in the involuntary reduction in contract water allocations 
to Central Valley Project long-term contractors, other 
than Friant Division long-term contractors. 
(g) EFFECT ON EXISTING WATER CONTRACTS.—Ex-
cept as provided in the Settlement and this Act, nothing 
in this Act shall modify or amend the rights and obliga-
tions of the parties to any existing water service, repay-
ment, purchase or exchange contract. 
SEC. 5. ACQUISITION AND DISPOSAL OF PROPERTY; TITLE 
TO FACILITIES. 
(a) TITLE TO FACILITIES.—Unless acquired pursu-
ant to subsection (b), title to any facility or facilities, 
stream channel, levees, or other real property modified or 
improved in the course of implementing the Settlement au-
thorized by this Act, and title to any modifications or im-
provements of such facility or facilities, stream channel, 
levees, or other real property— 
(1) shall remain in the owner of the property; 
and 
(2) shall not be transferred to the United 
States on account of such modifications or improve-
ments. 
(b) ACQUISITION OF PROPERTY.— 
(1) IN GENERAL.—The Secretary is authorized 
to acquire through purchase from willing sellers any 
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property, interests in property, or options to acquire 
real property needed to implement the Settlement 
authorized by this Act. 
(2) APPLICABLE LAW.—The Secretary is au-
thorized, but not required, to exercise all of the au-
thorities provided in section 2 of the Act of August 
26, 1937 (50 Stat. 844, chapter 832), to carry out 
the measures authorized in this section and section 
4. 
(c) DISPOSAL OF PROPERTY.— 
(1) IN GENERAL.—Upon the Secretary’s deter-
mination that retention of title to property or inter-
ests in property acquired pursuant to this Act is no 
longer needed to be held by the United States for 
the furtherance of the Settlement, the Secretary is 
authorized to dispose of such property or interest in 
property on such terms and conditions as the Sec-
retary deems appropriate and in the best interest of 
the United States, including possible transfer of 
such property to the State of California. 
(2) RIGHT OF FIRST REFUSAL.—In the event 
the Secretary determines that property acquired pur-
suant to this Act through the exercise of its eminent 
domain authority is no longer necessary for imple-
mentation of the Settlement, the Secretary shall pro-
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vide a right of first refusal to the property owner 
from whom the property was initially acquired, or 
his or her successor in interest, on the same terms 
and conditions as the property is being offered to 
other parties. 
(3) DISPOSITION
OF
PROCEEDS.—Proceeds 
from the disposal by sale or transfer of any such 
property or interests in such property shall be depos-
ited in the fund established by section 9(c). 
SEC. 6. COMPLIANCE WITH APPLICABLE LAW. 
(a) APPLICABLE LAW.— 
(1) IN GENERAL.—In undertaking the measures 
authorized by this Act, the Secretary and the Sec-
retary of Commerce shall comply with all applicable 
Federal and State laws, rules, and regulations, in-
cluding the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) and the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.), as 
necessary. 
(2) ENVIRONMENTAL REVIEWS.—The Secretary 
and the Secretary of Commerce are authorized and 
directed to initiate and expeditiously complete appli-
cable environmental reviews and consultations as 
may be necessary to effectuate the purposes of the 
Settlement. 
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(b) EFFECT ON STATE LAW.—Nothing in this Act 
shall preempt State law or modify any existing obligation 
of the United States under Federal reclamation law to op-
erate the Central Valley Project in conformity with State 
law. 
(c) USE
OF FUNDS
FOR ENVIRONMENTAL RE-
VIEWS.— 
(1) DEFINITION
OF
ENVIRONMENTAL
RE-
VIEW.—For purposes of this subsection, the term 
‘‘environmental review’’ includes any consultation 
and planning necessary to comply with subsection 
(a). 
(2) PARTICIPATION
IN
ENVIRONMENTAL
RE-
VIEW PROCESS.—In undertaking the measures au-
thorized by section 4, and for which environmental 
review is required, the Secretary may provide funds 
made available under this Act to affected Federal 
agencies, State agencies, local agencies, and Indian 
tribes if the Secretary determines that such funds 
are necessary to allow the Federal agencies, State 
agencies, local agencies, or Indian tribes to effec-
tively participate in the environmental review proc-
ess. 
(3) LIMITATION.—Funds may be provided 
under paragraph (2) only to support activities that 
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directly contribute to the implementation of the 
terms and conditions of the Settlement. 
