(i) in the matter preceding subpara-
graph (A), by striking ‘‘Interim Flows 
under the Settlement’’ and inserting ‘‘Res-
toration Flows under this part’’; 
(ii) in subparagraph (C)— 
(I) in clause (i), by striking ‘‘In-
terim’’ and inserting ‘‘Restoration’’; 
and 
(II) in clause (ii), by inserting 
‘‘and’’ after the semicolon; 
(iii) in subparagraph (D), by striking 
‘‘and’’ at the end; and 
(iv) by striking subparagraph (E); 
(C) in paragraph (2)— 
(i) by striking ‘‘Interim’’ and insert-
ing ‘‘Restoration’’; 
(ii) by striking subparagraph (A); and 
(iii) by striking ‘‘(B) exceed’’ and in-
serting ‘‘exceed’’; 
(D) in paragraph (3), by striking ‘‘In-
terim’’ and inserting ‘‘Restoration’’; and 
(E) by striking paragraph (4) and insert-
ing the following: 
‘‘(4) CLAIMS.—Within 60 days of enactment of 
this Act the Secretary shall promulgate a rule estab-
lishing a claims process to address current and fu-
ture claims including, but not limited to, ground 
water seepage, flooding, or levee instability damages 
caused as a result of, arising out of, or related to 
implementation of subtitle A of title X of Public 
Law 111–11.’’; 
(9) in subsection (i)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘the Settlement and 
parts I and III’’ and inserting ‘‘this part’’; 
(ii) in subparagraph (A), by inserting 
‘‘and’’ after the semicolon; 
(iii) in subparagraph (B)— 
(I) 
by 
striking 
‘‘additional 
amounts authorized to be appro-
priated, including the’’; and 
(II) by striking ‘‘; and’’ and in-
serting a period; and 
(iv) by striking subparagraph (C); and 
(B) by striking paragraph (3); and 
(10) by adding at the end the following new 
subsections: 
‘‘(k) NO IMPACTS ON OTHER INTERESTS.—No Cen-
tral Valley Project or other water other than San Joaquin
River water impounded by or bypassed from Friant Dam 
shall be used to implement subsection (a)(2) unless such 
use is on a voluntary basis. No cost associated with the 
implementation of this section shall be imposed directly 
or indirectly on any Central Valley Project contractor, or 
any other person or entity, outside the Friant Division, 
the Hidden Unit, or the Buchanan Unit, unless such costs 
are incurred on a voluntary basis. The implementation of 
this part shall not result directly or indirectly in any re-
duction in water supplies or water reliability on any Cen-
tral Valley Project contractor, any State Water Project 
contractor, or any other person or entity, outside the 
Friant Division, the Hidden Unit, or the Buchanan Unit, 
unless such reductions or costs are incurred on a voluntary 
basis. 
‘‘(l) PRIORITY.—All actions taken under this part 
shall be subordinate to the Secretary’s use of Central Val-
ley Project facilities to make Project water available to 
Project contractors, other than water released from the 
Friant Dam pursuant to this part. 
‘‘(m) IN GENERAL.—Notwithstanding section 8 of 
the Reclamation Act of 1902, except as provided in this 
part, including title IV of the Sacramento and San Joa-
quin Valleys Water Reliability Act, this part preempts and 
supersedes any State law, regulation, or requirement that
imposes more restrictive requirements or regulations on 
the activities authorized under this part. Nothing in this 
part shall alter or modify the obligations, if any, of the 
Friant Division, Hidden Unit, and Buchanan Unit of the 
Central Valley Project, or other water users on the San 
Joaquin River or its tributaries, under orders issued by 
the State Water Resources Control Board pursuant to the 
Porter-Cologne Water Quality Control Act (California 
Water Code sections 13000 et seq.). Any such order shall 
be consistent with the congressional authorization for any 
affected Federal facility as it pertains to the Central Val-
ley Project. 
‘‘(n) PROJECT IMPLEMENTATION.—Projects to im-
plement this title shall be phased such that each project 
shall follow the sequencing identified below and include at 
least the— 
‘‘(1) project purpose and need; 
‘‘(2) identification of mitigation measures; 
‘‘(3) appropriate environmental review; and 
‘‘(4) prior to releasing Restoration Flows under 
this part, the Secretary shall— 
‘‘(A) complete the implementation of miti-
gation measures required; and 
‘‘(B) complete implementation of the 
project.’’.
