(2) MULTIPLE BENEFIT PROJECTS FAVORED.—
The Secretary and Federal agencies are authorized 
to carry out the activities set forth in this title. In 
selecting projects and programs for increasing water 
yield and water supply, improving water quality, and 
enhancing environmental benefits, projects and pro-
grams with multiple benefits shall be emphasized. 
(3) ELEMENTS
REGULATED.—To the extent 
that CALFED Bay-Delta Program projects and ele-
ments are subject to regulation under section 404 of 
the Clean Water Act, the United States Army Corps 
of Engineers and the United States Environmental 
Protection Agency shall not consider, as alternatives 
to projects that are elements of the overall 
CALFED Bay-Delta Program, programs, projects, 
or actions beyond those described in the Record of 
Decision, nor shall they favor one CALFED Bay-
Delta Program project or element over another. 
(4) BALANCE.—The Secretary shall ensure that 
all elements of the CALFED Bay-Delta Program 
need to be completed and operated cooperatively to 
maintain the balanced progress in all CALFED 
Bay-Delta Program areas. 
(d) PROGRAM ACTIVITIES.—
(1) WATER STORAGE.—Except as provided by 
section 207(b), the amounts authorized to be appro-
priated for fiscal years 2004 through 2007 under 
this Act, no more than $102,000,000 may be ex-
pended for the following: 
(A) 
WATER
STORAGE
SUPPLY
AND 
YIELD.—For purposes of implementing the 
CALFED Bay-Delta Program, the Secretary is 
authorized to undertake all necessary planning 
activities and feasibility studies required for the 
development of recommendations by the Sec-
retary to Congress on the construction and im-
plementation of specific water supply and yield, 
ground water management, and ground water 
storage projects and implementation of com-
prehensive water management planning. The re-
quirements of section 9(a) of the Act of August 
4, 1939 (43 U.S.C. 485h(a); 53 Stat. 1193) 
shall be deemed to be met through the perform-
ance of a feasibility study as authorized within 
this section as well as those feasibility studies 
authorized under the Consolidated Appropria-
tions Resolution Fiscal Year 2003, Public Law 
108–7, House Report 108–10, division D, title 
II, section 215.
(B) FEASIBILITY STUDIES.—All feasibility 
studies completed for storage projects as a re-
sult of this section shall include identification of 
project benefits and beneficiaries and a cost al-
location plan consistent with the benefits to be 
received, for both governmental and non-gov-
ernmental entities. 
(C) DISAPPROVAL
RESOLUTION.—If the 
Secretary determines a project to be feasible, 
and meets the requirements under subpara-
graph (B), the report shall be submitted to 
Congress. If Congress does not pass a dis-
approval resolution of the feasibility study dur-
ing the first 120 days before Congress (not in-
cluding days on which either the House of Rep-
resentatives or the Senate is not in session be-
cause of an adjournment of more than three 
calendar days to a day certain) the project shall 
be authorized, subject to appropriations. 
(D) WATER
SUPPLY
AND
WATER
YIELD 
STUDY.—(i) The Secretary, acting through the 
Bureau of Reclamation and in consultation with 
the State, shall conduct a study of available 
water supplies and water yield and existing de-
mand and future needs for water—
(I) within the units of the Central 
Valley Project; 
(II) within the area served by Central 
Valley Project agricultural water service 
contractors and municipal and industrial 
water service contractors; and 
(III) within the Bay-Delta solution 
area. 
(ii) RELATIONSHIP TO PRIOR STUDY.—The 
study under clause (i) shall incorporate and re-
vise as necessary the study required by section 
3408(j) of the Central Valley Project Improve-
ment Act of 1992 (Public Law 102–575). 
(E) REPORT.—The Secretary shall submit 
a report to the congressional authorizing com-
mittees by not later than 180 days after the 
date of the enactment of this title describing 
the following: 
(i) Water yield and water supply im-
provements, if any, for Central Valley 
Project agricultural water service contrac-
tors and municipal and industrial water 
service contractors. 
(ii) All water management actions or 
projects that would improve water yield or
water supply and that, if taken or con-
structed, would balance available water 
supplies and existing demand for those 
contractors and other water users of the 
Bay-Delta watershed with due recognition 
of water right priorities and environmental 
needs. 
(iii) The financial costs of the actions 
and projects described under clause (ii). 
