation of a species that is more restrictive 

17 than this section is preempted. 

18 (2) NATIVE SPECIES PROTECTION.—Any re19 striction imposed under California law on the take 

20 or harvest of any nonnative or introduced aquatic or 

21 terrestrial species that preys upon a native fish spe22 cies that occupies the Sacramento and San Joaquin 

23 Rivers and their tributaries or the Sacramento-San 

24 Joaquin Rivers Delta shall be void and is preempted. 


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1 SEC. 109. AUTHORIZED SERVICE AREA. 

2 The authorized service area of the Central Valley 

3 Project shall include the area within the boundaries of the 

4 Kettleman City Community Services District, California, 

5 as those boundaries exist on the date of the enactment 

6 of this title. Notwithstanding the provisions of the Act of 

7 October 30, 1992, (Public Law 102–575, 106 Stat. 4600 

8 et seq.) upon enactment of this title, the Secretary is au9 thorized and directed to enter into a long-term contract 

10 in accordance with the Reclamation laws with the 

11 Kettleman City Community Services District, California, 

12 for the delivery of up to 900 acre-feet of Central Valley 

13 Project water for municipal and industrial use. The Sec14 retary may temporarily reduce deliveries of the quantity 

15 of water made available pursuant to up to 25 percent of 

16 such total whenever reductions due to hydrologic cir17 cumstances are imposed upon agricultural deliveries of 

18 Central Valley Project water. 

19 SEC. 110. AREA OF ORIGIN AND PRIOR RIGHTS. 

20 Nothing in this title shall affect the Secretary’s duty 

21 to operate the Central Valley Project in a manner con22 sistent with applicable provisions of State water law pro23 tecting any area of origin, watershed of origin, county of 

24 origin, or any other water rights, such as senior appropria25 tive rights, including rights appropriated prior to Decem26 ber 19, 1914. 


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1 SEC. 111. WATER STORAGE. 

2 The Secretary, acting through the Commissioner of 

3 the Bureau of Reclamation, may provide funds authorized 

4 to be appropriated to the surface storage projects identi5 fied in section 103(d)(1) of the Water Supply, Reliability, 

6 and Environmental Improvement Act (Public Law 108– 

7 361) and Acts supplemental and amendatory of that Act, 

8 to local joint powers authorities formed pursuant to State 

9 law by irrigation districts and other local water districts 

10 and local governments within the applicable hydrologic re11 gion, to advance those projects. 

12 TITLE II—SAN JOAQUIN RIVER 

13 RESTORATION 

14 SEC. 201. REFERENCE. 

15 Subtitle A of title X of Public Law 111–11 is hereby 

16 repealed. 

17 SEC. 202. PREEMPTION OF STATE LAW. 

18 Notwithstanding section 8 of the Reclamation Act of 

19 1902, except as provided herein, this title preempts and 

20 supersedes any State law, regulation, or requirement that 

21 imposes more restrictive requirements or regulations on 

22 the activities authorized under such title. Provided nothing 

23 herein shall exempt the Friant Division, Hidden Unit, and 

24 Buchanan Unit of the Central Valley Project from orders 

25 issued by the State Water Resources Control Board pursuVerDate Mar 15 2010 04:30 May 18, 2011 Jkt 099200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H1837.IH H1837

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1 ant to the Porter-Cologne Water Quality Control Act 

2 (California Water Code Sections 13000 et seq.). 

