I 
108TH CONGRESS 
1ST SESSION H. R. 2641
To authorize the Secretary of the Interior to implement the Calfed Bay-
Delta Program. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2003
Mr. GEORGE MILLER of California (for himself and Mrs. TAUSCHER) intro-
duced the following bill; which was referred to the Committee on Re-
sources, and in addition to the Committee on Transportation and Infra-
structure, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To authorize the Secretary of the Interior to implement 
the Calfed Bay-Delta Program.
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 ‘‘Calfed Bay-Delta Au-
thorization Act’’. 
SEC. 2. DEFINITIONS. 
For purposes of this Act:
(1) CALFED BAY-DELTA PROGRAM.—The term 
‘‘Calfed Bay-Delta Program’’ means the programs, 
projects, complementary actions, and activities un-
dertaken through coordinated planning, implementa-
tion, and assessment activities of the State and Fed-
eral agencies in a manner consistent with the Record 
of Decision. 
(2) CALIFORNIA BAY-DELTA AUTHORITY.—The 
term ‘‘California Bay-Delta Authority’’ means a 
committee of State and Federal agencies and public 
members established to oversee the Calfed Bay-Delta 
Program, as set forth in the California Bay-Delta 
Authority Act (2002 Cal. Stat. Chap. 812). 
(3) ENVIRONMENTAL
WATER
ACCOUNT.—The 
term ‘‘Environmental Water Account’’ means the re-
serve of water provided for in the Record of Decision 
to provide water, in addition to the amount of the 
regulatory baseline, to protect and restore Delta 
fisheries. 
(4) FEDERAL AGENCIES.—The term ‘‘Federal 
agencies’’ means the following—
(A) the Department of the Interior (includ-
ing the Bureau of Reclamation, Fish and Wild-
life Service, Bureau of Land Management, and 
United States Geological Survey),
(B) the Environmental Protection Agency; 
(C) the Army Corps of Engineers; 
(D) the Department of Commerce (includ-
ing NOAA Fisheries); 
(E) the Department of Agriculture (includ-
ing the Natural Resources Conservation Service 
and the Forest Service); and 
(F) the Western Area Power Administra-
tion. 
(5) GOVERNOR.—The term ‘‘Governor’’ means 
the Governor of the State of California. 
(6) 
IMPLEMENTATION
MEMORANDUM.—The 
term ‘‘Implementation Memorandum’’ means the 
Calfed Bay-Delta Program Implementation Memo-
randum of Understanding dated August 28, 2000, 
executed by the Federal agencies and the State 
agencies. 
(7) RECORD OF DECISION.—The term ‘‘Record 
of Decision’’ means the Federal programmatic 
Record of Decision dated August 28, 2000, issued 
by the Federal agencies and supported by the State. 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(9) STAGE 1.—The term ‘‘Stage 1’’ means the 
programs and projects planned for the first 7 years
of the Calfed Bay-Delta Program, as specified in the 
Record of Decision. 
(10) STATE.—The term ‘‘State’’ means the 
State of California. 
(11) STATE
AGENCIES.—The term ‘‘State 
Agencies’’ means the following—
(A) the Resources Agency of California 
(including the Department of Water Resources 
and the Department of Fish and Game); 
(B) the California Environmental Protec-
tion Agency (including the State Water Re-
sources Control Board); and 
(C) the California Department of Food 
and Agriculture. 
SEC. 3. BAY DELTA PROGRAM. 
(a) FINDINGS.—Congress finds that—
(1) the mission of the Calfed Bay-Delta Pro-
gram is to develop and implement to a long-term 
comprehensive plan that will improve water manage-
ment and restore the ecological health of the Bay-
Delta system; 
(2) the Federal and State agencies participating 
in the Bay-Delta Program have prepared a thirty-
year plan, the Record of Decision, dated August 28, 
2000, to coordinate existing programs and direct
new programs to improve the quality and reliability 
of the State’s water supplies and to restore the eco-
logical health of the Bay-Delta watershed; 
(3) the Calfed Bay-Delta Program was devel-
oped as a joint Federal-State program to deal effec-
tively with the multijurisdictional issues involved in 
managing the Bay-Delta system; and 
(4) while this Act authorizes appropriations for 
four years of this thirty-year program, it is antici-
pated that the Federal Government will participate 
as a full partner with the State of California for the 
duration of this thirty-year Program. 