(iv) The beneficiaries of those actions 
and projects and an assessment of their 
willingness to pay the capital costs and op-
eration and maintenance costs thereof. 
(F) OTHER ACTIVITIES.—Studying, devel-
oping and implementing ground water manage-
ment and ground water storage projects (not to 
exceed $50,000,000); and 
(G) 
PLANNING.—Comprehensive 
water 
management 
planning 
(not 
to 
exceed 
$6,000,000). 
(2) CONVEYANCE.—Except as provided by sec-
tion 207(b), the amounts authorized to be appro-
priated for fiscal years 2004 through 2007 under 
this Act, no more than $77,000,000 may be ex-
pended for the following:
(A) South Delta Actions (not to exceed 
$45,000,000): 
(i) South Delta Improvements Pro-
gram for the following: 
(I) To increase the State Water 
Project export limit to 8500 cfs, sub-
ject to subclause (VI). 
(II) To install permanent, oper-
able barriers in the south Delta. The 
Federal Agencies shall cooperate with 
the State to accelerate installation of 
the permanent, operable barriers in 
the south Delta, with the intent to 
complete that installation not later 
than the end of fiscal year 2006. 
(III) To design and construct 
fish screens and intake facilities at 
Clifton Court Forebay and the Tracy 
Pumping Plant facilities. 
(IV) To increase the State Water 
Project export to the maximum capa-
bility of 10,300 cfs. 
(ii) Reduction of agricultural drainage 
in south Delta channels and other actions 
necessary to minimize impacts of such
drainage on water quality, including but 
not limited to, design and construction of 
the relocation of drinking water intake fa-
cilities to delta water users. The Secretary 
shall coordinate actions for relocating in-
take facilities on a time schedule consistent 
with subclause (i)(II). 
(iii) Design and construction of lower 
San Joaquin River floodway improvements. 
(iv) Installation and operation of tem-
porary barriers in the south Delta until 
fully operable barriers are constructed. 
(v) Actions to protect navigation and 
local diversions not adequately protected by 
the temporary barriers. 
(vi) Actions to increase pumping shall 
be accomplished in a manner consistent 
with California law protecting: 
(I) deliveries to, costs of, and 
water suppliers and water users, in-
cluding but not limited to, agricultural 
users, that have historically relied on 
water diverted from the Delta; and
(II) the quality of water for exist-
ing municipal, industrial, and agricul-
tural uses. 
(vi) Actions at Franks Tract to im-
prove water quality in the Delta. 
(B) North Delta Actions (not to exceed 
$12,000,000): 
(i) Evaluation and implementation of 
improved operational procedures for the 
Delta Cross Channel to address fishery 
and water quality concerns. 
(ii) Evaluation of a screened through-
Delta facility on the Sacramento River. 
(iii) Design and construction of lower 
Mokelumne River floodway improvements. 
(C) Interties (not to exceed $10,000,000): 
(i) Evaluation and construction of an 
intertie between the State Water Project 
and the Central Valley Project facilities at 
or near the City of Tracy. 
(ii) Assessment of the connection of 
the Central Valley Project to the State 
Water Project’s Clifton Court Forebay 
with a corresponding increase in the 
Forebay’s screened intake.
(D) Evaluation and implementation of the 
San Luis Reservoir lowpoint improvement 
project (not to exceed $10,000,000). 
(3) WATER USE EFFICIENCY.—Of the amounts 
authorized to be appropriated for fiscal years 2004 
through 2007 under this Act, no more than 
$153,000,000 may be expended for the following: 
(A) Water conservation projects that pro-
vide water supply reliability, water quality, and 
ecosystem benefits to the Bay-Delta solution 
area (not to exceed $61,000,000). 
(B) Technical assistance for urban and ag-
ricultural water conservation projects (not to 
exceed $5,000,000). 
(C) Water recycling and desalination 
projects, including but not limited to projects 
identified in the Bay Area Water Recycling 
Plan and the Southern California Comprehen-
sive Water Reclamation and Reuse Study (not 
to exceed $84,000,000), as follows: 
(i) In providing financial assistance 
under this clause, the Secretary shall give 
priority consideration to projects that in-
clude regional solutions to benefit regional 
water supply and reliability needs.
(ii) The Secretary shall review any 
feasibility level studies for seawater desali-
nation and regional brine line projects that 
have been completed, whether or not those 
studies were prepared with financial assist-
ance from the Secretary. 
