ployment rate in the Central Valley, double the 
statewide unemployment rate of 5.7 percent, as of 
December 15, 2015; 
(9) thousands of families have been affected, 
placing ever greater demands on food banks and 
other relief organizations, and as of December 21, 
2015— 
(A) the California Department of Social 
Services Drought Food Assistance Program has 
provided more than 1,000,000 boxes to food 
banks in affected communities with high levels 
of unemployment; and 
(B) nearly 72 percent of the food distribu-
tions have occurred in the Tulare Basin coun-
ties of Fresno, Kern, Kings, and Tulare; 
(10) 2015 statewide economic costs are esti-
mated at $2,700,000,00, including but not limited 
to— 
(A) the loss of $900,000,000 in crop rev-
enue; 
(B) the loss of $350,000,000 in dairy and 
other livestock value; and 
(C) an increase of $590,000,000 in ground 
water pumping costs; 
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(11) 1,032,508 acres in California’s Central 
Valley were fallowed in 2015, a 626,512 acre in-
crease from 2011; 
(12) the drought is imperiling California’s for-
ests, which provide important ecological, economic, 
and cultural benefits to the State, and among the ef-
fects of the drought— 
(A) loss of 50,000,000 large trees due to 
stress from lack of water; 
(B) 
888,000,000 
trees, 
covering 
26,000,000 acres of California forestland, expe-
rienced losses of canopy cover since 2011, 
threatening ecosystem destruction and loss of 
animal habitat; and 
(C) 6,337 fires covering 307,598 acres oc-
curred in 2015; 
(13) fish continue to be threatened by the ex-
tended drought, compounding effects on two endan-
gered species, further reducing river flows and in-
creasing water temperatures— 
(A) Delta smelt abundance are at a his-
toric low, as evidenced by long-term monitoring 
surveys; and 
(B) the abundance of the last remaining 
population of wild Sacramento River winter run 
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Chinook salmon continue to decline, with mor-
tality rates between 95 percent and 97 percent 
over the past 2 years, according to the National 
Oceanic and Atmospheric Administration; 
(14) wildlife has also been affected, with Level 
2 water deliveries to wildlife refuges under the Cen-
tral Valley Project Improvement Act reduced by 25 
percent in the north-of-Delta region and 35 percent 
in the south-of-Delta region, and delivery schedules 
shortened to only the winter months, and— 
(A) these reduced water supplies have con-
tributed to a decline of the Pacific Flyway, a 
migratory route for waterfowl that spans from 
Alaska to South America; 
(B) the reduction in water supplies has led 
to a significant decline in flooded rice fields, a 
vital habitat for migratory birds. Only one-third 
of the usual acres of rice fields were flooded in 
2015; and 
(C) the reduction of available habitat for 
migratory waterfowl contributed to a decreased 
food availability in wildlife refuges and an in-
creased risk of disease due to overcrowding of 
birds; 
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(15) subsidence in California is occurring at 
more than 12 inches per year, caused in part by an 
increase in ground water pumping of more than 
6,000,000 acre feet, some areas in the Central Val-
ley have sunk as much as 2 inches per month, and 
the damage from subsidence is wide-ranging— 
(A) roads, bridges, building foundations, 
pipelines, canals, dams, and other infrastruc-
ture have been damaged; 
(B) vital aquifers have been depleted; 
(C) vital levees have sustained cracks and 
ruptures; and 
(D) shallow aquifers have become vulner-
able to contamination as surface water infil-
trates through fissures in the soil; 
(16) the California Department of Water Re-
sources identified 21 ground water basins where ex-
cessive ground water pumping has resulted in over-
draft, 11 of which are in the San Joaquin Valley; 
(17) California homes, cities, wildlife, busi-
nesses, and farming need more water than is avail-
able today, particularly in the San Joaquin Valley; 
(18) Congress recognizes that providing more 
water to those who need it most will require science- 
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based management of water supplies and fish and 
wildlife resources, including— 
(A) alternative management strategies, 
such as removing nonnative species, enhancing 
habitat, monitoring fish movement and location 
in real-time, and improving water quality in the 
Delta, which could contribute significantly to 
protecting and recovering those endangered fish 
species, and at potentially lower costs to water 
supplies than solely focusing on restrictions on 
water exports; and 
(B) updated science and improved moni-
toring tools that provide Federal and State 
agencies with better information about condi-
tions and operations that may or may not lead 
to high salvage events that jeopardize fish pop-
ulations; and 
(19) given the dire effects outlined above and 
the potential for continued harm, this emergency re-
quires— 
(A) immediate and credible action that 
takes into account the complexity and impor-
tance of the water system to the State; and 
(B) policies that do not position stake-
holders against one another, which in the past 
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has led to costly litigation that benefits no one 
and prevents any real solutions. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) ASSISTANT
ADMINISTRATOR.—The term 
‘‘Assistant Administrator’’ means the Assistant Ad-
ministrator for Fisheries of the National Oceanic 
and Atmospheric Administration. 
(2) CENTRAL
VALLEY
PROJECT.—The term 
‘‘Central Valley Project’’ has the meaning given the 
term in section 3403 of the Central Valley Project 
Improvement Act (Public Law 102–575; 106 Stat. 
4707). 
(3) 
COMMISSIONER.—The 
term 
‘‘Commis-
sioner’’ means the Commissioner of Reclamation. 
(4) DELTA.—The term ‘‘Delta’’ means the Sac-
ramento-San Joaquin Delta and the Suisun Marsh 
(as defined in section 12220 of the California Water 
Code and section 29101 of the California Public Re-
sources Code (as in effect on the date of enactment 
of this Act)). 
(5) DELTA SMELT.—The term ‘‘Delta smelt’’ 
means the fish species with the scientific name 
Hypomesus transpacificus. 
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(6) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the United States Fish and Wildlife 
Service. 
(7) LISTED FISH SPECIES.—The term ‘‘listed 
fish species’’ means— 
(A) any natural origin steelhead, natural 
origin genetic spring run Chinook, or genetic 
winter run Chinook salmon (including any 
hatchery steelhead or salmon population within 
the evolutionary significant unit or a distinct 
population segment); and 
(B) Delta smelt. 
(8) OMR.—The term ‘‘OMR’’ means the Old 
and Middle River in the Delta. 
(9) OMR 
FLOW.—The term ‘‘OMR flow’’ 
means Old and Middle River flow of any given meas-
urement, expressed in cubic feet per second, as de-
scribed in— 
(A) the smelt biological opinion; and 
(B) the salmonid biological opinion. 
(10) RECLAMATION
STATE.—The term ‘‘Rec-
lamation State’’ means any of the States of— 
(A) Arizona; 
(B) California; 
(C) Colorado; 
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(D) Idaho; 
(E) Kansas; 
(F) Montana; 
(G) Nebraska; 
(H) Nevada; 
(I) New Mexico; 
(J) North Dakota; 
(K) Oklahoma; 
(L) Oregon; 
(M) South Dakota; 
(N) Texas; 
(O) Utah; 
(P) Washington; and 
(Q) Wyoming. 
(11) SALMONID BIOLOGICAL OPINION.— 
(A) IN GENERAL.—The term ‘‘salmonid bi-
ological opinion’’ means the biological and con-
ference opinion of the National Marine Fish-
eries Service dated June 4, 2009, regarding the 
long-term operation of the Central Valley 
Project and the State Water Project, and suc-
cessor biological opinions. 
(B) INCLUSIONS.—The term ‘‘salmonid bi-
ological opinion’’ includes the operative inci-
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dental take statement of the opinion described 
in subparagraph (A). 
(12) SMELT BIOLOGICAL OPINION.— 
(A) IN GENERAL.—The term ‘‘smelt bio-
logical opinion’’ means the biological opinion 
dated December 15, 2008, regarding the coordi-
nated operation of the Central Valley Project 
and the State Water Project, and successor bio-
logical opinions. 
(B) INCLUSIONS.—The term ‘‘smelt bio-
logical opinion’’ includes the operative inci-
dental take statement of the opinion described 
in subparagraph (A). 
(13) STATE
WATER
PROJECT.—The term 
‘‘State Water Project’’ means the water project de-
scribed in chapter 5 of part 3 of division 6 of the 
California Water Code (section 11550 et seq.) (as in 
effect on the date of enactment of this Act) and op-
erated by the California Department of Water Re-
sources. 
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TITLE I—LONG-TERM IMPROVE-
MENTS 
FOR 
WESTERN 
STATES 
SUBJECT 
TO 
DROUGHT 
Subtitle A—Assistance for Drought- 
Stricken Communities 
SEC. 101. ASSISTANCE FOR DROUGHT-STRICKEN COMMU-
NITIES AND WATERSMART REAUTHORIZA-
TION. 
(a) FINDINGS.—Congress finds that— 
(1) across the United States, more than 90 per-
cent of the community water systems serve popu-
lations of less than 10,000 individuals; 
(2) the number of dry wells continues to in-
crease as the State of California entered the fourth 
consecutive summer of drought, with approximately 
2,591 wells statewide identified as critical or dry, 
which affected an estimated 12,955 residents, with 
2,444 of the 2,502 of the dry wells concentrated in 
the inland regions within the Central Valley; 
(3) many areas of the State of California are 
disproportionately impacted by drought because the 
areas are heavily dependent or completely reliant on 
ground water from basins that are in overdraft and 
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in which the water table declines year after year or 
from basins that are contaminated; and 
(4) those communities throughout the State of 
California have been impacted by the presence of 
naturally occurring arsenic in the ground water 
among other contaminants, as a result of higher 
concentration of contaminants in the water. 
(b) AMENDMENT.—Section 9504 of the Omnibus 
Public Land Management Act of 2009 (42 U.S.C. 10364) 
is amended— 
(1) by redesignating subsections (b) through (e) 
as subsections (d) through (f), respectively; 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) WATER
STORAGE, INTEGRATED
REGIONAL 
WATER MANAGEMENT, RECLAMATION, AND RECYCLING 
PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary of the Inte-
rior is authorized to enter into cost-shared financial 
assistance and other long-term agreements with non- 
Federal participants to advance the planning, de-
sign, and construction of non-Federal permanent 
water storage and conveyance facilities, projects for 
the reclamation and reuse of municipal, industrial, 
domestic and agricultural wastewater, and naturally 
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impaired ground and surface waters, ground water 
recharge, and other water management improvement 
projects for which the Secretary of the Interior is 
authorized under this subtitle to assist an applicant 
in the planning, design, and construction. 
‘‘(2) AUTHORITY TO PROVIDE ASSISTANCE.— 
The Secretary of the Interior may provide financial 
assistance under this subtitle to carry out projects 
within— 
‘‘(A) any Reclamation State, including— 
‘‘(i) Arizona; 
‘‘(ii) California; 
‘‘(iii) Colorado; 
‘‘(iv) Idaho; 
‘‘(v) Kansas; 
‘‘(vi) Montana; 
‘‘(vii) Nebraska; 
‘‘(viii) Nevada; 
‘‘(ix) New Mexico; 
‘‘(x) North Dakota; 
‘‘(xi) Oklahoma; 
‘‘(xii) Oregon; 
‘‘(xiii) South Dakota; 
‘‘(xiv) Texas; 
‘‘(xv) Utah; 
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‘‘(xvi) Washington; and 
‘‘(xvii) Wyoming; and 
‘‘(B) the States of Alaska and Hawaii. 
‘‘(3) PRIORITY.—In providing financial assist-
ance under this section, the Secretary of the Interior 
shall give priority to storage, conveyance, and water 
management improvement projects that— 
‘‘(A) ensure the efficient and beneficial use 
of water or reuse of recycled water; 
‘‘(B) use integrated and coordinated water 
management on a watershed or regional scale; 
‘‘(C) increase the availability of usable 
water supplies in a watershed or region to ben-
efit individuals, the economy, and the environ-
ment and include adaptive measures needed to 
address climate change and future demands; 
‘‘(D) where practicable, provide flood con-
trol or recreation benefits and include the devel-
opment of incremental hydroelectric power gen-
eration; and 
‘‘(E) generate environmental benefits, such 
as benefits to fisheries, wildlife and habitat, 
water quality, water-dependent ecological sys-
tems, and water supply benefits to agricultural 
and urban water users. 