(b) IN GENERAL.—The Record of Decision is ap-
proved as a framework for addressing Calfed Bay-Delta 
Program components consisting of water storage, eco-
system restoration, water supply reliability, conveyance, 
water use efficiency, water quality, water transfers, water-
sheds, Environmental Water Account, levee stability, gov-
ernance, and science. The Secretary and the heads of the 
Federal agencies are authorized to carry out (undertake, 
fund, or participate in) the activities in the Record of De-
cision, subject to the provisions of this Act and the con-
straints of the Record of Decision, so that the Program 
activities consisting of protecting drinking water quality; 
restoring ecological health; improving water supply reli-
ability, including additional water storage and conveyance, 
and protecting Delta levees will progress in a balanced 
manner, as set forth in section 5(b) of this Act. 
(c) AUTHORIZED ACTIVITIES.—
(1) IN GENERAL.—The Secretary and the heads 
of the Federal agencies are authorized to carry out 
the activities described in this subsection in further-
ance of Stage 1 of the Calfed Bay-Delta Program as 
set forth in the Record of Decision, subject to the 
cost-share and other provisions of this Act, if the ac-
tivity has been subject to environmental review and 
approval as required under applicable Federal and 
State law, and has been approved and certified by 
the California Bay-Delta Authority to be consistent 
with the Record of Decision and all applicable State 
and Federal law. 
(2) SPECIFIC
ACTIVITIES
AUTHORIZED.—The 
Secretary of the Interior is authorized to carry out 
the activities set forth in subparagraphs (A) through 
(H), and subparagraphs (K), (L), and (M) of sub-
section (c)(3). The Administrator of the Environ-
mental Protection Agency is authorized to carry out 
the activities set forth in subparagraphs (G), (H), 
(I), (K), and (L) of subsection (c)(3). The Secretary 
of the Army is authorized to carry out the activities
set forth in subparagraphs (G), (J), (K), and (L) of 
subsection (c)(3). The Secretary of Commerce is au-
thorized to carry out the activities set forth in sub-
paragraphs (E), (G), (H), and (K) of subsection 
(c)(3). The Secretary of Agriculture is authorized to 
carry out the activities set forth in subparagraphs 
(C), (G), (H), (I), and (K) of subsection (c)(3). 
(3) PROGRAM ACTIVITIES.—
(A) WATER
STORAGE.—Of the amounts 
authorized to be appropriated for fiscal years 
2004 through 2007 under this Act, no more 
than $102,000,000 may be expended for the 
following—
(i) planning activities and feasibility 
studies for the following projects to be pur-
sued with project-specific study—
(I) enlargement of Shasta Dam 
in Shasta County (not to exceed 
$12,000,000); and 
(II) enlargement of Los Vaqueros 
Reservoir in Contra Costa County 
(not to exceed $17,000,000); 
(ii) planning and feasibility studies for 
the following projects requiring further 
consideration—
(I) Sites Reservoir in Colusa 
County (not to exceed $6,000,000); 
and 
(II) Upper San Joaquin River 
storage in Fresno and Madera Coun-
ties (not to exceed $11,000,000); 
(iii) developing and implementing 
groundwater management and ground-
water storage projects (not to exceed 
$50,000,000); and 
(iv) comprehensive water management 
planning (not to exceed $6,000,000). 
