(III) The Secretary’s plan for 
funding the costs of expanding Reach 
4B or any alternative route selected, 
whether by existing Federal funds 
provided under this Act, by non-Fed-
eral funds, by future Federal appro-
priations, or some combination of 
such sources. 
(B) 
DETERMINATION
REQUIRED.—The 
Secretary shall, to the extent feasible, make the 
determination in subparagraph (A) prior to un-
dertaking any substantial construction work to 
increase capacity in Reach 4B. 
(3) COSTS.—If the Secretary’s estimated Fed-
eral cost for expanding Reach 4B in paragraph (2), 
in light of the Secretary’s funding plan set out in 
paragraph (2), would exceed the remaining Federal 
funding authorized by this Act (including all funds 
reallocated, all funds dedicated, and all new funds 
authorized by this Act and separate from all com-
mitments of State and other non-Federal funds and 
in-kind commitments), then before the Secretary 
commences actual construction work in Reach 4B 
(other than planning, design, feasibility, or other 
preliminary measures) to expand capacity to 4500 
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cubic feet per second to implement this Settlement, 
Congress must have increased the applicable author-
ization ceiling provided by this Act in an amount at 
least sufficient to cover the higher estimated Federal 
costs. 
SEC. 110. REPAYMENT CONTRACTS AND ACCELERATION OF 
REPAYMENT OF CONSTRUCTION COSTS. 
(a) CONVERSION OF CONTRACTS.—The Secretary is 
authorized and directed to convert, prior to December 31, 
2010, all existing Friant Division, Hidden Unit, and Bu-
chanan Unit long-term contracts entered under subsection 
(e) of section 109 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 agreeable terms 
and conditions. Upon request of the contractor, the Sec-
retary is further authorized to convert, prior to December 
31, 2010, any existing Friant Division 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. All such contracts shall— 
(1) require the repayment, either in lump sum 
or by accelerated pre-payment, of the remaining 
amount of construction cost identified in the Central 
Valley Project Schedule of Irrigation Capital Rates 
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by Contractor 2007 Irrigation Water Rates, dated 
January 25, 2007, as adjusted to reflect payments 
not reflected in such schedule, and properly assign-
able for ultimate return by the contractor, no later 
than January 31, 2011, or if made in approximately 
equal annual installments, not later than January 
31, 2014; 
(2) require that, notwithstanding subsection 
(c)(2), construction costs, including construction 
costs or other capitalized costs incurred after the ef-
fective date of the contract, properly assignable to 
such contractor but not reflected in the Schedule 
referenced in paragraph (1) shall be repaid in not 
more than 5 years after notification of the alloca-
tion, unless the Secretary and the contractor agree 
upon a longer repayment period consistent with ap-
plicable law; 
(3) provide that power revenues will not be 
available to aid in repayment of construction costs 
allocated to irrigation under the contract; and 
(4) conform to the Settlement and this Act and 
shall continue so long as the contractor pays applica-
ble charges, consistent with subsection (c)(2). 
(b) FINAL ADJUSTMENT.—The amounts paid pursu-
ant to subsection (a) shall be subject to adjustment fol-
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lowing a final cost allocation by the Secretary upon com-
pletion of the construction of the Central Valley Project. 
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 
no less than one year and no more than 10 years, however, 
mutually agreeable provisions regarding the rate of repay-
ment of such amount may be developed by the parties. 
In the event that the final cost allocation indicates that 
the costs properly assignable to the contractor are less 
than what the contractor has paid, the Secretary is au-
thorized and directed to credit such overpayment as an 
offset against any outstanding or future obligation of the 
contractor. 
(c) APPLICABILITY OF CERTAIN PROVISIONS.—Not-
withstanding any repayment obligation under subsection 
(a)(2) or (b), upon a contractor’s compliance with and dis-
charge of the obligation of repayment of the construction 
costs as provided in subsection (a)(1)— 
(1) the provisions of section 213(a) and (b) of 
the Reclamation Reform Act of 1982 (96 Stat. 