3 SEC. 203. REPEAL OF THE SAN JOAQUIN RIVER SETTLE4 MENT. 

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

6 shall cease any action to implement the San Joaquin River 

7 Restoration Settlement Act (subtitle A of title X of Public 

8 Law 111–11) and the Stipulation of Settlement (Natural 

9 Resources Defense Council, et al. v. Kirk Rodgers, et al., 

10 Eastern District of California, No. Civ. S–88–1658 LKK/ 

11 GGH). 

12 SEC. 204. SATISFACTION AND DISCHARGE OF OBLIGA13 TIONS. 

14 Congress finds and declares that the enactment of 

15 this section satisfies and discharges all of the following 

16 obligations: 

17 (1) Those of the Secretary contained in section 

18 3406(c)(1) of the Reclamation Projects Authoriza19 tion and Adjustment Act of 1992 (Public Law 102– 

20 575), except that the Secretary shall continue to as21 sess and collect the charges described in such section 

22 3406(c)(1). 

23 (2) Those of the Secretary and all other parties 

24 to protect and keep in good condition any fish that 

25 may be planted or exist below Friant Dam, including 


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1 any obligations under section 5937 of the California 

2 Fish and Game Code and the public trust doctrine. 

3 SEC. 205. SAN JOAQUIN RIVER HABITAT RESTORATION. 

4 (a) PURPOSE.—The purpose of this section is to im5 plement a program of increased water releases from 

6 Friant Dam to address environmental, habitat, fisheries, 

7 and water quality concerns on the San Joaquin River from 

8 Friant Dam to Sack Dam. 

9 (b) DEFINITIONS.—For the purposes of this section: 

10 (1) RESTORATION FLOWS.—The term ‘‘Res11 toration Flows’’ means the minimum flow of 50 

12 cubic feet per second at Sack Dam, located approxi13 mately 85 river miles downstream from Friant Dam. 

14 (2) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of the Interior. 

16 (3) WATER YEAR.—The term ‘‘Water Year’’ 

17 means October 1 through the following September 

18 30. 

19 (c) CRITICAL WATER YEAR.—For purposes of this 

20 section a Critical Water Year is when the total unimpaired 

21 runoff at Friant Dam is less than 400,000 acre-feet. 

22 (d) RELEASE OF RESTORATION FLOWS.—In each 

23 Water Year, commencing in the Water Year starting on 

24 October 1, 2012, the Secretary— 


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1 (1) shall modify Friant Dam operations so as 

2 to release the Restoration Flows for that Water 

3 Year, except in any critical water year; 

4 (2) shall ensure that the release of Restoration 

5 Flows are maintained at the levels prescribed by this 

6 section; 

7 (3) shall release the Restoration Flows in a 

8 manner that improves the fishery in the San Joa9 quin River below Friant Dam, but upstream of 

10 Gravelly Ford in existence as of the date of the en11 actment of this section, and the associated riparian 

12 habitat, while improving water quality in the San 

13 Joaquin River at Vernalis and achieving such other 

14 environmental benefits as the Secretary may reason15 ably determine; and 

16 (4) may, without limiting the actions required 

17 under paragraphs (1) through (3) and subject to 

18 subsection (m), use the Restoration Flows to en19 hance or restore a warm water fishery if the Sec20 retary determines that it is reasonable, prudent, and 

21 feasible to do so. 

22 (e) EFFECT ON EXISTING OBLIGATIONS.—Except as 

23 described in subsection (f), nothing in this section shall 

24 modify any existing obligation of the United States under 

25 Federal Reclamation law to operate the Central Valley 


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1 Project in conformity with State law and existing or to 

2 be renewed water service, repayment, purchase, or ex3 change contracts. 

4 (f) RECOVERY OF RESTORATION FLOWS.—Not later 

5 than 1 year after the date of the enactment of this section, 

6 the Secretary shall develop and implement a least-cost 

7 plan to fully recover or replace all Restoration Flows and 

8 provide such recovered or replacement flows to those water 

9 service contractors within the Friant Division, Hidden 

10 Unit, and Buchanan Unit of the Central Valley Project 

11 that relinquished the Restoration Flows so recovered or 

12 replaced. Such a program shall not impact the water sup13 ply or water rights of any entity outside the Friant Divi14 sion, Hidden Unit, and Buchanan Unit of the Central Val15 ley Project. 

