```

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1837 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1837

To address certain water-related concerns on the San Joaquin River, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2011

  Mr. Nunes (for himself, Mr. McCarthy of California, and Mr. Denham) 
 introduced the following bill; which was referred to the Committee on 
                           Natural Resources

_______________________________________________________________________

                                 A BILL

 
To address certain water-related concerns on the San Joaquin River, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``San Joaquin Valley Water Reliability 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
        TITLE I--CENTRAL VALLEY PROJECT IMPROVEMENT ACT REFORMS

Sec. 101. Amendment to purposes.
Sec. 102. Amendment to definition.
Sec. 103. Limitation on contracting and contract reform.
Sec. 104. Water transfers, improved water management, and conservation.
Sec. 105. Fish, wildlife, and habitat restoration.
Sec. 106. Restoration Fund.
Sec. 107. Additional authorities.
Sec. 108. Compliance with Endangered Species Act of 1973.
Sec. 109. Authorized service area.
Sec. 110. Area of origin and prior rights.
Sec. 111. Water storage.
                TITLE II--SAN JOAQUIN RIVER RESTORATION

Sec. 201. Reference.
Sec. 202. Preemption of State law.
Sec. 203. Repeal of the San Joaquin River Settlement.
Sec. 204. Satisfaction and discharge of obligations.
Sec. 205. San Joaquin River Habitat Restoration.
Sec. 206. Restoration Fund.
Sec. 207. Natural and artificially spawned species.
    TITLE III--REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
                           CONSTRUCTION COSTS

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

        TITLE I--CENTRAL VALLEY PROJECT IMPROVEMENT ACT REFORMS

SEC. 101. AMENDMENT TO PURPOSES.

    Section 3402 of the Central Valley Project Improvement Act (106 
Stat. 4706) is amended--
            (1) in subsection (f), by striking the period at the end; 
        and
            (2) by adding at the end the following:
    ``(g) to ensure that water dedicated to fish and wildlife purposes 
by this title is replaced and provided to Central Valley Project water 
contractors by December 31, 2016, at the lowest cost reasonably 
achievable; and
    ``(h) to facilitate and expedite water transfers in accordance with 
this Act.''.

SEC. 102. AMENDMENT TO DEFINITION.

    Section 3403(a) of the Central Valley Project Improvement Act (106 
Stat. 4707) is amended to read as follows:
    ``(a) the term `anadromous fish' means those native stocks of 
salmon (including steelhead) and sturgeon that, as of October 30, 1992, 
were present in the Sacramento and San Joaquin Rivers and their 
tributaries and ascend those rivers and their tributaries to reproduce 
after maturing in San Francisco Bay or the Pacific Ocean;''.

SEC. 103. LIMITATION ON CONTRACTING AND CONTRACT REFORM.

    Section 3404 of the Central Valley Project Improvement Act (106 
Stat. 4710) is amended by striking the language of the section and by 
adding:
    ``(a) Renewal of Existing Long-Term Contracts.--Upon request of the 
contractor, the Secretary shall renew any existing long-term repayment 
or water service contract that provides for the delivery of water from 
the Central Valley Project for a period of 40 years, and renew such 
contracts for successive periods of 40 years each.
    ``(b) Delivery Charge.--Beginning on the date of the enactment of 
this Act, a contract entered into or renewed pursuant to this section 
shall include a provision that requires the Secretary to charge the 
other party to such contract only for water actually delivered by the 
Secretary.''.

SEC. 104. WATER TRANSFERS, IMPROVED WATER MANAGEMENT, AND CONSERVATION.

    Section 3405 of the Central Valley Project Improvement Act (106 
Stat. 4710) is amended as follows:
            (1) In subsection (a)--
                    (A) by inserting before ``Except as provided 
                herein'' the following: ``The Secretary shall take all 
                necessary actions to facilitate and expedite transfers 
                of Central Valley Project water in accordance with such 
                Act or any other provision of law.'';
                    (B) in paragraph (1)(A), by striking ``to 
                combination'' and inserting ``or combination'';
                    (C) in paragraph (2), by adding at the end the 
                following:
                    ``(E) The contracting district from which the water 
                is coming, the agency, or the Secretary shall determine 
                if a written transfer proposal is complete within 45 
                days after the date of submission of such proposal. If 
                such district or agency or the Secretary determines 
                that such proposal is incomplete, such district or 
                agency or the Secretary shall state with specificity 
                what must be added to or revised in order for such 
                proposal to be complete.
                    ``(F) Except as provided in this section, the 
                Secretary shall not impose mitigation or other 
                requirements on a proposed transfer, but the 
                contracting district from which the water is coming or 
                the agency shall retain all authority under State law 
                to approve or condition a proposed transfer.''; and
                    (D) by adding at the end the following:
            ``(4) Notwithstanding any other provision of law--
                    ``(A) the authority to make transfers or exchanges 
                of, or banking or recharge arrangements using, Central 
                Valley Project water that could have been conducted 
                before October 30, 1992, is valid, and such transfers, 
                exchanges, or arrangements shall not be subject to, 
                limited, or conditioned by this title; and
                    ``(B) this title shall not supersede or revoke the 
                authority to transfer, exchange, bank, or recharge 
                Central Valley Project water that existed prior to 
                October 30, 1992.''.
