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$5,000,000. If such amount is $5,000,000 or 
greater, such cost shall be repaid as provided by 
applicable reclamation law; 
(C) provide that power revenues will not be 
available to aid in repayment of construction 
costs allocated to irrigation under the contract; 
and 
(D) continue so long as the contractor 
pays applicable charges, consistent with section 
9(d) of the Act of August 4, 1939 (53 Stat. 
1195), and applicable law. 
(3) CONTRACT
REQUIREMENTS.—Except for 
those repayment contracts under which the con-
tractor has previously negotiated for prepayment, 
the following shall apply with regard to all repay-
ment contracts under subsection (c)(1) of section 9 
of that Act (53 Stat. 1195) in effect on the date of 
enactment of this Act at the request of the con-
tractor, and all contracts converted pursuant to 
paragraph (1)(B): 
(A) Provide for the repayment in lump 
sum of the remaining construction costs identi-
fied in water project specific municipal and in-
dustrial rate repayment schedules, as adjusted 
to reflect payments not reflected in such sched-
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ule, and properly assignable for ultimate return 
by the contractor. An estimate of the remaining 
construction costs, as adjusted, shall be pro-
vided by the Secretary to the contractor no 
later than 90 days after receipt of request of 
contractor. 
(B) The contract shall require that con-
struction costs or other capitalized costs in-
curred after the effective date of the contract or 
not reflected in the rate 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 
allocation of capital costs to the contractors ex-
ercising contract conversation under this sub-
section of less than $5,000,000. If such amount 
is $5,000,000 or greater, such cost shall be re-
paid as provided by applicable reclamation law. 
(C) Continue so long as the contractor 
pays applicable charges, consistent with section 
9(c)(1) of the Act of August 4, 1939 (53 Stat. 
1195), and applicable law. 
(4) CONDITIONS.—All contracts entered into 
pursuant to paragraphs (1), (2), and (3) shall— 
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(A) not be adjusted on the basis of the 
type of prepayment financing used by the water 
users’ association; 
(B) conform to any other agreements, such 
as applicable settlement agreements and new 
constructed appurtenant facilities; and 
(C) not modify other water service, repay-
ment, exchange and transfer contractual rights 
between the water users’ association, and the 
Bureau of Reclamation, or any rights, obliga-
tions, or relationships of the water users’ asso-
ciation and their landowners as provided under 
State law. 
(b) ACCOUNTING.—The amounts paid pursuant to 
subsection (a) shall be subject to adjustment following a 
final cost allocation by the Secretary of the Interior. 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 be obligated to pay the remaining allocated costs. 
The term of such additional repayment contract shall be 
not less than one year and not more than 10 years, how-
ever, mutually agreeable provisions regarding the rate of 
repayment of such amount may be developed by the par-
ties. In the event that the final cost allocation indicates 
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that the costs properly assignable to the contractor are 
less than what the contractor has paid, the Secretary shall 
credit such overpayment as an offset against any out-
standing or future obligation of the contractor. 
(c) APPLICABILITY OF CERTAIN PROVISIONS.— 
(1) EFFECT OF EXISTING LAW.—Upon a con-
tractor’s compliance with and discharge of the obli-
gation of repayment of the construction costs pursu-
ant to a contract entered into pursuant to subsection 
(a)(2)(A), subsections (a) and (b) of section 213 of 
the Reclamation Reform Act of 1982 (96 Stat. 
1269) shall apply to affected lands. 
(2) EFFECT OF OTHER OBLIGATIONS.—The ob-
ligation of a contractor to repay construction costs 
or other capitalized costs described in subsection 
(a)(2)(B), (a)(3)(B), or (b) shall not affect a con-
tractor’s status as having repaid all of the construc-
tion costs assignable to the contractor or the appli-
cability of subsections (a) and (b) of section 213 of 
the Reclamation Reform Act of 1982 (96 Stat. 
1269) once the amount required to be paid by the 
contractor under the repayment contract entered 
into pursuant to subsection (a)(2)(A) have been 
paid. 
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(d) EFFECT ON EXISTING LAW NOT ALTERED.—Im-
plementation of the provisions of this title shall not alter— 
(1) the repayment obligation of any water serv-
ice or repayment contractor receiving water from the 
same water project, or shift any costs that would 
otherwise have been properly assignable to the water 
users’ association identified in subsections (a)(1), 
(a)(2), and (a)(3) absent this section, including op-
eration and maintenance costs, construction costs, or 
other capitalized costs incurred after the date of the 
enactment of this Act, or to other contractors; and 
(2) specific requirements for the disposition of 
amounts received as repayments by the Secretary 
under the Act of June 17, 1902 (32 Stat. 388, chap-
ter 1093), and Acts supplemental to and amend-
atory of that Act (43 U.S.C. 371 et seq.). 
(e) SURFACE WATER STORAGE ENHANCEMENT PRO-
GRAM.— 
(1) IN GENERAL.—Except as provided in sub-
section (d)(2), three years following the date of en-
actment of this Act, 50 percent of receipts generated 
from prepayment of contracts under this section be-
yond amounts necessary to cover the amount of re-
ceipts forgone from scheduled payments under cur-
rent law for the 10-year period following the date of 
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enactment of this Act shall be directed to the Rec-
lamation Surface Water Storage Account under 
paragraph (2). 
(2) SURFACE
STORAGE
ACCOUNT.—The Sec-
retary shall allocate amounts collected under para-
graph (1) into the ‘‘Reclamation Surface Storage 
Account’’ to fund the construction of surface water 
storage. The Secretary may also enter into coopera-
tive agreements with water users’ associations for 
the construction of surface water storage and 
amounts within the Surface Storage Account may be 
used to fund such construction. Surface water stor-
age projects that are otherwise not federally author-
ized shall not be considered Federal facilities as a 
result of any amounts allocated from the Surface 
Storage Account for part or all of such facilities. 
