I 
112TH CONGRESS 
1ST SESSION H. R. 1837 
To address certain water-related concerns on the San Joaquin River, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2011 
Mr. NUNES (for himself, Mr. MCCARTHY of California, and Mr. DENHAM) in-
troduced the following bill; which was referred to the Committee on Nat-
ural Resources 
A BILL 
To address certain water-related concerns on the San 
Joaquin River, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘San Joaquin Valley 
Water Reliability 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. 
TITLE I—CENTRAL VALLEY PROJECT IMPROVEMENT ACT 
REFORMS 
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Sec. 101. Amendment to purposes. 
Sec. 102. Amendment to definition. 
Sec. 103. Limitation on contracting and contract reform. 
Sec. 104. Water transfers, improved water management, and conservation. 
Sec. 105. Fish, wildlife, and habitat restoration. 
Sec. 106. Restoration Fund. 
Sec. 107. Additional authorities. 
Sec. 108. Compliance with Endangered Species Act of 1973. 
Sec. 109. Authorized service area. 
Sec. 110. Area of origin and prior rights. 
Sec. 111. Water storage. 
TITLE II—SAN JOAQUIN RIVER RESTORATION 
Sec. 201. Reference. 
Sec. 202. Preemption of State law. 
Sec. 203. Repeal of the San Joaquin River Settlement. 
Sec. 204. Satisfaction and discharge of obligations. 
Sec. 205. San Joaquin River Habitat Restoration. 
Sec. 206. Restoration Fund. 
Sec. 207. Natural and artificially spawned species. 
TITLE III—REPAYMENT CONTRACTS AND ACCELERATION OF 
REPAYMENT OF CONSTRUCTION COSTS 
Sec. 301. Repayment contracts and acceleration of repayment of construction 
costs. 
TITLE 
I—CENTRAL 
VALLEY 
PROJECT IMPROVEMENT ACT 
REFORMS 
SEC. 101. AMENDMENT TO PURPOSES. 
Section 3402 of the Central Valley Project Improve-
ment Act (106 Stat. 4706) is amended— 
(1) in subsection (f), by striking the period at 
the end; and 
(2) by adding at the end the following: 
‘‘(g) to ensure that water dedicated to fish and wild-
life purposes by this title is replaced and provided to Cen-
tral Valley Project water contractors by December 31, 
2016, at the lowest cost reasonably achievable; and 
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‘‘(h) to facilitate and expedite water transfers in ac-
cordance with this Act.’’. 
SEC. 102. AMENDMENT TO DEFINITION. 
Section 3403(a) of the Central Valley Project Im-
provement Act (106 Stat. 4707) is amended to read as 
follows: 
‘‘(a) the term ‘anadromous fish’ means those native 
stocks of salmon (including steelhead) and sturgeon that, 
as of October 30, 1992, were present in the Sacramento 
and San Joaquin Rivers and their tributaries and ascend 
those rivers and their tributaries to reproduce after matur-
ing in San Francisco Bay or the Pacific Ocean;’’. 
SEC. 103. LIMITATION ON CONTRACTING AND CONTRACT 
REFORM. 
Section 3404 of the Central Valley Project Improve-
ment Act (106 Stat. 4710) is amended by striking the lan-
guage of the section and by adding: 
‘‘(a) RENEWAL
OF EXISTING LONG-TERM CON-
TRACTS.—Upon request of the contractor, the Secretary 
shall renew any existing long-term repayment or water 
service contract that provides for the delivery of water 
from the Central Valley Project for a period of 40 years, 
and renew such contracts for successive periods of 40 
years each. 
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‘‘(b) DELIVERY CHARGE.—Beginning on the date of 
the enactment of this Act, a contract entered into or re-
newed pursuant to this section shall include a provision 
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. 4710) 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 such Act or any other 
provision of law.’’; 
(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 
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or recharge Central Valley Project water that 
existed prior to October 30, 1992.’’. 
(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 redesig-
nated by paragraph (4)) to read as follows: 
‘‘(e) RESTORATION FUND.—All revenues received by 
the Secretary that exceed the cost-of-service rate applica-
ble to the delivery of water transferred from irrigation use 
to municipal and industrial use under subsection (a) shall 
be deposited into the Restoration Fund, as established 
under section 3407.’’. 