(d) 
NONREIMBURSABLE
FUNDS.—The 
United 
States’ share of the costs of implementing this Act shall 
be nonreimbursable under Federal reclamation law, pro-
vided that nothing in this subsection shall limit or be con-
strued to limit the use of the funds assessed and collected 
pursuant to sections 3406(c)(1) and 3407(d)(2) of the 
Reclamation Projects Authorization and Adjustment Act 
of 1992 (Public Law 102–575; 106 Stat. 4721, 4727), for 
implementation of the Settlement, nor shall it be con-
strued to limit or modify existing or future Central Valley 
Project Ratesetting Policies. 
SEC. 7. COMPLIANCE WITH CENTRAL VALLEY PROJECT IM-
PROVEMENT ACT. 
Congress hereby finds and declares that the Settle-
ment satisfies and discharges all of the obligations of the 
Secretary contained in section 3406(c)(1) of the Reclama-
tion Projects Authorization and Adjustment Act of 1992 
(Public Law 102–575; 106 Stat. 4721), provided, how-
ever, that— 
(1) the Secretary shall continue to assess and 
collect the charges provided in section 3406(c)(1) of 
the Reclamation Projects Authorization and Adjust-
ment Act of 1992 (Public Law 102–575; 106 Stat. 
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4721), as provided in the Settlement and section 
9(d); and 
(2) those assessments and collections shall con-
tinue to be counted towards the requirements of the 
Secretary contained in section 3407(c)(2) of the 
Reclamation Projects Authorization and Adjustment 
Act of 1992 (Public Law 102–575; 106 Stat. 4726). 
SEC. 8. NO PRIVATE RIGHT OF ACTION. 
(a) IN GENERAL.—Nothing in this Act confers upon 
any person or entity not a party to the Settlement a pri-
vate right of action or claim for relief to interpret or en-
force the provisions of this Act or the Settlement. 
(b) APPLICABLE LAW.—This section shall not alter 
or curtail any right of action or claim for relief under any 
other applicable law. 
SEC. 9. APPROPRIATIONS; SETTLEMENT FUND. 
(a) IMPLEMENTATION COSTS.— 
(1) IN GENERAL.—The costs of implementing 
the Settlement shall be covered by payments or in 
kind contributions made by Friant Division contrac-
tors and other non-Federal parties, including the 
funds provided in paragraphs (1) through (5) of 
subsection (c), estimated to total $440,000,000, of 
which the non-Federal payments are estimated to 
total $200,000,000 (at October 2006 price levels) 
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and the amount from repaid Central Valley Project 
capital 
obligations 
is 
estimated 
to 
total 
$240,000,000, the additional Federal appropriation 
of $250,000,000 authorized pursuant to subsection 
(b)(1), and such additional funds authorized pursu-
ant to subsection (b)(2); provided however, that the 
costs of implementing the provisions of section 
4(a)(1) shall be shared by the State of California 
pursuant to the terms of a Memorandum of Under-
standing executed by the State of California and the 
Parties to the Settlement on September 13, 2006, 
which includes at least $110,000,000 of State funds. 
(2) ADDITIONAL AGREEMENTS.— 
(A) IN
GENERAL.—The Secretary shall 
enter into 1 or more agreements to fund or im-
plement improvements on a project-by-project 
basis with the State of California. 
(B) REQUIREMENTS.—Any agreements en-
tered into under subparagraph (A) shall provide 
for recognition of either monetary or in-kind 
contributions toward the State of California’s 
share of the cost of implementing the provisions 
of section 4(a)(1). 
(3) LIMITATION.—Except as provided in the 
Settlement, to the extent that costs incurred solely 
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to implement this Settlement 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 subdivision of the State of California, unless such 
costs are incurred on a voluntary basis. 
(b) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—In addition to the funds pro-
vided in paragraphs (1) through (5) of subsection 
(c), there are also authorized to be appropriated not 
to exceed $250,000,000 (at October 2006 price lev-
els) to implement this Act and the Settlement, to be 
available until expended; provided however, that the 
Secretary is authorized to spend such additional ap-
propriations only in amounts equal to the amount of 
funds deposited in the Fund (not including pay-
ments under subsection (c)(2), proceeds under sub-
section (c)(3) other than an amount equal to what 
would otherwise have been deposited under sub-
section (c)(1) in the absence of issuance of the bond, 
and proceeds under subsection (c)(4)), the amount 
of in-kind contributions, and other non-Federal pay-
ments actually committed to the implementation of 
this Act or the Settlement. 