(iii) The Secretary shall report to the 
Congress within 90 days after the comple-
tion of a feasibility study or the review of 
a feasibility study for the purposes of pro-
viding design and construction assistance 
for the construction of desalination and re-
gional brine line projects. 
(iv) The Federal share of the cost of 
any activity carried out with assistance 
under this clause may not exceed the lesser 
of 35 percent of the total cost of the activ-
ity or $50,000,000. 
(D) Water measurement and transfer ac-
tions (not to exceed $1,500,000). 
(E) Certification of implementation of best 
management practices for urban water con-
servation (not to exceed $1,500,000). 
(4) WATER TRANSFERS.—Of the amounts au-
thorized to be appropriated for fiscal years 2004
through 2007 under this Act, no more than 
$3,000,000 may be expended for the following: 
(A) Increasing the availability of existing 
facilities for water transfers. 
(B) Lowering transaction costs through 
permit streamlining. 
(C) Maintaining a water transfer informa-
tion clearinghouse. 
(5) ENVIRONMENTAL
WATER
ACCOUNT.—Of 
the amounts authorized to be appropriated for fiscal 
years 2004 through 2007 under this Act, no more 
than $75,000,000 may be expended for implementa-
tion of the Environmental Water Account. 
(6) INTEGRATED
REGIONAL
WATER
MANAGE-
MENT PLANS.—Of the amounts authorized to be ap-
propriated for fiscal years 2004 through 2007 under 
this Act, no more than $95,000,000 may be ex-
pended for the following: 
(A) Establishing a competitive grants pro-
gram to assist local and regional communities 
in California in developing and implementing 
integrated regional water management plans to 
carry out the Objectives and Solution Principles 
of the CALFED Bay-Delta Program as stated 
in the Record of Decision.
(B) Implementation of projects and pro-
grams in California that improve water supply 
reliability, water quality, ecosystem restoration, 
and flood protection, or meet other local and re-
gional needs, that are consistent with, and 
make a significant contribution to, Stage 1 of 
the CALFED Bay-Delta Program.
(7) ECOSYSTEM
RESTORATION.—(A) Of the 
amounts authorized to be appropriated for fiscal 
years 2004 through 2007 under this title, no more 
than $100,000,000 may be expended for projects 
under this subsection. 
(B) The Secretary is authorized to undertake 
the following projects under this paragraph: 
(i) Restoration of habitat in the San Fran-
cisco Bay-Delta watershed, San Pablo Bay, and 
Suisun Bay and Marsh, including tidal wetlands 
and riparian habitat. 
(ii) Fish screen and fish passage improve-
ment projects. 
(iii) Implementation of an invasive species 
program, including prevention, control, and 
eradication. 
(iv) Development and integration of State 
and Federal agricultural programs that benefit
wildlife into the Ecosystem Restoration Pro-
gram. 
(v) Financial and technical support for lo-
cally-based collaborative programs to restore 
habitat while addressing the concerns of local 
communities. 
(vi) Water quality improvement projects to 
manage salinity, selenium, mercury, pesticides, 
trace metals, dissolved oxygen, turbidity, sedi-
ment, and other pollutants. 
(vii) Land and water acquisitions to im-
prove habitat and fish spawning and survival in 
the Bay-Delta watershed. 
(viii) Integrated flood management and 
levee protection projects for improving eco-
system restoration. 
(ix) Scientific evaluations and targeted re-
search on program activities, including appro-
priate use of adaptive management concepts. 
(x) Preparation of management plans for 
all properties acquired, and update current 
management plans, prior to the purchase or any 
contribution to the purchase of any interest in 
land for ecosystem.
(xi) Strategic planning and tracking of 
program performance using established proto-
cols and/or bio-indicators. 
(C) Project Initiation Report for each project, 
describing project purpose, objective, and cost, shall 
be transmitted to Congress following Secretarial cer-
tification, 30 days (not including days on which ei-
ther the House of Representatives or the Senate is 
not in session because of an adjournment of more 
than three calendar days to a day certain) prior to 
implementing ecosystem restoration actions as de-
scribed under this paragraph. Such reports shall be 
required for all ecosystem projects, (including com-
prehensive projects that are composed of several 
components and are to be completed by staged im-
plementation) exceeding $20,000 in Federal funds. 
