To authorize the Secretary of the Interior to cooperate and assist in environmental and other studies and to execute and implement a contract for the design, construction, operation, and maintenance of facilities in the South Delta, California, and for other purposes.

SECTION 1. AUTHORIZATION.

    Subject to section 2 and in accordance with the provisions of this 
Act, the Secretary of the Interior is authorized and directed to 
execute and implement the ``Contract Among the United States Bureau of 
Reclamation, the California Department of Water Resources, and the 
South Delta Water Agency'' dated August 28, 1990 (hereafter in this Act 
referred to as the ``contract'').

SEC. 2. IMPLEMENTATION OF THE CONTRACT.

    (a) Conditions.--The Secretary of the Interior (hereafter in this 
Act referred to as the ``Secretary'') may not implement the 
construction of permanent barriers pursuant to the contract until after 
the following:
            (1) Environmental studies.--A final environmental impact 
        statement and environmental impact report is prepared pursuant 
        to the provisions of the National Environmental Policy Act of 
        1969 and the California Environmental Quality Act and is 
        certified by the appropriate lead agencies, and, if necessary, 
        the permanent barriers are modified or the contract amended to 
        address issues identified as part of the environmental review 
        process.
            (2) Testing program.--Notwithstanding any other provision 
        of the contract, the testing program called for in the contract 
        is continued for a period determined by the Secretary to be 
        sufficient to establish, from analysis of the testing data, 
        that the South Delta barrier facilities are likely to have the 
        desired water level, circulation, and quality results 
        anticipated at the time the contract was negotiated.
    (b) Applicable Laws; Monitoring Program.--Construction, operation, 
and maintenance of the temporary South Delta barrier facilities 
associated with the testing program referred to in subsection (a)(2) 
shall be in accordance with all applicable laws and regulations. The 
Secretary shall develop an environmental monitoring program with the 
assistance of and in coordination with the California Department of 
Fish and Game, the California Department of Water Resources, the United 
States Fish and Wildlife Service, and the National Marine Fisheries 
Service, which shall be in place during construction, operation, and 
maintenance of the temporary barrier facilities.
    (c) Interim Flows.--The interim water flows provided for in the 
contract shall not limit any existing or future obligation of the 
Secretary to provide additional instream flow releases from New Melones 
Reservoir for fish and wildlife purposes or other environmental 
purposes. This subsection does not create any new or additional 
authority that is or may otherwise be provided under applicable law. To 
the extent possible, water flows provided under the contract and for 
fishery purposes shall be released on a schedule which maximizes the 
efficiency of use of water allocated for water quality and fishery 
benefits and shall be made in coordination with the California 
Department of Fish and Game.
    (d) Compatibility With Old River Barrier.--The Secretary shall 
determine whether the barrier at the head of the Old River in the 
Sacramento/San Joaquin Delta, authorized in section 3406(b)(15) of the 
Central Valley Project Improvement Act (106 Stat. 4719), can be 
constructed and operated in a manner compatible with the South Delta 
barriers called for in the contract and whether the barrier facilities 
in the contract are likely to have the desired water level, 
circulation, and quality results anticipated at the time the contract 
was negotiated.
    (e) Contract Amendments.--
            (1) Required by environmental analysis.--If necessary, the 
        contract shall be amended to incorporate the changes required 
        by the results from the environmental and other studies and 
        testing referred to in this section. Any such amendment shall 
        not increase the payment obligations of the South Delta Water 
        Agency.
            (2) San joaquin river water quantity and quality.--In 
        negotiating the contract amendment in accordance with Article 
        4.b. of the contract, the Secretary shall consider--
                    (A) the activities and recommendations of other 
                programs for the improvement of flows and reduction of 
                salinity and toxic trace element discharges and 
                concentrations in the San Joaquin River Basin for fish 
                and wildlife and other purposes and for the attainment 
                of all applicable water quality standards, including 
                nondegradation requirements; and
                    (B) recommendations contained in the final report 
                of the San Joaquin Valley Drainage Program dated 
                September 1990.
            (3) Minimized alteration of activities and 
        recommendations.--The Secretary shall attempt to minimize any 
        necessary alteration required by the contract amendment of the 
        activities and recommendations referred to in paragraph (2).

