I

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.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Western Water En5 hancement Security Act’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

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.

8 SEC. 3. PURPOSES.

9 The purposes of this Act are the following:

10 (1) To authorize funding, through the Secretary

11 of the Interior, for the implementation of a com12 prehensive program to achieve increased water yield

13 and environmental benefits as well as improved

14 water system reliability, water quality, water use ef-
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1 ficiency, watershed management, water transfers,

2 and levee protection for California.

3 (2) To ensure that the Secretary of the Interior

4 and the State of California, through a State and

5 congressionally authorized Governance Board, con6 tinue the implementation of ecosystem protection

7 programs, and development of water supply enhance8 ment projects, as described in the CALFED record

9 of decision, and other programs authorized under

10 this Act.

11 SEC. 4. DEFINITIONS.

12 As used in this Act:

13 (1) BAY-DELTA SOLUTION AREA.—The term

14 ‘‘Bay-Delta solution area’’ means the Bay-Delta wa15 tershed and the San Francisco Bay/Sacramento-San

16 Joaquin Delta Estuary, California, and the areas in

17 which diverted/exported water is used.

18 (2) BAY-DELTA WATERSHED.—The term ‘‘Bay19 Delta watershed’’ means the Sacramento Valley-San

20 Joaquin River Delta, California, and the rivers and

21 watersheds that are tributary to that Delta.

22 (3) CALFED AGENCIES.—The term

23 ‘‘CALFED agencies’’ means both the Federal agen24 cies and the State agencies.
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1 (4) CALFED PROGRAM.—The term ‘‘CALFED

2 program’’ means the cooperative, interagency effort

3 of 18 State and Federal agencies with management

4 or regulatory responsibilities for the Bay-Delta solu5 tion area as set forth in the record of decision, in6 cluding complementary actions (as that term is de7 fined in the record of decision).

8 (5) CONGRESSIONAL APPROPRIATIONS COMMIT9 TEES.—The term ‘‘congressional appropriations

10 committees’’ means the Subcommittee on Energy

11 and Water Development of the Committee on Appro12 priations of the Senate and the Subcommittee on

13 Energy and Water Development of the Committee

14 on Appropriations of the House of Representatives.

15 (6) CONGRESSIONAL AUTHORIZING COMMIT16 TEES.—The term ‘‘congressional authorizing com17 mittees’’ means the Committee on Energy and Nat18 ural Resources of the Senate and the Committee on

19 Resources of the House of Representatives.

20 (7) ECOSYSTEM RESTORATION PROGRAM.—The

21 term ‘‘Ecosystem Restoration Program’’ means such

22 program under the record of decision.

23 (8) ENVIRONMENTAL WATER ACCOUNT.—The

24 term ‘‘Environmental Water Account’’ means the

25 water account established by the CALFED agencies
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1 to provide water for the protection and recovery of

2 species of fish listed under section 4(c) of the En3 dangered Species Act of 1973 (16 U.S.C. 1533(c))

4 at no direct cost and no indirect cost to the water

5 users, in the Bay-Delta watershed and export areas.

6 (9) FEDERAL AGENCIES.—The term ‘‘Federal

7 agencies’’ means the Federal agencies as identified

8 in the record of decision.

9 (10) GOVERNANCE BOARD.—The term ‘‘Gov10 ernance Board’’ means the joint structure estab11 lished under section 102(a)(1).

12 (11) RECORD OF DECISION.—The term ‘‘record

13 of decision’’ means the Federal record of decision

14 issued August 28, 2000, pursuant to the National

15 Environmental Policy Act of 1969 for the CALFED

16 Bay-Delta Program Final Programmatic Environ17 mental Impact Statement.

18 (12) SECRETARY.—The term ‘‘Secretary’’

19 means the Secretary of the Interior.

20 (13) STATE AGENCIES.—The term ‘‘State agen21 cies’’ means the State agencies as identified in the

22 record of decision.

23 (14) YIELD.—The term ‘‘yield’’ means a quan24 tity of water supply derived from—

25 (A) recycling existing sources;
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1 (B) reservoirs; or

2 (C) other water management tools that—

3 (i) generate additional or new water

4 supplies by means that are readily avail5 able in critically dry years;

6 (ii) improve system capacity;

7 (iii) improve operational flexibility; or

8 (iv) improve water quality.

9 TITLE I—SHORT-TERM AND

10 LONG-TERM CALIFORNIA

11 WATER SECURITY

12 SEC. 101. SHORT-TERM GOVERNANCE UNDER INTERIM

13 GOVERNANCE STRUCTURE.

14 (a) IN GENERAL.—The Federal agencies and State

15 agencies shall continue to operate under the interim gov16 ernance structure as described in Attachment 3 of the

17 record of decision, and in accordance with section 103 of

18 this Act, until July 1, 2002.

19 (b) SHORT-TERM PROGRAM FUNDING.—

20 (1) AUTHORIZATION OF APPROPRIATIONS.—For

21 studies, environmental review, design, and other

22 preconstruction or preacquisition activities for all

23 CALFED program elements, including complemen24 tary actions, there is authorized to be appropriated

25 to the Secretary under this section $100,000,000 for
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1 fiscal year 2002. Funds appropriated pursuant to

2 this section may remain available until expended.

3 (2) EQUAL FUNDING.—In meeting the need for

4 balance, the Interim Governance Board shall ensure

5 that equal funding is provided for funding for in6 creased yield and for environmental benefits in fiscal

7 year 2002, and adequate progress is made in im8 proving water system reliability, water quality, water

9 use efficiency, watershed management, water trans10 fers, and levee protection.

11 (c) WATER SUPPLY STUDIES.—

12 (1) IN GENERAL.—The Secretary, acting

13 through the Bureau of Reclamation, shall conduct a

14 study of available water supplies and existing

15 demand—

16 (A) within the units of the Central Valley

17 Project; and

18 (B) within the area served by Central Val19 ley Project agricultural water service contrac20 tors.

21 (2) REPORT.—The Secretary shall submit a re22 port to the congressional authorizing committees by

23 not later than May 31, 2002, describing the findings

24 of the studies. The report shall describe—
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1 (A) water supply improvements, if any, for

2 Central Valley Project agricultural water service

3 contractors that would result from projects de4 scribed in the record of decision; and

5 (B) all feasible water management actions

6 or supply projects that, if taken or constructed,

7 respectively, would balance available water sup8 plies and existing demand for those contractors.

9 (3) FEASIBLE DEFINED.—For purposes of

10 paragraph (2), the term ‘‘feasible’’ means capable of

11 being accomplished in a successful manner within a

12 reasonable period of time, taking into account eco13 nomic, environmental, social, and technological fac14 tors.

