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† HR 146 EAS 
termination in subparagraph (A) prior to under-
taking any substantial construction work to in-
crease capacity in reach 4B. 
(3) COSTS.—If the Secretary’s estimated Federal 
cost for expanding reach 4B in paragraph (2), in 
light of the Secretary’s funding plan set out in that 
paragraph, would exceed the remaining Federal fund-
ing authorized by this part (including all funds re-
allocated, all funds dedicated, and all new funds au-
thorized by this part and separate from all commit-
ments of State and other non-Federal funds and in- 
kind commitments), then before the Secretary com-
mences actual construction work in reach 4B (other 
than planning, design, feasibility, or other prelimi-
nary measures) to expand capacity to 4500 cubic feet 
per second to implement this Settlement, Congress 
must have increased the applicable authorization ceil-
ing provided by this part in an amount at least suffi-
cient to cover the higher estimated Federal costs. 
SEC. 10010. REPAYMENT CONTRACTS AND ACCELERATION 
OF REPAYMENT OF CONSTRUCTION COSTS. 
(a) CONVERSION OF CONTRACTS.— 
(1) The Secretary is authorized and directed to 
convert, prior to December 31, 2010, all existing long- 
term contracts with the following Friant Division,
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Hidden Unit, and Buchanan Unit contractors, en-
tered under subsection (e) of section 9 of the Act of 
August 4, 1939 (53 Stat. 1196), to contracts under 
subsection (d) of section 9 of said Act (53 Stat. 1195), 
under mutually agreeable terms and conditions: 
Arvin-Edison 
Water 
Storage 
District; 
Delano- 
Earlimart Irrigation District; Exeter Irrigation Dis-
trict; Fresno Irrigation District; Ivanhoe Irrigation 
District; Lindmore Irrigation District; Lindsay- 
Strathmore Irrigation District; Lower Tule River Ir-
rigation District; Orange Cove Irrigation District; 
Porterville Irrigation District; Saucelito Irrigation 
District; Shafter-Wasco Irrigation District; Southern 
San Joaquin Municipal Utility District; Stone Cor-
ral Irrigation District; Tea Pot Dome Water District; 
Terra Bella Irrigation District; Tulare Irrigation 
District; Madera Irrigation District; and Chowchilla 
Water District. Upon request of the contractor, the 
Secretary is authorized to convert, prior to December 
31, 2010, other existing long-term contracts with 
Friant Division contractors entered under subsection 
(e) of section 9 of the Act of August 4, 1939 (53 Stat. 
1196), to contracts under subsection (d) of section 9 
of said Act (53 Stat. 1195), under mutually agreeable 
terms and conditions.
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(2) Upon request of the contractor, the Secretary 
is further authorized to convert, prior to December 31, 
2010, any existing Friant Division long-term con-
tract entered under subsection (c)(2) of section 9 of 
the Act of August 4, 1939 (53 Stat. 1194), to a con-
tract under subsection (c)(1) of section 9 of said Act, 
under mutually agreeable terms and conditions. 
(3) All such contracts entered into pursuant to 
paragraph (1) shall— 
(A) require the repayment, either in lump 
sum or by accelerated prepayment, of the re-
maining amount of construction costs identified 
in the Central Valley Project Schedule of Irriga-
tion Capital Rates by Contractor 2007 Irriga-
tion Water Rates, dated January 25, 2007, as 
adjusted to reflect payments not reflected in such 
schedule, and properly assignable for ultimate 
return by the contractor, no later than January 
31, 2011, or if made in approximately equal an-
nual installments, no later than January 31, 
2014; such amount to be discounted by 1⁄2 the 
Treasury Rate. An estimate of the remaining 
amount of construction costs as of January 31, 
2011, as adjusted, shall be provided by the Sec-
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† HR 146 EAS 
retary to each contractor no later than June 30, 
2010; 
(B) require that, notwithstanding subsection 
(c)(2), construction costs or other capitalized 
costs incurred after the effective date of the con-
tract or not reflected in the schedule referenced in 
subparagraph (A), and properly assignable to 
such contractor, shall be repaid in not more than 
5 years after notification of the allocation if such 
amount is a result of a collective annual alloca-
tion of capital costs to the contractors exercising 
contract conversions under this subsection of less 
than $5,000,000. If such amount is $5,000,000 
or greater, such cost shall be repaid as provided 
by applicable Reclamation law, provided that 
the reference to the amount of $5,000,000 shall 
not be a precedent in any other context; 
(C) provide that power revenues will not be 
available to aid in repayment of construction 
costs allocated to irrigation under the contract; 
and 
(D) conform to the Settlement and this part 
and shall continue so long as the contractor pays 
applicable charges, consistent with subsection 
(c)(2) and applicable law.
