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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1985 Introduced in House (IH)]

107th CONGRESS
  1st Session
                                H. R. 1985

  To authorize funding through the Secretary of the Interior for the 
  implementation of a comprehensive program in California to achieve 
 increased water yield and environmental benefits, as well as improved 
    water system reliability, water quality, water use efficiency, 
      watershed management, water transfers, and levee protection.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2001

Mr. Calvert (for himself, Mr. Condit, Mr. Radanovich, Mrs. Napolitano, 
Mr. Ose, Mr. Dooley of California, Mr. Thomas, Mr. Schiff, Mr. Dreier, 
Ms. Millender-McDonald, Mr. Doolittle, Ms. Sanchez, Mr. Gallegly, Mrs. 
 Davis of California, Mr. McKeon, Mr. Filner, Mr. Horn, Mr. Royce, Mr. 
 Lewis of California, Mr. Baca, Mr. Gary G. Miller of California, Mrs. 
 Bono, Mr. Issa, Mr. Hunter, Mr. Cox, Mr. Rohrabacher, and Mr. Pombo) 
 introduced the following bill; which was referred to the Committee on 
   Resources, and in addition to the Committee on Transportation and 
   Infrastructure, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To authorize funding through the Secretary of the Interior for the 
  implementation of a comprehensive program in California to achieve 
 increased water yield and environmental benefits, as well as improved 
    water system reliability, water quality, water use efficiency, 
      watershed management, water transfers, and levee protection.

    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 ``Western Water Enhancement Security 
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.
Sec. 3. Purposes.
Sec. 4. Definitions.
      TITLE I--SHORT-TERM AND LONG-TERM CALIFORNIA WATER SECURITY

Sec. 101. Short-term governance under interim governance structure.
Sec. 102. Long-term governance and monitoring.
Sec. 103. California water supply security.
Sec. 104. Implementation of record of decision.
Sec. 105. Requirement of specific congressional authorization of new 
                            CALFED projects.
Sec. 106. Reports.
Sec. 107. Treatment of funds.
                  TITLE II--SMALL RECLAMATION PROJECTS

Sec. 201. Short title.
Sec. 202. Amendments to the Small Reclamation Projects Act of 1956.
Sec. 203. Additional appropriations.
Sec. 204. Guidelines.
Sec. 205. Effective date.
Sec. 206. Limitation.

SEC. 3. PURPOSES.

    The purposes of this Act are the following:
            (1) To authorize funding, through the Secretary of the 
        Interior, for the implementation of a comprehensive program to 
        achieve increased water yield and environmental benefits as 
        well as improved water system reliability, water quality, water 
        use efficiency, watershed management, water transfers, and 
        levee protection for California.
            (2) To ensure that the Secretary of the Interior and the 
        State of California, through a State and congressionally 
        authorized Governance Board, continue the implementation of 
        ecosystem protection programs, and development of water supply 
        enhancement projects, as described in the CALFED record of 
        decision, and other programs authorized under this Act.

SEC. 4. DEFINITIONS.

    As used in this Act:
            (1) Bay-delta solution area.--The term ``Bay-Delta solution 
        area'' means the Bay-Delta watershed and the San Francisco Bay/
        Sacramento-San Joaquin Delta Estuary, California, and the areas 
        in which diverted/exported water is used.
            (2) Bay-delta watershed.--The term ``Bay-Delta watershed'' 
        means the Sacramento Valley-San Joaquin River Delta, 
        California, and the rivers and watersheds that are tributary to 
        that Delta.
            (3) CALFED agencies.--The term ``CALFED agencies'' means 
        both the Federal agencies and the State agencies.
            (4) CALFED program.--The term ``CALFED program'' means the 
        cooperative, interagency effort of 18 State and Federal 
        agencies with management or regulatory responsibilities for the 
        Bay-Delta solution area as set forth in the record of decision, 
        including complementary actions (as that term is defined in the 
        record of decision).
            (5) Congressional appropriations committees.--The term 
        ``congressional appropriations committees'' means the 
        Subcommittee on Energy and Water Development of the Committee 
        on Appropriations of the Senate and the Subcommittee on Energy 
        and Water Development of the Committee on Appropriations of the 
        House of Representatives.
            (6) Congressional authorizing committees.--The term 
        ``congressional authorizing committees'' means the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Resources of the House of Representatives.
            (7) Ecosystem restoration program.--The term ``Ecosystem 
        Restoration Program'' means such program under the record of 
        decision.
            (8) Environmental water account.--The term ``Environmental 
        Water Account'' means the water account established by the 
        CALFED agencies to provide water for the protection and 
        recovery of species of fish listed under section 4(c) of the 
        Endangered Species Act of 1973 (16 U.S.C. 1533(c)) at no direct 
        cost and no indirect cost to the water users, in the Bay-Delta 
        watershed and export areas.
            (9) Federal agencies.--The term ``Federal agencies'' means 
        the Federal agencies as identified in the record of decision.
            (10) Governance board.--The term ``Governance Board'' means 
        the joint structure established under section 102(a)(1).
            (11) Record of decision.--The term ``record of decision'' 
        means the Federal record of decision issued August 28, 2000, 
        pursuant to the National Environmental Policy Act of 1969 for 
        the CALFED Bay-Delta Program Final Programmatic Environmental 
        Impact Statement.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (13) State agencies.--The term ``State agencies'' means the 
        State agencies as identified in the record of decision.
            (14) Yield.--The term ``yield'' means a quantity of water 
        supply derived from--
                    (A) recycling existing sources;
                    (B) reservoirs; or
                    (C) other water management tools that--
                            (i) generate additional or new water 
                        supplies by means that are readily available in 
                        critically dry years;
                            (ii) improve system capacity;
                            (iii) improve operational flexibility; or
                            (iv) improve water quality.

      TITLE I--SHORT-TERM AND LONG-TERM CALIFORNIA WATER SECURITY

SEC. 101. SHORT-TERM GOVERNANCE UNDER INTERIM GOVERNANCE STRUCTURE.

