created for the projects proposed in the feasibility 
studies under this section. 
SEC. 402. TEMPERANCE FLAT. 
(a) DEFINITIONS.—For the purposes of this section: 
(1) PROJECT.—The term ‘‘Project’’ means the 
Temperance Flat Reservoir Project on the Upper San 
Joaquin River. 
(2) RMP.—The term ‘‘RMP’’ means the docu-
ment titled ‘‘Bakersfield Field Office, Record of Deci-
sion and Approved Resource Management Plan,’’ 
dated December 2014. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(b) APPLICABILITY OF RMP.—The RMP and findings 
related thereto shall have no effect on or applicability to 
the Secretary’s determination of feasibility of, or on any 
findings or environmental review documents related to— 
(1) the Project; or 
(2) actions taken by the Secretary pursuant to 
section 103(d)(1)(A)(ii)(II) of the Bay-Delta Author-
ization Act (title I of Public Law 108–361). 
(c) DUTIES OF SECRETARY UPON DETERMINATION OF 
FEASIBILITY.—If the Secretary finds the Project to be fea-
sible, the Secretary shall manage the land recommended in 
the RMP for designation under the Wild and Scenic Rivers 
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Act (16 U.S.C. 1271 et seq.) in a manner that does not 
impede any environmental reviews, preconstruction, con-
struction, or other activities of the Project, regardless of 
whether or not the Secretary submits any official rec-
ommendation to Congress under the Wild and Scenic Rivers 
Act. 
(d) RESERVED WATER RIGHTS.—Effective December 
22, 2014, there shall be no Federal reserved water rights 
to any segment of the San Joaquin River related to the 
Project as a result of any designation made under the Wild 
and Scenic Rivers Act (16 U.S.C. 1271 et seq.). 
SEC. 403. CALFED STORAGE ACCOUNTABILITY. 
If the Secretary of the Interior fails to provide the fea-
sibility studies described in section 401 to the appropriate 
committees of the House of Representatives and the Senate 
by the times prescribed, the Secretary shall notify each com-
mittee chair individually in person on the status of each 
project once a month until the feasibility study for that 
project is provided to Congress. 
SEC. 404. WATER STORAGE PROJECT CONSTRUCTION. 
(a) PARTNERSHIP AND AGREEMENTS.—The Secretary 
of the Interior, acting through the Commissioner of the Bu-
reau of Reclamation, may partner or enter into an agree-
ment on the water storage projects identified in section 
103(d)(1) of the Water Supply Reliability and Environ-
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mental Improvement Act (Public Law 108–361) (and Acts 
supplemental and amendatory to the Act) with local joint 
powers authorities formed pursuant to State law by irriga-
tion districts and other local water districts and local gov-
ernments within the applicable hydrologic region, to ad-
vance those projects. 
(b) AUTHORIZATION FOR PROJECT.—If the Secretary 
determines a project described in section 402(a)(1) and (2) 
is feasible, the Secretary is authorized to carry out the 
project in a manner that is substantially in accordance 
with the recommended plan, and subject to the conditions 
described in the feasibility study, provided that no Federal 
funding shall be used to construct the project. 
TITLE V—WATER RIGHTS 
PROTECTIONS 
SEC. 501. OFFSET FOR STATE WATER PROJECT. 
(a) IMPLEMENTATION IMPACTS.—The Secretary of the 
Interior shall confer with the California Department of Fish 
and Wildlife in connection with the implementation of this 
Act on potential impacts to any consistency determination 
for operations of the State Water Project issued pursuant 
to California Fish and Game Code section 2080.1. 
(b) ADDITIONAL YIELD.—If, as a result of the applica-
tion of this Act, the California Department of Fish and 
Wildlife— 
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(1) revokes the consistency determinations pursu-
ant to California Fish and Game Code section 2080.1 
that are applicable to the State Water Project; 
(2) amends or issues one or more new consist-
ency determinations pursuant to California Fish and 
Game Code section 2080.1 in a manner that directly 
or indirectly results in reduced water supply to the 
State Water Project as compared with the water sup-
ply available under the smelt biological opinion and 
the salmonid biological opinion; or 
(3) requires take authorization under California 
Fish and Game Code section 2081 for operation of the 
State Water Project in a manner that directly or in-
directly results in reduced water supply to the State 
Water Project as compared with the water supply 
available under the smelt biological opinion and the 
salmonid biological opinion, and as a consequence of 
the Department’s action, Central Valley Project yield 
is greater than it would have been absent the Depart-
ment’s actions, then that additional yield shall be 
made available to the State Water Project for delivery 
to State Water Project contractors to offset losses re-
sulting from the Department’s action. 
