I
104TH CONGRESS
1ST SESSION
H. R. 2738
To make amendments to the the Central Valley Project Improvement Act
and to the Reclamation Wastewater and Groundwater Study and Facili-
ties Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 7, 1995
Mr. DOOLITTLE (for himself and Mr. HANSEN) introduced the following bill;
which was referred to the Committee on Resources
A BILL
To make amendments to the the Central Valley Project Im-
provement Act and to the Reclamation Wastewater and
Groundwater Study and Facilities Act, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—CENTRAL VALLEY
PROJECT REFORM
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Central Valley Project
Reform Act of 1995’’.
SEC. 102. PURPOSES.
Section 3402 of the Central Valley Project Improve-
ment Act (106 Stat. 4706) is amended by striking sub-
section (f) and inserting the following:
‘‘(f) to require that the Secretary operate the
Central Valley Project in a manner to achieve a rea-
sonable balance among competing demands for use
of Central Valley Project water, including the re-
quirements of fish and wildlife, agricultural, munici-
pal and industrial and power contractors; and
‘‘(g) to improve the reliability of Central Valley
Project water delivered under municipal and indus-
trial water service and repayments contracts.’’.
SEC. 103. DEFINITIONS.
(a) ANADROMOUS FISH.—Section 3403(a) of the
Central Valley Project Improvement Act (106 Stat. 4707)
is amended to read as follows:
‘‘(a) the term ‘anadromous fish’ means those
stocks of Salmon (including steelhead) that ascend
the Sacramento and San Joaquin rivers and their
tributaries and the Sacramento-San Joaquin Delta
and its tributaries to reproduce after maturing in
San Francisco Bay or the Pacific Ocean;’’.
(b) CENTRAL VALLEY PROJECT WATER.—Section
3403(f) of the Central Valley Project Improvement Act
(106 Stat. 4707) is amended to read as follows:
‘‘(f) the term ‘Central Valley Project water’ (i)
means all water that is developed, diverted, stored,
or delivered by the Secretary in accordance with the
statutes authorizing the Central Valley Project and
in accordance with the terms and conditions of water
rights permits or licenses acquired by or issued to
the United States pursuant to California law; and
(ii) to clarify the nature of Sacramento River water
rights settlement contracts and to improve the op-
portunities for the reasonable and beneficial use of
water within counties, watersheds, or other areas of
origin as defined by State law, the term ‘Central
Valley Project water’ does not include water defined
as ‘base supply’ in those certain contracts between
the United States and diverters of water from Sac-
ramento River sources providing for project water
service and agreement on diversion of water, some-
times referred to as the Sacramento River water
rights settlement contracts;’’.
(c) REPAYMENT
AND
WATER
SERVICE
CON-
TRACTS.—Section 3403(k) of the Central Valley Project
Improvement Act (106 Stat. 4707) is amended to read
as follows:
‘‘(k) the terms ‘repayment contract’ and ‘water
service contract’ have the same meaning as provided
in sections 9(d) and 9(e) of the Reclamation Project
Act of 1939 (53 Stat. 1187, 1195), as amended, but
such terms do not include those contracts which con-
tain terms or agreements for water right settle-
ments, such as those on the Sacramento River, or
water right exchanges, notwithstanding that such
contracts may also include provisions which are the
same or similar to those contained in repayment or
water service contracts;’’.
SEC. 104. LIMITATION ON CONTRACTING AND CONTRACT
REFORM.
(a) NEW
CONTRACTS.—Section 3404(a) of the
Central Valley Project Improvement Act (106 Stat. 4708)
is amended to read as follows:
‘‘(a) NEW CONTRACTS.—Except as provided in sub-
section (b) of this section, the Secretary shall not enter
into any new short-term, temporary, or long-term con-
tracts or agreements for water supply from the Central
Valley Project for any purpose other than fish and wildlife
before the Secretary has completed appropriate environ-
mental review, including the preparation of the environ-
mental impact statement required in section 3409 of this
title, and has determined that there is sufficient water to
meet the existing contractual, and legal obligations of the
Secretary relative to the Central Valley Project.’’.
(b) RENEWAL
OF
EXISTING
LONG-TERM
CON-
TRACTS.—Section 3404 of the Central Valley Project Im-
provement Act (106 Stat. 4708) is amended—
(1) by amending subsection (c) to read as fol-
lows:
‘‘(c) RENEWAL
OF EXISTING LONG-TERM CON-
TRACTS.—Notwithstanding the provisions of the Act of
July 2, 1956 (70 Stat. 483), the Secretary shall, upon
request, renew any existing long-term repayment or water
service contracts which provide for the delivery of water
from the Central Valley Project for a period of twenty-
five years and shall, subject to paragraphs (1) and (2) of
this subsection, renew such contracts for successive peri-
ods of 25 years each.
‘‘(1) No such renewals shall be authorized until
appropriate environmental review, including the
preparation of the environmental impact statement
required in section 3409 of this title, has been com-
pleted. Contracts which expire prior to the comple-
tion of the environmental impact statement required
by section 3409 shall, upon request of the other con-
tracting party, be renewed for an interim period
ending on the date on which the long-term renewal
with respect to each such contract becomes effective
or the date which is three years after completion of
the applicable environmental impact statement re-
quired by section 3409, whichever is earlier; except
that an interim contract shall automatically be ex-
tended beyond that three-year date for the period
necessary to provide the contractors with one year
for contract negotiations with the Secretary, with
such one-year period determined from the time the
draft long-term contract is formally presented to the
contractor by the Secretary. Such interim renewal
contracts shall be modified to comply with existing
law, including provisions of this title. Upon request
of the other contracting party, the Secretary shall
execute an amendment to extend the term of any in-
terim renewal contract entered into under this para-
graph before the enactment of the Central Valley
Project Reform Act of 1995 in accordance with this
title. Notwithstanding any other provision of law, all
contracts renewed by the Secretary since January 1,
1988, and before October 31, 1992, are hereby vali-
dated and ratified in all respects as of their respec-
tive dates of execution, except that all water deliv-
ered pursuant to such renewed contracts shall be
subject to payment of the charges mandated in sec-
tions 3406(c)(1)(D) and 3407(d) of this title.
