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 
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. 
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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 
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 
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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-
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 
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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 
(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-
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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 
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 
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