(c) NOTIFICATION RELATED TO ENVIRONMENTAL PRO-
TECTIONS.—The Secretary of the Interior shall immediately 
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notify the Director of the California Department of Fish 
and Wildlife in writing if the Secretary of the Interior de-
termines that implementation of the smelt biological opin-
ion and the salmonid biological opinion consistent with this 
Act reduces environmental protections for any species cov-
ered by the opinions. 
SEC. 502. AREA OF ORIGIN PROTECTIONS. 
(a) IN GENERAL.—The Secretary of the Interior is di-
rected, in the operation of the Central Valley Project, to ad-
here to California’s water rights laws governing water 
rights priorities and to honor water rights senior to those 
held by the United States for operation of the Central Valley 
Project, regardless of the source of priority, including any 
appropriative water rights initiated prior to December 19, 
1914, as well as water rights and other priorities perfected 
or to be perfected pursuant to California Water Code Part 
2 of Division 2. Article 1.7 (commencing with section 1215 
of chapter 1 of part 2 of division 2, sections 10505, 10505.5, 
11128, 11460, 11461, 11462, and 11463, and sections 12200 
to 12220, inclusive). 
(b) DIVERSIONS.—Any action undertaken by the Sec-
retary of the Interior and the Secretary of Commerce pursu-
ant to both this Act and section 7 of the Endangered Species 
Act of 1973 (16 U.S.C. 1531 et seq.) that requires that di-
versions from the Sacramento River or the San Joaquin 
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River watersheds upstream of the Delta be bypassed shall 
not be undertaken in a manner that alters the water rights 
priorities established by California law. 
(c) ENDANGERED SPECIES ACT.—Nothing in this title 
alters the existing authorities provided to and obligations 
placed upon the Federal Government under the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.), as amended. 
(d) CONTRACTS.—With respect to individuals and en-
tities with water rights on the Sacramento River, the man-
dates of this section may be met, in whole or in part, 
through a contract with the Secretary of the Interior exe-
cuted pursuant to section 14 of Public Law 76–260; 53 
Stat. 1187 (43 U.S.C. 389) that is in conformance with 
the Sacramento River Settlement Contracts renewed by the 
Secretary of the Interior in 2005. 
SEC. 503. NO REDIRECTED ADVERSE IMPACTS. 
(a) IN GENERAL.—The Secretary of the Interior shall 
ensure that, except as otherwise provided for in a water 
service or repayment contract, actions taken in compliance 
with legal obligations imposed pursuant to or as a result 
of this Act, including such actions under section 7 of the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 
and other applicable Federal and State laws, shall not di-
rectly or indirectly— 
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(1) result in the involuntary reduction of water 
supply or fiscal impacts to individuals or districts 
who receive water from either the State Water Project 
or the United States under water rights settlement 
contracts, exchange contracts, water service contracts, 
repayment contracts, or water supply contracts; or 
(2) cause redirected adverse water supply or fis-
cal impacts to those within the Sacramento River wa-
tershed, the San Joaquin River watershed or the State 
Water Project service area. 
(b) COSTS.—To the extent that costs are incurred sole-
ly pursuant to or as a result of this Act and would not 
otherwise have been incurred by any entity or public or 
local agency or subdivision of the State of California, such 
costs shall not be borne by any such entity, agency, or sub-
division of the State of California, unless such costs are in-
curred on a voluntary basis. 
(c) RIGHTS
AND OBLIGATIONS NOT MODIFIED
OR 
AMENDED.—Nothing in this Act shall modify or amend the 
rights and obligations of the parties to any existing— 
(1) water service, repayment, settlement, pur-
chase, or exchange contract with the United States, 
including the obligation to satisfy exchange contracts 
and settlement contracts prior to the allocation of any 
other Central Valley Project water; or 
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(2) State Water Project water supply or settle-
ment contract with the State. 
SEC. 504. ALLOCATIONS FOR SACRAMENTO VALLEY CON-
TRACTORS. 
