IB
Union Calendar No. 217
107TH CONGRESS
2D SESSION
H. R. 3208
[Report No. 107–360, Part I]
To authorize funding through the Secretary of the Interior for the implemen-
tation 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
NOVEMBER 1, 2001
Mr. CALVERT (for himself and Mr. DOOLEY of California) introduced the fol-
lowing 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 com-
mittee concerned
FEBRUARY 14, 2002
Reported from the Committee on Resources with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
FEBRUARY 14, 2002
Referral to the Committee on Transportation and Infrastructure extended for
a period ending not later than March 14, 2002.
FEBRUARY 14, 2002
Referred to the Committee on Education and the Workforce for a period end-
ing not later than March 14, 2002, for consideration of such provisions
of the bill and amendment as fall within the jurisdiction of that com-
mittee pursuant to clause 1(e), rule X.
MARCH 14, 2002
The Committees on Transportation and Infrastructure and Education and the
Workforce discharged; committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on November 1, 2001]
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 environ-
mental benefits, as well as improved water system reli-
ability, water quality, water use efficiency, watershed
management, water transfers, and levee protection.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Western Water Security
Enhancement 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—WESTERN WATER SECURITY PROGRAM
Sec. 101. Interim program activities and governance structure.
Sec. 102. Long-term governance and monitoring.
Sec. 103. California water supply security.
Sec. 104. Implementation of the CALFED program.
Sec. 105. Competitive grant program.
Sec. 106. Authorization and appropriation process.
Sec. 107. Annual reports.
Sec. 108. Treatment of funds.
Sec. 109. Land acquisition; management plan required for existing lands.
Sec. 110. Environmental justice.
TITLE II—SMALL RECLAMATION PROJECTS
Sec. 201. Short title; references.
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.
TITLE III—MISCELLANEOUS
Sec. 301. Secretarial actions to reduce California’s use of Colorado River water.
Sec. 302. Willard Bay Reservoir enlargement study.
Sec. 303. Amendments to the Federal Water Project Recreation Act.
Sec. 304. Limitations on recovery of reimbursable expenses for valve rehabilita-
tion project at the Arrowrock Dam, Boise Project, Idaho.
Sec. 305. Contract assurances for payment of prevailing wages for laborers and
mechanics.
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 com-
prehensive program to achieve increased water yield
and water supply, improved water quality and en-
hanced environmental benefits as well as improved
water system reliability, water use efficiency, water-
shed management, water transfers, and levee protec-
tion for California.
(2) To implement the 4 primary objectives of the
CALFED program for California in accordance with
the solution principles set forth in the CALFED pro-
gram.
(3) To ensure that the Secretary of the Interior
and the Federal agencies, in cooperation with the
State, implement actions necessary to improve drink-
ing water quality pursuant to the record of decision,
including through financial and technical support of
local enhancement of water treatment infrastructure
and technology.
(4) To enhance water security in the Western
United States by authorizing a competitive grants
program and reauthorizing and amending the Small
Reclamation Projects Act of 1956.
SEC. 4. DEFINITIONS.
As used in this Act:
(1) BAY-DELTA
SOLUTION
AREA.—The term
‘‘Bay-Delta solution area’’ means the Bay-Delta wa-
tershed 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 River-San
Joaquin River Delta, and the rivers and watersheds
that are tributary to that Delta.
(3) CALFED PROGRAM.—The term ‘‘CALFED
program’’ means the cooperative, interagency effort of
the State agencies and Federal agencies with manage-
ment or regulatory responsibilities for the Bay-Delta
solution area as set forth in the record of decision, in-
cluding complementary actions (as that term is de-
fined in the record of decision).
(4) 
CONGRESSIONAL
AUTHORIZING
COMMIT-
TEES.—The term ‘‘congressional authorizing commit-
tees’’ means the Committee on Energy and Natural
Resources of the Senate and the Committee on Re-
sources of the House of Representatives.
(5) DELTA.—The term ‘‘Delta’’ means the Sac-
ramento River-San Joaquin River Delta in Cali-
fornia as defined in California Water Code section
12220.
(6) ECOSYSTEM
RESTORATION
PROGRAM.—The
term ‘‘Ecosystem Restoration Program’’ means the
program described in section 2.2.2 of the record of de-
cision.
(7) ENVIRONMENTAL
WATER
ACCOUNT.—The
term ‘‘Environmental Water Account’’ means the
water account established by the Program agencies
pursuant to the record of decision 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)).
(8) FEDERAL
AGENCIES.—The term ‘‘Federal
agencies’’ means the Federal agencies that are sig-
natories to Attachment 3 of the record of decision.
(9) PROGRAM AGENCIES.—The term ‘‘Program
agencies’’ means both the Federal agencies and the
State agencies.
(10) RECLAMATION
LANDS.—The term ‘‘Rec-
lamation lands’’—
(A) means real property administered by
the Secretary, acting through the Commissioner
of Reclamation; and
(B) includes all acquired and withdrawn
lands and water areas under the administrative
jurisdiction of the Bureau of Reclamation.
(11) RECORD OF DECISION.—The term ‘‘record
of decision’’ means the record of decision issued Au-
gust 28, 2000, pursuant to the National Environ-
mental Policy Act of 1969 for the CALFED Bay-
Delta Program Final Programmatic Environmental
Impact Statement.
(12) RESTORATION FUND.—The term ‘‘restora-
tion fund’’ means the Central Valley Project Restora-
tion Fund established by section 3407 of the Central
Valley Project Improvement Act (106 Stat. 4726).
(13) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Interior.
(14) STATE AGENCIES.—The term ‘‘State agen-
cies’’ means the California State agencies that are
signatories to Attachment 3 of the record of decision.
(15) 
WATER
SECURITY
BOARD.—The 
term
‘‘Water Security Board’’ means such board established
pursuant to section 102.
(16) WATER SUPPLY.—The term ‘‘water supply’’
means a quantity of water that is developed or de-
rived from—
(A) increased water yield;
(B) recycling existing sources;
(C) surface or groundwater storage;
(D) conservation; or
(E) other actions or water management
tools that improve the availability and reli-
ability of water supplies for beneficial uses in all
water year types, including critically dry years.
(17) WATER
YIELD.—The term ‘‘water yield’’
means a new quantity of water in storage that is reli-
ably available in critically dry years for beneficial
uses.
TITLE I—WESTERN WATER
SECURITY PROGRAM
SEC. 101. INTERIM PROGRAM ACTIVITIES AND GOVERN-
ANCE STRUCTURE.
(a) IN GENERAL.—The Federal agencies, in consulta-
tion with State agencies, shall continue to operate under
the interim governance structure as described in Attach-
ment 3 of the record of decision, and in accordance with
section 103 of this Act, until the date on which the Water
Security Board is established under section 102.
(b) ALLOCATION OF FUNDING DURING INTERIM.—The
Secretary shall ensure that during the period preceding es-
tablishment of the Water Security Board under section 102,
Federal funding is allocated such that—
(1) there is balanced progress toward increased
water yield and water supply, improved water qual-
ity, and enhanced environmental benefits; and
(2) adequate progress is made in improving
water system reliability, water quality, water use effi-
ciency, watershed management, water transfers, and
levee protection, in accordance with the record of deci-
sion.
(c) WATER SUPPLY AND WATER YIELD STUDIES.—
(1) IN GENERAL.—The Secretary, acting through
the Bureau of Reclamation, shall conduct a study of
water users of the Bay-Delta watershed with due
recognition of water right priorities.