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‘‘(4) FEDERAL
COST
SHARE.—The Federal 
share of the cost of a project under this subsection 
shall be— 
‘‘(A) an amount equal to the lesser of— 
‘‘(i) 25 percent of total costs; and 
‘‘(ii) $20,000,000 (adjusted for infla-
tion); and 
‘‘(B) nonreimbursable. 
‘‘(5) IN-KIND CONTRIBUTIONS.—The non-Fed-
eral share of the cost of a project under this sub-
section may include in-kind contributions to the 
planning, design, and construction of the project. 
‘‘(6) TITLE; OPERATION
AND
MAINTENANCE 
COSTS.—The non-Federal entity entering into a fi-
nancial assistance agreement under this subsection 
shall— 
‘‘(A) hold title in and to all facilities con-
structed under this subsection, and 
‘‘(B) be solely responsible for the costs of 
operating and maintaining those facilities.’’; 
and 
(3) in subsection (f) (as redesignated by para-
graph (1)), by striking ‘‘$350,000,000’’ and insert-
ing ‘‘$500,000,000’’. 
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(c) AMENDMENT.—Section 9508 of the Omnibus 
Public Land Management Act of 2009 (42 U.S.C. 10368) 
is amended— 
(1) by redesignating subsections (b) through (e) 
as subsections (c) through (f), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) ADDITIONAL ASSISTANCE FOR COMMUNITIES 
WITHOUT ACCESS TO ADEQUATE WATER.— 
‘‘(1) IN
GENERAL.—To assist disadvantaged 
communities that have experienced a significant de-
cline in quantity or quality of drinking water, and to 
obtain or maintain adequate quantities of water that 
meet the standards set by the Federal Water Pollu-
tion Control Act (33 U.S.C. 1251 et seq.), the Sec-
retary of the Interior is authorized to provide grants 
for communities— 
‘‘(A) that are unable to meet the primary 
water quality standards under that Act; or 
‘‘(B) the local private or public water sup-
ply of which has been lost or severely dimin-
ished due to drought conditions. 
‘‘(2) ELIGIBLE COMMUNITIES.—To be eligible 
to receive a grant under this subsection, a commu-
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nity shall carry out a project described in paragraph 
(3), the service area of which— 
‘‘(A) shall not be located in any city or 
town with a population of more than 60,000 
residents; and 
‘‘(B) has a median household income of 
less than 100 percent of the nonmetropolitan 
median household income of the State. 
‘‘(3) ELIGIBLE PROJECTS.—Projects eligible for 
this program may be used for— 
‘‘(A) emergency water supplies; 
‘‘(B) point of use treatment and point of 
entry systems; 
‘‘(C) distributed treatment facilities; 
‘‘(D) construction of new water source fa-
cilities including wells and connections to exist-
ing systems; 
‘‘(E) water distribution facilities; 
‘‘(F) connection fees to existing systems; 
‘‘(G) assistance to households to connect to 
water facilities; and 
‘‘(H) any combination of activities de-
scribed in subparagraphs (A) through (G). 
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‘‘(4) PRIORITIZATION.—In determining prior-
ities for funding projects, the Secretary of the Inte-
rior shall take into consideration— 
‘‘(A) where water outages— 
‘‘(i) are most serious; and 
‘‘(ii) pose the greatest threat to public 
health and safety; and 
‘‘(B) whether the applicant has the ability 
to qualify for alternative funding sources. 
‘‘(5) MAXIMUM
AMOUNT.—The amount of a 
grant provided under this section may be made up 
to 100 percent of costs, including— 
‘‘(A) initial operation costs incurred for 
start-up and testing of project facilities; 
‘‘(B) components to ensure such facilities 
and components are properly operational; and 
‘‘(C) costs of operation or maintenance in-
curred subsequent to placing the facilities or 
components into service.’’. 
SEC. 102. UTILIZING STATE REVOLVING FUNDS FOR AREAS 
WITH INADEQUATE WATER SUPPLIES. 
(a) IN GENERAL.—For the 5-year period beginning 
on the date of enactment of this Act, in allocating amounts 
to California from the Clean Water State Revolving Fund 
established under title VI of the Federal Water Pollution 
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Control Act (33 U.S.C. 1381 et seq.) and the Drinking 
Water State Revolving Fund established under section 
1452 of the Safe Drinking Water Act (42 U.S.C. 300j– 
12) for any project eligible to receive assistance under sec-
tion 603 of the Federal Water Pollution Control Act (33 
U.S.C. 1383) or section 1452(a)(2) of the Safe Drinking 
Water Act (42 U.S.C. 300j–12(a)(2)), respectively, that 
the State of California determines will provide additional 
water supplies most expeditiously to areas that are at risk 
of having an inadequate supply of water for public health 
and safety purposes or to improve resiliency to drought, 
the Administrator of the Environmental Protection Agen-
cy shall— 
(1) require the State of California to review and 
prioritize funding; 
(2) make a finding on any request for a waiver 
received from the State of California by not later 
than 30 days after the date of conclusion of the in-
formal public comment period pursuant to section 
436(c) of division G of Public Law 113–76 (128 
Stat. 347); and 
(3) authorize, at the request of the State of 
California, 40-year financing for assistance under 
section 603(d)(2) of the Federal Water Pollution 
Control Act (33 U.S.C. 1383(d)(2)) or section 
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1452(f)(2) of the Safe Drinking Water Act (42 
U.S.C. 300j–12(f)(2)), as applicable. 
(b) EFFECT OF SECTION.—Nothing in this section 
authorizes the Administrator of the Environmental Pro-
tection Agency to modify any funding allocation, funding 
criteria, or other requirement relating to State water pol-
lution control revolving funds established under title VI 
of the Federal Water Pollution Control Act (33 U.S.C. 
1381 et seq.) or the State drinking water treatment re-
volving loan funds established under section 1452 of the 
Safe Drinking Water Act (42 U.S.C. 300j–12) for any 
State other than California. 
Subtitle B—Storage Provisions 
SEC. 111. DEFINITIONS. 
In this subtitle: 
(1) FEDERALLY OWNED STORAGE PROJECT.— 
The term ‘‘federally owned storage project’’ means 
any project involving a surface water storage facility 
in a Reclamation State— 
(A) to which the United States holds title; 
and 
(B) that was authorized to be constructed, 
operated, and maintained pursuant to the rec-
lamation laws. 
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(2) STATE-LED STORAGE PROJECT.—The term 
‘‘State-led storage project’’ means any project in a 
Reclamation State that— 
(A) involves a ground water or surface 
water storage facility constructed, operated, and 
maintained by any State, department of a 
State, subdivision of a State, or public agency 
organized pursuant to State law; and 
(B) provides a benefit in meeting any obli-
gation under Federal law (including regula-
tions). 
SEC. 112. WATER STORAGE PROJECT CONSTRUCTION. 
(a) FEDERALLY OWNED STORAGE PROJECTS.— 
(1) AGREEMENTS.—On the request of any 
State, any department, agency, or subdivision of a 
State, or any public agency organized pursuant to 
State law, the Secretary of the Interior may nego-
tiate and enter into an agreement on behalf of the 
United States for the design, study, and construc-
tion or expansion of any federally owned storage 
project in accordance with this section. 
(2) FEDERAL COST SHARE.—Subject to the re-
quirements of this subsection, the Secretary of the 
Interior may participate in a federally owned storage 
project in an amount equal to not more than 50 per-
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cent of the total cost of the federally owned storage 
project. 
(3) COMMENCEMENT.—The construction of a 
federally owned storage project that is the subject of 
an agreement under this subsection shall not com-
mence until the Secretary of the Interior— 
(A) determines that the proposed federally 
owned storage project is feasible in accordance 
with the reclamation laws; 
(B) secures an agreement providing up-
front funding as is necessary to pay the non- 
Federal share of the capital costs; and 
(C) determines that, in return for the Fed-
eral cost-share investment in the federally 
owned storage project, at least a proportionate 
share of the project benefits are Federal bene-
fits, including water supplies dedicated to spe-
cific purposes such as environmental enhance-
ment and wildlife refuges. 
(4) ENVIRONMENTAL
LAWS.—In participating 
in a federally owned storage project under this sub-
section, the Secretary of the Interior shall comply 
with all applicable environmental laws, including the 
National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
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(b) STATE-LED STORAGE PROJECTS.— 
(1) IN GENERAL.—Subject to the requirements 
of this subsection, the Secretary of the Interior may 
participate in a State-led storage project in an 
amount equal to not more than 25 percent of the 
total cost of the State-led storage project. 
(2) REQUEST BY GOVERNOR.—Participation by 
the Secretary of the Interior in a State-led storage 
project under this subsection shall not occur un-
less— 
(A) the participation has been requested by 
the Governor of the State in which the State- 
led storage project is located; 
(B) the State or local sponsor determines, 
and the Secretary of the Interior concurs, 
that— 
(i) the State-led storage project is 
technically and financially feasible; 
(ii) sufficient non-Federal funding is 
available to complete the State-led storage 
project; and 
(iii) the State-led storage project 
sponsors are financially solvent; 
(C) the Secretary of the Interior deter-
mines that, in return for the Federal cost-share 
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investment in the State-led storage project, at 
least a proportional share of the project benefits 
are the Federal benefits, including water sup-
plies dedicated to specific purposes such as en-
vironmental enhancement and wildlife refuges; 
and 
(D) the Secretary of the Interior submits 
to Congress a written notification of these de-
terminations. 
(3) ENVIRONMENTAL
LAWS.—When partici-
pating in a State-led storage project under this sub-
section, the Secretary shall comply with all applica-
ble environmental laws, including the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). 
(4) INFORMATION.—When participating in a 
State-led storage project under this subsection, the 
Secretary of the Interior— 
(A) may rely on reports prepared by the 
sponsor of the State-led storage project, includ-
ing feasibility (or equivalent) studies, environ-
mental analyses, and other pertinent reports 
and analyses; but 
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(d) RIGHTS TO USE CAPACITY.—Subject to compli-
ance with State water rights laws, the right to use the 
capacity of a federally owned storage project or State-led 
storage project for which the Secretary of the Interior has 
entered into an agreement under this subsection shall be 
allocated in such manner as may be mutually agreed to 
by the Secretary of the Interior and each other party to 
the agreement. 
(e) 
COMPLIANCE
WITH
CALIFORNIA
WATER 
BOND.— 
(1) IN
GENERAL.—The provision of Federal 
funding for construction of a State-led storage 
project in the State shall be subject to the condition 
that the California Water Commission shall deter-
mine that the State-led storage project is consistent 
with the California Water Quality, Supply, and In-
frastructure Improvement Act, approved by Cali-
fornia voters on November 4, 2014. 
(2) APPLICABILITY.—This subsection expires 
on the date on which State bond funds available 
under the Act referred to in paragraph (1) are ex-
pended. 
(f) PARTNERSHIP
AND AGREEMENTS.—The Sec-
retary of the Interior, acting through the Commissioner, 
may partner or enter into an agreement regarding the 
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water storage projects identified in section 103(d)(1) of 
the Water Supply, Reliability, and Environmental Im-
provement Act (Public Law 108–361; 118 Stat. 1688) 
with local joint powers authorities formed pursuant to 
State law by irrigation districts and other local water dis-
tricts and local governments within the applicable hydro-
logic region, to advance those projects. 
