112TH CONGRESS 

2D SESSION H. R. 1837 

AN ACT 

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, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Sacramento-San Joaquin Valley Water Reliability Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; 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. 

Sec. 402. Sacramento River settlement contracts. 

Sec. 403. Sacramento River Watershed Water Service Contractors. 

Sec. 404. No redirected adverse impacts. 
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TITLE V—MISCELLANEOUS 

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 

7 the end; and 

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

9 ‘‘(g) to ensure that water dedicated to fish and wild10 life purposes by this title is replaced and provided to Cen11 tral Valley Project water contractors by December 31, 

12 2016, at 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 

23 and San Joaquin Rivers and their tributaries and ascend 
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1 those rivers and their tributaries to reproduce after matur2 ing in San Francisco Bay or the Pacific Ocean;’’; 

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

4 (3) in subsection (m), by striking the period 

5 and inserting ‘‘; and’’, and 

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

7 ‘‘(n) the term ‘reasonable flows’ means water flows 

8 capable of being maintained taking into account com9 peting consumptive uses of water and economic, environ10 mental, and social factors.’’. 

11 SEC. 103. CONTRACTS. 

12 Section 3404 of the Central Valley Project Improve13 ment Act (106 Stat. 4708) is amended— 

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

15 ON CONTRACTING AND CONTRACT REFORM’’ 

16 and inserting ‘‘CONTRACTS’’; and 

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

18 by adding: 

19 ‘‘(a) RENEWAL OF EXISTING LONG-TERM CON20 TRACTS.—Upon request of the contractor, the Secretary 

21 shall renew any existing long-term repayment or water 

22 service contract that provides for the delivery of water 

23 from the Central Valley Project for a period of 40 years. 

24 ‘‘(b) ADMINISTRATION OF CONTRACTS.—Except as 

25 expressly provided by this Act, any existing long-term re-
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1 payment or water service contract for the delivery of water 

2 from the Central Valley Project shall be administered pur3 suant to the Act of July 2, 1956 (70 Stat. 483). 

4 ‘‘(c) DELIVERY CHARGE.—Beginning on the date of 

5 the enactment of this Act, a contract entered into or re6 newed pursuant to this section shall include a provision 

7 that requires the Secretary to charge the other party to 

8 such contract only for water actually delivered by the Sec9 retary.’’. 

10 SEC. 104. WATER TRANSFERS, IMPROVED WATER MANAGE11 MENT, AND CONSERVATION. 

12 Section 3405 of the Central Valley Project Improve13 ment Act (106 Stat. 4709) is amended as follows: 

14 (1) In subsection (a)— 

15 (A) by inserting before ‘‘Except as pro16 vided herein’’ the following: ‘‘The Secretary 

17 shall take all necessary actions to facilitate and 

18 expedite transfers of Central Valley Project 

19 water in accordance with this Act or any other 

20 provision of Federal reclamation law and the 

21 National Environmental Policy Act of 1969.’’; 

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

23 combination’’ and inserting ‘‘or combination’’; 

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

25 the following: 
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1 ‘‘(E) The contracting district from which 

2 the water is coming, the agency, or the Sec3 retary shall determine if a written transfer pro4 posal is complete within 45 days after the date 

5 of submission of such proposal. If such district 

6 or agency or the Secretary determines that such 

7 proposal is incomplete, such district or agency 

8 or the Secretary shall state with specificity 

9 what must be added to or revised in order for 

10 such proposal to be complete. 

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

12 the Secretary shall not impose mitigation or 

13 other requirements on a proposed transfer, but 

14 the contracting district from which the water is 

15 coming or the agency shall retain all authority 

16 under State law to approve or condition a pro17 posed transfer.’’; and 

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

19 ‘‘(4) Notwithstanding any other provision of 

20 Federal reclamation law— 

21 ‘‘(A) the authority to make transfers or ex22 changes of, or banking or recharge arrange23 ments using, Central Valley Project water that 

24 could have been conducted before October 30, 

25 1992, is valid, and such transfers, exchanges, 
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1 or arrangements shall not be subject to, limited, 

2 or conditioned by this title; and 

3 ‘‘(B) this title shall not supersede or re4 voke the authority to transfer, exchange, bank, 

5 or recharge Central Valley Project water that 

6 existed prior to October 30, 1992.’’. 

7 (2) In subsection (b)— 

8 (A) in the heading, by striking ‘‘METER9 ING’’ and inserting ‘‘MEASUREMENT’’; and 

10 (B) by inserting after the first sentence 

11 the following: ‘‘The contracting district or agen12 cy, not including contracting districts serving 

13 multiple agencies with separate governing 

14 boards, shall ensure that all contractor-owned 

15 water delivery systems within its boundaries 

16 measure surface water at the district or agen17 cy’s facilities up to the point the surface water 

18 is commingled with other water supplies.’’. 

19 (3) By striking subsection (d). 

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

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

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

23 by paragraph (4))— 
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1 (A) by striking ‘‘as a result of the in2 creased repayment’’ and inserting ‘‘that exceed 

3 the cost-of-service’’; 

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

5 ‘‘rates applicable to’’; and 

6 (C) by striking ‘‘, and all increased reve7 nues received by the Secretary as a result of the 

8 increased water prices established under sub9 section 3405(d) of this section,’’. 

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

11 Section 3406 of the Central Valley Project Improve12 ment Act (106 Stat. 4714) is amended as follows: 

13 (1) In subsection (b)— 

14 (A) in paragraph (1)(B)— 

15 (i) by striking ‘‘is authorized and di16 rected to’’ and inserting ‘‘may’’; 

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

18 after ‘‘to provide’’; 

19 (iii) by striking ‘‘anadromous fish, ex20 cept that such’’ and inserting ‘‘anad21 romous fish. Such’’; 

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

23 inserting ‘‘Reasonable instream flow’’; 
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1 (v) by inserting ‘‘and the National 

2 Marine Fisheries Service’’ after ‘‘United 

3 States Fish and Wildlife Service’’; and 

4 (vi) by striking ‘‘California Depart5 ment of Fish and Game’’ and inserting 

6 ‘‘United States Geological Survey’’; 

7 (B) in paragraph (2)— 

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

9 inserting ‘‘purposes’’; 

10 (ii) by striking ‘‘but not limited to’’ 

11 before ‘‘additional obligations’’; and 

12 (iii) by adding after the period the fol13 lowing: ‘‘All Central Valley Project water 