(3) FEASIBLE DEFINED.—For purposes of para-
graph (2), the term ‘‘feasible’’ means capable of being
accomplished in a reasonable period of time, taking
into account economic, environmental, social, and
technological factors and benefits.
(d) WATER QUALITY STUDIES.—
(1) STUDY.—The Secretary, in cooperation with
the State, shall conduct a study to identify and rec-
ommend drinking water quality improvement projects
and programs to carry out under the CALFED pro-
gram.
(2) REPORT.—The Secretary shall submit a re-
port to the congressional authorizing committees by
not later than October 1, 2002, describing the findings
of the study.
(e) SUMMARY OF EXPENDITURES TO DATE.—The Di-
rector of the Office of Management and Budget shall submit
to the Congress, by not later than March 1, 2002, a report
describing all Federal and State expenditures made before
such date under the CALFED program and other Federal
and State programs that may be complementary to the
CALFED program.
SEC. 102. LONG-TERM GOVERNANCE AND MONITORING.
(a) ESTABLISHMENT
OF
THE
WATER
SECURITY
BOARD.—
(1) IN GENERAL.—The Secretary shall cooperate
with the State of California to develop a proposal
to—
(A) establish an administrative entity, to be
known as the ‘‘Water Security Board’’, for man-
aging CALFED program operations and imple-
mentation of section 105 with respect to Cali-
fornia; and
(B) otherwise provide for the long-term im-
plementation of the CALFED program.
(2) DEVELOPMENT
AND
SUBMITTAL
OF
PRO-
POSAL.—For purposes of paragraph (1)—
(A) the Federal agencies shall participate
with the State agencies and stakeholders to de-
velop a proposal in accordance with this section
to be authorized by the Congress and the Cali-
fornia Legislature before becoming effective; and
(B) the Secretary shall submit the proposal
to the Congress and the California Legislature by
October 1, 2002.
(3) PUBLIC PARTICIPATION.—The Federal agen-
cies shall include broad public, tribal, and local gov-
ernment involvement in the proposal. Meetings of
multiple State agencies and Federal agencies for de-
velopment of the proposal shall be open to the public.
(b) PROGRAM ELEMENTS.—The proposal submitted by
the Secretary under this section shall provide the following:
(1) Establishment of an administrative entity to
be authorized under Federal and California State law
which shall be known as the Water Security Board.
(2) The Water Security Board—
(A) shall direct and oversee the implementa-
tion of the CALFED program and implementa-
tion of section 105 with respect to California;
and
(B) may adopt and modify program ele-
ments as necessary to achieve the purposes of the
CALFED program.
(3) The Water Security Board shall ensure that
all relevant Federal programs authorized under this
Act and other preexisting authorities, including the
restoration fund and other programs authorized by
the Central Valley Project Improvement Act (106
Stat. 4706 et seq.), coordinate and integrate
goalsetting, 
funding, 
and 
implementation 
with
CALFED programs to ensure the most biologically ef-
fective and cost-effective expenditure of Federal funds
and resources for CALFED program-related activi-
ties.
(4) The Water Security Board shall manage and
allocate CALFED program funds to maintain bal-
anced progress among all CALFED program ele-
ments.
(5) The Water Security Board shall be comprised
of representatives from each of the following groups:
(A) The Federal agencies.
(B) The State agencies.
(C) Local governments and other interested
persons.
(6) Each member of the Water Security Board
who is a representative of a Federal agency or State
agency shall be an official with a level of authority
that is at least as great as the lowest level of author-
ity of the Federal and State officials, respectively,
that signed the record of decision.
(7) Mechanisms for funding, by the Program
agencies, of activities under the proposal, including
for the Ecosystem Restoration Program.
(c) PROMOTION
OF PARTNERSHIPS.—The proposal
submitted by the Secretary under this section shall provide
the following:
(1) The Water Security Board shall seek out and
promote partnerships with local interests and pro-
grams that seek to integrate various management op-
tions so as to maximize the final resource benefits.
(2) The Water Security Board shall cooperate
and undertake joint activities with other persons, in-
cluding 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, con-
struction projects, and the development of an inde-
pendent peer review science program.
(d) MONITORING.—The proposal submitted by the Sec-
retary under this section shall provide that the Water Secu-
rity Board shall coordinate with the Program agencies to—
(1) ensure that ecological monitoring data col-
lected for ecosystem restoration projects are inte-
grated, streamlined, compatible, and designed to
measure overall trends in ecosystem health in the
Bay-Delta watershed;
(2) provide integrated monitoring plans and
protocols to be used for gauging cost-effective perform-
ance of projects; and
(3) ensure that the findings of such monitoring
are used to modify and adopt elements of the
CALFED program.
(e) OBJECTIVE REVIEW AND ANALYSIS.—The proposal
submitted by the Secretary under this section shall provide
that the Water Security Board shall ensure that—
(1) all aspects of the CALFED program compo-
nents, including the competitive grants program
under section 105 with respect to California, use cred-
ible and objective scientific review and economic anal-
ysis;
(2) recommendations of the Water Security
Board are based on the best available scientific infor-
mation; and
(3) a science review board and independent peer
review process for implementation of the proposal is
established, including independent review of biological
opinions.
(f) LAND PARTNERSHIPS
AND ACQUISITIONS.—The
proposal submitted by the Secretary under this section shall
provide that—
(1) before obligating or expending Federal funds
to acquire land for the Ecosystem Restoration Pro-
gram, the Water Security Board shall first determine
that existing Federal land, State land, or other land
acquired for ecosystem restoration with amounts pro-
vided by the United States or the State of California
is not available for that purpose;
(2) in determining whether to acquire land for
the Ecosystem Restoration Program, the Water Secu-
rity Board, through the Secretary, shall—
(A) consider the cumulative impacts on the
local government and communities of transfer-
ring the property into government ownership;
and
(B) fully mitigate such impacts;
(3) the Water Security Board may not acquire
land for any project if such acquisition, or any
change in management of the land after such acquisi-
tion, will have any significant unmitigated effect on
surrounding landowners;
(4) the Water Security Board, through the Sec-
retary, shall fully mitigate the adverse impacts of any
conversion of agriculture land due to the implementa-
tion of the CALFED program; and
(5) the Water Security Board shall partner with
landowners and local agencies to develop cooperating
landowner commitments that will meet coequal objec-
tives of achieving local economic and social goals and
implementing the Ecosystem Restoration Program
goals.
(g) COMPLIANCE WITH STATE LAW.—The proposal
submitted by the Secretary under this section shall provide
that the Federal agencies and the Water Security Board
shall operate in compliance with California water law.
Nothing in this Act shall be construed to invalidate or pre-
empt State law.
(h) CONTINUED CONSULTATION AND NEGOTIATION RE-
GARDING COST SHARING.—The Federal agencies shall con-
tinue 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, and may enter into an agree-
ment with the State for that purpose.
(i) SATISFACTION OF SOLUTION PRINCIPLES AND PRI-
MARY OBJECTIVES.—The Secretary shall ensure that the
proposal submitted under this section and other actions
taken to implement the record of decision satisfy the solu-
tion principles and primary objectives of the CALFED pro-
gram.
(j) LIMITATION ON APPROPRIATIONS TO IMPLEMENT
CALFED PROGRAM.—No amounts may be appropriated
for any fiscal year after fiscal year 2004 to implement the
CALFED program, including under any other provision of
this title, and no amounts may be appropriated from the
restoration fund after such fiscal year, if there has not been
enacted by the Congress a law authorizing implementation
of the proposal submitted by the Secretary under this sec-
tion.