(g) CALFED AUTHORIZATION.—Title I of Public 
Law 108–361 (the CALFED Bay-Delta Authorization 
Act) (118 Stat. 1681; 123 Stat. 2860; 128 Stat. 164; 128 
Stat. 2312) (as amended by section 207 of Public Law 
114–113) is amended by striking ‘‘2017’’ each place it ap-
pears and inserting ‘‘2019’’. 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to carry out this section $600,000,000 
to remain available until expended. 
(2) ELIGIBILITY.—Only a federally owned stor-
age project or State-led storage project that has 
been determined by the Secretary of the Interior to 
meet the eligibility criteria described in subsections 
(a) and (b) shall be eligible to receive funding under 
this section. 
(i) SUNSET.—This section shall apply only to feder-
ally owned storage projects and State-led storage projects 
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that the Secretary of the Interior determines to be feasible 
before January 1, 2021. 
(j) CONSISTENCY WITH STATE LAW.—Nothing in 
this section preempts or modifies any obligation of the 
United States to act in conformance with applicable State 
law. 
SEC. 113. RESERVOIR OPERATION IMPROVEMENT. 
(a) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of the Army shall 
submit to the Committees on Appropriations and Environ-
ment and Public Works of the Senate and the Committees 
on Appropriations and Transportation and Infrastructure 
of the House of Representatives a report describing, with 
respect to any State under a gubernatorial drought dec-
laration during water year 2015, the following: 
(1) A list of Corps of Engineer projects and 
non-Federal projects operated for flood control in 
accordance with rules prescribed by the Secretary of 
the Army pursuant to section 7 of the Act of De-
cember 22, 1944 (commonly known as the ‘‘Flood 
Control Act of 1944’’) (58 Stat. 890, chapter 665)). 
(2) The year during which the original water 
control manual was approved. 
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(3) The year during which any subsequent revi-
sions to the water control plan and manual of the 
project are proposed to occur. 
(4) A list of projects for which operational devi-
ations for drought contingency have been requested, 
and the status of the request. 
(5) The means by which water conservation and 
water quality improvements were addressed. 
(6) A list of projects for which permanent or 
seasonal changes to storage allocations have been re-
quested, and the status of the request. 
(b) PROJECT IDENTIFICATION.—Not later than 60 
days after the date of completion of the report under sub-
section (a), the Secretary of the Army shall identify any 
projects described in the report that meet the following 
criteria: 
(1) The project is located in a State in which 
a drought emergency has been declared or was in ef-
fect during the 1-year period preceding the date of 
final review by the Secretary. 
(2) 
The 
water 
control 
manual 
and 
hydrometeorological information establishing the 
flood control rule curves of the project are consid-
ered out of date as a result of not being updated for 
a period of 20 years. 
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(3) A non-Federal sponsor of a Corps of Engi-
neers project, or owner of a non-Federal project, as 
applicable, has submitted to the Secretary a written 
request to revise water operations manuals, includ-
ing flood control rule curves, based on the use of im-
proved weather forecasting or run-off forecasting 
methods, new watershed data, changes to project op-
erations, or structural improvements. 
(c) PILOT PROJECTS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of identification of projects under sub-
section (b), if any, the Secretary of the Army shall 
carry out not more than 15 pilot projects, including 
not less than 6 non-Federal projects (within the 
meaning of subsection (a)(1)), if any are identified 
under subsection (b), to implement revisions of 
water operations manuals, including flood control 
rule curves, based on the best available science, 
which may include— 
(A) forecast-informed operations; 
(B) new watershed data; and 
(C) if applicable, in the case of non-Fed-
eral projects, structural improvements. 
(2) CONSULTATION.—In implementing the pilot 
projects pursuant to this subsection, the Secretary of 
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the Army shall consult with all affected interests, in-
cluding— 
(A) non-Federal entities responsible for op-
erations and maintenance costs of a Corps of 
Engineers facility; 
(B) affected water rights holders; 
(C) individuals and entities with storage 
entitlements; and 
(D) local agencies with flood control re-
sponsibilities downstream of a Corps of Engi-
neers facility. 
(d) COORDINATION WITH NON-FEDERAL PROJECT 
ENTITIES.—Before carrying out an activity under this 
section, if a project identified under subsection (b) is— 
(1) a non-Federal project, the Secretary of the 
Army shall— 
(A) consult with the non-Federal project 
owner; and 
(B) enter into a cooperative agreement, 
memorandum of understanding, or other agree-
ment with the non-Federal project owner de-
scribing the scope and goals of the activity and 
the coordination among the parties; or 
(2) owned and operated by the Corps of Engi-
neers, the Secretary of the Army shall— 
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(A) consult with each non-Federal entity 
(including a municipal water district, irrigation 
district, joint powers authority, or other local 
governmental entity) that currently— 
(i) manages (in whole or in part) a 
Corps of Engineers dam or reservoir; or 
(ii) is responsible for operations and 
maintenance costs; and 
(B) enter into a cooperative agreement, 
memorandum of understanding, or other agree-
ment with each entity describing the scope and 
goals of the activity and the coordination 
among the parties. 
(e) CONSIDERATION.—In designing and imple-
menting a forecast-informed reservoir operations plan, the 
Secretary of the Army shall work closely with the National 
Oceanic and Atmospheric Administration and may con-
sider— 
(1) the relationship between ocean and atmos-
pheric conditions, including the El Nin˜o and La 
Nin˜a cycles, and the potential for above-normal, nor-
mal, and below-normal rainfall for the coming water 
year, including consideration of atmospheric river 
forecasts; 
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(2) the precipitation and runoff index specific 
to the basin and watershed of the relevant dam or 
reservoir, including incorporating knowledge of 
hydrological and meteorological conditions that influ-
ence the timing and quantity of runoff; 
(3) improved hydrologic forecasting for precipi-
tation, snowpack, and soil moisture conditions; 
(4) an adjustment of operational flood control 
rule curves to optimize water supply storage and re-
liability, hydropower production, environmental bene-
fits for flows and temperature, and other authorized 
project benefits, without a reduction in flood safety; 
and 
(5) proactive management in response to 
changes in forecasts. 
(f) FUNDING.— 
(1) 
DEFINITION
OF
OPERATIONAL
DOCU-
MENT.—In this subsection, the term ‘‘operational 
document’’ means— 
(A) a water control plan; 
(B) a water control manual; 
(C) a water control diagram; 
(D) a release schedule; 
(E) a rule curve; 
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(F) an operational agreement with a non- 
Federal entity; and 
(G) any environmental documentation as-
sociated with a document described in any of 
subparagraphs (A) through (F). 
(2) ACCEPTANCE AND USE.—The Secretary of 
the Army may accept and expend amounts from 
non-Federal entities to fund all or a portion of the 
cost of carrying out a review or revision of oper-
ational documents for any reservoir that is either op-
erated or maintained by the Secretary, or for which 
the Secretary is authorized to prescribe regulations 
or otherwise advise or consult concerning the use of 
storage allocated for flood risk management or navi-
gation. 
(g) EFFECT OF MANUAL REVISIONS AND OTHER 
PROVISIONS.— 
(1) MANUAL REVISIONS.—In accordance with 
all applicable laws, a revision of a manual shall not 
interfere with— 
(A) the authorized purposes of a Corps of 
Engineers project; or 
(B) the existing purposes of a non-Federal 
project that is regulated for flood control by the 
Secretary of the Army. 
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(2) EFFECT.— 
(A) ACT.—Nothing in this Act authorizes 
the Secretary of the Army to carry out, at a 
Corps of Engineers or non-Federal dam or res-
ervoir, any project or activity for a purpose not 
otherwise authorized as of the date of enact-
ment of this Act. 
(B) SECTION.—Nothing in this section— 
(i) affects or modifies any obligation 
of the Secretary of the Army under State 
law; or 
(ii) authorizes the diversion or use of 
water in a manner that is inconsistent with 
State water rights law. 
(3) BUREAU OF RECLAMATION PROJECTS EX-
CLUDED.—This section shall not apply to any dam 
or reservoir owned by the Bureau of Reclamation. 
(h) MODIFICATIONS TO MANUALS AND CURVES.— 
Not later than 180 days after the date of completion of 
a modification to an operations manual or flood control 
rule curve, the Secretary of the Army shall submit to Con-
gress a report regarding the components of the forecast- 
based reservoir operations plan incorporated into the 
change. 
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SEC. 114. FINDINGS. 
Congress finds that— 
(1) the record drought conditions being experi-
enced in the State of California as of the date of en-
actment of this Act are— 
(A) expected to recur in the future; and 
(B) likely to do so with increasing fre-
quency; 
(2) water storage is an indispensable and inte-
gral part of any solution to address the long-term 
water challenges of the State of California; 
(3) Congress has authorized relevant feasibility 
studies for 5 water storage projects in the State of 
California, including projects for— 
(A) enlargement of Shasta Dam in Shasta 
County under section 2(a) of Public Law 96– 
375 (94 Stat. 1506), as reaffirmed under sec-
tion 103(d)(1)(A)(i)(I) of Public Law 108–361 
(118 Stat. 1684); 
(B) enlargement of Los Vaqueros Res-
ervoir in Contra Costa County under section 
215 of Public Law 108–7 (117 Stat. 147), as 
reaffirmed under section 103(d)(1)(A)(i)(II) of 
Public Law 108–361 (118 Stat. 1684); 
(C) 
construction 
of 
North-of-Delta 
Offstream Storage (Sites Reservoir) in Colusa 
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County under section 215 of Public Law 108– 
7 (117 Stat. 147), as reaffirmed under section 
103(d)(1)(A)(ii)(I) of Public Law 108–361 
(118 Stat. 1684); 
(D) construction of the Upper San Joaquin 
River storage (Temperance Flat) in Fresno and 
Madera Counties under section 215 of Public 
Law 108–7 (117 Stat. 147), as reaffirmed 
under section 103(d)(1)(A)(ii)(II) of Public 
Law 108–361 (118 Stat. 1684); and 
(E) expansion of San Luis Reservoir under 
section 103(f)(1)(A) of Public Law 108–361 
(118 Stat. 1694); 
(4) as of the date of enactment of this Act, 
more than 10 years have elapsed since the author-
ization of the feasibility studies referred to in para-
graph (3), but for a variety of reasons the slow pace 
of work on completion of the feasibility studies for 
those 5 water storage projects is unjustified and of 
deep concern; and 
(5) there is significant public interest in, and 
urgency with respect to, completing all feasibility 
studies and environmental reviews for the water 
storage projects referred to in paragraph (3), given 
the critical need for that infrastructure to address 
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current and future water challenges of the State of 
California. 
SEC. 115. STUDIES. 
The Secretary of the Interior, through the Commis-
sioner, shall— 
(1) complete the Upper San Joaquin River 
(Temperance Flat) feasibility study described in 
clause (ii)(II) of section 103(d)(1)(A) of Public Law 
108–361 (118 Stat. 1684) and submit the study to 
the appropriate committees of the House of Rep-
resentatives and the Senate not later than March 
31, 2016; 
(2) complete the Los Vaqueros Reservoir feasi-
bility study described in clause (i)(II) of section 
103(d)(1)(A) of Public Law 108–361 (118 Stat. 