(B) CONVEYANCE.—Of the amounts au-
thorized to be appropriated for fiscal years 
2004 through 2007 under this Act, no more 
than $77,000,000 may be expended for the fol-
lowing—
(i) South Delta Actions (not to exceed 
$45,000,000)—
(I) South Delta Improvements 
Program to—
(aa) 
increase 
the 
State 
Water Project export limit to 
8,500 cfs; such increased pump-
ing is conditional upon avoiding
adverse impacts to fishery protec-
tion and in-Delta water supply 
reliability; 
(bb) install permanent, oper-
able barriers in the south Delta; 
(cc) design and construct 
fish screens and intake facilities 
at Clifton Court Forebay and the 
Tracy Pumping Plant facilities; 
and 
(dd) 
increase 
the 
State 
Water Project export to the max-
imum capability of 10,300 cfs; 
such increased pumping is condi-
tional upon avoiding adverse im-
pacts to fishery protection and 
in-Delta water supply reliability; 
(II) reduction of agricultural 
drainage in south Delta channels and 
other actions necessary to minimize 
impacts of such drainage on drinking 
water quality; 
(III) design and construction of 
lower San Joaquin River floodway im-
provements;
(IV) installation and operation of 
temporary barriers in the south Delta 
until fully operable barriers are con-
structed; 
(V) actions to protect navigation 
and local diversions not adequately 
protected by the temporary barriers; 
(VI) actions identified in sub-
clause (I) or other actions necessary 
to offset degradation of drinking 
water quality in the Delta due to the 
South Delta Improvements Program; 
and 
(VII) actions at Franks Tract to 
improve water quality in the Delta; 
(ii) North Delta Actions (not to ex-
ceed $12,000,000)—
(I) evaluation and implementa-
tion of improved operational proce-
dures for the Delta Cross Channel to 
address fishery and water quality con-
cerns; 
(II) evaluation of a screened 
through-Delta facility on the Sac-
ramento River, including full consider-
ation of the constraints identified in 
the Record of Decision regarding 
Delta Cross Channel operations strat-
egies, water quality impacts, technical 
viability, and fishery concerns; and 
(III) design and construction of 
lower Mokelumne River floodway im-
provements; 
(iii) 
interties 
(not 
to 
exceed 
$10,000,000)—
(I) evaluation and construction of 
an intertie between the State Water 
Project and the Central Valley Project 
facilities at or near the City of Tracy; 
and 
(II) assessment of the connection 
of the Central Valley Project to the 
State Water Project’s Clifton Court 
Forebay with a corresponding increase 
in the Forebay’s screened intake; and 
(iv) evaluation and implementation of 
the San Luis Reservoir lowpoint improve-
ment project (not to exceed $10,000,000); 
(C) WATER
USE
EFFICIENCY.—Of the 
amounts authorized to be appropriated for fis-
cal years 2004 through 2007 under this Act, no 
more than $153,000,000 may be expended for 
the following—
(i) water conservation projects that 
provide water supply reliability, water 
quality, and ecosystem benefits to the Bay-
Delta system (not to exceed $61,000,000); 
(ii) technical assistance for urban and 
agricultural water conservation projects 
(not to exceed $5,000,000); 
(iii) water recycling and desalination 
projects, including but not limited to 
projects identified in the Bay Area Water 
Plan and the Southern California Com-
prehensive Water Reclamation and Reuse 
Study (not to exceed $84,000,000), as fol-
lows—
(I) in providing financial assist-
ance under this clause, the Secretary 
shall give priority consideration to 
projects that include regional solu-
tions to benefit regional water supply 
and reliability needs; 
(II) the Secretary shall review 
any feasibility level studies for sea-
water desalination and regional brine 
line projects that have been com-
pleted, whether or not those studies 
were prepared with financial assist-
ance from the Secretary; 
(III) the Secretary shall report to 
the Congress within 90 days after the 
completion of a feasibility study or the 
review of a feasibility study for the 
purposes of providing design and con-
struction assistance for the construc-
tion of desalination and regional brine 
line projects; and 
(IV) the Federal share of the 
cost of any activity carried out with 
assistance under this clause may not 
exceed the lesser of 25 percent of the 
total 
cost 
of 
the 
activity 
or 
$50,000,000; 
(iv) water measurement and transfer 
actions (not to exceed $1,500,000); and 
(v) certification of implementation of 
best management practices for urban 
water 
conservation 
(not 
to 
exceed 
$1,500,000).
(D) WATER TRANSFERS.—Of the amounts 
authorized to be appropriated for fiscal years 
2004 through 2007 under this Act, no more 
than $3,000,000 may be expended for the fol-
lowing—
(i) increasing the availability of exist-
ing facilities for water transfers; 
(ii) lowering transaction costs through 
permit streamlining; and 
(iii) maintaining a water transfer in-
formation clearinghouse. 
