SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Water Supply, Reli-
ability, and Environmental Improvement Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows:
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definitions. 
Sec. 4. Purposes. 
TITLE I—DEPARTMENT OF INTERIOR, COMPETITIVE GRANT 
PROGRAM 
Sec. 101. General authority. 
Sec. 102. Authority to study, plan, design, and construct. 
Sec. 103. Criteria for grants. 
Sec. 104. Annual report. 
Sec. 105. Authorization of appropriations. 
Sec. 106. Limitation on eligibility for funding. 
TITLE II—CALIFORNIA WATER SECURITY AND ENVIRONMENTAL 
ENHANCEMENT ACT 
Sec. 201. CALFED Bay-Delta Program. 
Sec. 202. Management. 
Sec. 203. Implementation schedule report. 
Sec. 204. Authorization of appropriations. 
Sec. 205. Federal share of costs. 
Sec. 206. Use of existing authorities and funds. 
Sec. 207. Compliance with State and Federal law. 
TITLE III—SALTON SEA 
Sec. 301. Funding to address Salton Sea. 
TITLE IV—ESTABLISHMENT OF CENTRALIZED REGULATORY 
OFFICE 
Sec. 401. Establishment of office. 
Sec. 402. Acceptance and expenditure of contributions. 
TITLE V—RURAL WATER SUPPLY PROGRAM 
Sec. 501. Rural water supply program.
SEC. 3. DEFINITIONS. 
For purposes of this Act:
(1) BAY-DELTA
SOLUTION
AREA.—The term 
‘‘Bay-Delta solution area’’ means the Bay-Delta wa-
tershed and the San Francisco Bay/Sacramento-San 
Joaquin Delta Estuary, California, and the areas in 
which diverted/exported water is used. 
(2) BAY-DELTA WATERSHED.—The term ‘‘Bay-
Delta watershed’’ means the Sacramento River-San 
Joaquin River Delta, and the rivers and watersheds 
that are tributary to that delta. 
(3) CALFED BAY-DELTA PROGRAM.—The term 
‘‘CALFED Bay-Delta Program’’ means the pro-
grams, projects, complementary actions, and activi-
ties undertaken through coordinated planning, im-
plementation, and assessment activities of the State 
and Federal agencies in a manner consistent with 
the Objectives and Solution Principles of the 
CALFED Bay-Delta Program as stated in the 
Record of Decision. 
(4) CONGRESSIONAL
AUTHORIZING
COMMIT-
TEES.—The term ‘‘congressional authorizing com-
mittees’’ means the Committee on Energy and Nat-
ural Resources of the Senate and the Committee on 
Resources of the House of Representatives.
(5) COMMISSIONER.—The term ‘‘commissioner’’ 
means the Commissioner of the Bureau of Reclama-
tion. 
(6) ENVIRONMENTAL
WATER
ACCOUNT.—The 
term ‘‘Environmental Water Account’’ means the 
water account established by the Federal agencies 
and State agencies pursuant to the Record of Deci-
sion to reduce incidental take and provide a mecha-
nism for recovery of species. 
(7) FEDERAL AGENCIES.—The term ‘‘Federal 
agencies’’ means the Federal agencies that are sig-
natories to Attachment 3 of the Record of Decision. 
(8) GOVERNOR.—The term ‘‘Governor’’ means 
the Governor of the State of California. 
(9) 
IMPLEMENTATION
MEMORANDUM.—The 
term ‘‘Implementation Memorandum’’ means the 
Calfed Bay-Delta Program Implementation Memo-
randum of Understanding dated August 28, 2000, 
executed by the Federal agencies and the State 
agencies, as such record of decision may be adapted 
or modified by the Secretary in accordance with ap-
plicable law. 
(10) RECLAMATION STATES.—The term ‘‘Rec-
lamation States’’ means the States of Arizona, Cali-
fornia, Colorado, Idaho, Kansas, Montana, Ne-
braska, Nevada, New Mexico, North Dakota, Okla-
homa, Oregon, South Dakota, Utah, Washington, 
Wyoming, and Texas. 