(a) ALLOCATIONS.— 
(1) IN GENERAL.—Subject to paragraph (2) and 
subsection (b), the Secretary of the Interior is di-
rected, in the operation of the Central Valley Project, 
to allocate water provided for irrigation purposes to 
existing Central Valley Project agricultural water 
service contractors within the Sacramento River Wa-
tershed in compliance with the following: 
(A) Not less than 100 percent of their con-
tract quantities in a ‘‘Wet’’ year. 
(B) Not less than 100 percent of their con-
tract quantities in an ‘‘Above Normal’’ year. 
(C) Not less than 100 percent of their con-
tract quantities in a ‘‘Below Normal’’ year that 
is preceded by an ‘‘Above Normal’’ or a ‘‘Wet’’ 
year. 
(D) Not less than 50 percent of their con-
tract quantities in a ‘‘Dry’’ year that is preceded 
by a ‘‘Below Normal,’’ an ‘‘Above Normal,’’ or a 
‘‘Wet’’ year. 
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(E) In all other years not identified herein, 
the allocation percentage for existing Central 
Valley Project agricultural water service contrac-
tors within the Sacramento River Watershed 
shall not be less than twice the allocation per-
centage to south-of-Delta Central Valley Project 
agricultural water service contractors, up to 100 
percent; provided, that nothing herein shall pre-
clude an allocation to existing Central Valley 
Project agricultural water service contractors 
within the Sacramento River Watershed that is 
greater than twice the allocation percentage to 
south-of-Delta Central Valley Project agricul-
tural water service contractors. 
(2) CONDITIONS.—The Secretary’s actions under 
paragraph (a) shall be subject to— 
(A) the priority of individuals or entities 
with Sacramento River water rights, including 
those with Sacramento River Settlement Con-
tracts, that have priority to the diversion and 
use of Sacramento River water over water rights 
held by the United States for operations of the 
Central Valley Project; 
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(B) the United States obligation to make a 
substitute supply of water available to the San 
Joaquin River Exchange Contractors; and 
(C) the Secretary’s obligation to make water 
available to managed wetlands pursuant to sec-
tion 3406(d) of the Central Valley Project Im-
provement Act (Public Law 102–575). 
(b) PROTECTION OF MUNICIPAL AND INDUSTRIAL SUP-
PLIES.—Nothing in subsection (a) shall be deemed to— 
(1) modify any provision of a water service con-
tract that addresses municipal and industrial water 
shortage policies of the Secretary; 
(2) affect or limit the authority of the Secretary 
to adopt or modify municipal and industrial water 
shortage policies; 
(3) affect or limit the authority of the Secretary 
to implement municipal and industrial water short-
age policies; or 
(4) affect allocations to Central Valley Project 
municipal and industrial contractors pursuant to 
such policies. 
Neither subsection (a) nor the Secretary’s implementation 
of subsection (a) shall constrain, govern or affect, directly, 
the operations of the Central Valley Project’s American 
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River Division or any deliveries from that Division, its 
units or facilities. 
(c) NO EFFECT ON ALLOCATIONS.—This section shall 
not— 
(1) affect the allocation of water to Friant Divi-
sion contractors; or 
(2) result in the involuntary reduction in con-
tract water allocations to individuals or entities with 
contracts to receive water from the Friant Division. 
(d) PROGRAM FOR WATER RESCHEDULING.—The Sec-
retary of the Interior shall develop and implement a pro-
gram, not later than 1 year after the date of the enactment 
of this Act, to provide for the opportunity for existing Cen-
tral Valley Project agricultural water service contractors 
within the Sacramento River Watershed to reschedule 
water, provided for under their Central Valley Project water 
service contracts, from one year to the next. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘existing Central Valley Project ag-
ricultural water service contractors within the Sac-
ramento River Watershed’’ means water service con-
tractors within the Shasta, Trinity, and Sacramento 
River Divisions of the Central Valley Project, that 
have a water service contract in effect, on the date of 
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the enactment of this section, that provides water for 
irrigation. 
(2) The year type terms used in subsection (a) 
have the meaning given those year types in the Sac-
ramento Valley Water Year Type (40–30–30) Index. 
SEC. 505. EFFECT ON EXISTING OBLIGATIONS. 
Nothing in this Act preempts or modifies any existing 
obligation of the United States under Federal reclamation 
law to operate the Central Valley Project in conformity with 
State law, including established water rights priorities. 