16 (g) GROUNDWATER IMPACT PLAN.— 

17 (1) IN GENERAL.—Not later than 1 year after 

18 the date of the enactment of this section, the Sec19 retary, in cooperation with representatives of af20 fected landowners, shall develop and implement a 

21 least-cost plan to fully mitigate the impact on 

22 groundwater resources within the service area of the 

23 Friant Division, Hidden Unit, and Buchanan Unit 

24 of the Central Valley Project caused by the release 

25 of Restoration Flows. 


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1 (2) MITIGATION.—The mitigation required 

2 under paragraph (1) may include one or more of the 

3 following: the development of new water supplies, 

4 land retirement, and groundwater banking and re5 charge projects. To the extent Restoration Flows are 

6 recovered or replaced pursuant to subsection (g) in 

7 a manner that mitigates the impact on groundwater 

8 resources caused by the release of Restoration 

9 Flows, such recovery or replacement may be consid10 ered to be a part of the plan to be implemented 

11 under this subsection. 

12 (h) PRIVATE RIGHTS OF ACTION.—Nothing in this 

13 section shall confer upon any person or entity a private 

14 right of action or claim for relief to interpret or enforce 

15 the provisions of this section. Any Central Valley Project 

16 long-term water service or repayment contractor within 

17 the Friant Division, Hidden Unit, or Buchanan Unit ad18 versely affected by the Secretary’s failure to comply with 

19 subsection (f) or (g) may bring an action against the Sec20 retary for injunctive relief or damages, or both. Any action 

21 for damages shall be brought in the United States Court 

22 of Federal Claims. 

23 (i) NO IMPACTS ON OTHER INTERESTS.—No Central 

24 Valley Project or other water other than San Joaquin 

25 River water impounded by or bypassed from Friant Dam 


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1 shall be used to implement subsection (d) unless such use 

2 is on a voluntary basis. No cost associated with the imple3 mentation of this section shall be imposed directly or indi4 rectly on any Central Valley Project contractor, or any 

5 other person or entity, outside the Friant Division, the 

6 Hidden Unit, or the Buchanan Unit, unless such costs are 

7 incurred on a voluntary basis. The implementation of this 

8 section shall not result directly or indirectly in any reduc9 tion in water supplies or water reliability on any Central 

10 Valley Project contractor, any State Water Project con11 tractor, or any other person or entity, outside the Friant 

12 Division, the Hidden Unit, or the Buchanan Unit, unless 

13 such reductions or costs are incurred on a voluntary basis. 

14 (j) PRIORITY.— 

15 (1) IN GENERAL.—All actions taken under this 

16 section shall be subordinate to the Secretary’s use of 

17 Central Valley Project facilities to make Project 

18 water, other than water released from the Friant 

19 Dam pursuant to this section, and the Secretary’s 

20 performance of the Agreement. 

21 (2) DEFINITION OF AGREEMENT.—For the pur22 poses of this subsection, the term ‘‘Agreement’’ 

23 means the Agreement of November 24, 1986, be24 tween the United States and the Department of 

25 Water Resources of the State of California for the 


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1 coordinated operation of the Central Valley Project 

2 and the State Water Project as authorized by sec3 tion 103 of Public Law 99–546, including any 

4 agreement to resolve conflicts arising from that 

5 Agreement. 

6 SEC. 206. RESTORATION FUND. 

7 There is hereby established within the Treasury of 

8 the United States a fund, to be known as the San Joaquin 

9 River Fishery Restoration Fund, into which the following 

10 funds shall be deposited and used solely for the purpose 

11 of implementing this title: 

12 (1) All payments received pursuant to section 

13 3406(c)(1) of the Reclamation Projects Authoriza14 tion and Adjustment Act of 1992 (Public Law 102– 

15 575; 106 Stat. 4721). 

16 (2) Any non-Federal funds, including State 

17 cost-sharing funds, contributed to the United States 

18 for this purpose. 