1684) and submit the study to the appropriate com-
mittees of the House of Representatives and the 
Senate not later than November 30, 2016; 
(3) complete the North-of-Delta Offstream 
Storage (Sites Reservoir) feasibility study described 
in clause (ii)(I) of section 103(d)(1)(A) of Public 
Law 108–361 (118 Stat. 1684) and submit the 
study to the appropriate committees of the House of 
Representatives and the Senate not later than No-
vember 30, 2017; 
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(4) complete the San Luis Reservoir feasibility 
study described in section 103(f)(1)(A) of Public 
Law 108–361 (118 Stat. 1694) and submit the 
study to the appropriate committees of the House of 
Representatives and the Senate not later than De-
cember 31, 2017; 
(5) provide a progress report on the status of 
the feasibility studies referred to in paragraphs (1) 
through (3) to the appropriate committees of the 
House of Representatives and the Senate not later 
than 90 days after the date of enactment of this Act 
and every 180 days thereafter until December 31, 
2017, as applicable, which report shall include 
timelines for study completion, draft environmental 
impact statements, final environmental impact state-
ments, and records of decision; 
(6) document, delineate, and publish costs di-
rectly relating to the engineering and construction of 
a water storage project separately from the costs re-
sulting from regulatory compliance or the construc-
tion of auxiliary facilities necessary to achieve regu-
latory compliance if the Secretary of the Interior de-
termines in any feasibility study required under this 
subsection, reclamation laws, the Central Valley 
Project Improvement Act (Public Law 102–575; 106 
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Stat. 4706), the Fish and Wildlife Coordination Act 
(16 U.S.C. 661 et seq.), the Endangered Species Act 
of 1973 (16 U.S.C. 1531 et seq.), and other applica-
ble law, that the project is not feasible; 
(7) include information required in paragraph 
(7) in the feasibility studies issued pursuant para-
graphs (1) through (5), as applicable; and 
(8) communicate, coordinate, and cooperate 
with public water agencies that— 
(A) contract with the United States for 
Central Valley Project water; and 
(B) are expected to participate in the cost 
pools that will be created for the projects pro-
posed in the feasibility studies under this sec-
tion. 
SEC. 116. LOSSES CAUSED BY CONSTRUCTION AND OPER-
ATION OF WATER STORAGE PROJECTS. 
The Secretary of the Interior, in consultation with 
other appropriate agencies, shall establish a process to ad-
dress direct and substantial impacts caused by any storage 
projects identified under section 115. 
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Subtitle 
C—Desalination, 
Water 
Reuse and Recycling, and Con-
servation 
SEC. 
121. 
WATER 
RECYCLING 
AND 
DESALINATION 
PROJECTS. 
(a) FINDINGS.—Congress finds that— 
(1) Federal funding to support water recycling 
and desalination projects in recent years has been 
insufficient to address water supply needs in many 
regions across the United States; 
(2) climate variability and drought resiliency re-
quire additional water supply projects to cope with 
higher probabilities of longer, more intense droughts; 
(3) the historic drought in the State of Cali-
fornia highlights the necessity of long-term projects 
to address a changing climate; 
(4) the California Water Plan and surveys con-
ducted by the National Association of Clean Water 
Agencies, the Water Reuse Association, the Associa-
tion of California Water Agencies, the Western Re-
cycled Water Coalition, and the California Associa-
tion of Sanitation Agencies led to the identification 
of 137 water recycling and desalination projects ca-
pable of producing 1,412,799 acre-feet of new water 
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supplies if sufficient funding or financing tools ex-
isted to facilitate development of the projects; 
(5) there exists a Federal interest in the 
projects referred to in paragraph (4) to the extent 
that the projects can— 
(A) diversify water supplies; 
(B) reduce conflicts hindering existing 
Federal reclamation efforts on the Colorado 
River and around the Delta; and 
(C) advance technologies which reduce the 
cost and improve the efficiency of water desali-
nation projects; and 
(6) this Act will enable Federal support for de-
salination projects, including the projects referred to 
in paragraph (4) and others by providing Federal 
cost-share grants, through the Water Desalination 
Act of 1996 (42 U.S.C. 10301 note; Public Law 
104–298), the Reclamation Wastewater and Ground-
water Study and Facilities Act (43 U.S.C. 390h et 
seq.), and the WaterSMART program of the Depart-
ment of the Interior, and by making low-cost loans 
or loan guarantees available under subtitle D. 
(b) WATER RECYCLING PROJECTS.—On submission 
of a completed feasibility report in accordance with Bu-
reau of Reclamation standards, the Secretary of the Inte-
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rior shall review requests for water recycling project fund-
ing assistance and, subject to the availability of appropria-
tions, award funding, on a competitive basis, for projects 
that meet the eligibility requirements of this title, subject 
to the condition that the Secretary shall include among 
the projects reviewed watercycling projects sponsored by 
any of the following: 
(1) Bear Valley Community Services District. 
(2) Beaumont Cherry Valley Water District. 
(3) Burbank Water and Power. 
(4) Cambria Community Services District. 
(5) Central Contra Costa Sanitary District. 
(6) City of American Canyon. 
(7) City of Benicia. 
(8) City of Brentwood. 
(9) City of Camarillo. 
(10) City of Carlsbad (Municipal Water Dis-
trict). 
(11) City of Corona Department of Water and 
Power. 
(12) City of Daly City. 
(13) City of Del Mar. 
(14) City of Escondido. 
(15) City of Fresno. 
(16) City of Hayward. 
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(17) City of Los Angeles (Bureau of Sanitation 
and Department of Water and Power). 
(18) City of Modesto. 
(19) City of Morro Bay. 
(20) City of Mountain View. 
(21) City of Oceanside. 
(22) City of Palo Alto. 
(23) City of Paso Robles. 
(24) City of Pismo Beach. 
(25) City of Pleasanton. 
(26) City of Poway. 
(27) City of Redwood City. 
(28) City of Riverside. 
(29) City of Roseville. 
(30) City of Sacramento. 
(31) City of San Bernardino. 
(32) City of San Diego. 
(33) City of San Luis Obispo. 
(34) City of Santa Barbara. 
(35) City of Santa Rosa. 
(36) City of Shasta Lake. 
(37) City of Sunnyvale. 
(38) City of Turlock. 
(39) City of Vacaville. 
(40) City of Ventura. 
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(104) Water Replenishment District of South-
ern California. 
(105) West Basin Municipal Water District. 
(106) West Bay Sanitary District. 
(107) West County Wastewater District. 
(108) Western Municipal Water District of Riv-
erside County. 
(109) Western Riverside County Regional 
Wastewater Authority. 
(110) Yucaipa Valley Water District. 
(c) FEDERAL SUPPORT
FOR WATER RECYCLING 
PROJECTS.—Water recycling and reuse projects described 
in subsection (b) may compete for funding authorized 
under the following sections of this title if the projects 
meet applicable eligibility requirements, subject to the con-
dition that no particular project receive Federal grant 
funding from more than one Federal grant program: 
(1) Section 101, which amends section 9504 
(WaterSMART) of the Omnibus Public Land Man-
agement Act of 2009 (42 U.S.C. 10364) and author-
izes $200,000,000 in additional Federal assistance 
for water storage and conveyance facilities, inte-
grated regional water management, reclamation and 
recycling projects, and ground water recharge. 
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(2) Section 123, which amends the Reclamation 
Wastewater and Groundwater Study and Facilities 
Act (43 U.S.C. 390h) and authorizes $150,000,000 
in Federal assistance for water recycling and reuse 
projects. 
(3) Subtitle D, which authorizes the Secretary 
of the Interior to provide Federal assistance to fi-
nance the development of critical water resource in-
frastructure through loans and loan guarantees to 
qualified applicants. 
(d) 
FEDERAL
SUPPORT
FOR
DESALINATION 
PROJECTS.— 
(1) ELIGIBILITY.—On submission of a com-
pleted feasibility report in accordance with Bureau 
of Reclamation standards, the Secretary of the Inte-
rior shall review requests for water desalination 
funding assistance and, subject to the availability of 
appropriations, award funding on a competitive basis 
for projects that meet the eligibility requirements of 
this title, subject to the condition that the Secretary 
shall include among the projects reviewed the fol-
lowing desalination projects referred to in the 2013 
California Water Plan or in an integrated regional 
water management plan accepted by the State of 
California: 
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(A) Cambria Desalination Project. 
(B) Camp Pendleton Seawater Desalina-
tion Project. 
(C) Chino Basin Desalter 3. 
(D) Doheny Ocean Desalination Project. 
(E) GREAT Program Groundwater Desali-
nation Facility Expansion. 
(F) Huntington Beach Seawater Desalina-
tion Project. 
(G) Irvine Non-Potable Shallow Ground-
water Unit Desalter. 
(H) Irvine Ranch Water District Wells 51, 
52, 53, 21, and 22 Potable (Non-exempt) 
Desalter Plant. 
(I) Long Beach Seawater Desalination 
Project. 
(J) Marina Desalination Facility Expan-
sion. 
(K) Mission Valley Brackish Groundwater 
Recovery Project. 
(L) Monterey Bay Regional Water Project 
Desalination Facility (Moss Landing). 
(M) Monterey Peninsula Water Supply 
Project. 
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(N) Monterey Peninsula Water Supply 
Project (Ocean Desalination/Groundwater Re-
plenishment). 
(O) Moorpark Groundwater Desalter. 
(P) North Pleasant Valley Groundwater 
Desalter. 
(Q) Oceanside Ocean Desalination Project 
(San Luis Rey Basin). 
(R) Perris II Desalter. 
(S) Ramona Desalting Facility. 
(T) San Diego Formation/Balboa Park 
Groundwater Desalination Facility. 
(U) San Elijo Valley Groundwater Project. 
(V) 
Bay 
Area 
Regional 
Desalination 
Project. 
(W) San Pasqual Brackish Groundwater 
Recovery Project. 
(X) Santa Cruz/Soquel Creek Water Dis-
trict Desalination Plant. 
(Y) South Orange Coastal Ocean Desalina-
tion Project. 
(Z) West Basin Seawater Desalination Re-
gional Project. 
(AA) West Simi Valley Desalter. 
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(2) FUNDING.—Desalination projects described 
in subsection (1) may compete for funding author-
ized under the following sections of this title if the 
projects meet applicable eligibility requirements, sub-
ject to the condition that no particular project re-
ceive Federal grant funding from more than one 
Federal program: 
(A) Section 101, which amends section 
9504 (WaterSMART) of the Omnibus Public 
Land Management Act of 2009 (42 U.S.C. 
10364) and authorizes $200,000,000 in addi-
tional Federal assistance for water storage and 
conveyance facilities, integrated regional water 
management, 
reclamation 
and 
recycling 
projects, and ground water recharge. 
(B) Section 122, which reauthorizes the 
Water Desalination Act of 1996 (42 U.S.C. 
10301; Public Law 104–298) as amended, and 
authorizes $100,000,000 in Federal assistance 
for 
desalination 
research, 
demonstration 
projects, and desalination project feasibility and 
design. 
(C) Section 123, which amends the Rec-
lamation Wastewater and Groundwater Study 
and Facilities Act (43 U.S.C. 390h) and au-
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thorizes $150,000,000 in Federal assistance for 
water recycling and reuse projects. 
(D) Subtitle D, which authorizes the Sec-
retary of the Interior to provide Federal assist-
ance to finance the development of critical 
water resource infrastructure through loans and 
loan guarantees to qualified applicants. 
SEC. 122. REAUTHORIZATION OF WATER DESALINATION 
ACT. 
(a) AUTHORIZATION OF RESEARCH AND STUDIES.— 
(1) IN GENERAL.—Section 3 of the Water De-
salination Act of 1996 (42 U.S.C. 10301 note; Pub-
lic Law 104–298) is amended by adding at the end 
the following: 
‘‘(e) PRIORITIZATION.—In carrying out this section, 
the Secretary of the Interior shall prioritize funding for 
research— 
‘‘(1) to reduce energy consumption and lower 
the cost of seawater and brackish water desalination; 
‘‘(2) to reduce the environmental impacts of 
seawater desalination, including subsurface intakes 
and other technological improvements, and develop 
technology and strategies to mitigate those impacts; 
‘‘(3) to improve existing reverse osmosis and 
membrane technology; 
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‘‘(4) to carry out basic and applied research on 
next generation desalination technologies, including 
graphene membranes, forward osmosis, hybrid mem-
brane-thermal desalination, improved energy recov-
ery systems, and renewable energy-powered desalina-
tion systems that could significantly reduce desalina-
tion costs; 
‘‘(5) to develop portable or modular desalina-
tion units capable of providing temporary emergency 
water supplies for domestic or military deployment 
purposes; and 
‘‘(6) to encourage development of desalination 
siting plans, including maps of preferred and pri-
ority locations, by States that consider local and re-
gional water supply needs and sources, potential im-
pacts on coastal and ocean resources and fisheries, 
the effects of sea level rise and other factors that af-
fect project siting.’’. 
