HR 1837 PCS 
age the use of Central Valley Project facilities to ex-
change, impound, store, carry, or deliver nonproject 
water for any beneficial purpose.’’. 
(b) REPORTING REQUIREMENTS.—Section 3408(f) of 
the Central Valley Project Improvement Act (106 Stat. 
4729) is amended— 
(1) by striking ‘‘Interior and Insular Affairs 
and the Committee on Merchant Marine and Fish-
eries’’ and inserting ‘‘Natural Resources’’; 
(2) in the second sentence, by inserting before 
the period at the end the following: ‘‘, including 
progress on the plan required by subsection (j)’’; and 
(3) by adding at the end the following: ‘‘The fil-
ing and adequacy of such report shall be personally 
certified to the Committees referenced above by the 
Regional Director of the Mid-Pacific Region of the 
Bureau of Reclamation.’’. 
(c) PROJECT YIELD INCREASE.—Section 3408(j) of 
the Central Valley Project Improvement Act (106 Stat. 
4730) is amended as follows: 
(1) By redesignating paragraphs (1) through 
(7) as subparagraphs (A) through (G), respectively. 
(2) By striking ‘‘In order to minimize adverse 
effects, if any, upon’’ and inserting ‘‘(1) IN GEN-
ERAL.—In order to minimize adverse effects upon’’. 
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(3) By striking ‘‘needs, the Secretary,’’ and all 
that follows through ‘‘submit to the Congress, a’’ 
and inserting ‘‘needs, the Secretary, on a priority 
basis and not later than September 30, 2013, shall 
submit to Congress a’’. 
(4) By striking ‘‘increase,’’ and all that follows 
through ‘‘options:’’ and inserting ‘‘increase, as soon 
as possible but not later than September 30, 2016 
(except for the construction of new facilities which 
shall not be limited by that deadline), the water of 
the Central Valley Project by the amount dedicated 
and managed for fish and wildlife purposes under 
this title and otherwise required to meet the pur-
poses of the Central Valley Project including satis-
fying contractual obligations. The plan required by 
this subsection shall include recommendations on ap-
propriate cost-sharing arrangements and authorizing 
legislation or other measures needed to implement 
the intent, purposes, and provisions of this sub-
section and a description of how the Secretary in-
tends to use the following options—’’. 
(5) In subparagraph (A), by inserting ‘‘and 
construction of new water storage facilities’’ before 
the semicolon. 
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(6) In subparagraph (F), by striking ‘‘and’’ at 
the end. 
(7) In subparagraph (G), by striking the period 
and all that follows through the end of the sub-
section and inserting ‘‘; and’’. 
(8) By inserting after subparagraph (G) the fol-
lowing: 
‘‘(H) Water banking and recharge.’’. 
(9) By adding at the end the following: 
‘‘(2) IMPLEMENTATION
OF
PLAN.—The Sec-
retary shall implement the plan required by para-
graph (1) commencing on October 1, 2013. In order 
to carry out this subsection, the Secretary shall co-
ordinate with the State of California in imple-
menting measures for the long-term resolution of 
problems in the San Francisco Bay/Sacramento-San 
Joaquin Delta Estuary. 
‘‘(3) FAILURE OF THE PLAN.—Notwithstanding 
any other provision of Federal reclamation law, if by 
September 30, 2016, the plan required by paragraph 
(1) fails to increase the annual delivery capability of 
the Central Valley Project by 800,000 acre-feet, im-
plementation of any non-mandatory action under 
section 3406(b)(2) shall be suspended until the plan 
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achieves an increase in the annual delivery capability 
of the Central Valley Project by 800,000 acre-feet.’’. 
(d) TECHNICAL CORRECTION.—Section 3408(h) of 
the Central Valley Project Improvement Act (106 Stat. 
4729) is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(h)(2)’’ and inserting ‘‘paragraph (2)’’; and 
(2) in paragraph (2), by striking ‘‘paragraph 
(h)(i)’’ and inserting ‘‘paragraph (1)’’. 
(e) WATER STORAGE PROJECT CONSTRUCTION.— 
The Secretary, acting through the Commissioner of the 
Bureau of Reclamation, may partner or enter into an 
agreement on the water storage projects identified in sec-
tion 103(d)(1) of the Water Supply Reliability, and Envi-
ronmental Improvement Act (Public Law 108–361)(and 
Acts supplemental and amendatory to the Act) with local 
joint powers authorities formed pursuant to State law by 
irrigation districts and other local water districts and local 
governments within the applicable hydrologic region, to 
advance these projects. No additional Federal funds are 
authorized for the activities authorized in sections 
103(d)(1)(A)(i), 103(d)(1)(A)(ii), and 103(d)(1)(A)(iii) of 
Public Law 108–361. However, each water storage project 
under sections 103(d)(1)(A)(i), 103(d)(1)(A)(ii), and 
103(d)(1)(A)(iii) of Public Law 108–361 is authorized for 
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construction if non-Federal funds are used for financing 
and constructing the project. 
