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that requires the Secretary to charge the other party to 
such contract only for water actually delivered by the Sec-
retary.’’. 
SEC. 104. WATER TRANSFERS, IMPROVED WATER MANAGE-
MENT, AND CONSERVATION. 
Section 3405 of the Central Valley Project Improve-
ment Act (106 Stat. 4709) is amended as follows: 
(1) In subsection (a)— 
(A) by inserting before ‘‘Except as pro-
vided herein’’ the following: ‘‘The Secretary 
shall take all necessary actions to facilitate and 
expedite transfers of Central Valley Project 
water in accordance with this Act or any other 
provision of Federal reclamation law and the 
National Environmental Policy Act of 1969.’’; 
(B) in paragraph (1)(A), by striking ‘‘to 
combination’’ and inserting ‘‘or combination’’; 
(C) in paragraph (2), by adding at the end 
the following: 
‘‘(E) The contracting district from which 
the water is coming, the agency, or the Sec-
retary shall determine if a written transfer pro-
posal is complete within 45 days after the date 
of submission of such proposal. If such district 
or agency or the Secretary determines that such 
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proposal is incomplete, such district or agency 
or the Secretary shall state with specificity 
what must be added to or revised in order for 
such proposal to be complete. 
‘‘(F) Except as provided in this section, 
the Secretary shall not impose mitigation or 
other requirements on a proposed transfer, but 
the contracting district from which the water is 
coming or the agency shall retain all authority 
under State law to approve or condition a pro-
posed transfer.’’; and 
(D) by adding at the end the following: 
‘‘(4) Notwithstanding any other provision of 
Federal reclamation law— 
‘‘(A) the authority to make transfers or ex-
changes of, or banking or recharge arrange-
ments using, Central Valley Project water that 
could have been conducted before October 30, 
1992, is valid, and such transfers, exchanges, 
or arrangements shall not be subject to, limited, 
or conditioned by this title; and 
‘‘(B) this title shall not supersede or re-
voke the authority to transfer, exchange, bank, 
or recharge Central Valley Project water that 
existed prior to October 30, 1992.’’. 
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(2) In subsection (b)— 
(A) in the heading, by striking ‘‘METER-
ING’’ and inserting ‘‘MEASUREMENT’’; and 
(B) by inserting after the first sentence 
the following: ‘‘The contracting district or agen-
cy, not including contracting districts serving 
multiple agencies with separate governing 
boards, shall ensure that all contractor-owned 
water delivery systems within its boundaries 
measure surface water at the district or agen-
cy’s facilities up to the point the surface water 
is commingled with other water supplies.’’. 
(3) By striking subsection (d). 
(4) By redesignating subsections (e) and (f) as 
subsections (d) and (e), respectively. 
(5) By amending subsection (e)(as redesignated 
by paragraph (4))— 
(A) by striking ‘‘as a result of the in-
creased repayment’’ and inserting ‘‘that exceed 
the cost-of-service’’; 
(B) by inserting ‘‘the delivery of’’ after 
‘‘rates applicable to’’; and 
(C) by striking ‘‘, and all increased reve-
nues received by the Secretary as a result of the 
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increased water prices established under sub-
section 3405(d) of this section,’’. 
SEC. 105. FISH, WILDLIFE, AND HABITAT RESTORATION. 