TITLE VI—MISCELLANEOUS 
SEC. 601. AUTHORIZED SERVICE AREA. 
(a) IN GENERAL.—The authorized service area of the 
Central Valley Project authorized under the Central Valley 
Project Improvement Act (Public Law 102–575; 106 Stat. 
4706) shall include the area within the boundaries of the 
Kettleman City Community Services District, California, 
as in existence on the date of enactment of this Act. 
(b) LONG-TERM CONTRACT.— 
(1) IN GENERAL.—Notwithstanding the Central 
Valley Project Improvement Act (Public Law 102– 
575; 106 Stat. 4706) and subject to paragraph (2), 
the Secretary of the Interior, in accordance with the 
Federal reclamation laws, shall enter into a long-term 
contract with the Kettleman City Community Serv-
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ices District, California, under terms and conditions 
mutually agreeable to the parties, for the delivery of 
up to 900 acre-feet of Central Valley Project water for 
municipal and industrial use. 
(2) LIMITATION.—Central Valley Project water 
deliveries authorized under the contract entered into 
under paragraph (1) shall be limited to the minimal 
quantity necessary to meet the immediate needs of the 
Kettleman City Community Services District, Cali-
fornia, in the event that local supplies or State Water 
Project allocations are insufficient to meet those 
needs. 
(c) PERMIT.—The Secretary shall apply for a permit 
with the State for a joint place of use for water deliveries 
authorized under the contract entered into under subsection 
(b) with respect to the expanded service area under sub-
section (a), consistent with State law. 
(d) ADDITIONAL COSTS.—If any additional infra-
structure, water treatment, or related costs are needed to 
implement this section, those costs shall be the responsibility 
of the non-Federal entity. 
SEC. 602. OVERSIGHT BOARD FOR RESTORATION FUND. 
(a) PLAN; ADVISORY BOARD.—Section 3407 of the 
Central Valley Project Improvement Act (Public Law 102– 
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575; 106 Stat. 4726) is amended by adding at the end the 
following: 
‘‘(g) PLAN ON EXPENDITURE OF FUNDS.— 
‘‘(1) IN GENERAL.—For each fiscal year, the Sec-
retary, in consultation with the Advisory Board, shall 
submit to Congress a plan for the expenditure of all 
of the funds deposited into the Restoration Fund dur-
ing the preceding fiscal year. 
‘‘(2) CONTENTS.—The plan shall include an 
analysis of the cost-effectiveness of each expenditure. 
‘‘(h) ADVISORY BOARD.— 
‘‘(1) ESTABLISHMENT.—There is established the 
Restoration Fund Advisory Board (referred to in this 
section as the ‘Advisory Board’), which shall be com-
posed of 11 members appointed by the Secretary. 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN GENERAL.—The Secretary shall ap-
point members to the Advisory Board that rep-
resent the various Central Valley Project stake-
holders, of whom— 
‘‘(i) 4 members shall be agricultural 
users of the Central Valley Project, includ-
ing at least one agricultural user from 
north-of-the-Delta and one agricultural user 
from south-of-the-Delta; 
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‘‘(ii) 2 members shall be municipal 
and industrial users of the Central Valley 
Project, including one municipal and in-
dustrial user from north-of-the-Delta and 
one municipal and industrial user from 
south-of-the-Delta; 
‘‘(iii) 3 members shall be power con-
tractors of the Central Valley Project, in-
cluding at least one power contractor from 
north-of-the-Delta and from south-of-the- 
Delta; 
‘‘(iv) 1 member shall be a representa-
tive of a Federal national wildlife refuge 
that contracts for Central Valley Project 
water supplies with the Bureau of Reclama-
tion; and 
‘‘(v) 1 member shall have expertise in 
the economic impacts of the changes to 
water operations. 
‘‘(B) OBSERVER.—The Secretary and the 
Secretary of Commerce may each designate a 
representative to act as an observer of the Advi-
sory Board. 
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‘‘(C) CHAIR.—The Secretary shall appoint 
1 of the members described in subparagraph (A) 
to serve as Chair of the Advisory Board. 
‘‘(3) TERMS.—The term of each member of the 
Advisory Board shall be 4 years. 
‘‘(4) DATE
OF
APPOINTMENTS.—The appoint-
ment of a member of the Panel shall be made not 
later than— 
‘‘(A) the date that is 120 days after the date 
of enactment of this Act; or 
‘‘(B) in the case of a vacancy on the Panel 
described in subsection (c)(2), the date that is 
120 days after the date on which the vacancy oc-
curs. 