    (a) In General.--The Federal agencies and State agencies shall 
continue to operate under the interim governance structure as described 
in Attachment 3 of the record of decision, and in accordance with 
section 103 of this Act, until July 1, 2002.
    (b) Short-Term Program Funding.--
            (1) Authorization of appropriations.--For studies, 
        environmental review, design, and other preconstruction or 
        preacquisition activities for all CALFED program elements, 
        including complementary actions, there is authorized to be 
        appropriated to the Secretary under this section $100,000,000 
        for fiscal year 2002. Funds appropriated pursuant to this 
        section may remain available until expended.
            (2) Equal funding.--In meeting the need for balance, the 
        Interim Governance Board shall ensure that equal funding is 
        provided for funding for increased yield and for environmental 
        benefits in fiscal year 2002, and adequate progress is made in 
        improving water system reliability, water quality, water use 
        efficiency, watershed management, water transfers, and levee 
        protection.
    (c) Water Supply Studies.--
            (1) In general.--The Secretary, acting through the Bureau 
        of Reclamation, shall conduct a study of available water 
        supplies and existing demand--
                    (A) within the units of the Central Valley Project; 
                and
                    (B) within the area served by Central Valley 
                Project agricultural water service contractors.
            (2) Report.--The Secretary shall submit a report to the 
        congressional authorizing committees by not later than May 31, 
        2002, describing the findings of the studies. The report shall 
        describe--
                    (A) water supply improvements, if any, for Central 
                Valley Project agricultural water service contractors 
                that would result from projects described in the record 
                of decision; and
                    (B) all feasible water management actions or supply 
                projects that, if taken or constructed, respectively, 
                would balance available water supplies and existing 
                demand for those contractors.
            (3) Feasible defined.--For purposes of paragraph (2), the 
        term ``feasible'' means capable of being accomplished in a 
        successful manner within a reasonable period of time, taking 
        into account economic, environmental, social, and technological 
        factors.

SEC. 102. LONG-TERM GOVERNANCE AND MONITORING.

    (a) Establishment of Governance Board.--
            (1) In general.--The Secretary and the State of California 
        shall develop a joint structure, to be known as the 
        ``Governance Board'', for managing CALFED program operations 
        and a competitive water grant program in accordance with 
        section 104.
            (2) Development and submittal of proposal.--For purposes of 
        paragraph (1)--
                    (A) the Federal agencies shall participate with the 
                State agencies to develop a proposed joint structure to 
                be authorized by the Congress and the California 
                Legislature before becoming effective; and
                    (B) the Secretary shall submit a proposal to 
                establish such a joint structure to the Congress and 
                the California Legislature by July 1, 2002.
            (3) Public participation.--The Federal agencies shall take 
        steps that will encourage broad public, tribal, and local 
        government involvement in developing the proposal. Whenever 
        feasible, meetings of multiple State agencies and Federal 
        agencies to develop program goals or determine operational 
        criteria shall be open to the public.
            (4) Limitation on appropriations.--No amounts may be 
        appropriated for any fiscal year after fiscal year 2003 to 
        implement the record of decision, including for grants under 
        section 104(b) and other activities to carry out the CALFED 
        program, if there has not been enacted by the Congress a law 
        establishing the Governance Board.
    (b) Program Responsibilities.--The joint structure proposed under 
this section shall provide the following:
            (1) The Governance Board shall direct the implementation of 
        the record of decision and the competitive grant program under 
        section 104(b).
            (2) The Governance Board shall ensure that all relevant 
        Federal programs authorized under this Act and other 
        preexisting authorities, including programs authorized by the 
        Central Valley Project Improvement Act (106 Stat. 4706 et 
        seq.), coordinate and integrate goalsetting, funding, and 
        implementation with CALFED programs so as to ensure the most 
        biologically effective and cost-effective expenditure of 
        Federal funds and resources for CALFED program-related 
        activities. The United States shall continue coordinated 
        consultations and negotiations with the State of California 
        pursuant to the cost sharing agreement required by section 
        78684.10 of California Senate Bill 900, Chapter 135, Statutes 
        of 1996, signed by the Governor of California on July 11, 1996.
    (c) Promotion of Partnerships.--The joint structure proposed under 
this section shall provide the following:
            (1) The Governance Board shall seek out and promote 
        partnerships with local interests and programs that seek to 
        integrate various management options so as to maximize the 
        final resource benefits.
            (2) The Governance Board shall cooperate and undertake 
        joint activities with local public agencies, Indian tribes, 
        private water users, and landowners pursuant to the record of 
        decision. Such activities shall include, but not be limited to, 
        planning, design, technical assistance, construction projects, 
        and the development of an independent peer review science 
        program.
    (d) Monitoring.--The joint structure proposed under this section 
shall provide that the Governance Board shall--
            (1) provide ecological monitoring plans and protocols to be 
        used for gauging cost-effective performance of projects funded 
        under this title relative to the stated ecological goals; and
            (2) ensure that monitoring data collected for projects 
        funded by the Central Valley Project Improvement Act 
        Restoration Fund and other relevant authorities are compatible 
        and designed to measure overall trends in ecosystem health in 
        the Bay-Delta solution area.
    (e) Objective Review and Analysis.--The joint structure proposed 
under this section shall provide that the Governance Board shall ensure 
that--
            (1) all aspects of the CALFED program components, including 
        the competitive grants program under section 104(b), use 
        credible and objective scientific review and economic analysis; 
        and
            (2) recommendations of the Governance Board are based on 
        the best available, independent peer-reviewed information.
    (f) Preliminary Requirements.--The joint structure proposed under 
this section shall provide that--
            (1) before acquiring land as part of the CALFED program, 
        the Governance Board shall first determine that existing 
        Federal land is not available to achieve identified CALFED 
        program objectives; and
            (2) in determining whether to acquire additional lands for 
        the CALFED program, the Governance Board, through the 
        Secretary, shall--
                    (A) consider the cumulative impact on the local 
                government and communities of transferring the property 
                into government ownership; and
                    (B) mitigate such impacts.
    (g) Achievement of Goals of Record of Decision.--The joint 
structure proposed under this section shall provide that the Governance 
Board shall partner with landowners and local agencies to develop 
cooperating landowner commitments that will meet coequal objectives of 
achieving local economic and social goals and to implement the 
ecosystem restoration goals in the record of decision.
    (h) Compliance With State Law.--The joint structure proposed under 
this section shall provide that in carrying out this Act the Governance 
Board shall operate in compliance with California water law. Nothing in 
this Act shall be construed to invalidate or preempt State 
environmental, land use, or water law.