‘‘(2) Upon renewal of any long-term repayment
or water service contract providing for the delivery
of water from the Central Valley Project, the Sec-
retary shall incorporate all requirements imposed by
existing law, including provisions of this title, within
such renewed contracts. The Secretary shall also ad-
minister all existing, new, and renewed contracts in
conformance with the requirements and goals of this
title.’’; and
(2) by adding at the end thereof the following
new subsection:
‘‘(d) Contracts entered into or renewed pursuant to
this section shall, upon request of the other contracting
party, include a provision which requires the Secretary to
charge such party only for water actually delivered by the
Secretary.’’.
SEC. 105. WATER TRANSFERS, IMPROVED WATER MANAGE-
MENT AND CONSERVATION.
(a) CONDITIONS FOR TRANSFERS.—The matter pre-
ceding subparagraph (A) in section 3405(a)(1) of the
Central Valley Project Improvement Act (106 Stat. 4710)
is amended to read as follows:
‘‘(1) CONDITIONS FOR TRANSFERS.—All trans-
fers of Central Valley Project water authorized by
the subsection shall be subject to review and ap-
proval by the Secretary and the contracting district
or agency under the conditions specified in this sub-
section:’’.
(b) 
TECHNICAL
AMENDMENT.—Section
3405(a)(1)(A) of the Central Valley Project Improvement
Act (106 Stat. 4710) is amended by striking ‘‘to combina-
tion’’ and inserting ‘‘or combination’’.
(c) REGULATORY
AND ENVIRONMENTAL LAWS.—
Section 3405(a)(1)(D) of the Central Valley Project Im-
provement Act (106 Stat. 4710) is amended by striking
‘‘laws, including but not limited to provisions of the Cali-
fornia Environmental Quality Act’’ and inserting ‘‘regu-
latory and environmental laws’’.
(d) APPROVAL OF TRANSFER REQUEST.—Subpara-
graphs (J), (K), (L), and (M) of section 3405(a)(1) of
the Central Valley Project Improvement Act (106 Stat.
4711) are amended to read as follows:
‘‘(J) The contracting district or agency
shall either approve the transfer request subject
to reasonable conditions or deny the transfer re-
quest subject to making findings supporting a
reasonable basis for the denial. The conditions
or findings shall only relate to the proposed
transfer’s impacts on any of the following:
‘‘(i) The quantity and quality of the
water supply available to the contracting
district or agency and its water users, in-
cluding impacts to ground water quantity
and quality in the transferor’s service area
or areas within the same groundwater
basin or areas adjacent thereto.
‘‘(ii) The contracting district or agen-
cy’s operations, including (but not limited
to) the ability of the contracting district or
agency to meet its delivery obligations, ob-
tain additional water supplies, and under-
take conservation measures, exchanges,
transfers, ground water storage, water
banking arrangements, or conjunctive use
programs.
‘‘(iii) The contracting district or agen-
cy’s financial condition and the cost of pro-
viding water service.
‘‘(iv) The appropriate maintenance of
fallowed land.
‘‘(v) Other relevant factors that may
create an adverse financial, operations or
water supply impact on the contracting
district or agency, its water users, or the
local community.
‘‘(K) The Secretary shall not alter an ap-
proval or denial by the contracting district or
agency under subparagraph (J) of this section
unless the Secretary determines, consistent with
paragraph 3405(a)(2) of this title, that such
transfer would result in a significant reduction
in the quantity or decrease in the quality of
water supplies currently used for fish and wild-
life purposes, except in the event that the Sec-
retary determines pursuant to findings setting
forth the basis for such determination that such
adverse effects would be more than offset by
the benefits of the proposed transfer. In the
event of such a determination, the Secretary
shall develop and implement alternative meas-
ures and mitigation activities as integral and
concurrent elements of any such transfer to
provide fish and wildlife benefits substantially
equivalent to those lost as a consequence of
such transfer.
‘‘(L) Transfers between Central Valley
Project contractors within counties, watersheds,
or other areas of origin, as those terms are uti-
lized under California law, shall be deemed to
meet the conditions set forth in subparagraphs
(A) and (I) of this paragraph.
‘‘(M) The transfer of ‘base supply’, as that
term is defined in Sacramento River water
rights settlement contracts, shall be subject
only to State law, and the Secretary shall have
no authority to approve, disapprove, review,
control or otherwise interfere, except as pro-
vided by State law, with any transfer of base
supply. For an individual or district which holds
any contract for Central Valley Project water,
in determining the amount under the provisions
of the Act of February 21, 1911 (36 Stat. 925;
43 U.S.C. 523–525), to be charged for the
wheeling or conveyance of base supply water
through Central Valley Project facilities, the
Secretary shall charge the contractor receiving
that water the applicable full operations and
maintenance rate or a rate that does not exceed
the lowest amount the individual or district
would pay for Central Valley Project water
through the same facilities at the same time,
whichever is greater.’’.
(e) 
APPROVAL
OF
TRANSFERS.—Section
3405(a)(2)(C) of the Central Valley Project Improvement
Act (106 Stat. 4712) is amended by striking the first sen-
tence and inserting the following: ‘‘The contracting dis-
trict or agency shall approve the transfer unless the trans-
fer is not consistent with the terms and conditions of sub-
paragraphs (A) through (F) and (I) through (K) of this
paragraph. The Secretary shall approve the transfer if the
transfer is consistent with paragraphs (H) and (L). The
contracting district’s or agency’s decision to approve or
disapprove a water transfer shall be final unless appealed
to the Secretary as provided by paragraph (4).
