II 

Calendar No. 332 

112TH CONGRESS 

2D SESSION H. R. 1837 

IN THE SENATE OF THE UNITED STATES 

MARCH 1, 2012 

Received 

MARCH 2, 2012 

Read the first time 

MARCH 5, 2012 

Read the second time and placed on the calendar 

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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

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

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—CENTRAL VALLEY PROJECT WATER RELIABILITY 


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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. 

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— 


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

2 the end; and 

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

4 ‘‘(g) to ensure that water dedicated to fish and wild5 life purposes by this title is replaced and provided to Cen6 tral Valley Project water contractors by December 31, 

7 2016, at the lowest cost reasonably achievable; and 

8 ‘‘(h) to facilitate and expedite water transfers in ac9 cordance with this Act.’’. 

10 SEC. 102. AMENDMENT TO DEFINITION. 

11 Section 3403 of the Central Valley Project Improve12 ment Act (106 Stat. 4707) is amended— 

13 (1) by amending subsection (a) to read as fol14 lows: 

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

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

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

18 and San Joaquin Rivers and their tributaries and ascend 

19 those rivers and their tributaries to reproduce after matur20 ing in San Francisco Bay or the Pacific Ocean;’’; 

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

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

23 and inserting ‘‘; and’’, and 

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


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

2 capable of being maintained taking into account com3 peting consumptive uses of water and economic, environ4 mental, and social factors.’’. 

5 SEC. 103. CONTRACTS. 

6 Section 3404 of the Central Valley Project Improve7 ment Act (106 Stat. 4708) is amended— 

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

9 ON CONTRACTING AND CONTRACT REFORM’’ 

10 and inserting ‘‘CONTRACTS’’; and 

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

12 by adding: 

13 ‘‘(a) RENEWAL OF EXISTING LONG-TERM CON14 TRACTS.—Upon request of the contractor, the Secretary 

15 shall renew any existing long-term repayment or water 

16 service contract that provides for the delivery of water 

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

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

19 expressly provided by this Act, any existing long-term re20 payment or water service contract for the delivery of water 

21 from the Central Valley Project shall be administered pur22 suant to the Act of July 2, 1956 (70 Stat. 483). 

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

24 the enactment of this Act, a contract entered into or re25 newed pursuant to this section shall include a provision 


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1 that requires the Secretary to charge the other party to 

2 such contract only for water actually delivered by the Sec3 retary.’’. 

4 SEC. 104. WATER TRANSFERS, IMPROVED WATER MANAGE5 MENT, AND CONSERVATION. 

6 Section 3405 of the Central Valley Project Improve7 ment Act (106 Stat. 4709) is amended as follows: 

8 (1) In subsection (a)— 

9 (A) by inserting before ‘‘Except as pro10 vided herein’’ the following: ‘‘The Secretary 

11 shall take all necessary actions to facilitate and 

12 expedite transfers of Central Valley Project 

13 water in accordance with this Act or any other 

14 provision of Federal reclamation law and the 

15 National Environmental Policy Act of 1969.’’; 

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

17 combination’’ and inserting ‘‘or combination’’; 

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

19 the following: 

20 ‘‘(E) The contracting district from which 

21 the water is coming, the agency, or the Sec22 retary shall determine if a written transfer pro23 posal is complete within 45 days after the date 

24 of submission of such proposal. If such district 

25 or agency or the Secretary determines that such 


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1 proposal is incomplete, such district or agency 

2 or the Secretary shall state with specificity 

3 what must be added to or revised in order for 

4 such proposal to be complete. 

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

6 the Secretary shall not impose mitigation or 

7 other requirements on a proposed transfer, but 

8 the contracting district from which the water is 

9 coming or the agency shall retain all authority 

10 under State law to approve or condition a pro11 posed transfer.’’; and 

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

13 ‘‘(4) Notwithstanding any other provision of 

14 Federal reclamation law— 

15 ‘‘(A) the authority to make transfers or ex16 changes of, or banking or recharge arrange17 ments using, Central Valley Project water that 

18 could have been conducted before October 30, 

19 1992, is valid, and such transfers, exchanges, 

20 or arrangements shall not be subject to, limited, 

21 or conditioned by this title; and 

22 ‘‘(B) this title shall not supersede or re23 voke the authority to transfer, exchange, bank, 

24 or recharge Central Valley Project water that 

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


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1 (2) In subsection (b)— 

2 (A) in the heading, by striking ‘‘METER3 ING’’ and inserting ‘‘MEASUREMENT’’; and 

4 (B) by inserting after the first sentence 

5 the following: ‘‘The contracting district or agen6 cy, not including contracting districts serving 

7 multiple agencies with separate governing 

8 boards, shall ensure that all contractor-owned 

9 water delivery systems within its boundaries 

10 measure surface water at the district or agen11 cy’s facilities up to the point the surface water 

12 is commingled with other water supplies.’’. 

13 (3) By striking subsection (d). 

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

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

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

17 by paragraph (4))— 

18 (A) by striking ‘‘as a result of the in19 creased repayment’’ and inserting ‘‘that exceed 

20 the cost-of-service’’; 

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

22 ‘‘rates applicable to’’; and 

23 (C) by striking ‘‘, and all increased reve24 nues received by the Secretary as a result of the 


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1 increased water prices established under sub2 section 3405(d) of this section,’’. 