SEC. 205. DISPOSAL OF PROPERTY; TITLE TO FACILITIES. 
Section 10005 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended— 
(1) in subsection (a), by striking ‘‘the Settle-
ment authorized by this part’’ and inserting ‘‘this 
part’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘(1) IN GENERAL.— 
The Secretary’’ and inserting ‘‘The Sec-
retary’’; and 
(ii) by striking ‘‘the Settlement au-
thorized by this part’’ and inserting ‘‘this 
part’’; and 
(B) by striking paragraph (2); and 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘the Set-
tlement’’ and inserting ‘‘this part’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘through the exercise 
of its eminent domain authority’’; and 
(ii) by striking ‘‘the Settlement’’ and 
inserting ‘‘this part’’; and 
(C) in paragraph (3), by striking ‘‘section 
10009(c)’’ and inserting ‘‘section 10009’’.
SEC. 206. COMPLIANCE WITH APPLICABLE LAW. 
Section 10006 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), by inserting ‘‘unless 
otherwise provided by this part’’ before the pe-
riod at the end; and 
(B) in paragraph (2), by striking ‘‘the Set-
tlement’’ and inserting ‘‘this part’’; 
(2) in subsection (b), by inserting ‘‘, unless oth-
erwise provided by this part’’ before the period at 
the end; 
(3) in subsection (c)— 
(A) in paragraph (2), by striking ‘‘section 
10004’’ and inserting ‘‘this part’’; and 
(B) in paragraph (3), by striking ‘‘the Set-
tlement’’ and inserting ‘‘this part’’; and 
(4) in subsection (d)— 
(A) by inserting ‘‘, including without limi-
tation to sections 10004(d) and 10004(h)(4) of 
this part,’’ after ‘‘implementing this part’’; and 
(B) by striking ‘‘for implementation of the 
Settlement’’.
SEC. 207. COMPLIANCE WITH CENTRAL VALLEY PROJECT 
IMPROVEMENT ACT. 
Section 10007 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended— 
(1) in the matter preceding paragraph (1), 
(A) by striking ‘‘the Settlement’’ and in-
serting ‘‘enactment of this part’’; and 
(B) by inserting: ‘‘and the obligations of 
the Secretary and all other parties to protect 
and keep in good condition any fish that may 
be planted or exist below Friant Dam including 
any obligations under section 5937 of the Cali-
fornia Fish and Game Code and the public 
trust doctrine, and those of the Secretary and 
all other parties under the Endangered Species 
Act of 1973 (16 U.S.C. 1531 et seq.).’’ before 
‘‘, provided’’; and 
(2) in paragraph (1), by striking ‘‘, as provided 
in the Settlement’’. 
SEC. 208. NO PRIVATE RIGHT OF ACTION. 
Section 10008(a) of the San Joaquin River Restora-
tion Settlement Act (Public Law 111–11) is amended— 
(1) by striking ‘‘not a party to the Settlement’’ 
after ‘‘person or entity’’; and 
(2) by striking ‘‘or the Settlement’’ before the 
period and inserting ‘‘unless otherwise provided by
this part. Any Central Valley Project long-term 
water service or repayment contractor within the 
Friant Division, Hidden unit, or Buchanan Unit ad-
versely affected by the Secretary’s failure to comply 
with section 10004(a)(3) of this part may bring an 
action against the Secretary for injunctive relief or 
damages, or both.’’. 
SEC. 209. IMPLEMENTATION. 
Section 10009 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended— 
(1) in the header by striking ‘‘; SETTLEMENT 
FUND’’; 
(2) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘the Settlement’’ the 
first place it appears and inserting ‘‘this 
part’’; 
(ii) by striking ‘‘, estimated to total’’ 
and all that follows through ‘‘subsection 
(b)(1),’’; and 
(iii) by striking ‘‘provided however,’’ 
and 
all 
that 
follows 
through 
‘‘$110,000,000 of State funds’’; 
(B) in paragraph (2)—
(i) in subparagraph (A), by striking 
‘‘(A) IN GENERAL.—The Secretary’’ and 
inserting ‘‘The Secretary’’; 
(ii) by striking subparagraph (B); and 
(C) in paragraph (3)— 
(i) by striking ‘‘Except as provided in 
the Settlement, to’’ and inserting ‘‘To’’; 
and 
(ii) by striking ‘‘this Settlement’’ and 
inserting ‘‘this part’’; 
(3) in subsection (b)(1)— 
(A) by striking ‘‘In addition’’ through 
‘‘however, that the’’ and inserting ‘‘The’’; 
(B) by striking ‘‘such additional appropria-
tions only in amounts equal to’’; and 
(C) by striking ‘‘or the Settlement’’ before 
the period; 
(4) in subsection (c)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘the Settlement’’ 
and inserting ‘‘this part’’; 
(ii) in subparagraph (C), by striking 
‘‘from the sale of water pursuant to the 
Settlement, or’’; and
(iii) in subparagraph (D), by striking 
‘‘the Settlement’’ and inserting ‘‘this 
part’’; 
(B) in paragraph (2), by striking ‘‘the Set-
tlement and’’ before ‘‘this part’’; and 
(5) by striking subsections (d) through (f). 