14 used for the purposes specified in this 

15 paragraph shall be credited to the quantity 

16 of Central Valley Project yield dedicated 

17 and managed under this paragraph by de18 termining how the dedication and manage19 ment of such water would affect the deliv20 ery capability of the Central Valley Project 

21 during the 1928 to 1934 drought period 

22 after fishery, water quality, and other flow 

23 and operational requirements imposed by 

24 terms and conditions existing in licenses, 

25 permits, and other agreements pertaining 
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1 to the Central Valley Project under appli2 cable State or Federal law existing on Oc3 tober 30, 1992, have been met. To the full4 est extent possible and in accordance with 

5 section 3411, Central Valley Project water 

6 dedicated and managed pursuant to this 

7 paragraph shall be reused to fulfill the 

8 Secretary’s remaining contractual obliga9 tions to provide Central Valley Project 

10 water for agricultural or municipal and in11 dustrial purposes.’’; 

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

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

14 quantity of Central Valley Project water fore15 casted to be made available to water service or 

16 repayment contractors in the Delta Division of 

17 the Central Valley Project is below 75 percent 

18 of the total quantity of water to be made avail19 able under said contracts, the quantity of Cen20 tral Valley Project yield dedicated and managed 

21 for that year under this paragraph shall be re22 duced by 25 percent.’’. 

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

24 ‘‘(i) SATISFACTION OF PURPOSES.— 

25 By pursuing the activities described in this 
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1 section, the Secretary shall be deemed to 

2 have met the mitigation, protection, res3 toration, and enhancement purposes of this 

4 title.’’. 

5 SEC. 106. RESTORATION FUND. 

6 (a) IN GENERAL.—Section 3407(a) of the Central 

7 Valley Project Improvement Act (106 Stat. 4726) is 

8 amended as follows: 

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

10 ‘‘There is hereby’’. 

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

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

13 ‘‘Monies’’. 

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

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

16 or indirectly require a donation or other payment to the 

17 Restoration Fund— 

18 ‘‘(A) or environmental restoration or mitigation 

19 fees not otherwise provided by law, as a condition 

20 to— 

21 ‘‘(i) providing for the storage or convey22 ance of non-Central Valley Project water pursu23 ant to Federal reclamation laws; or 
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1 ‘‘(ii) the delivery of water pursuant to sec2 tion 215 of the Reclamation Reform Act of 

3 1982 (Public Law 97–293; 96 Stat. 1270); or 

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

5 sole intent of groundwater recharge.’’. 

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

7 Central Valley Project Improvement Act is amended— 

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

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

10 (3) by striking ‘‘of fish, wildlife’’ and all that 

11 follows through the period and inserting ‘‘of carrying 

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

13 (c) ADJUSTMENT AND ASSESSMENT OF MITIGATION

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

15 the Central Valley Project Improvement Act is amended 

16 by inserting ‘‘, or after October 1, 2013, $4 per megawatt17 hour for Central Valley Project power sold to power con18 tractors (October 2013 price levels)’’ after ‘‘$12 per acre19 foot (October 1992 price levels) for municipal and indus20 trial water sold and delivered by the Central Valley 

21 Project’’. 

22 (d) COMPLETION OF ACTIONS.—Section 

23 3407(d)(2)(A) of the Central Valley Project Improvement 

24 Act is amended by inserting ‘‘no later than December 31, 

25 2020,’’ after ‘‘That upon the completion of the fish, wild-
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1 life, and habitat mitigation and restoration actions man2 dated under section 3406 of this title,’’. 

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

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

5 is amended by adding at the end the following: 

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

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

8 the Restoration Fund Advisory Board, shall submit to 

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

10 deposited into the Restoration Fund during the preceding 

11 fiscal year. Such plan shall contain a cost-effectiveness 

12 analysis of each expenditure. 

13 ‘‘(h) ADVISORY BOARD.— 

14 ‘‘(1) ESTABLISHMENT.—There is hereby estab15 lished the Restoration Fund Advisory Board (herein16 after in this section referred to as the ‘Advisory 

17 Board’) composed of 12 members selected by the 

18 Secretary, each for four-year terms, one of whom 

19 shall be designated by the Secretary as Chairman. 

20 The members shall be selected so as to represent the 

21 various Central Valley Project stakeholders, four of 

22 whom shall be from CVP agricultural users, three 

23 from CVP municipal and industrial users, three 

24 from CVP power contractors, and two at the discre25 tion of the Secretary. The Secretary and the Sec-
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1 retary of Commerce may each designate a represent2 ative to act as an observer of the Advisory Board. 

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

4 Board are as follows: 

5 ‘‘(A) To meet at least semiannually to de6 velop and make recommendations to the Sec7 retary regarding priorities and spending levels 

8 on projects and programs carried out pursuant 

9 to the Central Valley Project Improvement Act. 

10 ‘‘(B) To ensure that any advice or rec11 ommendation made by the Advisory Board to 

12 the Secretary reflect the independent judgment 

13 of the Advisory Board. 

14 ‘‘(C) Not later than December 31, 2013, 

15 and annually thereafter, to transmit to the Sec16 retary and Congress recommendations required 

17 under subparagraph (A). 

18 ‘‘(D) Not later than December 31, 2013, 

19 and biennially thereafter, to transmit to Con20 gress a report that details the progress made in 

21 achieving the actions mandated under section 

22 3406 of this title. 

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

24 the appropriate agency head, the Advisory Board 
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1 may use the facilities and services of any Federal 

2 agency.’’. 

3 SEC. 107. ADDITIONAL AUTHORITIES. 

4 (a) AUTHORITY FOR CERTAIN ACTIVITIES.—Section 

5 3408(c) of the Central Valley Project Improvement Act 

6 (106 Stat. 4728) is amended to read as follows: 

7 ‘‘(c) CONTRACTS FOR ADDITIONAL STORAGE AND

8 DELIVERY OF WATER.— 

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

10 to enter into contracts pursuant to Federal reclama11 tion law and this title with any Federal agency, Cali12 fornia water user or water agency, State agency, or 

13 private organization for the exchange, impoundment, 

14 storage, carriage, and delivery of nonproject water 

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

16 and any other beneficial purpose. 

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

18 shall be deemed to supersede the provisions of sec19 tion 103 of Public Law 99–546 (100 Stat. 3051). 

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

21 The Secretary shall use the authority granted by 

22 this subsection in connection with requests to ex23 change, impound, store, carry, or deliver nonproject 

24 water using Central Valley Project facilities for any 

25 beneficial purpose. 
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1 ‘‘(4) RATES.—The Secretary shall develop rates 

2 not to exceed the amount required to recover the 

3 reasonable costs incurred by the Secretary in con4 nection with a beneficial purpose under this sub5 section. Such rates shall be charged to a party using 

6 Central Valley Project facilities for such purpose. 

7 Such costs shall not include any donation or other 

8 payment to the Restoration Fund. 