(E) ENVIRONMENTAL WATER ACCOUNT.—
Of the amounts authorized to be appropriated 
for fiscal years 2004 through 2007 under this 
act, no more than $75,000,000 may be ex-
pended for implementation of the Environ-
mental Water Account. 
(F) INTEGRATED REGIONAL WATER MAN-
AGEMENT PLANS.—Of the amounts authorized 
to be appropriated for fiscal years 2004 
through 2007 under this Act, no more than 
$95,000,000 may be expended for the fol-
lowing—
(i) establishing a competitive grants 
program to assist local and regional com-
munities in California in developing and 
implementing integrated regional water 
management plans to carry out Stage 1 of 
the Record of Decision; and 
(ii) implementation of projects and 
programs in California that improve water 
supply reliability, water quality, ecosystem 
restoration, and flood protection, or meet 
other local and regional needs, that are 
consistent with, and make a significant 
contribution to, Stage 1 of the Calfed Bay-
Delta Program. 
(G) ECOSYSTEM
RESTORATION.—Of the 
amounts authorized to be appropriated for fis-
cal years 2004 through 2007 under this Act, no 
more than $100,000,000 may be expended for 
the following—
(i) implementation of large-scale res-
toration projects in San Francisco Bay, 
the Delta, and its tributaries; 
(ii) restoration of habitat in the Delta, 
San Pablo Bay, and Suisun Bay and 
Marsh, including tidal wetlands and ripar-
ian habitat;
(iii) fish screen and fish passage im-
provement projects; 
(iv) implementation of an invasive 
species program, including prevention, con-
trol, and eradication; 
(v) development and integration of 
State and Federal agricultural programs 
that benefit wildlife into the Ecosystem 
Restoration Program; 
(vi) financial and technical support 
for locally-based collaborative programs to 
restore habitat while addressing the con-
cerns of local communities; 
(vii) 
water 
quality 
improvement 
projects to reduce salinity, selenium, mer-
cury, pesticides, trace metals, dissolved ox-
ygen, turbidity, sediment, and other pollut-
ants; 
(viii) land and water acquisitions to 
improve habitat and fish spawning and 
survival in the Delta and its tributaries; 
(ix) integrated flood management, 
ecosystem restoration, and levee protection 
projects;
(x) scientific evaluations and targeted 
research on program activities; and 
(xi) strategic planning and tracking of 
program performance. 
(H) WATERSHEDS.—Of the amounts au-
thorized to be appropriated for fiscal years 
2004 through 2007 under this Act, no more 
than $50,000,000 may be expended for the fol-
lowing—
(i) building local capacity to assess 
and manage watersheds affecting the Bay-
Delta system; 
(ii) technical assistance for watershed 
assessments and management plans; and 
(iii) developing and implementing lo-
cally-based watershed conservation, main-
tenance, and restoration actions. 
(I) WATER QUALITY.—Of the amounts au-
thorized to be appropriated for fiscal years 
2004 through 2007 under this Act, no more 
than $50,000,000 may be expended for the fol-
lowing—
(i) implementation of source control 
programs in the Delta and its tributaries;
(ii) 
developing 
recommendations 
through scientific panels and advisory 
council processes to meet the Calfed Bay-
Delta Program goal of continuous improve-
ment in Delta water quality for all uses; 
(iii) investing in treatment technology 
demonstration projects; 
(iv) controlling runoff into the Cali-
fornia aqueduct and other similar convey-
ances; 
(v) addressing water quality problems 
at the North Bay Aqueduct; 
(vi) studying recirculation of export 
water to reduce salinity and improve dis-
solved oxygen in the San Joaquin River; 
(vii) supporting and participating in 
the development of projects to enable San 
Francisco Bay Area water districts to work 
cooperatively to address their water quality 
and supply reliability issues, including con-
nections between aqueducts, water trans-
fers, water conservation measures, institu-
tional arrangements, and infrastructure 
improvements that encourage regional ap-
proaches, and investigations and studies of
available capacity in a project to deliver 
water to the East Bay Municipal Utility 
District under its contract with the Bureau 
of Reclamation dated July 20, 2001, in 
order to determine if such capacity can be 
utilized to meet the above objectives: Pro-
vided, That these investigations and stud-
ies shall be conducted consistent with the 
Record of Decision; 
(viii) development of water quality ex-
changes and other programs to make high 
quality water available to urban areas; and 
(ix) development and implementation 
of a plan to meet all existing water quality 
standards for which the State and Federal 
water projects have responsibility. 