SEC. 103. CALIFORNIA WATER SUPPLY SECURITY.

    (a) Water System Improvements.--
            (1) In general.--The Federal agencies, acting through the 
        CALFED program, shall develop a balanced and timely program to 
        achieve increased yield and environmental benefits as well as 
        improved water system reliability, water quality, water use 
        efficiency, watershed management, water transfers, and levee 
        protection.
            (2) Water system improvements.--The Federal agencies shall 
        ensure that Federal participation in the CALFED program results 
        in continuous, measurable, and significant benefits to achieve 
        increased yield and environmental benefits as well as improved 
        water system reliability, water quality, water use efficiency, 
        watershed management, water transfers, and levee protection for 
        agricultural and urban uses throughout the Bay-Delta solution 
        area. In developing water supply options the Federal agencies 
        and State agencies shall consider all potential storage 
        alternatives and utilize a cost/benefit analysis in conjunction 
        with environmental criteria to ensure that proposals are 
        selected that address environmental issues and are economically 
        viable.
            (3) Water deliveries.--In accordance with the record of 
        decision, the Secretary shall operate the Central Valley 
        Project in a manner that will in a normal year make available 
        to south-of-Delta Central Valley Project agricultural water 
        service contractors at least 70 percent of their existing 
        contract. In years that are other than normal, the Central 
        Valley Project shall be operated to accomplish water supply 
        improvements to south-of-Delta Central Valley Project 
        agricultural water service contractors that are comparable to 
        the targeted normal-year supply improvements. The increased 
        supply for south-of-Delta Central Valley Project agricultural 
        water service contractors shall be accomplished without 
        reducing deliveries to other water agencies that rely on water 
        diverted from the Bay-Delta watershed or degrading the quality 
        of water diverted from the Bay-Delta watershed for municipal 
        and industrial uses. For purposes of application of this 
        section to the 2002 water year, the term ``normal-year'' means 
        a water year in which the Sacramento Valley Index is within 5 
        percent of 7.8 million acre feet as defined by the State Water 
        Resource Control Board Water Quality Control Plan 95-1WR. The 
        Secretary shall develop, in consultation with affected 
        interests, a definition of a ``normal year'' for use in water 
        years after the 2002 water year. The Secretary shall also 
        develop, by no later than July 1, 2002, and in consultation 
        with affected interests, an operations plan (with associated 
        protocols) describing the manner in which the requirements of 
        this section will be achieved.
            (4) Banks pumping plant.--In accordance with the record of 
        decision, the Federal agencies shall--
                    (A) cooperate with the State to increase pumping 
                limits at the Banks Pumping Plant in accordance with 
                the schedule established in the record of decision, or 
                earlier if feasible; and
                    (B) manage the Environmental Water Account and the 
                Ecosystem Restoration Program to maximize the water 
                supply benefits to be provided by the increased pumping 
                capability.
    (b) Environmental Water Management.--
            (1) Management of environmental water account.--The Federal 
        agencies and State agencies shall manage the Environmental 
        Water Account and the Ecosystem Restoration Program under the 
        record of decision as part of a comprehensive plan to provide 
        assurances that actions taken to protect species listed under 
        section 4(c) of the Endangered Species Act of 1973 (16 U.S.C. 
        1533(c)), pursuant to biological opinions and incidental take 
        permits under that Act, will be carried out in a manner that--
                    (A) avoids water supply and water quality impacts 
                to the Central Valley Project and the State Water 
                Project; and
                    (B) avoids effects on the water right holders in 
                the Bay-Delta solution area.
            (2) Environmental water account priorities and operation.--
        The Secretary shall give first priority in the allocation and 
        use of Environmental Water Account and the Ecosystem 
        Restoration Program assets actually obtained or developed to 
        meeting the water supply assurances set forth in paragraph (1). 
        If, by December 31 of any year, the Environmental Water Account 
        water purchase targets, or their functional equivalents, have 
        not been met, the Federal agencies shall continue their efforts 
        to meet the water purchase targets and shall make use of the 
        available Environmental Water Account assets to avoid 
        jeopardizing the continued existence of any species listed 
        under section 4(c) of the Endangered Species Act of 1973 (16 
        U.S.C. 1533(c)) in a manner consistent with minimizing water 
        supply and water quality impacts. If the efforts to meet the 
        water purchase targets are unsuccessful, the maximum 
        responsibility of water service contractors of the State Water 
        Project and the Central Valley Project to provide water for 
        Environmental Water Account ``Tier 2'' purposes (as that term 
        is defined in the record of decision) shall be the difference 
        between the Environmental Water Account purchase targets and 
        the amount of water actually acquired.
    (c) Land Acquisition; Management Plan Required for Existing 
Lands.--The State agencies and the Federal agencies may not, under the 
interim governance structure described in Attachment 3 of the record of 
decision, acquire any additional lands for ecosystem restoration unless 
such agencies, through the Secretary and by not later than January 1, 
2003, develop a management plan for all lands acquired by such agencies 
under such structure before the date of the enactment of this Act.

SEC. 104. IMPLEMENTATION OF RECORD OF DECISION.

