H. R. 146—367 
Authorization and Adjustment Act of 1992 (Public Law 102–575; 
106 Stat. 4721, 4727) and payments made pursuant to paragraph 
16(b)(3) of the Settlement and subsection (c)(1)(B) shall be the 
limitation of such entities’ direct financial contribution to the Settle-
ment, subject to the terms and conditions of paragraph 21 of the 
Settlement. 
(e) NO ADDITIONAL EXPENDITURES REQUIRED.—Nothing in this 
part shall be construed to require a Federal official to expend 
Federal funds not appropriated by Congress, or to seek the appro-
priation of additional funds by Congress, for the implementation 
of the Settlement. 
(f) REACH 4B.— 
(1) STUDY.— 
(A) IN GENERAL.—In accordance with the Settlement 
and the memorandum of understanding executed pursuant 
to paragraph 6 of the Settlement, the Secretary shall con-
duct a study that specifies— 
(i) the costs of undertaking any work required 
under paragraph 11(a)(3) of the Settlement to increase 
the capacity of reach 4B prior to reinitiation of Restora-
tion Flows; 
(ii) the impacts associated with reinitiation of such 
flows; and 
(iii) measures that shall be implemented to miti-
gate impacts. 
(B) DEADLINE.—The study under subparagraph (A) 
shall be completed prior to restoration of any flows other 
than Interim Flows. 
(2) REPORT.— 
(A) IN
GENERAL.—The Secretary shall file a report 
with Congress not later than 90 days after issuing a deter-
mination, as required by the Settlement, on whether to 
expand channel conveyance capacity to 4500 cubic feet 
per second in reach 4B of the San Joaquin River, or use 
an alternative route for pulse flows, that— 
(i) explains whether the Secretary has decided to 
expand Reach 4B capacity to 4500 cubic feet per 
second; and 
(ii) addresses the following matters: 
(I) The basis for the Secretary’s determination, 
whether set out in environmental review docu-
ments or otherwise, as to whether the expansion 
of Reach 4B would be the preferable means to 
achieve the Restoration Goal as provided in the 
Settlement, including how different factors were 
assessed such as comparative biological and 
habitat benefits, comparative costs, relative avail-
ability of State cost-sharing funds, and the 
comparative benefits and impacts on water 
temperature, water supply, private property, and 
local and downstream flood control. 
(II) The Secretary’s final cost estimate for 
expanding Reach 4B capacity to 4500 cubic feet 
per second, or any alternative route selected, as 
well as the alternative cost estimates provided by 
the State, by the Restoration Administrator, and 
by the other parties to the Settlement.
H. R. 146—368 
(III) The Secretary’s plan for funding the costs 
of expanding Reach 4B or any alternative route 
selected, whether by existing Federal funds pro-
vided under this subtitle, by non-Federal funds, 
by future Federal appropriations, or some combina-
tion of such sources. 
(B) DETERMINATION REQUIRED.—The Secretary shall, 
to the extent feasible, make the determination in subpara-
graph (A) prior to undertaking any substantial construction 
work to increase capacity in reach 4B. 
(3) COSTS.—If the Secretary’s estimated Federal cost for 
expanding reach 4B in paragraph (2), in light of the Secretary’s 
funding plan set out in that paragraph, would exceed the 
remaining Federal funding authorized by this part (including 
all funds reallocated, all funds dedicated, and all new funds 
authorized by this part and separate from all commitments 
of State and other non-Federal funds and in-kind commit-
ments), then before the Secretary commences actual construc-
tion work in reach 4B (other than planning, design, feasibility, 
or other preliminary measures) to expand capacity to 4500 
cubic feet per second to implement this Settlement, Congress 
must have increased the applicable authorization ceiling pro-
vided by this part in an amount at least sufficient to cover 
the higher estimated Federal costs. 
SEC. 10010. REPAYMENT CONTRACTS AND ACCELERATION OF REPAY-
MENT OF CONSTRUCTION COSTS. 