SEC. 103. CALIFORNIA WATER SUPPLY SECURITY.
(a) WATER SYSTEM IMPROVEMENTS.—
(1) IN GENERAL.—The Federal agencies, acting
through the CALFED program, shall develop a bal-
anced and timely program to achieve for agricultural
and urban uses throughout the Bay-Delta solution
area—
(A) increased water supply and water yield,
improved water quality, and environmental ben-
efits; and
(B) improved water system reliability,
water use efficiency, watershed management,
water transfers, and levee protection.
(2) DEVELOPMENT OF OPTIONS.—In developing
water yield and water supply options the Federal
agencies, in cooperation with the State agencies,
shall—
(A) consider all potential water yield and
water supply storage alternatives (including
those identified in the study under section
101(c)(1)); and
(B) utilize a cost/benefit analysis in con-
junction with environmental criteria to ensure
that proposals are selected that address environ-
mental issues and are economically viable.
(3) SELECTION
OF
PROJECTS.—In selecting
projects and programs for increasing water yield and
water supply, improving water quality, and enhanc-
ing environmental benefits, projects and programs
with multiple benefits shall be emphasized.
(4) WATER DELIVERIES TO SOUTH-OF-DELTA AG-
RICULTURAL
WATER
SERVICE
CONTRACTORS.—(A)
The Secretary shall use the discretion of the Secretary
to the maximum extent practicable to accomplish the
goal, during a normal water year, of making avail-
able to south-of-Delta Central Valley Project agricul-
tural water service contractors at least 70 percent of
the currently identified contract maximum for such
contractors.
(B) The restoration of supply for south-of-Delta
Central Valley Project agricultural water service con-
tractors pursuant to this paragraph shall be
accomplished—
(i) by providing water from existing facili-
ties historically used to provide Central Valley
Project water to these contractors,
(ii) in a manner consistent with California
water laws,
(iii) without reducing deliveries to, increas-
ing the costs of, or otherwise adversely affecting
other water suppliers and water users that rely
on water diverted from watercourses tributary to
the Delta, and in the Delta,
(iv) without degrading the quality of water
for municipal, industrial, and agricultural uses,
and
(v) in a manner that is consistent with the
Bureau of Reclamation’s municipal and indus-
trial water shortage policy.
(C) Nothing in this paragraph grants, dimin-
ishes, or otherwise affects any water right or right
under any contract, including a settlement or ex-
change contract, in effect as of the date of enactment
of this Act.
(5) BANKS PUMPING PLANT.—In accordance with
the record of decision, the Federal agencies shall co-
operate with the State of California to do the fol-
lowing:
(A) Increase pumping limits at the Banks
Pumping Plant in accordance with the schedule
established in the record of decision, or earlier if
feasible.
(B) Manage the Environmental Water Ac-
count and the Ecosystem Restoration Program to
maximize the water supply benefits to be pro-
vided by the increased pumping capability.
(C) Implement the other actions in section
2.2.6. of the record of decision.
(b) ENVIRONMENTAL WATER MANAGEMENT.—
(1) MANAGEMENT
OF
ENVIRONMENTAL
WATER
ACCOUNT.—The Federal agencies, in cooperation with
the State agencies, shall manage the Environmental
Water Account and the Ecosystem Restoration Pro-
gram under the record of decision as part of a com-
prehensive 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 man-
ner that—
(A) avoids redirected impacts and water
supply and water quality impacts to the Central
Valley Project and the State Water Project and
to water right holders in the Bay-Delta solution
area; and
(B) avoids adverse effects on the water right
holders in the Bay-Delta solution area, by not
imposing any direct costs or indirect costs on the
water users in the Bay-Delta solution area.
(2) ENVIRONMENTAL
WATER
ACCOUNT
PRIOR-
ITIES AND OPERATION.—(A) The Secretary shall give
first priority, in the allocation and use of Environ-
mental Water Account and the Ecosystem Restoration
Program assets actually obtained or developed, to
meeting the water supply assurances set forth in
paragraph (1).
(B) If, by December 31 of any year, the Environ-
mental Water Account Tier 2 assets (as that term is
used in section 2.2.7 of the record of decision) water
purchase targets, or their functional equivalents, have
not been met, the Federal agencies shall continue their
efforts to meet such water purchase targets and shall
make use of the available Environmental Water Ac-
count assets to avoid jeopardizing the continued exist-
ence of any species listed under section 4(c) of the En-
dangered Species Act of 1973 (16 U.S.C. 1533(c)) in
a manner consistent with minimizing water supply
and water quality impacts.
(C) If the efforts to meet such 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 asset purposes
shall be the difference between the Environmental
Water Account purchase targets established in section
2.2.7 of the record of decision and the amount of
water actually acquired. This section shall not impose
any obligations or responsibilities on other water
users within the Bay-Delta watershed.
SEC. 104. IMPLEMENTATION OF THE CALFED PROGRAM.
(a) IN GENERAL.—The Secretary and the Federal
agencies shall, subject to approvals and the availability of
appropriations under this Act, and consistent with the goals
included pursuant to paragraph (3) of section 107(a) in
annual reports under that section, carry out all actions nec-
essary to implement the CALFED program.
(b) BALANCED REGULATORY IMPLEMENTATION.—The
Secretary and the Federal agencies, in carrying out their
regulatory responsibilities under any Federal law, shall
not—
(1) treat one CALFED program element as an
alternative to another CALFED program element; or
(2) consider, as an alternative to one element of
the CALFED program, implementation of any other
element of the CALFED program beyond the levels de-
scribed in the record of decision.
(c) REGULATORY
COORDINATION.—The Secretary,
working with the Governor of the State of California, shall,
on or before January 1, 2003, develop a regulatory coordi-
nation 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.
(d) PROGRAM AGENCIES DISCRETION.—This Act shall
not affect the discretion of any of the Program agencies or
the authority granted to any of the Program agencies by
any other Federal or State law.
(e) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN
GENERAL.—In addition to the other
amounts authorized by this Act, there are authorized
to be appropriated for activities that implement the
CALFED program—
(A) for each of fiscal years 2002 through
2004, $200,000,000; and
(B) for each of fiscal years 2005 through
2032 such sums as may be necessary for bal-
anced completion of Stage 1 of the CALFED
program and balanced implementation of subse-
quent stages of the CALFED program.
(2) CONTINUING
AVAILABILITY.—Funds appro-
priated pursuant to this subsection may remain
available until expended.
SEC. 105. COMPETITIVE GRANT PROGRAM.
(a) GENERAL AUTHORITY.—The implementing entity
shall undertake a competitive grant program to—
(1) investigate and identify opportunities for the
design and construction of demonstration and perma-
nent facilities, or the implementation of other pro-
grams, to—
(A) increase water yield and water supply;
(B) maintain existing water supply;
(C) improve water quality; or
(D) improve water use efficiency and water
conservation, reclamation, desalination of brack-
ish and sea water, and recycling of wastewater
and impaired ground and surface waters;
(2) carry out design and construction of facili-
ties and implement other programs identified pursu-
ant to paragraph (1);
(3) conduct research, including desalination and
other new and innovative techniques and techniques
for water treatment, regarding sea water and the rec-
lamation of wastewater and impaired ground and
surface waters; and
(4) encourage watershed management actions to
increase water quality, water yield, water supply,
and groundwater recharge and storage.