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† HR 146 EAS 
(4) All such contracts entered into pursuant to 
paragraph (2) shall— 
(A) require the repayment in lump sum of 
the remaining amount of construction costs iden-
tified in the most current version of the Central 
Valley Project Schedule of Municipal and Indus-
trial Water Rates, as adjusted to reflect pay-
ments not reflected in such schedule, and prop-
erly assignable for ultimate return by the con-
tractor, no later than January 31, 2014. An esti-
mate of the remaining amount of construction 
costs as of January 31, 2014, as adjusted, shall 
be provided by the Secretary to each contractor 
no later than June 30, 2013; 
(B) require that, notwithstanding subsection 
(c)(2), construction costs or other capitalized 
costs incurred after the effective date of the con-
tract or not reflected in the schedule referenced in 
subparagraph (A), and properly assignable to 
such contractor, shall be repaid in not more than 
5 years after notification of the allocation if such 
amount is a result of a collective annual alloca-
tion of capital costs to the contractors exercising 
contract conversions under this subsection of less 
than $5,000,000. If such amount is $5,000,000
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† HR 146 EAS 
or greater, such cost shall be repaid as provided 
by applicable Reclamation law, provided that 
the reference to the amount of $5,000,000 shall 
not be a precedent in any other context; and 
(C) conform to the Settlement and this part 
and shall continue so long as the contractor pays 
applicable charges, consistent with subsection 
(c)(2) and applicable law. 
(b) FINAL ADJUSTMENT.—The amounts paid pursuant 
to subsection (a) shall be subject to adjustment following 
a final cost allocation by the Secretary upon completion 
of the construction of the Central Valley Project. In the 
event that the final cost allocation indicates that the costs 
properly assignable to the contractor are greater than what 
has been paid by the contractor, the contractor shall be obli-
gated to pay the remaining allocated costs. The term of such 
additional repayment contract shall be no less than 1 year 
and no more than 10 years, however, mutually agreeable 
provisions regarding the rate of repayment of such amount 
may be developed by the parties. In the event that the final 
cost allocation indicates that the costs properly assignable 
to the contractor are less than what the contractor has paid, 
the Secretary is authorized and directed to credit such over-
payment as an offset against any outstanding or future ob-
ligation of the contractor.
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(c) APPLICABILITY OF CERTAIN PROVISIONS.— 
(1) Notwithstanding any repayment obligation 
under subsection (a)(3)(B) or subsection (b), upon a 
contractor’s compliance with and discharge of the ob-
ligation of repayment of the construction costs as pro-
vided in subsection (a)(3)(A), the provisions of section 
213(a) and (b) of the Reclamation Reform Act of 
1982 (96 Stat. 1269) shall apply to lands in such dis-
trict. 
(2) Notwithstanding any repayment obligation 
under paragraph (3)(B) or (4)(B) of subsection (a), 
or subsection (b), upon a contractor’s compliance with 
and discharge of the obligation of repayment of the 
construction costs as provided in paragraphs (3)(A) 
and (4)(A) of subsection (a), the Secretary shall waive 
the pricing provisions of section 3405(d) of the Rec-
lamation Projects Authorization and Adjustment Act 
of 1992 (Public Law 102–575) for such contractor, 
provided that such contractor shall continue to pay 
applicable operation and maintenance costs and other 
charges applicable to such repayment contracts pursu-
ant to the then-current rate-setting policy and appli-
cable law. 
(3) Provisions of the Settlement applying to 
Friant Division, Hidden Unit, and Buchanan Unit
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† HR 146 EAS 
long-term water service contracts shall also apply to 
contracts executed pursuant to this section. 
(d) REDUCTION OF CHARGE FOR THOSE CONTRACTS 
CONVERTED PURSUANT TO SUBSECTION (A)(1).— 
(1) At the time all payments by the contractor 
required by subsection (a)(3)(A) have been completed, 
the Secretary shall reduce the charge mandated in sec-
tion 10007(1) of this part, from 2020 through 2039, 
to offset the financing costs as defined in section 
10010(d)(3). The reduction shall be calculated at the 
time all payments by the contractor required by sub-
section (a)(3)(A) have been completed. The calculation 
shall remain fixed from 2020 through 2039 and shall 
be based upon anticipated average annual water de-
liveries, as mutually agreed upon by the Secretary 
and the contractor, for the period from 2020 through 
2039, and the amounts of such reductions shall be dis-
counted using the Treasury Rate; provided, that such 
charge shall not be reduced to less than $4.00 per acre 
foot of project water delivered; provided further, that 
such reduction shall be implemented annually unless 
the Secretary determines, based on the availability of 
other monies, that the charges mandated in section 
10007(1) are otherwise needed to cover ongoing fed-
eral costs of the Settlement, including any federal op-
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† HR 146 EAS 
eration and maintenance costs of facilities that the 
Secretary determines are needed to implement the 
Settlement. If the Secretary determines that such 
charges are necessary to cover such ongoing federal 
costs, the Secretary shall, instead of making the re-
duction in such charges, reduce the contractor’s oper-
ation and maintenance obligation by an equivalent 
amount, and such amount shall not be recovered by 
the United States from any Central Valley Project 
contractor, provided nothing herein shall affect the ob-
ligation of the contractor to make payments pursuant 
to a transfer agreement with a non-federal operating 
entity. 