15 SEC. 102. LONG-TERM GOVERNANCE AND MONITORING.

16 (a) ESTABLISHMENT OF GOVERNANCE BOARD.—

17 (1) IN GENERAL.—The Secretary and the State

18 of California shall develop a joint structure, to be

19 known as the ‘‘Governance Board’’, for managing

20 CALFED program operations and a competitive

21 water grant program in accordance with section 104.

22 (2) DEVELOPMENT AND SUBMITTAL OF PRO23 POSAL.—For purposes of paragraph (1)—

24 (A) the Federal agencies shall participate

25 with the State agencies to develop a proposed
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1 joint structure to be authorized by the Congress

2 and the California Legislature before becoming

3 effective; and

4 (B) the Secretary shall submit a proposal

5 to establish such a joint structure to the Con6 gress and the California Legislature by July 1,

7 2002.

8 (3) PUBLIC PARTICIPATION.—The Federal

9 agencies shall take steps that will encourage broad

10 public, tribal, and local government involvement in

11 developing the proposal. Whenever feasible, meetings

12 of multiple State agencies and Federal agencies to

13 develop program goals or determine operational cri14 teria shall be open to the public.

15 (4) LIMITATION ON APPROPRIATIONS.—No

16 amounts may be appropriated for any fiscal year

17 after fiscal year 2003 to implement the record of de18 cision, including for grants under section 104(b) and

19 other activities to carry out the CALFED program,

20 if there has not been enacted by the Congress a law

21 establishing the Governance Board.

22 (b) PROGRAM RESPONSIBILITIES.—The joint struc23 ture proposed under this section shall provide the fol24 lowing:
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1 (1) The Governance Board shall direct the im2 plementation of the record of decision and the com3 petitive grant program under section 104(b).

4 (2) The Governance Board shall ensure that all

5 relevant Federal programs authorized under this Act

6 and other preexisting authorities, including pro7 grams authorized by the Central Valley Project Im8 provement Act (106 Stat. 4706 et seq.), coordinate

9 and integrate goalsetting, funding, and implementa10 tion with CALFED programs so as to ensure the

11 most biologically effective and cost-effective expendi12 ture of Federal funds and resources for CALFED

13 program-related activities. The United States shall

14 continue coordinated consultations and negotiations

15 with the State of California pursuant to the cost

16 sharing agreement required by section 78684.10 of

17 California Senate Bill 900, Chapter 135, Statutes of

18 1996, signed by the Governor of California on July

19 11, 1996.

20 (c) PROMOTION OF PARTNERSHIPS.—The joint

21 structure proposed under this section shall provide the fol22 lowing:

23 (1) The Governance Board shall seek out and

24 promote partnerships with local interests and pro-
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1 grams that seek to integrate various management

2 options so as to maximize the final resource benefits.

3 (2) The Governance Board shall cooperate and

4 undertake joint activities with local public agencies,

5 Indian tribes, private water users, and landowners

6 pursuant to the record of decision. Such activities

7 shall include, but not be limited to, planning, design,

8 technical assistance, construction projects, and the

9 development of an independent peer review science

10 program.

11 (d) MONITORING.—The joint structure proposed

12 under this section shall provide that the Governance

13 Board shall—

14 (1) provide ecological monitoring plans and pro15 tocols to be used for gauging cost-effective perform16 ance of projects funded under this title relative to

17 the stated ecological goals; and

18 (2) ensure that monitoring data collected for

19 projects funded by the Central Valley Project Im20 provement Act Restoration Fund and other relevant

21 authorities are compatible and designed to measure

22 overall trends in ecosystem health in the Bay-Delta

23 solution area.
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1 (e) OBJECTIVE REVIEW AND ANALYSIS.—The joint

2 structure proposed under this section shall provide that

3 the Governance Board shall ensure that—

4 (1) all aspects of the CALFED program com5 ponents, including the competitive grants program

6 under section 104(b), use credible and objective sci7 entific review and economic analysis; and

8 (2) recommendations of the Governance Board

9 are based on the best available, independent peer-re10 viewed information.

11 (f) PRELIMINARY REQUIREMENTS.—The joint struc12 ture proposed under this section shall provide that—

13 (1) before acquiring land as part of the

14 CALFED program, the Governance Board shall first

15 determine that existing Federal land is not available

16 to achieve identified CALFED program objectives;

17 and

18 (2) in determining whether to acquire addi19 tional lands for the CALFED program, the Govern20 ance Board, through the Secretary, shall—

21 (A) consider the cumulative impact on the

22 local government and communities of transfer23 ring the property into government ownership;

24 and

25 (B) mitigate such impacts.
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1 (g) ACHIEVEMENT OF GOALS OF RECORD OF DECI2 SION.—The joint structure proposed under this section

3 shall provide that the Governance Board shall partner

4 with landowners and local agencies to develop cooperating

5 landowner commitments that will meet coequal objectives

6 of achieving local economic and social goals and to imple7 ment the ecosystem restoration goals in the record of deci8 sion.

9 (h) COMPLIANCE WITH STATE LAW.—The joint

10 structure proposed under this section shall provide that

11 in carrying out this Act the Governance Board shall oper12 ate in compliance with California water law. Nothing in

13 this Act shall be construed to invalidate or preempt State

14 environmental, land use, or water law.

15 SEC. 103. CALIFORNIA WATER SUPPLY SECURITY.

16 (a) WATER SYSTEM IMPROVEMENTS.—

17 (1) IN GENERAL.—The Federal agencies, acting

18 through the CALFED program, shall develop a bal19 anced and timely program to achieve increased yield

20 and environmental benefits as well as improved

21 water system reliability, water quality, water use ef22 ficiency, watershed management, water transfers,

23 and levee protection.

24 (2) WATER SYSTEM IMPROVEMENTS.—The

25 Federal agencies shall ensure that Federal participa-
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1 tion in the CALFED program results in continuous,

2 measurable, and significant benefits to achieve in3 creased yield and environmental benefits as well as

4 improved water system reliability, water quality,

5 water use efficiency, watershed management, water

6 transfers, and levee protection for agricultural and

7 urban uses throughout the Bay-Delta solution area.

8 In developing water supply options the Federal

9 agencies and State agencies shall consider all poten10 tial storage alternatives and utilize a cost/benefit

11 analysis in conjunction with environmental criteria

12 to ensure that proposals are selected that address

13 environmental issues and are economically viable.