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

4 Section 3406 of the Central Valley Project Improve5 ment Act (106 Stat. 4714) is amended as follows: 

6 (1) In subsection (b)— 

7 (A) in paragraph (1)(B)— 

8 (i) by striking ‘‘is authorized and di9 rected to’’ and inserting ‘‘may’’; 

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

11 after ‘‘to provide’’; 

12 (iii) by striking ‘‘anadromous fish, ex13 cept that such’’ and inserting ‘‘anad14 romous fish. Such’’; 

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

16 inserting ‘‘Reasonable instream flow’’; 

17 (v) by inserting ‘‘and the National 

18 Marine Fisheries Service’’ after ‘‘United 

19 States Fish and Wildlife Service’’; and 

20 (vi) by striking ‘‘California Depart21 ment of Fish and Game’’ and inserting 

22 ‘‘United States Geological Survey’’; 

23 (B) in paragraph (2)— 

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

25 inserting ‘‘purposes’’; 


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

2 before ‘‘additional obligations’’; and 

3 (iii) by adding after the period the fol4 lowing: ‘‘All Central Valley Project water 

5 used for the purposes specified in this 

6 paragraph shall be credited to the quantity 

7 of Central Valley Project yield dedicated 

8 and managed under this paragraph by de9 termining how the dedication and manage10 ment of such water would affect the deliv11 ery capability of the Central Valley Project 

12 during the 1928 to 1934 drought period 

13 after fishery, water quality, and other flow 

14 and operational requirements imposed by 

15 terms and conditions existing in licenses, 

16 permits, and other agreements pertaining 

17 to the Central Valley Project under appli18 cable State or Federal law existing on Oc19 tober 30, 1992, have been met. To the full20 est extent possible and in accordance with 

21 section 3411, Central Valley Project water 

22 dedicated and managed pursuant to this 

23 paragraph shall be reused to fulfill the 

24 Secretary’s remaining contractual obliga25 tions to provide Central Valley Project 


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1 water for agricultural or municipal and in2 dustrial purposes.’’; 

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

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

5 quantity of Central Valley Project water fore6 casted to be made available to water service or 

7 repayment contractors in the Delta Division of 

8 the Central Valley Project is below 75 percent 

9 of the total quantity of water to be made avail10 able under said contracts, the quantity of Cen11 tral Valley Project yield dedicated and managed 

12 for that year under this paragraph shall be re13 duced by 25 percent.’’. 

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

15 ‘‘(i) SATISFACTION OF PURPOSES.— 

16 By pursuing the activities described in this 

17 section, the Secretary shall be deemed to 

18 have met the mitigation, protection, res19 toration, and enhancement purposes of this 

20 title.’’. 

21 SEC. 106. RESTORATION FUND. 

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

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

24 amended as follows: 


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

2 ‘‘There is hereby’’. 

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

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

5 ‘‘Monies’’. 

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

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

8 or indirectly require a donation or other payment to the 

9 Restoration Fund— 

10 ‘‘(A) or environmental restoration or mitigation 

11 fees not otherwise provided by law, as a condition 

12 to— 

13 ‘‘(i) providing for the storage or convey14 ance of non-Central Valley Project water pursu15 ant to Federal reclamation laws; or 

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

18 1982 (Public Law 97–293; 96 Stat. 1270); or 

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

20 sole intent of groundwater recharge.’’. 

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

22 Central Valley Project Improvement Act is amended— 

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

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


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

2 follows through the period and inserting ‘‘of carrying 

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

4 (c) ADJUSTMENT AND ASSESSMENT OF MITIGATION

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

6 the Central Valley Project Improvement Act is amended 

7 by inserting ‘‘, or after October 1, 2013, $4 per megawatt8 hour for Central Valley Project power sold to power con9 tractors (October 2013 price levels)’’ after ‘‘$12 per acre10 foot (October 1992 price levels) for municipal and indus11 trial water sold and delivered by the Central Valley 

12 Project’’. 

13 (d) COMPLETION OF ACTIONS.—Section 

14 3407(d)(2)(A) of the Central Valley Project Improvement 

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

16 2020,’’ after ‘‘That upon the completion of the fish, wild17 life, and habitat mitigation and restoration actions man18 dated under section 3406 of this title,’’. 

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

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

21 is amended by adding at the end the following: 

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

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

24 the Restoration Fund Advisory Board, shall submit to 

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


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1 deposited into the Restoration Fund during the preceding 

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

3 analysis of each expenditure. 

4 ‘‘(h) ADVISORY BOARD.— 

5 ‘‘(1) ESTABLISHMENT.—There is hereby estab6 lished the Restoration Fund Advisory Board (herein7 after in this section referred to as the ‘Advisory 

8 Board’) composed of 12 members selected by the 

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

10 shall be designated by the Secretary as Chairman. 

11 The members shall be selected so as to represent the 

12 various Central Valley Project stakeholders, four of 

13 whom shall be from CVP agricultural users, three 

14 from CVP municipal and industrial users, three 

15 from CVP power contractors, and two at the discre16 tion of the Secretary. The Secretary and the Sec17 retary of Commerce may each designate a represent18 ative to act as an observer of the Advisory Board. 

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

20 Board are as follows: 

21 ‘‘(A) To meet at least semiannually to de22 velop and make recommendations to the Sec23 retary regarding priorities and spending levels 

24 on projects and programs carried out pursuant 

25 to the Central Valley Project Improvement Act. 


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

3 the Secretary reflect the independent judgment 

4 of the Advisory Board. 

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

6 and annually thereafter, to transmit to the Sec7 retary and Congress recommendations required 

8 under subparagraph (A). 

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

10 and biennially thereafter, to transmit to Con11 gress a report that details the progress made in 

12 achieving the actions mandated under section 

13 3406 of this title. 

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

15 the appropriate agency head, the Advisory Board 

16 may use the facilities and services of any Federal 

17 agency.’’. 

18 SEC. 107. ADDITIONAL AUTHORITIES. 

19 (a) AUTHORITY FOR CERTAIN ACTIVITIES.—Section 

20 3408(c) of the Central Valley Project Improvement Act 

21 (106 Stat. 4728) is amended to read as follows: 

22 ‘‘(c) CONTRACTS FOR ADDITIONAL STORAGE AND

23 DELIVERY OF WATER.— 

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

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1 tion law and this title with any Federal agency, Cali2 fornia water user or water agency, State agency, or 

3 private organization for the exchange, impoundment, 

4 storage, carriage, and delivery of nonproject water 

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

6 and any other beneficial purpose. 