(b) DESALINATION DEMONSTRATION AND DEVELOP-
MENT.—Section 4 of the Water Desalination Act of 1996 
(42 U.S.C. 10301 note; Public Law 104–298) is amend-
ed— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (2) and 
(3) as paragraphs (3) and (4), respectively; and 
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(B) by inserting after paragraph (1) the 
following: 
‘‘(2) FEASIBILITY AND DESIGN.—Award grants 
and enter into contracts with non-Federal project 
sponsors to provide financial assistance to study the 
feasibility and support the design of desalination fa-
cilities (including associated water distribution infra-
structure) that provide usable water.’’; and 
(2) by adding at the end the following: 
‘‘(c) PRIORITIZATION.—In carrying out demonstra-
tion and development activities under subsection (a), the 
Secretary of the Interior shall prioritize projects— 
‘‘(1) in drought-stricken States and commu-
nities; 
‘‘(2) in States for which funding has been au-
thorized for desalination demonstration and develop-
ment projects; and 
‘‘(3) that can reduce reliance on imported water 
supplies that have an impact on species listed under 
the Endangered Species Act of 1973 (16 U.S.C. 
1531 et seq.). 
‘‘(d) CRITERIA FOR ELIGIBILITY.—In carrying out 
this section, the Secretary of the Interior shall establish 
criteria to determine projects eligible for grant funding 
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based on the ability of the projects to provide regional 
water supply benefits, including— 
‘‘(1) improving water supply reliability in re-
gions subject to frequent and severe drought; 
‘‘(2) enhancement of public health, safety, eco-
systems, and watershed sustainability; 
‘‘(3) preservation of groundwater through re-
duction of withdrawals from aquifers; 
‘‘(4) offsetting demand for water conveyed from 
environmentally sensitive areas outside service area 
of the project; and 
‘‘(5) mitigation of saltwater intrusion to 
aquifers.’’. 
(c) COST SHARING.—Section 7 of the Water Desali-
nation Act of 1996 (42 U.S.C. 10301 note; Public Law 
104–298) is amended— 
(1) in the first sentence, by striking ‘‘The Fed-
eral share’’ and inserting the following: 
‘‘(a) MAXIMUM.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) and subsection (b) and limited to the 5 
years following the date of enactment of the Cali-
fornia Emergency Drought Relief Act, the Federal 
share’’; 
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(2) in the second sentence, by striking ‘‘A Fed-
eral’’ and inserting the following: 
‘‘(b) FEASIBILITY DETERMINATION.—A Federal’’; 
(3) in the third sentence, by striking ‘‘The Sec-
retary’’ and inserting the following: 
‘‘(c) PROCEDURES.—The Secretary’’; 
(4) in the fourth sentence, by striking ‘‘Costs’’ 
and inserting the following: 
‘‘(d) OPERATION, MAINTENANCE, REPAIR, AND RE-
HABILITATION.—The costs’’; and 
(5) in subsection (a) (as designated by para-
graph (1)), by adding at the end the following: 
‘‘(2) EXCEPTION.—The Federal share of the 
cost of project design under section 4 shall not ex-
ceed 25 percent of the total cost of the project de-
sign.’’. 
(d) AUTHORIZATION OF APPROPRIATIONS.—In order 
to advance water desalination research and project devel-
opment, section 8 of the Water Desalination Act of 1996 
(42 U.S.C. 10301 note; Public Law 104–298) is amend-
ed— 
(1) in subsection (a), in the first sentence— 
(A) by striking ‘‘$5,000,000’’ and inserting 
‘‘$10,000,000’’; and 
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(B) by striking ‘‘2013’’ and inserting 
‘‘2020’’; and 
(2) in subsection (b), by striking ‘‘$3,000,000 
for each of fiscal years 2012 through 2013’’ and in-
serting ‘‘$50,000,000 for the period of fiscal years 
2016 through 2020’’. 
(e) CONSULTATION.—Section 9 of the Water Desali-
nation Act of 1996 (42 U.S.C. 10301 note; Public Law 
104–298) is amended— 
(1) by striking the section designation and 
heading and all that follows through ‘‘In carrying 
out the provisions of’’ in the first sentence and in-
serting the following: 
‘‘SEC. 9. CONSULTATION AND COORDINATION. 
‘‘(a) CONSULTATION.—In carrying out’’; 
(2) in the second sentence, by striking ‘‘The au-
thorization’’ and inserting the following: 
‘‘(b) OTHER DESALINATION PROGRAMS.—The au-
thorization’’; and 
(3) by inserting after subsection (b) (as so des-
ignated) the following: 
‘‘(c) COORDINATION
OF FEDERAL DESALINATION 
RESEARCH AND DEVELOPMENT.—For the effective period 
of the California Emergency Drought Relief Act, the 
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White House Office of Science and Technology Policy shall 
develop a coordinated strategic plan that— 
‘‘(1) establishes priorities for future Federal in-
vestments in desalination; and 
‘‘(2) coordinates the activities of Federal agen-
cies involved in desalination, including the Bureau of 
Reclamation, the National Science Foundation, the 
Office of Naval Research of the Department of De-
fense, the National Laboratories of the Department 
of Energy, the United States Geological Survey, the 
Environmental Protection Agency, and the National 
Oceanic and Atmospheric Administration.’’. 
SEC. 123. NEW WATER RECYCLING AND REUSE PROJECTS. 
Section 1602 of the Reclamation Wastewater and 
Groundwater Study and Facilities Act (43 U.S.C. 390h) 
is amended by adding at the end the following: 
‘‘(e) AUTHORIZATION OF NEW WATER RECYCLING 
AND REUSE PROJECTS.— 
‘‘(1) IN GENERAL.—A non-Federal interest may 
submit to the Secretary of the Interior proposals for 
eligible projects in the form of completed feasibility 
studies. 
‘‘(2) AUTHORITY TO PROVIDE ASSISTANCE.— 
The Secretary of the Interior may provide financial 
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assistance under this subtitle to carry out projects 
within— 
‘‘(A) any Reclamation State, including— 
‘‘(i) Arizona; 
‘‘(ii) California; 
‘‘(iii) Colorado; 
‘‘(iv) Idaho; 
‘‘(v) Kansas; 
‘‘(vi) Montana; 
‘‘(vii) Nebraska; 
‘‘(viii) Nevada; 
‘‘(ix) New Mexico; 
‘‘(x) North Dakota; 
‘‘(xi) Oklahoma; 
‘‘(xii) Oregon; 
‘‘(xiii) South Dakota; 
‘‘(xiv) Texas; 
‘‘(xv) Utah; 
‘‘(xvi) Washington; and 
‘‘(xvii) Wyoming; and 
‘‘(B) the States of Alaska and Hawaii. 
‘‘(3) ELIGIBLE PROJECTS.—A project shall be 
considered to be eligible for consideration under this 
subsection if the project reclaims and reuses— 
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‘‘(A) municipal, industrial, domestic, or ag-
ricultural wastewater; or 
‘‘(B) impaired groundwater or surface 
water. 
‘‘(4) GUIDELINES.— 
‘‘(A) IN
GENERAL.—Not later than 90 
days after the date of enactment of this sub-
section, the Secretary of the Interior shall issue 
water recycling project solicitation and evalua-
tion guidelines that include the criteria de-
scribed in subsection (f)(3). 
‘‘(B) REVIEW.—In accordance with the 
priorities and criteria described in subsection 
(f), the Secretary of the Interior shall review 
each feasibility study received under paragraph 
(1) to determine whether the study, and the 
process under which the study was developed, 
comply with Federal laws (including regula-
tions) applicable to feasibility studies of water 
recycling and reuse projects. 
‘‘(f) COMPETITIVE GRANT FUNDING OF WATER RE-
CYCLING AND REUSE PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary of the Inte-
rior shall administer a competitive grant program 
under which the non-Federal project sponsor of any 
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project determined by the Secretary of the Interior 
to be feasible under subsection (e)(2) shall be eligi-
ble to apply for funding for the planning, design, 
and construction of the project. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Sec-
retary of the Interior to carry out this subsection 
$200,000,000, to remain available until expended.’’. 
SEC. 
124. 
PROMOTING 
WATER 
EFFICIENCY 
WITH 
WATERSENSE. 
(a) AUTHORIZATION.—The Administrator of the En-
vironmental Protection Agency (referred to in this section 
as the ‘‘Administrator’’) is authorized to continue to carry 
out the voluntary program, known as the ‘‘WaterSense 
Program’’, to identify and promote water efficient prod-
ucts, buildings, landscapes, facilities, processes, and serv-
ices so as— 
(1) to reduce water use; 
(2) to reduce the strain on water, wastewater, 
and stormwater infrastructure; 
(3) to conserve energy used to pump, heat, 
transport, and treat water; and 
(4) to preserve water resources for future gen-
erations, through voluntary labeling of, or other 
forms of communications regarding, products, build-
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ings, landscapes, facilities, processes, and services 
that meet the highest water efficiency and perform-
ance criteria. 
(b) REVIEW.—Not less frequently than once every 4 
years, the Administrator shall regularly review and, if ap-
propriate, update WaterSense criteria that have been 
adopted for the voluntary labeling of categories of prod-
ucts, buildings, landscapes, facilities, processes, and serv-
ices. 
(c) TRANSPARENCY.—The Administrator shall, to the 
maximum extent practicable, regularly estimate and make 
available to the public the production and relative market 
shares of, and the savings of water, energy, and capital 
costs of water, wastewater, and stormwater infrastructure 
attributable to the use of WaterSense-labeled products, 
buildings, landscapes, facilities, processes, and services, at 
least annually. 
(d) PUBLIC COMMENT.—Prior to establishing or re-
vising a WaterSense category, specification, installation 
criterion, or other criterion, the Administrator shall— 
(1) solicit comments from interested parties and 
the public; and 
(2) provide reasonable notice to interested par-
ties and the public of any changes (including effec-
tive dates), on the adoption of a new or revised cat-
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egory, specification, installation criterion, or other 
criterion. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out the WaterSense 
program of the Environmental Protection Agency 
$2,500,000 for each of fiscal years 2016 through 2019. 
Subtitle 
D—Reclamation 
Infra-
structure Finance and Innova-
tion 
SEC. 131. PURPOSES. 
The purposes of this subtitle are— 
(1) to promote increased development of critical 
water resources infrastructure by establishing addi-
tional opportunities for financing water resources 
projects; 
(2) to attract new investment capital to infra-
structure projects that are capable of generating rev-
enue streams through user fees or other dedicated 
funding sources; 
(3) to complement existing Federal funding 
sources and address budgetary constraints on Bu-
reau of Reclamation programs; and 
(4) to leverage private investment in water re-
sources infrastructure. 
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SEC. 132. DEFINITIONS. 
In this subtitle: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a corporation; 
(B) a partnership; 
(C) a joint venture; 
(D) a trust; 
(E) a State, or local governmental entity, 
agency, or instrumentality; and 
(F) a conservancy district, irrigation dis-
trict, canal company, mutual water company, 
water users’ association, Indian tribe, agency 
created by interstate compact, or any other en-
tity that has the capacity to contract with the 
United States under the reclamation laws. 
(2) FEDERAL CREDIT INSTRUMENT.—The term 
‘‘Federal credit instrument’’ means a secured loan 
or loan guarantee authorized to be made available 
under this title with respect to a project. 