14 (3) WATER DELIVERIES.—In accordance with

15 the record of decision, the Secretary shall operate

16 the Central Valley Project in a manner that will in

17 a normal year make available to south-of-Delta Cen18 tral Valley Project agricultural water service con19 tractors at least 70 percent of their existing con20 tract. In years that are other than normal, the Cen21 tral Valley Project shall be operated to accomplish

22 water supply improvements to south-of-Delta Cen23 tral Valley Project agricultural water service con24 tractors that are comparable to the targeted normal25 year supply improvements. The increased supply for
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1 south-of-Delta Central Valley Project agricultural

2 water service contractors shall be accomplished with3 out reducing deliveries to other water agencies that

4 rely on water diverted from the Bay-Delta watershed

5 or degrading the quality of water diverted from the

6 Bay-Delta watershed for municipal and industrial

7 uses. For purposes of application of this section to

8 the 2002 water year, the term ‘‘normal-year’’ means

9 a water year in which the Sacramento Valley Index

10 is within 5 percent of 7.8 million acre feet as defined

11 by the State Water Resource Control Board Water

12 Quality Control Plan 95–1WR. The Secretary shall

13 develop, in consultation with affected interests, a

14 definition of a ‘‘normal year’’ for use in water years

15 after the 2002 water year. The Secretary shall also

16 develop, by no later than July 1, 2002, and in con17 sultation with affected interests, an operations plan

18 (with associated protocols) describing the manner in

19 which the requirements of this section will be

20 achieved.

21 (4) BANKS PUMPING PLANT.—In accordance

22 with the record of decision, the Federal agencies

23 shall—

24 (A) cooperate with the State to increase

25 pumping limits at the Banks Pumping Plant in
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1 accordance with the schedule established in the

2 record of decision, or earlier if feasible; and

3 (B) manage the Environmental Water Ac4 count and the Ecosystem Restoration Program

5 to maximize the water supply benefits to be

6 provided by the increased pumping capability.

7 (b) ENVIRONMENTAL WATER MANAGEMENT.—

8 (1) MANAGEMENT OF ENVIRONMENTAL WATER

9 ACCOUNT.—The Federal agencies and State agencies

10 shall manage the Environmental Water Account and

11 the Ecosystem Restoration Program under the

12 record of decision as part of a comprehensive plan

13 to provide assurances that actions taken to protect

14 species listed under section 4(c) of the Endangered

15 Species Act of 1973 (16 U.S.C. 1533(c)), pursuant

16 to biological opinions and incidental take permits

17 under that Act, will be carried out in a manner

18 that—

19 (A) avoids water supply and water quality

20 impacts to the Central Valley Project and the

21 State Water Project; and

22 (B) avoids effects on the water right hold23 ers in the Bay-Delta solution area.

24 (2) ENVIRONMENTAL WATER ACCOUNT PRIOR25 ITIES AND OPERATION.—The Secretary shall give
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1 first priority in the allocation and use of Environ2 mental Water Account and the Ecosystem Restora3 tion Program assets actually obtained or developed

4 to meeting the water supply assurances set forth in

5 paragraph (1). If, by December 31 of any year, the

6 Environmental Water Account water purchase tar7 gets, or their functional equivalents, have not been

8 met, the Federal agencies shall continue their efforts

9 to meet the water purchase targets and shall make

10 use of the available Environmental Water Account

11 assets to avoid jeopardizing the continued existence

12 of any species listed under section 4(c) of the En13 dangered Species Act of 1973 (16 U.S.C. 1533(c))

14 in a manner consistent with minimizing water supply

15 and water quality impacts. If the efforts to meet the

16 water purchase targets are unsuccessful, the max17 imum responsibility of water service contractors of

18 the State Water Project and the Central Valley

19 Project to provide water for Environmental Water

20 Account ‘‘Tier 2’’ purposes (as that term is defined

21 in the record of decision) shall be the difference be22 tween the Environmental Water Account purchase

23 targets and the amount of water actually acquired.

24 (c) LAND ACQUISITION; MANAGEMENT PLAN RE25 QUIRED FOR EXISTING LANDS.—The State agencies and
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1 the Federal agencies may not, under the interim govern2 ance structure described in Attachment 3 of the record

3 of decision, acquire any additional lands for ecosystem res4 toration unless such agencies, through the Secretary and

5 by not later than January 1, 2003, develop a management

6 plan for all lands acquired by such agencies under such

7 structure before the date of the enactment of this Act.

8 SEC. 104. IMPLEMENTATION OF RECORD OF DECISION.

9 (a) IN GENERAL.—

10 (1) IMPLEMENTATION OF THE RECORD OF DE11 CISION.—The Federal agencies, in carrying out their

12 regulatory responsibilities under any Federal law,

13 shall not—

14 (A) treat one CALFED program element

15 as an alternative to another CALFED program

16 element; or

17 (B) consider, as an alternative to one ele18 ment of the CALFED program, implementation

19 of any other element of the CALFED program

20 beyond the levels described in the record of de21 cision.

22 (2) REGULATORY COORDINATION.—The Sec23 retary, working with the Governor of the State of

24 California, shall develop a regulatory coordination

25 and streamlining process for the issuance of permits
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1 and approvals required under State and Federal law

2 for projects under the CALFED program, to ensure

3 that all Federal agencies’ and State agencies’ respec4 tive regulatory programs will be coordinated in a

5 manner that reduces or eliminates duplicative proc6 esses or decisionmaking, thereby reducing costs and

7 time that would otherwise be required. Nothing in

8 this paragraph is intended nor shall be construed to

9 affect the requirements for the issuance of such per10 mits and approvals.

11 (b) COMPETITIVE GRANT PROGRAM.—

12 (1) GENERAL AUTHORITY.—The Governance

13 Board shall undertake a competitive grant program

14 to—

15 (A) investigate and identify opportunities

16 for the design and construction of demonstra17 tion and permanent facilities to increase yield

18 and improve water quality, including—

19 (i) reclamation and reuse of munic20 ipal, industrial, domestic, and agricultural

21 wastewater and impaired ground and sur22 face waters;

23 (ii) new treatment technologies; and

24 (iii) source control programs;
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1 (B) carry out design and construction of

2 facilities identified pursuant to subparagraph

3 (A); and

4 (C) conduct research, including desalina5 tion, regarding the reclamation of wastewater

6 and impaired ground and surface waters.

7 (2) LIMITED TO STATE OF CALIFORNIA.—

8 Grants under the program may only be made for

9 projects carried out in the State of California.

10 (3) EVALUATION CRITERIA.—The Governance

11 Board shall consider the following criteria in deter12 mining the projects eligible for funding under this

13 subsection:

14 (A) Whether a project—

15 (i) increases yield; or

16 (ii) reduces or stabilizes demand on

17 existing Federal and State water supply fa18 cilities.