            (2) In subsection (b)--
                    (A) in the heading, by striking ``Metering'' and 
                inserting ``Measurement''; and
                    (B) by inserting after the first sentence the 
                following: ``The contracting district or agency, not 
                including contracting districts serving multiple 
                agencies with separate governing boards, shall ensure 
                that all contractor-owned water delivery systems within 
                its boundaries measure surface water at the district or 
                agency's facilities up to the point the surface water 
                is commingled with other water supplies.''.
            (3) By striking subsection (d).
            (4) By redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
            (5) By amending subsection (e) (as redesignated by 
        paragraph (4)) to read as follows:
    ``(e) Restoration Fund.--All revenues received by the Secretary 
that exceed the cost-of-service rate applicable to the delivery of 
water transferred from irrigation use to municipal and industrial use 
under subsection (a) shall be deposited into the Restoration Fund, as 
established under section 3407.''.

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

    Section 3406 of the Central Valley Project Improvement Act (106 
Stat. 4714) is amended as follows:
            (1) In subsection (b)--
                    (A) in paragraph (1), by amending subparagraph (B) 
                to read as follows:
                    ``(B) Modification of program.--
                            ``(i) In general.--As needed to achieve the 
                        goals of the program established under this 
                        paragraph, the Secretary may modify Central 
                        Valley Project operations to provide reasonable 
                        water flows of suitable quality, quantity, and 
                        timing to protect all life stages of anadromous 
                        fish. Such flows shall be provided--
                                    ``(I) from the quantity of water 
                                dedicated for fish, wildlife, and 
                                habitat restoration purposes under 
                                paragraph (2);
                                    ``(II) from the water supplies 
                                acquired pursuant to paragraph (3); and
                                    ``(III) from other sources that do 
                                not conflict with fulfillment of the 
                                Secretary's remaining contractual 
                                obligations to provide Central Valley 
                                Project water for other authorized 
                                purposes.
                            ``(ii) Instream flow needs.--Reasonable 
                        instream flow needs for all Central Valley 
                        Project controlled streams and rivers shall be 
                        determined by the Secretary based on 
                        recommendations of the United States Fish and 
                        Wildlife Service and the National Marine 
                        Fisheries Service after consultation with the 
                        United States Geological Survey.'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) upon October 30, 1992, dedicate and manage annually 
        800,000 acre-feet of Central Valley Project yield for the 
        purposes of implementing the fish, wildlife, and habitat 
        restoration purposes and measures authorized by such Act; 
        assisting the State of California in its efforts to protect the 
        waters of the San Francisco Bay/Sacramento-San Joaquin Delta 
        Estuary; and helping to meet such obligations as may be legally 
        imposed upon the Central Valley Project under State or Federal 
        law following October 30, 1992, including additional 
        obligations under the Endangered Species Act of 1973 (16 U.S.C. 
        1531 et seq.). For the purpose of this section, the term 
        `Central Valley Project yield' means the delivery capability of 
        the Central Valley Project during the 1928 to 1934 drought 
        period after fishery, water quality, and other flow and 
        operational requirements imposed by terms and conditions 
        existing in licenses, permits, and other agreements pertaining 
        to the Central Valley Project under applicable State or Federal 
        law existing on October 30, 1992, have been met. All Central 
        Valley Project water used for the purposes specified in this 
        paragraph shall be credited to the quantity of Central Valley 
        Project yield dedicated and managed under this paragraph by 
        determining how the dedication and management of such water 
        would affect the delivery capability of the Central Valley 
        Project during the 1928 to 1934 drought period after fishery, 
        water quality, and other flow and operational requirements 
        imposed by terms and conditions existing in licenses, permits, 
        and other agreements pertaining to the Central Valley Project 
        under applicable State or Federal law existing on October 30, 
        1992, have been met. To the fullest extent possible and in 
        accordance with section 3411, Central Valley Project water 
        dedicated and managed pursuant to this paragraph shall be 
        reused to fulfill the Secretary's remaining contractual 
        obligations to provide Central Valley Project water for 
        agricultural or municipal and industrial purposes.''; and
                    (C) by amending paragraph (2)(C) to read:
                    ``(C) If by March 15th of any year the quantity of 
                Central Valley Project water forecasted to be made 
                available to water service or repayment contractors in 
                the Delta Division of the Central Valley Project is 
                below 75 percent of the total quantity of water to be 
                made available under said contracts, the quantity of 
                Central Valley Project yield dedicated and managed for 
                that year under this paragraph shall be reduced by 25 
                percent.''.