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

8 shall be deemed to supersede the provisions of sec9 tion 103 of Public Law 99–546 (100 Stat. 3051). 

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

11 The Secretary shall use the authority granted by 

12 this subsection in connection with requests to ex13 change, impound, store, carry, or deliver nonproject 

14 water using Central Valley Project facilities for any 

15 beneficial purpose. 

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

17 not to exceed the amount required to recover the 

18 reasonable costs incurred by the Secretary in con19 nection with a beneficial purpose under this sub20 section. Such rates shall be charged to a party using 

21 Central Valley Project facilities for such purpose. 

22 Such costs shall not include any donation or other 

23 payment to the Restoration Fund. 

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

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1 age the use of Central Valley Project facilities to ex2 change, impound, store, carry, or deliver nonproject 

3 water for any beneficial purpose.’’. 

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

5 the Central Valley Project Improvement Act (106 Stat. 

6 4729) is amended— 

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

8 and the Committee on Merchant Marine and Fish9 eries’’ and inserting ‘‘Natural Resources’’; 

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

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

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

13 (3) by adding at the end the following: ‘‘The fil14 ing and adequacy of such report shall be personally 

15 certified to the Committees referenced above by the 

16 Regional Director of the Mid-Pacific Region of the 

17 Bureau of Reclamation.’’. 

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

19 the Central Valley Project Improvement Act (106 Stat. 

20 4730) is amended as follows: 

21 (1) By redesignating paragraphs (1) through 

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

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

24 effects, if any, upon’’ and inserting ‘‘(1) IN GEN25 ERAL.—In order to minimize adverse effects upon’’. 


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

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

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

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

5 submit to Congress a’’. 

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

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

8 as possible but not later than September 30, 2016 

9 (except for the construction of new facilities which 

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

11 the Central Valley Project by the amount dedicated 

12 and managed for fish and wildlife purposes under 

13 this title and otherwise required to meet the pur14 poses of the Central Valley Project including satis15 fying contractual obligations. The plan required by 

16 this subsection shall include recommendations on ap17 propriate cost-sharing arrangements and authorizing 

18 legislation or other measures needed to implement 

19 the intent, purposes, and provisions of this sub20 section and a description of how the Secretary in21 tends to use the following options—’’. 

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

23 construction of new water storage facilities’’ before 

24 the semicolon. 


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

2 the end. 

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

4 and all that follows through the end of the sub5 section and inserting ‘‘; and’’. 

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

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

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

10 ‘‘(2) IMPLEMENTATION OF PLAN.—The Sec11 retary shall implement the plan required by para12 graph (1) commencing on October 1, 2013. In order 

13 to carry out this subsection, the Secretary shall co14 ordinate with the State of California in imple15 menting measures for the long-term resolution of 

16 problems in the San Francisco Bay/Sacramento-San 

17 Joaquin Delta Estuary. 

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

19 any other provision of Federal reclamation law, if by 

20 September 30, 2016, the plan required by paragraph 

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

22 the Central Valley Project by 800,000 acre-feet, im23 plementation of any non-mandatory action under 

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


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1 achieves an increase in the annual delivery capability 

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

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

4 the Central Valley Project Improvement Act (106 Stat. 

5 4729) is amended— 

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

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

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

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

10 (e) WATER STORAGE PROJECT CONSTRUCTION.— 

11 The Secretary, acting through the Commissioner of the 

12 Bureau of Reclamation, may partner or enter into an 

13 agreement on the water storage projects identified in sec14 tion 103(d)(1) of the Water Supply Reliability, and Envi15 ronmental Improvement Act (Public Law 108–361)(and 

16 Acts supplemental and amendatory to the Act) with local 

17 joint powers authorities formed pursuant to State law by 

18 irrigation districts and other local water districts and local 

19 governments within the applicable hydrologic region, to 

20 advance these projects. No additional Federal funds are 

21 authorized for the activities authorized in sections 

22 103(d)(1)(A)(i), 103(d)(1)(A)(ii), and 103(d)(1)(A)(iii) of 

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

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

25 103(d)(1)(A)(iii) of Public Law 108–361 is authorized for 


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1 construction if non-Federal funds are used for financing 

2 and constructing the project. 

3 SEC. 108. BAY-DELTA ACCORD. 

4 (a) CONGRESSIONAL DIRECTION REGARDING CEN5 TRAL VALLEY PROJECT AND CALIFORNIA STATE WATER

6 PROJECT OPERATIONS.—The Central Valley Project and 

7 the State Water Project shall be operated pursuant to the 

8 water quality standards and operational constraints de9 scribed in the ‘‘Principles for Agreement on the Bay-Delta 

10 Standards Between the State of California and the Fed11 eral Government’’ dated December 15, 1994, and such op12 erations shall proceed without regard to the Endangered 

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

14 law pertaining to the operation of the Central Valley 

15 Project and the California State Water Project. Imple16 mentation of this section shall be in strict conformance 

17 with the ‘‘Principles for Agreement on the Bay-Delta 

18 Standards Between the State of California and the Fed19 eral Government’’ dated December 15, 1994. 

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

21 Federal department nor the State of California, including 

22 any agency or board of the State of California, shall im23 pose on any water right obtained pursuant to State law, 

24 including a pre-1914 appropriative right, any condition 

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


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1 conserve, enhance, recover or otherwise protect any species 

2 that is affected by operations of the Central Valley Project 

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

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

5 California, restrict the exercise of any water right obtained 

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

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

8 Public Trust Doctrine any public trust value. Implementa9 tion of the ‘‘Principles for Agreement on the Bay-Delta 

10 Standards Between the State of California and the Fed11 eral Government’’ dated December 15, 1994, shall be in 

12 strict compliance with the water rights priority system and 

13 statutory protections for areas of origin. 

14 (c) COSTS.—No cost associated with the implementa15 tion of this section shall be imposed directly or indirectly 

16 on any Central Valley Project contractor, or any other per17 son or entity, unless such costs are incurred on a voluntary 

18 basis. 