(J) LEVEE
STABILITY.—Of the amounts 
authorized to be appropriated for fiscal years 
2004 through 2007 under this Act, no more 
than $70,000,000 may be expended for the fol-
lowing—
(i) assisting local reclamation districts 
in reconstructing Delta levees to a base 
level 
of 
protection 
(not 
to 
exceed 
$20,000,000);
(ii) enhancing the stability of levees 
that have particular importance in the sys-
tem through the Delta Levee Special Im-
provement Projects program (not to exceed 
$20,000,000); 
(iii) 
developing 
best 
management 
practices to control and reverse land sub-
sidence on Delta islands (not to exceed 
$1,000,000); 
(iv) refining the Delta Emergency 
Management 
Plan 
(not 
to 
exceed 
$1,000,000); 
(v) developing a Delta Risk Manage-
ment Strategy after assessing the con-
sequences of Delta levee failure from 
floods, seepage, subsidence, and earth-
quakes (not to exceed $500,000); 
(vi) developing a strategy for reuse of 
dredged materials on Delta islands (not to 
exceed $1,500,000); 
(vii) evaluating, and where appro-
priate, rehabilitating the Suisun Marsh lev-
ees (not to exceed $6,000,000); and 
(viii) integrated flood management, 
ecosystem restoration, and levee protection
projects, including design and construction 
of lower San Joaquin River and lower 
Mokelumne River floodway improvements 
and other projects under the Sacramento-
San Joaquin Comprehensive Study (not to 
exceed $20,000,000); 
(K) SCIENCE.—Of the amounts authorized 
to be appropriated for fiscal years 2004 
through 2007 under this Act, no more than 
$50,000,000 may be expended for the fol-
lowing—
(i) establishing and maintaining an 
independent science board, technical pan-
els, and standing boards to provide over-
sight and peer review of the program; 
(ii) conducting expert evaluations and 
scientific assessments of all program ele-
ments; 
(iii) coordinating existing monitoring 
and scientific research programs; 
(iv) 
developing 
and 
implementing 
adaptive management experiments to test, 
refine 
and 
improve 
scientific 
under-
standings;
(v) establishing performance meas-
ures, and monitoring and evaluating the 
performance of all program elements; and 
(vi) preparing an annual Science Re-
port. 
(L) PROGRAM MANAGEMENT, OVERSIGHT, 
AND COORDINATION.—Of the amounts author-
ized to be appropriated for fiscal years 2004 
through 2007 under this Act, no more than 
$25,000,000 may be expended by the Secretary, 
acting through the Director of the Calfed Bay-
Delta Program, for the following—
(i) program-wide tracking of sched-
ules, finances, and performance; 
(ii) multi-agency oversight and coordi-
nation of Calfed activities to ensure pro-
gram balance and integration; 
(iii) development of interagency cross-
cut budgets and a comprehensive finance 
plan to allocate costs in accordance with 
the beneficiary pays provisions of the 
Record of Decision; 
(iv) coordination of public outreach 
and involvement, including tribal, environ-
mental justice, and public advisory activi-
ties under the Federal Advisory Committee 
Act; and 
(v) development of Annual Reports. 
(M) REFUGE
WATER
SUPPLIES.—Of the 
amounts authorized to be appropriated for fis-
cal years 2004 through 2007 under this Act, no 
more than $30,000,000 may be expended to 
comply with the Level 2 and Level 4 refuge 
water supply requirements set forth in section 
3406(d)(1)(2) of the Central Valley Project Im-
provement Act. Such funds shall be expended 
first to acquire the quantities of Level 4 water 
specified in section 3406(d)(2) of that Act and 
second to acquire 26,000 AF of Level 2 replace-
ment water. Any remaining funds may be ex-
pended to diversify sources of Level 2 refuge 
water supplies. 