(3) INVESTMENT-GRADE
RATING.—The term 
‘‘investment-grade rating’’ means a rating of BBB 
minus, Baa3, bbb minus, BBB (low), or higher as 
assigned by a rating agency to project obligations. 
(4) LENDER.— 
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(A) IN
GENERAL.—The term ‘‘lender’’ 
means any non-Federal qualified institutional 
buyer (as defined in section 230.144A(a) of 
title 17, Code of Federal Regulations (or a suc-
cessor regulation) (commonly known as ‘‘Rule 
144A(a) of the Securities and Exchange Com-
mission’’ and issued under the Securities Act of 
1933 (15 U.S.C. 77a et seq.))). 
(B) INCLUSIONS.—The term ‘‘lender’’ in-
cludes— 
(i) a qualified retirement plan (as de-
fined in section 4974 of the Internal Rev-
enue Code of 1986) that is a qualified in-
stitutional buyer; and 
(ii) a governmental plan (as defined in 
section 414 of the Internal Revenue Code 
of 1986) that is a qualified institutional 
buyer. 
(5) LOAN GUARANTEE.—The term ‘‘loan guar-
antee’’ means any guarantee or other pledge by the 
Secretary of the Interior to pay all or part of the 
principal of, and interest on, a loan or other debt ob-
ligation issued by an obligor and funded by a lender. 
(6) OBLIGOR.—The term ‘‘obligor’’ means an 
eligible entity that is primarily liable for payment of 
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the principal of, or interest on, a Federal credit in-
strument. 
(7) PROJECT OBLIGATION.— 
(A) IN GENERAL.—The term ‘‘project obli-
gation’’ means any note, bond, debenture, or 
other debt obligation issued by an obligor in 
connection with the financing of a project. 
(B) EXCLUSION.—The term ‘‘project obli-
gation’’ does not include a Federal credit in-
strument. 
(8) RATING AGENCY.—The term ‘‘rating agen-
cy’’ means a credit rating agency registered with the 
Securities and Exchange Commission as a nationally 
recognized statistical rating organization (as defined 
in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a)). 
(9) RECLAMATION
STATE.—The term ‘‘Rec-
lamation State’’ means any of the States of— 
(A) Arizona; 
(B) California; 
(C) Colorado; 
(D) Idaho; 
(E) Kansas; 
(F) Montana; 
(G) Nebraska; 
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(H) Nevada; 
(I) New Mexico; 
(J) North Dakota; 
(K) Oklahoma; 
(L) Oregon; 
(M) South Dakota; 
(N) Texas; 
(O) Utah; 
(P) Washington; and 
(Q) Wyoming. 
(10) SECURED
LOAN.—The term ‘‘secured 
loan’’ means a direct loan or other debt obligation 
issued by an obligor and funded by the Secretary in 
connection with the financing of a project under sub-
title A. 
(11) SUBSIDY
AMOUNT.—The term ‘‘subsidy 
amount’’ means the amount of budget authority suf-
ficient to cover the estimated long-term cost to the 
Federal Government of a Federal credit instrument, 
as calculated on a net present value basis, excluding 
administrative costs and any incidental effects on 
governmental receipts or outlays in accordance with 
the Federal Credit Reform Act of 1990 (2 U.S.C. 
661 et seq.). 
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(12) SUBSTANTIAL
COMPLETION.—The term 
‘‘substantial completion’’, with respect to a project, 
means the earliest date on which a project is consid-
ered to perform the functions for which the project 
is designed. 
SEC. 133. AUTHORITY TO PROVIDE ASSISTANCE. 
The Secretary of the Interior may provide financial 
assistance under this subtitle to carry out projects with-
in— 
(1) any Reclamation State; 
(2) any other State in which the Bureau of 
Reclamation is authorized to provide project assist-
ance; and 
(3) the States of Alaska and Hawaii. 
SEC. 134. APPLICATIONS. 
To be eligible to receive assistance under this subtitle, 
an eligible entity shall submit to the Secretary of the Inte-
rior an application at such time, in such manner, and con-
taining such information as the Secretary of the Interior 
may require. 
SEC. 135. ELIGIBILITY FOR ASSISTANCE. 
(a) ELIGIBLE PROJECTS.—The following non-feder-
ally owned projects that contribute to a safe, adequate 
water supply for domestic, agricultural, environmental, or 
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municipal and industrial use may be carried out using as-
sistance made available under this subtitle: 
(1) A project for the reclamation and reuse of 
wastewater, and naturally impaired ground and sur-
face waters, which has a completed feasibility study 
that complies with Reclamation standards. 
(2) A new water infrastructure facility project, 
including a water conduit, pipeline, canal, pumping, 
power, and associated facilities or a water efficiency 
project. 
(3) A project for accelerated repair and replace-
ment of an aging water distribution facility. 
(4) A brackish or sea water desalination 
project. 
(5) A project for ground water replenishment, 
ground water storage, or surface storage. 
(6) A combination of projects, each of which is 
eligible under paragraphs (1) through (5), for which 
an eligible entity or group of eligible entities submits 
a single application. 
(b) ACTIVITIES ELIGIBLE
FOR ASSISTANCE.—For 
purposes of this subtitle, an eligible activity with respect 
to an eligible project under subsection (a) includes the cost 
of— 
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(1) development-phase activities, including plan-
ning, feasibility analysis, revenue forecasting, envi-
ronmental review, permitting, preliminary engineer-
ing and design work, and other preconstruction ac-
tivities; 
(2) construction, reconstruction, rehabilitation, 
and replacement activities; 
(3) the acquisition of real property (including 
water rights, land relating to the project, and im-
provements to land), environmental mitigation, con-
struction contingencies, and acquisition of equipment 
subject to subsection (c); 
(4) capitalized interest necessary to meet mar-
ket requirements, reasonably required reserve funds, 
capital issuance expenses, and other carrying costs 
during construction; and 
(5) refinancing interim construction funding, 
existing long-term project obligations, or a secured 
loan or loan guarantee made under this subtitle. 
(c) LIMITATION ON USE.—The proceeds from Fed-
eral credit instruments made available under this subtitle 
may only be used to acquire non-Federal land or interest 
in land from a willing seller, when the seller does not con-
test the purchase or price paid. 
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SEC. 136. DETERMINATION OF ELIGIBILITY AND PROJECT 
SELECTION. 
(a) ELIGIBILITY REQUIREMENTS.—To be eligible to 
receive financial assistance under this subtitle, a project 
shall meet the following criteria, as determined by the Sec-
retary of the Interior: 
(1) CREDITWORTHINESS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the project shall be creditworthy, as 
determined by the Secretary of the Interior, 
who shall ensure that any financing for the 
project has appropriate security features, such 
as a rate covenant, to ensure repayment. 
(B) PRELIMINARY RATING OPINION LET-
TER.—The Secretary of the Interior shall re-
quire each applicant to provide a preliminary 
rating opinion letter from at least 1 rating 
agency indicating that the senior obligations of 
the project (which may be the Federal credit in-
strument) have the potential to achieve an in-
vestment-grade rating. 
(2) ELIGIBLE
PROJECT
COSTS.—The eligible 
project costs of a project shall be reasonably antici-
pated to be not less than $20,000,000. 
(3) DEDICATED REVENUE SOURCES.—The Fed-
eral credit instrument for the project shall be repay-
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able, in whole or in part, from dedicated revenue 
sources that also secure the project obligations. 
(4) PUBLIC SPONSORSHIP OF PRIVATE ENTI-
TIES.—A project carried out by a private entity shall 
be sponsored by a State, department of a State, sub-
division of a State, or a public agency organized pur-
suant to State law. 
(b) SELECTION CRITERIA.— 
(1) ESTABLISHMENT.—The Secretary of the In-
terior shall establish criteria for the selection of 
projects that meet the eligibility requirements of 
subsection (a), in accordance with paragraph (2). 
(2) CRITERIA.—The selection criteria shall in-
clude the following: 
(A) The extent to which a project serves a 
region with significant water resources chal-
lenges. 
(B) The extent to which the project is na-
tionally or regionally significant. 
(C) The extent to which assistance under 
this section would foster innovative public-pri-
vate partnerships and attract private debt or 
equity investment. 
(D) The extent to which the project fos-
ters— 
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(i) collaborative partnerships between 
cities, counties, water districts, and State 
and Federal agencies; and 
(ii) innovative recycling programs that 
augment a combination of industrial, com-
mercial, residential, and agricultural uses. 
(E) The likelihood that assistance under 
this section would enable the project to proceed 
at an earlier date than the project would other-
wise be able to proceed. 
(F) The amount of budget authority re-
quired to fund the Federal credit instrument 
made available under this subtitle. 
(G) The extent to which the project helps 
maintain or protect the environment. 
(3) CONSISTENCY
OF
CRITERIA.—Not later 
than 180 days after the date of enactment of this 
Act, the Secretary of the Interior shall issue eligi-
bility requirements under this title for water recy-
cling projects that reclaim and reuse municipal, in-
dustrial, domestic, or agricultural wastewater or im-
paired ground or surface waters. 
(c) RECEIPT OF OTHER FEDERAL FUNDING.—Re-
ceipt of a Federal grant or contract or other Federal fund-
ing to support an eligible project shall not preclude the 
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project from being eligible for assistance under this sub-
title. Assistance under this subtitle shall not be counted 
as Federal funding under cost-sharing requirements other-
wise applicable to a project eligible for assistance under 
this subtitle. 
SEC. 137. SECURED LOANS. 
(a) AGREEMENTS.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
through (4), the Secretary of the Interior may enter 
into agreements with 1 or more obligors to make se-
cured loans, the proceeds of which shall be used— 
(A) to finance eligible project costs of any 
project selected under section 136; 
(B) to refinance interim construction fi-
nancing of eligible project costs of any project 
selected under section 136; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if that refi-
nancing provides additional funding capacity for 
the completion, enhancement, or expansion of 
any project that— 
(i) is selected under section 136; or 
(ii) otherwise meets the requirements 
of section 136. 
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(2) LIMITATION ON REFINANCING OF INTERIM 
CONSTRUCTION FINANCING.—A secured loan under 
paragraph (1) shall not be used to refinance interim 
construction financing under paragraph (1)(B) later 
than 1 year after the date of substantial completion 
of the applicable project. 
(3) RISK
ASSESSMENT.—Before entering into 
an agreement under this subsection for a secured 
loan, the Secretary of the Interior, in consultation 
with the Director of the Office of Management and 
Budget and each rating agency providing a prelimi-
nary 
rating 
opinion 
letter 
under 
section 
136(a)(1)(B), shall determine an appropriate capital 
reserve subsidy amount for the secured loan, taking 
into account each such preliminary rating opinion 
letter. 
(4) 
INVESTMENT-GRADE
RATING
REQUIRE-
MENT.—The execution of a secured loan under this 
section shall be contingent on receipt by the senior 
obligations of the project of an investment-grade rat-
ing. 
(b) TERMS AND LIMITATIONS.— 
(1) IN GENERAL.—A secured loan provided for 
a project under this section shall be subject to such 
terms and conditions, and contain such covenants, 
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representations, warranties, and requirements (in-
cluding requirements for audits), as the Secretary of 
the Interior determines to be appropriate. 
(2) 
NONSUBORDINATION.—A 
secured 
loan 
under this section shall not be subordinated to the 
claims of any holder of project obligations in the 
event of bankruptcy, insolvency, or liquidation of the 
obligor of the project. 
(3) MAXIMUM AMOUNT.—The amount of a se-
cured loan under this section shall not exceed the 
lesser of— 
(A) an amount equal to 49 percent of the 
reasonably anticipated eligible project costs; and 
(B) if the secured loan does not receive an 
investment-grade rating, an amount equal to 
other project obligations that have received an 
investment-grade rating. 