Section 3406 of the Central Valley Project Improve-
ment Act (106 Stat. 4714) is amended as follows: 
(1) In subsection (b)— 
(A) in paragraph (1)(B)— 
(i) by striking ‘‘is authorized and di-
rected to’’ and inserting ‘‘may’’; 
(ii) by inserting ‘‘reasonable water’’ 
after ‘‘to provide’’; 
(iii) by striking ‘‘anadromous fish, ex-
cept that such’’ and inserting ‘‘anad-
romous fish. Such’’; 
(iv) by striking ‘‘Instream flow’’ and 
inserting ‘‘Reasonable instream flow’’; 
(v) by inserting ‘‘and the National 
Marine Fisheries Service’’ after ‘‘United 
States Fish and Wildlife Service’’; and 
(vi) by striking ‘‘California Depart-
ment of Fish and Game’’ and inserting 
‘‘United States Geological Survey’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘primary purpose’’ and 
inserting ‘‘purposes’’; 
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(ii) by striking ‘‘but not limited to’’ 
before ‘‘additional obligations’’; and 
(iii) by adding after the period the fol-
lowing: ‘‘All Central Valley Project water 
used for the purposes specified in this 
paragraph shall be credited to the quantity 
of Central Valley Project yield dedicated 
and managed under this paragraph by de-
termining how the dedication and manage-
ment of such water would affect the deliv-
ery capability of the Central Valley Project 
during the 1928 to 1934 drought period 
after fishery, water quality, and other flow 
and operational requirements imposed by 
terms and conditions existing in licenses, 
permits, and other agreements pertaining 
to the Central Valley Project under appli-
cable State or Federal law existing on Oc-
tober 30, 1992, have been met. To the full-
est extent possible and in accordance with 
section 3411, Central Valley Project water 
dedicated and managed pursuant to this 
paragraph shall be reused to fulfill the 
Secretary’s remaining contractual obliga-
tions to provide Central Valley Project 
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water for agricultural or municipal and in-
dustrial purposes.’’; 
(C) by amending paragraph (2)(C) to read: 
‘‘(C) If by March 15th of any year the 
quantity of Central Valley Project water fore-
casted to be made available to water service or 
repayment contractors in the Delta Division of 
the Central Valley Project is below 75 percent 
of the total quantity of water to be made avail-
able under said contracts, the quantity of Cen-
tral Valley Project yield dedicated and managed 
for that year under this paragraph shall be re-
duced by 25 percent.’’. 
(2) By adding at the end the following: 
‘‘(i) SATISFACTION
OF
PURPOSES.— 
By pursuing the activities described in this 
section, the Secretary shall be deemed to 
have met the mitigation, protection, res-
toration, and enhancement purposes of this 
title.’’. 
SEC. 106. RESTORATION FUND. 
(a) IN GENERAL.—Section 3407(a) of the Central 
Valley Project Improvement Act (106 Stat. 4726) is 
amended as follows: 
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(1) By inserting ‘‘(1) IN GENERAL.—’’ before 
‘‘There is hereby’’. 
(2) By striking ‘‘Not less than 67 percent’’ and 
all that follows through ‘‘Monies’’ and inserting 
‘‘Monies’’. 
(3) By adding at the end the following: 
‘‘(2) PROHIBITIONS.—The Secretary may not directly 
or indirectly require a donation or other payment to the 
Restoration Fund— 
‘‘(A) or environmental restoration or mitigation 
fees not otherwise provided by law, as a condition 
to— 
‘‘(i) providing for the storage or convey-
ance of non-Central Valley Project water pursu-
ant to Federal reclamation laws; or 
‘‘(ii) the delivery of water pursuant to sec-
tion 215 of the Reclamation Reform Act of 
1982 (Public Law 97–293; 96 Stat. 1270); or 
‘‘(B) for any water that is delivered with the 
sole intent of groundwater recharge.’’. 
(b) CERTAIN PAYMENTS.—Section 3407(c)(1) of the 
Central Valley Project Improvement Act is amended— 
(1) by striking ‘‘mitigation and restoration’’; 
(2) by striking ‘‘provided for or’’; and 
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(3) by striking ‘‘of fish, wildlife’’ and all that 
follows through the period and inserting ‘‘of carrying 
out all activities described in this title.’’. 
(c) ADJUSTMENT AND ASSESSMENT OF MITIGATION 
AND RESTORATION PAYMENTS.—Section 3407(d)(2) of 
the Central Valley Project Improvement Act is amended 
by inserting ‘‘, or after October 1, 2013, $4 per megawatt- 
hour for Central Valley Project power sold to power con-
tractors (October 2013 price levels)’’ after ‘‘$12 per acre- 
foot (October 1992 price levels) for municipal and indus-
trial water sold and delivered by the Central Valley 
Project’’. 