(f) WATER TRANSFER PROGRAMS.—Section 3405(a)
of the Central Valley Project Improvement Act (106 Stat.
4711) is amended—
(1) by redesignating paragraph (3) as para-
graph (5); and
(2) by inserting after paragraph (2) the follow-
ing new paragraphs:
‘‘(3) CONTRACTING
DISTRICT
OR
AGENCY
WATER TRANSFER PROGRAMS.—A contracting dis-
trict or agency may, and if a water user within the
district or agency formally requests approval of a
water transfer shall, adopt a water transfer program
setting forth reasonable and objective criteria and a
the case of a proposed water transfer from a
district or agency which has adopted a water
transfer 
program 
pursuant 
to 
section
3405(a)(3), not in accordance with such pro-
gram.
‘‘(C) The term ‘interested party’ as used in
this subsection shall include the parties to the
proposed water transfer, other water users
within the contracting district or agency from
which the water will be transferred, persons or
entities asserting that the transfer would impair
that person’s or entity’s water rights.
‘‘(D) Nothing in this paragraph shall limit
or otherwise affect any judicial or administra-
tive remedy otherwise available.’’.
(g) TRANSFERS AFTER SEPTEMBER 30, 1999.—Sec-
tion 3405(a)(5) of the Central Valley Project Improve-
ment Act (106 Stat. 4712), as amended by subsection (g)
of this section, is amended to read as follows:
‘‘(5) TRANSFERS AFTER SEPTEMBER 30, 1999.—
Transfers executed after September 30, 1999, shall
only be governed by the provisions of sections
3405(a)(1)(A)–(C), (E), (F), (G), (H), (I), (K), (L),
and (M) of this title, and by State law.’’.
(h) TRANSFERS, EXCHANGES, AND BANKING AR-
RANGEMENTS UNDER PRIOR LAW.—Section 3405(a) of
the Central Valley Project Improvement Act (106 Stat.
4709), as amended by subsections (g) and (h) of this sec-
tion, is amended by adding at the end the following:
‘‘(6) TRANSFERS, EXCHANGES, AND BANKING
ARRANGEMENTS UNDER PRIOR LAW.—Notwithstand-
ing any other provision of law, the authority to make
transfers, exchanges, and banking arrangements of
Central Valley Project water which could have been
conducted prior to the enactment of this title is con-
tinued hereby, and such transfers, exchanges, and
banking arrangements shall not be subject to, lim-
ited, or conditioned by this title.’’.
(i) MEASUREMENT OF WATER USE REQUIRED.—
Section 3405(b) of the Central Valley Project Improve-
ment Act (106 Stat. 4712) is amended—
(1) in the heading, by striking ‘‘METERING’’
and inserting ‘‘MEASUREMENT’’; and
(2) by inserting after the first sentence the fol-
lowing: ‘‘The contracting district or agency, not in-
cluding contracting districts serving multiple agen-
cies with separate governing boards, shall ensure
that all water delivery systems within its boundaries
measure surface water at the agency’s facilities up
to the point the surface water is commingled with
other water supplies.’’.
(j) WATER CONSERVATION STANDARDS.—Section
3405 of the Central Valley Project Improvement Act (106
Stat. 4709) is amended by striking out subsection (d), re-
designating subsections (e) and (f) as subsections (d) and
(e), and amending subsections (d) and (e) (as so redesig-
nated) to read as follows:
‘‘(d) WATER CONSERVATION STANDARDS.—(1) The
Secretary shall establish and administer an office of
Central Valley Project water conservation best manage-
ment practices that shall, in consultation with the Sec-
retary of Agriculture, the California Department of Water
Resources, California academic institutions, and Central
Valley Project water users, develop criteria for evaluating
the adequacy of all water conservation plans developed by
project contractors, including those plans required by sec-
tion 210 of the Reclamation Reform Act of 1982. In devel-
oping the criteria described in this paragraph for refuges,
in addition to consulting with the Secretary of Agriculture,
the California Department of Water Resources, California
academic institutions, and Central Valley Project water
users, the Secretary shall consult with the California De-
partment of Fish and Game.
‘‘(2) Criteria developed pursuant to this subsection
shall apply only to Central Valley Project water and shall
be established within six months following enactment of
this title and shall be reviewed periodically thereafter, but
no less than every five years, with the purpose of promot-
ing the highest level of water use efficiency reasonably
achievable by project contractors using best available cost-
effective technology and best management practices. The
criteria shall include, but not be limited to agricultural
water suppliers’ efficient water management practices de-
veloped pursuant to California State law or reasonable al-
ternatives. The conservation guidelines and criteria may
include only those management practices and conservation
measures which (A) are demonstrated by the Secretary to
achieve significant water conservation and efficient man-
agement of water resources without unreasonably burden-
ing project contractors or their water users, (B) are dem-
onstrated by the Secretary to be practices or measures
that are cost-effective and economically feasible under ap-
plicable circumstances and not prohibited by California or
local law as of January 1, 1993, and (C) take into consid-
eration the amount of water under contract to the project
contractor, probable Central Valley Project water supply,
economic resources, geography, and other factors relevant
to that project contractor.
‘‘(3) The Secretary, through the office established
under this subsection, shall review and evaluate within 18
months following enactment of this title all existing con-
servation plans submitted by project contractors to deter-
mine whether they meet the conservation and efficiency
criteria established pursuant to this subsection.
‘‘(4) The Secretary shall approve or disapprove a
water conservation plan within 90 days after such plan
is submitted under this subsection. A water conservation
plan shall be deemed to be approved if the Secretary fails
to approve or disapprove such plan within such 90-day pe-
riod.