            (2) By adding at the end the following:
    ``(i) Satisfaction of Purposes.--By pursuing the programs and 
activities authorized by this section, the Secretary shall be deemed to 
have met the mitigation, protection, restoration, and enhancement 
purposes of section 2 of the Act of August 26, 1937 (Chapter 832; 50 
Stat. 850).''.

SEC. 106. RESTORATION FUND.

    Section 3407 of the Central Valley Project Improvement Act (106 
Stat. 4714) is amended as follows:
            (1) By amending subsection (a) to read as follows:
    ``(a) Restoration Fund Established.--
            ``(1) In general.--There is established in the Treasury the 
        `Central Valley Project Restoration Fund', which shall be 
        available for deposit of donations from any source and revenues 
        collected under sections 3404(c)(3), 3405(f), 3406(c)(1), and 
        3407(d). Funds donated to the Restoration Fund by a non-Federal 
        entity for a specific purpose shall be expended for such 
        purpose only and shall not be subject to appropriation. Amounts 
        deposited shall be credited as offsetting collections. Not less 
        than 50 percent of the amounts deposited to the Restoration 
        Fund shall be expended for purposes of the Central Valley 
        Project unit or division regarding which the amounts were 
        collected.
            ``(2) Prohibition.--The Secretary may not--
                    ``(A) directly or indirectly require a donation or 
                other payment to the Restoration Fund, or environmental 
                restoration or mitigation fees not otherwise provided 
                by law, as--
                            ``(i) a condition to providing for the 
                        storage or conveyance of non-Central Valley 
                        Project water pursuant to Federal reclamation 
                        laws; or
                            ``(ii) a condition to the delivery of water 
                        pursuant to section 215 of the Reclamation 
                        Reform Act of 1982 (Public Law 97-293; 96 Stat. 
                        1270); or
                    ``(B) require a donation or other payment to the 
                Restoration Fund for any water that is delivered with 
                the sole intent of groundwater recharge.
            ``(3) Use of certain amounts.--The Secretary shall use the 
        amounts collected pursuant to section 3406(c)(1)--
                    ``(A) to assist in improving water quality, 
                riparian values, and fish habitat in the San Joaquin 
                River from Friant Dam to Mendota Pool; or
                    ``(B) to support other projects benefitting land 
                within the Friant Division.
            ``(4) Certain use of restoration fund.--Except as provided 
        under paragraph (1), funds deposited into the Restoration Fund 
        may be appropriated for the acquisition of water supplies and 
        the construction of facilities used to implement projects or 
        programs undertaken pursuant to section 3408(j).''.
            (2) In subsection (c), by amending paragraph (1) to read as 
        follows:
            ``(1) To the extent required in Acts of appropriation, the 
        Secretary shall assess and collect additional annual payments, 
        in addition to the charges collected under sections 3404(c)(3), 
        3405(a)(1)(C), 3405(f), and 3406(c)(1), consisting of charges 
        to direct beneficiaries of the Central Valley Project under 
        subsection (d) of this section in order to recover a portion or 
        all of the costs of carrying out programs, projects, plans, 
        habitat restoration, improvement, and acquisition provisions of 
        this title.''.
            (3) By adding at the end the following:
    ``(g) Report on Expenditure of Funds.--At the end of each fiscal 
year, the Secretary, in consultation with the Restoration Fund Advisory 
Board, shall submit to Congress a plan for the expenditure of all of 
the funds deposited into the Restoration Fund during the preceding 
fiscal year. Such plan shall contain a cost effectiveness analysis of 
each expenditure.
    ``(h) Advisory Board.--
            ``(1) Establishment.--There is hereby established the 
        Restoration Fund Advisory Board (hereinafter in this section 
        referred to as the `Advisory Board') composed of 12 members 
        selected by the Secretary, each for four year terms, one of 
        whom shall be designated by the Secretary as Chairman. The 
        members shall be selected so as to represent the various 
        Central Valley Project stakeholders, four of whom shall be from 
        CVP agricultural users, three from CVP municipal and industrial 
        users, three from CVP power contractors, and two at the 
        discretion of the Secretary. The Secretary and the Secretary of 
        Commerce may each designate a representative to act as an 
        observer of the Advisory Board.
            ``(2) Duties.--The duties of the Advisory Board are as 
        follows:
                    ``(A) To meet at least semi-annually to develop and 
                make recommendations to the Secretary regarding 
                priorities and spending levels on projects and programs 
                carried out pursuant to the Central Valley Project 
                Improvement Act.
                    ``(B) To ensure that any advice or recommendation 
                made by the Advisory Board to the Secretary reflect the 
                independent judgment of the Advisory Board.
                    ``(C) Not later than December 31, 2012, and 
                annually thereafter, to transmit to the Secretary and 
                Congress recommendations required under subparagraph 
                (A).
                    ``(D) Not later than December 31, 2012, and 
                biennially thereafter, to transmit to Congress a report 
                that details the progress made in achieving the goals 
                of the Restoration Fund as identified in this Act.
