(3) expenditures in the past fiscal year and year
to date for implementing the Calfed Bay-Delta Pro-
gram; and
(4) accomplishments in the past fiscal year and
year to date in achieving the objectives of
improved—
(A) water storage;
(B) water quality;
(C) water use efficiency;
(D) ecosystem restoration;
(E) watershed management;
(F) levee system integrity;
(G) water transfers;
(H) water conveyances; and
(I) water supply reliability.
The report shall discuss the status of Calfed Bay-Delta
Program goals, current schedules, and relevant financing
agreements. Each of the above-listed categories must be
considered in determining whether the Program is pro-
ceeding in a balanced manner.
(b) REVISED SCHEDULE.—If the report provided for
in subsection (a) concludes that the Calfed Bay-Delta Pro-
gram is not progressing in a balanced manner so that no
certification of balanced implementation can be made, the
Calfed Policy Group shall prepare a revised schedule and
such other modifications, to ensure the Calfed Bay-Delta
Program will progress in a balanced manner consistent
with the intent of the Record of Decision. This revised
schedule is subject to approval by the Secretary and the
Governor and shall be submitted to the appropriate au-
thorizing and appropriating Committees of the Senate and
the House of Representatives.
(c) FINANCIAL SUMMARY.—In addition to the report
required pursuant to subsection (a), no later than Feb-
ruary 15 of each year the Secretary shall submit to the
appropriate authorizing and appropriating committees of
the Senate and the House of Representatives a financial
report containing a detailed accounting of all funds re-
ceived by Federal and State agencies for implementing the
Plan in the previous fiscal year budget and a budget for
the proposed projects to be carried out in the upcoming
fiscal year with the Federal portion of funds authorized
under this Act.
(d) CROSSCUT BUDGET REPORTS.—Not later than
February 15, 2003, and annually thereafter through Feb-
ruary 15, 2008, the Director of the Office of Management
and Budget shall submit to the appropriate authorizing
and appropriating committees of the Senate and the
House of Representatives an inter-agency budget crosscut
report that—
(1) displays the proposed Federal spending, for
the fiscal year in which the report is submitted and
for each subsequent fiscal year through 2007, on im-
plementation of the Calfed Bay-Delta Program; and
(2) identifies all expenditures to date within the
Federal and State governments used to achieve the
objectives of the Calfed Bay-Delta Program.
SEC. 6. AUTHORIZATION REQUIREMENTS FOR CERTAIN
CONSTRUCTION AND ACQUISITION ACTIVI-
TIES.
(a) CONSTRUCTION AND ACQUISITION ACTIVITIES.—
The process for authorizing appropriations to pay the
Federal share of the costs of acquisition of land and assets
for the Environmental Water Account as part of the
Calfed Bay-Delta Program, where such share exceeds $10
million, and the process for authorizing the construction
of projects as part of the Calfed Bay-Delta Program,
where the Federal share of such costs exceeds $10 million,
shall be as follows:
(1) REPORT.—Every odd-numbered year after
the date of enactment of this Act, at the same time
the Secretary submits the report described in section
5(a), the Calfed Policy Group, acting through the
Secretary, shall submit to the appropriate author-
izing and appropriating Committees a report cov-
ering the next two fiscal years setting forth the list
of projects and other actions that are proposed for
construction or acquisition and a listing of proposed
acquisition for the Environmental Water Account, as
described in section 6(a). The Calfed Policy Group
and the Secretary shall certify that implementation
of the Calfed Bay-Delta Program in the manner set
forth in the report will result in balanced implemen-
tation in all Calfed Bay-Delta Program areas.
(2) AUTHORIZATION REQUIRED.—No amounts
may be appropriated for any fiscal year for any
project or acquisition in which the total Federal
share is in excess of $10 million for construction,
land acquisition, or acquisition of assets for the En-
vironmental Water Account, unless the project or ac-
quisition has been specifically authorized by law.
(3) INTENT OF CONGRESS.—It is the intent of
Congress that the authorizations and appropriations
for implementation of the Calfed Bay-Delta Program
shall promote and carry out the fundamental prin-
ciple that the Calfed Bay-Delta Program compo-
nents, consisting of water storage, ecosystem res-
toration, water supply reliability, conveyance, water
use efficiency, water quality, water transfers, water-
sheds, Environmental Water Account, levee stability,
governance, and science, must progress together in
a balanced manner.
(4) FAILURE TO AUTHORIZE OR FUND.—If the
Congress, through the authorization and appropria-
tion process amends, or fails to authorize or fund,
the projects or acquisitions included in a report sub-
mitted pursuant to subsection (a)(1), the Secretary
shall, in consultation with the Calfed Policy Group,
redetermine whether implementation of the projects
and acquisitions, as authorized or funded, respec-
tively, by the Congress will maintain balanced imple-
mentation in all Calfed Bay-Delta Program areas. If
the Secretary finds that implementation of such
projects or acquisitions, as so authorized or funded
by the Congress, will not maintain balanced imple-
mentation in all Program areas, the Secretary shall
report to the Congress the finding as part of the re-
port required under section 5(a) and recommend
those steps needed to restore balance to the imple-
mentation process, as part of the revised schedule
required under section 5(b).
(b) RECOMMENDATIONS AND REPORTS.—
(1) RECOMMENDATIONS
REGARDING
SPECIFIC
ACTIONS.—The Calfed Policy Group, through the
Secretary, shall include in the report under sub-
section (a) of this section recommendations with re-
spect to construction projects (including for surface
storage and groundwater storage) that would im-
prove water supply reliability and water quality and
recommendations with respect to acquisition of land
and assets for the Environmental Water Account
that would achieve Program goals.