(b) LIMITATIONS ON GRANTS.—
(1) LOCATION OF PROJECT.—Grants under the
program may be made only for projects carried out
in a State that contains Reclamation lands.
(2) PER STATE LIMIT.—(A) Except as provided
in subparagraph (B), of the amount available in a
fiscal year for grants under the program, not more
than 50 percent may be used for projects in a single
State.
(B) The Secretary may increase the percentage
that applies under subparagraph (A) if the Secretary
finds that, due to the lack of grant applications for
projects that the Secretary finds meet the evaluation
criteria under this section, such increase is necessary
to ensure the use of amounts available for such fiscal
year for such grants.
(c) EVALUATION CRITERIA.—In determining what
projects described in subsection (a) are eligible for funding
under this section, the implementing entity, to the max-
imum extent possible, shall consider the following criteria:
(1) Whether a project—
(A) increases water yield and water supply;
(B) reduces or stabilizes demand on existing
Federal and State water supply facilities; or
(C) increases the availability of locally and
regionally developed water supplies.
(2) Whether a project improves water quality in
a manner that results in continuous, measurable, and
significant water quality benefits, except that any
project the primary purpose of which is the project
sponsor’s compliance with the Federal Water Pollu-
tion Control Act shall not be considered as improving
water quality for purposes of this paragraph.
(3) Whether a project—
(A) serves a small, rural, or economically
disadvantaged community or Indian tribes;
(B) shows economic benefits; and
(C) is cost-effective.
(4) Whether a project restores or enhances habi-
tats, including those affected by or affecting project
operation, or provides water for, or otherwise protects,
Federal or State listed threatened or endangered spe-
cies, or facilitates consensus-based environmental res-
toration programs.
(5) Whether a project helps meet existing legal
requirements, contractual water supply obligations,
Indian trust responsibilities, water rights settlements,
water quality control plans and department of health
requirements, Federal and State environmental laws,
the Federal Water Pollution Control Act, or other ob-
ligations.
(6) Whether a project promotes and applies a re-
gional or watershed perspective to water resource
management or cross-boundary issues, implements an
integrated resources management approach, increases
water management flexibility, or forms a partnership
with other entities.
(7) Whether a project improves health and safety
of the general public.
(8) Whether a project provides benefits outside
the region in which the project occurs.
(9) Whether a project provides benefits to the ag-
ricultural community, including any adverse impacts
on agricultural production and agricultural lands.
amounts for such grants, and less than $50 million)
by increasing the amount of the Federal share of such
costs to an amount that is greater than the amount
specified in paragraph (1), if the implementing enti-
ty, through the Secretary, determines that—
(A) the project is for the benefit of a small,
rural, or socially disadvantaged community or
an Indian tribe; and
(B) application of paragraph (1) would re-
sult in economic hardship for such community or
Indian tribe.
(f) ANNUAL REPORT.—The implementing entity shall
provide the Congress an annual report detailing the benefits
gained by projects funded under this section, and expendi-
tures for each such project. The report shall include infor-
mation on each project the implementing entity has ap-
proved for funding, including an assessment of how the
project met each of the evaluation criteria under this sec-
tion.
(g) IMPLEMENTING ENTITY DEFINED.—In this section
the term ‘‘implementing entity’’—
(1) except as provided in paragraph (2), means
the Secretary; and
(2) for purposes of grants under this section for
projects in California, means the Water Security
Board.
(h) 
AUTHORIZATION
OF
APPROPRIATIONS.—For
grants under this section, there are authorized to be
appropriated—
(1) $50,000,000 for fiscal year 2002; and
(2) $500,000,000 for each fiscal year thereafter.
SEC. 106. AUTHORIZATION AND APPROPRIATION PROCESS.
(a) ACTIVITIES OTHER THAN CONSTRUCTION AND AC-
QUISITION.—There are authorized to be appropriated to the
Secretary such sums as are necessary to pay the Federal
share of CALFED program costs and expenses for—
(1) prefeasibility and feasibility studies, environ-
mental reviews, permit acquisitions, and related
preconstruction and preland acquisition activities;
(2) administration of all CALFED program
areas, including governance, monitoring, and imple-
mentation of a comprehensive science program; and
(3) acquiring the Tier 2 and Tier 3 assets (as
those terms are defined in the record of decision) for
the Environmental Water Account.
(b) CONSTRUCTION AND ACQUISITION ACTIVITIES.—
The process for authorizing appropriations to pay the Fed-
eral share of the costs of implementing elements of the
CALFED program, as set forth in the record of decision,
through the construction of projects and the acquisition of
lands, easements, and rights-of-way shall be as follows:
(1) Every odd-numbered year beginning in 2003
at the same time the Secretary submits the report de-
scribed in section 107(a), the Water Security Board,
acting through the Secretary, shall submit to the con-
gressional authorizing committees a report setting
forth the list of projects and other actions that are
proposed for construction or acquisition in order to
implement the CALFED program over the next 2 fis-
cal years. The list shall specify which projects and ac-
tions require authorization by the Congress through
the process set forth in this subsection. The Water Se-
curity Board and the Secretary shall certify that im-
plementation of the CALFED program in the manner
set forth in the report will result in balanced imple-
mentation in all CALFED program areas.
(2) No amounts may be appropriated for any
fiscal year after fiscal year 2003 for any project or
other action that has not been previously authorized
and that requires construction or acquisition of lands,
easements, and rights-of-way, unless the project has
been specifically authorized by law.
(3) It is the intent of Congress that the author-
izations and appropriations for implementation of
the CALFED program shall promote and carry out
the fundamental principle that the CALFED program
components, consisting of ecosystem restoration, wa-
tershed improvements, water supply improvements,
storage including water yield, conveyance, water use
efficiency, water quality improvement, and levee sta-
bility, must progress together in a balanced manner.
(4) If the Congress, through the authorization
and appropriation process set forth in this section,
amends, or fails to authorize or fund, the projects and
other actions included in a report submitted pursuant
to paragraph (1), the Secretary shall, in consultation
with the Water Security Board, redetermine whether
implementation of the projects and other actions, as
authorized or funded, respectively, by the Congress
will maintain balanced implementation in all
CALFED program areas. If the Secretary finds that
implementation of such projects, as so authorized or
funded by the Congress, will not maintain balanced
implementation in all program areas, the Secretary
shall report to the Congress the finding and rec-
ommend those steps needed to restore balance to the
implementation process.
(c) CONTENTS OF REPORTS.—
(1) IN GENERAL.—For each project recommended
under paragraph (1), the reports under this sub-
section shall include—
(A) a project description;
(B) feasibility and operational studies;
(C) required environmental documentation;
(D) a finding of consistency with the record
of decision;
(E) a cost-benefit analysis;
(F) identification of project benefits and
beneficiaries;
(G) identification of adverse impacts, if
any, to agricultural, municipal, industrial, or
other water users;
(H) a cost and benefit allocation plan;
(I) financing and repayment plan; and
(J) in the case of a project proposed to be
funded with a grant under section 105, a certifi-
cation that an agreement in accordance with sec-
tion 105(d)(3) has been signed and the Water Se-
curity Board has determined that the non-Fed-
eral project sponsor is financially capable of
funding the project’s non-Federal share of the
project’s costs, and ongoing operations and
maintenance.
(2) RECOMMENDATIONS
REGARDING
SPECIFIC
PROJECTS.—The Water Security Board, through the
Secretary, shall include in reports under this sub-
section recommendations with respect to construction
of the surface storage, groundwater storage, and com-
plementary actions, that would improve water system
reliability, water quality, water supply, or water
yield, or any combination thereof, consistent with the
dates specified in the record of decision or such other
date as may be specified by the Water Security
Board.