19 (3) Funds in the San Joaquin River Restora20 tion Fund, (Public Law 111–11 section 

21 10009(c)(1)), on the day before the date of the en22 actment of this Act. 

23 SEC. 207. NATURAL AND ARTIFICIALLY SPAWNED SPECIES. 

24 After the date of the enactment of this title, the Sec25 retary shall not distinguish between natural-spawned and 


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1 hatchery-spawned or otherwise artificially propagated 

2 strains of a species in making any determination under 

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

4 seq.) that relates to any anadromous fish species present 

5 in the Sacramento and San Joaquin Rivers or their tribu6 taries and ascend those rivers and their tributaries to re7 produce after maturing in San Francisco Bay or the Pa8 cific Ocean. 

9 TITLE III—REPAYMENT CON10 TRACTS AND ACCELERATION 

11 OF REPAYMENT OF CON12 STRUCTION COSTS 

13 SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF 

14 REPAYMENT OF CONSTRUCTION COSTS. 

15 (a) CONVERSION OF CONTRACTS.— 

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

17 Secretary of the Interior, upon request of the con18 tractor, shall convert all existing long-term contracts 

19 with any Central Valley Project contracts entered 

20 under subsection (e) of section 9 of the Act of Au21 gust 4, 1939 (53 Stat. 1196), to contracts under 

22 subsection (d) of section 9 of said Act (53 Stat. 

23 1195), under mutually agreeable terms and condi24 tions. 


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1 (2) Upon request of the contractor, the Sec2 retary is further authorized to convert, not later 

3 than 1 year after enactment, any Central Valley 

4 Project long-term contract entered under subsection 

5 (c)(2) of section 9 of the Act of August 4, 1939 (53 

6 Stat. 1194), to a contract under subsection (c)(1) of 

7 section 9 of said Act, under mutually agreeable 

8 terms and conditions. 

9 (3) All contracts entered into pursuant to para10 graph (1) shall— 

11 (A) require the repayment, either in lump 

12 sum or by accelerated prepayment, of the re13 maining amount of construction costs identified 

14 in the most current version of the Central Val15 ley Project Schedule of Irrigation Capital Allo16 cations by Contractor, as adjusted to reflect 

17 payments not reflected in such schedule, and 

18 properly assignable for ultimate return by the 

19 contractor, no later than January 31, 2013, or 

20 if made in approximately equal annual install21 ments, no later than January 31, 2016; such 

amount to be discounted by 1 22 ⁄2 the Treasury 

23 Rate. An estimate of the remaining amount of 

24 construction costs as of January 31, 2013, as 

25 adjusted, shall be provided by the Secretary of 


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1 the Interior to each contractor no later than 

2 180 days after enactment; 

3 (B) require that, notwithstanding sub4 section (c)(2), construction costs or other cap5 italized costs incurred after the effective date of 

6 the contract or not reflected in the schedule ref7 erenced in subparagraph (A), and properly as8 signable to such contractor, shall be repaid in 

9 not more than 5 years after notification of the 

10 allocation if such amount is a result of a collec11 tive annual allocation of capital costs to the 

12 contractors exercising contract conversions 

13 under this subsection of less than $5,000,000. 

14 If such amount is $5,000,000 or greater, such 

15 cost shall be repaid as provided by applicable 

16 Reclamation law, provided that the reference to 

17 the amount of $5,000,000 shall not be a prece18 dent in any other context; and 

19 (C) provide that power revenues will not be 

20 available to aid in repayment of construction 

21 costs allocated to irrigation under the contract. 

22 (4) All contracts entered into pursuant to para23 graph (2) shall— 

24 (A) require the repayment in lump sum of 

25 the remaining amount of construction costs 


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1 identified in the most current version of the 

2 Central Valley Project Schedule of Municipal 

3 and Industrial Water Rates, as adjusted to re4 flect payments not reflected in such schedule, 

5 and properly assignable for ultimate return by 

6 the contractor, no later than January 31, 2016. 

