‘‘implementation of the Settlement’’ and inserting ‘‘restora-
tion of the San Joaquin River’’. 
SEC. 203. DEFINITIONS. 
Section 10003 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) The term ‘Restoration Flows’ means the ad-
ditional water released or bypassed from Friant Dam 
to insure that the target flow entering Mendota Pool, 
located approximately 62 river miles downstream 
from Friant Dam, does not fall below 50 cubic feet 
per second.’’; 
(2) by striking paragraph (3) and inserting the 
following: 
‘‘(3) The term ‘Water Year’ means March 1 
through the last day of February of the following Cal-
endar Year, both dates inclusive’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(4) The term ‘Critical Water Year’ means when 
the total unimpaired runoff at Friant Dam is less 
than 400,000 acre-feet, as forecasted as of March 1 of 
that water year by the California Department of 
Water Resources.’’. 
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SEC. 204. IMPLEMENTATION OF RESTORATION. 
Section 10004 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘authorized and directed’’ and all 
that follows through ‘‘in the Settlement’’ and in-
serting ‘‘authorized to carry out the following:’’; 
(B) by striking paragraphs (1), (2), (4), 
and (5); 
(C) in paragraph (3)— 
(i) by striking ‘‘(3)’’ and inserting 
‘‘(1)’’; and 
(ii) by striking ‘‘paragraph 13 of the 
Settlement’’ and inserting ‘‘this part’’ 
(D) by adding at the end the following new 
paragraphs: 
‘‘(2) In each Water Year, commencing in the 
Water Year starting on March 1, 2013— 
‘‘(A) shall modify Friant Dam operations 
so as to release the Restoration Flows for that 
Water Year, except in any Critical Water Year; 
‘‘(B) shall ensure that the release of Res-
toration Flows are maintained at the level pre-
scribed by this part, but that Restoration Flows 
do not reach downstream of Mendota Pool; 
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‘‘(C) shall release the Restoration Flows in 
a manner that improves the fishery in the San 
Joaquin River below Friant Dam, but upstream 
of Gravelly Ford in existence as of the date of the 
enactment of this part, and the associated ripar-
ian habitat; and 
‘‘(D) may, without limiting the actions re-
quired under paragraphs (A) and (C) and sub-
ject to subsections 10004(a)(3) and 10004(l), use 
the Restoration Flows to enhance or restore a 
warm water fishery downstream of Gravelly 
Ford to and including Mendota Pool, if the Sec-
retary determines that it is reasonable, prudent, 
and feasible to do so; and 
‘‘(3) Not later than 1 year after the date of the 
enactment of this section, the Secretary shall develop 
and implement, in cooperation with the State of Cali-
fornia, a reasonable plan, to fully recirculate, recap-
ture, reuse, exchange, or transfer all Restoration 
Flows and provide such recirculated, recaptured, re-
used, exchanged, or transferred flows to those contrac-
tors within the Friant Division, Hidden Unit, and 
Buchanan Unit of the Central Valley Project that re-
linquished the Restoration Flows so recirculated, re-
captured, reused, exchanged, or transferred. Such a 
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plan shall address any impact on ground water re-
sources within the service area of the Friant Division, 
Hidden Unit, and Buchanan Unit of the Central Val-
ley Project and mitigation may include ground water 
banking and recharge projects. Such a plan shall not 
impact the water supply or water rights of any entity 
outside the Friant Division, Hidden unit, and 
Buchanan Unit of the Central Valley Project. Such a 
plan shall be subject to applicable provisions of Cali-
fornia water law and the Secretary’s use of Central 
Valley Project facilities to make Project water (other 
than water released from Friant Dam pursuant to 
this part) and water acquired through transfers avail-
able to existing south-of-Delta Central Valley Project 
contractors.’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘the Set-
tlement’’ and inserting ‘‘this part’’; 
(B) in paragraph (2), by striking ‘‘the Set-
tlement’’ and inserting ‘‘this part’’; 
(3) in subsection (c), by striking ‘‘the Settle-
ment’’ and inserting ‘‘this part’’; 
(4) by striking subsection (d) and inserting the 
following: 
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‘‘(d) MITIGATION OF IMPACTS.—Prior to October 1, 
2013, the Secretary shall identify— 
‘‘(1) the impacts associated with the release of 
Restoration Flows prescribed in this part; 
‘‘(2) the measures which shall be implemented to 
mitigate impacts on adjacent and downstream water 
users, landowners and agencies as a result of Restora-
tion Flows prescribed in this part; and 
‘‘(3) prior to the implementation of decisions or 
agreements to construct, improve, operate, or main-
tain facilities that the Secretary determines are need-
ed to implement this part, the Secretary shall imple-
ment all mitigations measures identified in subsection 