(2) If the calculated reduction in paragraph (1), 
taking into consideration the minimum amount re-
quired, does not result in the contractor offsetting its 
financing costs, the Secretary is authorized and di-
rected to reduce, after October 1, 2019, any out-
standing or future obligations of the contractor to the 
Bureau of Reclamation, other than the charge assessed 
and collected under section 3407(d) of Public law 
102–575, by the amount of such deficiency, with such 
amount indexed to 2020 using the Treasury Rate and 
such amount shall not be recovered by the United 
States from any Central Valley Project contractor,
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† HR 146 EAS 
provided nothing herein shall affect the obligation of 
the contractor to make payments pursuant to a trans-
fer agreement with a non-Federal operating entity. 
(3) Financing costs, for the purposes of this sub-
section, shall be computed as the difference of the net 
present value of the construction cost identified in 
subsection (a)(3)(A) using the full Treasury Rate as 
compared to using one half of the Treasury Rate and 
applying those rates against a calculated average an-
nual capital repayment through 2030. 
(4) Effective in 2040, the charge shall revert to 
the amount called for in section 10007(1) of this part. 
(5) For purposes of this section, ‘‘Treasury Rate’’ 
shall be defined as the 20 year Constant Maturity 
Treasury (CMT) rate published by the United States 
Department of the Treasury as of October 1, 2010. 
(e) SATISFACTION OF CERTAIN PROVISIONS.— 
(1) IN GENERAL.—Upon the first release of In-
terim Flows or Restoration Flows, pursuant to para-
graphs 13 or 15 of the Settlement, any short- or long- 
term agreement, to which 1 or more long-term Friant 
Division, Hidden Unit, or Buchanan Unit contractor 
that converts its contract pursuant to subsection (a) 
is a party, providing for the transfer or exchange of 
water not released as Interim Flows or Restoration
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† HR 146 EAS 
Flows shall be deemed to satisfy the provisions of sub-
section 3405(a)(1)(A) and (I) of the Reclamation 
Projects Authorization and Adjustment Act of 1992 
(Public Law 102–575) without the further concur-
rence of the Secretary as to compliance with said sub-
sections if the contractor provides, not later than 90 
days before commencement of any such transfer or ex-
change for a period in excess of 1 year, and not later 
than 30 days before commencement of any proposed 
transfer or exchange with duration of less than 1 
year, written notice to the Secretary stating how the 
proposed transfer or exchange is intended to reduce, 
avoid, or mitigate impacts to water deliveries caused 
by the Interim Flows or Restoration Flows or is in-
tended to otherwise facilitate the Water Management 
Goal, as described in the Settlement. The Secretary 
shall promptly make such notice publicly available. 
(2) DETERMINATION OF REDUCTIONS TO WATER 
DELIVERIES.—Water transferred or exchanged under 
an agreement that meets the terms of this subsection 
shall not be counted as a replacement or an offset for 
purposes of determining reductions to water deliveries 
to any Friant Division long-term contractor except as 
provided in paragraph 16(b) of the Settlement. The 
Secretary shall, at least annually, make publicly
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† HR 146 EAS 
available a compilation of the number of transfer or 
exchange agreements exercising the provisions of this 
subsection to reduce, avoid, or mitigate impacts to 
water deliveries caused by the Interim Flows or Res-
toration Flows or to facilitate the Water Management 
Goal, as well as the volume of water transferred or ex-
changed under such agreements. 
(3) STATE LAW.—Nothing in this subsection al-
ters State law or permit conditions, including any 
applicable geographical restrictions on the place of 
use of water transferred or exchanged pursuant to this 
subsection. 