SEC. 107. ANNUAL REPORTS.
(a) ANNUAL WATER REPORT BY WATER SECURITY
BOARD.—Not later than February 1 of each year, the Water
Security Board, through the Secretary, shall submit to the
Congress an annual report that includes the following:
(1) FEDERAL FUNDING.—An accounting of all
Federal funds received (or to be received) by the
Water Security Board, including—
(A) a description of all projects and activi-
ties carried out with such funds;
(B) amounts received by the State that have
not yet been expended by the State; and
(C) cost allocation and any applicable re-
payment capacity findings for new projects.
(2) ASSESSMENT OF ACHIEVEMENTS.—A descrip-
tion and assessment of expenditures and achievements
of the CALFED program and the competitive grant
program under section 105 in the current fiscal year,
including accomplishments in achieving—
(A) increased water supply and water yield;
(B) improved water quality, including—
(i) measures taken to improve salinity;
(ii) an assessment of progress made in
implementing drinking water sources pro-
tection projects and programs described in
the record of decision; and
(iii) identification of regionally and
locally sponsored projects and programs to
improve water treatment infrastructure and
technology;
(C) enhanced environmental benefits, in-
cluding ecosystem restoration;
(D) improved water system reliability,
water use efficiency, watershed management,
water transfers, and levee protection; and
(E) benefits in all geographic regions cov-
ered within the Bay-Delta solution area.
(3) PERFORMANCE
MEASURES.—A clear state-
ment of goals to achieve, under the CALFED
program—
(A) increased water supply and water yield;
(B) improved water quality;
(C) enhanced environmental benefits; and
(D) improved water system reliability,
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 expendi-
tures 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 record of
decision.
SEC. 108. 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 cur-
rently 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 res-
toration and water system and water quality improvement.
SEC. 109. LAND ACQUISITION; MANAGEMENT PLAN RE-
QUIRED FOR EXISTING LAND.
Federal funds, including Federal grant funds, may
not, for purposes of implementing the record of decision,
be used to acquire any additional lands for CALFED eco-
system restoration unless the State agencies and Federal
agencies, through the Secretary and by not later than Janu-
ary 1, 2003, develop a management plan for all lands ac-
quired for CALFED program ecosystem restoration before
the date of enactment of this Act.
SEC. 110. ENVIRONMENTAL JUSTICE.
It is the intent of the Congress that—
(1) implementation of the CALFED program by
the Federal agencies and State agencies should fulfill
the commitment to addressing environmental justice
challenges referred to in the CALFED Bay-Delta Pro-
gram Environmental Justice Workplan, dated Decem-
ber 13, 2000;
(2) the Federal agencies and State agencies
should continue to collaborate to develop a comprehen-
sive environmental justice workplan for the CALFED
program, including through continuation of the func-
tions of the CALFED-Bay Delta Environmental Jus-
tice Workgroup; and
(3) the Water Security Board should collaborate
with such workgroup to ensure fulfillment of the com-
mitment referred to in paragraph (1).
TITLE II—SMALL RECLAMATION
PROJECTS
SEC. 201. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This title may be cited as the
‘‘Small Reclamation Water Resources Project Act of 2001’’.
(b) REFERENCES.—Except as otherwise expressly pro-
vided, whenever in this title an amendment or repeal is ex-
pressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be
made to a section or other provision of the Small Reclama-
tion Projects Act of 1956 (43 U.S.C. 422 et seq.).
SEC. 202. AMENDMENTS TO THE SMALL RECLAMATION
PROJECTS ACT OF 1956.
(a) PURPOSE.—The first section (43 U.S.C. 422a) is
amended—
(1) by striking ‘‘under the’’ and inserting ‘‘under
this Act and other’’; and
(2) by adding at the end the following: ‘‘Such
projects may include, but shall not be limited to, irri-
gation 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 that are related to
a project that is otherwise authorized under the Fed-
eral reclamation laws and that will benefit from as-
sistance under this Act.’’.
(b) DEFINITIONS.—Section 2 (43 U.S.C. 422b) is
amended—
(1) in paragraph (c), by striking ‘‘a State’’ and
inserting ‘‘an Indian Tribe, a State’’;
(2) by striking paragraph (d) and inserting the
following:
‘‘(d) The term ‘project’ means any of the following:
‘‘(1) A multipurpose water resource development
carried out by a non-Federal organization involving
significant conservation of water, energy, and the en-
vironment.
‘‘(2) The rehabilitation, betterment, or retrofit of
any existing Federal or non-Federal water infrastruc-
ture for purposes of complying with law and regula-
tions.
‘‘(3) An activity described in paragraph (1) or
(2) that—
‘‘(A) is carried out by a non-Federal orga-
nization 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 Com-
monwealth of the Northern Mariana Islands, the
Virgin Islands, and the Trust Territory of the
Pacific Islands; and
‘‘(B) in the case of an activity proposed for
any project that is authorized under the reclama-
tion laws immediately before the enactment of
the Small Reclamation Water Resources Project
Act of 2001, is determined by the Secretary to be
consistent with the purposes of that project before
that date of enactment.’’; and
(3) by striking paragraph (f) and inserting the
following:
‘‘(f) The term ‘water quality improvements’ means
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 pro-
tection 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 RECLAMA-
TION PROJECTS
‘‘SEC. 101. LOAN, GRANT, AND LOAN GUARANTEE PROGRAM.
‘‘There is hereby established a program within the Bu-
reau of Reclamation, under which the Secretary may make
loans, grants, and loan guarantees to any organization to
carry out a project.
‘‘SEC. 102. PROPOSAL CONTENTS AND REQUIREMENTS.
‘‘(a) IN GENERAL.—Any organization seeking assist-
ance under this title shall submit a proposal to the Sec-
retary in such form and manner as the Secretary may pre-
scribe. Any proposal for a project submitted under this title
shall set forth a plan and estimated cost in detail com-
parable to those included in preauthorization reports re-
quired for a project under the Federal reclamation laws.
‘‘(b) LANDS AND WATERS.—Each proposal submitted
under this title shall include a statement of financial capa-
bility and legal authority, and a resolution from the gov-
erning board of the organization showing that the organiza-
tion 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 that 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 mainte-
nance of the project;
‘‘(3) is willing to finance, and capable of financ-
ing, the non-Federal portion of the costs of the project,
including all costs of acquiring lands, interests in
land, and rights to the use of water, except as pro-
vided in section 105(b)(2); and
‘‘(4) has the legal authority and responsibility
under State law to carry out the project.
‘‘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 con-
tribute toward the cost of the project (other than by loan
or grant of Federal funds) not less than 25 percent of the
costs of the project. The Secretary shall credit toward the
non-Federal cost share that amount—
‘‘(1) the costs paid by the organization for inves-
tigations, surveys, engineering, administration, and
other services necessary for the preparation of pro-
posals and plans for the proposed project that are re-
quired by the Secretary;
‘‘(2) the value of lands, rights-of-way, and water
rights acquisition required for the proposed project
that are provided by the organization;
‘‘(3) amounts spent by the organization for con-
struction or acquisition of facilities for the proposed
project prior to project approval; and
‘‘(4) the fee required by section 403.
‘‘(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 as the result
of a project for which assistance is provided under this title
shall be considered project costs and, for purposes of reim-
bursement, shall be 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 (January 2001 dollars).