(a) CONVERSION OF CONTRACTS.— 
(1) The Secretary is authorized and directed to convert, 
prior to December 31, 2010, all existing long-term contracts 
with the following Friant Division, Hidden Unit, and Buchanan 
Unit contractors, entered under subsection (e) of section 9 of 
the Act of August 4, 1939 (53 Stat. 1196), to contracts under 
subsection (d) of section 9 of said Act (53 Stat. 1195), under 
mutually agreeable terms and conditions: Arvin-Edison Water 
Storage District; Delano-Earlimart Irrigation District; Exeter 
Irrigation District; Fresno Irrigation District; Ivanhoe Irrigation 
District; Lindmore Irrigation District; Lindsay-Strathmore 
Irrigation District; Lower Tule River Irrigation District; Orange 
Cove Irrigation District; Porterville Irrigation District; Saucelito 
Irrigation District; Shafter-Wasco Irrigation District; Southern 
San Joaquin Municipal Utility District; Stone Corral Irrigation 
District; Tea Pot Dome Water District; Terra Bella Irrigation 
District; Tulare Irrigation District; Madera Irrigation District; 
and Chowchilla Water District. Upon request of the contractor, 
the Secretary is authorized to convert, prior to December 31, 
2010, other existing long-term contracts with Friant Division 
contractors entered under subsection (e) of section 9 of the 
Act of August 4, 1939 (53 Stat. 1196), to contracts under sub-
section (d) of section 9 of said Act (53 Stat. 1195), under 
mutually agreeable terms and conditions. 
(2) Upon request of the contractor, the Secretary is further 
authorized to convert, prior to December 31, 2010, any existing 
Friant Division long-term contract entered under subsection 
(c)(2) of section 9 of the Act of August 4, 1939 (53 Stat. 1194), 
to a contract under subsection (c)(1) of section 9 of said Act, 
under mutually agreeable terms and conditions.
H. R. 146—369 
(3) All such contracts entered into pursuant to paragraph 
(1) shall— 
(A) require the repayment, either in lump sum or by 
accelerated prepayment, of the remaining amount of 
construction costs identified in the Central Valley Project 
Schedule of Irrigation Capital Rates by Contractor 2007 
Irrigation Water Rates, dated January 25, 2007, as 
adjusted to reflect payments not reflected in such schedule, 
and properly assignable for ultimate return by the con-
tractor, no later than January 31, 2011, or if made in 
approximately equal annual installments, no later than 
January 31, 2014; such amount to be discounted by 1⁄2 
the Treasury Rate. An estimate of the remaining amount 
of construction costs as of January 31, 2011, as adjusted, 
shall be provided by the Secretary to each contractor no 
later than June 30, 2010; 
(B) require that, notwithstanding subsection (c)(2), 
construction costs or other capitalized costs incurred after 
the effective date of the contract or not reflected in the 
schedule referenced in subparagraph (A), and properly 
assignable to such contractor, shall be repaid in not more 
than 5 years after notification of the allocation if such 
amount is a result of a collective annual allocation of capital 
costs to the contractors exercising contract conversions 
under this subsection of less than $5,000,000. If such 
amount is $5,000,000 or greater, such cost shall be repaid 
as provided by applicable Reclamation law, provided that 
the reference to the amount of $5,000,000 shall not be 
a precedent in any other context; 
(C) provide that power revenues will not be available 
to aid in repayment of construction costs allocated to irriga-
tion under the contract; and 
(D) conform to the Settlement and this part and shall 
continue so long as the contractor pays applicable charges, 
consistent with subsection (c)(2) and applicable law. 
(4) All such contracts entered into pursuant to paragraph 
(2) shall— 
(A) require the repayment in lump sum of the 
remaining amount of construction costs identified in the 
most current version of the Central Valley Project Schedule 
of Municipal and Industrial Water Rates, as adjusted to 
reflect payments not reflected in such schedule, and prop-
erly assignable for ultimate return by the contractor, no 
later than January 31, 2014. An estimate of the remaining 
amount of construction costs as of January 31, 2014, as 
adjusted, shall be provided by the Secretary to each con-
tractor no later than June 30, 2013; 
(B) require that, notwithstanding subsection (c)(2), 
construction costs or other capitalized costs incurred after 
the effective date of the contract or not reflected in the 
schedule referenced in subparagraph (A), and properly 
assignable to such contractor, shall be repaid in not more 
than 5 years after notification of the allocation if such 
amount is a result of a collective annual allocation of capital 
costs to the contractors exercising contract conversions 
under this subsection of less than $5,000,000. If such 
amount is $5,000,000 or greater, such cost shall be repaid
H. R. 146—370 
as provided by applicable Reclamation law, provided that 
the reference to the amount of $5,000,000 shall not be 
a precedent in any other context; and 
(C) conform to the Settlement and this part and shall 
continue so long as the contractor pays applicable charges, 
consistent with subsection (c)(2) and applicable law. 