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

10 construed and implemented to facilitate and encour11 age the use of Central Valley Project facilities to ex12 change, impound, store, carry, or deliver nonproject 

13 water for any beneficial purpose.’’. 

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

15 the Central Valley Project Improvement Act (106 Stat. 

16 4729) is amended— 

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

18 and the Committee on Merchant Marine and Fish19 eries’’ and inserting ‘‘Natural Resources’’; 

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

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

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

23 (3) by adding at the end the following: ‘‘The fil24 ing and adequacy of such report shall be personally 

25 certified to the Committees referenced above by the 
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1 Regional Director of the Mid-Pacific Region of the 

2 Bureau of Reclamation.’’. 

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

4 the Central Valley Project Improvement Act (106 Stat. 

5 4730) is amended as follows: 

6 (1) By redesignating paragraphs (1) through 

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

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

9 effects, if any, upon’’ and inserting ‘‘(1) IN GEN10 ERAL.—In order to minimize adverse effects upon’’. 

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

12 that follows through ‘‘submit to the Congress, a’’ 

13 and inserting ‘‘needs, the Secretary, on a priority 

14 basis and not later than September 30, 2013, shall 

15 submit to Congress a’’. 

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

17 through ‘‘options:’’ and inserting ‘‘increase, as soon 

18 as possible but not later than September 30, 2016 

19 (except for the construction of new facilities which 

20 shall not be limited by that deadline), the water of 

21 the Central Valley Project by the amount dedicated 

22 and managed for fish and wildlife purposes under 

23 this title and otherwise required to meet the pur24 poses of the Central Valley Project including satis25 fying contractual obligations. The plan required by 
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1 this subsection shall include recommendations on ap2 propriate cost-sharing arrangements and authorizing 

3 legislation or other measures needed to implement 

4 the intent, purposes, and provisions of this sub5 section and a description of how the Secretary in6 tends to use the following options—’’. 

7 (5) In subparagraph (A), by inserting ‘‘and 

8 construction of new water storage facilities’’ before 

9 the semicolon. 

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

11 the end. 

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

13 and all that follows through the end of the sub14 section and inserting ‘‘; and’’. 

15 (8) By inserting after subparagraph (G) the fol16 lowing: 

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

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

19 ‘‘(2) IMPLEMENTATION OF PLAN.—The Sec20 retary shall implement the plan required by para21 graph (1) commencing on October 1, 2013. In order 

22 to carry out this subsection, the Secretary shall co23 ordinate with the State of California in imple24 menting measures for the long-term resolution of 
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1 problems in the San Francisco Bay/Sacramento-San 

2 Joaquin Delta Estuary. 

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

4 any other provision of Federal reclamation law, if by 

5 September 30, 2016, the plan required by paragraph 

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

7 the Central Valley Project by 800,000 acre-feet, im8 plementation of any non-mandatory action under 

9 section 3406(b)(2) shall be suspended until the plan 

10 achieves an increase in the annual delivery capability 

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

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

13 the Central Valley Project Improvement Act (106 Stat. 

14 4729) is amended— 

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

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

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

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

19 (e) WATER STORAGE PROJECT CONSTRUCTION.— 

20 The Secretary, acting through the Commissioner of the 

21 Bureau of Reclamation, may partner or enter into an 

22 agreement on the water storage projects identified in sec23 tion 103(d)(1) of the Water Supply Reliability, and Envi24 ronmental Improvement Act (Public Law 108–361)(and 

25 Acts supplemental and amendatory to the Act) with local 
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1 joint powers authorities formed pursuant to State law by 

2 irrigation districts and other local water districts and local 

3 governments within the applicable hydrologic region, to 

4 advance these projects. No additional Federal funds are 

5 authorized for the activities authorized in sections 

6 103(d)(1)(A)(i), 103(d)(1)(A)(ii), and 103(d)(1)(A)(iii) of 

7 Public Law 108–361. However, each water storage project 

8 under sections 103(d)(1)(A)(i), 103(d)(1)(A)(ii), and 

9 103(d)(1)(A)(iii) of Public Law 108–361 is authorized for 

10 construction if non-Federal funds are used for financing 

11 and constructing the project. 

12 SEC. 108. BAY-DELTA ACCORD. 

13 (a) CONGRESSIONAL DIRECTION REGARDING CEN14 TRAL VALLEY PROJECT AND CALIFORNIA STATE WATER

15 PROJECT OPERATIONS.—The Central Valley Project and 

16 the State Water Project shall be operated pursuant to the 

17 water quality standards and operational constraints de18 scribed in the ‘‘Principles for Agreement on the Bay-Delta 

19 Standards Between the State of California and the Fed20 eral Government’’ dated December 15, 1994, and such op21 erations shall proceed without regard to the Endangered 

22 Species Act of 1973 (16 U.S.C. 1531 et seq.) or any other 

23 law pertaining to the operation of the Central Valley 

24 Project and the California State Water Project. Imple25 mentation of this section shall be in strict conformance 
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1 with the ‘‘Principles for Agreement on the Bay-Delta 

2 Standards Between the State of California and the Fed3 eral Government’’ dated December 15, 1994. 

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

5 Federal department nor the State of California, including 

6 any agency or board of the State of California, shall im7 pose on any water right obtained pursuant to State law, 

8 including a pre-1914 appropriative right, any condition 

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

10 conserve, enhance, recover or otherwise protect any species 

11 that is affected by operations of the Central Valley Project 

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

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

14 California, restrict the exercise of any water right obtained 

15 pursuant to State law, including a pre-1914 appropriative 

16 right, in order to protect, enhance, or restore under the 

17 Public Trust Doctrine any public trust value. Implementa18 tion of the ‘‘Principles for Agreement on the Bay-Delta 

19 Standards Between the State of California and the Fed20 eral Government’’ dated December 15, 1994, shall be in 

21 strict compliance with the water rights priority system and 

22 statutory protections for areas of origin. 

23 (c) COSTS.—No cost associated with the implementa24 tion of this section shall be imposed directly or indirectly 

25 on any Central Valley Project contractor, or any other per-
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1 son or entity, unless such costs are incurred on a voluntary 

2 basis. 