‘‘(5) Water conserved by a project contractor or
water user pursuant to a plan approved under this sub-
section shall accrue, in a manner consistent with State
law, to the benefit of such project contractor or water
user.
‘‘(6) Compliance with conservation guidelines and cri-
teria developed pursuant to this subsection shall be
deemed compliance with section 210 of the Reclamation
Reform Act of 1982 (43 U.S.C. 390jj).
‘‘(e) INCREASED REVENUES.—All increased revenues
received by the Secretary which exceed the cost of service
rate applicable to the delivery of water transferred from
irrigation use to municipal and industrial use under sub-
section (a) shall be covered to the Restoration Fund.’’.
SEC. 106. FISH, WILDLIFE AND HABITAT RESTORATION.
(a) SATISFACTION OF PURPOSES.—Section 3406 of
the Central Valley Project Improvement Act (106 Stat.
4714) is amended by adding at the end the following new
subsection:
‘‘(i) SATISFACTION OF PURPOSES.—By pursuing the
programs and activities authorized by this section, the
Secretary shall be deemed to have met the mitigation, pro-
tection, restoration, and enhancement purposes of section
2 of the Act of August 26, 1937 (ch. 832, 50 Stat. 850),
as amended.’’.
(b) FISH
AND WILDLIFE RESTORATION ACTIVI-
TIES.—(1) The matter preceding subparagraph (A) of sec-
tion 3406(b)(1) of the Central Valley Project Improve-
ment Act (106 Stat. 4714) is amended to read as follows:
‘‘(1) assist the State of California in pursuing
its goal of doubling production of anadromous fish
in Central Valley rivers and streams in accordance
with the program specified in the report prepared by
the California Department of Fish and Game enti-
tled ‘Central Valley Salmon and Steelhead Restora-
tion and Enhancement Plan’, dated April 1990,
through the actions specified in this subsection, with
priority given to those actions specified in para-
graphs (4) through (22): Provided, That this goal
shall not apply to the San Joaquin River between
Friant Dam and the Mendota Pool, for which sepa-
rate provision has been made under section 3406(c)
of this title: Provided further, That in the course of
assisting the State of California, the Secretary shall
make all reasonable efforts consistent with the re-
quirements of this section to address other identified
adverse environmental impacts of the Central Valley
Project not specifically enumerated in this section.’’.
(2) Subparagraphs (B) and (C) of section 3406(b)(1)
of the Central Valley Project Improvement Act (106 Stat.
4714) are amended to read as follows:
‘‘(B) As needed to achieve the goals of this
program, the Secretary is authorized and di-
rected to modify Central Valley Project oper-
ations to provide reasonable flows of suitable
quality, quantity, and timing to protect all life
stages of anadromous fish, except that such
flows shall be provided from the quantity of
water reserved for fish, wildlife, and habitat
restoration purposes under paragraph (2) of
this subsection; from the water supplies ac-
quired pursuant to paragraph (3) of this sub-
section; and from other sources which do not
conflict with fulfillment of the Secretary’s re-
maining contractual obligations to provide
Central Valley Project water for other author-
ized purposes. Reasonable instream flow needs
for all Central Valley Project controlled streams
and rivers shall be determined by the Secretary
based on recommendations of the United States
Fish and Wildlife Service after consultation
with the California Department of Fish and
Game.
‘‘(C) The Secretary shall cooperate with
the State of California to ensure that, to the
greatest degree practicable, the specific quan-
tities of Central Valley Project water reserved
and managed for fish and wildlife purposes
under this title are credited against any addi-
tional obligations of the Central Valley Project
which may be imposed by the State of Califor-
nia following enactment of this title, including
but not limited to increased flow and reduced
export obligations which may be imposed by the
California State Water Resources Control
Board in implementing San Francisco Bay/Sac-
ramento-San Joaquin Delta Estuary standards
pursuant to the review ordered by the Califor-
nia Court of Appeals in United States v. State
Water Resources Control Board, 182 Cal. App.
3d 82 (1986), and that, to the greatest degree
practicable, the programs and plans required by
this title are developed and implemented in a
way that avoids inconsistent or duplicative obli-
gations from being imposed upon Central Valley
Project water and power contractors.’’.
(3) Section 3406(b)(2) of the Central Valley Project
Improvement Act (106 Stat. 4714) is amended to read
as follows:
‘‘(2) upon enactment of this title, reserve and
manage annually 800,000 acre-feet of Central Valley
Project water, excluding any Central Valley Project
water delivered under the Contract for Exchange of
Waters described in subsection (c)(1)(C) of this sec-
tion for the purposes of (A) implementing the fish,
wildlife, and habitat restoration purposes and meas-
ures authorized by this title; (B) assisting the State
of California in its efforts to protect the waters of
the San Francisco Bay/Sacramento-San Joaquin
Delta Estuary; and (C) helping to meet such obliga-
tions as may be legally imposed upon the Central
Valley Project under State or Federal law following
the date of enactment of this title, including (but
not limited to) additional obligations under the En-
dangered Species Act of 1973: Provided, That all
Central Valley Project water used to assist the State
of California in its efforts to protect the water of the
San Francisco Bay/Sacramento-San Joaquin Delta
Estuary and to help meet such obligations as may
be legally imposed upon the Central Valley Project
under State or Federal law following the date of en-
actment of this title, including (but not limited to)
additional obligations under the Endangered Species
Act of 1973, is credited to the amount of Central
Valley Project water so reserved under this para-
graph: Provided further, That the Central Valley
Project water reserved under this paragraph shall
not be used to increase the flow of water through
the San Francisco Bay/Sacramento-San Joaquin
Delta Estuary beyond that required to meet the re-
quirements of the Bay/Delta Water Quality Control
Plan, as may be amended or modified, or the En-
dangered Species Act of 1973. To the fullest extent
possible and in accordance with section 3411 of this
title, after using a quantity of such 800,000 acre-
feet of water for fish and wildlife purposes pursuant
to this paragraph, the Secretary shall reuse or divert
such quantity of water for agricultural or municipal
and industrial purposes.