    (a) In General.--
            (1) Implementation of the record of decision.--The Federal 
        agencies, in carrying out their regulatory responsibilities 
        under any Federal law, shall not--
                    (A) treat one CALFED program element as an 
                alternative to another CALFED program element; or
                    (B) consider, as an alternative to one element of 
                the CALFED program, implementation of any other element 
                of the CALFED program beyond the levels described in 
                the record of decision.
            (2) Regulatory coordination.--The Secretary, working with 
        the Governor of the State of California, shall develop a 
        regulatory coordination and streamlining process for the 
        issuance of permits and approvals required under State and 
Federal law for projects under the CALFED program, to ensure that all 
Federal agencies' and State agencies' respective regulatory programs 
will be coordinated in a manner that reduces or eliminates duplicative 
processes or decisionmaking, thereby reducing costs and time that would 
otherwise be required. Nothing in this paragraph is intended nor shall 
be construed to affect the requirements for the issuance of such 
permits and approvals.
    (b) Competitive Grant Program.--
            (1) General authority.--The Governance Board shall 
        undertake a competitive grant program to--
                    (A) investigate and identify opportunities for the 
                design and construction of demonstration and permanent 
                facilities to increase yield and improve water quality, 
                including--
                            (i) reclamation and reuse of municipal, 
                        industrial, domestic, and agricultural 
                        wastewater and impaired ground and surface 
                        waters;
                            (ii) new treatment technologies; and
                            (iii) source control programs;
                    (B) carry out design and construction of facilities 
                identified pursuant to subparagraph (A); and
                    (C) conduct research, including desalination, 
                regarding the reclamation of wastewater and impaired 
                ground and surface waters.
            (2) Limited to state of california.--Grants under the 
        program may only be made for projects carried out in the State 
        of California.
            (3) Evaluation criteria.--The Governance Board shall 
        consider the following criteria in determining the projects 
        eligible for funding under this subsection:
                    (A) Whether a project--
                            (i) increases yield; or
                            (ii) reduces or stabilizes demand on 
                        existing Federal and State water supply 
                        facilities.
                    (B) Whether a project improves surface or ground 
                water quality, or quality of effluent discharges to 
                receiving water bodies, except that those projects 
                whose main purpose is the sponsor's compliance with the 
                Federal Water Pollution Control Act shall not be 
                counted as achieving a Federal benefit.
                    (C) Whether a project--
                            (i) serves a small, rural, or economically 
                        disadvantaged community or Indian tribes;
                            (ii) shows economic benefits; and
                            (iii) is cost-effective.
                    (D) Whether a project restores or enhances 
                habitats, including those affected by or affecting 
                project operation or provide water for federally listed 
                threatened or endangered species.
                    (E) Whether a project meets existing legal and 
                contractual water supply obligations, including Indian 
                trust responsibilities, water rights settlements, 
                regional water quality control boards, department of 
                health, Federal and State environmental laws, the 
                Federal Water Pollution Control Act, or other 
                obligations.
                    (F) Whether a project promotes and applies a 
                regional or watershed perspective to water resource 
                management or cross-boundary issues, implements an 
                integrated resources management approach or forms a 
                collaborative partnership with other entities.
                    (G) Whether a project improves health and safety of 
                the general public.
            (4) Construction grants.--(A) No grant may be made under 
        this subsection for the construction of any project until 
        after--
                    (i) an appraisal investigation and a feasibility 
                study have been completed;
                    (ii) the Governance Board has determined that the 
                non-Federal project sponsor is financially capable of 
                funding the non-Federal share of the project's costs; 
                and
                    (iii) the Governance Board has approved a cost-
                sharing agreement with the non-Federal project sponsor 
                that commits the non-Federal project sponsor to funding 
                its share of the project's construction costs on an 
                annual basis.
            (B) The Governance Board shall notify the congressional 
        authorizing committees of projects recommended for grants under 
        this subsection. In such notification the Governance Board 
        shall certify that such an agreement has been signed and that 
        the Governance Board has determined that the non-Federal 
        project sponsor is financially capable of funding the project's 
        non-Federal share of the project's costs.
            (5) Cost sharing.--Notwithstanding any other provision of 
        this Act, the Federal share of the cost of a project carried 
        out with a grant under this subsection shall not exceed the 
        lesser of $50,000,000 (June 2000 prices) or 35 percent of the 
        total cost of the project.
    (c) Authorization of Appropriations.--
            (1) Competitive grant program.--For grants under subsection 
        (b), there are authorized to be appropriated to the Secretary--
                    (A) $50,000,000 for fiscal year 2002; and
                    (B) $328,000,000 for each fiscal year thereafter.
            (2) Implementation of calfed.--In addition to the other 
        amounts authorized by this Act, there are authorized to be 
        appropriated for activities that implement CALFED programs--
                    (A) for each of fiscal years 2003 through 2007--
                            (i) $100,000,000; and
                            (ii) such sums as may be necessary for 
                        construction; and
                    (B) for each of fiscal years 2008 through 2032--
                            (i) $20,000,000 for ecosystem restoration 
                        projects; and
                            (ii) such sums as may be necessary for 
                        construction projects to increase yield, 
                        including improving water quality.
            (3) Continuing availability.--Funds appropriated pursuant 
        to this subsection may remain available until expended.

SEC. 105. REQUIREMENT OF SPECIFIC CONGRESSIONAL AUTHORIZATION OF NEW 
              CALFED PROJECTS.

    (a) In General.--No amounts may be appropriated for a new CALFED 
project (including for grants under section 104(b)) unless the project 
has been specifically included in a report approved by all of the 
congressional authorizing committees in accordance with this section.
    (b) Submission of Funding Reports.--
            (1) In general.--The Governance Board, acting through the 
        Secretary and in cooperation with the State of California, 
        shall submit to the congressional authorizing committees with 
        annual reports under section 106(a) a separate report 
        containing recommendations of new CALFED projects for Federal 
        funding, including projects for funding with grants under 
        section 104(b).
            (2) Contents, generally.--For each project recommended 
        under paragraph (1), the annual report shall include--
                    (A) a project description;
                    (B) feasibility and operational studies;
                    (C) final environmental impact studies;
                    (D) finding of consistency with the record of 
                decision;
                    (E) cost-benefit analysis;
                    (F) identification of project benefits and 
                beneficiaries;
                    (G) cost allocation plan; and
                    (H) financing and repayment plans.
            (3) New projects required to be included.--The Governance 
        Board, through the Secretary, shall include in reports under 
        this subsection each of the following new CALFED projects, as 
        identified in the record of decision, by the dates indicated:
                    (A) A project to raise the height of Shasta Dam; by 
                January 1, 2004.
                    (B) In-Delta storage; by January 1, 2002.
                    (C) Enlarged Los Vaqueros Reservoir; by January 1, 
                2003.
                    (D) Sites Reservoir; by January 2005.
                    (E) San Joaquin River Storage; by January 2005.
                    (F) San Luis Bypass; by January 2004.
    (c) Congressional Approval.--
            (1) In general.--Each congressional authorizing committee 
        shall consider and approve or disapprove each report under 
        subsection (b).
            (2) Changes.--A congressional authorizing committee may 
        strike specific projects from such a report.
            (3) Reports deemed approved.--A report under subsection (b) 
        shall be considered approved unless disapproved by all of the 
        congressional authorizing committees within 60 days after the 
        date of submittal of the report.