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

4 preempted with respect to any restriction on the quantity 

5 or size of nonnative fish taken or harvested that preys 

6 upon one or more native fish species that occupy the Sac7 ramento and San Joaquin Rivers and their tributaries or 

8 the Sacramento-San Joaquin Rivers Delta. 

9 SEC. 109. NATURAL AND ARTIFICIALLY SPAWNED SPECIES. 

10 After the date of the enactment of this title, and re11 gardless of the date of listing, the Secretaries of the Inte12 rior and Commerce shall not distinguish between natural13 spawned and hatchery-spawned or otherwise artificially 

14 propagated strains of a species in making any determina15 tion under the Endangered Species Act of 1973 (16 

16 U.S.C. 1531 et seq.) that relates to any anadromous fish 

17 species present in the Sacramento and San Joaquin Rivers 

18 or their tributaries and ascend those rivers and their trib19 utaries to reproduce after maturing in San Francisco Bay 

20 or the Pacific Ocean. 

21 SEC. 110. AUTHORIZED SERVICE AREA. 

22 The authorized service area of the Central Valley 

23 Project shall include the area within the boundaries of the 

24 Kettleman City Community Services District, California, 

25 as those boundaries exist on the date of the enactment 
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1 of this title. Notwithstanding the provisions of the Act of 

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

3 et seq.), upon enactment of this title, the Secretary is au4 thorized and directed to enter into a long-term contract 

5 in accordance with the reclamation laws with the 

6 Kettleman City Community Services District, California, 

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

8 Project water for municipal and industrial use. The Sec9 retary may temporarily reduce deliveries of the quantity 

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

11 such total whenever reductions due to hydrologic cir12 cumstances are imposed upon agricultural deliveries of 

13 Central Valley Project water. If any additional infrastruc14 ture or related-costs are needed to implement this section, 

15 such costs shall be the responsibility of the non-Federal 

16 entity. 

17 SEC. 111. REGULATORY STREAMLINING. 

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

19 Notice of Determination or a Notice of Exemption for any 

20 project, including the issuance of a permit under State 

21 law, related to any project of the CVP or the delivery of 

22 water therefrom in accordance with the California Envi23 ronmental Quality Act shall be deemed to meet the re24 quirements of section 102(2)(C) of the National Environ-
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1 mental Protection Act of 1969 (42 U.S.C. 4332(2)(C)) for 

2 that project or permit. 

3 (b) CONTINUATION OF PROJECT.—The Bureau of 

4 Reclamation shall not be required to cease or modify any 

5 major Federal action or other activity related to any 

6 project of the CVP or the delivery of water there from 

7 pending completion of judicial review of any determination 

8 made under the National Environmental Protection Act 

9 of 1969 (42 U.S.C. 4332(2)(C)). 

10 (c) PROJECT DEFINED.—For the purposes of this 

11 section: 

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

13 Valley Project. 

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

15 (A) means an activity that— 

16 (i) is undertaken by a public agency, 

17 funded by a public agency, or that requires 

18 an issuance of a permit by a public agency; 

19 (ii) has a potential to result in phys20 ical change to the environment; and 

21 (iii) may be subject to several discre22 tionary approvals by governmental agen23 cies; 

24 (B) may include construction activities, 

25 clearing or grading of land, improvements to 
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1 existing structures, and activities or equipment 

2 involving the issuance of a permit; or 

3 (C) as defined under the California Envi4 ronmental Quality Act in section 21065 of the 

5 California Public Resource Code. 

6 TITLE II—SAN JOAQUIN RIVER 

7 RESTORATION 

8 SEC. 201. REPEAL OF THE SAN JOAQUIN RIVER SETTLE9 MENT. 

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

11 shall cease any action to implement the Stipulation of Set12 tlement (Natural Resources Defense Council, et al. v. Kirk 

13 Rodgers, et al., Eastern District of California, No. Civ. 

14 S–88–1658 LKK/GGH). 

15 SEC. 202. PURPOSE. 

16 Section 10002 of the San Joaquin River Restoration 

17 Settlement Act (Public Law 111–11) is amended by strik18 ing ‘‘implementation of the Settlement’’ and inserting 

19 ‘‘restoration of the San Joaquin River’’. 

20 SEC. 203. DEFINITIONS. 

21 Section 10003 of the San Joaquin River Restoration 

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

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

24 following: 
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1 ‘‘(1) The term ‘Restoration Flows’ means the 

2 additional water released or bypassed from Friant 

3 Dam to insure that the target flow entering 

4 Mendota Pool, located approximately 62 river miles 

5 downstream from Friant Dam, does not fall below 

6 50 cubic feet per second.’’; 

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

8 following: 

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

10 through the last day of February of the following 

11 Calendar Year, both dates inclusive.’’; and 

12 (3) by adding at the end the following new 

13 paragraph: 

14 ‘‘(4) The term ‘Critical Water Year’ means 

15 when the total unimpaired runoff at Friant Dam is 

16 less than 400,000 acre-feet, as forecasted as of 

17 March 1 of that water year by the California De18 partment of Water Resources.’’. 

19 SEC. 204. IMPLEMENTATION OF RESTORATION. 

20 Section 10004 of the San Joaquin River Restoration 

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

22 (1) in subsection (a)— 

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

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

25 that follows through ‘‘in the Settlement:’’ and 
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1 inserting ‘‘authorized to carry out the fol2 lowing:’’; 

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

4 and (5); 

5 (C) in paragraph (3)— 

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

7 ‘‘(1)’’; and 

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

9 Settlement’’ and inserting ‘‘this part’’; and 

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

11 paragraphs: 

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

13 Water Year starting on March 1, 2013— 

14 ‘‘(A) shall modify Friant Dam operations 

15 so as to release the Restoration Flows for that 

16 Water Year, except in any Critical Water Year; 

17 ‘‘(B) shall ensure that the release of Res18 toration Flows are maintained at the level pre19 scribed by this part, but that Restoration Flows 

20 do not reach downstream of Mendota Pool; 

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

22 a manner that improves the fishery in the San 

23 Joaquin River below Friant Dam, but upstream 

24 of Gravelly Ford in existence as of the date of 
28 

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1 the enactment of this part, and the associated 

2 riparian habitat; and 

3 ‘‘(D) may, without limiting the actions re4 quired under paragraphs (A) and (C) and sub5 ject to subsections 10004(a)(3) and 10004(l), 