‘‘(d) INCREASE IN AMOUNT.—To compensate for in-
creases in construction costs due to price escalation, and
subject to subsection (c), the Secretary may increase the
amount of a loan or grant, or both, under this title for a
project 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.
‘‘(a) IN GENERAL.—The Secretary shall determine
whether a proposal under this title is financially feasible
and constitutes a reasonable risk, and either approve or dis-
approve the proposal, by not later than the later of—
‘‘(1) one year after the date the proposal is sub-
mitted to the Secretary; or
‘‘(2) the date of the completion of the appro-
priate documentation under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
‘‘(b) TRANSMITTAL TO CONGRESS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall promptly transmit any approved pro-
posals to the Congress with a brief statement of the
project purposes and funding requirements.
‘‘(2) COMPLETION
OF
DOCUMENTATION.—The
documentation required under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for
a proposed project must be completed before the Sec-
retary transmits the proposal to the Congress.
‘‘SEC. 105. CONTRACT TERMS AND CONDITIONS.
‘‘(a) IN GENERAL.—Upon approval of any project pro-
posal submitted under this title by an organization, the Sec-
retary shall negotiate with the organization a contract es-
tablishing the terms under which assistance shall be pro-
vided under this title.
‘‘(b) CONTRACT TERMS.—The contract shall include
the following:
‘‘(1) The maximum amount of any grant, which
shall not exceed 50 percent of the maximum allowable
Federal share of the costs of the project under section
103.
‘‘(2) The time and method of making any grant
or loan available to the organization.
‘‘(3) Such terms and conditions as the Secretary
considers necessary or proper to provide assurance of,
and security for, prompt repayment of any loan and
to ensure achievement of the purposes for which the
loan was made.
‘‘(4) A plan for repayment by the organization
of any loan within 25 years, except that the organiza-
tion shall have the right to prepay the loan or any
component thereof without penalty.
‘‘(5) For any loan, payment of interest at a rate
established by the Secretary of the Treasury at the be-
ginning of the fiscal year in which the contract is exe-
cuted, that shall be based on the average market yield
on outstanding marketable obligations of the United
States with periods of maturity comparable to the ap-
plicable repayment period of the loan.
‘‘(c) LOANS PROJECTS BY INDIAN TRIBES.—
‘‘(1) IN GENERAL.—For any project undertaken
by an Indian tribe with assistance under this title,
the Secretary shall—
‘‘(A) determine, based on the findings in the
proposal under section 102, the reimbursable and
nonreimbursable costs for the project 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) LEAVITT ACT.—The Act of July 1, 1932
(chapter 369; 25 U.S.C. 386a), popularly known as
the ‘Leavitt Act’, shall not apply to loans made under
this Act.
‘‘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. The
Secretary shall require the recipient organization to provide
matching funds in an amount equal to 50 percent of the
amount of the grant.
‘‘(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 inter-
est at a rate established by the Secretary of the Treasury
in the same manner as provided in section 105(b)(5) for
loans under title II.
‘‘SEC. 202. REPAYMENT OF LOANS.
‘‘Each loan made under this title shall be repaid with-
in the 5-year period beginning on the date the Secretary
certifies that work to be carried out with the loan is com-
pleted.
‘‘SEC. 203. ELIGIBLE ACTIVITIES.
‘‘(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 water production,
conveyance, conservation, and management.
‘‘(b) ADDITIONAL ACTIVITIES.—The Secretary may
add to the list of eligible activities under subsection (a) as
the Secretary considers appropriate, except that any such
addition shall not take effect until 60 days after the Sec-
retary publishes a notice of the proposed addition in the
Federal Register, and has notified the Committee on Re-
sources of the House of Representatives and the Committee
on Energy and Natural Resources of the 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 organization, expressing either the Bureau of Rec-
lamation’s interest or disinterest in participating in the
project.
‘‘(b) APPLICATION.—30 days after receipt of a response
under subsection (a) expressing the Bureau of Reclama-
tion’s interest in participating in a project, the organiza-
tion may submit to the Secretary an appropriate loan or
grant application, giving details of the project and the an-
ticipated public benefits.
‘‘(c) CONTENTS.—The application for any project pro-
posal under this title shall include each of the following:
‘‘(1) A resolution by the board of directors of the
organization stating—
‘‘(A) the total estimated project cost;
‘‘(B) the amount of the grant or loan re-
quested;
‘‘(C) the amount of the non-Federal con-
tribution for any 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 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 the proposed project.
‘‘(5) A 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 a
schedule of funding requirements under this title, in
sufficient detail to provide an analysis of the pro-
posed construction program.
‘‘(7) A description of the proposed Federal fund-
ing for the project and of the non-Federal funding for
the project.
‘‘(d) COSTS.—The cost of any investigations and prep-
aration of any environmental documentation for a project
carried out with assistance under this title shall be borne
by the project applicant, and shall be credited against the
non-Federal cost share.
‘‘(e) ANNUAL LISTING.—The Secretary shall include in
the annual budget justification for the Bureau of Reclama-
tion, a listing of the activities and total funding required
for work committed to under this title.
‘‘SEC. 205. TERMS AND CONDITIONS OF PROJECT WORK.
‘‘The Secretary shall examine each project proposal
submitted under this title to determine if the project can
reasonably be expected to accomplish its purpose, and ap-
prove or disapprove such proposal by September 1 of the
year in which the application for assistance under this title
is submitted. If the Secretary approves the proposal, and
subject to the availability of appropriations, the Secretary
shall provide funding within 60 days after such approval
for work scheduled for the next fiscal year.
‘‘SEC. 206. LIMITATION ON PROJECT PROPOSALS.
‘‘Only one proposal may be submitted under this title
by an applicant in any 5-year period.
‘‘TITLE III—LOAN GUARANTEES
‘‘SEC. 301. ESTABLISHMENT OF LOAN GUARANTEE PRO-
GRAM.
‘‘There is hereby established within the Bureau of Rec-
lamation 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 sup-
port under the demonstration program to organizations
through the provision of loan guarantees for the purposes
for which assistance is authorized under titles I and II,
under such terms and conditions as are specified in this
section. Any proposal for a project submitted under this
title shall set forth a plan and estimated costs, in detail,
comparable 
to 
those 
required 
to 
be 
included 
in
preauthorization reports required for a project under the
Federal reclamation laws.
‘‘(b) SELECTION OF RECIPIENTS.—The Secretary shall
adopt and use competitive procedures in the selection of or-
ganizations to receive loan guarantees under this section.
In selecting any organization to receive a loan guarantee
under this section, the Secretary shall consider, at a min-
imum, the following:
‘‘(1) The extent to which the loan guarantee
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 comply with a Federal or State environ-
mental statute or regulation.
‘‘(5) The extent to which the loan guarantee
would enable the organization 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 pro-
gram as a whole on other Bureau of Reclamation pro-
grams.
‘‘(c) APPORTIONMENT.—The total amount made avail-
able 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.
‘‘(d) MAXIMUM.—The maximum amount of a loan
guaranteed under this section may not exceed 75 percent
of the total cost of the project carried out with the loan.
‘‘(e) LIMITATION ON USE OF LOAN.—No loan guaran-
teed 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 re-
quirements under titles I and II shall similarly apply to
loan guarantees under this title.
‘‘(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 ap-
plicable State law.
‘‘(h) FULL FAITH AND CREDIT.—Any loan guarantee
issued pursuant to this section shall constitute an obliga-
tion, 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 subsection, the Secretary shall submit
a report to the Congress on the beneficial use and suggested
improvements for use of loan guarantees under this title 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 10 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.