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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), by amending sub-
paragraph (B) to read as follows: 
‘‘(B) MODIFICATION OF PROGRAM.— 
‘‘(i) IN
GENERAL.—As needed to 
achieve the goals of the program estab-
lished under this paragraph, the Secretary 
may modify Central Valley Project oper-
ations to provide reasonable water flows of 
suitable quality, quantity, and timing to 
protect all life stages of anadromous fish. 
Such flows shall be provided— 
‘‘(I) from the quantity of water 
dedicated for fish, wildlife, and habi-
tat restoration purposes under para-
graph (2); 
‘‘(II) from the water supplies ac-
quired pursuant to paragraph (3); and 
‘‘(III) from other sources that do 
not conflict with fulfillment of the 
Secretary’s remaining contractual ob-
ligations to provide Central Valley 
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Project water for other authorized 
purposes. 
‘‘(ii) INSTREAM FLOW NEEDS.—Rea-
sonable instream flow needs for all Central 
Valley Project controlled streams and riv-
ers shall be determined by the Secretary 
based on recommendations of the United 
States Fish and Wildlife Service and the 
National Marine Fisheries Service after 
consultation with the United States Geo-
logical Survey.’’; 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) upon October 30, 1992, dedicate and man-
age annually 800,000 acre-feet of Central Valley 
Project yield for the purposes of implementing the 
fish, wildlife, and habitat restoration purposes and 
measures authorized by such Act; assisting the State 
of California in its efforts to protect the waters of 
the San Francisco Bay/Sacramento-San Joaquin 
Delta Estuary; and helping to meet such obligations 
as may be legally imposed upon the Central Valley 
Project under State or Federal law following Octo-
ber 30, 1992, including additional obligations under 
the Endangered Species Act of 1973 (16 U.S.C. 
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1531 et seq.). For the purpose of this section, the 
term ‘Central Valley Project yield’ means 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 applicable State or 
Federal law existing on October 30, 1992, have been 
met. All Central Valley Project water used for the 
purposes specified in this paragraph shall be cred-
ited to the quantity of Central Valley Project yield 
dedicated and managed under this paragraph by de-
termining how the dedication and management of 
such water would affect the delivery 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 Val-
ley Project under applicable State or Federal law ex-
isting on October 30, 1992, have been met. To the 
fullest extent possible and in accordance with section 
3411, Central Valley Project water dedicated and 
managed pursuant to this paragraph shall be reused 
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to fulfill the Secretary’s remaining contractual obli-
gations to provide Central Valley Project water for 
agricultural or municipal and industrial purposes.’’; 
and 
(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 
programs and activities authorized by this section, the 
Secretary shall be deemed to have met the mitigation, pro-
tection, restoration, and enhancement purposes of section 
2 of the Act of August 26, 1937 (Chapter 832; 50 Stat. 
850).’’. 
SEC. 106. RESTORATION FUND. 
Section 3407 of the Central Valley Project Improve-
ment Act (106 Stat. 4714) is amended as follows: 
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(1) By amending subsection (a) to read as fol-
lows: 
‘‘(a) RESTORATION FUND ESTABLISHED.— 
‘‘(1) IN GENERAL.—There is established in the 
Treasury the ‘Central Valley Project Restoration 
Fund’, which shall be available for deposit of dona-
tions from any source and revenues collected under 
sections 
3404(c)(3), 
3405(f), 
3406(c)(1), 
and 
3407(d). Funds donated to the Restoration Fund by 
a non-Federal entity for a specific purpose shall be 
expended for such purpose only and shall not be 
subject to appropriation. Amounts deposited shall be 
credited as offsetting collections. Not less than 50 
percent of the amounts deposited to the Restoration 
Fund shall be expended for purposes of the Central 
Valley Project unit or division regarding which the 
amounts were collected. 
‘‘(2) PROHIBITION.—The Secretary may not— 
‘‘(A) directly or indirectly require a dona-
tion or other payment to the Restoration Fund, 
or environmental restoration or mitigation fees 
not otherwise provided by law, as— 
‘‘(i) a condition to providing for the 
storage or conveyance of non-Central Val-
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ley Project water pursuant to Federal rec-
lamation laws; or 
‘‘(ii) a condition to the delivery of 
water pursuant to section 215 of the Rec-
lamation Reform Act of 1982 (Public Law 
97–293; 96 Stat. 1270); or 
‘‘(B) require a donation or other payment 
to the Restoration Fund for any water that is 
delivered with the sole intent of groundwater re-
charge. 