6 use the Restoration Flows to enhance or restore 

7 a warm water fishery downstream of Gravelly 

8 Ford to and including Mendota Pool, if the Sec9 retary determines that it is reasonable, prudent, 

10 and feasible to do so; and 

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

12 enactment of this section, the Secretary shall develop 

13 and implement, in cooperation with the State of 

14 California, a reasonable plan, to fully recirculate, re15 capture, reuse, exchange, or transfer all Restoration 

16 Flows and provide such recirculated, recaptured, re17 used, exchanged, or transferred flows to those con18 tractors within the Friant Division, Hidden Unit, 

19 and Buchanan Unit of the Central Valley Project 

20 that relinquished the Restoration Flows so recir21 culated, recaptured, reused, exchanged, or trans22 ferred. Such a plan shall address any impact on 

23 ground water resources within the service area of 

24 the Friant Division, Hidden Unit, and Buchanan 

25 Unit of the Central Valley Project and mitigation 
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1 may include ground water banking and recharge 

2 projects. Such a plan shall not impact the water 

3 supply or water rights of any entity outside the 

4 Friant Division, Hidden unit, and Buchanan Unit of 

5 the Central Valley Project. Such a plan shall be sub6 ject to applicable provisions of California water law 

7 and the Secretary’s use of Central Valley Project fa8 cilities to make Project water (other than water re9 leased from Friant Dam pursuant to this part) and 

10 water acquired through transfers available to exist11 ing south-of-Delta Central Valley Project contrac12 tors.’’; 

13 (2) in subsection (b)— 

14 (A) in paragraph (1), by striking ‘‘the Set15 tlement’’ and inserting ‘‘this part’’; and 

16 (B) in paragraph (2), by striking ‘‘the Set17 tlement’’ and inserting ‘‘this part’’; 

18 (3) in subsection (c), by striking ‘‘the Settle19 ment’’ and inserting ‘‘this part’’; 

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

21 following: 

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

23 2013, the Secretary shall identify— 

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

25 Restoration Flows prescribed in this part; 
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1 ‘‘(2) the measures which shall be implemented 

2 to mitigate impacts on adjacent and downstream 

3 water users, landowners and agencies as a result of 

4 Restoration Flows prescribed in this part; and 

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

6 agreements to construct, improve, operate, or main7 tain facilities that the Secretary determines are 

8 needed to implement this part, the Secretary shall 

9 implement all mitigations measures identified in sub10 section (d)(2) before Restoration Flows are com11 menced.’’; 

12 (5) in subsection (e), by striking ‘‘the Settle13 ment’’ and inserting ‘‘this part’’; 

14 (6) in subsection (f), by striking ‘‘the Settle15 ment’’ and all that follows through ‘‘section 10011’’ 

16 and insert ‘‘this part’’; 

17 (7) in subsection (g)— 

18 (A) by striking ‘‘the Settlement and’’ be19 fore this part; and 

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

21 inserting ‘‘exchange contract, or water rights 

22 settlement or holding contracts’’; 

23 (8) in subsection (h)— 

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

25 (B) in paragraph (1)— 
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1 (i) in the matter preceding subpara2 graph (A), by striking ‘‘Interim Flows 

3 under the Settlement’’ and inserting ‘‘Res4 toration Flows under this part’’; 

5 (ii) in subparagraph (C)— 

6 (I) in clause (i), by striking ‘‘In7 terim’’ and inserting ‘‘Restoration’’; 

8 and 

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

10 ‘‘and’’ after the semicolon; 

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

12 ‘‘and’’ at the end; and 

13 (iv) by striking subparagraph (E); 

14 (C) in paragraph (2)— 

15 (i) by striking ‘‘Interim’’ and insert16 ing ‘‘Restoration’’; 

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

18 (iii) by striking ‘‘(B) exceed’’ and in19 serting ‘‘exceed’’; 

20 (D) in paragraph (3), by striking ‘‘In21 terim’’ and inserting ‘‘Restoration’’; and 

22 (E) by striking paragraph (4) and insert23 ing the following: 

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

25 this Act the Secretary shall promulgate a rule estab-
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1 lishing a claims process to address current and fu2 ture claims including, but not limited to, ground 

3 water seepage, flooding, or levee instability damages 

4 caused as a result of, arising out of, or related to 

5 implementation of subtitle A of title X of Public 

6 Law 111–11.’’; 

7 (9) in subsection (i)— 

8 (A) in paragraph (1)— 

9 (i) in the matter preceding subpara10 graph (A), by striking ‘‘the Settlement and 

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

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

13 ‘‘and’’ after the semicolon; 

14 (iii) in subparagraph (B)— 

15 (I) by striking ‘‘additional 

16 amounts authorized to be appro17 priated, including the’’; and 

18 (II) by striking ‘‘; and’’ and in19 serting a period; and 

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

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

22 (10) by adding at the end the following new 

23 subsections: 

24 ‘‘(k) NO IMPACTS ON OTHER INTERESTS.—No Cen25 tral Valley Project or other water other than San Joaquin 
33 

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1 River water impounded by or bypassed from Friant Dam 

2 shall be used to implement subsection (a)(2) unless such 

3 use is on a voluntary basis. No cost associated with the 

4 implementation of this section shall be imposed directly 

5 or indirectly on any Central Valley Project contractor, or 

6 any other person or entity, outside the Friant Division, 

7 the Hidden Unit, or the Buchanan Unit, unless such costs 

8 are incurred on a voluntary basis. The implementation of 

9 this part shall not result directly or indirectly in any re10 duction in water supplies or water reliability on any Cen11 tral Valley Project contractor, any State Water Project 

12 contractor, or any other person or entity, outside the 

13 Friant Division, the Hidden Unit, or the Buchanan Unit, 

14 unless such reductions or costs are incurred on a voluntary 

15 basis. 

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

17 shall be subordinate to the Secretary’s use of Central Val18 ley Project facilities to make Project water available to 

19 Project contractors, other than water released from the 

20 Friant Dam pursuant to this part. 

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

22 the Reclamation Act of 1902, except as provided in this 

23 part, including title IV of the Sacramento and San Joa24 quin Valleys Water Reliability Act, this part preempts and 

25 supersedes any State law, regulation, or requirement that 
34 

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1 imposes more restrictive requirements or regulations on 

2 the activities authorized under this part. Nothing in this 

3 part shall alter or modify the obligations, if any, of the 

4 Friant Division, Hidden Unit, and Buchanan Unit of the 

5 Central Valley Project, or other water users on the San 

6 Joaquin River or its tributaries, under orders issued by 

7 the State Water Resources Control Board pursuant to the 

8 Porter-Cologne Water Quality Control Act (California 

9 Water Code sections 13000 et seq.). Any such order shall 

10 be consistent with the congressional authorization for any 

11 affected Federal facility as it pertains to the Central Val12 ley Project. 