(4) PAYMENT.—A secured loan under this sec-
tion— 
(A) shall be payable, in whole or in part, 
from State or local taxes, user fees, or other 
dedicated revenue sources that also secure the 
senior project obligations of the relevant 
project; 
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(B) shall include a rate covenant, coverage 
requirement, or similar security feature sup-
porting the project obligations; and 
(C) may have a lien on revenues described 
in subparagraph (A), subject to any lien secur-
ing project obligations. 
(5) INTEREST RATE.—The interest rate on a 
secured loan under this section shall be not less than 
the yield on United States Treasury securities of a 
similar maturity to the maturity of the secured loan 
on the date of execution of the loan agreement. 
(6) MATURITY DATE.—The final maturity date 
of a secured loan under this section shall be not 
later than 35 years after the date of substantial 
completion of the relevant project. 
(7) FEES.—The Secretary of the Interior may 
establish fees, in accordance with section 138(b)(2) 
at a level sufficient to cover all or a portion of the 
costs to the Federal Government of making a se-
cured loan under this section. 
(8) NON-FEDERAL SHARE.—The proceeds of a 
secured loan under this section may be used to pay 
any non-Federal share of project costs required if 
the loan is repayable from non-Federal funds. 
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(9) MAXIMUM
FEDERAL
INVOLVEMENT.—The 
total amount of Federal assistance provided for a 
project for which assistance is provided under this 
subtitle from all sources (including this subtitle) 
shall not exceed 80 percent of the total cost of the 
project. 
(c) REPAYMENT.— 
(1) SCHEDULE.—The Secretary of the Interior 
shall establish a repayment schedule for each se-
cured loan provided under this section, based on the 
projected cash flow from project revenues and other 
repayment sources. 
(2) COMMENCEMENT.—Scheduled loan repay-
ment of principal or interest on a secured loan under 
this section shall commence not later than 5 years 
after the date of substantial completion of the 
project, with interest accruing during those 5 years 
and during construction. 
(3) DEFERRED PAYMENTS.— 
(A) AUTHORIZATION.—If, at any time 
after the date of substantial completion of a 
project for which a secured loan is provided 
under this section, the project is unable to gen-
erate sufficient revenues to pay the scheduled 
loan repayments of principal and interest on the 
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secured loan, the Secretary of the Interior may 
allow the obligor, subject to subparagraph (C), 
to add unpaid principal and interest to the out-
standing balance of the secured loan. 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
(i) continue to accrue interest in ac-
cordance with subsection (b)(5) until fully 
repaid; and 
(ii) be scheduled to be amortized over 
the remaining term of the secured loan. 
(C) CRITERIA.— 
(i) IN GENERAL.—Any payment defer-
ral under subparagraph (A) shall be con-
tingent on the project meeting such cri-
teria as the Secretary of the Interior may 
establish. 
(ii) REPAYMENT
STANDARDS.—The 
criteria established under clause (i) shall 
include standards for reasonable assurance 
of repayment. 
(4) PREPAYMENT.— 
(A) USE OF EXCESS REVENUES.—Any ex-
cess revenues that remain after satisfying 
scheduled debt service requirements on the 
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project obligations and secured loan and all de-
posit requirements under the terms of any trust 
agreement, bond resolution, or similar agree-
ment securing project obligations may be ap-
plied annually to prepay a secured loan under 
this section without penalty. 
(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—A secured loan under this section 
may be prepaid at any time without penalty 
from the proceeds of refinancing from non-Fed-
eral funding sources. 
(d) SALE OF SECURED LOANS.— 
(1) IN GENERAL.—Subject to paragraph (2), as 
soon as practicable after the date of substantial 
completion of a project and after providing a notice 
to the obligor, the Secretary of the Interior may sell 
to another entity or reoffer into the capital markets 
a secured loan for a project under this section, if the 
Secretary of the Interior determines that the sale or 
reoffering can be made on favorable terms. 
(2) CONSENT OF OBLIGOR.—In making a sale 
or reoffering under paragraph (1), the Secretary of 
the Interior may not change the original terms and 
conditions of the secured loan without the written 
consent of the obligor. 
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(e) LOAN GUARANTEES.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior may provide a loan guarantee to a lender in lieu 
of making a secured loan under this section, if the 
Secretary of the Interior determines that the budg-
etary cost of the loan guarantee is substantially the 
same as that of a secured loan. 
(2) TERMS.—The terms of a loan guarantee 
provided under this subsection shall be consistent 
with the terms established in this section for a se-
cured loan, except that the rate on the guaranteed 
loan and any prepayment features shall be nego-
tiated between the obligor and the lender, with the 
consent of the Secretary of the Interior. 
SEC. 138. PROGRAM ADMINISTRATION. 
(a) REQUIREMENT.—The Secretary of the Interior 
shall establish a uniform system to service the Federal 
credit instruments made available under this subtitle. 
(b) RECLAMATION LOAN FINANCE CAPITAL RE-
SERVE FUND.— 
(1) ESTABLISHMENT.— 
(A) IN GENERAL.—There is established in 
the Treasury of the United States a fund, to be 
known as the ‘‘Reclamation Loan Finance Cap-
ital Reserve Fund’’. 
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(B) DEPOSITS TO FUND.—The Secretary 
of the Treasury shall deposit in the fund estab-
lished by subparagraph (A) an amount equal to 
the amount of capital reserve fees collected 
under paragraph (2) for each applicable fiscal 
year. 
(C) TREATMENT.—The amounts deposited 
in the fund under subparagraph (B) shall be 
credited as offsetting collections. 
(2) CAPITAL RESERVE FEES.— 
(A) IN GENERAL.—To the extent required 
by appropriations Acts, the Secretary of the In-
terior may assess, collect, and spend capital re-
serve fees at a level that is sufficient to cover 
all or a portion of the costs to the Federal Gov-
ernment of servicing the Federal credit instru-
ments provided under this subtitle, including all 
or a portion of the outlays associated with the 
provision of the Federal credit instruments 
under this subtitle. 
(B) AMOUNT.—The capital reserve fees 
under this paragraph shall be established at 
amounts that will result in the collection, dur-
ing each fiscal year, of an amount that can be 
reasonably expected to equal the outlays associ-
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ated with the provision of the Federal credit in-
struments under this subtitle. 
(c) SERVICER.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior may appoint a financial entity to assist the Sec-
retary in servicing the Federal credit instruments 
provided under this subtitle. 
(2) DUTIES.—A servicer appointed under para-
graph (1) shall act as the agent for the Secretary of 
the Interior. 
(3) FEE.—A servicer appointed under para-
graph (1) shall receive a servicing fee, subject to ap-
proval by the Secretary of the Interior. 
SEC. 139. STATE AND LOCAL PERMITS. 
(a) ESTABLISHMENT OF PILOT PROGRAM.— 
(1) ASSUMPTION OF RESPONSIBILITY.— 
(A) IN GENERAL.—Subject to the provi-
sions of the pilot program established by this 
section, the Secretary of the Interior and a 
State identified pursuant to subsection (b) may 
enter into a written agreement, which may be 
in the form of a memorandum of under-
standing, under which the Secretary of the In-
terior may designate the State as lead agency 
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for purposes of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
(B) PROCEDURAL AND SUBSTANTIVE RE-
QUIREMENTS.—If designated as the lead agency 
under subparagraph (A), the State shall assume 
responsibility under this section, subject to the 
same procedural and substantive requirements 
that would apply if that responsibility were car-
ried out by the Secretary of the Interior. 
(2) PRESERVATION
OF
FEDERAL
RESPONSI-
BILITY AND AUTHORITY.— 
(A) FEDERAL RESPONSIBILITY.—Any re-
sponsibility of the Secretary of the Interior not 
explicitly assumed by the State by written 
agreement under this section shall remain the 
responsibility of the Secretary of the Interior. 
(B) NO EFFECT ON AUTHORITY.—Nothing 
in this section preempts or interferes with any 
power, jurisdiction, responsibility, or authority 
of an agency, other than the Department of the 
Interior, under applicable law (including regula-
tions) with respect to a project. 
(3) PRESERVATION OF FLEXIBILITY.—The Sec-
retary of the Interior may not require a State, as a 
condition of participation and assuming lead agency 
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status in the pilot program under this section, to 
forego project delivery methods that are otherwise 
permissible for projects. 
(b) STATE PARTICIPATION.— 
(1) PARTICIPATING STATES.—The Secretary of 
the Interior shall permit the State of California, and 
not more than 4 additional States, to participate in 
the pilot program under this section, subject to the 
limitations described in paragraph (4). 
(2) APPLICATION.—Not later than 270 days 
after the date of enactment of this Act, the Sec-
retary of the Interior shall amend, as appropriate, 
regulations that establish requirements relating to 
information required to be contained in an applica-
tion of a State to participate in the pilot program 
under this section and to assume lead agency status, 
including, at a minimum— 
(A) the projects or classes of projects for 
which the State anticipates exercising the au-
thority that may be granted under the pilot 
program under this section; 
(B) verification of the financial, regulatory, 
and enforcement resources necessary to carry 
out the authority that may be granted under 
the pilot program under this section; and 
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(C) evidence of the notice and solicitation 
of public comment by the State relating to par-
ticipation of the State in the pilot program 
under this section, including copies of com-
ments received from that solicitation. 
(3) PUBLIC NOTICE.— 
(A) IN GENERAL.—A State that submits 
an application under this subsection shall give 
notice of the intent of the State to participate 
in the pilot program under this section not later 
than 30 days before the date of submission of 
the application. 
(B) METHOD OF NOTICE AND SOLICITA-
TION.—A State shall provide notice and solicit 
public comment under this paragraph by pub-
lishing the complete application of the State in 
accordance with the appropriate public notice 
State law. 
(4) SELECTION
CRITERIA.—The Secretary of 
the Interior may approve the application of a State 
under this section only if— 
(A) the regulatory requirements of para-
graph (2) have been met; 
(B) the Secretary of the Interior deter-
mines that the State has the capability, includ-
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ing financial, regulatory, and enforcement capa-
bility and personnel, to assume the responsi-
bility of a lead agency for the project; and 
(C) the head of the State agency with pri-
mary jurisdiction over water infrastructure mat-
ters enters into a written agreement with the 
Secretary of the Interior described in subsection 
(c). 
(c) WRITTEN AGREEMENT.—A written agreement 
under this section shall— 
(1) be executed by the Governor or the top 
ranking water infrastructure official in the State 
who is charged with responsibility for water infra-
structure construction; 
(2) be in such form as the Secretary of the In-
terior may prescribe; 
(3) provide that the State— 
(A) agrees to assume all or part of the re-
sponsibilities of the Secretary of the Interior de-
scribed in subsection (a), including all respon-
sibilities as a lead agency; 
(B) expressly consents, on behalf of the 
State, to accept the jurisdiction of the Federal 
courts for the compliance, discharge, and en-
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forcement of any responsibility of the Secretary 
of the Interior assumed by the State; 
(C) certifies that State laws (including reg-
ulations) are in effect that authorize the State 
to take the actions necessary to carry out the 
responsibilities being assumed; and 
(D) agrees to maintain the financial re-
sources necessary to carry out the responsibil-
ities being assumed; 
(4) require the State to provide to the Secretary 
of the Interior any information that the Secretary of 
the Interior considers necessary to ensure that the 
State is adequately carrying out the responsibilities 
assigned to the State; 
(5) have a term of not more than 5 years; and 
(6) be renewable. 
(d) JURISDICTION.— 
(1) IN GENERAL.—The United States district 
courts shall have exclusive jurisdiction over any civil 
action against a State for failure to carry out any 
responsibility of the State under this section. 
(2) LEGAL STANDARDS AND REQUIREMENTS.— 
A civil action under paragraph (1) shall be governed 
by the legal standards and requirements that would 
apply in such a civil action against the Secretary of 
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the Interior if the Secretary of the Interior had 
taken the actions in question. 