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(2) OTHER FUNDS.—The Secretary is author-
ized to use monies from the Fund created under sec-
tion 3407 of the Reclamation Projects Authorization 
and Adjustment Act of 1992 (Public Law 102–575; 
106 Stat. 4727) for purposes of this Act. 
(c) FUND.—There is hereby established within the 
Treasury of the United States a fund, to be known as the 
‘‘San Joaquin River Restoration Fund’’, into which the 
following shall be deposited and used solely for the purpose 
of implementing the Settlement, to be available for ex-
penditure without further appropriation: 
(1) Subject to subsection (d), at the beginning 
of the fiscal year following enactment of this Act, all 
payments received pursuant to section 3406(c)(1) of 
the Reclamation Projects Authorization and Adjust-
ment Act of 1992 (Public Law 102–575; 106 Stat. 
4721). 
(2) Subject to subsection (d), the capital com-
ponent (not otherwise needed to cover operation and 
maintenance costs) of payments made by Friant Di-
vision long-term contractors pursuant to long-term 
water service contracts beginning the first fiscal year 
after the date of enactment of this Act. The capital 
repayment obligation of such contractors under such 
contracts shall be reduced by the amount paid pur-
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suant to this paragraph and the appropriate share 
of the existing Federal investment in the Central 
Valley Project to be recovered by the Secretary pur-
suant to Public Law 99–546 (100 Stat. 3050) shall 
be reduced by an equivalent sum. 
(3) Proceeds from a bond issue, federally-guar-
anteed loan, or other appropriate financing instru-
ment, to be issued or entered into by an appropriate 
public agency or subdivision of the State of Cali-
fornia pursuant to subsection (d)(2). 
(4) Proceeds from the sale of water pursuant to 
the Settlement, or from the sale of property or inter-
ests in property as provided in section 5. 
(5) Any non-Federal funds, including State 
cost-sharing funds, contributed to the United States 
for implementation of the Settlement, which the Sec-
retary may expend without further appropriation for 
the purposes for which contributed. 
(d) GUARANTEED LOANS AND OTHER FINANCING 
INSTRUMENTS.— 
(1) IN GENERAL.—The Secretary is authorized 
to enter into agreements with appropriate agencies 
or subdivisions of the State of California in order to 
facilitate a bond issue, federally-guaranteed loan, or 
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other appropriate financing instrument, for the pur-
pose of implementing this Settlement. 
(2) REQUIREMENTS.—If the Secretary and an 
appropriate agency or subdivision of the State of 
California enter into such an agreement, and if such 
agency or subdivision issues 1 or more revenue 
bonds, procures a federally secured loan, or other 
appropriate financing to fund implementation of the 
Settlement, and if such agency deposits the proceeds 
received from such bonds, loans, or financing into 
the Fund pursuant to subsection (c)(3), monies 
specified in paragraphs (1) and (2) of subsection (c) 
shall be provided by the Friant Division long-term 
contractors directly to such public agency or subdivi-
sion of the State of California to repay the bond, 
loan or financing rather than into the Fund. 
(3) DISPOSITION OF PAYMENTS.—After the sat-
isfaction of any such bond, loan, or financing, the 
payments specified in paragraphs (1) and (2) of sub-
section (c) shall be paid directly into the Fund au-
thorized by this section. 
(e) LIMITATION
ON
CONTRIBUTIONS.—Payments 
made by long-term contractors who receive water from the 
Friant Division and Hidden and Buchanan Units of the 
Central Valley Project pursuant to sections 3406(c)(1) 
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and 3407(d)(2) of the Reclamation Projects Authorization 
and Adjustment Act of 1992 (Public Law 102–575; 106 
Stat. 4721, 4727) and payments made pursuant to para-
graph 16(b)(3) of the Settlement and subsection (c)(2) 
shall be the limitation of such entities’ direct financial con-
tribution to the Settlement, subject to the terms and con-
ditions of paragraph 21 of the Settlement. 
(f) NO ADDITIONAL EXPENDITURES REQUIRED.— 
Nothing in this Act shall be construed to require a Federal 
official to expend Federal funds not appropriated by Con-
gress, or to seek the appropriation of additional funds by 
Congress, for the implementation of the Settlement. 