‘‘(3) USE
OF
CERTAIN
AMOUNTS.—The Sec-
retary shall use the amounts collected pursuant to 
section 3406(c)(1)— 
‘‘(A) to assist in improving water quality, 
riparian values, and fish habitat in the San 
Joaquin River from Friant Dam to Mendota 
Pool; or 
‘‘(B) to support other projects benefitting 
land within the Friant Division. 
‘‘(4) CERTAIN USE OF RESTORATION FUND.— 
Except as provided under paragraph (1), funds de-
posited into the Restoration Fund may be appro-
priated for the acquisition of water supplies and the 
construction of facilities used to implement projects 
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or 
programs 
undertaken 
pursuant 
to 
section 
3408(j).’’. 
(2) In subsection (c), by amending paragraph 
(1) to read as follows: 
‘‘(1) To the extent required in Acts of appro-
priation, the Secretary shall assess and collect addi-
tional annual payments, in addition to the charges 
collected under sections 3404(c)(3), 3405(a)(1)(C), 
3405(f), and 3406(c)(1), consisting of charges to di-
rect beneficiaries of the Central Valley Project under 
subsection (d) of this section in order to recover a 
portion or all of the costs of carrying out programs, 
projects, plans, habitat restoration, improvement, 
and acquisition provisions of this title.’’. 
(3) 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 
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-
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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 semi-annually 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. 
‘‘(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, 2012, 
and annually thereafter, to transmit to the Sec-
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retary and Congress recommendations required 
under subparagraph (A). 
‘‘(D) Not later than December 31, 2012, 
and biennially thereafter, to transmit to Con-
gress a report that details the progress made in 
achieving the goals of the Restoration Fund as 
identified in this Act. 
‘‘(3) ADMINISTRATION.—With the consent of 
the appropriate agency head, the Advisory Board 
may use the facilities and services of any Federal 
agency. Non-Federal members of the Advisory 
Board, while engaged in the performance of their 
duties away from their homes or regular places of 
business, may be allowed travel expenses, including 
per diem in lieu of subsistence under section 5703 
of title 5, United States Code. Funds from the Res-
toration Fund may be used to carry out this para-
graph. 
‘‘(4) FACA.—The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Advisory 
Board.’’. 
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: 
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‘‘(c) CONTRACTS FOR ADDITIONAL STORAGE AND 
DELIVERY OF WATER.— 
‘‘(1) IN GENERAL.—The Secretary is authorized 
to enter into contracts pursuant to Federal reclama-
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 non-project 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.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop rates not to exceed the amount required 
to recover the reasonable costs incurred by the 
Secretary in connection with a beneficial pur-
pose under this subsection. Such rates shall be 
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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. 
‘‘(B) REDUCTION
IN
OPERATIONS
AND 
MAINTENANCE.—Any payment received in con-
nection with the use of Central Valley Project 
facilities shall be applied to reduce the current- 
year operations and maintenance expenses, oth-
erwise payable by Central Valley Project con-
tractors, for such facilities used. 
‘‘(5) CONSTRUCTION.—This subsection shall be 
construed and implemented to facilitate and encour-
age the use of Central Valley Project facilities to ex-
change, impound, store, carry, or deliver nonproject 
water for any beneficial purpose.’’. 
(b) REPORTING REQUIREMENTS.—Section 3408(f) of 
the Central Valley Project Improvement Act (106 Stat. 
4729) is amended— 
(1) by striking ‘‘Interior and Insular Affairs 
and Merchant Marine and Fisheries’’ and inserting 
‘‘Natural Resources’’; 
(2) in the second sentence, by inserting before 
the period at the end the following: ‘‘, including 
progress on the plan required by subsection (j)’’; and 
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(3) by adding at the end the following: ‘‘The fil-
ing and adequacy of such report shall be personally 
certified to the Committees referenced above by the 
Regional Director of the Mid-Pacific Region of the 
Bureau of Reclamation.’’. 
(c) PROJECT YIELD INCREASE.—Section 3408(j) of 
the Central Valley Project Improvement Act (106 Stat. 