(b) FINAL ADJUSTMENT.—The amounts paid pursuant to sub-
section (a) shall be subject to adjustment following a final cost 
allocation by the Secretary upon completion of the construction 
of the Central Valley Project. In the event that the final cost 
allocation indicates that the costs properly assignable to the con-
tractor are greater than what has been paid by the contractor, 
the contractor shall be obligated to pay the remaining allocated 
costs. The term of such additional repayment contract shall be 
no less than 1 year and no more than 10 years, however, mutually 
agreeable provisions regarding the rate of repayment of such 
amount may be developed by the parties. In the event that the 
final cost allocation indicates that the costs properly assignable 
to the contractor are less than what the contractor has paid, the 
Secretary is authorized and directed to credit such overpayment 
as an offset against any outstanding or future obligation of the 
contractor. 
(c) APPLICABILITY OF CERTAIN PROVISIONS.— 
(1) Notwithstanding any repayment obligation under sub-
section (a)(3)(B) or subsection (b), upon a contractor’s compli-
ance with and discharge of the obligation of repayment of 
the construction costs as provided in subsection (a)(3)(A), the 
provisions of section 213(a) and (b) of the Reclamation Reform 
Act of 1982 (96 Stat. 1269) shall apply to lands in such district. 
(2) Notwithstanding any repayment obligation under para-
graph (3)(B) or (4)(B) of subsection (a), or subsection (b), upon 
a contractor’s compliance with and discharge of the obligation 
of repayment of the construction costs as provided in para-
graphs (3)(A) and (4)(A) of subsection (a), the Secretary shall 
waive the pricing provisions of section 3405(d) of the Reclama-
tion Projects Authorization and Adjustment Act of 1992 (Public 
Law 102–575) for such contractor, provided that such contractor 
shall continue to pay applicable operation and maintenance 
costs and other charges applicable to such repayment contracts 
pursuant to the then-current rate-setting policy and applicable 
law. 
(3) Provisions of the Settlement applying to Friant Division, 
Hidden Unit, and Buchanan Unit long-term water service con-
tracts shall also apply to contracts executed pursuant to this 
section. 
(d) REDUCTION OF CHARGE FOR THOSE CONTRACTS CONVERTED 
PURSUANT TO SUBSECTION (A)(1).— 
(1) At the time all payments by the contractor required 
by subsection (a)(3)(A) have been completed, the Secretary shall 
reduce the charge mandated in section 10007(1) of this part, 
from 2020 through 2039, to offset the financing costs as defined 
in section 10010(d)(3). The reduction shall be calculated at 
the time all payments by the contractor required by subsection 
(a)(3)(A) have been completed. The calculation shall remain 
fixed from 2020 through 2039 and shall be based upon antici-
pated average annual water deliveries, as mutually agreed 
upon by the Secretary and the contractor, for the period from
H. R. 146—371 
2020 through 2039, and the amounts of such reductions shall 
be discounted using the Treasury Rate; provided, that such 
charge shall not be reduced to less than $4.00 per acre foot 
of project water delivered; provided further, that such reduction 
shall be implemented annually unless the Secretary determines, 
based on the availability of other monies, that the charges 
mandated in section 10007(1) are otherwise needed to cover 
ongoing federal costs of the Settlement, including any federal 
operation and maintenance costs of facilities that the Secretary 
determines are needed to implement the Settlement. If the 
Secretary determines that such charges are necessary to cover 
such ongoing federal costs, the Secretary shall, instead of 
making the reduction in such charges, reduce the contractor’s 
operation and maintenance obligation by an equivalent amount, 
and such amount shall not be recovered by the United States 
from any Central Valley Project contractor, provided nothing 
herein shall affect the obligation of the contractor to make 
payments pursuant to a transfer agreement with a non-federal 
operating entity. 
(2) If the calculated reduction in paragraph (1), taking 
into consideration the minimum amount required, does not 
result in the contractor offsetting its financing costs, the Sec-
retary is authorized and directed to reduce, after October 1, 
2019, any outstanding or future obligations of the contractor 
to the Bureau of Reclamation, other than the charge assessed 
and collected under section 3407(d) of Public law 102–575, 
by the amount of such deficiency, with such amount indexed 
to 2020 using the Treasury Rate and such amount shall not 
be recovered by the United States from any Central Valley 
Project contractor, provided nothing herein shall affect the 
obligation of the contractor to make payments pursuant to 
a transfer agreement with a non-Federal operating entity. 