19 (B) Whether a project improves surface or

20 ground water quality, or quality of effluent dis21 charges to receiving water bodies, except that

22 those projects whose main purpose is the spon23 sor’s compliance with the Federal Water Pollu24 tion Control Act shall not be counted as achiev25 ing a Federal benefit.
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1 (C) Whether a project—

2 (i) serves a small, rural, or economi3 cally disadvantaged community or Indian

4 tribes;

5 (ii) shows economic benefits; and

6 (iii) is cost-effective.

7 (D) Whether a project restores or enhances

8 habitats, including those affected by or affect9 ing project operation or provide water for feder10 ally listed threatened or endangered species.

11 (E) Whether a project meets existing legal

12 and contractual water supply obligations, in13 cluding Indian trust responsibilities, water

14 rights settlements, regional water quality con15 trol boards, department of health, Federal and

16 State environmental laws, the Federal Water

17 Pollution Control Act, or other obligations.

18 (F) Whether a project promotes and ap19 plies a regional or watershed perspective to

20 water resource management or cross-boundary

21 issues, implements an integrated resources

22 management approach or forms a collaborative

23 partnership with other entities.

24 (G) Whether a project improves health and

25 safety of the general public.
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1 (4) CONSTRUCTION GRANTS.—(A) No grant

2 may be made under this subsection for the construc3 tion of any project until after—

4 (i) an appraisal investigation and a feasi5 bility study have been completed;

6 (ii) the Governance Board has determined

7 that the non-Federal project sponsor is finan8 cially capable of funding the non-Federal share

9 of the project’s costs; and

10 (iii) the Governance Board has approved a

11 cost-sharing agreement with the non-Federal

12 project sponsor that commits the non-Federal

13 project sponsor to funding its share of the

14 project’s construction costs on an annual basis.

15 (B) The Governance Board shall notify the con16 gressional authorizing committees of projects rec17 ommended for grants under this subsection. In such

18 notification the Governance Board shall certify that

19 such an agreement has been signed and that the

20 Governance Board has determined that the non-Fed21 eral project sponsor is financially capable of funding

22 the project’s non-Federal share of the project’s

23 costs.

24 (5) COST SHARING.—Notwithstanding any

25 other provision of this Act, the Federal share of the
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1 cost of a project carried out with a grant under this

2 subsection shall not exceed the lesser of $50,000,000

3 (June 2000 prices) or 35 percent of the total cost

4 of the project.

5 (c) AUTHORIZATION OF APPROPRIATIONS.—

6 (1) COMPETITIVE GRANT PROGRAM.—For

7 grants under subsection (b), there are authorized to

8 be appropriated to the Secretary—

9 (A) $50,000,000 for fiscal year 2002; and

10 (B) $328,000,000 for each fiscal year

11 thereafter.

12 (2) IMPLEMENTATION OF CALFED.—In addition

13 to the other amounts authorized by this Act, there

14 are authorized to be appropriated for activities that

15 implement CALFED programs—

16 (A) for each of fiscal years 2003 through

17 2007—

18 (i) $100,000,000; and

19 (ii) such sums as may be necessary

20 for construction; and

21 (B) for each of fiscal years 2008 through

22 2032—

23 (i) $20,000,000 for ecosystem restora24 tion projects; and
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1 (ii) such sums as may be necessary

2 for construction projects to increase yield,

3 including improving water quality.

4 (3) CONTINUING AVAILABILITY.—Funds appro5 priated pursuant to this subsection may remain

6 available until expended.

7 SEC. 105. REQUIREMENT OF SPECIFIC CONGRESSIONAL

8 AUTHORIZATION OF NEW CALFED PROJECTS.

9 (a) IN GENERAL.—No amounts may be appropriated

10 for a new CALFED project (including for grants under

11 section 104(b)) unless the project has been specifically in12 cluded in a report approved by all of the congressional au13 thorizing committees in accordance with this section.

14 (b) SUBMISSION OF FUNDING REPORTS.—

15 (1) IN GENERAL.—The Governance Board, act16 ing through the Secretary and in cooperation with

17 the State of California, shall submit to the congres18 sional authorizing committees with annual reports

19 under section 106(a) a separate report containing

20 recommendations of new CALFED projects for Fed21 eral funding, including projects for funding with

22 grants under section 104(b).

23 (2) CONTENTS, GENERALLY.—For each project

24 recommended under paragraph (1), the annual re25 port shall include—
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1 (A) a project description;

2 (B) feasibility and operational studies;

3 (C) final environmental impact studies;

4 (D) finding of consistency with the record

5 of decision;

6 (E) cost-benefit analysis;

7 (F) identification of project benefits and

8 beneficiaries;

9 (G) cost allocation plan; and

10 (H) financing and repayment plans.

11 (3) NEW PROJECTS REQUIRED TO BE IN12 CLUDED.—The Governance Board, through the Sec13 retary, shall include in reports under this subsection

14 each of the following new CALFED projects, as

15 identified in the record of decision, by the dates indi16 cated:

17 (A) A project to raise the height of Shasta

18 Dam; by January 1, 2004.

19 (B) In-Delta storage; by January 1, 2002.

20 (C) Enlarged Los Vaqueros Reservoir; by

21 January 1, 2003.

22 (D) Sites Reservoir; by January 2005.

23 (E) San Joaquin River Storage; by Janu24 ary 2005.

25 (F) San Luis Bypass; by January 2004.
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1 (c) CONGRESSIONAL APPROVAL.—

2 (1) IN GENERAL.—Each congressional author3 izing committee shall consider and approve or dis4 approve each report under subsection (b).

5 (2) CHANGES.—A congressional authorizing

6 committee may strike specific projects from such a

7 report.

8 (3) REPORTS DEEMED APPROVED.—A report

9 under subsection (b) shall be considered approved

10 unless disapproved by all of the congressional au11 thorizing committees within 60 days after the date

12 of submittal of the report.

13 SEC. 106. REPORTS.

14 (a) ANNUAL REPORT BY GOVERNANCE BOARD.—Not

15 later than February 1 of each year, the Governance Board

16 shall submit to the Congress an annual report that in17 cludes the following:

18 (1) STATE CALFED PROGRAM RECEIPTS.—An

19 accounting of all Federal funds received (or to be re20 ceived) by the State of California in the current fis21 cal year under the CALFED program, including—

22 (A) a description of all projects and activi23 ties carried out with such funds; and

24 (B) amounts received by the State that

25 have not yet been expended by the State.
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1 (2) FEDERAL EXPENDITURES.—An accounting

2 of all funds expended (or to be expended) by the

3 Secretary in the current fiscal year under the

4 CALFED program (in addition to the funds ac5 counted for under paragraph (1)), including—

6 (A) a description of all projects and activi7 ties carried out with such funds; and

8 (B) amounts that were appropriated for

9 the fiscal year but not expended.