SEC. 108. BAY-DELTA ACCORD. 
(a) CONGRESSIONAL DIRECTION REGARDING CEN-
TRAL VALLEY PROJECT AND CALIFORNIA STATE WATER 
PROJECT OPERATIONS.—The Central Valley Project and 
the State Water Project shall be operated pursuant to the 
water quality standards and operational constraints de-
scribed in the ‘‘Principles for Agreement on the Bay-Delta 
Standards Between the State of California and the Fed-
eral Government’’ dated December 15, 1994, and such op-
erations shall proceed without regard to the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.) or any other 
law pertaining to the operation of the Central Valley 
Project and the California State Water Project. Imple-
mentation of this section shall be in strict conformance 
with the ‘‘Principles for Agreement on the Bay-Delta 
Standards Between the State of California and the Fed-
eral Government’’ dated December 15, 1994. 
(b) APPLICATION OF LAWS TO OTHERS.—Neither a 
Federal department nor the State of California, including 
any agency or board of the State of California, shall im-
pose on any water right obtained pursuant to State law, 
including a pre-1914 appropriative right, any condition 
that restricts the exercise of that water right in order to 
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conserve, enhance, recover or otherwise protect any species 
that is affected by operations of the Central Valley Project 
or California State Water Project. Nor shall the State of 
California, including any agency or board of the State of 
California, restrict the exercise of any water right obtained 
pursuant to State law, including a pre-1914 appropriative 
right, in order to protect, enhance, or restore under the 
Public Trust Doctrine any public trust value. Implementa-
tion of the ‘‘Principles for Agreement on the Bay-Delta 
Standards Between the State of California and the Fed-
eral Government’’ dated December 15, 1994, shall be in 
strict compliance with the water rights priority system and 
statutory protections for areas of origin. 
(c) COSTS.—No cost associated with the implementa-
tion of this section shall be imposed directly or indirectly 
on any Central Valley Project contractor, or any other per-
son or entity, unless such costs are incurred on a voluntary 
basis. 
(d) NATIVE SPECIES PROTECTION.—California law is 
preempted with respect to any restriction on the quantity 
or size of nonnative fish taken or harvested that preys 
upon one or more native fish species that occupy the Sac-
ramento and San Joaquin Rivers and their tributaries or 
the Sacramento-San Joaquin Rivers Delta. 
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SEC. 109. NATURAL AND ARTIFICIALLY SPAWNED SPECIES. 
After the date of the enactment of this title, and re-
gardless of the date of listing, the Secretaries of the Inte-
rior and Commerce shall not distinguish between natural- 
spawned and hatchery-spawned or otherwise artificially 
propagated strains of a species in making any determina-
tion under the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.) that relates to any anadromous fish 
species present in the Sacramento and San Joaquin Rivers 
or their tributaries and ascend those rivers and their trib-
utaries to reproduce after maturing in San Francisco Bay 
or the Pacific Ocean. 
SEC. 110. AUTHORIZED SERVICE AREA. 
The authorized service area of the Central Valley 
Project shall include the area within the boundaries of the 
Kettleman City Community Services District, California, 
as those boundaries exist on the date of the enactment 
of this title. Notwithstanding the provisions of the Act of 
October 30, 1992 (Public Law 102–575, 106 Stat. 4600 
et seq.), upon enactment of this title, the Secretary is au-
thorized and directed to enter into a long-term contract 
in accordance with the reclamation laws with the 
Kettleman City Community Services District, California, 
for the delivery of up to 900 acre-feet of Central Valley 
Project water for municipal and industrial use. The Sec-
retary may temporarily reduce deliveries of the quantity 
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of water made available pursuant to up to 25 percent of 
such total whenever reductions due to hydrologic cir-
cumstances are imposed upon agricultural deliveries of 
Central Valley Project water. If any additional infrastruc-
ture or related-costs are needed to implement this section, 
such costs shall be the responsibility of the non-Federal 
entity. 
SEC. 111. REGULATORY STREAMLINING. 
(a) APPLICABILITY OF CERTAIN LAWS.—Filing of a 
Notice of Determination or a Notice of Exemption for any 
project, including the issuance of a permit under State 
law, related to any project of the CVP or the delivery of 
water therefrom in accordance with the California Envi-
ronmental Quality Act shall be deemed to meet the re-
quirements of section 102(2)(C) of the National Environ-
mental Protection Act of 1969 (42 U.S.C. 4332(2)(C)) for 
that project or permit. 
(b) CONTINUATION OF PROJECT.—The Bureau of 
Reclamation shall not be required to cease or modify any 
major Federal action or other activity related to any 
project of the CVP or the delivery of water there from 
pending completion of judicial review of any determination 
made under the National Environmental Protection Act 
of 1969 (42 U.S.C. 4332(2)(C)). 