(11) 
RECORD
OF
DECISION.—The 
term 
‘‘Record of Decision’’ means the Federal pro-
grammatic Record of Decision dated August 28, 
2000, issued by the Federal agencies and supported 
by the State. 
(12) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Interior. 
(13) STATE.—The term ‘‘State’’ means the 
State of California. 
(14) STATE AGENCIES.—The term ‘‘State agen-
cies’’ means the California State agencies that are 
signatories to Attachment 3 of the Record of Deci-
sion. 
(15) WATER RESOURCE AGENCIES.—The term 
‘‘Water resource agencies’’ means the Federal agen-
cies that are signatories to Attachment 3 of the 
Record of Decision. 
(16) WATER SUPPLY.—The term ‘‘water sup-
ply’’ means a quantity of water that is developed or 
derived from—
(A) increased water yield; 
(B) recycling existing sources;
(C) desalination of seawater or brackish 
water; 
(D) surface or ground water storage; 
(E) conservation; or
(F) other actions or water management 
tools that improve the availability and reliability 
of water supplies for beneficial uses in all water 
year types, including critically dry years. 
(17) WATER YIELD.—The term ‘‘water yield’’ 
means a new quantity of water in storage that is re-
liably available in critically dry years for beneficial 
uses. 
SEC. 4. PURPOSES. 
The purposes of this Act are as follows: 
(1) To enhance and improve water supply, 
water yield, and water reliability coordinated 
through the Secretary, in cooperation, and consulta-
tion with Water Resource Agencies. 
(2) To foster and promote the development of 
supplemental and new water supplies, coordinated 
through the Secretary, in consultation and coordina-
tion with the Water Resource Agencies, through 
water reuse and salinity management. 
(3) To establish a competitive, performance-
based program, coordinated through the Secretary,
in consultation and coordination with the Water Re-
source Agencies, to provide financial incentives to 
entities to develop demonstration projects designed 
to treat seawater and brackish water, wastewater 
and impaired ground water. 
(4) To establish an office, in any Reclamation 
State requesting such an office, for the use of all 
Federal and State agencies that will be involved in 
issuing permits and conducting environmental re-
views for water supply, water supply capital im-
provement projects, levee maintenance, and delivery 
systems in any Reclamation State requesting such 
an office. 
(5) To provide assistance to States, municipali-
ties, other local governmental agencies (including 
soil and water conservation districts) and investor-
owned utilities that provide municipal water supply 
service pursuant to State law in the design and con-
struction of projects to desalinate seawater and put 
to beneficial use impaired ground water and brack-
ish water. 
(6) To implement and abide by the 4 primary 
objectives and solution principles set forth in the 
CALFED Bay-Delta Program. To authorize funding 
and coordinate sustained funding sources, through
the Secretary, for the implementation of a com-
prehensive program to achieve increased water yield 
and water supply, improved water quality, and en-
hanced environmental benefits as well as improved 
water system reliability, water use efficiency, water-
shed management, water transfers, and levee protec-
tion. 
(7) To implement other related provisions to 
improve water supply and yield.
TITLE I—DEPARTMENT OF INTE-
RIOR, COMPETITIVE GRANT 
PROGRAM 
SEC. 101. GENERAL AUTHORITY. 
(a) ESTABLISHMENT OF A WATER RESOURCES CO-
ORDINATION OFFICE.—There shall be established within 
the Office of the Secretary the Office of the Federal Water 
Resources Coordinator (referred to in this title as the ‘‘Co-
ordinator’’) who shall be responsible for coordinating the 
Water Resource Agencies activities addressing water de-
salination (including sea and brackish water), impaired 
ground water, brine removal, and water reuse projects and 
activities authorized under this title. 
(b) SECRETARIAL RESPONSIBILITY.—The Secretary, 
through the Coordinator, shall carry out the responsibil-
ities, as specifically identified as a responsibility of the Co-
ordinator under this title, and may not delegate these re-
sponsibilities to the Water Resource Agencies. The Coordi-
nator at its sole option may use the services of the Water 
Resource Agencies on any project deemed necessary. 