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

20 preempted with respect to any restriction on the quantity 

21 or size of nonnative fish taken or harvested that preys 

22 upon one or more native fish species that occupy the Sac23 ramento and San Joaquin Rivers and their tributaries or 

24 the Sacramento-San Joaquin Rivers Delta. 


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1 SEC. 109. NATURAL AND ARTIFICIALLY SPAWNED SPECIES. 

2 After the date of the enactment of this title, and re3 gardless of the date of listing, the Secretaries of the Inte4 rior and Commerce shall not distinguish between natural5 spawned and hatchery-spawned or otherwise artificially 

6 propagated strains of a species in making any determina7 tion under the Endangered Species Act of 1973 (16 

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

9 species present in the Sacramento and San Joaquin Rivers 

10 or their tributaries and ascend those rivers and their trib11 utaries to reproduce after maturing in San Francisco Bay 

12 or the Pacific Ocean. 

13 SEC. 110. AUTHORIZED SERVICE AREA. 

14 The authorized service area of the Central Valley 

15 Project shall include the area within the boundaries of the 

16 Kettleman City Community Services District, California, 

17 as those boundaries exist on the date of the enactment 

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

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

20 et seq.), upon enactment of this title, the Secretary is au21 thorized and directed to enter into a long-term contract 

22 in accordance with the reclamation laws with the 

23 Kettleman City Community Services District, California, 

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

25 Project water for municipal and industrial use. The Sec26 retary may temporarily reduce deliveries of the quantity 


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

2 such total whenever reductions due to hydrologic cir3 cumstances are imposed upon agricultural deliveries of 

4 Central Valley Project water. If any additional infrastruc5 ture or related-costs are needed to implement this section, 

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

7 entity. 

8 SEC. 111. REGULATORY STREAMLINING. 

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

10 Notice of Determination or a Notice of Exemption for any 

11 project, including the issuance of a permit under State 

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

13 water therefrom in accordance with the California Envi14 ronmental Quality Act shall be deemed to meet the re15 quirements of section 102(2)(C) of the National Environ16 mental Protection Act of 1969 (42 U.S.C. 4332(2)(C)) for 

17 that project or permit. 

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

19 Reclamation shall not be required to cease or modify any 

20 major Federal action or other activity related to any 

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

22 pending completion of judicial review of any determination 

23 made under the National Environmental Protection Act 

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


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

2 section: 

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

4 Valley Project. 

5 (2) PROJECT.—The term ‘‘project’’— 

6 (A) means an activity that— 

7 (i) is undertaken by a public agency, 

8 funded by a public agency, or that requires 

9 an issuance of a permit by a public agency; 

10 (ii) has a potential to result in phys11 ical change to the environment; and 

12 (iii) may be subject to several discre13 tionary approvals by governmental agen14 cies; 

15 (B) may include construction activities, 

16 clearing or grading of land, improvements to 

17 existing structures, and activities or equipment 

18 involving the issuance of a permit; or 

19 (C) as defined under the California Envi20 ronmental Quality Act in section 21065 of the 

21 California Public Resource Code. 


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1 TITLE II—SAN JOAQUIN RIVER 

2 RESTORATION 

3 SEC. 201. 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 Stipulation of Set7 tlement (Natural Resources Defense Council, et al. v. Kirk 

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

9 S–88–1658 LKK/GGH). 

10 SEC. 202. PURPOSE. 

11 Section 10002 of the San Joaquin River Restoration 

12 Settlement Act (Public Law 111–11) is amended by strik13 ing ‘‘implementation of the Settlement’’ and inserting 

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

15 SEC. 203. DEFINITIONS. 

16 Section 10003 of the San Joaquin River Restoration 

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

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

19 following: 

20 ‘‘(1) The term ‘Restoration Flows’ means the 

21 additional water released or bypassed from Friant 

22 Dam to insure that the target flow entering 

23 Mendota Pool, located approximately 62 river miles 

24 downstream from Friant Dam, does not fall below 

25 50 cubic feet per second.’’; 


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

2 following: 

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

4 through the last day of February of the following 

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

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

7 paragraph: 

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

9 when the total unimpaired runoff at Friant Dam is 

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

11 March 1 of that water year by the California De12 partment of Water Resources.’’. 

13 SEC. 204. IMPLEMENTATION OF RESTORATION. 

14 Section 10004 of the San Joaquin River Restoration 

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

16 (1) in subsection (a)— 

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

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

19 that follows through ‘‘in the Settlement:’’ and 

20 inserting ‘‘authorized to carry out the fol21 lowing:’’; 

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

23 and (5); 

24 (C) in paragraph (3)— 


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

2 ‘‘(1)’’; and 

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

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

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

6 paragraphs: 

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

8 Water Year starting on March 1, 2013— 

9 ‘‘(A) shall modify Friant Dam operations 

10 so as to release the Restoration Flows for that 

11 Water Year, except in any Critical Water Year; 

12 ‘‘(B) shall ensure that the release of Res13 toration Flows are maintained at the level pre14 scribed by this part, but that Restoration Flows 

15 do not reach downstream of Mendota Pool; 

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

17 a manner that improves the fishery in the San 

18 Joaquin River below Friant Dam, but upstream 

19 of Gravelly Ford in existence as of the date of 

20 the enactment of this part, and the associated 

21 riparian habitat; and 

22 ‘‘(D) may, without limiting the actions re23 quired under paragraphs (A) and (C) and sub24 ject to subsections 10004(a)(3) and 10004(l), 

25 use the Restoration Flows to enhance or restore 


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1 a warm water fishery downstream of Gravelly 

2 Ford to and including Mendota Pool, if the Sec3 retary determines that it is reasonable, prudent, 

4 and feasible to do so; and 

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

6 enactment of this section, the Secretary shall develop 

7 and implement, in cooperation with the State of 

8 California, a reasonable plan, to fully recirculate, re9 capture, reuse, exchange, or transfer all Restoration 

10 Flows and provide such recirculated, recaptured, re11 used, exchanged, or transferred flows to those con12 tractors within the Friant Division, Hidden Unit, 