(3) Financing costs, for the purposes of this subsection, 
shall be computed as the difference of the net present value 
of the construction cost identified in subsection (a)(3)(A) using 
the full Treasury Rate as compared to using one half of the 
Treasury Rate and applying those rates against a calculated 
average annual capital repayment through 2030. 
(4) Effective in 2040, the charge shall revert to the amount 
called for in section 10007(1) of this part. 
(5) For purposes of this section, ‘‘Treasury Rate’’ shall 
be defined as the 20 year Constant Maturity Treasury (CMT) 
rate published by the United States Department of the Treasury 
as of October 1, 2010. 
(e) SATISFACTION OF CERTAIN PROVISIONS.— 
(1) IN GENERAL.—Upon the first release of Interim Flows 
or Restoration Flows, pursuant to paragraphs 13 or 15 of the 
Settlement, any short- or long-term agreement, to which 1 
or more long-term Friant Division, Hidden Unit, or Buchanan 
Unit contractor that converts its contract pursuant to sub-
section (a) is a party, providing for the transfer or exchange 
of water not released as Interim Flows or Restoration Flows 
shall be deemed to satisfy the provisions of subsection 
3405(a)(1)(A) and (I) of the Reclamation Projects Authorization 
and Adjustment Act of 1992 (Public Law 102–575) without 
the further concurrence of the Secretary as to compliance with 
said subsections if the contractor provides, not later than 90
H. R. 146—372 
days before commencement of any such transfer or exchange 
for a period in excess of 1 year, and not later than 30 days 
before commencement of any proposed transfer or exchange 
with duration of less than 1 year, written notice to the Secretary 
stating how the proposed transfer or exchange is intended 
to reduce, avoid, or mitigate impacts to water deliveries caused 
by the Interim Flows or Restoration Flows or is intended to 
otherwise facilitate the Water Management Goal, as described 
in the Settlement. The Secretary shall promptly make such 
notice publicly available. 
(2) DETERMINATION
OF
REDUCTIONS
TO
WATER
DELIV-
ERIES.—Water transferred or exchanged under an agreement 
that meets the terms of this subsection shall not be counted 
as a replacement or an offset for purposes of determining reduc-
tions to water deliveries to any Friant Division long-term con-
tractor except as provided in paragraph 16(b) of the Settlement. 
The Secretary shall, at least annually, make publicly available 
a compilation of the number of transfer or exchange agreements 
exercising the provisions of this subsection to reduce, avoid, 
or mitigate impacts to water deliveries caused by the Interim 
Flows or Restoration Flows or to facilitate the Water Manage-
ment Goal, as well as the volume of water transferred or 
exchanged under such agreements. 
(3) STATE LAW.—Nothing in this subsection alters State 
law or permit conditions, including any applicable geographical 
restrictions on the place of use of water transferred or 
exchanged pursuant to this subsection. 
(f) 
CERTAIN
REPAYMENT
OBLIGATIONS
NOT
ALTERED.— 
Implementation of the provisions of this section shall not alter 
the repayment obligation of any other long-term water service or 
repayment contractor receiving water from the Central Valley 
Project, or shift any costs that would otherwise have been properly 
assignable to the Friant contractors absent this section, including 
operations and maintenance costs, construction costs, or other 
capitalized costs incurred after the date of enactment of this Act, 
to other such contractors. 
(g) STATUTORY INTERPRETATION.—Nothing in this part shall 
be construed to affect the right of any Friant Division, Hidden 
Unit, or Buchanan Unit long-term contractor to use a particular 
type of financing to make the payments required in paragraph 
(3)(A) or (4)(A) of subsection (a). 
SEC. 10011. CALIFORNIA CENTRAL VALLEY SPRING RUN CHINOOK 
SALMON. 
(a) FINDING.—Congress finds that the implementation of the 
Settlement to resolve 18 years of contentious litigation regarding 
restoration of the San Joaquin River and the reintroduction of 
the California Central Valley Spring Run Chinook salmon is a 
unique and unprecedented circumstance that requires clear expres-
sions of Congressional intent regarding how the provisions of the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) are utilized 
to achieve the goals of restoration of the San Joaquin River and 
the successful reintroduction of California Central Valley Spring 
Run Chinook salmon. 