(f) CERTAIN
REPAYMENT
OBLIGATIONS
NOT
AL-
TERED.—Implementation of the provisions of this section 
shall not alter the repayment obligation of any other long- 
term water service or repayment contractor receiving water 
from the Central Valley Project, or shift any costs that 
would otherwise have been properly assignable to the Friant 
contractors absent this section, including operations and 
maintenance costs, construction costs, or other capitalized 
costs incurred after the date of enactment of this Act, to 
other such contractors. 
(g) STATUTORY INTERPRETATION.—Nothing in this 
part shall be construed to affect the right of any Friant 
Division, Hidden Unit, or Buchanan Unit long-term con-
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† HR 146 EAS 
tractor to use a particular type of financing to make the 
payments required in paragraph (3)(A) or (4)(A) of sub-
section (a). 
SEC. 10011. CALIFORNIA CENTRAL VALLEY SPRING RUN 
CHINOOK SALMON. 
(a) FINDING.—Congress finds that the implementation 
of the Settlement to resolve 18 years of contentious litigation 
regarding restoration of the San Joaquin River and the re-
introduction of the California Central Valley Spring Run 
Chinook salmon is a unique and unprecedented cir-
cumstance that requires clear expressions of Congressional 
intent regarding how the provisions of the Endangered Spe-
cies Act of 1973 (16 U.S.C. 1531 et seq.) are utilized to 
achieve the goals of restoration of the San Joaquin River 
and the successful reintroduction of California Central Val-
ley Spring Run Chinook salmon. 
(b) REINTRODUCTION IN THE SAN JOAQUIN RIVER.— 
California Central Valley Spring Run Chinook salmon 
shall be reintroduced in the San Joaquin River below 
Friant Dam pursuant to section 10(j) of the Endangered 
Species Act of 1973 (16 U.S.C. 1539(j)) and the Settlement, 
provided that the Secretary of Commerce finds that a per-
mit for the reintroduction of California Central Valley 
Spring Run Chinook salmon may be issued pursuant to sec-
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† HR 146 EAS 
tion 10(a)(1)(A) of the Endangered Species Act of 1973 (16 
U.S.C. 1539(a)(1)(A)). 
(c) FINAL RULE.— 
(1) DEFINITION OF THIRD PARTY.—For the pur-
pose of this subsection, the term ‘‘third party’’ means 
persons or entities diverting or receiving water pursu-
ant to applicable State and Federal laws and shall 
include Central Valley Project contractors outside of 
the Friant Division of the Central Valley Project and 
the State Water Project. 
(2) ISSUANCE.—The Secretary of Commerce shall 
issue a final rule pursuant to section 4(d) of the En-
dangered Species Act of 1973 (16 U.S.C. 1533(d)) 
governing the incidental take of reintroduced Cali-
fornia Central Valley Spring Run Chinook salmon 
prior to the reintroduction. 
(3) REQUIRED
COMPONENTS.—The rule issued 
under paragraph (2) shall provide that the reintro-
duction will not impose more than de minimus: water 
supply reductions, additional storage releases, or by-
pass flows on unwilling third parties due to such re-
introduction. 
(4) APPLICABLE LAW.—Nothing in this section— 
(A) diminishes the statutory or regulatory 
protections provided in the Endangered Species
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† HR 146 EAS 
Act of 1973 for any species listed pursuant to 
section 4 of the Endangered Species Act of 1973 
(16 U.S.C. 1533) other than the reintroduced 
population of California Central Valley Spring 
Run Chinook salmon, including protections pur-
suant to existing biological opinions or new bio-
logical opinions issued by the Secretary or Sec-
retary of Commerce; or 
(B) precludes the Secretary or Secretary of 
Commerce from imposing protections under the 
Endangered Species Act of 1973 (16 U.S.C. 1531 
et seq.) for other species listed pursuant to sec-
tion 4 of that Act (16 U.S.C. 1533) because those 
protections provide incidental benefits to such re-
introduced California Central Valley Spring 
Run Chinook salmon. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than December 31, 
2024, the Secretary of Commerce shall report to Con-
gress on the progress made on the reintroduction set 
forth in this section and the Secretary’s plans for fu-
ture implementation of this section. 
(2) INCLUSIONS.—The report under paragraph 
(1) shall include—
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† HR 146 EAS 
(A) an assessment of the major challenges, if 
any, to successful reintroduction; 
(B) an evaluation of the effect, if any, of the 
reintroduction on the existing population of 
California Central Valley Spring Run Chinook 
salmon existing on the Sacramento River or its 
tributaries; and 
(C) an assessment regarding the future of 
the reintroduction. 