‘‘(A) Such quantity of water shall be in ad-
dition to the quantities needed to implement
subsection (d)(1) of this title and in addition to
all water allocated pursuant to paragraph (23)
of this subsection for release to the Trinity
River for the purposes of fishery restoration,
propagation, and maintenance; and shall be
supplemented by all water that comes under the
Secretary’s control pursuant to subsection
(b)(3), sections 3408(h)–(i), and through other
measures consistent with paragraph (1)(B) of
this subsection.
‘‘(B) Such quantity of water shall be man-
aged pursuant to reasonable conditions speci-
fied by the United States Fish and Wildlife
Service after consultation with the Bureau of
Reclamation and the California Department of
Water Resources, and in cooperation with the
California Department of Fish and Game.
‘‘(C) The Secretary may temporarily re-
duce deliveries of the quantity of water reserved
under this paragraph up to 25 percent of such
total whenever reductions are imposed upon ag-
ricultural water service contractors: Provided,
That such reductions shall not exceed in per-
centage terms the reductions imposed on agri-
cultural water service contractors: Provided fur-
ther, That nothing in this subsection or sub-
section (d) shall require the Secretary to oper-
ate the project in a way that jeopardizes human
health or safety.
‘‘(D) If the quantity of water reserved
under this paragraph, or any portion thereof, is
not needed for the purposes of this section,
based on a finding by the Secretary, the Sec-
retary is authorized to make such water avail-
able for other project purposes.’’.
(4) Section 3406(b)(3) of the Central Valley Project
Improvement Act (106 Stat. 4716) is amended to read
as follows:
‘‘(3) develop and implement a program in co-
ordination and in conformance with the plan re-
quired under paragraph (1) of this subsection for
the acquisition of a water supply to supplement the
quantity of water reserved for fish and wildlife pur-
poses under paragraph (2) of this subsection and to
fulfill the Secretary’s obligations under subsection
(d)(2). The program should identify how the Sec-
retary intends to utilize, in particular the following
options: improvements in or modifications of the op-
erations of the project; water banking; conservation;
transfers; conjunctive use; and temporary and per-
manent land fallowing, including purchase, lease,
and option of water, water rights, and associated ag-
ricultural land. Purchases of water associated with
this program shall be from willing sellers, and shall
be Federal nonreimbursable expenditures to the ex-
tent they are not funded through the Restoration
Fund established in section 3407 of this title.’’.
(5) Section 3406(b)(8) of the Central Valley Project
Improvement Act (106 Stat. 4717) is amended by insert-
ing ‘‘as appropriate based on best available river specific
science,’’ after ‘‘(8)’’.
(6) Section 3406(b) of the Central Valley Project Im-
provement Act (106 Stat. 4714), as amended by para-
graph (8) of this subsection, is further amended by strik-
ing paragraph (18) and by redesignating paragraphs (19)
through (23) as paragraphs (18) through (22), respec-
tively.
(7) Section 3406(b)(22) of the Central Valley Project
Improvement Act (106 Stat. 4716), as amended by para-
graph (9) of this subsection, is amended to read as follows:
‘‘(22) In order to meet Federal trust respon-
sibilities to protect the fishery resources of the
Hoopa Valley Tribe, and to meet the fishery restora-
tion goals of the Act of October 24, 1984, Public
Law 98–541, provide through the Trinity River Di-
vision, for water years 1992 through 1996, an
instream release of water to the Trinity River of not
less than three hundred and forty thousand acre-feet
per year for the purposes of fishery restoration,
propagation, and maintenance; and:
‘‘(A) By September 30, 1996, the Sec-
retary, after consultation with the Hoopa Valley
Tribe, the Trinity River Restoration Program
Task Force, and its Technical Coordinating
Committee, shall complete the Trinity River
Flow Evaluation Study currently being con-
ducted by the United States Fish and Wildlife
Service under the mandate of the Secretarial
Decision of January 14, 1981, in a manner
which ensures the development of recommenda-
tions, based on the best available scientific data,
regarding permanent instream fishery flow re-
quirements and Trinity River Division operat-
ing criteria and procedures for the restoration
and maintenance of the Trinity River fishery.
‘‘(B) Not later than December 31, 1996,
the Secretary shall forward the recommenda-
tions of the Trinity River Flow Evaluation
Study, referred to in subparagraph (A) of this
paragraph, to the Committee on Energy and
Natural Resources and the Select Committee on
Indian Affairs of the Senate and the Committee
on Resources of the House of Representatives.
If the Secretary and the Hoopa Valley Tribe,
after consultation with the Trinity River Res-
toration Program Task Force and its Technical
Coordinating Committee, concur in these rec-
ommendations, any increase to the minimum
Trinity River instream fishery releases estab-
lished under this paragraph and the operating
criteria and procedures referred to in the mat-
ter preceding subparagraph (A) shall be imple-
mented in accordance with subparagraph (C). If
the Hoopa Valley Tribe and the Secretary do
not 
concur, 
the 
minimum 
Trinity 
River
instream fishery releases established under the
matter preceding subparagraph (A) shall re-
main in effect unless increased by an Act of
Congress, appropriate judicial decree, or agree-
ment among the Secretary, the Hoopa Valley
Tribe, the Trinity River Restoration Program
Task Force, and its Technical Coordinating
Committee, implemented in accordance with
subparagraph (C).
‘‘(C) The Secretary may only implement
recommendations pursuant to the study re-
ferred to in subparagraph (A) relating to
instream flows through a rulemaking process
under chapter 5 of title 5, United States Code
(relating to administrative procedure), with a
comment period of not less than 60 days and
not more than 180 days. The studies and data
on which such recommendations are based shall
be available for public review. Any such draft
rule shall be published within 180 days after
the Secretary forwards the recommendations
under subparagraph (B).