(d) 
COMPLETION
OF
ACTIONS.—Section 
3407(d)(2)(A) of the Central Valley Project Improvement 
Act is amended by inserting ‘‘no later than December 31, 
2020,’’ after ‘‘That upon the completion of the fish, wild-
life, and habitat mitigation and restoration actions man-
dated under section 3406 of this title,’’. 
(e) REPORT; ADVISORY BOARD.—Section 3407 of the 
Central Valley Project Improvement Act (106 Stat. 4714) 
is amended by adding at the end the following: 
‘‘(g) REPORT ON EXPENDITURE OF FUNDS.—At the 
end of each fiscal year, the Secretary, in consultation with 
the Restoration Fund Advisory Board, shall submit to 
Congress a plan for the expenditure of all of the funds 
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deposited into the Restoration Fund during the preceding 
fiscal year. Such plan shall contain a cost-effectiveness 
analysis of each expenditure. 
‘‘(h) ADVISORY BOARD.— 
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished the Restoration Fund Advisory Board (herein-
after in this section referred to as the ‘Advisory 
Board’) composed of 12 members selected by the 
Secretary, each for four-year terms, one of whom 
shall be designated by the Secretary as Chairman. 
The members shall be selected so as to represent the 
various Central Valley Project stakeholders, four of 
whom shall be from CVP agricultural users, three 
from CVP municipal and industrial users, three 
from CVP power contractors, and two at the discre-
tion of the Secretary. The Secretary and the Sec-
retary of Commerce may each designate a represent-
ative to act as an observer of the Advisory Board. 
‘‘(2) DUTIES.—The duties of the Advisory 
Board are as follows: 
‘‘(A) To meet at least semiannually to de-
velop and make recommendations to the Sec-
retary regarding priorities and spending levels 
on projects and programs carried out pursuant 
to the Central Valley Project Improvement Act. 
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‘‘(B) To ensure that any advice or rec-
ommendation made by the Advisory Board to 
the Secretary reflect the independent judgment 
of the Advisory Board. 
‘‘(C) Not later than December 31, 2013, 
and annually thereafter, to transmit to the Sec-
retary and Congress recommendations required 
under subparagraph (A). 
‘‘(D) Not later than December 31, 2013, 
and biennially thereafter, to transmit to Con-
gress a report that details the progress made in 
achieving the actions mandated under section 
3406 of this title. 
‘‘(3) ADMINISTRATION.—With the consent of 
the appropriate agency head, the Advisory Board 
may use the facilities and services of any Federal 
agency.’’. 
SEC. 107. ADDITIONAL AUTHORITIES. 
(a) AUTHORITY FOR CERTAIN ACTIVITIES.—Section 
3408(c) of the Central Valley Project Improvement Act 
(106 Stat. 4728) is amended to read as follows: 
‘‘(c) CONTRACTS FOR ADDITIONAL STORAGE AND 
DELIVERY OF WATER.— 
‘‘(1) IN GENERAL.—The Secretary is authorized 
to enter into contracts pursuant to Federal reclama-
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tion law and this title with any Federal agency, Cali-
fornia water user or water agency, State agency, or 
private organization for the exchange, impoundment, 
storage, carriage, and delivery of nonproject water 
for domestic, municipal, industrial, fish and wildlife, 
and any other beneficial purpose. 
‘‘(2) LIMITATION.—Nothing in this subsection 
shall be deemed to supersede the provisions of sec-
tion 103 of Public Law 99–546 (100 Stat. 3051). 
‘‘(3) AUTHORITY FOR CERTAIN ACTIVITIES.— 
The Secretary shall use the authority granted by 
this subsection in connection with requests to ex-
change, impound, store, carry, or deliver nonproject 
water using Central Valley Project facilities for any 
beneficial purpose. 
‘‘(4) RATES.—The Secretary shall develop rates 
not to exceed the amount required to recover the 
reasonable costs incurred by the Secretary in con-
nection with a beneficial purpose under this sub-
section. Such rates shall be charged to a party using 
Central Valley Project facilities for such purpose. 
Such costs shall not include any donation or other 
payment to the Restoration Fund. 
‘‘(5) CONSTRUCTION.—This subsection shall be 
construed and implemented to facilitate and encour-
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