‘‘The Secretary shall assess and collect a fee to defray
the cost of examining each proposal for a loan, grant, or
loan guarantee under this Act. The amount of the fee shall
be equal to $5,000 or 1⁄10 of 1 percent of the Federal share
of the costs of the proposed project, whichever is greater.
The Secretary shall require that 50 percent of the fee shall
accompany the application and the remainder shall be due
only upon approval of the project by the Secretary.
‘‘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 GUARAN-
TEES.—A project sponsor shall be eligible for a loan, grant,
loan guarantee, or combination thereof for a project pro-
posal under this Act. An applicant may submit one pro-
posal to be carried out with assistance under more than
one title under this Act. No organization shall be eligible
for an additional loan, grant, loan guarantee, or any com-
bination thereof for the same project that has previously re-
ceived 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 mainte-
nance of any project receiving a loan, grant or loan guar-
antee 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 Reclama-
tion Projects Act of 1956 (43 U.S.C. 422i–422k–1)
are redesignated as sections 403 through 407, respec-
tively.
(2) Section 404 of such Act, as redesignated by
paragraph (1) of this subsection, is amended as fol-
lows:
(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 pur-
suant 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 Rec-
lamation 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 $900,000,000 may be appro-
priated to carry out title I and to complete ongoing
projects under Public Law 84–984, $300,000,000 may
be 
appropriated 
to 
carry 
out 
title 
II, 
and
$100,000,000 may be appropriated to carry out title
III. Of funds authorized under this Act, not more
than 20 percent shall be used for projects to be carried
out by Indian tribes or in economically disadvan-
taged communities. 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
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 en-
actment of this Act.
SEC. 206. LIMITATION.
Activities funded under this title shall not be consid-
ered a supplemental or additional benefit under the Act of
June 17, 1902 (82 Stat. 388), and all Acts amendatory
thereof or supplementary thereto.
TITLE III—MISCELLANEOUS
SEC. 301. SECRETARIAL ACTIONS TO REDUCE CALIFORNIA’S
USE OF COLORADO RIVER WATER.
(a) REVIEW.—The Secretary shall review programs
that are administered by the Department of the Interior
in furtherance of the goal of reducing California’s use of
Colorado River water to its basic annual apportionment,
in a manner consistent with amounts and deadlines estab-
lished in the Interim Surplus Guidelines.
(b) UTILIZATION OF EXISTING PROGRAMS AND AU-
THORITIES.—The Secretary shall utilize existing programs
and authorities in furtherance of the goal of reducing Cali-
fornia’s current use of Colorado River water.
(c) IDENTIFICATION
OF STATUS
OF ONGOING EF-
FORTS.—In preparing the operating plans described in sec-
tion 602(b) of the Colorado River Basin Project Act of 1968,
beginning with the operating plan for 2003, the Secretary
shall specifically identify and describe the status of ongoing
efforts to reduce California’s current use of Colorado River
water.
(d) FUNDING TO ADDRESS IMPACTS
OF QSA ON
SALTON SEA.—There is authorized to be appropriated to
the Secretary $60,000,000 for activities to address environ-
mental impacts on the Salton Sea associated with imple-
mentation of the Quantification Settlement Agreement.
(e) BASIS FOR DETERMINATIONS OF DOMESTIC COLO-
RADO RIVER SURPLUS CONDITIONS.—For the purpose of
assuring that California expeditiously takes all required ac-
tions to reduce its use of Colorado River water to its alloca-
tion of 4,400,000 acre-feet, in accordance with the strategy
set forth in the Colorado River Interim Surplus Guidelines
published in the Federal Register on January 25, 2001, the
Secretary shall, on and after January 1, 2016, base deter-
minations of domestic Colorado River surplus conditions
under Article II(B)(2) of the Supreme Court Decree in Ari-
zona v. California, 376 U.S. 340 (1964) exclusively on the
70R spill avoidance strategy, as set forth in section IV of
the Interim Surplus Guidelines.
SEC. 302. WILLARD BAY RESERVOIR ENLARGEMENT STUDY.
(a) AUTHORIZATION OF FEASIBILITY STUDY.—Pursu-
ant to the reclamation laws, the Secretary, through the Bu-
reau of Reclamation, may conduct a feasibility study on
raising the height of Arthur V. Watkins Dam and thereby
enlarging the Willard Bay Reservoir for the development
of additional storage to meet water supply needs within the
Weber Basin Project area. The feasibility study shall in-
clude such environmental evaluation as required under the
National Environmental Policy Act of 1969 and a cost allo-
cation as required under the Reclamation Projects Act of
1939.
(b) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit a report
on the results of the study to the Congress for review and
approval.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary to carry out
this section $2,000,000.
SEC. 303. AMENDMENTS TO THE FEDERAL WATER PROJECT
RECREATION ACT.
(a) CONGRESSIONAL POLICY.—The first section of the
Federal Water Project Recreation Act (16 U.S.C. 460l–12)
is amended by striking ‘‘public bodies’’ and inserting ‘‘enti-
ties’’.
(b) ALLOCATION OF COSTS.—Section 2 of the Federal
Water Project Recreation Act (16 U.S.C. 460l–13) is
amended—
(1) in subsection (a) by striking ‘‘, before author-
ization of a project,’’;
(2) in subsection (a), by striking ‘‘public bodies’’
and inserting ‘‘entities’’ and by striking ‘‘Projects au-
thorized during the calendar year’’ and all that fol-
lows to the end of the subsection;
(3) in subsection (b) by striking ‘‘non-Federal
interests’’ each place it appears and inserting ‘‘non-
Federal entities’’;
(4) in subsection (b)(2)—
(A) by striking ‘‘: Provided, That the source
of repayment may be limited to’’ and inserting
‘‘. The source of repayment may include’’; and
(B) by inserting ‘‘and retained’’ after ‘‘col-
lected’’; and
(5) in subsection (b)(2) by adding at the end the
following: ‘‘Fees and charges may be collected, re-
tained and used by the non-Federal entities for oper-
ation, maintenance, and replacement of recreation fa-
cilities on project lands and waters being managed by
the non-Federal entities. As established by the Sec-
retary, any excess revenues will be credited to the Rec-
lamation Fund to remain available, without further
Act of appropriation, to support recreation develop-
ment and management of Bureau of Reclamation
land and water areas.’’.
(c) RECREATION AND FISH AND WILDLIFE ENHANCE-
MENT.—Section 3 of the Federal Water Project Recreation
Act (16 U.S.C. 460l–14) is amended—
(1) by striking subsection (a), redesignating sub-
section (b) as subsection (a), and inserting after sub-
section (a) (as so redesignated) the following:
‘‘(b) In the absence of a non-Federal managing part-
ner, the Secretary of the Interior, acting through the Com-
missioner of Reclamation, is authorized, as a part of any
water resource development project under the Secretary’s
control heretofore or hereafter authorized or reauthorized,
investigate, plan, construct, replace, manage, operate and
maintain or otherwise provide for public use and enjoyment
of project lands, facilities, and water areas in a manner
coordinated with the other project purposes; the costs of
which are nonreimbursable.’’;
(2) in subsection (a) (as so redesignated) by in-
serting ‘‘or enhance’’ after ‘‘project construction to
preserve’’, by striking ‘‘enhancement potential’’ and
inserting ‘‘resources’’, and by striking ‘‘public bodies’’
each place it appears and striking ‘‘public body’’ and
inserting in lieu thereof ‘‘entities’’ and ‘‘entity’’, re-
spectively;
(3) in subsection (c)(1)(B) by striking ‘‘public
body’’ each place it appears and inserting ‘‘entity’’;
and
(4) by adding at the end of subsection (c) the fol-
lowing:
‘‘(3) In the absence of a non-Federal managing part-
ner, the Secretary of the Interior, acting through the Com-
missioner of Reclamation, may modify or expand existing
facilities, the costs of which are nonreimbursable.’’.