4730) is amended to read as follows: 
‘‘(j) PROJECT YIELD INCREASE.— 
‘‘(1) PLAN REQUIRED.—In order to minimize 
adverse effects upon existing Central Valley Project 
water contractors resulting from the water dedicated 
for fish and wildlife under this title, and to assist 
the State of California in meeting its future water 
needs, the Secretary, on a priority basis and not 
later than September 30, 2012, shall submit to Con-
gress a least-cost plan to increase, as soon as pos-
sible but not later than September 30, 2016 (except 
for the construction of new facilities which shall not 
be limited by that deadline), the water of the Central 
Valley Project by the amount dedicated and man-
aged for fish and wildlife purposes under this title 
and otherwise required to meet the purposes of the 
Central Valley Project including satisfying contrac-
tual obligations. 
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‘‘(2) CONTENTS OF PLAN.—The plan required 
by paragraph (1) shall include— 
‘‘(A) recommendations on appropriate cost- 
sharing arrangements and authorizing legisla-
tion or other measures needed to implement the 
intent, purposes, and provisions of this sub-
section; and 
‘‘(B) a description of how the Secretary in-
tends to use the following options: 
‘‘(i) Improvements in, modification of, 
or additions to the facilities and operations 
of the project and construction of new 
water storage facilities. 
‘‘(ii) Conservation. 
‘‘(iii) Transfers. 
‘‘(iv) Conjunctive use. 
‘‘(v) Purchase of water. 
‘‘(vi) Purchase and idling of agricul-
tural land. 
‘‘(vii) Direct purchase of water rights. 
‘‘(viii) Water banking and recharge. 
‘‘(3) IMPLEMENTATION OF PLAN.—Subject to 
the availability of appropriated funds, the Secretary 
shall implement the plan required by paragraph (1) 
commencing on October 1, 2012. In order to carry 
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out this subsection, the Secretary shall coordinate 
with the State of California in implementing meas-
ures for the long-term resolution of problems in the 
San Francisco Bay/Sacramento-San Joaquin Delta 
Estuary. 
‘‘(4) FAILURE
OF
THE
PLAN.—Not with-
standing any other provision of law, if by September 
30, 2016, the plan required by paragraph (1) fails 
to increase the annual delivery capability of the Cen-
tral Valley Project by 800,000 acre-feet, implemen-
tation of section 3406(b)(2) shall be suspended until 
the plan achieves an increase in the annual delivery 
capability of the Central Valley Project by 800,000 
acre-feet.’’. 
(d) TECHNICAL CORRECTION.—Section 3408(h) of 
the Central Valley Project Improvement Act (106 Stat. 
4729) is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(h)(2)’’ and inserting ‘‘paragraph (2)’’; and 
(2) in paragraph (2), by striking ‘‘paragraph 
(h)(i)’’ and inserting ‘‘paragraph (1)’’. 
SEC. 108. COMPLIANCE WITH ENDANGERED SPECIES ACT 
OF 1973. 
(a) COMPLIANCE.— 
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(1) IN GENERAL.—All requirements of the En-
dangered Species Act of 1973 (16 U.S.C. 1531 et 
seq.) shall be considered to be fully met for the pro-
tection and conservation of the species listed pursu-
ant to the Act for the operations of the Central Val-
ley Project and the California State Water Project, 
if the Central Valley Project and the California 
State Water Project are operated in a manner con-
sistent with the ‘‘Principles for Agreement on the 
Bay-Delta Standards Between the State of Cali-
fornia and the Federal Government’’ dated Decem-
ber 15, 1994. 
(2) BIOLOGICAL
OPINIONS
AND
MODIFICA-
TION.—The Secretary of the Interior and the Sec-
retary of Commerce shall issue biological opinions 
for coordinated operations of the Central Valley 
Project and the California State Water Project that 
are no more restrictive than provisions of the ‘‘Prin-
ciples for Agreement on the Bay-Delta Standards 
Between the State of California and the Federal 
Government’’ dated December 15, 1994. Such bio-
logical opinions may be modified only with the con-
sent of the signatories to the ‘‘Principles for Agree-
ment on the Bay-Delta Standards Between the State 
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of California and the Federal Government’’ dated 
December 15, 1994. 
(b) PREEMPTION OF STATE LAW.— 
(1) STATE
LAW
PREEMPTION.—Neither the 
State of California, an agency of the State, nor any 
political subdivision of the State shall adopt or en-
force any requirement for the protection or conserva-
tion of any species listed under the Endangered Spe-
cies Act for the operations of the Central Valley 
Project or the California State Water Project that is 
more restrictive than the requirements of this sec-
tion. Any provision of California State law that au-
thorizes the imposition of conditions or restrictions 
on the operations of the Central Valley Project or 
the California State Water Project for the protection 
or conservation of a species that is more restrictive 
than this section is preempted. 