(N) GROUNDWATER
MANAGEMENT.—The 
Secretary and the Federal agency heads shall 
not approve, release, transfer, or obligate in any 
manner any funds for the design or construc-
tion of projects described in section 3(c)(3)(A) 
and section 3(c)(3)(B) of this Act until there be 
in effect measures, duly enacted by the Cali-
fornia State legislature and adequate in the
judgment of the Secretary, to manage and con-
trol the pumping of groundwater on a sustain-
able basis within the Calfed Solution Area, as 
that term is used in the Record of Decision. 
(4) AUTHORIZED ACTIONS.—The Secretary and 
the Federal agency heads are authorized to carry 
out the activities authorized by this Act through the 
use of grants, loans, contracts, and cooperative 
agreements with Federal and non-Federal entities 
where the Secretary or Federal agency head deter-
mines that the grant, loan, contract, or cooperative 
agreement will assist in implementing the authorized 
activity in an efficient, timely, and cost-effective 
manner: Provided, however, That such activities shall 
not include construction unless the United States is 
a party to the contract for construction. 
(5) PROJECT REQUIREMENTS REGARDING FEA-
SIBILITY AND APPLICATION OF BENEFICIARIES PAY 
PRINCIPLE.—No Federal funds are authorized for 
any project under the Calfed Bay-Delta program for 
increasing water supply, water yield, water storage, 
or water conveyance that is intended in whole or in 
part for any agricultural, municipal and industrial, 
domestic, or hydroelectric power purposes, unless—
(A) a feasibility study for the project is 
prepared in accordance with this section; 
(B) a report on the findings of such study 
is submitted to the Secretary and the Congress; 
and 
(C) the Secretary certifies that—
(i) the feasibility study and report in-
dicate that total project benefits for those 
purposes will equal or exceed total project 
costs; and 
(ii) the beneficiaries of those purposes 
have demonstrated to the satisfaction of 
the Secretary a willingness and ability to 
pay for costs allocated to them, under the 
beneficiaries pay principle referred to in 
section 2.2.5 of the Record of Decision; 
and 
(iii) such beneficiaries are obligated to 
repay such costs. 
SEC. 4. MANAGEMENT. 
(a) COORDINATION.—In carrying out the Calfed Bay-
Delta Program, the Federal agencies shall coordinate their 
activities with the State agencies. 
(b) PUBLIC PARTICIPATION.—In carrying out the 
Calfed Bay-Delta Program, the Federal agencies shall co-
operate with local and tribal governments and the public 
through a federally chartered advisory committee or other 
appropriate means, to seek input on program elements 
such as planning, design, technical assistance, and devel-
opment of peer review science programs. 
(c) SCIENCE.—In carrying out the Calfed Bay-Delta 
Program, the Federal agencies shall seek to ensure, to the 
maximum extent practicable, that—
(1) all major aspects of implementing the Pro-
gram are subjected to credible and objective sci-
entific review; and 
(2) major decisions are based upon the best 
available scientific information. 
(d) GOVERNANCE.—In carrying out the Calfed Bay-
Delta Program, the Secretary and the Federal agency 
heads are authorized to become voting members of the 
California Bay-Delta Authority, as established in the Cali-
fornia Bay-Delta Authority Act (2002 Cal. Stat. Chap. 
812), to the extent consistent with Federal law. Nothing 
in this subsection shall preempt or otherwise affect any 
Federal law or limit the statutory authority of any Federal 
agency: Provided, That the California Bay-Delta Authority 
shall not be deemed to be an advisory committee within 
the meaning of the Federal Advisory Committee Act (5 
U.S.C. App. 1) and the financial interests of the California
Bay-Delta Authority shall not be imputed to any Federal 
official participating in such Authority. 