SEC. 210. REPAYMENT CONTRACTS AND ACCELERATION OF 
REPAYMENT OF CONSTRUCTION COSTS. 
Section 10010 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3)(D), by striking ‘‘the 
Settlement and’’ before ‘‘this part’’; and 
(B) in paragraph (4)(C), by striking ‘‘the 
Settlement and’’ before ‘‘this part’’; 
(2) in subsection (c), by striking paragraph (3); 
(3) in subsection (d)(1), by striking ‘‘the Settle-
ment’’ in both places it appears and inserting ‘‘this 
part’’; 
(4) in subsection (e)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Interim Flows or Res-
toration Flows, pursuant to paragraphs 13 
or 15 of the Settlement’’ and inserting
‘‘Restoration Flows, pursuant to this 
part’’; 
(ii) by striking ‘‘Interim Flows or’’ be-
fore ‘‘Restoration Flows’’; and 
(iii) by striking ‘‘the Interim Flows or 
Restoration Flows or is intended to other-
wise facilitate the Water Management 
Goal, as described in the Settlement’’ and 
inserting ‘‘Restoration Flows’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘except as provided in 
paragraph 16(b) of the Settlement’’ after 
‘‘Friant Division long-term contractor’’; 
and 
(ii) by striking ‘‘the Interim Flows or 
Restoration Flows or to facilitate the 
Water Management Goal’’ and inserting 
‘‘Restoration Flows’’. 
SEC. 211. REPEAL. 
Section 10011 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is repealed. 
SEC. 212. WATER SUPPLY MITIGATION. 
Section 10202(b) of the San Joaquin River Restora-
tion Settlement Act (Public Law 111–11) is amended—
(1) in paragraph (1), by striking ‘‘the Interim 
or Restoration Flows authorized in part I of this 
subtitle’’ and inserting ‘‘Restoration Flows author-
ized in this part’’; 
(2) in paragraph (2), by striking ‘‘the Interim 
or Restoration Flows authorized in part I of this 
subtitle’’ and inserting ‘‘Restoration Flows author-
ized in this part’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A), by striking 
‘‘meet the Restoration Goal as described in part 
I of this subtitle’’ and inserting ‘‘recover Res-
toration Flows as described in this part’’; 
(B) in subparagraph (C)— 
(i) by striking ‘‘the Interim or Res-
toration Flows authorized in part I of this 
subtitle’’ and inserting ‘‘Restoration Flows 
authorized in this part’’; and 
(ii) by striking ‘‘, and for ensuring ap-
propriate adjustment in the recovered 
water 
account 
pursuant 
to 
section 
10004(a)(5)’’. 
SEC. 213. ADDITIONAL AUTHORITIES. 
Section 10203 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended—
(1) in subsection (b)— 
(A) by striking ‘‘section 10004(a)(4)’’ and 
inserting ‘‘section 10004(a)(3)’’; and 
(B) by striking ‘‘, provided’’ and all that 
follows through ‘‘section 10009(f)(2)’’; and 
(2) by striking subsection (c). 
TITLE 
III—REPAYMENT 
CON-
TRACTS AND ACCELERATION 
OF 
REPAYMENT 
OF 
CON-
STRUCTION COSTS 
SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF 
REPAYMENT OF CONSTRUCTION COSTS. 
(a) CONVERSION OF CONTRACTS.— 
(1) Not later than 1 year after enactment, the 
Secretary of the Interior, upon request of the con-
tractor, shall convert all existing long-term Central 
Valley Project contracts entered under subsection (e) 
of section 9 of the Act of August 4, 1939 (53 Stat. 