‘‘(D) Any recommendation implemented
pursuant to subparagraph (C) shall provide for
a variance in the instream flow to take into ac-
count differing hydrologic and reservoir storage
conditions.
‘‘(E) Costs associated with implementation
of this paragraph shall be reimbursable as oper-
ation and maintenance expenditures pursuant
to existing law.’’.
(8) Section 3406(c) of the Central Valley Project Im-
provement Act (106 Stat. 4721) is amended to read as
follows:
‘‘(c) SAN JOAQUIN
AND STANISLAUS RIVERS.—
(1)(A) In furtherance of the purposes of this title, the Sec-
retary shall cooperate with the State of California and
local agencies and entities that impound and/or divert
water tributary to the San Joaquin River in the develop-
ment and implementation of projects to—
‘‘(i) coordinate the flows in the Stanislaus,
Tuolumne, Merced, and San Joaquin Rivers and ex-
ports at the Tracy and Banks pumping plants to fa-
cilitate increased survival of San Joaquin River chi-
nook salmon;
‘‘(ii) develop and implement a program in the
San Joaquin River and its tributaries to identify, re-
store, and improve channel and riffle locations, to
clean spawning gravel of fine sediments, and to re-
duce sediment input from near stream and water-
shed areas due to erosion and land management
practices;
‘‘(iii)(I) establish a gene bank to ensure protec-
tion of San Joaquin River fall-run chinook salmon
genetic material in the event of catastrophic loss,
(II) selectively harvest hatchery fish to encourage in-
creases in wild stocks of San Joaquin River fall-run
chinook salmon, (III) mark all hatchery San Joaquin
River fall-run chinook salmon to allow their identi-
fication in ocean and inland fisheries, (IV) capture
and breed wild San Joaquin River fall-run chinook
salmon to enhance wild populations, and (V) estab-
lish a genetic advisory committee to provide advice
to the Secretary on the protection of San Joaquin
River fall-run chinook salmon genetic material,
which committee shall be composed of experts from
academia, fishery management agencies, and water
management agencies;
‘‘(iv) install a minimum of six telemetry devices
on the San Joaquin River and tributary channels for
the purposes of estimating the current overall water
quality conditions in the San Joaquin Basin, which
information shall be made available for water man-
agers to coordinate water management decisions;
‘‘(v) develop a plan to restore and manage the
riparian corridor of the San Joaquin River and its
tributaries, including areas on both sides of river
channels where flood frequency is sufficient to sus-
tain riparian vegetation with the goals to restore
areas where the corridor is gone and to develop ac-
tion items for riparian vegetation where the value of
fish and wildlife is reduced by land use practices,
which plan shall be consistent with restoring and
maintaining the floodway flow capacities and associ-
ated river stages for which levees and other flood
protection facilities were designed and built;
‘‘(vi) initiate a program of screening or provid-
ing other fish protective measures at water diver-
sions in the San Joaquin River, its tributaries and
estuary, which program will locate, inventory,
prioritize and select candidate sites and include in-
stallation and long-term maintenance as necessary;
‘‘(vii) increase fall flows and install physical
and/or mechanical solutions as appropriate in the
Stanislaus, Tuolumne, and Merced rivers to attract
and provide access to adult San Joaquin River chi-
nook salmon and maintain suitable water tempera-
tures for spawning: Provided, That any increase in
flows shall be implemented only through purchase of
water from willing sellers, water augmentation
projects, and/or additional storage to increase export
flexibility or other similar voluntary means: Provided
further, That flow increases shall be integrated with
physical and mechanical solutions which can lead to
improved guidance flows and water quality in the
lower San Joaquin River, such as a barrier at the
head of Old River and/or an aeration device at
Rough and Ready Island;
‘‘(viii) evaluate methods to protect San Joaquin
River chinook salmon stocks in the ocean and estua-
rine fisheries, mark all hatchery-produced San Joa-
quin River chinook salmon, evaluate San Joaquin
River chinook salmon ‘shaker’ mortality, and coordi-
nate additional salmon management practices which
will contribute to increasing salmon reproduction
and survivability;
‘‘(ix) undertake measures to reduce salmon
predator populations in the San Joaquin River, its
tributaries, and other areas such as Clifton Court
Forebay, including (but not limited to) encouraging
predator harvest, voluntary increases in flows during
spring outmigration, reducing water temperatures in
summer, increasing turbidity during outmigration,
removing predator concentrating features, and modi-
fying channels to isolate predator habitat; and
‘‘(x) provide for the annual installation during
October to December of a barrier to divert returning
adult San Joaquin River chinook salmon from the
San Joaquin River into the Merced River, including
acquisition of a site at the confluence of the San
Joaquin River and the Merced River for barrier in-
stallation and operation;
‘‘(xi) provide resources to the San Joaquin
River Conservancy to assist in its overall efforts, in-
cluding, but not limited to, land acquisition, natural
resource surveys, and environmental studies that
may be necessary for successful implementation of
the San Joaquin River Parkway; and
‘‘(xii) provide one-third matching funds for the
annual operating budget for the hatchery at the
Tuolumne River Salmon Restoration Center.
‘‘(B) Funding for the projects described in subpara-
graph (A) shall be provided under sections 3407(b) and
3407(e). Funds provided pursuant to such sections may
not be used for any action to address fish, wildlife and
habitat concerns on the San Joaquin River downstream
from Friant Dam, including (but not limited to) stream
flow, channel, riparian habitat, and water quality improve-
ments, until the Secretary determines that such action is
reasonable, prudent and feasible. Any such action shall be
subject to subparagraph (C).