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(c) PROJECT DEFINED.—For the purposes of this 
section: 
(1) CVP.—The term ‘‘CVP’’ means the Central 
Valley Project. 
(2) PROJECT.—The term ‘‘project’’— 
(A) means an activity that— 
(i) is undertaken by a public agency, 
funded by a public agency, or that requires 
an issuance of a permit by a public agency; 
(ii) has a potential to result in phys-
ical change to the environment; and 
(iii) may be subject to several discre-
tionary approvals by governmental agen-
cies; 
(B) may include construction activities, 
clearing or grading of land, improvements to 
existing structures, and activities or equipment 
involving the issuance of a permit; or 
(C) as defined under the California Envi-
ronmental Quality Act in section 21065 of the 
California Public Resource Code. 
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HR 1837 PCS 
TITLE II—SAN JOAQUIN RIVER 
RESTORATION 
SEC. 201. REPEAL OF THE SAN JOAQUIN RIVER SETTLE-
MENT. 
As of the date of enactment of this title, the Secretary 
shall cease any action to implement the Stipulation of Set-
tlement (Natural Resources Defense Council, et al. v. Kirk 
Rodgers, et al., Eastern District of California, No. Civ. 
S–88–1658 LKK/GGH). 
SEC. 202. PURPOSE. 
Section 10002 of the San Joaquin River Restoration 
Settlement Act (Public Law 111–11) is amended by strik-
ing ‘‘implementation of the Settlement’’ and inserting 
‘‘restoration 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 
additional 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.’’; 
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(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 
Calendar Year, both dates inclusive.’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(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 De-
partment of Water Resources.’’. 
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 
inserting ‘‘authorized to carry out the fol-
lowing:’’; 
(B) by striking paragraphs (1), (2), (4), 
and (5); 
(C) in paragraph (3)— 
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(i) by striking ‘‘(3)’’ and inserting 
‘‘(1)’’; and 
(ii) by striking ‘‘paragraph 13 of the 
Settlement’’ and inserting ‘‘this part’’; and 
(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; 
‘‘(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 
riparian 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 
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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 
California, a reasonable plan, to fully recirculate, re-
capture, reuse, exchange, or transfer all Restoration 
Flows and provide such recirculated, recaptured, re-
used, exchanged, or transferred flows to those con-
tractors within the Friant Division, Hidden Unit, 
and Buchanan Unit of the Central Valley Project 
that relinquished the Restoration Flows so recir-
culated, recaptured, reused, exchanged, or trans-
ferred. Such a plan shall address any impact on 
ground water resources within the service area of 
the Friant Division, Hidden Unit, and Buchanan 
Unit of the Central Valley 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 sub-
ject to applicable provisions of California water law 
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and the Secretary’s use of Central Valley Project fa-
cilities to make Project water (other than water re-
leased from Friant Dam pursuant to this part) and 
water acquired through transfers available to exist-
ing south-of-Delta Central Valley Project contrac-
tors.’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘the Set-
tlement’’ and inserting ‘‘this part’’; and 
(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: 
‘‘(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 
Restoration Flows prescribed in this part; and 
‘‘(3) prior to the implementation of decisions or 
agreements to construct, improve, operate, or main-
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tain facilities that the Secretary determines are 
needed to implement this part, the Secretary shall 
implement all mitigations measures identified in sub-
section (d)(2) before Restoration Flows are com-
menced.’’; 
(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’’ be-
fore this part; and 
(B) by striking ‘‘or exchange contract’’ and 
inserting ‘‘exchange contract, or water rights 
settlement or holding contracts’’; 
(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)— 
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(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 
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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 
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HR 1837 PCS 
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 
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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— 
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(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— 
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(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), 
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(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 
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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)— 
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(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 
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(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-
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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 
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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). 
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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— 
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(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 
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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 
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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-
lowing a final cost allocation by the Secretary of the Inte-
rior 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 con-
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tractor, the contractor shall be obligated to pay the re-
maining allocated costs. The term of such additional re-
payment contract shall be no less than 1 year and no more 
than 10 years, however, mutually agreeable provisions re-
garding the rate of repayment of such amount may be de-
veloped by the parties. In the event that the final cost allo-
cation indicates that the costs properly assignable to the 
contractor are less than what the contractor has paid, the 
Secretary of the Interior is authorized and directed to 
credit such overpayment as an offset against any out-
standing 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 
obligation of repayment of the construction costs as 
provided in subsection (a)(3)(A), the ownership and 
full-cost pricing limitations of any provision of Fed-
eral reclamation law shall not apply to lands in such 
district. 
(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 
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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. 
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HR 1837 PCS 
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 
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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-
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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 
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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 
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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: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 332 
112TH CONGRESS 
2D SESSION 
H. R. 1837 
AN ACT 
To address certain water-related concerns on the 
San Joaquin River, and for other purposes. 
MARCH 5, 2012 
Read the second time and placed on the calendar 
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