‘‘(5) VACANCIES.— 
‘‘(A) IN GENERAL.—A vacancy on the Panel 
shall be filled in the manner in which the origi-
nal appointment was made and shall be subject 
to any conditions that applied with respect to 
the original appointment. 
‘‘(B) FILLING UNEXPIRED TERM.—An indi-
vidual chosen to fill a vacancy shall be ap-
pointed for the unexpired term of the member re-
placed. 
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‘‘(C) EXPIRATION OF TERMS.—The term of 
any member shall not expire before the date on 
which the successor of the member takes office. 
‘‘(6) REMOVAL.—A member of the Panel may be 
removed from office by the Secretary of the Interior. 
‘‘(7) FEDERAL ADVISORY COMMITTEE ACT.—The 
Panel shall not be subject to the requirements of the 
Federal Advisory Committee Act. 
‘‘(8) DUTIES.—The duties of the Advisory Board 
are— 
‘‘(A) to meet not less frequently than semi-
annually to develop and make recommendations 
to the Secretary regarding priorities and spend-
ing levels on projects and programs carried out 
under this title; 
‘‘(B) to ensure that any advice given or rec-
ommendation made by the Advisory Board re-
flects the independent judgment of the Advisory 
Board; 
‘‘(C) not later than December 31, 2015, and 
annually thereafter, to submit to the Secretary 
and Congress the recommendations under sub-
paragraph (A); and 
‘‘(D) not later than December 31, 2015, and 
biennially thereafter, to submit to Congress de-
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tails of the progress made in achieving the ac-
tions required under section 3406. 
‘‘(9) ADMINISTRATION.—With the consent of the 
appropriate agency head, the Advisory Board may 
use the facilities and services of any Federal agency. 
‘‘(10) COOPERATION AND ASSISTANCE.— 
‘‘(A) PROVISION
OF
INFORMATION.—Upon 
request of the Panel Chair for information or as-
sistance to facilitate carrying out this section, 
the Secretary of the Interior shall promptly pro-
vide such information, unless otherwise prohib-
ited by law. 
‘‘(B) SPACE
AND
ASSISTANCE.—The Sec-
retary of the Interior shall provide the Panel 
with appropriate and adequate office space, to-
gether with such equipment, office supplies, and 
communications facilities and services as may be 
necessary for the operation of the Panel, and 
shall provide necessary maintenance services for 
such offices and the equipment and facilities lo-
cated therein.’’. 
SEC. 603. WATER SUPPLY ACCOUNTING. 
(a) IN GENERAL.—All Central Valley Project water, 
except Central Valley Project water released pursuant to 
U.S. Department of the Interior Record of Decision, Trinity 
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River Mainstem Fishery Restoration Final Environmental 
Impact Statement/Environmental Impact Report dated De-
cember 2000 used to implement an action undertaken for 
a fishery beneficial purpose that was not imposed by terms 
and conditions existing in licenses, permits, and other 
agreements pertaining to the Central Valley Project under 
applicable State or Federal law existing on October 30, 
1992, shall be credited to the quantity of Central Valley 
Project yield dedicated and managed under this section; 
provided, that nothing herein shall affect the Secretary of 
the Interior’s duty to comply with any otherwise lawful re-
quirement imposed on operations of the Central Valley 
Project under any provision of Federal or State law. 
(b) RECLAMATION POLICIES AND ALLOCATIONS.—Rec-
lamation policies and allocations shall not be based upon 
any premise or assumption that Central Valley Project con-
tract supplies are supplemental or secondary to any other 
contractor source of supply. 
SEC. 604. IMPLEMENTATION OF WATER REPLACEMENT 
PLAN. 
(a) IN GENERAL.—Not later than October 1, 2016, the 
Secretary of the Interior shall update and implement the 
plan required by section 3408(j) of title XXXIV of Public 
Law 102–575. The Secretary shall notify the Congress an-
nually describing the progress of implementing the plan re-
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quired by section 3408(j) of title XXXIV of Public Law 
102–575. 