(b) REINTRODUCTION IN THE SAN JOAQUIN RIVER.—California 
Central Valley Spring Run Chinook salmon shall be reintroduced 
in the San Joaquin River below Friant Dam pursuant to section
H. R. 146—373 
10(j) of the Endangered Species Act of 1973 (16 U.S.C. 1539(j)) 
and the Settlement, provided that the Secretary of Commerce finds 
that a permit for the reintroduction of California Central Valley 
Spring Run Chinook salmon may be issued pursuant to section 
10(a)(1)(A) of the Endangered Species Act of 1973 (16 U.S.C. 
1539(a)(1)(A)). 
(c) FINAL RULE.— 
(1) DEFINITION OF THIRD PARTY.—For the purpose of this 
subsection, the term ‘‘third party’’ means persons or entities 
diverting or receiving water pursuant to applicable State and 
Federal laws and shall include Central Valley Project contrac-
tors outside of the Friant Division of the Central Valley Project 
and the State Water Project. 
(2) ISSUANCE.—The Secretary of Commerce shall issue a 
final rule pursuant to section 4(d) of the Endangered Species 
Act of 1973 (16 U.S.C. 1533(d)) governing the incidental take 
of reintroduced California Central Valley Spring Run Chinook 
salmon prior to the reintroduction. 
(3) REQUIRED COMPONENTS.—The rule issued under para-
graph (2) shall provide that the reintroduction will not impose 
more than de minimus: water supply reductions, additional 
storage releases, or bypass flows on unwilling third parties 
due to such reintroduction. 
(4) APPLICABLE LAW.—Nothing in this section— 
(A) diminishes the statutory or regulatory protections 
provided in the Endangered Species Act of 1973 for any 
species listed pursuant to section 4 of the Endangered 
Species Act of 1973 (16 U.S.C. 1533) other than the reintro-
duced population of California Central Valley Spring Run 
Chinook salmon, including protections pursuant to existing 
biological opinions or new biological opinions issued by 
the Secretary or Secretary of Commerce; or 
(B) precludes the Secretary or Secretary of Commerce 
from imposing protections under the Endangered Species 
Act of 1973 (16 U.S.C. 1531 et seq.) for other species 
listed pursuant to section 4 of that Act (16 U.S.C. 1533) 
because those protections provide incidental benefits to 
such reintroduced California Central Valley Spring Run 
Chinook salmon. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than December 31, 2024, the 
Secretary of Commerce shall report to Congress on the progress 
made on the reintroduction set forth in this section and the 
Secretary’s plans for future implementation of this section. 
(2) INCLUSIONS.—The report under paragraph (1) shall 
include— 
(A) an assessment of the major challenges, if any, 
to successful reintroduction; 
(B) an evaluation of the effect, if any, of the reintroduc-
tion on the existing population of California Central Valley 
Spring Run Chinook salmon existing on the Sacramento 
River or its tributaries; and 
(C) an assessment regarding the future of the reintro-
duction. 
(e) FERC PROJECTS.— 
(1) IN GENERAL.—With regard to California Central Valley 
Spring Run Chinook salmon reintroduced pursuant to the
H. R. 146—374 
Settlement, the Secretary of Commerce shall exercise its 
authority under section 18 of the Federal Power Act (16 U.S.C. 
811) by reserving its right to file prescriptions in proceedings 
for projects licensed by the Federal Energy Regulatory Commis-
sion on the Calaveras, Stanislaus, Tuolumne, Merced, and San 
Joaquin rivers and otherwise consistent with subsection (c) 
until after the expiration of the term of the Settlement, 
December 31, 2025, or the expiration of the designation made 
pursuant to subsection (b), whichever ends first. 
(2) EFFECT
OF
SUBSECTION.—Nothing in this subsection 
shall preclude the Secretary of Commerce from imposing 
prescriptions pursuant to section 18 of the Federal Power Act 
(16 U.S.C. 811) solely for other anadromous fish species because 
those prescriptions provide incidental benefits to such reintro-
duced California Central Valley Spring Run Chinook salmon. 
(f) EFFECT OF SECTION.—Nothing in this section is intended 
or shall be construed— 
(1) to modify the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.) or the Federal Power Act (16 U.S.C. 791a 
et seq.); or 
(2) to establish a precedent with respect to any other 
application of the Endangered Species Act of 1973 (16 U.S.C. 