13 and Buchanan Unit of the Central Valley Project 

14 that relinquished the Restoration Flows so recir15 culated, recaptured, reused, exchanged, or trans16 ferred. Such a plan shall address any impact on 

17 ground water resources within the service area of 

18 the Friant Division, Hidden Unit, and Buchanan 

19 Unit of the Central Valley Project and mitigation 

20 may include ground water banking and recharge 

21 projects. Such a plan shall not impact the water 

22 supply or water rights of any entity outside the 

23 Friant Division, Hidden unit, and Buchanan Unit of 

24 the Central Valley Project. Such a plan shall be sub25 ject to applicable provisions of California water law 


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1 and the Secretary’s use of Central Valley Project fa2 cilities to make Project water (other than water re3 leased from Friant Dam pursuant to this part) and 

4 water acquired through transfers available to exist5 ing south-of-Delta Central Valley Project contrac6 tors.’’; 

7 (2) in subsection (b)— 

8 (A) in paragraph (1), by striking ‘‘the Set9 tlement’’ and inserting ‘‘this part’’; and 

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

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

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

15 following: 

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

17 2013, the Secretary shall identify— 

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

19 Restoration Flows prescribed in this part; 

20 ‘‘(2) the measures which shall be implemented 

21 to mitigate impacts on adjacent and downstream 

22 water users, landowners and agencies as a result of 

23 Restoration Flows prescribed in this part; and 

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

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1 tain facilities that the Secretary determines are 

2 needed to implement this part, the Secretary shall 

3 implement all mitigations measures identified in sub4 section (d)(2) before Restoration Flows are com5 menced.’’; 

6 (5) in subsection (e), by striking ‘‘the Settle7 ment’’ and inserting ‘‘this part’’; 

8 (6) in subsection (f), by striking ‘‘the Settle9 ment’’ and all that follows through ‘‘section 10011’’ 

10 and insert ‘‘this part’’; 

11 (7) in subsection (g)— 

12 (A) by striking ‘‘the Settlement and’’ be13 fore this part; and 

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

15 inserting ‘‘exchange contract, or water rights 

16 settlement or holding contracts’’; 

17 (8) in subsection (h)— 

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

19 (B) in paragraph (1)— 

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘Interim Flows 

22 under the Settlement’’ and inserting ‘‘Res23 toration Flows under this part’’; 

24 (ii) in subparagraph (C)— 


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1 (I) in clause (i), by striking ‘‘In2 terim’’ and inserting ‘‘Restoration’’; 

3 and 

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

5 ‘‘and’’ after the semicolon; 

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

7 ‘‘and’’ at the end; and 

8 (iv) by striking subparagraph (E); 

9 (C) in paragraph (2)— 

10 (i) by striking ‘‘Interim’’ and insert11 ing ‘‘Restoration’’; 

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

13 (iii) by striking ‘‘(B) exceed’’ and in14 serting ‘‘exceed’’; 

15 (D) in paragraph (3), by striking ‘‘In16 terim’’ and inserting ‘‘Restoration’’; and 

17 (E) by striking paragraph (4) and insert18 ing the following: 

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

20 this Act the Secretary shall promulgate a rule estab21 lishing a claims process to address current and fu22 ture claims including, but not limited to, ground 

23 water seepage, flooding, or levee instability damages 

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


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1 implementation of subtitle A of title X of Public 

2 Law 111–11.’’; 

3 (9) in subsection (i)— 

4 (A) in paragraph (1)— 

5 (i) in the matter preceding subpara6 graph (A), by striking ‘‘the Settlement and 

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

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

9 ‘‘and’’ after the semicolon; 

10 (iii) in subparagraph (B)— 

11 (I) by striking ‘‘additional 

12 amounts authorized to be appro13 priated, including the’’; and 

14 (II) by striking ‘‘; and’’ and in15 serting a period; and 

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

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

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

19 subsections: 

20 ‘‘(k) NO IMPACTS ON OTHER INTERESTS.—No Cen21 tral Valley Project or other water other than San Joaquin 

22 River water impounded by or bypassed from Friant Dam 

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

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

25 implementation of this section shall be imposed directly 


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1 or indirectly on any Central Valley Project contractor, or 

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

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

4 are incurred on a voluntary basis. The implementation of 

5 this part shall not result directly or indirectly in any re6 duction in water supplies or water reliability on any Cen7 tral Valley Project contractor, any State Water Project 

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

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

10 unless such reductions or costs are incurred on a voluntary 

11 basis. 

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

13 shall be subordinate to the Secretary’s use of Central Val14 ley Project facilities to make Project water available to 

15 Project contractors, other than water released from the 

16 Friant Dam pursuant to this part. 

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

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

19 part, including title IV of the Sacramento and San Joa20 quin Valleys Water Reliability Act, this part preempts and 

21 supersedes any State law, regulation, or requirement that 

22 imposes more restrictive requirements or regulations on 

23 the activities authorized under this part. Nothing in this 

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

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


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

2 Joaquin River or its tributaries, under orders issued by 

3 the State Water Resources Control Board pursuant to the 

4 Porter-Cologne Water Quality Control Act (California 

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

6 be consistent with the congressional authorization for any 

7 affected Federal facility as it pertains to the Central Val8 ley Project. 

9 ‘‘(n) PROJECT IMPLEMENTATION.—Projects to im10 plement this title shall be phased such that each project 

11 shall follow the sequencing identified below and include at 

12 least the— 

13 ‘‘(1) project purpose and need; 

14 ‘‘(2) identification of mitigation measures; 

15 ‘‘(3) appropriate environmental review; and 

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

17 this part, the Secretary shall— 

18 ‘‘(A) complete the implementation of miti19 gation measures required; and 

20 ‘‘(B) complete implementation of the 

21 project.’’. 