SEC. 106. REPORTS.

    (a) Annual Report by Governance Board.--Not later than February 1 
of each year, the Governance Board shall submit to the Congress an 
annual report that includes the following:
            (1) State calfed program receipts.--An accounting of all 
        Federal funds received (or to be received) by the State of 
        California in the current fiscal year under the CALFED program, 
        including--
                    (A) a description of all projects and activities 
                carried out with such funds; and
                    (B) amounts received by the State that have not yet 
                been expended by the State.
            (2) Federal expenditures.--An accounting of all funds 
        expended (or to be expended) by the Secretary in the current 
        fiscal year under the CALFED program (in addition to the funds 
        accounted for under paragraph (1)), including--
                    (A) a description of all projects and activities 
                carried out with such funds; and
                    (B) amounts that were appropriated for the fiscal 
                year but not expended.
            (3) Assessment of achievements.--A description and 
        assessment of expenditures and achievements under the CALFED 
        program in the current fiscal year, including accomplishments 
        in achieving--
                    (A) increased water yield;
                    (B) environmental benefits; and
                    (C) improved water system reliability, water 
                quality, water use efficiency, watershed management, 
                water transfers, and levee protection.
            (4) Performance measures.--A clear statement of goals to 
        achieve, under the CALFED program--
                    (A) increased water yield;
                    (B) environmental benefits; and
                    (C) improved water system reliability, water 
                quality, water use efficiency, watershed management, 
                water transfers, and levee protection.
    (b) Annual Budget Crosscut Report.--Not later than February 1 of 
each year, the Director of the Office of Management and Budget shall 
submit to the Congress an interagency budget crosscut report that 
describes in detail--
            (1) all proposed and planned Federal expenditures in the 
        next fiscal year on ecosystem restoration and other purposes in 
        the Bay-Delta solution area; and
            (2) all proposed and planned State of California and 
        Federal expenditures in the next fiscal year to achieve the 
        objectives identified within the CALFED record of decision.
    (c) Summary of Expenditures to Date.--The Director of the Office of 
Management and Budget shall submit to the Congress, by not later than 
January 1, 2002, a report describing all Federal and State expenditures 
made before such date under the CALFED program.

SEC. 107. TREATMENT OF FUNDS.

    Funds authorized to be appropriated by this title to those Federal 
agencies that are currently or subsequently become participants in the 
CALFED program shall be in addition to the baseline funding levels 
established for currently authorized projects and programs under the 
Central Valley Project Improvement Act (title XXXIV of Public Law 102-
575) and other currently authorized Federal programs for the purposes 
of Bay-Delta ecosystem protection and restoration and water system and 
water quality improvement.

                  TITLE II--SMALL RECLAMATION PROJECTS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Small Reclamation Water Resources 
Project Act of 2001''.

SEC. 202. AMENDMENTS TO THE SMALL RECLAMATION PROJECTS ACT OF 1956.

    (a) Purpose.--The first section of the Small Reclamation Projects 
Act of 1956 (43 U.S.C. 422a) is amended by striking ``under the'' and 
inserting ``under this act and other'' and by adding the following at 
the end thereof: ``Such projects may include, but shall not be limited 
to, irrigation projects. Irrigation shall not be a required purpose for 
projects receiving assistance under this Act. In providing assistance, 
the Secretary shall give priority to recommended proposals which are 
related to presently authorized Reclamation projects that will benefit 
from the work carried out under this Act.''.
    (b) Definitions.--Section 2 of the Small Reclamation Projects Act 
of 1956 (43 U.S.C. 422b) is amended--
            (1) in subsection (c), by striking ``a State'' and 
        inserting ``an Indian Tribe, a State'';
            (2) by striking subsection (d) and inserting the following 
        new subsection (d):
    ``(d) The term `project' means one of the following:
            ``(1) A multi-purpose water resource development carried 
        out by a non-Federal organization involving significant 
        conservation of water, energy and the environment.
            ``(2) The rehabilitation, betterment, or retrofit of any 
        existing Federal or non-Federal water infrastructure for 
        purposes of complying with law and regulations.
            ``(3) An activity described in paragraph (1) or (2) that is 
        carried out by a non-Federal organization under the Federal 
        reclamation laws in one or more of the 17 western reclamation 
        States, Hawaii, Alaska, the Commonwealth of Puerto Rico, Guam, 
        American Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Virgin Islands, and the Trust Territory of the 
        Pacific Islands. Where such work is proposed for any existing 
        Reclamation project, such work shall be consistent with the 
        authorized purpose as determined by the Secretary.''; and
            (3) by striking subsection (f) and inserting the following 
        new subsection (f):
    ``(f) The term `water quality improvements' shall mean and involve 
those operational measures and physical features associated with--
            ``(1) the reclamation and reuse of irrigation drainage or 
        municipal and industrial return flows, including wastewater 
        flows; or
            ``(2) the reclamation, or control, of brackish, toxic, or 
        impaired waters for beneficial reuse or protection of other 
        related water, land, or environmental resources.''
    (c) Modification of Loan and Grant Programs.--The Small Reclamation 
Projects Act of 1956 is amended--
            (1) by striking sections 3 through 8 (43 U.S.C. 422c-422h); 
        and
            (2) by inserting after section 2 (43 U.S.C. 422b) the 
        following:

    ``TITLE I--STATE AND LOCAL PARTICIPATION IN RECLAMATION PROJECTS

``SEC. 101. ESTABLISHMENT OF GRANT AND LOAN PROGRAM.