            ``(3) Administration.--With the consent of the appropriate 
        agency head, the Advisory Board may use the facilities and 
        services of any Federal agency. Non-Federal members of the 
        Advisory Board, while engaged in the performance of their 
        duties away from their homes or regular places of business, may 
        be allowed travel expenses, including per diem in lieu of 
        subsistence under section 5703 of title 5, United States Code. 
        Funds from the Restoration Fund may be used to carry out this 
        paragraph.
            ``(4) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
        App.) shall not apply to the Advisory Board.''.

SEC. 107. ADDITIONAL AUTHORITIES.

    (a) Authority for Certain Activities.--Section 3408(c) of the 
Central Valley Project Improvement Act (106 Stat. 4728) is amended to 
read as follows:
    ``(c) Contracts for Additional Storage and Delivery of Water.--
            ``(1) In general.--The Secretary is authorized to enter 
        into contracts pursuant to Federal reclamation law and this 
        title with any Federal agency, California water user or water 
        agency, State agency, or private organization for the exchange, 
        impoundment, storage, carriage, and delivery of non-project 
        water for domestic, municipal, industrial, fish and wildlife, 
        and any other beneficial purpose.
            ``(2) Limitation.--Nothing in this subsection shall be 
        deemed to supersede the provisions of section 103 of Public Law 
        99-546 (100 Stat. 3051).
            ``(3) Authority for certain activities.--The Secretary 
        shall use the authority granted by this subsection in 
        connection with requests to exchange, impound, store, carry, or 
        deliver nonproject water using Central Valley Project 
        facilities for any beneficial purpose.
            ``(4) Rates.--
                    ``(A)  In general.--The Secretary shall develop 
                rates not to exceed the amount required to recover the 
                reasonable costs incurred by the Secretary in 
                connection with a beneficial purpose under this 
                subsection. Such rates shall be charged to a party 
                using Central Valley Project facilities for such 
                purpose. Such costs shall not include any donation or 
                other payment to the Restoration Fund.
                    ``(B) Reduction in operations and maintenance.--Any 
                payment received in connection with the use of Central 
                Valley Project facilities shall be applied to reduce 
                the current-year operations and maintenance expenses, 
                otherwise payable by Central Valley Project 
                contractors, for such facilities used.
            ``(5) Construction.--This subsection shall be construed and 
        implemented to facilitate and encourage the use of Central 
        Valley Project facilities to exchange, impound, store, carry, 
        or deliver nonproject water for any beneficial purpose.''.
    (b) Reporting Requirements.--Section 3408(f) of the Central Valley 
Project Improvement Act (106 Stat. 4729) is amended--
            (1) by striking ``Interior and Insular Affairs and Merchant 
        Marine and Fisheries'' and inserting ``Natural Resources'';
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, including progress on the plan 
        required by subsection (j)''; and
            (3) by adding at the end the following: ``The filing and 
        adequacy of such report shall be personally certified to the 
        Committees referenced above by the Regional Director of the 
        Mid-Pacific Region of the Bureau of Reclamation.''.
    (c) Project Yield Increase.--Section 3408(j) of the Central Valley 
Project Improvement Act (106 Stat. 4730) is amended to read as follows:
    ``(j) Project Yield Increase.--
            ``(1) Plan required.--In order to minimize adverse effects 
        upon existing Central Valley Project water contractors 
        resulting from the water dedicated for fish and wildlife under 
        this title, and to assist the State of California in meeting 
        its future water needs, the Secretary, on a priority basis and 
        not later than September 30, 2012, shall submit to Congress a 
        least-cost plan to increase, as soon as possible but not later 
        than September 30, 2016 (except for the construction of new 
        facilities which shall not be limited by that deadline), the 
        water of the Central Valley Project by the amount dedicated and 
        managed for fish and wildlife purposes under this title and 
        otherwise required to meet the purposes of the Central Valley 
        Project including satisfying contractual obligations.
            ``(2) Contents of plan.--The plan required by paragraph (1) 
        shall include--
                    ``(A) recommendations on appropriate cost-sharing 
                arrangements and authorizing legislation or other 
                measures needed to implement the intent, purposes, and 
                provisions of this subsection; and
                    ``(B) a description of how the Secretary intends to 
                use the following options:
                            ``(i) Improvements in, modification of, or 
                        additions to the facilities and operations of 
                        the project and construction of new water 
                        storage facilities.
                            ``(ii) Conservation.
                            ``(iii) Transfers.
                            ``(iv) Conjunctive use.
                            ``(v) Purchase of water.
                            ``(vi) Purchase and idling of agricultural 
                        land.
                            ``(vii) Direct purchase of water rights.
                            ``(viii) Water banking and recharge.
            ``(3) Implementation of plan.--Subject to the availability 
        of appropriated funds, the Secretary shall implement the plan 
        required by paragraph (1) commencing on October 1, 2012. In 
        order to carry out this subsection, the Secretary shall 
        coordinate with the State of California in implementing 
        measures for the long-term resolution of problems in the San 
        Francisco Bay/Sacramento-San Joaquin Delta Estuary.