(e) FERC PROJECTS.— 
(1) IN
GENERAL.—With regard to California 
Central Valley Spring Run Chinook salmon reintro-
duced pursuant to the Settlement, the Secretary of 
Commerce shall exercise its authority under section 
18 of the Federal Power Act (16 U.S.C. 811) by re-
serving its right to file prescriptions in proceedings 
for projects licensed by the Federal Energy Regulatory 
Commission on the Calaveras, Stanislaus, Tuolumne, 
Merced, and San Joaquin rivers and otherwise con-
sistent with subsection (c) until after the expiration 
of the term of the Settlement, December 31, 2025, or 
the expiration of the designation made pursuant to 
subsection (b), whichever ends first. 
(2) EFFECT OF SUBSECTION.—Nothing in this 
subsection shall preclude the Secretary of Commerce
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† HR 146 EAS 
from imposing prescriptions pursuant to section 18 of 
the Federal Power Act (16 U.S.C. 811) solely for other 
anadromous fish species because those prescriptions 
provide incidental benefits to such reintroduced Cali-
fornia Central Valley Spring Run Chinook salmon. 
(f) EFFECT OF SECTION.—Nothing in this section is 
intended or shall be construed— 
(1) to modify the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.) or the Federal Power 
Act (16 U.S.C. 791a et seq.); or 
(2) to establish a precedent with respect to any 
other application of the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.) or the Federal Power 
Act (16 U.S.C. 791a et seq.). 
PART II—STUDY TO DEVELOP WATER PLAN; 
REPORT 
SEC. 10101. STUDY TO DEVELOP WATER PLAN; REPORT. 
(a) PLAN.— 
(1) GRANT.—To the extent that funds are made 
available in advance for this purpose, the Secretary 
of the Interior, acting through the Bureau of Rec-
lamation, shall provide direct financial assistance to 
the California Water Institute, located at California 
State University, Fresno, California, to conduct a 
study regarding the coordination and integration of
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† HR 146 EAS 
sub-regional integrated regional water management 
plans into a unified Integrated Regional Water Man-
agement Plan for the subject counties in the hydro-
logic basins that would address issues related to— 
(A) water quality; 
(B) water supply (both surface, ground 
water banking, and brackish water desalination); 
(C) water conveyance; 
(D) water reliability; 
(E) water conservation and efficient use (by 
distribution systems and by end users); 
(F) flood control; 
(G) water resource-related environmental 
enhancement; and 
(H) population growth. 
(2) STUDY AREA.—The study area referred to in 
paragraph (1) is the proposed study area of the San 
Joaquin River Hydrologic Region and Tulare Lake 
Hydrologic Region, as defined by California Depart-
ment of Water Resources Bulletin 160–05, volume 3, 
chapters 7 and 8, including Kern, Tulare, Kings, 
Fresno, Madera, Merced, Stanislaus, and San Joa-
quin counties in California. 
(b) USE OF PLAN.—The Integrated Regional Water 
Management Plan developed for the 2 hydrologic basins
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† HR 146 EAS 
under subsection (a) shall serve as a guide for the counties 
in the study area described in subsection (a)(2) to use as 
a mechanism to address and solve long-term water needs 
in a sustainable and equitable manner. 
(c) REPORT.—The Secretary shall ensure that a report 
containing the results of the Integrated Regional Water 
Management Plan for the hydrologic regions is submitted 
to the Committee on Energy and Natural Resources of the 
Senate and the Committee on Natural Resources of the 
House of Representatives not later than 24 months after fi-
nancial assistance is made available to the California 
Water Institute under subsection (a)(1). 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section 
$1,000,000 to remain available until expended. 
PART III—FRIANT DIVISION IMPROVEMENTS 
SEC. 10201. FEDERAL FACILITY IMPROVEMENTS. 
(a) The Secretary of the Interior (hereafter referred to 
as the ‘‘Secretary’’) is authorized and directed to conduct 
feasibility studies in coordination with appropriate Fed-
eral, State, regional, and local authorities on the following 
improvements and facilities in the Friant Division, Central 
Valley Project, California: 
(1) Restoration of the capacity of the Friant- 
Kern Canal and Madera Canal to such capacity as
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† HR 146 EAS 
previously designed and constructed by the Bureau of 
Reclamation. 
(2) Reverse flow pump-back facilities on the 
Friant-Kern Canal, with reverse-flow capacity of ap-
proximately 500 cubic feet per second at the Poso and 
Shafter Check Structures and approximately 300 
cubic feet per second at the Woollomes Check Struc-
ture. 
(b) Upon completion of and consistent with the appli-
cable feasibility studies, the Secretary is authorized to con-
struct the improvements and facilities identified in sub-
section (a) in accordance with all applicable Federal and 
State laws. 