‘‘(C) The Congress hereby confirms that it is and has
been its intent to prohibit all releases of water directly
from Friant Dam into the San Joaquin River other than
for bona fide purposes of (i) flood control, (ii) satisfying
the requirements of that certain Contract for Exchange
of Waters dated July 27, 1939, between the United States
of America, the San Joaquin & Kings River Canal & Irri-
gation Company, Incorporated, the Columbia Canal Com-
pany, the San Luis Canal Company and the Firebaugh
Canal Company, as amended from time to time, or (iii)
satisfying those contractual obligations of the Secretary
which existed on the date of enactment of this title to pro-
vide water to landowners located between Friant Dam and
Gravelly Ford. Therefore, notwithstanding any State or
other Federal law, water shall not be released directly
from Friant Dam into the San Joaquin River except for
the purposes enumerated in clauses (i), (ii), and (iii) of
the preceding sentence.
‘‘(D) In lieu of releasing water directly from Friant
Dam into the San Joaquin River for any purposes of this
title, entities receiving Central Valley Project water from
the Friant Division of the Central Valley Project shall be
assessed, in addition to all other applicable charges, a sur-
charge for all Class 1 and Class 2 water delivered in an
amount that will result in collection, during each fiscal
year, of $6,000,000. Such surcharge shall be in the
amount of $4.00 per acre-foot and shall not apply to Class
2 water delivered in excess of 50 percent of the amount
of Class 2 water to which a contracting party is contrac-
tually entitled.
‘‘(E) Except as expressly provided in subparagraphs
(C) and (D), nothing contained in those subparagraphs
shall otherwise alter the applicability or inapplicability of
State or other Federal law to entities receiving Central
Valley Project water from the Friant Division of the
Central Valley Project.
‘‘(2) The Secretary shall, by not later than September
30, 1996, in the course of preparing the Stanislaus River
Basin and Calaveras River Water Use Program Environ-
mental Impact Statement and in consultation with the
State of California, affected counties, and other interests,
evaluate and determine existing and anticipated future
basin needs in the Stanislaus River Basin. In the course
of such evaluation, the Secretary shall investigate alter-
native storage, release, and delivery regimes, including but
not limited to conjunctive use operations, conservation
strategies, exchange arrangements, and the use of base
and channel maintenance flows, in order to best satisfy
both basin and out-of-basin needs consistent, on a continu-
ing basis, with the limitations and priorities established
in the Act of October 23, 1962 (76 Stat. 173). For the
purposes of this subparagraph, ‘basin needs’ shall include
water supply for agricultural, municipal and industrial
uses, and maintenance and enhancement of water quality,
and fish and wildlife resources within the Stanislaus River
Basin as established by the Secretary’s June 29, 1981
Record of Decision; and ‘out-of-basin’ needs shall include
all such needs outside of the Stanislaus River Basin, in-
cluding those of the San Francisco Bay/Sacramento-San
Joaquin Delta Estuary and those of the San Joaquin
River under paragraph (1) of this subsection.’’.
(9) Section 3406(d) of the Central Valley Project Im-
provement Act (106 Stat. 4722) is amended to read as
follows:
‘‘(d) CENTRAL VALLEY REFUGES
AND WILDLIFE
HABITAT AREAS.—(1) In support of the objectives of the
Central Valley Habitat Joint Venture and in furtherance
of the purposes of this title, the Secretary shall provide,
either directly or through contractual agreements with
other appropriate parties, firm water supplies of suitable
quality to maintain and improve wetland habitat areas on
units of the National Wildlife Refuge System in the
Central Valley of California; on the Gray Lodge, Los
Banos, Volta, North Grasslands, and Mendota state wild-
life management areas; and on the Grasslands Resources
Conservation District in the Central Valley of California.
‘‘(2) Upon enactment of this title and subject to para-
graph (8) of this subsection, the quantity and delivery
schedules of water measured at the boundaries of each
wetland habitat area described in this paragraph shall be
in accordance with level 2 of the ‘Dependable Water Sup-
ply Needs’ table for those habitat areas as set forth in
the Refuge Water Supply Report and two-thirds of the
water supply needed for full habitat development for those
habitat areas identified in the San Joaquin Basin Action
Plan/Kesterson Mitigation Action Plan Report prepared
by the Bureau of Reclamation. Such water shall be pro-
vided through long-term contractual agreements with ap-
propriate parties and shall be supplemented by the incre-
ment of water provided for in paragraph (3) of this sub-
section: Provided, That the Secretary shall be obligated
to provide such water whether or not such long-term con-
tractual agreements are in effect. In implementing this
paragraph, the Secretary shall endeavor to diversify
sources of supply in order to minimize possible adverse
effects upon Central Valley Project contractors.
‘‘(3) Not later than ten years after enactment of this
title and subject to paragraph (8) of this subsection, the
quantity and delivery schedules of water measured at the
boundaries of each wetland habitat area described in this
paragraph shall be in accordance with level 4 of the ‘De-
pendable Water Supply Needs’ table for those habitat
areas as set forth in the Refuge Water Supply Report and
the full water supply needed for full habitat development
for those habitat areas identified in the San Joaquin
Basin Action Plan/Kesterson Mitigation Action Plan Re-
port prepared by the Bureau of Reclamation. The quan-
tities of water required to supplement the quantities pro-
vided under paragraph (2) of this subsection shall be ac-
quired by the Secretary in cooperation with the State of
California and in consultation with the Central Valley
Habitat Joint Venture and other interests in cumulating
increments of not less than ten percent per annum
through voluntary measures which include water conserva-
tion, conjunctive use, purchase, lease, donations, or similar
activities, or a combination of such activities which do not
require involuntary reallocations of project yield.