1269) shall apply to lands in such district; and 
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(2) the Secretary shall waive the pricing provi-
sions of section 3405(d) of the Reclamation Projects 
Authorization and Adjustment Act of 1992 (Public 
Law 102–575) for such contractor, provided that 
such contractor shall continue to pay applicable op-
eration and maintenance costs and other charges ap-
plicable to such repayment contracts pursuant to the 
then-current ratesetting policy and applicable law. 
(d) REDUCTION OF CHARGE.—Beginning in 2019, 
the Secretary shall reduce the charge mandated in section 
107(1) of the Act in recognition of the financing costs in-
curred in making 110(a)(1) payments. 
(e) SATISFACTION OF CERTAIN PROVISIONS.— 
(1) IN GENERAL.—Upon the first release of In-
terim Flows or Restoration Flows, pursuant to para-
graphs 13 or 15 of the Settlement, any short- or 
long-term agreement to which one or more long-term 
Friant water service or repayment contractors is a 
party providing for the transfer or exchange of water 
not released as Interim Flows or Restoration Flows 
shall be deemed to satisfy the provisions of sub-
section 3405(a)(1)(A) and (I) of the Reclamation 
Projects Authorization and Adjustment Act of 1992 
(Public Law 102–575) without the further concur-
rence of the Secretary as to compliance with said 
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subsections if the contractor provides, not later than 
90 days before commencement of such transfer or 
exchange, written notice to the Secretary stating 
how the proposed transfer or exchange is intended to 
reduce, avoid, or mitigate impacts to water deliveries 
caused by the Interim Flows or Restoration Flows 
or is intended to otherwise facilitate the Water Man-
agement Goal, as described in the Settlement. The 
Secretary shall promptly make such notice publicly 
available. 
(2) 
DETERMINATION
OF
REDUCTIONS
TO 
WATER
DELIVERIES.—Water transferred or ex-
changed under an agreement that meets the terms 
of this subsection shall not be counted as a replace-
ment or an offset for purposes of determining reduc-
tions to water deliveries to any Friant Division long- 
term contractor except as provided in paragraph 
16(b) of the Settlement. The Secretary shall, at least 
annually, make publicly available a compilation of 
the number of transfer or exchange agreements exer-
cising the provisions of this subsection to reduce, 
avoid, or mitigate impacts to water deliveries caused 
by the Interim Flows or Restoration Flows or to fa-
cilitate the Water Management Goal, as well as the 
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volume of water transferred or exchanged under 
such agreements. 
(3) STATE LAW.—Nothing in this subsection al-
ters State law or permit conditions, including any 
applicable geographical restrictions on the place of 
use of water transferred or exchanged pursuant to 
this subsection. 
(f) 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 contractor receiving water from the Central 
Valley Project. 
(g) STATUTORY INTERPRETATION.—Nothing in this 
Act shall be construed to affect the right of any Friant 
Division long-term contractor to use a particular type of 
financing to make the payments required in subsection 
(a)(1). 
SEC. 111. CALIFORNIA CENTRAL VALLEY SPRING RUN CHI-
NOOK SALMON. 
(a) FINDING.—Congress finds that the implementa-
tion of the Settlement to resolve 18 years of contentious 
litigation regarding restoration of the San Joaquin River 
and the reintroduction of the California Central Valley 
Spring Run Chinook salmon is a unique and unprece-
dented circumstance that requires clear expressions of 
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Congressional intent regarding how the provisions of the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 
are utilized to achieve the goals of restoration of the San 
Joaquin River and the successful reintroduction of Cali-
fornia Central Valley Spring Run Chinook salmon. 