Annual ecosystem restoration project summary re-
ports shall be submitted to Congress through the 
Secretary highlighting progress of the project imple-
mentation. The reports required to be submitted 
under this paragraph shall consider the following on 
each project: 
(i) A description of ecological monitoring 
data to be collected for the restoration projects 
and how the data are to be integrated, stream-
lined, compatible, and designed to measure 
overall trends of ecosystem health in the Bay-
Delta watershed. 
(ii) Whether the restoration project has in-
tegrated monitoring plans and descriptions of 
protocols, or bio-indicators, to be used for gaug-
ing cost-effective performance of the project. 
(iii) Whether the proposed project is a part 
of a larger, more comprehensive restoration 
project in a particular part of the solution area, 
and if so, how the proposed project contributes 
to the larger project. 
(iv) A secretarial determination, or strat-
egy, that utilizes existing Federal land, State 
land, or other land acquired for ecosystem res-
toration, with amounts provided by the United 
States or the State, to the extent that such 
lands are available within the CALFED solu-
tion area. 
(v) A determination of the potential cumu-
lative impacts, or induced damages of fee title, 
easement, and/or lease acquisition of land on 
local and regional economies, and adjacent land 
and landowners; and a description of how such 
impacts will be mitigated.
(vi) A description of actions that will be 
taken to mitigate any induced damages from 
the conversion of agriculture land including the 
degree to which wildlife and habitat values will 
increase due to the land conversion. 
(D) Conditions, if applicable, for projects and 
activities under this paragraph are as follows: 
(i) A requirement that before obligating or 
expending Federal funds to acquire land, the 
Secretary shall first determine that existing 
Federal land, State land, or other land acquired 
for ecosystem restoration with amounts pro-
vided by the United States or the State, to the 
extent such lands are available, is not available 
for that purpose. If no public land is available 
the Secretary, prior to any federal expenditure 
for private land acquisition, shall—
(I) make an accounting of all habitat 
types located on publicly owned land 
throughout the solution area; 
(II) not convert prime farm land and 
unique farm land, to the maximum extent 
as practicable, as identified by local, State, 
or Federal land use inventories, including
the Natural Resources Conservation Serv-
ice; 
(III) not conflict with existing zoning 
for agriculture use; and 
(IV) not involve other changes in ex-
isting environment due to location and na-
ture of converting farmland to non-farm-
land use. 
(ii) A requirement that in determining 
whether to acquire private land for ecosystem 
restoration, the Secretary shall—
(I) conduct appropriate analysis, in-
cluding cost valuation to assure that pri-
vate land acquisitions prioritize easements 
and leases over acquisition by fee title un-
less easements and leases are unavailable 
or unsuitable for the stated purposes; 
(II) consider the potential cumulative 
impacts on the local and regional econo-
mies of transferring the property into gov-
ernment ownership and— 
(aa) describe the actions that will 
be taken, to the maximum extent 
practicable, to mitigate any induced 
damages; and
(bb) determine that the land ac-
quired will add increasing value to the 
purposes of ecosystem restoration; 
(III) mitigate any potential induced 
damage, to the maximum extent prac-
ticable, of any conversion of agriculture 
land for ecosystem restoration due to the 
implementation of the CALFED Bay-Delta 
Program; and 
(IV) partner with landowners and 
local agencies to develop cooperating land-
owner commitments that are likely to meet 
coequal objectives of achieving local eco-
nomic and social goals and implementing 
the ecosystem restoration goals. 
(8) WATERSHEDS.—Of the amounts authorized 
to be appropriated for fiscal years 2004 through 
2007 under this Act, no more than $50,000,000 
may be expended for the following: 
(A) Building local capacity to assess and 
manage watersheds affecting the Bay-Delta so-
lution area. 
(B) Technical assistance for watershed as-
sessments and management plans.
(C) Developing and implementing locally-
based watershed conservation, maintenance, 
and restoration actions. 
(9) WATER QUALITY.—Of the amounts author-
ized to be appropriated for fiscal years 2004 through 
2007 under this Act, no more than $50,000,000 
may be expended for the following: 
(A) Addressing drainage problems in the 
San Joaquin Valley to improve downstream 
water quality, including habitat restoration 
projects that reduce drainage and improve 
water quality, provided that—
(i) a plan is in place for monitoring 
downstream water quality improvements; 
(ii) State and local agencies are con-
sulted on the activities to be funded; and 
(iii) this clause is not intended to cre-
ate any right, benefit, or privilege. 