10 (3) ASSESSMENT OF ACHIEVEMENTS.—A de11 scription and assessment of expenditures and

12 achievements under the CALFED program in the

13 current fiscal year, including accomplishments in

14 achieving—

15 (A) increased water yield;

16 (B) environmental benefits; and

17 (C) improved water system reliability,

18 water quality, water use efficiency, watershed

19 management, water transfers, and levee protec20 tion.

21 (4) PERFORMANCE MEASURES.—A clear state22 ment of goals to achieve, under the CALFED

23 program—

24 (A) increased water yield;

25 (B) environmental benefits; and
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1 (C) improved water system reliability,

2 water quality, water use efficiency, watershed

3 management, water transfers, and levee protec4 tion.

5 (b) ANNUAL BUDGET CROSSCUT REPORT.—Not

6 later than February 1 of each year, the Director of the

7 Office of Management and Budget shall submit to the

8 Congress an interagency budget crosscut report that de9 scribes in detail—

10 (1) all proposed and planned Federal expendi11 tures in the next fiscal year on ecosystem restoration

12 and other purposes in the Bay-Delta solution area;

13 and

14 (2) all proposed and planned State of California

15 and Federal expenditures in the next fiscal year to

16 achieve the objectives identified within the CALFED

17 record of decision.

18 (c) SUMMARY OF EXPENDITURES TO DATE.—The

19 Director of the Office of Management and Budget shall

20 submit to the Congress, by not later than January 1,

21 2002, a report describing all Federal and State expendi22 tures made before such date under the CALFED pro23 gram.
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1 SEC. 107. TREATMENT OF FUNDS.

2 Funds authorized to be appropriated by this title to

3 those Federal agencies that are currently or subsequently

4 become participants in the CALFED program shall be in

5 addition to the baseline funding levels established for cur6 rently authorized projects and programs under the Central

7 Valley Project Improvement Act (title XXXIV of Public

8 Law 102–575) and other currently authorized Federal

9 programs for the purposes of Bay-Delta ecosystem protec10 tion and restoration and water system and water quality

11 improvement.

12 TITLE II—SMALL RECLAMATION

13 PROJECTS

14 SEC. 201. SHORT TITLE.

15 This title may be cited as the ‘‘Small Reclamation

16 Water Resources Project Act of 2001’’.

17 SEC. 202. AMENDMENTS TO THE SMALL RECLAMATION

18 PROJECTS ACT OF 1956.

19 (a) PURPOSE.—The first section of the Small Rec20 lamation Projects Act of 1956 (43 U.S.C. 422a) is amend21 ed by striking ‘‘under the’’ and inserting ‘‘under this act

22 and other’’ and by adding the following at the end thereof:

23 ‘‘Such projects may include, but shall not be limited to,

24 irrigation projects. Irrigation shall not be a required pur25 pose for projects receiving assistance under this Act. In

26 providing assistance, the Secretary shall give priority to
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1 recommended proposals which are related to presently au2 thorized Reclamation projects that will benefit from the

3 work carried out under this Act.’’.

4 (b) DEFINITIONS.—Section 2 of the Small Reclama5 tion Projects Act of 1956 (43 U.S.C. 422b) is amended—

6 (1) in subsection (c), by striking ‘‘a State’’ and

7 inserting ‘‘an Indian Tribe, a State’’;

8 (2) by striking subsection (d) and inserting the

9 following new subsection (d):

10 ‘‘(d) The term ‘project’ means one of the following:

11 ‘‘(1) A multi-purpose water resource develop12 ment carried out by a non-Federal organization in13 volving significant conservation of water, energy and

14 the environment.

15 ‘‘(2) The rehabilitation, betterment, or retrofit

16 of any existing Federal or non-Federal water infra17 structure for purposes of complying with law and

18 regulations.

19 ‘‘(3) An activity described in paragraph (1) or

20 (2) that is carried out by a non-Federal organization

21 under the Federal reclamation laws in one or more

22 of the 17 western reclamation States, Hawaii, Alas23 ka, the Commonwealth of Puerto Rico, Guam,

24 American Samoa, the Commonwealth of the North25 ern Mariana Islands, the Virgin Islands, and the
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1 Trust Territory of the Pacific Islands. Where such

2 work is proposed for any existing Reclamation

3 project, such work shall be consistent with the au4 thorized purpose as determined by the Secretary.’’;

5 and

6 (3) by striking subsection (f) and inserting the

7 following new subsection (f):

8 ‘‘(f) The term ‘water quality improvements’ shall

9 mean and involve those operational measures and physical

10 features associated with—

11 ‘‘(1) the reclamation and reuse of irrigation

12 drainage or municipal and industrial return flows,

13 including wastewater flows; or

14 ‘‘(2) the reclamation, or control, of brackish,

15 toxic, or impaired waters for beneficial reuse or pro16 tection of other related water, land, or environmental

17 resources.’’

18 (c) MODIFICATION OF LOAN AND GRANT PRO19 GRAMS.—The Small Reclamation Projects Act of 1956 is

20 amended—

21 (1) by striking sections 3 through 8 (43 U.S.C.

22 422c–422h); and

23 (2) by inserting after section 2 (43 U.S.C.

24 422b) the following:
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1 ‘‘TITLE I—STATE AND LOCAL

2 PARTICIPATION IN RECLAMA3 TION PROJECTS

4 ‘‘SEC. 101. ESTABLISHMENT OF GRANT AND LOAN PRO5 GRAM.

6 ‘‘There is hereby established under this title a pro7 gram within the Bureau of Reclamation, pursuant to

8 which the Secretary may make grants and loan guarantees

9 to organizations to carry out projects.

10 ‘‘SEC. 102. PROPOSAL CONTENTS AND REQUIREMENTS.

11 ‘‘(a) IN GENERAL.—Any organization seeking assist12 ance under this title shall submit a proposal to the Sec13 retary in such form and manner as the Secretary may pre14 scribe. Any proposal for a project submitted under this

15 title shall set forth a plan and estimated cost in detail

16 comparable to those included in preauthorization reports

17 required for a Federal reclamation project.

18 ‘‘(b) LANDS AND WATERS.—Each proposal sub19 mitted under this title shall include a statement of finan20 cial capability and legal authority, and a resolution from

21 the governing board of the organization showing that the

22 organization seeking assistance—

23 ‘‘(1) holds or can acquire all lands and interests

24 in land (except public and other lands and interest

25 in land owned by the United States which are within
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1 the administrative jurisdiction of the Secretary and

2 subject to disposition by the Secretary) to complete

3 the project;

4 ‘‘(2) holds or can acquire all rights, pursuant to

5 applicable State law, to the use of water necessary

6 for the successful construction, operation, and main7 tenance of the project;

8 ‘‘(3) is willing to finance, and capable of financ9 ing, the non-Federal portion of the costs of the

10 project, which portion shall include all costs of ac11 quiring lands, interests in land, and rights to the use

12 of water, except as provided in section 105(b)(2);

13 and

14 ‘‘(4) has the legal authority and responsibility

15 under State law to carry out such work.