(3) INTERVENTION.—The Secretary of the Inte-
rior shall have the right to intervene in any action 
described in paragraph (1). 
(e) EFFECT OF ASSUMPTION OF RESPONSIBILITY.— 
A State that assumes responsibility under subsection 
(a)(2) shall be solely responsible and solely liable for car-
rying out, in lieu of the Secretary of the Interior, the re-
sponsibilities assumed under subsection (a), until the pilot 
program is terminated as provided in subsection (h). 
(f) AUDITS.— 
(1) IN GENERAL.—To ensure compliance by a 
State with any agreement of the State under sub-
section (c) (including compliance by the State with 
all Federal laws for which responsibility is assumed 
under subsection (a)(2)), for each State partici-
pating in the pilot program under this section, the 
Secretary of the Interior shall conduct— 
(A) semiannual audits during each of the 
first 2 years of State participation; and 
(B) annual audits during of the third and 
fourth years of State participation. 
(2) PUBLIC AVAILABILITY AND COMMENT.— 
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(A) IN
GENERAL.—An audit conducted 
under paragraph (1) shall be made available to 
the public for comment. 
(B) RESPONSE.—Not later than 60 days 
after the date on which the period for public 
comment ends, the Secretary of the Interior 
shall respond to public comments received 
under subparagraph (A). 
(g) MONITORING.—After the fourth year of the par-
ticipation of a State in the pilot program, the Secretary 
of the Interior shall monitor compliance by the State with 
the written agreement, including the provision by the 
State of financial resources to carry out the written agree-
ment. 
(h) TERMINATION.— 
(1) TERMINATION BY SECRETARY OF THE IN-
TERIOR.—The Secretary of the Interior may termi-
nate the participation of any State in the pilot pro-
gram if— 
(A) the Secretary of the Interior deter-
mines that the State is not adequately carrying 
out the responsibilities assigned to the State; 
(B) the Secretary of the Interior provides 
to the State— 
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emcdonald on DSK67QTVN1PROD with BILLS
(i) notification of the determination of 
noncompliance; and 
(ii) a period of at least 30 days during 
which to take such corrective action as the 
Secretary of the Interior determines is nec-
essary to comply with the applicable agree-
ment; and 
(C) the State, after the notification and 
period provided under subparagraph (B), fails 
to take satisfactory corrective action, as deter-
mined by Secretary of the Interior. 
(2) TERMINATION BY STATE.—The State may 
terminate the participation of the State in the pilot 
program at any time by providing to the Secretary 
of the Interior a notice by not later than the date 
that is 90 days before the date of termination, and 
subject to such terms and conditions as the Sec-
retary of the Interior may provide. 
(i) LIMITATIONS ON AGREEMENTS.—Nothing in this 
section or pilot program— 
(1) authorizes a State to assume any rule-
making authority of the Secretary of the Interior 
under any Federal law; 
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(2) relieves any recipient of the assistance of 
any obligation to obtain any other required State or 
local permit or approval with respect to the project; 
(3) limits the right of any unit of State or local 
government to approve or regulate any rate of re-
turn on private equity invested in the project; or 
(4) otherwise supersedes any State or local law 
(including any regulation) applicable to the construc-
tion or operation of the project. 
SEC. 140. REGULATIONS. 
The Secretary of the Interior may promulgate such 
regulations as the Secretary of the Interior determines to 
be appropriate to carry out this subtitle. 
SEC. 141. FUNDING. 
(a) IN GENERAL.—There is authorized to be appro-
priated to the Secretary of the Interior to carry out this 
subtitle $200,000,000. 
(b) OFFSET REQUIRED.—No funds made available 
under this section may be used to provide financial assist-
ance under this subtitle unless sufficient funds have been 
appropriated to offset any decrease in Federal revenue re-
sulting from the use by any unit of State or local govern-
ment of proceeds of any obligation— 
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(1) the interest on which is exempt from the 
tax imposed under chapter 1 of the Internal Rev-
enue Code of 1986; or 
(2) with respect to which credit is allowable 
under subpart I or J of part IV of subchapter A of 
chapter 1 of that Code. 
(c) ADMINISTRATIVE COSTS.—Of the funds made 
available to carry out this subtitle, the Secretary of the 
Interior may use for the administration of this subtitle not 
more than $2,200,000 for each of fiscal years 2016 
through 2020. 
(d) LIMITATION.—Neither the Secretary of the Inte-
rior nor the Secretary of Commerce shall enter into a con-
tract with, or provide Federal funds or other financial as-
sistance in the form of a loan, loan guarantee, annual pay-
ment, or any other form of credit enhancement to a recipi-
ent under this Act without first obtaining adequate assur-
ance from the contractor or recipient that the require-
ments of section 513 of the Federal Water Pollution Con-
trol Act (33 U.S.C. 1372) shall be applied in the same 
manner they are applied to construction of treatment 
works carried out in whole or in part with assistance made 
available by a State water pollution control revolving fund 
as authorized by title VI of that Act (33 U.S.C. 1381 et 
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seq.) under title II of division E of Public Law 112–74 
(125 Stat. 1020). 
TITLE II—LISTED SPECIES AND 
WILDLIFE 
SEC. 201. ACTIONS TO BENEFIT ENDANGERED FISH POPU-
LATIONS. 
(a) FINDINGS.—Congress finds that— 
(1) minimizing or eliminating stressors to fish 
populations and their habitat in an efficient and 
structured manner is a key aspect of a fish recovery 
strategy; 
(2) functioning, diverse, and interconnected 
habitats are necessary for a species to be viable; and 
(3) providing for increased fish habitat may not 
only allow for a more robust fish recovery, but also 
reduce impacts to water supplies. 
(b) ACTIONS FOR BENEFIT OF ENDANGERED SPE-
CIES.—There is authorized to be appropriated the fol-
lowing amounts: 
(1) $35,000,000 for the Secretary of Com-
merce, through the Administrator of the National 
Oceanic and Atmospheric Administration, to carry 
out the following activities in accordance with the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et 
seq.): 
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100 
(A) Gravel and rearing area additions and 
habitat restoration to the Sacramento River to 
benefit Chinook salmon and steelhead trout. 
(B) Scientifically improved and increased 
real-time monitoring to inform real-time oper-
ations of Shasta and related Central Valley 
Project facilities, and alternative methods, mod-
els, and equipment to improve temperature 
modeling and related forecasted information for 
purposes of predicting impacts to salmon and 
salmon habitat as a result of water manage-
ment at Shasta. 
(C) Methods to improve the Delta salvage 
systems, including alternative methods to rede-
posit salvaged salmon smolts and other fish 
from the Delta in a manner that reduces preda-
tion losses. 
(2) $6,000,000 for the Secretary of the Interior 
to conduct the Delta smelt distribution study ref-
erenced in section 301. 
(c) COMMENCEMENT.—If the Administrator of the 
National Oceanic and Atmospheric Administration deter-
mines that a proposed activity is feasible and beneficial 
for protecting and recovering a fish population, the Ad-
ministrator shall commence implementation of the activity 
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101 
by not later than 1 year after the date of enactment of 
this Act. 
(d) CONSULTATION.—The Administrator shall take 
such steps as are necessary to partner with, and coordi-
nate the efforts of, the Department of the Interior, the 
Department of Commerce, and other relevant Federal de-
partments and agencies to ensure that all Federal reviews, 
analyses, opinions, statements, permits, licenses, and 
other approvals or decisions required under Federal law 
are completed on an expeditious basis, consistent with 
Federal law. 
(e) TRAP AND BARGE PILOT PROGRAM.— 
(1) IN
GENERAL.—The Department of Com-
merce, in collaboration with the Department of the 
Interior, the California Department of Fish and 
Wildlife, applicable water agencies, and other inter-
ested parties, shall design, permit, implement, and 
evaluate a pilot program to test the efficacy of an 
experimental trap and barge program to improve 
survival of juvenile salmonids emigrating from the 
San Joaquin watershed though the Delta. 
(2) PLAN.— 
(A) WORKING GROUP.—Not later than 30 
days after the date of enactment of this Act, 
the Assistant Administrator and the Commis-
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sioner shall convene a working group, to be 
comprised of representatives of relevant agen-
cies and other interested parties, to develop and 
execute a plan for the design, budgeting, imple-
mentation, and evaluation of the pilot program 
under this subsection, using such existing ex-
pertise regarding trap and barge programs as 
may be available. 
(B) REQUIREMENTS.—The plan under this 
paragraph shall— 
(i) include a schedule and budget for 
the pilot program; and 
(ii) identify the responsible parties for 
each element of the program. 
(3) IMPLEMENTATION.—The Assistant Admin-
istrator and the Commissioner shall seek to com-
mence implementation of the pilot program under 
this subsection during calendar year 2016, if prac-
ticable. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $4,000,000. 
(f) CONSERVATION FISH HATCHERIES.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretaries of 
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103 
the Interior and Commerce, in coordination with the 
Director of the California Department of Fish and 
Wildlife, shall develop and implement as necessary 
the expanded use of conservation hatchery programs 
to enhance, supplement, and rebuild Delta smelt and 
Endangered Species Act-listed fish species under the 
smelt and salmonid biological opinions. 
(2) REQUIREMENTS.—The conservation hatch-
ery programs established under paragraph (1) and 
the associated hatchery and genetic management 
plans shall be designed— 
(A) to benefit, enhance, support, and oth-
erwise recover naturally spawning fish species 
to the point where the measures provided under 
the Endangered Species Act of 1973 (16 U.S.C. 
1531 et seq.) are no longer necessary; and 
(B) to minimize adverse effects to Central 
Valley Project and State Water Project oper-
ations. 
(3) PRIORITY; COOPERATIVE AGREEMENTS.—In 
implementing this section, the Secretaries of the In-
terior and Commerce— 
(A) shall give priority to existing and pro-
spective hatchery programs and facilities within 
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141 
of Fish and Wildlife in connection with the implementa-
tion of this Act regarding potential impacts to any consist-
ency determination for operations of the State Water 
Project issued pursuant to section 2080.1 of the California 
Fish and Game Code. 
(b) ADDITIONAL YIELD.—If, as a result of the appli-
cation of this Act, the California Department of Fish and 
Wildlife— 
(1) determines that operations of the State 
Water Project are inconsistent with the consistency 
determinations issued pursuant to California Fish 
and Game Code section 2080.1 for operations of the 
State Water Project; or 
(2) requires take authorization under California 
Fish and Game Code section 2081 for operation of 
the State Water Project, 
in a manner that directly or indirectly results in reduced 
water supply to the State Water Project as compared with 
the water supply available under the smelt biological opin-
ion and the salmonid biological opinion, and as a result, 
Central Valley Project yield is greater than it otherwise 
would have been, then that additional yield shall be made 
available to the State Water Project for delivery to State 
Water Project contractors to offset the reduced water sup-
ply, provided that if it is necessary to reduce water sup-
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149 
(A) modify any provision of a water service 
contract that addresses municipal or industrial 
water shortage policies of the Secretaries of the 
Interior and Commerce; 
(B) affect or limit the authority of the Sec-
retaries of the Interior and Commerce— 
(i) to adopt or modify municipal and 
industrial water shortage policies; or 
(ii) to implement a municipal or in-
dustrial water shortage policy; 
(C) constrain, govern, or affect, directly or 
indirectly, the operations of the American River 
Division of the Central Valley Project or any 
deliveries from that Division or a unit or facility 
of that Division; or 
(D) affect any allocation to a Central Val-
ley Project municipal or industrial water service 
contractor by increasing or decreasing alloca-
tions to the contractor, as compared to the allo-
cation the contractor would have received ab-
sent subsection (b). 
(3) OTHER
CONTRACTORS.—Nothing in sub-
section (b) shall— 
(A) affect the priority of any individual or 
entity with a Sacramento River settlement con-
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