(d)(2) before Restoration Flows are commenced.’’; 
(5) in subsection (e), by striking ‘‘the Settle-
ment’’ and inserting ‘‘this part’’; 
(6) in subsection (f), by striking ‘‘the Settle-
ment’’ and all that follows through ‘‘section 10011’’ 
and insert ‘‘this part’’; 
(7) in subsection (g)— 
(A) by striking ‘‘the Settlement and’’ before 
this part; and 
(B) by striking ‘‘or exchange contract’’ and 
inserting ‘‘exchange contract, or water rights set-
tlement or holding contracts’’; 
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(8) in subsection (h)— 
(A) by striking ‘‘INTERIM’’ in the header; 
(B) in paragraph (1)— 
(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 inserting 
‘‘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 
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(E) by striking paragraph (4) and inserting 
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 future 
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 implemen-
tation 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’’; 
(II) by striking ‘‘; and’’ and in-
serting a period; and 
(iv) by striking subparagraph (C); and 
(B) by striking paragraph (3); and 
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(10) by adding at the end the following new sub-
sections: 
‘‘(k) NO IMPACTS ON OTHER INTERESTS.—No Central 
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 implemen-
tation of this section shall be imposed directly or indirectly 
on any Central Valley Project contractor, or any other per-
son 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 reduction in water 
supplies or water reliability on any Central 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 Valley 
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, 
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including Title IV of the Sacramento and San Joaquin Val-
leys Water Reliability Act, this part preempts and super-
sedes any State law, regulation, or requirement that im-
poses more restrictive requirements or regulations on the ac-
tivities 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-Co-
logne Water Quality Control Act (California Water Code 
sections 13000 et seq.). Any such order shall be consistent 
with the congressional authorization for any affected Fed-
eral facility as it pertains to the Central Valley Project. 
‘‘(n) PROJECT IMPLEMENTATION.—Projects to imple-
ment 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 
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‘‘(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 Settlement 
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 Secretary’’; 
and 
(ii) by striking ‘‘the Settlement author-
ized 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 
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(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’’. 
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part. Any Central Valley Project long-term water 
service or repayment contractor within the Friant Di-
vision, Hidden unit, or Buchanan Unit adversely af-
fected by the Secretary’s failure to comply with sec-
tion 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’’ 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)— 
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(i) in subparagraph (A), by striking 
‘‘(A) IN GENERAL.—The Secretary’’ and in-
serting ‘‘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 Set-
tlement, or’’; and 
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(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’’ after ‘‘this part’’; and 
(B) in paragraph (4)(C), by striking ‘‘the 
Settlement and’’ after ‘‘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 ‘‘Res-
toration Flows, pursuant to this part’’; 
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(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 insert-
ing ‘‘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 ‘‘Restora-
tion 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 sub-
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title’’ and inserting ‘‘Restoration Flows authorized in 
this part’’; 
(2) in paragraph (2), by striking ‘‘the Interim or 
Restoration Flows authorized in part I of this sub-
title’’ and inserting ‘‘Restoration Flows authorized 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 Restoration 
Flows as described in this part’’; 
(B) in subparagraph (C)— 
(i) by striking ‘‘the Interim or Restora-
tion Flows authorized in part I of this sub-
title’’ and inserting ‘‘Restoration Flows au-
thorized 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 
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(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 agreeable 
terms and conditions. 
(2) Upon request of the contractor, the Secretary 
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 con-
tract under subsection (c)(1) of section 9 of said Act, 
under mutually agreeable terms and conditions. 