16 ‘‘SEC. 103. FEDERAL SHARE AND PROJECT SPONSOR SHARE

17 OF COSTS.

18 ‘‘(a) IN GENERAL.—The Secretary shall require each

19 organization receiving assistance under this title to con20 tribute toward the cost of the project (other than by loan

21 or grant of Federal funds) not less than 25 percent of

22 the allowable estimated costs of the project. In deter23 mining the amount of such non-Federal contribution for

24 the proposed project, the Secretary shall credit toward

25 that amount—
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•HR 1985 IH

1 ‘‘(1) the cost of investigations, surveys, engi2 neering, administration, and other services necessary

3 for the preparation of proposals and plans for the

4 proposed project as required by the Secretary;

5 ‘‘(2) the value of lands and rights-of-way acqui6 sition required for the proposed project;

7 ‘‘(3) amounts spent by the organization for con8 struction or acquisition of facilities for the proposed

9 project prior to project approval; and

10 ‘‘(4) the filing fee required by this Act.

11 ‘‘(b) PREVENTION OF LOSS AND DAMAGE TO FISH

12 AND WILDLIFE.—The costs of measures to prevent loss

13 of, and damage to, existing fish and wildlife resources

14 shall be considered project costs and allocated as may be

15 appropriate among project functions.

16 ‘‘(c) MAXIMUM ALLOWABLE FEDERAL SHARE.—The

17 maximum allowable Federal share per project shall be

18 $50,000,000, as of January 2001. The Secretary shall ad19 just such amount each year using the Bureau of Reclama20 tion’s composite construction cost trends index.

21 ‘‘(d) INCREASE IN AMOUNT.—To compensate for in22 creases in construction costs due to price escalation, sub23 ject to the limitations allowed by subsection (c), the Sec24 retary may increase the amount of the requested loan or

25 grant, or both, at any time prior to the completion of con-
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•HR 1985 IH

1 struction of the project, using the Bureau of Reclama2 tion’s composite construction cost trends index.

3 ‘‘SEC. 104. APPROVAL OR DISAPPROVAL OF PROJECTS.

4 ‘‘Not later than one year after the date an initial

5 project proposal is submitted to the Secretary under this

6 title, the Secretary shall make a determination whether

7 the proposal is financially feasible and constitutes a rea8 sonable risk under the provisions of this title and either

9 approve or disapprove the proposal. The Secretary shall

10 promptly transmit any approved proposals to the Con11 gress. The appropriate documentation under the National

12 Environmental Policy Act of 1969 (42 U.S.C. 4321 et

13 seq.) for the project shall be completed prior to Secretarial

14 transmittal of the proposal to Congress.

15 ‘‘SEC. 105. CONTRACT TERMS AND CONDITIONS.

16 ‘‘(a) MAXIMUM AMOUNTS AND AVAILABILITY.—

17 Upon approval of any project proposal submitted under

18 this title, the Secretary shall negotiate a contract setting

19 out the maximum amount of any grant, which shall not

20 exceed 50 percent of the maximum allowable Federal

21 share per grant or loan to be made to the organization,

22 and the time and method of making such grant or loan

23 available to the organization.

24 ‘‘(b) LOANS.—
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1 ‘‘(1) The contract for each loan under this title

2 shall contain such terms and conditions as the Sec3 retary deems necessary or proper to provide assur4 ance of, and security for, prompt repayment and to

5 ensure achievement of the purposes for which the

6 loan was made. The contract shall include a plan for

7 repayment by the organization within 25 years, ex8 cept that the organization shall have the right to

9 prepay the loan or any component thereof without

10 penalty.

11 ‘‘(2) The contract for each loan under this title

12 shall require payment of interest and the repayment

13 of the principal of each loan. The Secretary shall fix

14 the interest at a rate determined as of the beginning

15 of the fiscal year in which the contract is executed.

16 The rate shall be based on the average market yield

17 on outstanding marketable obligations of the United

18 States with periods of maturity comparable to the

19 applicable repayment period of the loan.

20 ‘‘(c) LOANS PROJECTS BY INDIAN TRIBES.—

21 ‘‘(1) IN GENERAL.—For projects undertaken by

22 Indian tribes, the Secretary shall—

23 ‘‘(A) determine, based on the findings in

24 the proposal under section 102, the reimburs-
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1 able and nonreimbursable costs for projects

2 constructed under this Act;

3 ‘‘(B) apportion those costs in accordance

4 with the benefits received; and

5 ‘‘(C) allocate the reimbursable costs to the

6 project beneficiaries.

7 ‘‘(2) TREATMENT OF COSTS IN EXCESS OF RE8 PAYMENT CAPABILITY.—Such costs that are deter9 mined by the Secretary to be in excess of the repay10 ment capability of an Indian tribe shall be non11 reimbursable.

12 ‘‘TITLE II—PARTNERSHIP

13 PROGRAM

14 ‘‘SEC. 201. ESTABLISHMENT OF PARTNERSHIP PROGRAM.

15 ‘‘(a) PROGRAM.—There is hereby established within

16 the Bureau of Reclamation a small grant and loan pro17 gram to be known as the Small Reclamation Water Re18 sources Management Partnership Program, to be carried

19 out under this title. The purpose of this program shall

20 be to implement projects that can be performed—

21 ‘‘(1) by the recipient organization’s workforce

22 or contractors,

23 ‘‘(2) with streamlined documentation, and

24 ‘‘(3) in a period of 18 months or less.
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•HR 1985 IH

1 ‘‘(b) GRANTS.—Grants under this title shall not ex2 ceed $5,000,000 for any one project under such program,

3 and shall be matched on a 50-percent basis of total eligible

4 cost by the organization.

5 ‘‘(c) LOANS.—Loans under this title shall not exceed

6 $5,000,000 per project, and shall be subject to cost shar7 ing in the same manner as provided in title I. The contract

8 for each loan under this title shall require payment of in9 terest and repayment of the principal. The Secretary shall

10 fix the interest rate in the same manner as provided in

11 section 105(c)(2) for loans under title I.

12 ‘‘(d) LIMITATION.—The Secretary is authorized to

13 use up to $50,000,000 of the amount available under this

14 Act for the purposes of this title.

15 ‘‘SEC. 202. REPAYMENT OF LOANS.