13 ‘‘(n) PROJECT IMPLEMENTATION.—Projects to im14 plement this title shall be phased such that each project 

15 shall follow the sequencing identified below and include at 

16 least the— 

17 ‘‘(1) project purpose and need; 

18 ‘‘(2) identification of mitigation measures; 

19 ‘‘(3) appropriate environmental review; and 

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

21 this part, the Secretary shall— 

22 ‘‘(A) complete the implementation of miti23 gation measures required; and 

24 ‘‘(B) complete implementation of the 

25 project.’’. 
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1 SEC. 205. DISPOSAL OF PROPERTY; TITLE TO FACILITIES. 

2 Section 10005 of the San Joaquin River Restoration 

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

4 (1) in subsection (a), by striking ‘‘the Settle5 ment authorized by this part’’ and inserting ‘‘this 

6 part’’; 

7 (2) in subsection (b)— 

8 (A) in paragraph (1)— 

9 (i) by striking ‘‘(1) IN GENERAL.— 

10 The Secretary’’ and inserting ‘‘The Sec11 retary’’; and 

12 (ii) by striking ‘‘the Settlement au13 thorized by this part’’ and inserting ‘‘this 

14 part’’; and 

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

16 (3) in subsection (c)— 

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

19 (B) in paragraph (2)— 

20 (i) by striking ‘‘through the exercise 

21 of its eminent domain authority’’; and 

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

23 inserting ‘‘this part’’; and 

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

25 10009(c)’’ and inserting ‘‘section 10009’’. 
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1 SEC. 206. COMPLIANCE WITH APPLICABLE LAW. 

2 Section 10006 of the San Joaquin River Restoration 

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

4 (1) in subsection (a)— 

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

6 otherwise provided by this part’’ before the pe7 riod at the end; and 

8 (B) in paragraph (2), by striking ‘‘the Set9 tlement’’ and inserting ‘‘this part’’; 

10 (2) in subsection (b), by inserting ‘‘, unless oth11 erwise provided by this part’’ before the period at 

12 the end; 

13 (3) in subsection (c)— 

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

15 10004’’ and inserting ‘‘this part’’; and 

16 (B) in paragraph (3), by striking ‘‘the Set17 tlement’’ and inserting ‘‘this part’’; and 

18 (4) in subsection (d)— 

19 (A) by inserting ‘‘, including without limi20 tation to sections 10004(d) and 10004(h)(4) of 

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

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

23 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 in7 serting ‘‘enactment of this part’’; and 

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

9 the Secretary and all other parties to protect 

10 and keep in good condition any fish that may 

11 be planted or exist below Friant Dam including 

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

14 trust doctrine, and those of the Secretary and 

15 all other parties under the Endangered Species 

16 Act of 1973 (16 U.S.C. 1531 et seq.).’’ before 

17 ‘‘, provided’’; 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 

26 period and inserting ‘‘unless otherwise provided by 
38 

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1 this part. Any Central Valley Project long-term 

2 water service or repayment contractor within the 

3 Friant Division, Hidden unit, or Buchanan Unit ad4 versely affected by the Secretary’s failure to comply 

5 with section 10004(a)(3) of this part may bring an 

6 action against the Secretary for injunctive relief or 

7 damages, 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’’ the 

16 first place it appears and inserting ‘‘this 

17 part’’; 

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

19 and all that follows through ‘‘subsection 

20 (b)(1),’’; and 

21 (iii) by striking ‘‘provided however,’’ 

22 and all that follows through 

23 ‘‘$110,000,000 of State funds’’; 

24 (B) in paragraph (2)— 
39 

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

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

3 inserting ‘‘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’’; 

8 and 

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

10 inserting ‘‘this part’’; 

11 (3) in subsection (b)(1)— 

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

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

14 (B) by striking ‘‘such additional appropria15 tions only in amounts equal to’’; and 

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

17 the period; 

18 (4) in subsection (c)— 

19 (A) in paragraph (1)— 

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘the Settlement’’ 

22 and inserting ‘‘this part’’; 

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

24 ‘‘from the sale of water pursuant to the 

25 Settlement, or’’; and 
40 

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

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

3 part’’; 

4 (B) in paragraph (2), by striking ‘‘the Set5 tlement and’’ before ‘‘this part’’; and 

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

7 SEC. 210. REPAYMENT CONTRACTS AND ACCELERATION OF 

8 REPAYMENT OF CONSTRUCTION COSTS. 

9 Section 10010 of the San Joaquin River Restoration 

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

11 (1) in subsection (a)— 

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

13 Settlement and’’ before ‘‘this part’’; and 

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

15 Settlement and’’ before ‘‘this part’’; 

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

17 (3) in subsection (d)(1), by striking ‘‘the Settle18 ment’’ in both places it appears and inserting ‘‘this 

19 part’’; 

20 (4) in subsection (e)— 

21 (A) in paragraph (1)— 

22 (i) by striking ‘‘Interim Flows or Res23 toration Flows, pursuant to paragraphs 13 

24 or 15 of the Settlement’’ and inserting 
41 

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1 ‘‘Restoration Flows, pursuant to this 

2 part’’; 

3 (ii) by striking ‘‘Interim Flows or’’ be4 fore ‘‘Restoration Flows’’; and 

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

6 Restoration Flows or is intended to other7 wise facilitate the Water Management 

8 Goal, as described in the Settlement’’ and 

9 inserting ‘‘Restoration Flows’’; and 

10 (B) in paragraph (2)— 

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

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

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

14 and 

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

16 Restoration Flows or to facilitate the 

17 Water Management Goal’’ and inserting 

18 ‘‘Restoration Flows’’. 

19 SEC. 211. REPEAL. 

20 Section 10011 of the San Joaquin River Restoration 

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

22 SEC. 212. WATER SUPPLY MITIGATION. 

23 Section 10202(b) of the San Joaquin River Restora24 tion Settlement Act (Public Law 111–11) is amended— 
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1 (1) in paragraph (1), by striking ‘‘the Interim 

2 or Restoration Flows authorized in part I of this 

3 subtitle’’ and inserting ‘‘Restoration Flows author4 ized in this part’’; 

5 (2) in paragraph (2), by striking ‘‘the Interim 

6 or Restoration Flows authorized in part I of this 

7 subtitle’’ and inserting ‘‘Restoration Flows author8 ized in this part’’; and 

9 (3) in paragraph (3)— 

10 (A) in subparagraph (A), by striking 

11 ‘‘meet the Restoration Goal as described in part 

12 I of this subtitle’’ and inserting ‘‘recover Res13 toration Flows as described in this part’’; 

14 (B) in subparagraph (C)— 

15 (i) by striking ‘‘the Interim or Res16 toration Flows authorized in part I of this 

17 subtitle’’ and inserting ‘‘Restoration Flows 

18 authorized in this part’’; and 

19 (ii) by striking ‘‘, and for ensuring ap20 propriate adjustment in the recovered 

21 water account pursuant to section 

22 10004(a)(5)’’. 