(B) Implementing source control programs 
in the Bay-Delta watershed. 
(C) Developing recommendations through 
technical panels and advisory council processes 
to meet the CALFED Bay-Delta Program goal 
of continuous improvement in water quality for 
all uses.
(D) Investing in treatment technology 
demonstration projects. 
(E) Controlling runoff into the California 
aqueduct and other similar conveyances. 
(F) Addressing water quality problems at 
the North Bay Aqueduct. 
(G) Studying recirculation of export water 
to reduce salinity and improve dissolved oxygen 
in the San Joaquin River. 
(H) Projects that may meet the Objectives 
and Solution Principles of the water quality 
component of CALFED Bay-Delta Program. 
(I) Development of water quality ex-
changes and other programs to make high qual-
ity water available to urban areas. 
(J) Development and implementation of a 
plan to meet all existing water quality stand-
ards for which the State and Federal water 
projects have responsibility. 
(10) LEVEE STABILITY.—Of the amounts au-
thorized to be appropriated for fiscal years 2004 
through 2007 under this Act, no more than 
$70,000,000 may be expended for the following:
(A) Assisting local reclamation districts in 
reconstructing Delta levees to a base level of 
protection not to exceed $20,000,000. 
(B) Enhancing the stability of levees that 
have particular importance in the system 
through the Delta Levee Special Improvement 
Projects program not to exceed $20,000,000. 
(C) Developing best management practices 
to control and reverse land subsidence on is-
lands in the Bay-Delta watershed (not to exceed 
$1,000,000). 
(D) Refining the Delta Emergency Man-
agement Plan (not to exceed $1,000,000). 
(E) Developing a Delta Risk Management 
Strategy after assessing the consequences of 
failure levees in the Bay-Delta watershed from 
floods, seepage, subsidence, and earthquakes 
(not to exceed $500,000). 
(F) Developing a strategy for reuse of 
dredged materials on islands in the Bay-Delta 
watershed (not to exceed $1,500,000). 
(G) Evaluating and, where appropriate, re-
habilitating the Suisun Marsh levees (not to ex-
ceed $6,000,000).
(H) Integrated flood management, eco-
system 
restoration, 
and 
levee 
protection 
projects, including design and construction of 
lower San Joaquin River and lower Mokelumne 
River floodway improvements and other projects 
under the Sacramento-San Joaquin Comprehen-
sive Study (not to exceed $20,000,000). 
(11) MONITORING
AND
ANALYSIS.—Of the 
amounts authorized to be appropriated for fiscal 
years 2004 through 2007 under this Act, no more 
than $50,000,000 may be expended for the fol-
lowing: 
(A) Establishing and maintaining an inde-
pendent technical board, technical panels, and 
standing boards to provide oversight and peer 
review of the CALFED Bay-Delta Program. 
(B) Conducting expert evaluations and sci-
entific assessments of all CALFED Bay-Delta 
Program elements. 
(C) Coordinating existing monitoring and 
scientific research programs. 
(D) Developing and implementing adaptive 
management experiments to test, refine, and 
improve technical understandings.
(E) Establishing performance measures 
and monitoring and valuating the performance 
of all CALFED Bay-Delta Program elements. 
(F) Preparing an annual science report. 
(12) PROGRAM MANAGEMENT, OVERSIGHT, AND 
COORDINATION.—Of the amounts authorized to be 
appropriated for fiscal years 2004 through 2007 
under this Act, no more than $25,000,000 may be 
expended by the Secretary, in cooperation with the 
State, for the following: 
(A) CALFED Bay-Delta Program-wide 
tracking of schedules, finances, and perform-
ance. 
(B) Multi-agency oversight and coordina-
tion of CALFED Bay-Delta Program activities 
to ensure program balance and integration. 
(C) Development of interagency cross-cut 
budgets and a comprehensive finance plan to al-
locate costs in accordance with the beneficiary 
pays provisions of the Record of Decision. 
(D) Coordination of public outreach and 
involvement, including tribal, environmental jus-
tice, and public advisory activities under the 
Federal Advisory Committee Act. 
(E) Development of annual reports.
(13) DIVERSIFICATION OF WATER SUPPLIES.—
Of the amounts authorized to be appropriated for 
fiscal years 2004 through 2007 under this Act, no 
more than $30,000,000 may be expended to diver-
sify sources of level 2 refuge supplies and modes of 
delivery to refuges and to acquire additional water 
for level 4 refuge supplies. 