16 ‘‘Once work is certified complete by the Secretary,

17 each loan made under this title shall be repaid within a

18 5-year period.

19 ‘‘SEC. 203. ACTIVITIES ELIGIBLE UNDER THE SMALL REC20 LAMATION WATER RESOURCES PARTNER21 SHIP.

22 ‘‘(a) IN GENERAL.—The following types of activities

23 shall be eligible for grants or loans under this title:

24 ‘‘(1) Water conservation.

25 ‘‘(2) Water quality improvement projects.
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•HR 1985 IH

1 ‘‘(3) Water management for urban landscapes.

2 ‘‘(4) Drought assistance.

3 ‘‘(5) Fish and wildlife improvements.

4 ‘‘(6) Public safety improvements.

5 ‘‘(7) Water supply, including but not limited to,

6 production, conveyance, conservation, and manage7 ment.

8 ‘‘(b) ADDITIONAL ACTIVITIES.—The Secretary may

9 add to the list referred to in subsection (a) as he deems

10 appropriate, except that any such addition shall not take

11 effect until 60 days after the Secretary publishes a notice

12 of the proposed addition in the Federal Register, and has

13 notified the Committee on Resources of the House of Rep14 resentatives and the Committee on Energy and Natural

15 Resources of the United States Senate in writing of the

16 proposed addition and the reasons therefore.

17 ‘‘SEC. 204. APPLICATION PROCESS.

18 ‘‘(a) NOTICE OF INTENT.—Each organization seek19 ing a grant or loan under this title shall submit a Notice

20 of Intent to the Secretary by April 1 of each year outlining

21 the proposed project and the public benefits thereof. With22 in two months, the Secretary shall provide a written re23 sponse to the applicant, either affirming or rejecting the

24 Bureau of Reclamation’s interest in participating in the

25 project.
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1 ‘‘(b) NOTICE OF FEDERAL INTEREST.—Upon notifi2 cation of the Bureau of Reclamation’s interest, the organi3 zation seeking assistance under this title shall have the

4 option of proceeding with an appropriate loan or grant ap5 plication giving details of the project and the anticipated

6 public benefits.

7 ‘‘(c) CONTENTS.—The contents of any project pro8 posal under this title shall include, but need not be limited

9 to, each of the following:

10 ‘‘(1) A resolution by the board of directors of

11 the qualifying organization stating—

12 ‘‘(A) the total estimated project cost;

13 ‘‘(B) the amount of the grant or loan re14 quested;

15 ‘‘(C) the amount of the non-Federal con16 tribution for the grant;

17 ‘‘(D) the organization’s ability to finance

18 and construct the project; and

19 ‘‘(E) the project objectives.

20 ‘‘(2) A summary of the proposal.

21 ‘‘(3) A brief description of the anticipated ef22 fects of the project on the environment.

23 ‘‘(4) Evidence that the organization seeking as24 sistance under this title has all lands and water

25 rights needed for the project, or can obtain them
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1 and has legal authority and responsibility under

2 state law to carry out such work in the project plan.

3 ‘‘(5) A description of the project plan, including

4 a general map showing the location of proposed

5 physical features, conceptual engineering drawings

6 of major and typical structures, and general stand7 ards for design.

8 ‘‘(6) A construction schedule, with dates and

9 schedule of funding requirements under this title, in

10 sufficient detail to provide an analysis of the pro11 posed construction program.

12 ‘‘(7) An identification of those portions of the

13 project costs which constitute the Federal grant or

14 loan amounts and the applicant’s local contribution.

15 ‘‘(d) COSTS.—The cost of any investigations and

16 preparation of any environmental documentation shall be

17 borne by the project applicant and any such costs shall

18 be credited as part of the local cost share for grant fund19 ing.

20 ‘‘(e) ANNUAL LISTING.—The Secretary shall include

21 in the annual budget justification for the Bureau of Rec22 lamation, a listing of the activities and total funding re23 quired for work committed under this title.
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1 ‘‘SEC. 205. TERMS AND CONDITIONS OF PROJECT WORK.

2 ‘‘The Secretary shall examine the proposal submitted

3 under this title to determine if the project can reasonably

4 be expected to accomplish its purpose, and approve or dis5 approve such proposal by September 1 of each year. Once

6 approved by the Secretary and subject to the availability

7 of appropriations, funding shall be provided within 60

8 days for the schedule of work within that fiscal year.

9 ‘‘SEC. 206. ELIGIBILITY.

10 ‘‘Such proposals shall only be made by organizations

11 that have legal authority and responsibility for such work

12 to be carried out on those projects under state law. Only

13 one proposal per project area shall be allowed per every

14 five year period.

15 ‘‘TITLE III—LOAN GUARANTEES

16 ‘‘SEC. 301. ESTABLISHMENT OF LOAN GUARANTEE PRO17 GRAM.

18 ‘‘There is hereby established within the Bureau of

19 Reclamation a demonstration program to guarantee loans

20 for projects receiving, or eligible to receive, loans, or

21 grants under title I or II of this Act.

22 ‘‘SEC. 302. PROGRAM REQUIREMENTS.

23 ‘‘(a) IN GENERAL.—The Secretary may provide sup24 port under the demonstration program to organizations

25 through the provision of loan guarantees to such pro26 grammatic needs as authorized under titles I and II,
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1 under such terms and conditions specified in this section

2 and under applicable laws. Any proposal for a project sub3 mitted under this title shall set forth a plan and estimated

4 costs in detail comparable to those included in

5 preauthorization reports required for a Federal reclama6 tion project.

7 ‘‘(b) FUNDING LIMIT.—Up to 10 percent of the

8 amounts authorized to be appropriated under this Act

9 shall be set aside for purposes of funding the cost of loan

10 guarantees under this title. The amounts allocated to each

11 loan guarantee shall be the cost of such guarantee cal12 culated in accordance with applicable provisions of Federal

13 law.

14 ‘‘(c) SELECTION OF RECIPIENTS.—The Secretary

15 shall adopt and use competitive procedures in the selection

16 of organizations to receive loan guarantees under this sec17 tion. In selecting the organizations to receive a loan guar18 antee under this section, the Secretary shall consider, at

19 a minimum, the following:

20 ‘‘(1) The extent to which the loan guarantees

21 would support new water supplies or more efficient

22 use of existing supplies.

23 ‘‘(2) The repayment period of the guaranteed

24 loan.
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•HR 1985 IH

1 ‘‘(3) The extent to which the loan guarantee

2 would provide for a project of wide public purpose.

3 ‘‘(4) Whether the loan guarantee would help the

4 organization receiving the guarantee meet a Federal

5 or State environmental statute or mandate.

6 ‘‘(5) The ability of the loan guarantee to meet

7 the needs of other local water purveyors.