(c) ASSESSMENT OF EXISTING FEDERAL AUTHORI-
TIES.—The Secretary, through the Coordinator and in 
consultation with the Water Resource agencies, shall de-
velop and transmit to Congress no later than 60 days after 
enactment of this Act, an assessment report that identifies 
the following: 
(1) A list of authorities, including mandatory 
and discretionary trust funds, other than those 
under this title, to undertake activities under section 
102. 
(2) A list of all Water Resource Agencies ex-
penditures since fiscal year 1998 undertaken for 
projects and activities related to this title. 
(3) A plan of Water Resource Agencies coordi-
nation to meet the criteria, and guidelines as deter-
mined under this title. 
(4) A detailed/coordinated Water Resource 
Agencies budget review document, including out-
years funding requirements. 
(5) Recommendations for alternative financing 
mechanisms.
(d) ESTABLISHMENT OF GUIDELINES FOR ACTIVI-
TIES UNDERTAKEN BY THE COORDINATOR.—
(1) RULES AND GUIDELINES.—In carrying out 
activities under this title the Secretary, acting 
through the Coordinator, in coordination with the 
Water Resource Agencies, shall issue rules and 
guidelines for the submission of selection, solicita-
tion, and timelines of eligible projects and activities 
seeking grants assistance to analyze, plan, develop 
and construct, including but not limited to, the fol-
lowing: 
(A) Sea and brackish water desalination 
projects, including analysis and technology de-
velopment, reclamation of wastewater, and im-
paired ground and surface waters. 
(B) Brine management and disposal, in-
cluding analysis and technology development. 
Such analysis shall include, but not be limited 
to, the effects of concentrate disposal and pos-
sible mitigation measures. 
(C) Water reuse, including, but not limited 
to, techniques for cleanup and treatment of 
ground water contamination, especially ground 
water basins that are the primary source of 
drinking water supplies.
(2) EQUITABLE
SELECTION.—The Secretary 
shall ensure the rules and guidelines provide for the
equitable selection, to the maximum extent prac-
ticable, of projects and distribution of grants among 
the eligible activities identified under this section. 
(3) TIMEFRAME.—Such rules and guidelines 
shall be issued not later than 90 days after the date 
of the enactment of this Act. 
(e) AGENCY PARTICIPATION.—The Coordinator, in 
consultation with the Water Resource Agencies, shall—
(1) determine available and appropriate ac-
counts, both mandatory and permanent, including 
Federal trust funds; and 
(2) direct the Federal agency heads to spend 
authorized funds, if available within their agency, 
based on their proportional Federal interest. 
SEC. 102. AUTHORITY TO STUDY, PLAN, DESIGN, AND CON-
STRUCT. 
(a) IN GENERAL.—The Secretary, through the Coor-
dinator, in cooperation and consultation with the Water 
Resource Agencies, shall undertake a competitive grant 
program—
(1) to investigate and identify opportunities for 
the study, plan, and design of activities under this 
title; and
(2) to construct demonstration and permanent 
facilities, or the implementation of other programs 
and activities, to meet the criteria under this title. 
(b) CONDITIONS.—No grant may be made under this 
title for the design and construction of any project until 
after—
(1) an appraisal investigation and a feasibility 
study (which may be performed, if applicable, by the 
non-Federal sponsor and submitted to the Secretary, 
through the Coordinator, for review) have been com-
pleted and approved by the Secretary, through the 
Coordinator; 
(2) the Secretary, through the Coordinator, has 
determined that, if applicable, the non-Federal 
project sponsor has the financial resources available 
to fund the non-Federal share of the project’s costs; 
and 
(3) the Secretary, through the Coordinator, has 
approved, if applicable, a cost-sharing agreement 
with the non-Federal project sponsor that commits 
the non-Federal project sponsor to funding its share 
of the project’s construction costs on an annual 
basis, and ongoing operations and maintenance.