‘‘(4) All costs associated with implementation of
paragraph (2) of this subsection shall be deemed a
nonreimbursable Federal expenditure. Incremental costs
associated with implementation of paragraph (3) of this
subsection shall be fully allocated in accordance with the
following formula: 75 percent shall be deemed a
nonreimbursable Federal expenditure; and 25 percent
shall be allocated to the State of California for recovery
through direct reimbursements or through equivalent in-
kind contributions.
‘‘(5) The Secretary shall temporarily reduce deliveries
of the quantity of water dedicated under paragraph (2)
of this subsection up to 25 percent of such total whenever
reductions are imposed upon agricultural water service
contractors served from the same Division of the Central
Valley Project: Provided, That such reductions shall not
exceed in percentage terms the reductions imposed on ag-
ricultural water service contractors. For the purpose of
shortage allocation, the priority or priorities applicable to
the increment of water provided under paragraph (3) of
this subsection shall be the priority or priorities which ap-
plied to the water in question prior to its transfer to the
purpose of providing such increment.
‘‘(6) In order to implement the requirements of this
subsection and in order to minimize possible adverse im-
pacts upon Central Valley Project water contractors, the
Secretary is authorized and directed to construct or to ac-
quire from non-Federal entities through purchase, lease,
or short-term or long-term operating agreement such
water conveyance facilities, conveyance capacity, pumping
capacity, and wells, within one year after enactment of
this paragraph: Provided, That such actions are approved
by the non-Federal facilities’ owners, and operators. To
carry out this obligation, and without limiting other ac-
tions, the Secretary shall, in cooperation with the State
of California and Central Valley Project water contractors,
implement those immediate actions necessary to facilitate
the acquisition of pumping and conveyance capacity from
the State. Additional water that can be delivered as a re-
sult of the acquisition of such additional pumping and con-
veyance capacity shall be allocated in a manner which
avoids water shortages to Central Valley Project water
contractors and users.
‘‘(7) The Secretary, in consultation with the State of
California, the Central Valley Habitat Joint Venture, and
other interests, shall investigate and report on the follow-
ing supplemental actions by not later than September 30,
1997—
‘‘(A) alternative means of improving the reli-
ability and quality of water supplies currently avail-
able to privately owned wetlands in the Central Val-
ley and the need, if any, for additional supplies; and
‘‘(B) water supply and delivery requirements
necessary to permit full habitat development for
water dependent wildlife on one hundred and twenty
thousand acres supplemental to the existing wetland
habitat acreage identified in Table 8 of the Central
Valley Habitat Joint Venture’s ‘Implementation
Plan’ dated April 19, 1990, as well as feasible
means of meeting associated water supply require-
ments.
‘‘(8) Not later than 180 days after the date of the
enactment of the Central Valley Project Reform Act of
1995, the Secretary shall prepare a report in which the
Secretary assesses whether the Dependable Water Supply
Needs outlined in the Refuge Water Supply Report and
the San Joaquin Basin Action Plan/Kesterson Mitigation
Action Plan Report prepared by the Bureau of Reclama-
tion accurately reflect reasonable dependable water supply
needs for refuges, taking into account changes in habitat
conditions and any other relevant factors. If the Secretary
determines that the Dependable Water Supply Needs in
such Reports do not reflect the reasonable dependable
water supply needs for refuges, the Reports shall be re-
vised to reflect appropriate adjustments in the Dependable
Water Supply Needs tables, and deliveries and increments
described in paragraphs (2) and (3) of this subsection
shall be adjusted accordingly to match the quantities spec-
ified in the revised Reports. The report shall be prepared
with public involvement, including water contractors and
users.
‘‘(9) Not later than one year after the date of the
enactment of this paragraph, the Secretary shall—
‘‘(A) using water measuring devices or other
water measuring methods, determine the quantity of
all water provided by the Secretary to areas referred
to in paragraph (1) of this subsection;
‘‘(B) require that such areas be managed in ac-
cordance with water conservation plans which incor-
porate water conservation best management prac-
tices developed under section 3405(d) of this title;
and
‘‘(C) if the Dependable Water Supply Needs
levels specified in paragraphs (2) and (3) of this
subsection do not correspond with the demonstrated
need following implementation of best management
practices under this paragraph, the levels shall be
adjusted accordingly to match the level of such dem-
onstrated need.’’.
(10) Section 3406(f) of the Central Valley Project
Improvement Act (106 Stat. 4724) is amended by striking
‘‘Committees on Insular and Interior Affairs and Mer-
chant Marine and Fisheries’’ and inserting ‘‘Committee on
Resources’’.
(11) Section 3406 of the Central Valley Project Im-
provement Act (106 Stat. 4714), as amended by sub-
section (a) of this section, is further amended by adding
at the end the following new subsection:
‘‘(j) PURCHASE OF ADDITIONAL WATER.—The Sec-
retary may acquire any water needed to carry out this title
which is in addition to the water required to be made
available under subsections (b)(2), (b)(22), and (d) only
by purchase in accordance with State law. Such purchases
shall be Federal nonreimbursable expenditures to the ex-
tent they are not funded through the Restoration Fund
established in section 3407 of this title.’’.
SEC. 107. RESTORATION FUND.
(a) RESTORATION FUND ESTABLISHED.—Section
3407(a) of the Central Valley Project Improvement Act
(106 Stat. 4726) is amended to read as follows:
‘‘(a) RESTORATION FUND ESTABLISHED.—
‘‘(1) There is hereby established in the Treas-
ury of the United States the ‘Central Valley Project
Restoration Fund’ (hereafter ‘Restoration Fund’)
which shall be available for deposit of donations
from any source and revenues provided under sec-
tions 3405(e), 3406(c)(1)(D), and 3407(d) of this
title. Amounts deposited shall be credited as offset-
ting collections. Monies donated to the Restoration
Fund by non-Federal entities for specific purposes
shall be expended for those purposes only and shall
not be subject to appropriation. Notwithstanding
any other provision of this title, the Secretary may