            ``(4) Failure of the plan.--Not withstanding any other 
        provision of law, if by September 30, 2016, the plan required 
        by paragraph (1) fails to increase the annual delivery 
        capability of the Central Valley Project by 800,000 acre-feet, 
        implementation of section 3406(b)(2) shall be suspended until 
        the plan achieves an increase in the annual delivery capability 
        of the Central Valley Project by 800,000 acre-feet.''.
    (d) Technical Correction.--Section 3408(h) of the Central Valley 
Project Improvement Act (106 Stat. 4729) is amended--
            (1) in paragraph (1), by striking ``paragraph (h)(2)'' and 
        inserting ``paragraph (2)''; and
            (2) in paragraph (2), by striking ``paragraph (h)(i)'' and 
        inserting ``paragraph (1)''.

SEC. 108. COMPLIANCE WITH ENDANGERED SPECIES ACT OF 1973.

    (a) Compliance.--
            (1) In general.--All requirements of the Endangered Species 
        Act of 1973 (16 U.S.C. 1531 et seq.) shall be considered to be 
        fully met for the protection and conservation of the species 
        listed pursuant to the Act for the operations of the Central 
        Valley Project and the California State Water Project, if the 
        Central Valley Project and the California State Water Project 
        are operated in a manner consistent with the ``Principles for 
        Agreement on the Bay-Delta Standards Between the State of 
        California and the Federal Government'' dated December 15, 
        1994.
            (2) Biological opinions and modification.--The Secretary of 
        the Interior and the Secretary of Commerce shall issue 
        biological opinions for coordinated operations of the Central 
        Valley Project and the California State Water Project that are 
        no more restrictive than provisions of the ``Principles for 
        Agreement on the Bay-Delta Standards Between the State of 
        California and the Federal Government'' dated December 15, 
        1994. Such biological opinions may be modified only with the 
        consent of the signatories to the ``Principles for Agreement on 
        the Bay-Delta Standards Between the State of California and the 
        Federal Government'' dated December 15, 1994.
    (b) Preemption of State Law.--
            (1) State law preemption.--Neither the State of California, 
        an agency of the State, nor any political subdivision of the 
        State shall adopt or enforce any requirement for the protection 
        or conservation of any species listed under the Endangered 
        Species Act for the operations of the Central Valley Project or 
        the California State Water Project that is more restrictive 
        than the requirements of this section. Any provision of 
        California State law that authorizes the imposition of 
        conditions or restrictions on the operations of the Central 
        Valley Project or the California State Water Project for the 
        protection or conservation of a species that is more 
        restrictive than this section is preempted.
            (2) Native species protection.--Any restriction imposed 
        under California law on the take or harvest of any nonnative or 
        introduced aquatic or terrestrial species that preys upon a 
        native fish species that occupies the Sacramento and San 
        Joaquin Rivers and their tributaries or the Sacramento-San 
        Joaquin Rivers Delta shall be void and is preempted.

SEC. 109. AUTHORIZED SERVICE AREA.

    The authorized service area of the Central Valley Project shall 
include the area within the boundaries of the Kettleman City Community 
Services District, California, as those boundaries exist on the date of 
the enactment of this title. Notwithstanding the provisions of the Act 
of October 30, 1992, (Public Law 102-575, 106 Stat. 4600 et seq.) upon 
enactment of this title, the Secretary is authorized and directed to 
enter into a long-term contract in accordance with the Reclamation laws 
with the Kettleman City Community Services District, California, for 
the delivery of up to 900 acre-feet of Central Valley Project water for 
municipal and industrial use. The Secretary may temporarily reduce 
deliveries of the quantity of water made available pursuant to up to 25 
percent of such total whenever reductions due to hydrologic 
circumstances are imposed upon agricultural deliveries of Central 
Valley Project water.

SEC. 110. AREA OF ORIGIN AND PRIOR RIGHTS.

    Nothing in this title shall affect the Secretary's duty to operate 
the Central Valley Project in a manner consistent with applicable 
provisions of State water law protecting any area of origin, watershed 
of origin, county of origin, or any other water rights, such as senior 
appropriative rights, including rights appropriated prior to December 
19, 1914.

SEC. 111. WATER STORAGE.

    The Secretary, acting through the Commissioner of the Bureau of 
Reclamation, may provide funds authorized to be appropriated to the 
surface storage projects identified in section 103(d)(1) of the Water 
Supply, Reliability, and Environmental Improvement Act (Public Law 108-
361) and Acts supplemental and amendatory of that Act, to local joint 
powers authorities formed pursuant to State law by irrigation districts 
and other local water districts and local governments within the 
applicable hydrologic region, to advance those projects.

                TITLE II--SAN JOAQUIN RIVER RESTORATION

SEC. 201. REFERENCE.

    Subtitle A of title X of Public Law 111-11 is hereby repealed.