(2) NATIVE
SPECIES
PROTECTION.—Any re-
striction imposed under California law on the take 
or harvest of any nonnative or introduced aquatic or 
terrestrial species that preys upon a native fish spe-
cies that occupies the Sacramento and San Joaquin 
Rivers and their tributaries or the Sacramento-San 
Joaquin Rivers Delta shall be void and is preempted. 
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SEC. 109. AUTHORIZED SERVICE AREA. 
The authorized service area of the Central Valley 
Project shall include the area within the boundaries of the 
Kettleman City Community Services District, California, 
as those boundaries exist on the date of the enactment 
of this title. Notwithstanding the provisions of the Act of 
October 30, 1992, (Public Law 102–575, 106 Stat. 4600 
et seq.) upon enactment of this title, the Secretary is au-
thorized and directed to enter into a long-term contract 
in accordance with the Reclamation laws with the 
Kettleman City Community Services District, California, 
for the delivery of up to 900 acre-feet of Central Valley 
Project water for municipal and industrial use. The Sec-
retary may temporarily reduce deliveries of the quantity 
of water made available pursuant to up to 25 percent of 
such total whenever reductions due to hydrologic cir-
cumstances are imposed upon agricultural deliveries of 
Central Valley Project water. 
SEC. 110. AREA OF ORIGIN AND PRIOR RIGHTS. 
Nothing in this title shall affect the Secretary’s duty 
to operate the Central Valley Project in a manner con-
sistent with applicable provisions of State water law pro-
tecting any area of origin, watershed of origin, county of 
origin, or any other water rights, such as senior appropria-
tive rights, including rights appropriated prior to Decem-
ber 19, 1914. 
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SEC. 111. WATER STORAGE. 
The Secretary, acting through the Commissioner of 
the Bureau of Reclamation, may provide funds authorized 
to be appropriated to the surface storage projects identi-
fied in section 103(d)(1) of the Water Supply, Reliability, 
and Environmental Improvement Act (Public Law 108– 
361) and Acts supplemental and amendatory of that Act, 
to local joint powers authorities formed pursuant to State 
law by irrigation districts and other local water districts 
and local governments within the applicable hydrologic re-
gion, to advance those projects. 
TITLE II—SAN JOAQUIN RIVER 
RESTORATION 
SEC. 201. REFERENCE. 
Subtitle A of title X of Public Law 111–11 is hereby 
repealed. 
SEC. 202. PREEMPTION OF STATE LAW. 
Notwithstanding section 8 of the Reclamation Act of 
1902, except as provided herein, this title preempts and 
supersedes any State law, regulation, or requirement that 
imposes more restrictive requirements or regulations on 
the activities authorized under such title. Provided nothing 
herein shall exempt the Friant Division, Hidden Unit, and 
Buchanan Unit of the Central Valley Project from orders 
issued by the State Water Resources Control Board pursu-
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ant to the Porter-Cologne Water Quality Control Act 
(California Water Code Sections 13000 et seq.). 
SEC. 203. REPEAL OF THE SAN JOAQUIN RIVER SETTLE-
MENT. 
As of the date of enactment of this title, the Secretary 
shall cease any action to implement the San Joaquin River 
Restoration Settlement Act (subtitle A of title X of Public 
Law 111–11) and the Stipulation of Settlement (Natural 
Resources Defense Council, et al. v. Kirk Rodgers, et al., 
Eastern District of California, No. Civ. S–88–1658 LKK/ 
GGH). 
SEC. 204. SATISFACTION AND DISCHARGE OF OBLIGA-
TIONS. 
Congress finds and declares that the enactment of 
this section satisfies and discharges all of the following 
obligations: 
(1) Those of the Secretary contained in section 
3406(c)(1) of the Reclamation Projects Authoriza-
tion and Adjustment Act of 1992 (Public Law 102– 
575), except that the Secretary shall continue to as-
sess and collect the charges described in such section 
3406(c)(1). 
(2) Those of the Secretary and all other parties 
to protect and keep in good condition any fish that 
may be planted or exist below Friant Dam, including 
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any obligations under section 5937 of the California 
Fish and Game Code and the public trust doctrine. 