1531 et seq.) or the Federal Power Act (16 U.S.C. 791a et 
seq.). 
PART II—STUDY TO DEVELOP WATER PLAN; 
REPORT 
SEC. 10101. STUDY TO DEVELOP WATER PLAN; REPORT. 
(a) PLAN.— 
(1) GRANT.—To the extent that funds are made available 
in advance for this purpose, the Secretary of the Interior, 
acting through the Bureau of Reclamation, shall provide direct 
financial assistance to the California Water Institute, located 
at California State University, Fresno, California, to conduct 
a study regarding the coordination and integration of sub- 
regional integrated regional water management plans into a 
unified Integrated Regional Water Management Plan for the 
subject counties in the hydrologic basins that would address 
issues related to— 
(A) water quality; 
(B) water supply (both surface, ground water banking, 
and brackish water desalination); 
(C) water conveyance; 
(D) water reliability; 
(E) water conservation and efficient use (by distribu-
tion systems and by end users); 
(F) flood control; 
(G) water resource-related environmental enhance-
ment; and 
(H) population growth. 
(2) STUDY AREA.—The study area referred to in paragraph 
(1) is the proposed study area of the San Joaquin River Hydro-
logic Region and Tulare Lake Hydrologic Region, as defined 
by California Department of Water Resources Bulletin 160– 
05, volume 3, chapters 7 and 8, including Kern, Tulare, Kings,
H. R. 146—375 
Fresno, Madera, Merced, Stanislaus, and San Joaquin counties 
in California. 
(b) USE OF PLAN.—The Integrated Regional Water Management 
Plan developed for the 2 hydrologic basins under subsection (a) 
shall serve as a guide for the counties in the study area described 
in subsection (a)(2) to use as a mechanism to address and solve 
long-term water needs in a sustainable and equitable manner. 
(c) REPORT.—The Secretary shall ensure that a report con-
taining the results of the Integrated Regional Water Management 
Plan for the hydrologic regions is submitted to the Committee 
on Energy and Natural Resources of the Senate and the Committee 
on Natural Resources of the House of Representatives not later 
than 24 months after financial assistance is made available to 
the California Water Institute under subsection (a)(1). 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to carry out this section $1,000,000 to remain 
available until expended. 
PART III—FRIANT DIVISION IMPROVEMENTS 
SEC. 10201. FEDERAL FACILITY IMPROVEMENTS. 
(a) The Secretary of the Interior (hereafter referred to as the 
‘‘Secretary’’) is authorized and directed to conduct feasibility studies 
in coordination with appropriate Federal, State, regional, and local 
authorities on the following improvements and facilities in the 
Friant Division, Central Valley Project, California: 
(1) Restoration of the capacity of the Friant-Kern Canal 
and Madera Canal to such capacity as previously designed 
and constructed by the Bureau of Reclamation. 
(2) Reverse flow pump-back facilities on the Friant-Kern 
Canal, with reverse-flow capacity of approximately 500 cubic 
feet per second at the Poso and Shafter Check Structures 
and approximately 300 cubic feet per second at the Woollomes 
Check Structure. 
(b) Upon completion of and consistent with the applicable feasi-
bility studies, the Secretary is authorized to construct the improve-
ments and facilities identified in subsection (a) in accordance with 
all applicable Federal and State laws. 
(c) The costs of implementing this section shall be in accordance 
with section 10203, and shall be a nonreimbursable Federal 
expenditure. 
SEC. 10202. FINANCIAL ASSISTANCE FOR LOCAL PROJECTS. 
(a) AUTHORIZATION.—The Secretary is authorized to provide 
financial assistance to local agencies within the Central Valley 
Project, California, for the planning, design, environmental compli-
ance, and construction of local facilities to bank water underground 
or to recharge groundwater, and that recover such water, provided 
that the project meets the criteria in subsection (b). The Secretary 
is further authorized to require that any such local agency receiving 
financial assistance under the terms of this section submit progress 
reports and accountings to the Secretary, as the Secretary deems 
appropriate, which such reports shall be publicly available. 
(b) CRITERIA.— 
(1) A project shall be eligible for Federal financial assist-
ance under subsection (a) only if all or a portion of the project 
is designed to reduce, avoid, or offset the quantity of the