SEC. 202. PREEMPTION OF STATE LAW.

    Notwithstanding section 8 of the Reclamation Act of 1902, except as 
provided herein, this title preempts and supersedes any State law, 
regulation, or requirement that imposes more restrictive requirements 
or regulations on the activities authorized under such title. Provided 
nothing herein shall exempt the Friant Division, Hidden Unit, and 
Buchanan Unit of the Central Valley Project from orders issued by the 
State Water Resources Control Board pursuant to the Porter-Cologne 
Water Quality Control Act (California Water Code Sections 13000 et 
seq.).

SEC. 203. REPEAL OF THE SAN JOAQUIN RIVER SETTLEMENT.

    As of the date of enactment of this title, the Secretary shall 
cease any action to implement the San Joaquin River Restoration 
Settlement Act (subtitle A of title X of Public Law 111-11) and the 
Stipulation of Settlement (Natural Resources Defense Council, et al. v. 
Kirk Rodgers, et al., Eastern District of California, No. Civ. S-88-
1658 LKK/GGH).

SEC. 204. SATISFACTION AND DISCHARGE OF OBLIGATIONS.

    Congress finds and declares that the enactment of this section 
satisfies and discharges all of the following obligations:
            (1) Those of the Secretary contained in section 3406(c)(1) 
        of the Reclamation Projects Authorization and Adjustment Act of 
        1992 (Public Law 102-575), except that the Secretary shall 
        continue to assess and collect the charges described in such 
        section 3406(c)(1).
            (2) Those of the Secretary and all other parties to protect 
        and keep in good condition any fish that may be planted or 
        exist below Friant Dam, including any obligations under section 
        5937 of the California Fish and Game Code and the public trust 
        doctrine.

SEC. 205. SAN JOAQUIN RIVER HABITAT RESTORATION.

    (a) Purpose.--The purpose of this section is to implement a program 
of increased water releases from Friant Dam to address environmental, 
habitat, fisheries, and water quality concerns on the San Joaquin River 
from Friant Dam to Sack Dam.
    (b) Definitions.--For the purposes of this section:
            (1) Restoration flows.--The term ``Restoration Flows'' 
        means the minimum flow of 50 cubic feet per second at Sack Dam, 
        located approximately 85 river miles downstream from Friant 
        Dam.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (3) Water year.--The term ``Water Year'' means October 1 
        through the following September 30.
    (c) Critical Water Year.--For purposes of this section a Critical 
Water Year is when the total unimpaired runoff at Friant Dam is less 
than 400,000 acre-feet.
    (d) Release of Restoration Flows.--In each Water Year, commencing 
in the Water Year starting on October 1, 2012, the Secretary--
            (1) shall modify Friant Dam operations so as to release the 
        Restoration Flows for that Water Year, except in any critical 
        water year;
            (2) shall ensure that the release of Restoration Flows are 
        maintained at the levels prescribed by this section;
            (3) shall release the Restoration Flows in a manner that 
        improves the fishery in the San Joaquin River below Friant Dam, 
        but upstream of Gravelly Ford in existence as of the date of 
        the enactment of this section, and the associated riparian 
        habitat, while improving water quality in the San Joaquin River 
        at Vernalis and achieving such other environmental benefits as 
        the Secretary may reasonably determine; and
            (4) may, without limiting the actions required under 
        paragraphs (1) through (3) and subject to subsection (m), use 
        the Restoration Flows to enhance or restore a warm water 
        fishery if the Secretary determines that it is reasonable, 
        prudent, and feasible to do so.
    (e) Effect on Existing Obligations.--Except as described in 
subsection (f), nothing in this section shall modify any existing 
obligation of the United States under Federal Reclamation law to 
operate the Central Valley Project in conformity with State law and 
existing or to be renewed water service, repayment, purchase, or 
exchange contracts.
    (f) Recovery of Restoration Flows.--Not later than 1 year after the 
date of the enactment of this section, the Secretary shall develop and 
implement a least-cost plan to fully recover or replace all Restoration 
Flows and provide such recovered or replacement flows to those water 
service contractors within the Friant Division, Hidden Unit, and 
Buchanan Unit of the Central Valley Project that relinquished the 
Restoration Flows so recovered or replaced. Such a program shall not 
impact the water supply or water rights of any entity outside the 
Friant Division, Hidden Unit, and Buchanan Unit of the Central Valley 
Project.
    (g) Groundwater Impact Plan.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this section, the Secretary, in cooperation 
        with representatives of affected landowners, shall develop and 
        implement a least-cost plan to fully mitigate the impact on 
        groundwater resources within the service area of the Friant 
        Division, Hidden Unit, and Buchanan Unit of the Central Valley 
        Project caused by the release of Restoration Flows.