(e) AUTHORIZED ACTIONS.—The Secretary and the 
Federal agency heads are authorized to carry out the ac-
tivities authorized by this title through the use of grants, 
loans, contracts, and cooperative agreements with Federal 
and non-Federal entities where the Secretary or Federal 
agency head determines that the grant, loan, contract, or 
cooperative agreement is likely to assist in implementing 
the authorized activity in an efficient, timely, and cost-
effective manner. 
SEC. 202. MANAGEMENT. 
(a) COORDINATION.—In carrying out the CALFED 
Bay-Delta Program, the Federal agencies shall coordinate, 
to the maximum extent practicable, their activities with 
the State agencies. 
(b) PUBLIC PARTICIPATION.—In carrying out the 
CALFED Bay-Delta Program, the Federal agencies shall 
cooperate with local and tribal governments and the public 
through a federally chartered advisory committee or other
appropriate means, to seek input on program elements 
such as planning, design, technical assistance, and devel-
opment of peer review science programs. 
(c) OBJECTIVE REVIEW AND ANALYSIS.—In carrying 
out the CALFED Bay-Delta Program, the Federal agen-
cies shall seek to ensure, to the maximum extent prac-
ticable, that—
(1) all major aspects of implementing the 
CALFED Bay-Delta Program are subjected to cred-
ible and objective scientific review and economic 
analysis; and 
(2) major decisions are based upon the best 
available scientific information. 
(d) AGENCIES’ DISCRETION.—This Act shall not af-
fect the discretion of any of the Federal agencies or the 
State agencies or the authority granted to any of the Fed-
eral agencies or State agencies by any other Federal or 
State law. 
(e) STATUS REPORTS.—The Secretary shall report, 
quarterly to the Congressional Committees, on the 
progress in achieving the water supply targets as described 
in Section 2.2.4 of the Record of Decision, the environ-
mental water account requirements as described in Section 
2.2.7, and the water quality targets as described in Sec-
tion 2.2.9, and any pending actions that may affect the
ability of the CALFED Bay-Delta Program to achieve 
those targets and requirements. 
SEC. 203. IMPLEMENTATION SCHEDULE REPORT. 
(a) The Secretary, in cooperation with the Governor, 
shall submit a report of the CALFED Bay-Delta Program 
not later than 90 days after the date of the enactment 
of this Act and December 15 of each year thereafter to 
the appropriate authorizing and appropriating Committees 
of the Senate and the House of Representatives that de-
scribes the status and projected implementation schedule 
of all components through fiscal year 2008 of the 
CALFED Bay-Delta Program. The Report shall contain 
the following: 
(1) STATEMENT
OF
BALANCE.—The report 
shall identify the progress in each of the categories 
listed in paragraph (2). The Secretary, in coopera-
tion with the Governor, shall prepare and certify a 
statement of whether the program is in balance tak-
ing into consideration the following: 
(A) The status of all actions, including 
goals, schedules, and financing agreements and 
funding commitments. 
(B) Progress on storage projects, including 
yield, conveyance improvements, levee improve-
ments, water quality projects, and water use ef-
ficiency programs and reasons for any delays. 
(C) Completion of key projects and mile-
stones identified in the Ecosystem Restoration 
Program. 
(D) Development and implementation of 
local programs for watershed conservation and 
restoration. 
(E) Progress in improving water supply re-
liability and implementing the Environmental 
Water Account. 
(F) Achievement of commitments under 
State and Federal endangered species laws. 
(G) Implementation of a comprehensive 
science program. 
(H) Progress toward acquisition of the 
State and Federal permits, including permits 
issued under section 404(a) of the Clean Water 
Act, for implementation of projects in all identi-
fied program areas. 
(I) Progress in achieving benefits in all ge-
ographic regions covered by the CALFED Bay-
Delta Program. 
(J) Status of actions that compliment the 
Record of Decision.
(K) Status of mitigation measures ad-
dressed under section 201(d)(7). 
(L) Revisions to funding commitments and 
CALFED Bay-Delta Program responsibilities. 