(c) The costs of implementing this section shall be in 
accordance with section 10203, and shall be a nonreimburs-
able Federal expenditure. 
SEC. 10202. FINANCIAL ASSISTANCE FOR LOCAL PROJECTS. 
(a) AUTHORIZATION.—The Secretary is authorized to 
provide financial assistance to local agencies within the 
Central Valley Project, California, for the planning, design, 
environmental compliance, and construction of local facili-
ties to bank water underground or to recharge groundwater, 
and that recover such water, provided that the project meets 
the criteria in subsection (b). The Secretary is further au-
thorized to require that any such local agency receiving fi-
979 
† HR 146 EAS 
nancial assistance under the terms of this section submit 
progress reports and accountings to the Secretary, as the 
Secretary deems appropriate, which such reports shall be 
publicly available. 
(b) CRITERIA.— 
(1) A project shall be eligible for Federal finan-
cial assistance under subsection (a) only if all or a 
portion of the project is designed to reduce, avoid, or 
offset the quantity of the expected water supply im-
pacts to Friant Division long-term contractors caused 
by the Interim or Restoration Flows authorized in 
part I of this subtitle, and such quantities have not 
already been reduced, avoided, or offset by other pro-
grams or projects. 
(2) Federal financial assistance shall only apply 
to the portion of a project that the local agency des-
ignates as reducing, avoiding, or offsetting the ex-
pected water supply impacts caused by the Interim or 
Restoration Flows authorized in part I of this sub-
title, consistent with the methodology developed pursu-
ant to paragraph (3)(C). 
(3) No Federal financial assistance shall be pro-
vided by the Secretary under this part for construc-
tion of a project under subsection (a) unless the Sec-
retary—
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† HR 146 EAS 
(A) determines that appropriate planning, 
design, and environmental compliance activities 
associated with such a project have been com-
pleted, and that the Secretary has been offered 
the opportunity to participate in the project at 
a price that is no higher than the local agency’s 
own costs, in order to secure necessary storage, 
extraction, and conveyance rights for water that 
may be needed to meet the Restoration Goal as 
described in part I of this subtitle, where such 
project has capacity beyond that designated for 
the purposes in paragraph (2) or where it is fea-
sible to expand such project to allow participa-
tion by the Secretary; 
(B) determines, based on information avail-
able at the time, that the local agency has the fi-
nancial capability and willingness to fund its 
share of the project’s construction and all oper-
ation and maintenance costs on an annual basis; 
(C) determines that a method acceptable to 
the Secretary has been developed for quantifying 
the benefit, in terms of reduction, avoidance, or 
offset of the water supply impacts expected to be 
caused by the Interim or Restoration Flows au-
thorized in part I of this subtitle, that will result
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† HR 146 EAS 
from the project, and for ensuring appropriate 
adjustment in the recovered water account pur-
suant to section 10004(a)(5); and 
(D) has entered into a cost-sharing agree-
ment with the local agency which commits the 
local agency to funding its share of the project’s 
construction costs on an annual basis. 
(c) GUIDELINES.—Within 1 year from the date of en-
actment of this part, the Secretary shall develop, in con-
sultation with the Friant Division long-term contractors, 
proposed guidelines for the application of the criteria de-
fined in subsection (b), and will make the proposed guide-
lines available for public comment. Such guidelines may 
consider prioritizing the distribution of available funds to 
projects that provide the broadest benefit within the affected 
area and the equitable allocation of funds. Upon adoption 
of such guidelines, the Secretary shall implement such as-
sistance program, subject to the availability of funds appro-
priated for such purpose. 
(d) COST SHARING.—The Federal financial assistance 
provided to local agencies under subsection (a) shall not ex-
ceed— 
(1) 50 percent of the costs associated with plan-
ning, design, and environmental compliance activities 
associated with such a project; and
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† HR 146 EAS 
(2) 50 percent of the costs associated with con-
struction of any such project. 
(e) PROJECT OWNERSHIP.— 
(1) Title to, control over, and operation of, 
projects funded under subsection (a) shall remain in 
one or more non-Federal local agencies. Nothing in 
this part authorizes the Secretary to operate a 
groundwater bank along or adjacent to the San Joa-
quin River upstream of the confluence with the 
Merced River, and any such groundwater bank shall 
be operated by a non-Federal entity. All projects 
funded pursuant to this subsection shall comply with 
all applicable Federal and State laws, including pro-
visions of California water law. 
(2) All operation, maintenance, and replacement 
and rehabilitation costs of such projects shall be the 
responsibility of the local agency. The Secretary shall 
not provide funding for any operation, maintenance, 
or replacement and rehabilitation costs of projects 
funded under subsection (a). 