    ``There is hereby established under this title a program within the 
Bureau of Reclamation, pursuant to which the Secretary may make grants 
and loan guarantees to organizations to carry out projects.

``SEC. 102. PROPOSAL CONTENTS AND REQUIREMENTS.

    ``(a) In General.--Any organization seeking assistance under this 
title shall submit a proposal to the Secretary in such form and manner 
as the Secretary may prescribe. Any proposal for a project submitted 
under this title shall set forth a plan and estimated cost in detail 
comparable to those included in preauthorization reports required for a 
Federal reclamation project.
    ``(b) Lands and Waters.--Each proposal submitted under this title 
shall include a statement of financial capability and legal authority, 
and a resolution from the governing board of the organization showing 
that the organization seeking assistance--
            ``(1) holds or can acquire all lands and interests in land 
        (except public and other lands and interest in land owned by 
        the United States which are within the administrative 
        jurisdiction of the Secretary and subject to disposition by the 
        Secretary) to complete the project;
            ``(2) holds or can acquire all rights, pursuant to 
        applicable State law, to the use of water necessary for the 
        successful construction, operation, and maintenance of the 
        project;
            ``(3) is willing to finance, and capable of financing, the 
        non-Federal portion of the costs of the project, which portion 
        shall include all costs of acquiring lands, interests in land, 
        and rights to the use of water, except as provided in section 
        105(b)(2); and
            ``(4) has the legal authority and responsibility under 
        State law to carry out such work.

``SEC. 103. FEDERAL SHARE AND PROJECT SPONSOR SHARE OF COSTS.

    ``(a) In General.--The Secretary shall require each organization 
receiving assistance under this title to contribute toward the cost of 
the project (other than by loan or grant of Federal funds) not less 
than 25 percent of the allowable estimated costs of the project. In 
determining the amount of such non-Federal contribution for the 
proposed project, the Secretary shall credit toward that amount--
            ``(1) the cost of investigations, surveys, engineering, 
        administration, and other services necessary for the 
        preparation of proposals and plans for the proposed project as 
        required by the Secretary;
            ``(2) the value of lands and rights-of-way acquisition 
        required for the proposed project;
            ``(3) amounts spent by the organization for construction or 
        acquisition of facilities for the proposed project prior to 
        project approval; and
            ``(4) the filing fee required by this Act.
    ``(b) Prevention of Loss and Damage to Fish and Wildlife.--The 
costs of measures to prevent loss of, and damage to, existing fish and 
wildlife resources shall be considered project costs and allocated as 
may be appropriate among project functions.
    ``(c) Maximum Allowable Federal Share.--The maximum allowable 
Federal share per project shall be $50,000,000, as of January 2001. The 
Secretary shall adjust such amount each year using the Bureau of 
Reclamation's composite construction cost trends index.
    ``(d) Increase in Amount.--To compensate for increases in 
construction costs due to price escalation, subject to the limitations 
allowed by subsection (c), the Secretary may increase the amount of the 
requested loan or grant, or both, at any time prior to the completion 
of construction of the project, using the Bureau of Reclamation's 
composite construction cost trends index.

``SEC. 104. APPROVAL OR DISAPPROVAL OF PROJECTS.

    ``Not later than one year after the date an initial project 
proposal is submitted to the Secretary under this title, the Secretary 
shall make a determination whether the proposal is financially feasible 
and constitutes a reasonable risk under the provisions of this title 
and either approve or disapprove the proposal. The Secretary shall 
promptly transmit any approved proposals to the Congress. The 
appropriate documentation under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) for the project shall be completed 
prior to Secretarial transmittal of the proposal to Congress.

``SEC. 105. CONTRACT TERMS AND CONDITIONS.

    ``(a) Maximum Amounts and Availability.--Upon approval of any 
project proposal submitted under this title, the Secretary shall 
negotiate a contract setting out the maximum amount of any grant, which 
shall not exceed 50 percent of the maximum allowable Federal share per 
grant or loan to be made to the organization, and the time and method 
of making such grant or loan available to the organization.
    ``(b) Loans.--
            ``(1) The contract for each loan under this title shall 
        contain such terms and conditions as the Secretary deems 
        necessary or proper to provide assurance of, and security for, 
        prompt repayment and to ensure achievement of the purposes for 
        which the loan was made. The contract shall include a plan for 
        repayment by the organization within 25 years, except that the 
        organization shall have the right to prepay the loan or any 
        component thereof without penalty.
            ``(2) The contract for each loan under this title shall 
        require payment of interest and the repayment of the principal 
        of each loan. The Secretary shall fix the interest at a rate 
        determined as of the beginning of the fiscal year in which the 
        contract is executed. The rate shall be based on the average 
        market yield on outstanding marketable obligations of the 
        United States with periods of maturity comparable to the 
        applicable repayment period of the loan.
    ``(c) Loans Projects by Indian Tribes.--
            ``(1) In general.--For projects undertaken by Indian 
        tribes, the Secretary shall--
                    ``(A) determine, based on the findings in the 
                proposal under section 102, the reimbursable and 
                nonreimbursable costs for projects constructed under 
                this Act;
                    ``(B) apportion those costs in accordance with the 
                benefits received; and
                    ``(C) allocate the reimbursable costs to the 
                project beneficiaries.
            ``(2) Treatment of costs in excess of repayment 
        capability.--Such costs that are determined by the Secretary to 
        be in excess of the repayment capability of an Indian tribe 
        shall be nonreimbursable.

                    ``TITLE II--PARTNERSHIP PROGRAM

``SEC. 201. ESTABLISHMENT OF PARTNERSHIP PROGRAM.