(2) Accomplishments in the past fiscal year and 
year-to-date in achieving the objectives of—
(A) additional and improved water storage; 
including supply and yield; 
(B) water quality; 
(C) water use efficiency; 
(D) ecosystem restoration; 
(E) watershed management; 
(F) levee system integrity; 
(G) water transfers; 
(H) water conveyance; and 
(I) water supply reliability. 
(3) REVISED
SCHEDULE.—If the report and 
statement of balance under subsection (a) concludes 
that the CALFED Bay-Delta Program is not pro-
gressing in a balanced manner so that no certifi-
cation of balanced implementation can be made, the 
Secretary, in consultation with the Governor, shall 
prepare a revised schedule to ensure that the 
CALFED Bay-Delta Program is likely to progress 
in a balanced manner consistent with the objectives
and solution principles of the Record of Decision 
and in consideration of subsections (a) and (b) of 
this section. This revised schedule shall be subject to 
approval by the Secretary, in consultation by the 
Governor, and upon such approval shall be sub-
mitted to the appropriate authorizing and appro-
priating Committees of the Senate and the House of 
Representatives. 
(b) CROSSCUT BUDGET AND AUTHORIZATION OF AP-
PROPRIATIONS.—
(1) 
CROSSCUT
BUDGET.—The 
President’s 
Budget shall include the appropriate departmental 
and agency authorities, and request for the level of 
funding for each of the Federal agencies to carry out 
its responsibilities under the CALFED Bay-Delta 
Program. Such funds shall be requested for the Fed-
eral agency with authority and programmatic re-
sponsibility for the obligation of such funds. No later 
than 30 days after submission of the President’s 
Budget to the Congress, the Director of the Office 
of Management and Budget shall submit to the ap-
propriate authorizing and appropriating committees 
of the Senate and the House of Representatives an 
updated interagency budget crosscut report, as re-
quired under Public Law 108–7.
(2) FINANCIAL
SUMMARY.—As part of the 
crosscut budget submission, a financial report cer-
tified by the Secretary, and the Office of Manage-
ment and Budget, containing a detailed accounting 
of current year, budget year and all funds received 
and obligated by all Federal and State agencies re-
sponsible for implementing the CALFED Bay-Delta 
Program in the previous fiscal year, a budget for the 
proposed projects (including a description of the 
project, authorization level, and project status) to be 
carried out through fiscal year 2008 the Federal 
portion of funds authorized under this title, and a 
list of all projects to be undertaken in the upcoming 
fiscal year with the Federal portion of funds author-
ized under this title. 
SEC. 204. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary 
and 
the 
heads 
of 
the 
Federal 
agencies 
$880,000,000 to pay the Federal share of programs and 
activities under this title for fiscal years 2004 through 
2007, in accordance with the provisions of this title. The 
funds shall remain available without fiscal year limitation. 
SEC. 205. FEDERAL SHARE OF COSTS. 
(a) IN GENERAL.—The Federal share of the cost of 
implementing of the CALFED Bay-Delta Program as set
forth in the Record of Decision shall not exceed 33.3 per-
cent. 
(b) 
CALFED 
BAY-DELTA
PROGRAM
BENE-
FICIARIES.—
(1) IN GENERAL.—The Secretary shall ensure 
that all beneficiaries, including the environment, 
shall pay for benefits received from all projects or 
activities carried out under the CALFED Bay-Delta 
Program. This requirement shall not be limited to 
storage and conveyance projects and shall be imple-
mented so as to encourage integrated resource plan-
ning. 
SEC. 206. USE OF EXISTING AUTHORITIES AND FUNDS. 
(a) GENERALLY.—The heads of the Federal agencies 
shall use the authority under the alternative Acts identi-
fied by the Secretary to carry out the purposes of this 
title. Funds available under the alternative Acts shall be 
used before other funds made available under this title for 
the same activities. 
(b) USE OF FUNDS.—In addition to funds authorized 
and appropriated for section 201(d)(1) or section 
201(d)(2), the Secretary, in consultation with the heads 
of the Federal agencies, may use money appropriated for 
any activity authorized under this title for any activity au-
thorized under section 201(d)(1) or section 201(d)(2) if
the Secretary, in consultation with the heads of the Fed-
eral agencies, determines that the funds appropriated for 
the other activity cannot be used for that other activity. 
This section shall be construed to apply to funds appro-
priated after the date of the enactment of this Act unless 
the Act appropriating the funds specifically and explicitly 
states that this section shall not apply to those funds. 