SEC. 205. SAN JOAQUIN RIVER HABITAT RESTORATION. 
(a) PURPOSE.—The purpose of this section is to im-
plement a program of increased water releases from 
Friant Dam to address environmental, habitat, fisheries, 
and water quality concerns on the San Joaquin River from 
Friant Dam to Sack Dam. 
(b) DEFINITIONS.—For the purposes of this section: 
(1) RESTORATION
FLOWS.—The term ‘‘Res-
toration Flows’’ means the minimum flow of 50 
cubic feet per second at Sack Dam, located approxi-
mately 85 river miles downstream from Friant Dam. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(3) WATER
YEAR.—The term ‘‘Water Year’’ 
means October 1 through the following September 
30. 
(c) CRITICAL WATER YEAR.—For purposes of this 
section a Critical Water Year is when the total unimpaired 
runoff at Friant Dam is less than 400,000 acre-feet. 
(d) RELEASE OF RESTORATION FLOWS.—In each 
Water Year, commencing in the Water Year starting on 
October 1, 2012, the Secretary— 
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(1) shall modify Friant Dam operations so as 
to release the Restoration Flows for that Water 
Year, except in any critical water year; 
(2) shall ensure that the release of Restoration 
Flows are maintained at the levels prescribed by this 
section; 
(3) shall release the Restoration Flows in a 
manner that improves the fishery in the San Joa-
quin River below Friant Dam, but upstream of 
Gravelly Ford in existence as of the date of the en-
actment of this section, and the associated riparian 
habitat, while improving water quality in the San 
Joaquin River at Vernalis and achieving such other 
environmental benefits as the Secretary may reason-
ably determine; and 
(4) may, without limiting the actions required 
under paragraphs (1) through (3) and subject to 
subsection (m), use the Restoration Flows to en-
hance or restore a warm water fishery if the Sec-
retary determines that it is reasonable, prudent, and 
feasible to do so. 
(e) EFFECT ON EXISTING OBLIGATIONS.—Except as 
described in subsection (f), nothing in this section shall 
modify any existing obligation of the United States under 
Federal Reclamation law to operate the Central Valley 
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Project in conformity with State law and existing or to 
be renewed water service, repayment, purchase, or ex-
change contracts. 
(f) RECOVERY OF RESTORATION FLOWS.—Not later 
than 1 year after the date of the enactment of this section, 
the Secretary shall develop and implement a least-cost 
plan to fully recover or replace all Restoration Flows and 
provide such recovered or replacement flows to those water 
service contractors within the Friant Division, Hidden 
Unit, and Buchanan Unit of the Central Valley Project 
that relinquished the Restoration Flows so recovered or 
replaced. Such a program shall not impact the water sup-
ply or water rights of any entity outside the Friant Divi-
sion, Hidden Unit, and Buchanan Unit of the Central Val-
ley Project. 
(g) GROUNDWATER IMPACT PLAN.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this section, the Sec-
retary, in cooperation with representatives of af-
fected landowners, shall develop and implement a 
least-cost plan to fully mitigate the impact on 
groundwater resources within the service area of the 
Friant Division, Hidden Unit, and Buchanan Unit 
of the Central Valley Project caused by the release 
of Restoration Flows. 
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(2) 
MITIGATION.—The 
mitigation 
required 
under paragraph (1) may include one or more of the 
following: the development of new water supplies, 
land retirement, and groundwater banking and re-
charge projects. To the extent Restoration Flows are 
recovered or replaced pursuant to subsection (g) in 
a manner that mitigates the impact on groundwater 
resources caused by the release of Restoration 
Flows, such recovery or replacement may be consid-
ered to be a part of the plan to be implemented 
under this subsection. 
(h) PRIVATE RIGHTS OF ACTION.—Nothing in this 
section shall confer upon any person or entity a private 
right of action or claim for relief to interpret or enforce 
the provisions of this section. Any Central Valley Project 
long-term water service or repayment contractor within 
the Friant Division, Hidden Unit, or Buchanan Unit ad-
versely affected by the Secretary’s failure to comply with 
subsection (f) or (g) may bring an action against the Sec-
retary for injunctive relief or damages, or both. Any action 
for damages shall be brought in the United States Court 
of Federal Claims. 