(b) POTENTIAL AMENDMENT.—If the plan required in 
subsection (a) has not increased the Central Valley Project 
yield by 800,000 acre-feet within 5 years after the enact-
ment of this Act, then section 3406 of the Central Valley 
Project Improvement Act (title XXXIV of Public Law 102– 
575) is amended as follows: 
(1) In subsection (b)— 
(A) by amending paragraph (2)(C) to read: 
‘‘(C) If by March 15, 2021, and any year 
thereafter the quantity of Central Valley Project 
water forecasted to be made available to all 
water service or repayment contractors of the 
Central Valley Project is below 50 percent of the 
total quantity of water to be made available 
under said contracts, the quantity of Central 
Valley Project yield dedicated and managed for 
that year under this paragraph shall be reduced 
by 25 percent.’’. 
SEC. 605. NATURAL AND ARTIFICIALLY SPAWNED SPECIES. 
After the date of the enactment of this title, and regard-
less of the date of listing, the Secretaries of the Interior and 
Commerce shall not distinguish between natural-spawned 
and hatchery-spawned or otherwise artificially propagated 
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strains of a species in making any determination under the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 
that relates to any anadromous or pelagic fish species that 
resides for all or a portion of its life in the Sacramento- 
San Joaquin Delta or rivers tributary thereto. 
SEC. 606. TRANSFER THE NEW MELONES UNIT, CENTRAL 
VALLEY 
PROJECT 
TO 
INTERESTED 
PRO-
VIDERS. 
(a) DEFINITIONS.—For the purposes of this section, the 
following terms apply: 
(1) INTERESTED LOCAL WATER AND POWER PRO-
VIDERS.—The term ‘‘interested local water and power 
providers’’ includes the Calaveras County Water Dis-
trict, Calaveras Public Power Agency, Central San 
Joaquin Water Conservation District, Oakdale Irriga-
tion District, Stockton East Water District, South 
San Joaquin Irrigation District, Tuolumne Utilities 
District, Tuolumne Public Power Agency, and Union 
Public Utilities District. 
(2) NEW
MELONES
UNIT, 
CENTRAL
VALLEY 
PROJECT.—The term ‘‘New Melones Unit, Central 
Valley Project’’ means all Federal reclamation 
projects located within or diverting water from or to 
the watershed of the Stanislaus and San Joaquin riv-
ers and their tributaries as authorized by the Act of 
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August 26, 1937 (50 Stat. 850), and all Acts amend-
atory or supplemental thereto, including the Act of 
October 23, 1962 (76 Stat. 1173). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(b) NEGOTIATIONS.—Notwithstanding any other pro-
vision of law, not later than 180 days after the date of the 
enactment of this Act, the Secretary shall enter into negotia-
tions with interested local water and power providers for 
the transfer ownership, control, and operation of the New 
Melones Unit, Central Valley Project to interested local 
water and power providers within the State of California. 
(c) TRANSFER.—The Secretary shall transfer the New 
Melones Unit, Central Valley Project in accordance with an 
agreement reached pursuant to negotiations conducted 
under subsection (b). 
(d) NOTIFICATION.—Not later than 360 days after the 
date of the enactment of this Act, and every 6 months there-
after, the Secretary shall notify the appropriate committees 
of the House of Representatives and the Senate— 
(1) if an agreement is reached pursuant to nego-
tiations conducted under subsection (b), the terms of 
that agreement; 
(2) of the status of formal discussions with inter-
ested local water and power providers for the transfer 
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156 
(3) CONTRACT
REQUIREMENTS.—The following 
shall apply with regard to all repayment contracts 
under subsection (c)(1) of section 9 of that Act (53 
Stat. 1195) in effect on the date of enactment of this 
Act at the request of the contractor, and all contracts 
converted pursuant to paragraph (1)(B): 
(A) Provide for the repayment in lump sum 
of the remaining construction costs identified in 
water project specific municipal and industrial 
rate repayment schedules, as adjusted to reflect 
payments not reflected in such schedule, and 
properly assignable for ultimate return by the 
contractor. An estimate of the remaining con-
struction costs, as adjusted, shall be provided by 
the Secretary to the contractor no later than 90 
days after receipt of request of contractor. 
(B) The contract shall require that construc-
tion costs or other capitalized costs incurred 
after the effective date of the contract or not re-
flected in the rate schedule referenced in subpara-
graph (A), and properly assignable to such con-
tractor, shall be repaid in not more than 5 years 
after notification of the allocation if such 
amount is a result of a collective annual alloca-
tion of capital costs to the contractors exercising 
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