(d) LEASE OF FACILITIES.—Section 4 of the Federal
Water Project Recreation Act (16 U.S.C. 460l–15) is re-
pealed.
(e) POST AUTHORIZATION DEVELOPMENT.—Section 5
of the Federal Water Project Recreation Act (16 U.S.C.
460l–16) is amended by striking ‘‘public bodies’’ and insert-
ing ‘‘entities’’.
(f) MISCELLANEOUS REPORTS.—Section 6 of the Fed-
eral Water Project Recreation Act (16 U.S.C. 460l–17) is
amended—
(1) in subsection (e) by striking ‘‘and 5’’ and in-
serting ‘‘and between 3 and 4’’;
(2) in subsection (g) by striking ‘‘3(b)’’ and in-
serting ‘‘3(a)’’; and
(3) in subsection (h) by striking ‘‘public bodies’’
and inserting ‘‘entities’’; and by striking ‘‘3(b)’’ and
inserting ‘‘3(a)’’.
(g) MISCELLANEOUS REPORTS.—Section 6 of the Fed-
eral Water Project Recreation Act (16 U.S.C. 460l–17) is
amended by adding at the end the following:
‘‘(i) Amounts collected under section 2805 of Public
Law 102–575 for admission to or recreation use of project
land and waters shall be deposited in a special account in
the Reclamation Fund and remain available to the Com-
missioner of Reclamation without further appropriation
until expended. Such funds may be used for the develop-
ment, reconstruction, replacement, management, and oper-
ation of recreation resources on project lands and waters
with not less than 60 percent being used at the site from
which the fees were collected.’’.
(h) MANAGEMENT FOR RECREATION, FISH AND WILD-
LIFE, AND OTHER RESOURCES.—Section 7 of the Federal
Water Project Recreation Act (16 U.S.C. 460l–18) is
amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) The Secretary of the Interior, acting through the
Commissioner of Reclamation, is authorized, in conjunction
with any water resource development project heretofore or
hereafter constructed or which is otherwise under the Sec-
retary’s control, to—
‘‘(1) investigate, plan, design, construct, replace,
manage, operate, and maintain or otherwise provide
for recreation and fish and wildlife enhancement fa-
cilities and services, the costs of which may be non-
reimbursable;
‘‘(2) provide for public use and enjoyment of
project lands, facilities, and water areas in a manner
coordinated with the other project purposes; and
‘‘(3) to acquire or otherwise make available such
adjacent lands or interests therein as are necessary
for public recreation or fish and wildlife use.’’;
(2) in subsection (b), by inserting ‘‘, acting
through the Commissioner of Reclamation,’’ and in-
serting ‘‘and management’’ after ‘‘administration’’;
and by striking ‘‘lease’’; and by adding at the end
‘‘All such agreements or contracts for administration
or management shall identify the terms and condi-
tions of administration, management, and use, ap-
provals required from Bureau of Reclamation, and
assure public access to project lands managed for
recreation.’’;
(3) by adding:
‘‘(7) The Secretary of the Interior, acting
through the Commissioner of Reclamation, is also au-
thorized to enter into agreements with other non-Fed-
eral entities for recreation and concession manage-
ment at Bureau of Reclamation projects. All such
agreements or contracts for management shall iden-
tify the terms and conditions of management and use,
approvals required from the Bureau of Reclamation,
and assure public access to project lands managed for
recreation.’’; and
(4) by adding at the end the following:
‘‘(d) The Secretary of the Interior, acting through the
Commissioner of Reclamation, is authorized to approve the
administration, management, and use of Bureau of Rec-
lamation lands, waters, and the resources thereon by means
of easements, leases, licenses, contracts, permits, and other
forms of conveyance instruments.
‘‘(e) The Secretary of the Interior, acting through the
Commissioner of Reclamation, is authorized to produce
and/or sell to the public: information about Bureau of Rec-
lamation programs including publications, photographs,
computer discs, maps, brochures, posters, videos, and other
memorabilia related to the Bureau of Reclamation, and the
natural, historic, and cultural resources of the area; and,
other appropriate and suitable merchandise to enhance the
public’s use of the area. Income from such sales shall be
credited to the Reclamation Fund to remain available,
without further Act of appropriation, to pay costs associ-
ated with the production and sale of items, and any re-
maining revenue shall be available, without further Act of
appropriation, to support recreation development and man-
agement of Bureau of Reclamation land and water areas.’’.
(i) DEFINITIONS.—Section 10 of the Federal Water
Project Recreation Act (16 U.S.C. 4601–21) is amended by
adding at the end the following:
‘‘(f) The term ‘non-Federal entity’ means non-Federal
public bodies, nonprofit organizations, Indian tribes, or en-
tities within the private sector.’’.
(j) AUTHORIZATION OF APPROPRIATIONS.—The Fed-
eral Water Project Recreation Act (16 U.S.C. 460l–12 et
seq.) is amended by redesignating section 12 as section 13,
and by inserting after section 11 the following:
‘‘SEC. 12. FUND AUTHORIZATIONS.
‘‘There is hereby authorized to be appropriated from
time to time such funds as may be required for the Sec-
retary of the Interior, acting through the Commissioner of
Reclamation to accomplish the purposes of this Act and re-
main available until expended.’’.
SEC. 304. LIMITATIONS ON RECOVERY OF REIMBURSABLE
EXPENSES 
FOR 
VALVE 
REHABILITATION
PROJECT AT THE ARROWROCK DAM, BOISE
PROJECT, IDAHO.
The Secretary of the Interior, in accepting payments
for the reimbursable expenses incurred for the replacement,
repair, and extraordinary maintenance with regard to the
Valve Rehabilitation Project at the Arrowrock Dam on the
Arrowrock Division of the Boise Project, Idaho—
(1) shall recover no more than $6,900,000 of such
expenses according to the application of the current
formula for charging users for reimbursable operation
and maintenance expenses at Bureau of Reclamation
facilities on the Boise Project; and
(2) shall recover this portion of such expenses
over a period of not less than 15 years.
SEC. 305. CONTRACT ASSURANCES FOR PAYMENT OF PRE-
VAILING WAGES FOR LABORERS AND ME-
CHANICS.
Any contract under which laborers or mechanics may
be employed, for a project or activity funded in whole or
in part under title I or II (or under an amendment made
by such title), shall contain reasonable assurances that each
contractor or subcontractor involved shall pay laborers and
mechanics employed by such contractor or subcontractor
wages equivalent to those applicable under the Act of March
3, 1931 (40 U.S.C. 276a et seq., commonly known as the
Davis-Bacon Act).
Union Calendar No. 217
107TH CONGRESS
2D SESSION
H. R. 3208
[Report No. 107–360, Part I]
A BILL
To authorize funding through the Secretary of the
Interior for the implementation of a comprehen-
sive 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.
MARCH 14, 2002
The Committees on Transportation and Infrastructure
and Education and the Workforce discharged; com-
mitted to the Committee of the Whole House on the
State of the Union and ordered to be printed