23 SEC. 213. ADDITIONAL AUTHORITIES. 

24 Section 10203 of the San Joaquin River Restoration 

25 Settlement Act (Public Law 111–11) is amended— 
43 

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1 (1) in subsection (b)— 

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

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

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

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

6 (2) by striking subsection (c). 

7 TITLE III—REPAYMENT CON8 TRACTS AND ACCELERATION 

9 OF REPAYMENT OF CON10 STRUCTION COSTS 

11 SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF 

12 REPAYMENT OF CONSTRUCTION COSTS. 

13 (a) CONVERSION OF CONTRACTS.— 

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

15 Secretary of the Interior, upon request of the con16 tractor, shall convert all existing long-term Central 

17 Valley Project contracts entered under subsection (e) 

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

19 1196), to a contract under subsection (d) of section 

20 9 of said Act (53 Stat. 1195), under mutually agree21 able terms and conditions. 

22 (2) Upon request of the contractor, the Sec23 retary is further authorized to convert, not later 

24 than 1 year after enactment, any Central Valley 

25 Project long-term contract entered under subsection 
44 

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

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

3 section 9 of said Act, under mutually agreeable 

4 terms and conditions. 

5 (3) All contracts entered into pursuant to para6 graph (1) shall— 

7 (A) require the repayment, either in lump 

8 sum or by accelerated prepayment, of the re9 maining amount of construction costs identified 

10 in the most current version of the Central Val11 ley Project Schedule of Irrigation Capital Allo12 cations by Contractor, as adjusted to reflect 

13 payments not reflected in such schedule, and 

14 properly assignable for ultimate return by the 

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

16 if made in approximately equal annual install17 ments, no later than January 31, 2016; such 

18 amount to be discounted by the Treasury Rate. 

19 An estimate of the remaining amount of con20 struction costs as of January 31, 2013, as ad21 justed, shall be provided by the Secretary of the 

22 Interior to each contractor no later than 180 

23 days after enactment; 

24 (B) require that, notwithstanding sub25 section (c)(2), construction costs or other cap-
45 

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1 italized costs incurred after the effective date of 

2 the converted contract or not reflected in the 

3 schedule referenced in subparagraph (A), and 

4 properly assignable to such contractor, shall be 

5 repaid in not more than 5 years after notifica6 tion of the allocation if such amount is a result 

7 of a collective annual allocation of capital costs 

8 to the contractors exercising contract conver9 sions under this subsection of less than 

10 $5,000,000. If such amount is $5,000,000 or 

11 greater, such cost shall be repaid as provided by 

12 applicable reclamation law, provided that the 

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

14 be a precedent in any other context; and 

15 (C) provide that power revenues will not be 

16 available to aid in repayment of construction 

17 costs allocated to irrigation under the contract. 

18 (4) All contracts entered into pursuant to para19 graph (2) shall— 

20 (A) require the repayment in lump sum of 

21 the remaining amount of construction costs 

22 identified in the most current version of the 

23 Central Valley Project Schedule of Municipal 

24 and Industrial Water Rates, as adjusted to re25 flect payments not reflected in such schedule, 
46 

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1 and properly assignable for ultimate return by 

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

3 An estimate of the remaining amount of con4 struction costs as of January 31, 2016, as ad5 justed, shall be provided by the Secretary of the 

6 Interior to each contractor no later than 180 

7 days after enactment; and 

8 (B) require that, notwithstanding sub9 section (c)(2), construction costs or other cap10 italized costs incurred after the effective date of 

11 the contract or not reflected in the schedule ref12 erenced in subparagraph (A), and properly as13 signable to such contractor, shall be repaid in 

14 not more than 5 years after notification of the 

15 allocation if such amount is a result of a collec16 tive annual allocation of capital costs to the 

17 contractors exercising contract conversions 

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

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

20 cost shall be repaid as provided by applicable 

21 reclamation law, provided that the reference to 

22 the amount of $5,000,000 shall not be a prece23 dent in any other context. 

24 (b) FINAL ADJUSTMENT.—The amounts paid pursu25 ant to subsection (a) shall be subject to adjustment fol-
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1 lowing a final cost allocation by the Secretary of the Inte2 rior upon completion of the construction of the Central 

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

4 indicates that the costs properly assignable to the con5 tractor are greater than what has been paid by the con6 tractor, the contractor shall be obligated to pay the re7 maining allocated costs. The term of such additional re8 payment contract shall be no less than 1 year and no more 

9 than 10 years, however, mutually agreeable provisions re10 garding the rate of repayment of such amount may be de11 veloped by the parties. In the event that the final cost allo12 cation indicates that the costs properly assignable to the 

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

14 Secretary of the Interior is authorized and directed to 

15 credit such overpayment as an offset against any out16 standing or future obligation of the contractor. 

17 (c) APPLICABILITY OF CERTAIN PROVISIONS.— 

18 (1) Notwithstanding any repayment obligation 

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

20 contractor’s compliance with and discharge of the 

21 obligation of repayment of the construction costs as 

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

23 full-cost pricing limitations of any provision of Fed24 eral reclamation law shall not apply to lands in such 

25 district. 
48 

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1 (2) Notwithstanding any repayment obligation 

2 under paragraph (3)(B) or paragraph (4)(B) of sub3 section (a), or subsection (b), upon a contractor’s 

4 compliance with and discharge of the obligation of 

5 repayment of the construction costs as provided in 

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

7 contractor shall continue to pay applicable operation 

8 and maintenance costs and other charges applicable 

9 to such repayment contracts pursuant to the then10 current rate-setting policy and applicable law. 

11 (d) CERTAIN REPAYMENT OBLIGATIONS NOT AL12 TERED.—Implementation of the provisions of this section 

13 shall not alter the repayment obligation of any other long14 term water service or repayment contractor receiving 

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

16 that would otherwise have been properly assignable to any 

17 contractors absent this section, including operations and 

18 maintenance costs, construction costs, or other capitalized 

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

20 other such contractors. 