            (2) Mitigation.--The mitigation required under paragraph 
        (1) may include one or more of the following: the development 
        of new water supplies, land retirement, and groundwater banking 
        and recharge projects. To the extent Restoration Flows are 
        recovered or replaced pursuant to subsection (g) in a manner 
        that mitigates the impact on groundwater resources caused by 
        the release of Restoration Flows, such recovery or replacement 
        may be considered to be a part of the plan to be implemented 
        under this subsection.
    (h) Private Rights of Action.--Nothing in this section shall confer 
upon any person or entity a private right of action or claim for relief 
to interpret or enforce the provisions of this section. Any Central 
Valley Project long-term water service or repayment contractor within 
the Friant Division, Hidden Unit, or Buchanan Unit adversely affected 
by the Secretary's failure to comply with subsection (f) or (g) may 
bring an action against the Secretary for injunctive relief or damages, 
or both. Any action for damages shall be brought in the United States 
Court of Federal Claims.
    (i) No Impacts on Other Interests.--No Central Valley Project or 
other water other than San Joaquin River water impounded by or bypassed 
from Friant Dam shall be used to implement subsection (d) unless such 
use is on a voluntary basis. No cost associated with the implementation 
of this section shall be imposed directly or indirectly on any Central 
Valley Project contractor, or any other person or entity, outside the 
Friant Division, the Hidden Unit, or the Buchanan Unit, unless such 
costs are incurred on a voluntary basis. The implementation of this 
section shall not result directly or indirectly in any reduction in 
water supplies or water reliability on any Central Valley Project 
contractor, any State Water Project contractor, or any other person or 
entity, outside the Friant Division, the Hidden Unit, or the Buchanan 
Unit, unless such reductions or costs are incurred on a voluntary 
basis.
    (j) Priority.--
            (1) In general.--All actions taken under this section shall 
        be subordinate to the Secretary's use of Central Valley Project 
        facilities to make Project water, other than water released 
        from the Friant Dam pursuant to this section, and the 
        Secretary's performance of the Agreement.
            (2) Definition of agreement.--For the purposes of this 
        subsection, the term ``Agreement'' means the Agreement of 
        November 24, 1986, between the United States and the Department 
        of Water Resources of the State of California for the 
        coordinated operation of the Central Valley Project and the 
        State Water Project as authorized by section 103 of Public Law 
        99-546, including any agreement to resolve conflicts arising 
        from that Agreement.

SEC. 206. RESTORATION FUND.

    There is hereby established within the Treasury of the United 
States a fund, to be known as the San Joaquin River Fishery Restoration 
Fund, into which the following funds shall be deposited and used solely 
for the purpose of implementing this title:
            (1) All payments received pursuant to section 3406(c)(1) of 
        the Reclamation Projects Authorization and Adjustment Act of 
        1992 (Public Law 102-575; 106 Stat. 4721).
            (2) Any non-Federal funds, including State cost-sharing 
        funds, contributed to the United States for this purpose.
            (3) Funds in the San Joaquin River Restoration Fund, 
        (Public Law 111-11 section 10009(c)(1)), on the day before the 
        date of the enactment of this Act.

SEC. 207. NATURAL AND ARTIFICIALLY SPAWNED SPECIES.

    After the date of the enactment of this title, the Secretary shall 
not distinguish between natural-spawned and hatchery-spawned or 
otherwise artificially propagated strains of a species in making any 
determination under the Endangered Species Act of 1973 (16 U.S.C. 1531 
et seq.) that relates to any anadromous fish species present in the 
Sacramento and San Joaquin Rivers or their tributaries and ascend those 
rivers and their tributaries to reproduce after maturing in San 
Francisco Bay or the Pacific Ocean.

    TITLE III--REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
                           CONSTRUCTION COSTS

SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF 
              CONSTRUCTION COSTS.

    (a) Conversion of Contracts.--
            (1) Not later than 1 year after enactment, the Secretary of 
        the Interior, upon request of the contractor, shall convert all 
        existing long-term contracts with any Central Valley Project 
        contracts entered under subsection (e) of section 9 of the Act 
        of August 4, 1939 (53 Stat. 1196), to contracts under 
        subsection (d) of section 9 of said Act (53 Stat. 1195), under 
        mutually agreeable terms and conditions.
            (2) Upon request of the contractor, the Secretary is 
        further authorized to convert, not later than 1 year after 
        enactment, any Central Valley Project long-term contract 
        entered under subsection (c)(2) of section 9 of the Act of 
        August 4, 1939 (53 Stat. 1194), to a contract under subsection 
        (c)(1) of section 9 of said Act, under mutually agreeable terms 
        and conditions.