SEC. 10203. AUTHORIZATION OF APPROPRIATIONS. 
(a) The Secretary is authorized and directed to use 
monies from the fund established under section 10009 to 
carry out the provisions of section 10201(a)(1), in an 
amount not to exceed $35,000,000.
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† HR 146 EAS 
(b) In addition to the funds made available pursuant 
to subsection (a), the Secretary is also authorized to expend 
such additional funds from the fund established under sec-
tion 10009 to carry out the purposes of section 10201(a)(2), 
if such facilities have not already been authorized and fund-
ed under the plan provided for pursuant to section 
10004(a)(4), in an amount not to exceed $17,000,000, pro-
vided that the Secretary first determines that such expendi-
ture will not conflict with or delay his implementation of 
actions required by part I of this subtitle. Notice of the Sec-
retary’s determination shall be published not later than his 
submission of the report to Congress required by section 
10009(f)(2). 
(c) In addition to funds made available in subsections 
(a) and (b), there are authorized to be appropriated 
$50,000,000 (October 2008 price levels) to carry out the 
purposes of this part which shall be non-reimbursable. 
Subtitle B—Northwestern New 
Mexico Rural Water Projects 
SEC. 10301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Northwestern New 
Mexico Rural Water Projects Act’’. 
SEC. 10302. DEFINITIONS. 
In this subtitle:
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(A) is located within the Navajo Reserva-
tion or the State of New Mexico; 
(B) is held in trust by the United States; 
and 
(C) was originally granted to an individual 
member of the Nation by public land order or 
otherwise. 
(6) ANIMAS-LA
PLATA
PROJECT.—The term 
‘‘Animas-La Plata Project’’ has the meaning given 
the term in section 3 of Public Law 100–585 (102 
Stat. 2973), including Ridges Basin Dam, Lake 
Nighthorse, the Navajo Nation Municipal Pipeline, 
and any other features or modifications made pursu-
ant to the Colorado Ute Settlement Act Amendments 
of 2000 (Public Law 106–554; 114 Stat. 2763A–258). 
(7) CITY.—The term ‘‘City’’ means the city of 
Gallup, New Mexico, or a designee of the City, with 
authority to provide water to the Gallup, New Mexico 
service area. 
(8) COLORADO RIVER COMPACT.—The term ‘‘Col-
orado River Compact’’ means the Colorado River 
Compact of 1922 as approved by Congress in the Act 
of December 21, 1928 (45 Stat. 1057) and by the 
Presidential Proclamation of June 25, 1929 (46 Stat. 
3000).
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(9) COLORADO RIVER SYSTEM.—The term ‘‘Colo-
rado River System’’ has the same meaning given the 
term in Article II(a) of the Colorado River Compact. 
(10) COMPACT.—The term ‘‘Compact’’ means the 
Upper Colorado River Basin Compact as consented to 
by the Act of April 6, 1949 (63 Stat. 31, chapter 48). 
(11) CONTRACT.—The term ‘‘Contract’’ means 
the contract between the United States and the Nation 
setting forth certain commitments, rights, and obliga-
tions of the United States and the Nation, as de-
scribed in paragraph 6.0 of the Agreement. 
(12) DEPLETION.—The term ‘‘depletion’’ means 
the depletion of the flow of the San Juan River 
stream system in the State of New Mexico by a par-
ticular use of water (including any depletion incident 
to the use) and represents the diversion from the 
stream system by the use, less return flows to the 
stream system from the use. 
(13) DRAFT
IMPACT
STATEMENT.—The term 
‘‘Draft Impact Statement’’ means the draft environ-
mental impact statement prepared by the Bureau of 
Reclamation for the Project dated March 2007. 
(14) FUND.—The term ‘‘Fund’’ means the Rec-
lamation Waters Settlements Fund established by sec-
tion 10501(a).
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(15) HYDROLOGIC
DETERMINATION.—The term 
‘‘hydrologic determination’’ means the hydrologic de-
termination entitled ‘‘Water Availability from Navajo 
Reservoir and the Upper Colorado River Basin for 
Use in New Mexico,’’ prepared by the Bureau of Rec-
lamation pursuant to section 11 of the Act of June 
13, 1962 (Public Law 87–483; 76 Stat. 99), and 
dated May 23, 2007. 
(16) LOWER BASIN.—The term ‘‘Lower Basin’’ 
has the same meaning given the term in Article II(g) 
of the Colorado River Compact. 