21 (e) STATUTORY INTERPRETATION.—Nothing in this 

22 part shall be construed to affect the right of any long23 term contractor to use a particular type of financing to 

24 make the payments required in paragraph (3)(A) or para25 graph (4)(A) of subsection (a). 
49 

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1 (f) DEFINITION OF TREASURY RATE.—For purposes 

2 of this section, ‘‘Treasury Rate’’ shall be defined as the 

3 20-year Constant Maturity Treasury rate published by the 

4 United States Department of the Treasury as of October 

5 1, 2012. 

6 TITLE IV—BAY-DELTA WATER7 SHED WATER RIGHTS PRES8 ERVATION AND PROTECTION 

9 SEC. 401. WATER RIGHTS AND AREA-OF-ORIGIN PROTEC10 TIONS. 

11 Notwithstanding the provisions of this Act, Federal 

12 reclamation law, or the Endangered Species Act of 1973 

13 (16 U.S.C. 1531 et seq.)— 

14 (1) the Secretary of the Interior (‘‘Secretary’’) 

15 is directed, in the operation of the Central Valley 

16 Project, to strictly adhere to State water rights law 

17 governing water rights priorities by honoring water 

18 rights senior to those belonging to the Central Valley 

19 Project, regardless of the source of priority; 

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

21 the Central Valley Project, to strictly adhere to and 

22 honor water rights and other priorities that are ob23 tained or exist pursuant to the provisions of Cali24 fornia Water Code sections 10505, 10505:5, 11128, 
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1 11460, and 11463; and sections 12200 to 12220, in2 clusive; and 

3 (3) any action that affects the diversion of 

4 water or involves the release of water from any Cen5 tral Valley Project water storage facility taken by 

6 the Secretary or the Secretary of the Department of 

7 Commerce to conserve, enhance, recover, or other8 wise protect any species listed under the Endangered 

9 Species Act of 1973 (16 U.S.C. 1531 et seq.) shall 

10 be applied in a manner that is consistent with water 

11 right priorities established by State law. 

12 SEC. 402. SACRAMENTO RIVER SETTLEMENT CONTRACTS. 

13 In the implementation of the Endangered Species Act 

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

15 on the Sacramento River, the Secretary and the Secretary 

16 of Commerce are directed to apply any limitations on the 

17 operation of the Central Valley Project or to formulate any 

18 ‘‘reasonable prudent alternative’’ associated with the oper19 ation of the Central Valley Project in a manner that strict20 ly adheres to and applies the water rights priorities for 

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

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

23 Sacramento River Settlement Contracts shall not be uti24 lized by the United States as means to provide shortages 

25 to the Sacramento River Settlement Contracts that are 
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1 different than those provided for in Article 5(a) of those 

2 contracts. 

3 SEC. 403. SACRAMENTO RIVER WATERSHED WATER SERV4 ICE CONTRACTORS. 

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

6 absolute priority of the Sacramento River Settlement Con7 tractors to Sacramento River supplies over Central Valley 

8 Project diversions and deliveries to other contractors, the 

9 Secretary is directed, in the operation of the Central Val10 ley Project, to allocate water provided for irrigation pur11 poses to existing Central Valley Project agricultural water 

12 service contractors within the Sacramento River Water13 shed in compliance with the following: 

14 (1) Not less than 100% of their contract quan15 tities in a ‘‘Wet’’ year. 

16 (2) Not less than 100% of their contract quan17 tities in an ‘‘Above Normal’’ year. 

18 (3) Not less than 100% of their contract quan19 tities in a ‘‘Below Normal’’ year. 

20 (4) Not less than 75% of their contract quan21 tities in a ‘‘Dry’’ year. 

22 (5) Not less than 50% of their contract quan23 tities in a ‘‘Critically Dry’’ year. 

24 (b) PROTECTION OF MUNICIPAL AND INDUSTRIAL

25 SUPPLIES.—Nothing in subsection (a) shall be deemed to 
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1 (i) modify any provision of a water service contract that 

2 addresses municipal and industrial water shortage policies 

3 of the Secretary, (ii) affect or limit the authority of the 

4 Secretary to adopt or modify municipal and industrial 

5 water shortage policies, (iii) affect or limit the authority 

6 of the Secretary to implement municipal and industrial 

7 water shortage policies, or (iv) affect allocations to Central 

8 Valley Project municipal and industrial contractors pursu9 ant to such policies. Neither subsection (a) nor the Sec10 retary’s implementation of subsection (a) shall constrain, 

11 govern or affect, directly or indirectly, the operations of 

12 the Central Valley Project’s American River Division or 

13 any deliveries from that Division, its units or its facilities. 

14 (c) DEFINITIONS.—In this section: 

15 (1) The term ‘‘existing Central Valley Project 

16 agricultural water service contractors within the 

17 Sacramento River Watershed’’ means water service 

18 contractors within the Shasta, Trinity, and Sac19 ramento River Divisions of the Central Valley 

20 Project, that have a water service contract in effect, 

21 on the date of the enactment of this section, that 

22 provides water for irrigation. 

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

24 have the meaning given those year types in the Sac25 ramento Valley Water Year Type (40–30–30) Index. 
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1 SEC. 404. NO REDIRECTED ADVERSE IMPACTS. 

2 The Secretary shall insure that there are no redi3 rected adverse water supply or fiscal impacts to those 

4 within the Sacramento River or San Joaquin River water5 shed or to the State Water Project arising from the Sec6 retary’s operation of the Central Valley Project to meet 

7 legal obligations imposed by or through any State or Fed8 eral agency, including, but not limited to those legal obli9 gations emanating from the Endangered Species Act of 

10 1973 (16 U.S.C. 1531 et seq.) or this Act, or actions or 

11 activities implemented to meet the twin goals of improving 

12 water supply or addressing environmental needs of the 

13 Bay Delta. 

14 TITLE V—MISCELLANEOUS 

15 SEC. 501. PRECEDENT. 

16 Congress finds and declares that— 

17 (1) coordinated operations between the Central 

18 Valley Project and the State Water Project, pre19 viously requested and consented to by the State of 

20 California and the Federal Government, require as21 sertion of Federal supremacy to protect existing 

22 water rights throughout the system; and 

23 (2) these circumstances are unique to Cali24 fornia. 
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1 Therefore, nothing in this Act shall serve as precedent in 

2 any other State. 

Passed the House of Representatives February 29, 

2012. 

Attest: 

Clerk. 

112TH CONGRESS 

2D SESSION H. R. 1837 

AN ACT 

To address certain water-related concerns on the 

San Joaquin River, and for other purposes.