    ``(a) Program.--There is hereby established within the Bureau of 
Reclamation a small grant and loan program to be known as the Small 
Reclamation Water Resources Management Partnership Program, to be 
carried out under this title. The purpose of this program shall be to 
implement projects that can be performed--
            ``(1) by the recipient organization's workforce or 
        contractors,
            ``(2) with streamlined documentation, and
            ``(3) in a period of 18 months or less.
    ``(b) Grants.--Grants under this title shall not exceed $5,000,000 
for any one project under such program, and shall be matched on a 50-
percent basis of total eligible cost by the organization.
    ``(c) Loans.--Loans under this title shall not exceed $5,000,000 
per project, and shall be subject to cost sharing in the same manner as 
provided in title I. The contract for each loan under this title shall 
require payment of interest and repayment of the principal. The 
Secretary shall fix the interest rate in the same manner as provided in 
section 105(c)(2) for loans under title I.
    ``(d) Limitation.--The Secretary is authorized to use up to 
$50,000,000 of the amount available under this Act for the purposes of 
this title.

``SEC. 202. REPAYMENT OF LOANS.

    ``Once work is certified complete by the Secretary, each loan made 
under this title shall be repaid within a 5-year period.

``SEC. 203. ACTIVITIES ELIGIBLE UNDER THE SMALL RECLAMATION WATER 
              RESOURCES PARTNERSHIP.

    ``(a) In General.--The following types of activities shall be 
eligible for grants or loans under this title:
            ``(1) Water conservation.
            ``(2) Water quality improvement projects.
            ``(3) Water management for urban landscapes.
            ``(4) Drought assistance.
            ``(5) Fish and wildlife improvements.
            ``(6) Public safety improvements.
            ``(7) Water supply, including but not limited to, 
        production, conveyance, conservation, and management.
    ``(b) Additional Activities.--The Secretary may add to the list 
referred to in subsection (a) as he deems appropriate, except that any 
such addition shall not take effect until 60 days after the Secretary 
publishes a notice of the proposed addition in the Federal Register, 
and has notified the Committee on Resources of the House of 
Representatives and the Committee on Energy and Natural Resources of 
the United States Senate in writing of the proposed addition and the 
reasons therefore.

``SEC. 204. APPLICATION PROCESS.

    ``(a) Notice of Intent.--Each organization seeking a grant or loan 
under this title shall submit a Notice of Intent to the Secretary by 
April 1 of each year outlining the proposed project and the public 
benefits thereof. Within two months, the Secretary shall provide a 
written response to the applicant, either affirming or rejecting the 
Bureau of Reclamation's interest in participating in the project.
    ``(b) Notice of Federal Interest.--Upon notification of the Bureau 
of Reclamation's interest, the organization seeking assistance under 
this title shall have the option of proceeding with an appropriate loan 
or grant application giving details of the project and the anticipated 
public benefits.
    ``(c) Contents.--The contents of any project proposal under this 
title shall include, but need not be limited to, each of the following:
            ``(1) A resolution by the board of directors of the 
        qualifying organization stating--
                    ``(A) the total estimated project cost;
                    ``(B) the amount of the grant or loan requested;
                    ``(C) the amount of the non-Federal contribution 
                for the grant;
                    ``(D) the organization's ability to finance and 
                construct the project; and
                    ``(E) the project objectives.
            ``(2) A summary of the proposal.
            ``(3) A brief description of the anticipated effects of the 
        project on the environment.
            ``(4) Evidence that the organization seeking assistance 
        under this title has all lands and water rights needed for the 
        project, or can obtain them and has legal authority and 
        responsibility under state law to carry out such work in the 
        project plan.
            ``(5) A description of the project plan, including a 
        general map showing the location of proposed physical features, 
        conceptual engineering drawings of major and typical 
        structures, and general standards for design.
            ``(6) A construction schedule, with dates and schedule of 
        funding requirements under this title, in sufficient detail to 
        provide an analysis of the proposed construction program.
            ``(7) An identification of those portions of the project 
        costs which constitute the Federal grant or loan amounts and 
        the applicant's local contribution.
    ``(d) Costs.--The cost of any investigations and preparation of any 
environmental documentation shall be borne by the project applicant and 
any such costs shall be credited as part of the local cost share for 
grant funding.
    ``(e) Annual Listing.--The Secretary shall include in the annual 
budget justification for the Bureau of Reclamation, a listing of the 
activities and total funding required for work committed under this 
title.

``SEC. 205. TERMS AND CONDITIONS OF PROJECT WORK.

    ``The Secretary shall examine the proposal submitted under this 
title to determine if the project can reasonably be expected to 
accomplish its purpose, and approve or disapprove such proposal by 
September 1 of each year. Once approved by the Secretary and subject to 
the availability of appropriations, funding shall be provided within 60 
days for the schedule of work within that fiscal year.

``SEC. 206. ELIGIBILITY.

    ``Such proposals shall only be made by organizations that have 
legal authority and responsibility for such work to be carried out on 
those projects under state law. Only one proposal per project area 
shall be allowed per every five year period.

                      ``TITLE III--LOAN GUARANTEES

``SEC. 301. ESTABLISHMENT OF LOAN GUARANTEE PROGRAM.

    ``There is hereby established within the Bureau of Reclamation a 
demonstration program to guarantee loans for projects receiving, or 
eligible to receive, loans, or grants under title I or II of this Act.

``SEC. 302. PROGRAM REQUIREMENTS.