1196), to a contract under subsection (d) of section 
9 of said Act (53 Stat. 1195), under mutually agree-
able terms and conditions. 
(2) Upon request of the contractor, the Sec-
retary is further authorized to convert, not later 
than 1 year after enactment, any Central Valley 
Project 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. 
(3) All contracts entered into pursuant to para-
graph (1) shall— 
(A) require the repayment, either in lump 
sum or by accelerated prepayment, of the re-
maining amount of construction costs identified 
in the most current version of the Central Val-
ley Project Schedule of Irrigation Capital Allo-
cations by Contractor, as adjusted to reflect 
payments not reflected in such schedule, and 
properly assignable for ultimate return by the 
contractor, no later than January 31, 2013, or 
if made in approximately equal annual install-
ments, no later than January 31, 2016; such 
amount to be discounted by the Treasury Rate. 
An estimate of the remaining amount of con-
struction costs as of January 31, 2013, as ad-
justed, shall be provided by the Secretary of the 
Interior to each contractor no later than 180 
days after enactment; 
(B) require that, notwithstanding sub-
section (c)(2), construction costs or other cap-
italized costs incurred after the effective date of 
the converted 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 notifica-
tion of the allocation if such amount is a result 
of a collective annual allocation of capital costs 
to the contractors exercising contract conver-
sions 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; and 
(C) provide that power revenues will not be 
available to aid in repayment of construction 
costs allocated to irrigation under the contract. 
(4) All contracts entered into pursuant to para-
graph (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 re-
flect payments not reflected in such schedule,
and properly assignable for ultimate return by 
the contractor, no later than January 31, 2016. 
An estimate of the remaining amount of con-
struction costs as of January 31, 2016, as ad-
justed, shall be provided by the Secretary of the 
Interior to each contractor no later than 180 
days after enactment; and 
(B) require that, notwithstanding sub-
section (c)(2), construction costs or other cap-
italized costs incurred after the effective date of 
the contract or not reflected in the schedule ref-
erenced in subparagraph (A), and properly as-
signable 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 collec-
tive 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 prece-
dent in any other context. 
(b) FINAL ADJUSTMENT.—The amounts paid pursu-
ant to subsection (a) shall be subject to adjustment fol-
(2) Notwithstanding any repayment obligation 
under paragraph (3)(B) or paragraph (4)(B) of sub-
section (a), or subsection (b), upon a contractor’s 
compliance with and discharge of the obligation of 
repayment of the construction costs as provided in 
paragraphs (3)(A) and (4)(A) of subsection (a), 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. 
(d) CERTAIN REPAYMENT OBLIGATIONS NOT AL-
TERED.—Implementation of the provisions of this section 
shall not alter the repayment obligation of any other long- 
term water service or repayment contractor receiving 
water from the Central Valley Project, or shift any costs 
that would otherwise have been properly assignable to any 
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. 
(e) STATUTORY INTERPRETATION.—Nothing in this 
part shall be construed to affect the right of any long- 
term contractor to use a particular type of financing to 
make the payments required in paragraph (3)(A) or para-
graph (4)(A) of subsection (a).
(f) DEFINITION OF TREASURY RATE.—For purposes 
of this section, ‘‘Treasury Rate’’ shall be defined as the 
20-year Constant Maturity Treasury rate published by the 
United States Department of the Treasury as of October 
1, 2012. 
TITLE 
IV—BAY-DELTA 
WATER-
SHED WATER RIGHTS PRES-
ERVATION AND PROTECTION 
SEC. 401. WATER RIGHTS AND AREA-OF-ORIGIN PROTEC-
TIONS. 
Notwithstanding the provisions of this Act, Federal 
reclamation law, or the Endangered Species Act of 1973 
(16 U.S.C. 1531 et seq.)— 
(1) the Secretary of the Interior (‘‘Secretary’’) 
is directed, in the operation of the Central Valley 
Project, to strictly adhere to State water rights law 
governing water rights priorities by honoring water 
rights senior to those belonging to the Central Valley 
Project, regardless of the source of priority; 
(2) the Secretary is directed, in the operation of 
the Central Valley Project, to strictly adhere to and 
honor water rights and other priorities that are ob-
tained or exist pursuant to the provisions of Cali-
fornia Water Code sections 10505, 10505:5, 11128,
11460, and 11463; and sections 12200 to 12220, in-
clusive; and 
(3) any action that affects the diversion of 
water or involves the release of water from any Cen-
tral Valley Project water storage facility taken by 
the Secretary or the Secretary of the Department of 
Commerce to conserve, enhance, recover, or other-
wise protect any species listed under the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.) shall 
be applied in a manner that is consistent with water 
right priorities established by State law. 