(g) REACH 4B.— 
(1) STUDY.— 
(A) IN GENERAL.—In accordance with the 
Settlement and the Memorandum of Under-
standing executed pursuant to paragraph 6 of 
the Settlement, the Secretary shall conduct 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; 
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(ii) the impacts associated with re-
initiation of such flows; and 
(iii) measures that shall be imple-
mented to mitigate impacts. 
(B) DEADLINE.—The study under sub-
paragraph (A) shall be completed prior to res-
toration 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 determination, as required by 
the Settlement, on whether to expand channel 
conveyance capacity to 4500 cubic feet per sec-
ond 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 en-
vironmental review documents or oth-
erwise, as to whether the expansion of 
Reach 4B would be the preferable 
means to achieve the Restoration Goal 
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as provided in the Settlement, includ-
ing how different factors were as-
sessed such as comparative biological 
and 
habitat 
benefits, 
comparative 
costs, relative availability of State 
cost-sharing funds, and the compara-
tive benefits and impacts on water 
temperature, water supply, private 
property, and local and downstream 
flood control. 
(II) The Secretary’s final cost es-
timate for expanding Reach 4B capac-
ity to 4500 cubic feet per second, or 
any alternative route selected, as well 
as the alternative cost estimates pro-
vided by the State, by the Restoration 
Administrator, and by the other par-
ties to the Settlement. 
(III) The Secretary’s plan for 
funding the costs of expanding Reach 
4B or any alternative route selected, 
whether by existing Federal funds 
provided under this Act, by non-Fed-
eral funds, by future Federal appro-
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priations, or some combination of 
such sources. 
(B) 
DETERMINATION
REQUIRED.—The 
Secretary shall, to the extent feasible, make the 
determination in subparagraph (A) prior to un-
dertaking any substantial construction work to 
increase capacity in Reach 4B. 
(3) COSTS.—If the Secretary’s estimated Fed-
eral cost for expanding Reach 4B in paragraph (2), 
in light of the Secretary’s funding plan set out in 
paragraph (2), would exceed the remaining Federal 
funding authorized by this Act (including all funds 
reallocated, all funds dedicated, and all new funds 
authorized by this Act and separate from all com-
mitments of State and other non-Federal funds and 
in-kind commitments), then before the Secretary 
commences actual construction 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 author-
ization ceiling provided by this Act in an amount at 
least sufficient to cover the higher estimated Federal 
costs. 
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SEC. 10. CALIFORNIA CENTRAL VALLEY SPRING RUN CHI-
NOOK SALMON. 
(a) FINDING.—Congress finds that the implementa-
tion 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 unprece-
dented circumstance that requires clear expressions 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 Cali-
fornia 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 10(j) of the Endan-
gered 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 Spe-
cies 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’’ 
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means persons or entities diverting or receiving 
water pursuant to applicable State and Federal law 
and shall include Central Valley Project contractors 
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 reintro-
duced California Central Valley Spring Run Chinook 
salmon prior to the reintroduction. 
(3) REQUIRED COMPONENTS.—The rule issued 
under paragraph (2) shall provide that the reintro-
duction will not impose more than de minimis: water 
supply reductions, additional storage releases, or by-
pass flows on unwilling third parties due to such re-
introduction. 
(4) APPLICABLE
LAW.—Nothing in this sec-
tion— 
(A) diminishes the statutory or regulatory 
protections provided in the Endangered Species 
Act for any species listed pursuant to section 4 
of the Endangered Species Act of 1973 (16 
U.S.C. 1533) other than the reintroduced popu-
lation of California Central Valley Spring Run 
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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) be-
cause those protections provide incidental bene-
fits to such reintroduced California Central Val-
ley 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 reintroduction on the existing population of 
California Central Valley Spring Run Chinook 
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salmon existing on the Sacramento River or its 
tributaries; and 
(C) an assessment regarding the future of 
the reintroduction. 
(e) FERC PROJECTS.— 
(1) IN GENERAL.—With regard to California 
Central Valley Spring Run Chinook salmon reintro-
duced pursuant to the Settlement, the Secretary of 
Commerce shall exercise its authority under section 
18 of the Federal Power Act (16 U.S.C. 811) by re-
serving its right to file prescriptions in proceedings 
for projects licensed by the Federal Energy Regu-
latory Commission on the Calaveras, Stanislaus, 
Tuolumne, Merced, and San Joaquin rivers and oth-
erwise 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 pre-
scriptions provide incidental benefits to such reintro-
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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.). 
Æ 
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