(i) NO IMPACTS ON OTHER INTERESTS.—No Central 
Valley Project or other water other than San Joaquin 
River water impounded by or bypassed from Friant Dam 
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shall be used to implement subsection (d) unless such use 
is on a voluntary basis. No cost associated with the imple-
mentation of this section shall be imposed directly or indi-
rectly on any Central Valley Project contractor, or any 
other person or entity, outside the Friant Division, the 
Hidden Unit, or the Buchanan Unit, unless such costs are 
incurred on a voluntary basis. The implementation of this 
section shall not result directly or indirectly in any reduc-
tion in water supplies or water reliability on any Central 
Valley Project contractor, any State Water Project con-
tractor, or any other person or entity, outside the Friant 
Division, the Hidden Unit, or the Buchanan Unit, unless 
such reductions or costs are incurred on a voluntary basis. 
(j) PRIORITY.— 
(1) IN GENERAL.—All actions taken under this 
section shall be subordinate to the Secretary’s use of 
Central Valley Project facilities to make Project 
water, other than water released from the Friant 
Dam pursuant to this section, and the Secretary’s 
performance of the Agreement. 
(2) DEFINITION OF AGREEMENT.—For the pur-
poses of this subsection, the term ‘‘Agreement’’ 
means the Agreement of November 24, 1986, be-
tween the United States and the Department of 
Water Resources of the State of California for the 
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coordinated operation of the Central Valley Project 
and the State Water Project as authorized by sec-
tion 103 of Public Law 99–546, including any 
agreement to resolve conflicts arising from that 
Agreement. 
SEC. 206. RESTORATION FUND. 
There is hereby established within the Treasury of 
the United States a fund, to be known as the San Joaquin 
River Fishery Restoration Fund, into which the following 
funds shall be deposited and used solely for the purpose 
of implementing this title: 
(1) All payments received pursuant to section 
3406(c)(1) of the Reclamation Projects Authoriza-
tion and Adjustment Act of 1992 (Public Law 102– 
575; 106 Stat. 4721). 
(2) Any non-Federal funds, including State 
cost-sharing funds, contributed to the United States 
for this purpose. 
(3) Funds in the San Joaquin River Restora-
tion 
Fund, 
(Public 
Law 
111–11 
section 
10009(c)(1)), on the day before the date of the en-
actment of this Act. 
SEC. 207. NATURAL AND ARTIFICIALLY SPAWNED SPECIES. 
After the date of the enactment of this title, the Sec-
retary shall not distinguish between natural-spawned and 
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hatchery-spawned or otherwise artificially propagated 
strains of a species in making any determination under 
the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
seq.) that relates to any anadromous fish species present 
in the Sacramento and San Joaquin Rivers or their tribu-
taries and ascend those rivers and their tributaries to re-
produce after maturing in San Francisco Bay or the Pa-
cific Ocean. 
TITLE 
III—REPAYMENT 
CON-
TRACTS AND ACCELERATION 
OF 
REPAYMENT 
OF 
CON-
STRUCTION COSTS 
SEC. 301. REPAYMENT CONTRACTS AND ACCELERATION OF 
REPAYMENT OF CONSTRUCTION COSTS. 
(a) CONVERSION OF CONTRACTS.— 
(1) Not later than 1 year after enactment, the 
Secretary of the Interior, upon request of the con-
tractor, shall convert all existing long-term contracts 
with any Central Valley Project contracts entered 
under subsection (e) of section 9 of the Act of Au-
gust 4, 1939 (53 Stat. 1196), to contracts under 
subsection (d) of section 9 of said Act (53 Stat. 
1195), under mutually agreeable terms and condi-
tions. 
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(2) Upon request of the contractor, the Sec-
retary is further authorized to convert, not later 
than 1 year after enactment, any Central Valley 
Project 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. 
(3) All contracts entered into pursuant to para-
graph (1) shall— 
(A) require the repayment, either in lump 
sum or by accelerated prepayment, of the re-
maining amount of construction costs identified 
in the most current version of the Central Val-
ley Project Schedule of Irrigation Capital Allo-
cations by Contractor, as adjusted to reflect 
payments not reflected in such schedule, and 
properly assignable for ultimate return by the 
contractor, no later than January 31, 2013, or 
if made in approximately equal annual install-
ments, no later than January 31, 2016; such 
amount to be discounted by 1⁄2 the Treasury 
Rate. An estimate of the remaining amount of 
construction costs as of January 31, 2013, as 
adjusted, shall be provided by the Secretary of 
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the Interior to each contractor no later than 
180 days after enactment; 
(B) require that, notwithstanding sub-
section (c)(2), construction costs or other cap-
italized costs incurred after the effective date of 
the contract or not reflected in the schedule ref-
erenced in subparagraph (A), and properly as-
signable 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 collec-
tive annual allocation of capital costs to the 
contractors 
exercising 
contract 
conversions 
under this subsection of less than $5,000,000. 