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

23 Section 10005 of the San Joaquin River Restoration 

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


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1 (1) in subsection (a), by striking ‘‘the Settle2 ment authorized by this part’’ and inserting ‘‘this 

3 part’’; 

4 (2) in subsection (b)— 

5 (A) in paragraph (1)— 

6 (i) by striking ‘‘(1) IN GENERAL.— 

7 The Secretary’’ and inserting ‘‘The Sec8 retary’’; and 

9 (ii) by striking ‘‘the Settlement au10 thorized by this part’’ and inserting ‘‘this 

11 part’’; and 

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

13 (3) in subsection (c)— 

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

16 (B) in paragraph (2)— 

17 (i) by striking ‘‘through the exercise 

18 of its eminent domain authority’’; and 

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

20 inserting ‘‘this part’’; and 

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

22 10009(c)’’ and inserting ‘‘section 10009’’. 

23 SEC. 206. COMPLIANCE WITH APPLICABLE LAW. 

24 Section 10006 of the San Joaquin River Restoration 

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


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1 (1) in subsection (a)— 

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

3 otherwise provided by this part’’ before the pe4 riod at the end; and 

5 (B) in paragraph (2), by striking ‘‘the Set6 tlement’’ and inserting ‘‘this part’’; 

7 (2) in subsection (b), by inserting ‘‘, unless oth8 erwise provided by this part’’ before the period at 

9 the end; 

10 (3) in subsection (c)— 

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

12 10004’’ and inserting ‘‘this part’’; and 

13 (B) in paragraph (3), by striking ‘‘the Set14 tlement’’ and inserting ‘‘this part’’; and 

15 (4) in subsection (d)— 

16 (A) by inserting ‘‘, including without limi17 tation to sections 10004(d) and 10004(h)(4) of 

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

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

20 Settlement’’. 

21 SEC. 207. COMPLIANCE WITH CENTRAL VALLEY PROJECT 

22 IMPROVEMENT ACT. 

23 Section 10007 of the San Joaquin River Restoration 

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

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


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1 (A) by striking ‘‘the Settlement’’ and in2 serting ‘‘enactment of this part’’; and 

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

4 the Secretary and all other parties to protect 

5 and keep in good condition any fish that may 

6 be planted or exist below Friant Dam including 

7 any obligations under section 5937 of the Cali8 fornia Fish and Game Code and the public 

9 trust doctrine, and those of the Secretary and 

10 all other parties under the Endangered Species 

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

12 ‘‘, provided’’; and 

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

14 in the Settlement’’. 

15 SEC. 208. NO PRIVATE RIGHT OF ACTION. 

16 Section 10008(a) of the San Joaquin River Restora17 tion Settlement Act (Public Law 111–11) is amended— 

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

19 after ‘‘person or entity’’; and 

20 (2) by striking ‘‘or the Settlement’’ before the 

21 period and inserting ‘‘unless otherwise provided by 

22 this part. Any Central Valley Project long-term 

23 water service or repayment contractor within the 

24 Friant Division, Hidden unit, or Buchanan Unit ad25 versely affected by the Secretary’s failure to comply 


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

2 action against the Secretary for injunctive relief or 

3 damages, or both.’’. 

4 SEC. 209. IMPLEMENTATION. 

5 Section 10009 of the San Joaquin River Restoration 

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

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

8 FUND’’; 

9 (2) in subsection (a)— 

10 (A) in paragraph (1)— 

11 (i) by striking ‘‘the Settlement’’ the 

12 first place it appears and inserting ‘‘this 

13 part’’; 

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

15 and all that follows through ‘‘subsection 

16 (b)(1),’’; and 

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

18 and all that follows through 

19 ‘‘$110,000,000 of State funds’’; 

20 (B) in paragraph (2)— 

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

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

23 inserting ‘‘The Secretary’’; 

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

25 (C) in paragraph (3)— 


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

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

3 and 

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

5 inserting ‘‘this part’’; 

6 (3) in subsection (b)(1)— 

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

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

9 (B) by striking ‘‘such additional appropria10 tions only in amounts equal to’’; and 

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

12 the period; 

13 (4) in subsection (c)— 

14 (A) in paragraph (1)— 

15 (i) in the matter preceding subpara16 graph (A), by striking ‘‘the Settlement’’ 

17 and inserting ‘‘this part’’; 

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

19 ‘‘from the sale of water pursuant to the 

20 Settlement, or’’; and 

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

22 ‘‘the Settlement’’ and inserting ‘‘this 

23 part’’; 

24 (B) in paragraph (2), by striking ‘‘the Set25 tlement and’’ before ‘‘this part’’; and 


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

2 SEC. 210. REPAYMENT CONTRACTS AND ACCELERATION OF 

3 REPAYMENT OF CONSTRUCTION COSTS. 

4 Section 10010 of the San Joaquin River Restoration 

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

6 (1) in subsection (a)— 

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

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

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

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

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

12 (3) in subsection (d)(1), by striking ‘‘the Settle13 ment’’ in both places it appears and inserting ‘‘this 

14 part’’; 

15 (4) in subsection (e)— 

16 (A) in paragraph (1)— 

17 (i) by striking ‘‘Interim Flows or Res18 toration Flows, pursuant to paragraphs 13 

19 or 15 of the Settlement’’ and inserting 

20 ‘‘Restoration Flows, pursuant to this 

21 part’’; 

22 (ii) by striking ‘‘Interim Flows or’’ be23 fore ‘‘Restoration Flows’’; and 

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

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1 wise facilitate the Water Management 

2 Goal, as described in the Settlement’’ and 

3 inserting ‘‘Restoration Flows’’; and 

4 (B) in paragraph (2)— 

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

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

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

8 and 

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

10 Restoration Flows or to facilitate the 

11 Water Management Goal’’ and inserting 

12 ‘‘Restoration Flows’’. 