(e) ENVIRONMENTAL JUSTICE.—Consistent with Ex-
ecutive Order 12898 pertaining to Federal Actions to Ad-
dress Environmental Justice in Minority and Low-Income 
Populations, it is the intent of the Congress that the Fed-
eral and State agencies should continue to collaborate to 
develop a comprehensive environmental justice workplan 
for the Calfed Bay-Delta Program and fulfill the commit-
ment to addressing environmental justice challenges re-
ferred to in the Calfed Bay-Delta Program Environmental 
Justice Workplan dated December 13, 2000. 
(f) LAND ACQUISITION.—Before obligating or ex-
pending any Federal funds to acquire land for the Eco-
system Restoration Program, the Secretary shall first de-
termine that existing Federal land, State land, or other 
public land is not available for the project purpose. Private 
land acquisitions shall prioritize easements over acquisi-
tions of fee title unless easements are unavailable or un-
suitable for the stated purpose. 
(g) STATUS REPORTS.—The Secretary shall report 
monthly on the Authority’s progress in achieving the water 
supply targets as described in Section 2.2.4 of the Record 
of Decision, the environmental water account require-
ments as described in Section 2.2.7, and the water quality
targets as described in Section 2.2.9, and any pending ac-
tions that may affect the Authority’s ability to achieve 
those targets and requirements. 
SEC. 5. REPORTING REQUIREMENTS. 
(a) REPORT AND CERTIFICATION BY CALFED.—The 
Secretary, in cooperation with the Governor, shall submit 
a report of the California Bay-Delta Authority by Decem-
ber 15 of each year to the appropriate authorizing and 
appropriating Committees of the Senate and the House 
of Representatives that describes the status of implemen-
tation of all components of the Calfed Bay-Delta Program 
and that certifies whether or not the Calfed Bay-Delta 
Program is progressing in a balanced manner which allows 
all program components to be advanced, including addi-
tional water supply, ecosystem restoration, and water 
quality. The Secretary’s report shall describe—
(1) the progress of the Calfed Bay-Delta Pro-
gram in meeting the implementation schedule for the 
Program in a manner consistent with the Record of 
Decision; 
(2) the status of implementation of all compo-
nents of the Calfed Bay-Delta Program; 
(3) expenditures in the past fiscal year and year 
to date for implementing the Calfed Bay-Delta Pro-
gram; and
(4) accomplishments in the past fiscal year and 
year to date in achieving the objectives of additional 
and improved—
(A) water storage; 
(B) water quality; 
(C) water use efficiency; 
(D) ecosystem restoration; 
(E) watershed management; 
(F) levee system integrity; 
(G) water transfers; 
(H) water conveyance; and 
(I) water supply reliability. 
The report shall discuss the status of Calfed Bay-Delta 
Program goals, current schedules, and relevant financing 
agreements. 
(b) STATEMENT OF BALANCE.—Substantial progress 
in each of the categories listed in subsection (a) shall be 
considered in determining whether the Calfed Bay-Delta 
Program is proceeding in a balanced manner for purposes 
of making the certification provided for in subsection (a). 
In addition, in making such certification the Secretary, in 
cooperation with the Governor, shall prepare a statement 
of whether the program is in balance which takes into con-
sideration the following—
(1) status of all Stage 1 actions, including 
goals, schedules, and financing agreements; 
(2) progress on storage projects, conveyance im-
provements, levee improvements, water quality 
projects, and water use efficiency programs; 
(3) completion of key projects and milestones 
identified in the Ecosystem Restoration Program; 
(4) development and implementation of local 
programs for watershed conservation and restora-
tion; 
(5) progress in improving water supply reli-
ability and implementing the Environmental Water 
Account; 
(6) achievement of commitments under State 
and Federal Endangered Species Acts; 
(7) implementation of a comprehensive science 
program; 
(8) progress toward acquisition of the State and 
Federal permits, including Clean Water Act section 
404(a) permits, for implementation of projects in all 
identified program areas; 
(9) progress in achieving benefits in all geo-
graphic regions covered by the Program;
(10) legislative action on water transfer, 
groundwater management, water use efficiency, and 
governance issues; 
(11) status of complementary actions; 
(12) status of mitigation measures; and 
(13) revisions to funding commitments and pro-
gram responsibilities. 