(3) REPAYMENT.—Amounts used for surface 
water storage construction from the Account shall be 
fully reimbursed to the Account consistent with the 
requirements under Federal reclamation law (the 
law (the Act of June 17, 1902 (32 Stat. 388, chap-
ter 1093))), and Acts supplemental to and amend-
atory of that Act (43 U.S.C. 371 et seq.) except that 
all funds reimbursed shall be deposited in the Ac-
count established under paragraph (2). 
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(4) AVAILABILITY OF AMOUNTS.—Amounts de-
posited in the Account under this subsection shall— 
(A) be made available in accordance with 
this section, subject to appropriation; and 
(B) be in addition to amounts appropriated 
for such purposes under any other provision of 
law. 
(5) PURPOSES OF SURFACE WATER STORAGE.— 
Construction of surface water storage under this sec-
tion shall be made for the following purposes: 
(A) Increased municipal and industrial 
water supply. 
(B) Agricultural floodwater, erosion, and 
sedimentation reduction. 
(C) Agricultural drainage improvements. 
(D) Agricultural irrigation. 
(E) Increased recreation opportunities. 
(F) Reduced adverse impacts to fish and 
wildlife from water storage or diversion projects 
within watersheds associated with water storage 
projects funded under this section. 
(G) Any other purposes consistent with 
reclamation laws or other Federal law. 
(f) DEFINITIONS.—For the purposes of this title, the 
following definitions apply: 
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(1) ACCOUNT.—The term ‘‘Account’’ means the 
Reclamation Surface Water Storage Account estab-
lished under subsection (e)(2). 
(2) CONSTRUCTION.—The term ‘‘construction’’ 
means the designing, materials engineering and test-
ing, surveying, and building of surface water storage 
including additions to existing surface water storage 
and construction of new surface water storage facili-
ties, exclusive of any Federal statutory or regulatory 
obligations relating to any permit, review, approval, 
or other such requirement. 
(3) SURFACE
WATER
STORAGE.—The term 
‘‘surface water storage’’ means any federally owned 
facility under the jurisdiction of the Bureau of Rec-
lamation or any non-Federal facility used for the 
surface storage and supply of water resources. 
(4) TREASURY
RATE.—The term ‘‘Treasury 
rate’’ means the 20-year Constant Maturity Treas-
ury (CMT) rate published by the United States De-
partment of the Treasury existing on the effective 
date of the contract. 
(5) WATER
USERS’ ASSOCIATION.—The term 
‘‘water users’ association’’ means— 
(A) an entity organized and recognized 
under State laws that is eligible to enter into 
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contracts with reclamation to receive contract 
water for delivery to and users of the water and 
to pay applicable charges; and 
(B) includes a variety of entities with dif-
ferent names and differing functions, such as 
associations, conservatory district, irrigation 
district, municipality, and water project con-
tract unit. 
TITLE X—SAFETY OF DAMS 
SEC. 1001. AUTHORIZATION OF ADDITIONAL PROJECT BEN-
EFITS. 
The Reclamation Safety of Dams Act of 1978 is 
amended— 
(1) in section 3, by striking ‘‘Construction’’ and 
inserting ‘‘Except as provided in section 5B, con-
struction’’; and 
(2) by inserting after section 5A (43 U.S.C. 
509) the following: 
‘‘SEC. 5B. AUTHORIZATION OF ADDITIONAL PROJECT BEN-
EFITS. 
‘‘Notwithstanding section 3, if the Secretary deter-
mines that additional project benefits, including but not 
limited to additional conservation storage capacity, are 
feasible and not inconsistent with the purposes of this Act, 
the Secretary is authorized to develop additional project 
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benefits through the construction of new or supplementary 
works on a project in conjunction with the Secretary’s ac-
tivities under section 2 of this Act and subject to the con-
ditions described in the feasibility study, provided— 
‘‘(1) the Secretary determines that developing 
additional project benefits through the construction 
of new or supplementary works on a project will pro-
mote more efficient management of water and 
water-related facilities; 
‘‘(2) the feasibility study pertaining to addi-
tional project benefits has been authorized pursuant 
to section 8 of the Federal Water Project Recreation 
Act of 1965 (16 U.S.C. 4601–18); and 
‘‘(3) the costs associated with developing the 
additional project benefits are agreed to in writing 
between the Secretary and project proponents and 
shall be allocated to the authorized purposes of the 
structure and repaid consistent with all provisions of 
Federal Reclamation law (the Act of June 17, 1902, 
43 U.S.C. 371 et seq.) and Acts supplemental to 
and amendatory of that Act.’’. 
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TITLE XI—WATER RIGHTS 
PROTECTION 
SEC. 1101. SHORT TITLE. 
This title may be cited as the ‘‘Water Rights Protec-
tion Act’’. 
SEC. 1102. DEFINITION OF WATER RIGHT. 
In this title, the term ‘‘water right’’ means any sur-
face or groundwater right filed, permitted, certified, con-
firmed, decreed, adjudicated, or otherwise recognized by 
a judicial proceeding or by the State in which the user 
acquires possession of the water or puts the water to bene-
ficial use, including water rights for federally recognized 
Indian tribes. 
SEC. 1103. TREATMENT OF WATER RIGHTS. 
The Secretary of the Interior and the Secretary of 
Agriculture shall not— 
(1) condition or withhold, in whole or in part, 
the issuance, renewal, amendment, or extension of 
any permit, approval, license, lease, allotment, ease-
ment, right-of-way, or other land use or occupancy 
agreement on— 
(A) limitation or encumbrance of any 
water right, or the transfer of any water right 
(including joint and sole ownership), directly or 
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