SEC. 3. COSTS.

    (a) Allocation.--
            (1) In general.--Except as provided by subsection (b), the 
        costs of implementing the contract authorized by section 1 
        shall be allocated among the United States, the California 
        Department of Water Resources, and the South Delta Water Agency 
        in accordance with the provisions of Article 6 of the contract.
            (2) Limitation on expenditures by united states.--In no 
        event shall expenditures made by the United States for 
        construction exceed 50 percent of the actual construction costs 
        incurred pursuant to Article 6 of the contract.
            (3) Effect of availability of certain funds.--In the event 
        that funds become available from the California State General 
        Fund, from related water development mitigation agreements, or 
        as the result of legislation enacted providing for (A) 
        reimbursement of the incremental costs of the facilities 
        attributable to changes in design or construction for the 
        benefit of fisheries or navigation, or (B) the mitigation of 
        impacts caused by other upstream water users or waste 
        dischargers, such funds shall be applied to the overall cost of 
        implementing the contract, thereby evenly reducing the shares 
        paid by the United States and the California Department of 
        Water Resources.
            (4) Operation and monitoring costs.--The costs incurred by 
        the United States for operation and maintenance, including 
        monitoring, shall not exceed 50 percent of the actual operation 
        and maintenance costs.
            (5) Allocation of united states costs.--The costs incurred 
        by the United States for construction and for operation and 
        maintenance shall be allocated by the Secretary among the 
        reimbursable and nonreimbursable purposes of the Central Valley 
        Project for purposes of repayment in accordance with the 
        Federal reclamation laws (Act of June 17, 1902 (32 Stat. 388), 
        and Acts supplementary thereto and amendatory thereof).
            (6) Payments by south delta water agency.--Any payment to 
        the United States made by the South Delta Water Agency pursuant 
        to Article 6.f. of the contract shall be used for the further 
        implementation of the contract.
    (b) Costs Associated With Barrier at Head of Old River.--
Notwithstanding subsection (a), the costs associated with the barrier 
at the head of Old River shall be consistent with section 3406(b)(15) 
of the Central Valley Project Improvement Act (106 Stat. 4719).
    (c) Treatment of Costs Incurred.--The costs incurred with respect 
to items covered by the contract, both before and after the date of 
execution of the contract, including interest, shall be included in the 
total for the purposes of determining the share of the United States of 
construction, operation, and maintenance costs.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) Environmental, Testing, and Construction.--There is authorized 
to be appropriated--
            (1) $30,000,000 for the share of the costs of the United 
        States pursuant to Article 6 of the contract, including 
        environmental, testing, construction, and repayment of the 
        share of the United States of past costs incurred by the State 
        of California in developing the program set forth in the 
        contract; and
            (2) such sums as may be necessary for operation and 
        maintenance.
    (b) Contract Amendment.--There is authorized to be appropriated 
such funds as are necessary to negotiate an amendment to the contract 
in accordance with Article 4.b. of the contract. Nothing in this Act 
provides authorization for implementation of any amendment negotiated 
pursuant to Article 4.b. of the contract that is not otherwise 
authorized.
    (c) Availability.--Appropriations pursuant to this Act are 
authorized to remain available until expended without any fiscal year 
limitation but appropriations for construction of permanent barriers 
may not be expended until the conditions set forth in section 2(a) are 
completed.

Summary: Directs the Secretary of the Interior to implement a contract for the design, construction, operation, and maintenance of facilities in the South Delta, California.  Provides implementation conditions, including requirements regarding:  (1) environmental studies; (2) a Delta barrier facilities testing and monitoring program; (3) interim water flow; and (4) compatibility with the nearby Old River barrier. Sets forth conditions for cost sharing under such contract among the United States, the California Department of Water Resources, and the South Delta Water Agency. 
Authorizes appropriations.