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(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 Valley 
Project Schedule of Irrigation Capital Alloca-
tions by Contractor, as adjusted to reflect pay-
ments not reflected in such schedule, and prop-
erly assignable for ultimate return by the con-
tractor, 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 subsection 
(c)(2), construction costs or other capitalized 
costs incurred after the effective date of the con-
verted contract or not reflected in the schedule 
referenced in subparagraph (A), and properly 
assignable to such contractor, shall be repaid in 
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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 con-
tractors 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; 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 iden-
tified in the most current version of the Central 
Valley Project Schedule of Municipal and Indus-
trial Water Rates, as adjusted to reflect pay-
ments not reflected in such schedule, and prop-
erly assignable for ultimate return by the con-
tractor, no later than January 31, 2016. An esti-
mate of the remaining amount of construction 
costs as of January 31, 2016, as adjusted, shall 
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be provided by the Secretary of the Interior to 
each contractor no later than 180 days after en-
actment; and 
(B) require that, notwithstanding subsection 
(c)(2), construction costs or other capitalized 
costs incurred after the effective date of the con-
tract 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 alloca-
tion 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. 
(b) FINAL ADJUSTMENT.—The amounts paid pursuant 
to subsection (a) shall be subject to adjustment following 
a final cost allocation by the Secretary of the Interior 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 contractor are greater than 
what has been paid by the contractor, the contractor shall 
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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 con-
tractor has paid, the Secretary of the Interior 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 subsection (a)(3)(B) or subsection (b), upon a 
contractor’s compliance with and discharge of the ob-
ligation of repayment of the construction costs as pro-
vided in subsection (a)(3)(A), the ownership and full- 
cost pricing limitations of any provision of Federal 
reclamation law shall not apply to lands in such dis-
trict. 
(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 re-
payment of the construction costs as provided in 
paragraphs (3)(A) and (4)(A) of subsection (a), such 
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contractor shall continue to pay applicable operation 
and maintenance costs and other charges applicable 
to such repayment contracts pursuant to the then-cur-
rent 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 con-
tractors absent this section, including operations and main-
tenance 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 paragraph 
(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. 
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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 water stor-
age facility taken by the Secretary or the Secretary 
of the Department of Commerce to conserve, enhance, 
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recover, or otherwise 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 con-
sistent 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 op-
eration 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 strictly 
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 utilized 
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 
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Project diversions and deliveries to other contractors, the 
Secretary is directed, 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 Watershed 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 SUP-
PLIES.—Nothing in subsection (a) shall be deemed to (i) 
modify any provision of a water service contract that ad-
dresses municipal and industrial water shortage policies of 
the Secretary, (ii) affect or limit the authority of the Sec-
retary 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 
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Project municipal and industrial contractors pursuant to 
such policies. Neither subsection (a) nor the Secretary’s im-
plementation of subsection (a) shall constrain, govern or af-
fect, directly or indirectly, the operations of the Central Val-
ley 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 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 
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 redirected 
adverse water supply or fiscal impacts to those within the 
Sacramento River watershed or to the State Water Project 
arising from the Secretary’s operation of the Central Valley 
Project to meet legal obligations imposed by or through any 
State or Federal agency, including, but not limited to those 
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legal obligations 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 improv-
ing water supply or addressing environmental needs of the 
Bay Delta. 
TITLE V—MISCELLANOUS 
SEC. 501. PRECEDENT. 
Congress finds and declares that— 
(1) coordinated operations between the Central 
Valley Project and the State Water Project, previously 
requested and consented to by the State of California 
and the Federal Government, require assertion of Fed-
eral supremacy to protect existing water rights 
throughout the system; and 
(2) these circumstances are unique to California. 
Therefore, nothing in this Act shall serve as precedent in 
any other State. 
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Union Calendar No. 280 
112TH CONGRESS 
2D SESSION 
H. R. 1837 
[Report No. 112–403] 
A BILL 
To address certain water-related concerns on the 
San Joaquin River, and for other purposes. 
FEBRUARY 27, 2012 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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