            (3) All contracts entered into pursuant to paragraph (1) 
        shall--
                    (A) require the repayment, either in lump sum or by 
                accelerated prepayment, of the remaining amount of 
                construction costs identified in the most current 
                version of the Central Valley Project Schedule of 
                Irrigation Capital Allocations by Contractor, as 
                adjusted to reflect payments not reflected in such 
                schedule, and properly assignable for ultimate return 
                by the contractor, no later than January 31, 2013, or 
                if made in approximately equal annual installments, no 
                later than January 31, 2016; such amount to be 
                discounted by \1/2\ the Treasury Rate. An estimate of 
                the remaining amount of construction costs as of 
                January 31, 2013, as adjusted, shall be provided by the 
                Secretary of the Interior to each contractor no later 
                than 180 days after enactment;
                    (B) require that, notwithstanding subsection 
                (c)(2), construction costs or other capitalized costs 
                incurred after the effective date of the contract or 
                not reflected in the schedule referenced in 
                subparagraph (A), and properly assignable to such 
                contractor, shall be repaid in not more than 5 years 
                after notification of the allocation if such amount is 
                a result of a collective annual allocation of capital 
                costs to the contractors exercising contract 
                conversions under this subsection of less than 
                $5,000,000. If such amount is $5,000,000 or greater, 
                such cost shall be repaid as provided by applicable 
                Reclamation law, provided that the reference to the 
                amount of $5,000,000 shall not be a precedent in any 
                other context; and
                    (C) provide that power revenues will not be 
                available to aid in repayment of construction costs 
                allocated to irrigation under the contract.
            (4) All contracts entered into pursuant to paragraph (2) 
        shall--
                    (A) require the repayment in lump sum of the 
                remaining amount of construction costs identified in 
                the most current version of the Central Valley Project 
                Schedule of Municipal and Industrial Water Rates, as 
                adjusted to reflect payments not reflected in such 
                schedule, and properly assignable for ultimate return 
                by the contractor, no later than January 31, 2016. An 
                estimate of the remaining amount of construction costs 
                as of January 31, 2016, as adjusted, shall be provided 
                by the Secretary of the Interior to each contractor no 
                later than 180 days after enactment; and
                    (B) require that, notwithstanding subsection 
                (c)(2), construction costs or other capitalized costs 
                incurred after the effective date of the contract or 
                not reflected in the schedule referenced in 
                subparagraph (A), and properly assignable to such 
                contractor, shall be repaid in not more than 5 years 
                after notification of the allocation if such amount is 
                a result of a collective annual allocation of capital 
                costs to the contractors exercising contract 
                conversions under this subsection of less than 
                $5,000,000. If such amount is $5,000,000 or greater, 
                such cost shall be repaid as provided by applicable 
                Reclamation law, provided that the reference to the 
                amount of $5,000,000 shall not be a precedent in any 
                other context.
    (b) Final Adjustment.--The amounts paid pursuant to subsection (a) 
shall be subject to adjustment following a final cost allocation by the 
Secretary of the Interior upon completion of the construction of the 
Central Valley Project. In the event that the final cost allocation 
indicates that the costs properly assignable to the contractor are 
greater than what has been paid by the contractor, the contractor shall 
be obligated to pay the remaining allocated costs. The term of such 
additional repayment contract shall be no less than 1 year and no more 
than 10 years, however, mutually agreeable provisions regarding the 
rate of repayment of such amount may be developed by the parties. In 
the event that the final cost allocation indicates that the costs 
properly assignable to the contractor are less than what the contractor 
has paid, the Secretary of the Interior is authorized and directed to 
credit such overpayment as an offset against any outstanding or future 
obligation of the contractor.
    (c) Applicability of Certain Provisions.--
            (1) Notwithstanding any repayment obligation under 
        subsection (a)(3)(B) or subsection (b), upon a contractor's 
        compliance with and discharge of the obligation of repayment of 
        the construction costs as provided in subsection (a)(3)(A), the 
        ownership and full-cost pricing limitations of any provision of 
        Federal Reclamation Law shall not apply to lands in such 
        district.
            (2) Notwithstanding any repayment obligation under 
        paragraph (3)(B) or paragraph (4)(B) of subsection (a), or 
        subsection (b), upon a contractor's compliance with and 
        discharge of the obligation of repayment of the construction 
        costs as provided in paragraphs (3)(A) and (4)(A) of subsection 
        (a), the Secretary of the Interior shall waive the pricing 
        provisions of section 3405(d) of the Reclamation Projects 
        Authorization and Adjustment Act of 1992 (Public Law 102-575) 
        for such contractor, provided that such contractor shall 
        continue to pay applicable operation and maintenance costs and 
        other charges applicable to such repayment contracts pursuant 
        to the then-current rate-setting policy and applicable law.
    (d) Certain Repayment Obligations Not Altered.--Implementation of 
the provisions of this section shall not alter the repayment obligation 
of any other long-term water service or repayment contractor receiving 
water from the Central Valley Project, or shift any costs that would 
otherwise have been properly assignable to any contractors absent this 
section, including operations and maintenance costs, construction 
costs, or other capitalized costs incurred after the date of enactment 
of this Act, to other such contractors.
    (e) Statutory Interpretation.--Nothing in this part shall be 
construed to affect the right of any long-term contractor to use a 
particular type of financing to make the payments required in paragraph 
(3)(A) or paragraph (4)(A) of subsection (a).
                                 <all>
```