(2) REPORTS ON CONSTRUCTION PROJECTS.—
With respect to construction projects with the Fed-
eral share of costs in excess of $10 million, the Sec-
retary, acting in cooperation with the Governor,
shall transmit to the appropriate authorizing and
appropriating committees of the Senate and the
House of Representatives the reports of the Calfed
Policy Group regarding such construction projects in
accordance with the time frames set forth in the
Record of Decision or such other time frames as
may be approved by the Calfed Policy Group. Such
reports shall include—
(A) a project description;
(B) feasibility and operational studies com-
pleted by the Secretary or the Governor, as ap-
propriate;
(C) environmental impact statements or re-
ports;
(D) a finding of consistency with the
record of decision as determined by the Calfed
Policy Group;
(E) findings of the Independent Science
Panel relative to the consistency of the Calfed
Bay-Delta Program goals;
(F) cost-benefit analysis;
(G) a plan for fulfilling mitigation require-
ments;
(H) identification of project benefits and
beneficiaries;
(I) cost allocation plan consistent with the
beneficiaries pay provisions of the Record of
Decision;
(J) financing and repayment plans based
upon commitments by beneficiaries that they
are willing and able to pay their allocated
share;
(K) progress in the acquisition of the Fed-
eral and State permits including permits under
section 404(a) of the Federal Water Pollution
Control Act (33 U.S.C. 1344) for implementa-
tion of projects in all identified program areas;
and
(L) a recommendation, based on the re-
sults of items (A) through (K) above, on wheth-
er to proceed with the project.
SEC. 7. ENVIRONMENTAL JUSTICE.
It is the intent of the Congress that—
(1) implementation of the Calfed Bay-Delta
Program by the Federal agencies and State agencies
should fulfill the commitment to addressing environ-
mental justice challenges referred to in the Calfed
Bay-Delta 
Program 
Environmental 
Justice
Workplan dated December 13, 2000;
(2) the Federal agencies and State agencies
should continue to collaborate to develop a com-
prehensive environmental justice workplan for the
Calfed Bay-Delta Program, including through con-
tinuation of the functions of the Calfed Bay-Delta
Environmental Justice Workgroup; and
(3) the Calfed Policy Group should collaborate
with such workgroup to ensure fulfillment of the
commitment referred to in paragraph (a).
SEC. 8. GRANTS TO FEDERAL AGENCIES FOR IMPLEMENTA-
TION OF RECORD OF DECISION.
The Secretary may, through interagency agreements
or other means, transfer funds appropriated to the Calfed
Bay-Delta Program to the Federal agencies assuming re-
sponsibility for the implementation of components of the
Calfed Bay-Delta Program pursuant to the Record of De-
cision.
SEC. 9. AUTHORIZATION OF WATER RECYCLING AND DE-
SALINATION STUDIES AND PROJECTS.
(a) PROJECTS.—The Secretary of the Interior shall
provide financial assistance for the planning, design, and
construction of the projects determined to be feasible by
the Bureau of Reclamation in—
(1) the Southern California Comprehensive
Water Reclamation and Reuse Study, dated April
2001 and authorized by section 1606 of the Rec-
lamation Wastewater and Groundwater Study and
Facilities Act (43 U.S.C. 390h–4); and
(2) the San Francisco Bay Area Regional
Water Recycling Program described in the San
Francisco Bay Area Regional Water Recycling Pro-
gram Recycled Water Master Plan, dated December
1999 and authorized by section 1611 of the Rec-
lamation Wastewater and Groundwater Study and
Facilities Act (43 U.S.C. 390h–9).
(b) STUDIES.—
(1) IN GENERAL.—The Secretary shall assist
the State of California and local water agencies in
California in the preparation of necessary studies of
water recycling, reclamation, reuse and desalination
projects to—
(A) ensure a long term, high quality, safe,
and adequate supply of municipal water to the
residents of California;
(B) reduce regional dependence on less re-
liable water supplies, including southern Cali-
fornia’s dependence on water from northern
California; and
(C) assist the State of California in lim-
iting its annual use of Colorado River water,
starting in 2016, to no more than 4,400,000
acre-feet per year in normal years.
(2) INCLUDED
PROJECTS.—Projects with re-
spect to which assistance is provided under this sub-
section may include—
(A) desalination of sea water and brackish
water supplies;
(B) recycling, reclamation, and reuse of
water supplies impaired by natural causes or
human activities; and
(C) construction of regional brine lines.
(3) 
PRIORITY
PROJECTS.—The 
Secretary
shall—
(A) in providing financial assistance under
this subsection, give priority consideration to
projects that include regional solutions to ben-
efit regional water supply and reliability needs;
and
(B) review any feasibility level studies for
seawater desalination and regional brine line
projects that have been completed, whether or
not those studies were prepared with financial
assistance from the Secretary; and
(C) report to the Congress within 90 days
after the completion of a feasibility study or the
review of a feasibility study for the purposes of
providing design and construction assistance for
the construction of desalination and regional
brine line projects.
(c) FEDERAL COST SHARE.—The Federal share of
the cost of any activity carried out with assistance under
this section may not exceed the lesser of 25 percent of
the total cost of the activity or $50,000,000.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
To pay the Federal share of the cost of carrying out
Stage 1 of the Record of Decision in accordance with this
Act, there are authorized to be appropriated to the Sec-
retary $2,402,000,000 for fiscal years 2003 through 2007.
Amounts appropriated under this subsection shall remain
available until expended.
SEC. 11. COMPLIANCE WITH STATE AND FEDERAL LAW.
Nothing in this Act preempts or otherwise affects any
Federal or State law.
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