SEC. 402. SACRAMENTO RIVER SETTLEMENT CONTRACTS. 
In the implementation of the Endangered Species Act 
of 1973 (16 U.S.C. 1531 et seq.), in the Bay-Delta and 
on the Sacramento River, the Secretary and the Secretary 
of Commerce are directed to apply any limitations on the 
operation of the Central Valley Project or to formulate any 
‘‘reasonable prudent alternative’’ associated with the oper-
ation of the Central Valley Project in a manner that strict-
ly adheres to and applies the water rights priorities for 
‘‘Project Water’’ and ‘‘Base Supply’’ provided for in the 
Sacramento River Settlement Contracts. Article 3(i) of the 
Sacramento River Settlement Contracts shall not be uti-
lized by the United States as means to provide shortages 
to the Sacramento River Settlement Contracts that are
different than those provided for in Article 5(a) of those 
contracts. 
SEC. 403. SACRAMENTO RIVER WATERSHED WATER SERV-
ICE CONTRACTORS. 
(a) IN GENERAL.—Subject to subsection (b) and the 
absolute priority of the Sacramento River Settlement Con-
tractors to Sacramento River supplies over Central Valley 
Project diversions and deliveries to other contractors, the 
Secretary is directed, in the operation of the Central Val-
ley Project, to allocate water provided for irrigation pur-
poses to existing Central Valley Project agricultural water 
service contractors within the Sacramento River Water-
shed in compliance with the following: 
(1) Not less than 100% of their contract quan-
tities in a ‘‘Wet’’ year. 
(2) Not less than 100% of their contract quan-
tities in an ‘‘Above Normal’’ year. 
(3) Not less than 100% of their contract quan-
tities in a ‘‘Below Normal’’ year. 
(4) Not less than 75% of their contract quan-
tities in a ‘‘Dry’’ year. 
(5) Not less than 50% of their contract quan-
tities in a ‘‘Critically Dry’’ year. 
(b) PROTECTION OF MUNICIPAL AND INDUSTRIAL 
SUPPLIES.—Nothing in subsection (a) shall be deemed to
(i) modify any provision of a water service contract that 
addresses municipal and industrial water shortage policies 
of the Secretary, (ii) affect or limit the authority of the 
Secretary to adopt or modify municipal and industrial 
water shortage policies, (iii) affect or limit the authority 
of the Secretary to implement municipal and industrial 
water shortage policies, or (iv) affect allocations to Central 
Valley Project municipal and industrial contractors pursu-
ant to such policies. Neither subsection (a) nor the Sec-
retary’s implementation of subsection (a) shall constrain, 
govern or affect, directly or indirectly, the operations of 
the Central Valley Project’s American River Division or 
any deliveries from that Division, its units or its facilities. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘existing Central Valley Project 
agricultural water service contractors within the 
Sacramento River Watershed’’ means water service 
contractors within the Shasta, Trinity, and Sac-
ramento River Divisions of the Central Valley 
Project, that have a water service contract in effect, 
on the date of 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. 404. NO REDIRECTED ADVERSE IMPACTS. 
The Secretary shall insure that there are no redi-
rected adverse water supply or fiscal impacts to those 
within the Sacramento River or San Joaquin River water-
shed or to the State Water Project arising from the Sec-
retary’s operation of the Central Valley Project to meet 
legal obligations imposed by or through any State or Fed-
eral agency, including, but not limited to those legal obli-
gations emanating from the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.) or this Act, or actions or 
activities implemented to meet the twin goals of improving 
water supply or addressing environmental needs of the 
Bay Delta. 
TITLE V—MISCELLANEOUS 
SEC. 501. PRECEDENT. 
Congress finds and declares that— 
(1) coordinated operations between the Central 
Valley Project and the State Water Project, pre-
viously requested and consented to by the State of 
California and the Federal Government, require as-
sertion of Federal supremacy to protect existing 
water rights throughout the system; and 
(2) these circumstances are unique to Cali-
fornia.
Therefore, nothing in this Act shall serve as precedent in 
any other State. 
Passed the House of Representatives February 29, 
2012. 
Attest: 
Clerk.