7 An estimate of the remaining amount of con8 struction costs as of January 31, 2016, as ad9 justed, shall be provided by the Secretary of the 

10 Interior to each contractor no later than 180 

11 days after enactment; and 

12 (B) require that, notwithstanding sub13 section (c)(2), construction costs or other cap14 italized costs incurred after the effective date of 

15 the contract or not reflected in the schedule ref16 erenced in subparagraph (A), and properly as17 signable to such contractor, shall be repaid in 

18 not more than 5 years after notification of the 

19 allocation if such amount is a result of a collec20 tive annual allocation of capital costs to the 

21 contractors exercising contract conversions 

22 under this subsection of less than $5,000,000. 

23 If such amount is $5,000,000 or greater, such 

24 cost shall be repaid as provided by applicable 

25 Reclamation law, provided that the reference to 


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1 the amount of $5,000,000 shall not be a prece2 dent in any other context. 

3 (b) FINAL ADJUSTMENT.—The amounts paid pursu4 ant to subsection (a) shall be subject to adjustment fol5 lowing a final cost allocation by the Secretary of the Inte6 rior upon completion of the construction of the Central 

7 Valley Project. In the event that the final cost allocation 

8 indicates that the costs properly assignable to the con9 tractor are greater than what has been paid by the con10 tractor, the contractor shall be obligated to pay the re11 maining allocated costs. The term of such additional re12 payment contract shall be no less than 1 year and no more 

13 than 10 years, however, mutually agreeable provisions re14 garding the rate of repayment of such amount may be de15 veloped by the parties. In the event that the final cost allo16 cation indicates that the costs properly assignable to the 

17 contractor are less than what the contractor has paid, the 

18 Secretary of the Interior is authorized and directed to 

19 credit such overpayment as an offset against any out20 standing or future obligation of the contractor. 

21 (c) APPLICABILITY OF CERTAIN PROVISIONS.— 

22 (1) Notwithstanding any repayment obligation 

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

24 contractor’s compliance with and discharge of the 

25 obligation of repayment of the construction costs as 


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1 provided in subsection (a)(3)(A), the ownership and 

2 full-cost pricing limitations of any provision of Fed3 eral Reclamation Law shall not apply to lands in 

4 such district. 

5 (2) Notwithstanding any repayment obligation 

6 under paragraph (3)(B) or paragraph (4)(B) of sub7 section (a), or subsection (b), upon a contractor’s 

8 compliance with and discharge of the obligation of 

9 repayment of the construction costs as provided in 

10 paragraphs (3)(A) and (4)(A) of subsection (a), the 

11 Secretary of the Interior shall waive the pricing pro12 visions of section 3405(d) of the Reclamation 

13 Projects Authorization and Adjustment Act of 1992 

14 (Public Law 102–575) for such contractor, provided 

15 that such contractor shall continue to pay applicable 

16 operation and maintenance costs and other charges 

17 applicable to such repayment contracts pursuant to 

18 the then-current rate-setting policy and applicable 

19 law. 

20 (d) CERTAIN REPAYMENT OBLIGATIONS NOT AL21 TERED.—Implementation of the provisions of this section 

22 shall not alter the repayment obligation of any other long23 term water service or repayment contractor receiving 

24 water from the Central Valley Project, or shift any costs 

25 that would otherwise have been properly assignable to any 


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1 contractors absent this section, including operations and 

2 maintenance costs, construction costs, or other capitalized 

3 costs incurred after the date of enactment of this Act, to 

4 other such contractors. 

5 (e) STATUTORY INTERPRETATION.—Nothing in this 

6 part shall be construed to affect the right of any long7 term contractor to use a particular type of financing to 

8 make the payments required in paragraph (3)(A) or para9 graph (4)(A) of subsection (a). 

Æ 


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