(b) REINTRODUCTION
IN
THE
SAN
JOAQUIN 
RIVER.—California Central Valley Spring Run Chinook 
salmon shall be reintroduced in the San Joaquin River 
below Friant Dam pursuant to section 10(j) of the Endan-
gered Species Act of 1973 (16 U.S.C. 1539(j)) and the 
Settlement, provided that the Secretary of Commerce 
finds that a permit for the reintroduction of California 
Central Valley Spring Run Chinook salmon may be issued 
pursuant to section 10(a)(1)(A) of the Endangered Spe-
cies Act of 1973 (16 U.S.C. 1539(a)(1)(A)). 
(c) FINAL RULE.— 
(1) DEFINITION
OF
THIRD
PARTY.—For the 
purpose of this subsection, the term ‘‘third party’’ 
means persons or entities diverting or receiving 
water pursuant to applicable State and Federal law 
and shall include Central Valley Project contractors 
outside of the Friant Division of the Central Valley 
Project and the State Water Project. 
(2) ISSUANCE.—The Secretary of Commerce 
shall issue a final rule pursuant to section 4(d) of 
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the Endangered Species Act of 1973 (16 U.S.C. 
1533(d)) governing the incidental take of reintro-
duced California Central Valley Spring Run Chinook 
salmon prior to the reintroduction. 
(3) REQUIRED COMPONENTS.—The rule issued 
under paragraph (2) shall provide that the reintro-
duction will not impose more than de minimus: 
water supply reductions, additional storage releases, 
or bypass flows on unwilling third parties due to 
such reintroduction. 
(4) APPLICABLE
LAW.—Nothing in this sec-
tion— 
(A) diminishes the statutory or regulatory 
protections provided in the Endangered Species 
Act for any species listed pursuant to section 4 
of the Endangered Species Act of 1973 (16 
U.S.C. 1533) other than the reintroduced popu-
lation of California Central Valley Spring Run 
Chinook salmon, including protections pursuant 
to existing biological opinions or new biological 
opinions issued by the Secretary or Secretary of 
Commerce; or 
(B) precludes the Secretary or Secretary of 
Commerce from imposing protections under the 
Endangered Species Act of 1973 (16 U.S.C. 
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1531 et seq.) for other species listed pursuant 
to section 4 of that Act (16 U.S.C. 1533) be-
cause those protections provide incidental bene-
fits to such reintroduced California Central Val-
ley Spring Run Chinook salmon. 
(d) REPORT.— 
(1) IN GENERAL.—Not later than December 31, 
2024, the Secretary of Commerce shall report to 
Congress on the progress made on the reintroduction 
set forth in this section and the Secretary’s plans for 
future implementation of this section. 
(2) INCLUSIONS.—The report under paragraph 
(1) shall include— 
(A) an assessment of the major challenges, 
if any, to successful reintroduction; 
(B) an evaluation of the effect, if any, of 
the reintroduction on the existing population of 
California Central Valley Spring Run Chinook 
salmon existing on the Sacramento River or its 
tributaries; and 
(C) an assessment regarding the future of 
the reintroduction. 
(e) FERC PROJECTS.— 
(1) IN GENERAL.—With regard to California 
Central Valley Spring Run Chinook salmon reintro-
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duced pursuant to the Settlement, the Secretary of 
Commerce shall exercise its authority under section 
18 of the Federal Power Act (16 U.S.C. 811) by re-
serving its right to file prescriptions in proceedings 
for projects licensed by the Federal Energy Regu-
latory Commission on the Calaveras, Stanislaus, 
Tuolumne, Merced, and San Joaquin rivers and oth-
erwise consistent with subsection (c) until after the 
expiration of the term of the Settlement, December 
31, 2025, or the expiration of the designation made 
pursuant to subsection (b), whichever ends first. 
(2) EFFECT OF SUBSECTION.—Nothing in this 
subsection shall preclude the Secretary of Commerce 
from imposing prescriptions pursuant to section 18 
of the Federal Power Act (16 U.S.C. 811) solely for 
other anadromous fish species because those pre-
scriptions provide incidental benefits to such reintro-
duced California Central Valley Spring Run Chinook 
salmon. 