(c) REVISED SCHEDULE.—If the report provided for 
in subsection (a) and the statement of balance provided 
for in subsection (b) conclude that the Calfed Bay-Delta 
Program is not progressing in a balanced manner so that 
no certification of balanced implementation can be made, 
the California Bay-Delta Authority shall prepare a revised 
schedule to ensure the Calfed Bay-Delta Program will 
progress in a balanced manner consistent with the intent 
of the Record of Decision. This revised schedule shall be 
subject to approval by the Secretary and the Governor, 
and upon such approval, shall be submitted to the appro-
priate authorizing and appropriating committees of the 
Senate and the House of Representatives. 
(d) FEASIBILITY STUDIES.—Any feasibility studies 
completed for storage projects as a result of this Act shall 
include identification of project benefits and beneficiaries 
and a cost allocation plan consistent with the beneficiaries 
pay provisions of the Record of Decision.
(e) FINANCIAL SUMMARY.—In addition to the report 
required pursuant to subsection (a), no later than Feb-
ruary 15 of each year the Secretary shall submit to the 
appropriate authorizing and appropriating committees of 
the Senate and the House of Representatives a financial 
report certified by the Secretary containing a detailed ac-
counting of all funds received and obligated by all Federal 
and State agencies responsible for implementing the 
Calfed Bay-Delta Program in the previous fiscal year, a 
budget for the proposed projects (including a description 
of the project, authorization level, and project status) to 
be carried out in the upcoming fiscal year with the Federal 
portion of funds authorized under this Act, and a listing 
of all projects to be undertaken in the upcoming fiscal year 
with the Federal portion of funds authorized under this 
Act. 
(f) REPORT.—Prior to December 2004, the Sec-
retary, after consultation with the Governor and the Fed-
eral agency heads, shall submit a report to Congress 
that—
(1) details the accomplishments of the Calfed 
Bay-Delta Program to date; 
(2) identifies the specific steps that remain to 
be undertaken in the Program;
(3) sets forth the specific funding levels and 
sources to accomplish such steps; and 
(4) makes such recommendations as may be 
necessary to accomplish the goals and objectives of 
the continuing Calfed Bay-Delta Program. 
SEC. 6. CROSSCUT BUDGET AND AUTHORIZATION OF AP-
PROPRIATIONS. 
(a) CROSSCUT BUDGET.—The President’s Budget 
shall include requests for the appropriate level of funding 
for each of the Federal agencies to carry out its respon-
sibilities under the Calfed Bay-Delta Program. Such funds 
shall be requested for the Federal agency with authority 
and programmatic responsibility for the obligation of such 
funds, as set forth in section 3(c)(2). At the time of sub-
mission of the President’s Budget to the Congress, the Di-
rector of the Office of Management and Budget shall sub-
mit to the appropriate authorizing and appropriating com-
mittees of the Senate and the House of Representatives 
and interagency budget crosscut report that displays the 
budget proposed, including any interagency or intra-agen-
cy transfer, for each of the Federal agencies to carry out 
the Calfed Bay-Delta Program for the upcoming fiscal 
year, separately showing funding requested under both 
pre-existing authorities and under the new authorities 
granted by this Act. The report shall also identify all ex-
penditures since 1996 within the Federal and State gov-
ernments used to achieve the objectives of the Calfed Bay-
Delta Program. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary and 
the heads of the Federal agencies $880,000,000 to pay 
the Federal share of carrying out Stage 1 of the Record 
of Decision for fiscal years 2004 through 2007, in accord-
ance with the provisions of this Act. The funds shall re-
main available without fiscal year limitation. 
SEC. 7. FEDERAL SHARE OF COSTS. 
The Federal share of the cost of implementing Stage 
1 of the Calfed Bay-Delta Program as set forth in the 
Record of Decision shall not exceed 33.3 percent, unless 
otherwise specified in this Act. 
SEC. 8. COMPLIANCE WITH STATE AND FEDERAL LAW. 
Nothing in this Act preempts or otherwise affects any 
Federal or State law, including any authority of a Federal 
agency to carry out activities related to, or in furtherance 
of, the Calfed Bay-Delta Program.
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