    ``(a) In General.--The Secretary may provide support under the 
demonstration program to organizations through the provision of loan 
guarantees to such programmatic needs as authorized under titles I and 
II, under such terms and conditions specified in this section and under 
applicable laws. Any proposal for a project submitted under this title 
shall set forth a plan and estimated costs in detail comparable to 
those included in preauthorization reports required for a Federal 
reclamation project.
    ``(b) Funding Limit.--Up to 10 percent of the amounts authorized to 
be appropriated under this Act shall be set aside for purposes of 
funding the cost of loan guarantees under this title. The amounts 
allocated to each loan guarantee shall be the cost of such guarantee 
calculated in accordance with applicable provisions of Federal law.
    ``(c) Selection of Recipients.--The Secretary shall adopt and use 
competitive procedures in the selection of organizations to receive 
loan guarantees under this section. In selecting the organizations to 
receive a loan guarantee under this section, the Secretary shall 
consider, at a minimum, the following:
            ``(1) The extent to which the loan guarantees would support 
        new water supplies or more efficient use of existing supplies.
            ``(2) The repayment period of the guaranteed loan.
            ``(3) The extent to which the loan guarantee would provide 
        for a project of wide public purpose.
            ``(4) Whether the loan guarantee would help the 
        organization receiving the guarantee meet a Federal or State 
        environmental statute or mandate.
            ``(5) The ability of the loan guarantee to meet the needs 
        of other local water purveyors.
            ``(6) The extent to which the guaranteed loan would support 
        a program that would supplement, rather than duplicate, other 
        available water resource programs.
            ``(7) The fiscal impact of the loan guarantee program as a 
        whole on other reclamation programs.
    ``(d) Apportionment.--The total amount made available to the 
Secretary for a fiscal year to cover the costs of loan guarantees under 
this section shall be divided between projects receiving or eligible to 
receive loans under titles I and II, with title I projects receiving 75 
percent and title II projects receiving 25 percent.
    ``(e) Maximum.--The maximum allowable guarantee percentage for 
loans guaranteed under this section may be up to 75 percent of the 
total project cost. No loan guarantee under this title shall be used to 
cover the organization's local cost share for any project assisted 
under this Act.
    ``(f) Reporting.--Reporting and documentation requirements 
authorized under amendments contained in titles I and II shall 
similarly apply to loan guarantee projects.
    ``(g) State Law.--For purposes of this Act, when any bonds are 
issued by an organization to help finance a project for which the 
organization is also receiving a loan guarantee under this section such 
bonds shall not be treated as affecting the tax-exempt status of such 
bonds under applicable State law.
    ``(h) Full Faith and Credit.--Any loan guarantee issued pursuant to 
this section shall constitute an obligation, in accordance with the 
terms of such guarantee, of the United States Government, and the full 
faith and credit of the United States is hereby pledged to the full 
performance of the obligations.
    ``(i) Report.--At the end of the third fiscal year after the 
enactment of this Act, the Secretary shall submit a report to the 
Congress on the beneficial use and suggested improvements associated 
with the use of loan guarantees as a mechanism for project 
construction.

``SEC. 303. SUNSET.

    ``No loan guarantee may be issued under this title in any fiscal 
year after the expiration of 6 full fiscal years after initial funding 
of projects under the amendments made by the Small Reclamation Water 
Resources Project Act of 2001.

                     ``TITLE IV--GENERAL PROVISIONS

``SEC. 401. PROPOSAL FEE.

    ``Each proposal for a loan, grant, or loan guarantee under this Act 
shall be accompanied by a minimum payment of $5,000 or \1/10\ of 1 
percent of the Federal share, whichever is greater, or portion thereof 
to defray in part the costs of examining the proposal. Fifty percent of 
the payment shall accompany the application and the remaining 50 
percent shall be due upon approval of the project by the Secretary, if 
approved.

``SEC. 402. MISCELLANEOUS PROVISIONS.

    ``(a) Title.--Title to all project works and facilities constructed 
with assistance under this Act shall remain in the name of the 
organization.
    ``(b) Combined Loans, Grants, and Loan Guarantees.--A project 
sponsor shall be eligible for a loan, grant, loan guarantee, or 
combination thereof for a project proposal under this Act. No 
organization shall be eligible for an additional loan, grant, loan 
guarantee, or any combination thereof for the same project that has 
previously received approval for a loan, grant, or loan guarantee under 
this Act within the prior five fiscal years.
    ``(c) Planning, Construction, Operation, and Maintenance.--The 
United States shall not be required to provide planning, construction, 
operation, and maintenance of any project receiving a loan, grant or 
loan guarantee under this Act.
    ``(d) State Water Law.--Any project assisted under this Act shall 
be carried out in accordance with applicable State water law.''.
    (d) Conforming Amendments.--
            (1) Sections 9 through 13 of the Small Reclamation Projects 
        Act of 1956 (43 U.S.C. 422i-422k-1) are redesignated as 
        sections 403 through 407, respectively.
            (2) Section 404 of such Act, as redesignated by paragraph 
        (1) of this subsection, is amended as follows:
                    (A) By striking ``section 3'' and inserting ``title 
                I''.
                    (B) By striking ``effective October 1, 1986.'' and 
                inserting ``for any fiscal year''.
                    (C) By striking ``for loans and grants pursuant to 
                this Act'' and inserting ``for loans and grants 
                pursuant to title I''.
                    (D) By striking ``five years after the date of 
                enactment of this Act'' and inserting ``ten years after 
                the date of enactment of the Small Reclamation Water 
                Resources Project Act of 2001''.
                    (E) By striking ``section 4(c)'' and inserting 
                ``title I''.

SEC. 203. ADDITIONAL APPROPRIATIONS.

    Section 404 of the Small Reclamation Projects Act of 1956 (43 
U.S.C. 422j), as redesignated by section 202(d)(1) of this Act, is 
further amended--
            (1) by striking ``such sums'' and all that follows through 
        ``That the Secretary'' and inserting ``to carry out this Act 
        $1,300,000,000 for fiscal years after fiscal year 2001, of 
        which $800,000,000 may be appropriated to carry out title I, 
        $300,000,000 may be appropriated to carry out title II, and 
        $100,000,000 may be appropriated to carry out title III. The 
        Secretary''; and
            (2) by striking ``any single State'' and all that follows 
        through ``the Secretary is authorized to waive'' and inserting 
        ``in any single State. Funds obligated or expended for projects 
        by Indian tribes shall not be considered for purposes of the 
        preceding sentence. The Secretary may waive''.

SEC. 204. GUIDELINES.

    Within 180 days after the date of enactment of this Act, the 
Secretary of the Interior shall complete and publish in the Federal 
Register such administrative guidelines as may be necessary to carry 
out the amendments made by this title.

SEC. 205. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
enactment of this Act. Nothing in this title or in any amendment made 
by this title shall affect any loan or grant that has been approved 
before the date of enactment of this Act.

SEC. 206. LIMITATION.

    Activities funded under this title shall not be considered a 
supplemental or additional benefit under the Act of June 17, 1902 (82 
Stat. 388), and all Acts amendatory thereof or supplementary thereto.
                                 <all>
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