(17) NATION.—The term ‘‘Nation’’ means the 
Navajo Nation, a body politic and federally-recog-
nized Indian nation as provided for in section 101(2) 
of the Federally Recognized Indian Tribe List of 1994 
(25 U.S.C. 497a(2)), also known variously as the 
‘‘Navajo Tribe,’’ the ‘‘Navajo Tribe of Arizona, New 
Mexico & Utah,’’ and the ‘‘Navajo Tribe of Indians’’ 
and other similar names, and includes all bands of 
Navajo Indians and chapters of the Navajo Nation. 
(18) NAVAJO-GALLUP WATER SUPPLY PROJECT; 
PROJECT.—The term ‘‘Navajo-Gallup Water Supply 
Project’’ or ‘‘Project’’ means the Navajo-Gallup Water 
Supply Project authorized under section 10602(a), as
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described as the preferred alternative in the Draft Im-
pact Statement. 
(19) NAVAJO INDIAN IRRIGATION PROJECT.—The 
term ‘‘Navajo Indian Irrigation Project’’ means the 
Navajo Indian irrigation project authorized by sec-
tion 2 of Public Law 87–483 (76 Stat. 96). 
(20) NAVAJO
RESERVOIR.—The term ‘‘Navajo 
Reservoir’’ means the reservoir created by the im-
poundment of the San Juan River at Navajo Dam, 
as authorized by the Act of April 11, 1956 (commonly 
known as the ‘‘Colorado River Storage Project Act’’) 
(43 U.S.C. 620 et seq.). 
(21) NAVAJO NATION MUNICIPAL PIPELINE; PIPE-
LINE.—The term ‘‘Navajo Nation Municipal Pipe-
line’’ or ‘‘Pipeline’’ means the pipeline used to convey 
the water of the Animas-La Plata Project of the Nav-
ajo Nation from the City of Farmington, New Mexico, 
to communities of the Navajo Nation located in close 
proximity to the San Juan River Valley in the State 
of New Mexico (including the City of Shiprock), as 
authorized by section 15(b) of the Colorado Ute In-
dian Water Rights Settlement Act of 1988 (Public 
Law 100–585; 102 Stat. 2973; 114 Stat. 2763A–263). 
(22) NON-NAVAJO IRRIGATION DISTRICTS.—The 
term ‘‘Non-Navajo Irrigation Districts’’ means—
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(A) the Hammond Conservancy District; 
(B) the Bloomfield Irrigation District; and 
(C) any other community ditch organiza-
tion in the San Juan River basin in the State 
of New Mexico. 
(23) PARTIAL FINAL DECREE.—The term ‘‘Par-
tial Final Decree’’ means a final and binding judg-
ment and decree entered by a court in the stream ad-
judication, setting forth the rights of the Nation to use 
and administer waters of the San Juan River Basin 
in New Mexico, as set forth in Appendix 1 of the 
Agreement. 
(24) 
PROJECT
PARTICIPANTS.—The 
term 
‘‘Project Participants’’ means the City, the Nation, 
and the Jicarilla Apache Nation. 
(25) SAN JUAN RIVER BASIN RECOVERY IMPLE-
MENTATION PROGRAM.—The term ‘‘San Juan River 
Basin Recovery Implementation Program’’ means the 
intergovernmental program established pursuant to 
the cooperative agreement dated October 21, 1992 (in-
cluding any amendments to the program). 
(26) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, acting through the Com-
missioner of Reclamation or any other designee.
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(27) STREAM ADJUDICATION.—The term ‘‘stream 
adjudication’’ means the general stream adjudication 
that is the subject of New Mexico v. United States, et 
al., No. 75–185 (11th Jud. Dist., San Juan County, 
New Mexico) (involving claims to waters of the San 
Juan River and the tributaries of that river). 
(28) SUPPLEMENTAL PARTIAL FINAL DECREE.— 
The term ‘‘Supplemental Partial Final Decree’’ 
means a final and binding judgment and decree en-
tered by a court in the stream adjudication, setting 
forth certain water rights of the Nation, as set forth 
in Appendix 2 of the Agreement. 
(29) TRUST
FUND.—The term ‘‘Trust Fund’’ 
means the Navajo Nation Water Resources Develop-
ment Trust Fund established by section 10702(a). 
(30) UPPER BASIN.—The term ‘‘Upper Basin’’ 
has the same meaning given the term in Article II(f) 
of the Colorado River Compact. 
SEC. 10303. COMPLIANCE WITH ENVIRONMENTAL LAWS. 
(a) EFFECT
OF EXECUTION
OF AGREEMENT.—The 
execution of the Agreement under section 10701(a)(2) shall 
not constitute a major Federal action under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
(b) COMPLIANCE WITH ENVIRONMENTAL LAWS.—In 
carrying out this subtitle, the Secretary shall comply with