(c) USE OF UNEXPENDED BUDGET AUTHORITY.—
The Secretary is authorized to utilize all unexpended 
budget authority under this title for any activity author-
ized under section 201(d)(1) or section 201(d)(2). 
(d) REPORT.—Not later than 60 days after the date 
of the enactment of this Act and annual thereafter, the 
Secretary, in consultation with the heads of the Federal 
agencies, shall transmit to Congress a report that de-
scribes the following: 
(1) A list of all existing authorities, including 
the authorities listed in subsection (a), under which 
the Secretary or the heads of the Federal agencies 
may carry out the purposes of this Act. 
(2) A list funds authorized in the previous fiscal 
year for the authorities listed under paragraph (1). 
(3) A list of the projects carried out with the 
funds listed in paragraph (2) and the amount of 
funds obligated and expended for each project.
SEC. 207. COMPLIANCE WITH STATE AND FEDERAL LAW. 
Nothing in this Act—
(1) invalidates of preempts State water law or 
an interstate compact governing water; 
(2) alters the rights of any State to any appro-
priated share of the waters of any body of surface 
or ground water, whether determined by past or fu-
ture interstate compacts or final judicial allocations; 
(3) preempts or modifies any State or Federal 
law or interstate compact governing water quality or 
disposal; or 
(4) confers on any non-federal entity the ability 
to exercise any Federal right to the waters of any 
stream or to any ground water resource. 
TITLE III—SALTON SEA 
SEC. 301. FUNDING TO ADDRESS SALTON SEA. 
There is authorized to be appropriated to the Sec-
retary $300,000,000 for activities to address issues sur-
rounding the Salton Sea.
TITLE IV—ESTABLISHMENT OF 
CENTRALIZED 
REGULATORY 
OFFICE 
SEC. 401. ESTABLISHMENT OF OFFICE. 
The Secretary shall establish an office, in Sacramento 
California, and may establish other offices in the capitol 
of any Reclamation State requesting such an office, for
projects within their State, for the use of all Federal agen-
cies and State agencies that are likely to be involved in 
issuing permits and conducting environmental reviews for 
water supply, water supply capital improvement projects, 
levee maintenance, and delivery systems in California or 
any Reclamation State requesting such an office. 
SEC. 402. ACCEPTANCE AND EXPENDITURE OF CONTRIBU-
TIONS. 
(a) IN GENERAL.—The Secretary may accept and ex-
pend funds contributed by non-Federal public entities to 
expedite the consideration of permits and the conducting 
of environmental reviews for all projects described in sec-
tion 401 and to offset the Federal costs of processing such 
permits and conducting such reviews. The Secretary shall 
allocate funds received under this section among Federal 
agencies in accordance with the costs such agencies incur 
in processing such permits and conducting such reviews. 
The allocated funds shall be for reimbursements of such 
costs. 
(b) PROTECTION OF IMPARTIAL DECISIONMAKING.—
In carrying out this section, the Secretary and the heads 
Federal agencies receiving funds under this section shall 
ensure that the use of the funds accepted under this sec-
tion will not impact impartial decisionmaking with respect 
to the issuance of permits or conducting of environmental
reviews, either substantively or procedurally, or diminish, 
modify, or otherwise affect the statutory or regulatory au-
thorities of such agencies. 
TITLE V—RURAL WATER SUPPLY 
PROGRAM 
SEC. 501. RURAL WATER SUPPLY PROGRAM. 
(a) IN GENERAL.—The Secretary is authorized to es-
tablish a program to plan, design, and construct rural 
water systems in coordination with other Federal agencies 
with rural water programs, and in cooperation with non-
Federal project entities. 
(b) REQUIREMENTS.—Provisions to be included in 
the establishment of a rural water system shall include 
the following: 
(1) Appraisal investigations. 
(2) Feasibility studies. 
(3) Environmental reports. 
(4) Cost sharing responsibilities. 
(5) Responsibility for operation and mainte-
nance. 
(6) Prohibition for funding for irrigation. 
(c) CRITERIA.—The Secretary is authorized to de-
velop criteria for determining which projects are eligible 
for participation in the program established under this 
section.
(d) REPORTS TO CONGRESS.—The Secretary shall 
submit to Congress the program developed under this sec-
tion. 
(e) RECLAMATION STATES.—The program estab-
lished by this section shall be limited to Reclamation 
States.
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