If such amount is $5,000,000 or greater, such 
cost shall be repaid as provided by applicable 
Reclamation law, provided that the reference to 
the amount of $5,000,000 shall not be a prece-
dent in any other context; and 
(C) provide that power revenues will not be 
available to aid in repayment of construction 
costs allocated to irrigation under the contract. 
(4) All contracts entered into pursuant to para-
graph (2) shall— 
(A) require the repayment in lump sum of 
the remaining amount of construction costs 
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identified in the most current version of the 
Central Valley Project Schedule of Municipal 
and Industrial Water Rates, as adjusted to re-
flect payments not reflected in such schedule, 
and properly assignable for ultimate return by 
the contractor, no later than January 31, 2016. 
An estimate of the remaining amount of con-
struction costs as of January 31, 2016, as ad-
justed, shall be provided by the Secretary of the 
Interior to each contractor no later than 180 
days after enactment; and 
(B) require that, notwithstanding sub-
section (c)(2), construction costs or other cap-
italized costs incurred after the effective date of 
the contract or not reflected in the schedule ref-
erenced in subparagraph (A), and properly as-
signable 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 collec-
tive annual allocation of capital costs to the 
contractors 
exercising 
contract 
conversions 
under this subsection of less than $5,000,000. 
If such amount is $5,000,000 or greater, such 
cost shall be repaid as provided by applicable 
Reclamation law, provided that the reference to 
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the amount of $5,000,000 shall not be a prece-
dent in any other context. 
(b) FINAL ADJUSTMENT.—The amounts paid pursu-
ant to subsection (a) shall be subject to adjustment fol-
lowing a final cost allocation by the Secretary of the Inte-
rior upon completion of the construction of the Central 
Valley Project. In the event that the final cost allocation 
indicates that the costs properly assignable to the con-
tractor are greater than what has been paid by the con-
tractor, the contractor shall be obligated to pay the re-
maining allocated costs. The term of such additional re-
payment contract shall be no less than 1 year and no more 
than 10 years, however, mutually agreeable provisions re-
garding the rate of repayment of such amount may be de-
veloped by the parties. In the event that the final cost allo-
cation indicates that the costs properly assignable to the 
contractor are less than what the contractor has paid, the 
Secretary of the Interior is authorized and directed to 
credit such overpayment as an offset against any out-
standing or future obligation of the contractor. 
(c) APPLICABILITY OF CERTAIN PROVISIONS.— 
(1) Notwithstanding any repayment obligation 
under subsection (a)(3)(B) or subsection (b), upon a 
contractor’s compliance with and discharge of the 
obligation of repayment of the construction costs as 
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provided in subsection (a)(3)(A), the ownership and 
full-cost pricing limitations of any provision of Fed-
eral Reclamation Law shall not apply to lands in 
such district. 
(2) Notwithstanding any repayment obligation 
under paragraph (3)(B) or paragraph (4)(B) of sub-
section (a), or subsection (b), upon a contractor’s 
compliance with and discharge of the obligation of 
repayment of the construction costs as provided in 
paragraphs (3)(A) and (4)(A) of subsection (a), the 
Secretary of the Interior shall waive the pricing pro-
visions 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 
operation and maintenance costs and other charges 
applicable to such repayment contracts pursuant to 
the then-current rate-setting policy and applicable 
law. 
(d) 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 service or repayment contractor receiving 
water from the Central Valley Project, or shift any costs 
that would otherwise have been properly assignable to any 
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contractors absent this section, including operations and 
maintenance costs, construction costs, or other capitalized 
costs incurred after the date of enactment of this Act, to 
other such contractors. 
(e) STATUTORY INTERPRETATION.—Nothing in this 
part shall be construed to affect the right of any long- 
term contractor to use a particular type of financing to 
make the payments required in paragraph (3)(A) or para-
graph (4)(A) of subsection (a). 
Æ 
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