13 SEC. 211. REPEAL. 

14 Section 10011 of the San Joaquin River Restoration 

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

16 SEC. 212. WATER SUPPLY MITIGATION. 

17 Section 10202(b) of the San Joaquin River Restora18 tion Settlement Act (Public Law 111–11) is amended— 

19 (1) in paragraph (1), by striking ‘‘the Interim 

20 or Restoration Flows authorized in part I of this 

21 subtitle’’ and inserting ‘‘Restoration Flows author22 ized in this part’’; 

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

24 or Restoration Flows authorized in part I of this 


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1 subtitle’’ and inserting ‘‘Restoration Flows author2 ized in this part’’; and 

3 (3) in paragraph (3)— 

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

5 ‘‘meet the Restoration Goal as described in part 

6 I of this subtitle’’ and inserting ‘‘recover Res7 toration Flows as described in this part’’; 

8 (B) in subparagraph (C)— 

9 (i) by striking ‘‘the Interim or Res10 toration Flows authorized in part I of this 

11 subtitle’’ and inserting ‘‘Restoration Flows 

12 authorized in this part’’; and 

13 (ii) by striking ‘‘, and for ensuring ap14 propriate adjustment in the recovered 

15 water account pursuant to section 

16 10004(a)(5)’’. 

17 SEC. 213. ADDITIONAL AUTHORITIES. 

18 Section 10203 of the San Joaquin River Restoration 

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

20 (1) in subsection (b)— 

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

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

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

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

25 (2) by striking subsection (c). 


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1 TITLE III—REPAYMENT CON2 TRACTS AND ACCELERATION 

3 OF REPAYMENT OF CON4 STRUCTION COSTS 

5 SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF 

6 REPAYMENT OF CONSTRUCTION COSTS. 

7 (a) CONVERSION OF CONTRACTS.— 

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

9 Secretary of the Interior, upon request of the con10 tractor, shall convert all existing long-term Central 

11 Valley Project contracts entered under subsection (e) 

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

13 1196), to a contract under subsection (d) of section 

14 9 of said Act (53 Stat. 1195), under mutually agree15 able terms and conditions. 

16 (2) Upon request of the contractor, the Sec17 retary is further authorized to convert, not later 

18 than 1 year after enactment, any Central Valley 

19 Project long-term contract entered under subsection 

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

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

22 section 9 of said Act, under mutually agreeable 

23 terms and conditions. 

24 (3) All contracts entered into pursuant to para25 graph (1) shall— 


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1 (A) require the repayment, either in lump 

2 sum or by accelerated prepayment, of the re3 maining amount of construction costs identified 

4 in the most current version of the Central Val5 ley Project Schedule of Irrigation Capital Allo6 cations by Contractor, as adjusted to reflect 

7 payments not reflected in such schedule, and 

8 properly assignable for ultimate return by the 

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

10 if made in approximately equal annual install11 ments, no later than January 31, 2016; such 

12 amount to be discounted by the Treasury Rate. 

13 An estimate of the remaining amount of con14 struction costs as of January 31, 2013, as ad15 justed, shall be provided by the Secretary of the 

16 Interior to each contractor no later than 180 

17 days after enactment; 

18 (B) require that, notwithstanding sub19 section (c)(2), construction costs or other cap20 italized costs incurred after the effective date of 

21 the converted contract or not reflected in the 

22 schedule referenced in subparagraph (A), and 

23 properly assignable to such contractor, shall be 

24 repaid in not more than 5 years after notifica25 tion of the allocation if such amount is a result 


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1 of a collective annual allocation of capital costs 

2 to the contractors exercising contract conver3 sions under this subsection of less than 

4 $5,000,000. If such amount is $5,000,000 or 

5 greater, such cost shall be repaid as provided by 

6 applicable reclamation law, provided that the 

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

8 be a precedent in any other context; and 

9 (C) provide that power revenues will not be 

10 available to aid in repayment of construction 

11 costs allocated to irrigation under the contract. 

12 (4) All contracts entered into pursuant to para13 graph (2) shall— 

14 (A) require the repayment in lump sum of 

15 the remaining amount of construction costs 

16 identified in the most current version of the 

17 Central Valley Project Schedule of Municipal 

18 and Industrial Water Rates, as adjusted to re19 flect payments not reflected in such schedule, 

20 and properly assignable for ultimate return by 

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

22 An estimate of the remaining amount of con23 struction costs as of January 31, 2016, as ad24 justed, shall be provided by the Secretary of the 


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1 Interior to each contractor no later than 180 

2 days after enactment; and 

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. 

19 (b) FINAL ADJUSTMENT.—The amounts paid pursu20 ant to subsection (a) shall be subject to adjustment fol21 lowing a final cost allocation by the Secretary of the Inte22 rior upon completion of the construction of the Central 

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

24 indicates that the costs properly assignable to the con25 tractor are greater than what has been paid by the conVerDate Mar 15 2010 21:55 Mar 05, 2012 Jkt 019200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H1837.PCS H1837

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1 tractor, the contractor shall be obligated to pay the re2 maining allocated costs. The term of such additional re3 payment contract shall be no less than 1 year and no more 

4 than 10 years, however, mutually agreeable provisions re5 garding the rate of repayment of such amount may be de6 veloped by the parties. In the event that the final cost allo7 cation indicates that the costs properly assignable to the 

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

9 Secretary of the Interior is authorized and directed to 

10 credit such overpayment as an offset against any out11 standing or future obligation of the contractor. 

12 (c) APPLICABILITY OF CERTAIN PROVISIONS.— 

13 (1) Notwithstanding any repayment obligation 

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

15 contractor’s compliance with and discharge of the 

16 obligation of repayment of the construction costs as 

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

18 full-cost pricing limitations of any provision of Fed19 eral reclamation law shall not apply to lands in such 

20 district. 

21 (2) Notwithstanding any repayment obligation 

22 under paragraph (3)(B) or paragraph (4)(B) of sub23 section (a), or subsection (b), upon a contractor’s 

24 compliance with and discharge of the obligation of 

25 repayment of the construction costs as provided in 


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

2 contractor shall continue to pay applicable operation 

3 and maintenance costs and other charges applicable 

4 to such repayment contracts pursuant to the then5 current rate-setting policy and applicable law. 