(f) EFFECT OF SECTION.—Nothing in this section is 
intended or shall be construed— 
(1) to modify the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.) or the Federal Power 
Act (16 U.S.C. 791a et seq.); or 
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(2) to establish a precedent with respect to any 
other application of the Endangered Species Act of 
1973 (16 U.S.C. 1531 et seq.) or the Federal Power 
Act (16 U.S.C. 791a et seq.). 
SEC. 112. OFFSETTING RECEIPTS. 
(a) CONSERVATION OF RESOURCES FEE FOR NON-
PRODUCING FEDERAL OIL
AND GAS LEASES
IN
THE 
GULF OF MEXICO.—Not later than 60 days after the date 
of enactment of this Act, the Secretary of the Interior by 
regulation shall establish a conservation of resources fee 
for nonproducing Federal oil and gas leases in the Gulf 
of Mexico. 
(b) NONPRODUCING LEASE FEE TERMS.—The fee 
under subsection (a)— 
(1) subject to paragraph (3), shall apply to 
leases that are nonproducing leases; 
(2) shall be set at $3.75 per acre per year in 
2005 dollars; and 
(3) shall apply on and after October 1, 2006. 
(c) TREATMENT OF RECEIPTS.—Amounts received 
by the United States as fees under this section shall be 
treated as offsetting receipts. 
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TITLE II—STUDY TO DEVELOP 
WATER PLAN; REPORT 
SEC. 201. STUDY TO DEVELOP WATER PLAN; REPORT. 
(a) PLAN.— 
(1) GRANT.—To the extent that funds are 
made available in advance for this purpose, the Sec-
retary of the Interior, acting through the Bureau of 
Reclamation, shall provide direct financial assistance 
to the California Water Institute, located at Cali-
fornia State University, Fresno, California, to con-
duct a study regarding the coordination and integra-
tion of sub-regional integrated regional water man-
agement plans into a unified Integrated Regional 
Water Management Plan for the subject counties in 
the hydrologic basins that would address issues re-
lated to— 
(A) water quality; 
(B) water supply (both surface, ground-
water banking, and brackish water desalina-
tion); 
(C) water conveyance; 
(D) water reliability; 
(E) flood control; 
(F) water resource-related environmental 
enhancement; and 
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(G) population growth. 
(2) STUDY AREA.—The study area referred to 
in paragraph (1) is the proposed study area of the 
San Joaquin River Hydrologic Region and Tulare 
Lake Hydrologic Region, as defined by California 
Department of Water Resources Bulletin 160–05, 
Volume 3, Chapters 7 and 8, including Kern, 
Tulare, Kings, Fresno, Madera, Merced, Stanislaus, 
and San Joaquin counties in California. 
(b) USE OF PLAN.—The Integrated Regional Water 
Management Plan developed for the 2 hydrologic basins 
under subsection (a) shall serve as a guide for the 8 coun-
ties in the study area described in subsection (a)(2) to use 
as a mechanism to address and solve long-term water 
needs in a sustainable and equitable manner. 
(c) REPORT.—The Secretary shall ensure that a re-
port containing the results of the Integrated Regional 
Water Management Plan for the hydrologic regions is sub-
mitted to the Committee on Natural Resources of the 
House of Representatives and the Committee on Energy 
and Natural Resources of the Senate not later than 24 
months after financial assistance is made available to the 
California Water Institute under subsection (a)(1). 
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(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$1,000,000 to remain available until expended. 
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Union Calendar No. 395 
110TH CONGRESS 
2D SESSION 
H. R. 4074 
[Report No. 110–633] 
A BILL 
To authorize the implementation of the San Joa-
quin River Restoration Settlement, and for other 
purposes. 
MAY 13, 2008 
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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