8 ‘‘(6) The extent to which the guaranteed loan

9 would support a program that would supplement,

10 rather than duplicate, other available water resource

11 programs.

12 ‘‘(7) The fiscal impact of the loan guarantee

13 program as a whole on other reclamation programs.

14 ‘‘(d) APPORTIONMENT.—The total amount made

15 available to the Secretary for a fiscal year to cover the

16 costs of loan guarantees under this section shall be divided

17 between projects receiving or eligible to receive loans

18 under titles I and II, with title I projects receiving 75 per19 cent and title II projects receiving 25 percent.

20 ‘‘(e) MAXIMUM.—The maximum allowable guarantee

21 percentage for loans guaranteed under this section may

22 be up to 75 percent of the total project cost. No loan guar23 antee under this title shall be used to cover the organiza24 tion’s local cost share for any project assisted under this

25 Act.
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1 ‘‘(f) REPORTING.—Reporting and documentation re2 quirements authorized under amendments contained in ti3 tles I and II shall similarly apply to loan guarantee

4 projects.

5 ‘‘(g) STATE LAW.—For purposes of this Act, when

6 any bonds are issued by an organization to help finance

7 a project for which the organization is also receiving a loan

8 guarantee under this section such bonds shall not be treat9 ed as affecting the tax-exempt status of such bonds under

10 applicable State law.

11 ‘‘(h) FULL FAITH AND CREDIT.—Any loan guarantee

12 issued pursuant to this section shall constitute an obliga13 tion, in accordance with the terms of such guarantee, of

14 the United States Government, and the full faith and cred15 it of the United States is hereby pledged to the full per16 formance of the obligations.

17 ‘‘(i) REPORT.—At the end of the third fiscal year

18 after the enactment of this Act, the Secretary shall submit

19 a report to the Congress on the beneficial use and sug20 gested improvements associated with the use of loan guar21 antees as a mechanism for project construction.

22 ‘‘SEC. 303. SUNSET.

23 ‘‘No loan guarantee may be issued under this title

24 in any fiscal year after the expiration of 6 full fiscal years

25 after initial funding of projects under the amendments
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1 made by the Small Reclamation Water Resources Project

2 Act of 2001.

3 ‘‘TITLE IV—GENERAL

4 PROVISIONS

5 ‘‘SEC. 401. PROPOSAL FEE.

6 ‘‘Each proposal for a loan, grant, or loan guarantee

7 under this Act shall be accompanied by a minimum payment of $5,000 or 1 8 ⁄10 of 1 percent of the Federal share,

9 whichever is greater, or portion thereof to defray in part

10 the costs of examining the proposal. Fifty percent of the

11 payment shall accompany the application and the remain12 ing 50 percent shall be due upon approval of the project

13 by the Secretary, if approved.

14 ‘‘SEC. 402. MISCELLANEOUS PROVISIONS.

15 ‘‘(a) TITLE.—Title to all project works and facilities

16 constructed with assistance under this Act shall remain

17 in the name of the organization.

18 ‘‘(b) COMBINED LOANS, GRANTS, AND LOAN GUAR19 ANTEES.—A project sponsor shall be eligible for a loan,

20 grant, loan guarantee, or combination thereof for a project

21 proposal under this Act. No organization shall be eligible

22 for an additional loan, grant, loan guarantee, or any com23 bination thereof for the same project that has previously

24 received approval for a loan, grant, or loan guarantee

25 under this Act within the prior five fiscal years.
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1 ‘‘(c) PLANNING, CONSTRUCTION, OPERATION, AND

2 MAINTENANCE.—The United States shall not be required

3 to provide planning, construction, operation, and mainte4 nance of any project receiving a loan, grant or loan guar5 antee under this Act.

6 ‘‘(d) STATE WATER LAW.—Any project assisted

7 under this Act shall be carried out in accordance with ap8 plicable State water law.’’.

9 (d) CONFORMING AMENDMENTS.—

10 (1) Sections 9 through 13 of the Small Rec11 lamation Projects Act of 1956 (43 U.S.C. 422i–

12 422k–1) are redesignated as sections 403 through

13 407, respectively.

14 (2) Section 404 of such Act, as redesignated by

15 paragraph (1) of this subsection, is amended as fol16 lows:

17 (A) By striking ‘‘section 3’’ and inserting

18 ‘‘title I’’.

19 (B) By striking ‘‘effective October 1,

20 1986.’’ and inserting ‘‘for any fiscal year’’.

21 (C) By striking ‘‘for loans and grants pur22 suant to this Act’’ and inserting ‘‘for loans and

23 grants pursuant to title I’’.

24 (D) By striking ‘‘five years after the date

25 of enactment of this Act’’ and inserting ‘‘ten
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1 years after the date of enactment of the Small

2 Reclamation Water Resources Project Act of

3 2001’’.

4 (E) By striking ‘‘section 4(c)’’ and insert5 ing ‘‘title I’’.

6 SEC. 203. ADDITIONAL APPROPRIATIONS.

7 Section 404 of the Small Reclamation Projects Act

8 of 1956 (43 U.S.C. 422j), as redesignated by section

9 202(d)(1) of this Act, is further amended—

10 (1) by striking ‘‘such sums’’ and all that follows

11 through ‘‘That the Secretary’’ and inserting ‘‘to

12 carry out this Act $1,300,000,000 for fiscal years

13 after fiscal year 2001, of which $800,000,000 may

14 be appropriated to carry out title I, $300,000,000

15 may be appropriated to carry out title II, and

16 $100,000,000 may be appropriated to carry out title

17 III. The Secretary’’; and

18 (2) by striking ‘‘any single State’’ and all that

19 follows through ‘‘the Secretary is authorized to

20 waive’’ and inserting ‘‘in any single State. Funds ob21 ligated or expended for projects by Indian tribes

22 shall not be considered for purposes of the preceding

23 sentence. The Secretary may waive’’.
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1 SEC. 204. GUIDELINES.

2 Within 180 days after the date of enactment of this

3 Act, the Secretary of the Interior shall complete and pub4 lish in the Federal Register such administrative guidelines

5 as may be necessary to carry out the amendments made

6 by this title.

7 SEC. 205. EFFECTIVE DATE.

8 The amendments made by this title shall take effect

9 on the date of enactment of this Act. Nothing in this title

10 or in any amendment made by this title shall affect any

11 loan or grant that has been approved before the date of

12 enactment of this Act.

13 SEC. 206. LIMITATION.

14 Activities funded under this title shall not be consid15 ered a supplemental or additional benefit under the Act

16 of June 17, 1902 (82 Stat. 388), and all Acts amendatory

17 thereof or supplementary thereto.

Æ