6 (d) CERTAIN REPAYMENT OBLIGATIONS NOT AL7 TERED.—Implementation of the provisions of this section 

8 shall not alter the repayment obligation of any other long9 term water service or repayment contractor receiving 

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

11 that would otherwise have been properly assignable to any 

12 contractors absent this section, including operations and 

13 maintenance costs, construction costs, or other capitalized 

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

15 other such contractors. 

16 (e) STATUTORY INTERPRETATION.—Nothing in this 

17 part shall be construed to affect the right of any long18 term contractor to use a particular type of financing to 

19 make the payments required in paragraph (3)(A) or para20 graph (4)(A) of subsection (a). 

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

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

23 20-year Constant Maturity Treasury rate published by the 

24 United States Department of the Treasury as of October 

25 1, 2012. 


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

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

6 Notwithstanding the provisions of this Act, Federal 

7 reclamation law, or the Endangered Species Act of 1973 

8 (16 U.S.C. 1531 et seq.)— 

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

10 is directed, in the operation of the Central Valley 

11 Project, to strictly adhere to State water rights law 

12 governing water rights priorities by honoring water 

13 rights senior to those belonging to the Central Valley 

14 Project, regardless of the source of priority; 

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

16 the Central Valley Project, to strictly adhere to and 

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

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

22 (3) any action that affects the diversion of 

23 water or involves the release of water from any Cen24 tral Valley Project water storage facility taken by 

25 the Secretary or the Secretary of the Department of 


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1 Commerce to conserve, enhance, recover, or other2 wise protect any species listed under the Endangered 

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

4 be applied in a manner that is consistent with water 

5 right priorities established by State law. 

6 SEC. 402. SACRAMENTO RIVER SETTLEMENT CONTRACTS. 

7 In the implementation of the Endangered Species Act 

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

9 on the Sacramento River, the Secretary and the Secretary 

10 of Commerce are directed to apply any limitations on the 

11 operation of the Central Valley Project or to formulate any 

12 ‘‘reasonable prudent alternative’’ associated with the oper13 ation of the Central Valley Project in a manner that strict14 ly adheres to and applies the water rights priorities for 

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

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

17 Sacramento River Settlement Contracts shall not be uti18 lized by the United States as means to provide shortages 

19 to the Sacramento River Settlement Contracts that are 

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

21 contracts. 

22 SEC. 403. SACRAMENTO RIVER WATERSHED WATER SERV23 ICE CONTRACTORS. 

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

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1 tractors to Sacramento River supplies over Central Valley 

2 Project diversions and deliveries to other contractors, the 

3 Secretary is directed, in the operation of the Central Val4 ley Project, to allocate water provided for irrigation pur5 poses to existing Central Valley Project agricultural water 

6 service contractors within the Sacramento River Water7 shed in compliance with the following: 

8 (1) Not less than 100% of their contract quan9 tities in a ‘‘Wet’’ year. 

10 (2) Not less than 100% of their contract quan11 tities in an ‘‘Above Normal’’ year. 

12 (3) Not less than 100% of their contract quan13 tities in a ‘‘Below Normal’’ year. 

14 (4) Not less than 75% of their contract quan15 tities in a ‘‘Dry’’ year. 

16 (5) Not less than 50% of their contract quan17 tities in a ‘‘Critically Dry’’ year. 

18 (b) PROTECTION OF MUNICIPAL AND INDUSTRIAL

19 SUPPLIES.—Nothing in subsection (a) shall be deemed to 

20 (i) modify any provision of a water service contract that 

21 addresses municipal and industrial water shortage policies 

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

23 Secretary to adopt or modify municipal and industrial 

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

25 of the Secretary to implement municipal and industrial 


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

2 Valley Project municipal and industrial contractors pursu3 ant to such policies. Neither subsection (a) nor the Sec4 retary’s implementation of subsection (a) shall constrain, 

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

6 the Central Valley Project’s American River Division or 

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

8 (c) DEFINITIONS.—In this section: 

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

10 agricultural water service contractors within the 

11 Sacramento River Watershed’’ means water service 

12 contractors within the Shasta, Trinity, and Sac13 ramento River Divisions of the Central Valley 

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

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

16 provides water for irrigation. 

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

18 have the meaning given those year types in the Sac19 ramento Valley Water Year Type (40–30–30) Index. 

20 SEC. 404. NO REDIRECTED ADVERSE IMPACTS. 

21 The Secretary shall insure that there are no redi22 rected adverse water supply or fiscal impacts to those 

23 within the Sacramento River or San Joaquin River water24 shed or to the State Water Project arising from the Sec25 retary’s operation of the Central Valley Project to meet 


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1 legal obligations imposed by or through any State or Fed2 eral agency, including, but not limited to those legal obli3 gations emanating from the Endangered Species Act of 

4 1973 (16 U.S.C. 1531 et seq.) or this Act, or actions or 

5 activities implemented to meet the twin goals of improving 

6 water supply or addressing environmental needs of the 

7 Bay Delta. 

8 TITLE V—MISCELLANEOUS 

9 SEC. 501. PRECEDENT. 

10 Congress finds and declares that— 

11 (1) coordinated operations between the Central 

12 Valley Project and the State Water Project, pre13 viously requested and consented to by the State of 

14 California and the Federal Government, require as15 sertion of Federal supremacy to protect existing 

16 water rights throughout the system; and 

17 (2) these circumstances are unique to Cali18 fornia. 

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

20 any other State. 

Passed the House of Representatives February 29, 

2012. 

Attest: KAREN L. HAAS, 

Clerk. 


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Calendar No. 332 

112TH CONGRESS 

2D SESSION H. R. 1837 

AN ACT 

To address certain water-related concerns on the 

San Joaquin River, and for other purposes. 

MARCH 5, 2012 

Read the second time and placed on the calendar 


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