SEC. 103. CRITERIA FOR GRANTS. 
In making grants pursuant to this title, the Sec-
retary, acting through the Coordinator shall give priority 
to those projects which meet at least one of the following 
criteria: 
(1) The requirements of the Secretary, as appli-
cable, and any applicable State requirements. 
(2) Is agreed to by the Federal and non-Fed-
eral entities with authority and responsibility for the 
project. 
(3) Increase water supply yield. 
(4) Improve water use efficiency and water con-
servation. 
(5) Reduce or stabilize demand on existing Fed-
eral and State water supply facilities. 
(6) Improve water quality. 
(7) Employ innovative approaches, including 
but not limited to, ground water recharge. 
(8) Facilitate the transfer and adoption of tech-
nology. 
(9) Employ regional solutions that increase the 
availability of locally and regionally developed water 
supplies. 
(10) Remediate a contaminated ground water 
basin.
(11) Provide a secure source of new water sup-
plies for national defense activities. 
(12) Reduce the threat of a water supply dis-
ruption as a result of a natural disaster or acts of 
terrorism. 
(13) Help Water Resource Agencies meet exist-
ing legal requirements, contractual water supply ob-
ligations, Indian trust responsibilities, water rights 
settlements, water quality control plans and depart-
ment of health requirements, Federal and State en-
vironmental laws, the Federal Water Pollution Con-
trol Act, or other obligations. 
(14) Promote and applies a regional or water-
shed approach to water resource management or 
cross-boundary issues, implements an integrated re-
sources management approach, increases water man-
agement flexibility, or forms a partnership with 
other entities. 
(15) Improve health and safety of the general 
public. 
(16) Provide benefits outside the region in 
which the project occurs. 
(17) Provide benefits to the agricultural com-
munity.
SEC. 104. ANNUAL REPORT. 
The Secretary shall provide the Congress an annual 
report that includes the following: 
(1) A list of projects, and project details, 
amount of past, current, and projected funding. 
(2) Documentation of the accounts within the 
Water Resource Agencies funding. 
(3) The benefits gained by projects, and to 
which beneficiaries and users, funded under this 
title. 
(4) An assessment of how the project met each 
of the evaluation criteria under this title. 
SEC. 105. AUTHORIZATION OF APPROPRIATIONS. 
(a) ACTIVITIES
AND
PROJECTS
UNDER
THIS 
TITLE.—
(1) DETERMINATION
OF
WATER
RESOURCES 
AGENCY PARTICIPATION.—If existing authorities are 
not available to carry out activities addressed under 
this title, the Coordinator, in consultation with the 
Water Resource agencies, shall make the determina-
tion of Federal participation and Federal agency 
cost share. 
(2) FUNDING.—Subject to section 105(a)(1) 
and section 105(b), there are authorized to be ap-
propriated—
(A) $50,000,000 for fiscal year 2004; and
(B) $100,000,000 for each fiscal year 
thereafter. 
(b) LIMITATIONS ON GRANTS.—
(1) LOCATION
OF
PROJECT.—Grants carried 
out by the Secretary, through the Coordinator, may 
be carried out through the 50 States. 
(2) PER STATE LIMIT.—Except as provided in 
under this section, of the amount available in a fis-
cal year for grants under this title, not more than 
30 percent may be used for projects in a single 
State. 
(c) COST SHARING.—Except as provided under this 
section, and notwithstanding any other provision of this 
title. Grants for projects receiving Federal assistance 
under this title shall not exceed the lesser of $50,000,000 
(indexed annually for inflation) or 35 percent of the total 
cost of the project. 
SEC. 106. LIMITATION ON ELIGIBILITY FOR FUNDING. 
A project that receives funds under this Act shall be 
ineligible to receive Federal funds from any other source 
for the same purpose unless such funds are provided to 
ensure compliance with a Federal mandate.
TITLE 
II—CALIFORNIA 
WATER 
SECURITY 
AND 
ENVIRON-
MENTAL ENHANCEMENT ACT
SEC. 201. CALFED BAY-DELTA PROGRAM. 
(a) FINDINGS.—Congress finds as follows: 
(1) The mission of the CALFED Bay-Delta 
Program is to develop and implement a long-term 
comprehensive plan that will increase water supply 
and yield, improve water management, and restore 
the ecological health of the Bay-Delta solution area. 
(2) The CALFED Bay-Delta Program was de-
veloped as a joint Federal-State program to deal ef-
fectively with the multijurisdictional issues involved 
in managing the Bay-Delta Watershed. 
(b) IN GENERAL.—
(1) AUTHORIZATION.—The Federal agencies, in 
consultation with State agencies, are authorized to 
participate in the CALFED Bay-Delta Program, in 
accordance with this title, and consistent with the 
Objectives and Solution Principles set forth in the 
Record of Decision. 
(2) GOALS.—The goals of the CALFED Bay-
Delta Program shall consist of components that in-
clude water supply and yield, ecosystem restoration, 
water supply reliability, conveyance, water use effi-
ciency, water quality, water transfers, watersheds, 
Environmental Water Account, levee stability, and 
science. 
(3) BALANCE.—CALFED Bay-Delta Program 
activities consisting of protecting water quality, in-
cluding but not limited to, drinking water quality, 
restoring ecological health, improving water supply 
reliability, including additional water supply and 
water yield and conveyance, and protecting levees in 
the Bay-Delta watershed, shall progress in a bal-
anced manner. 
(c) ADMINISTRATION OF ACTIVITIES.—
(1) IN GENERAL.—The Secretary and the heads 
of the Federal agencies are authorized to carry out 
the activities described in this title, subject to the 
cost-share and other provisions of this title, if the 
activity—
(A) has been subject to environmental re-
view and approval as required under applicable 
Federal and State law; and 
(B) has been approved and certified by the 
Secretary to be consistent with the Objectives 
and Solution Principles of the CALFED Bay-
Delta Program as stated in Record of Decision.