I 117th CONGRESS 2d Session H. R. 9084 IN THE HOUSE OF REPRESENTATIVES September 29, 2022 Mr. Valadao (for himself, Mr. McCarthy , Mr. Calvert , Ms. Conway , Mr. Garcia of California , Mr. Issa , Mrs. Kim of California , Mr. LaMalfa , Mr. McClintock , Mr. Obernolte , and Mrs. Steel ) introduced the following bill; which was referred to the Committee on Natural Resources A BILL To provide long-term water supply and regulatory reliability to drought-stricken California, and for other purposes.

1. Short title This Act may be cited as the Working to Advance Tangible and Effective Reforms for California Act or the WATER for California Act . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Definitions. Title I—CVP AND SWP OPERATIONS Sec. 101. Operation of the CVP and SWP. Sec. 102. Operations and reviews. Sec. 103. Application of State laws. Sec. 104. Reconsultation of NOAA Biological Opinion and FWS Biological Opinion. Sec. 105. Sunset. Sec. 106. Consultation on coordinated operations. Title II—ALLOCATIONS FOR SACRAMENTO VALLEY CONTRACTORS Sec. 201. Definitions. Sec. 202. Allocations of water. Sec. 203. Protection of refuge, municipal and industrial and other contractors. Sec. 204. Other contractors. Title III—INFRASTRUCTURE Sec. 301. Shasta Reservoir enlargement project. Sec. 302. Water supply plan; projects. Sec. 303. Conservation fish hatcheries. Sec. 304. Storage; Duration. Sec. 305. Shasta Dam enlargement. Title IV—CVPIA ACTIONS Sec. 401. CVPIA restoration actions. 3. Definitions In this Act, the following definitions apply: (1) CVP The term CVP means the Central Valley Project. (2) CVP contractor The term CVP contractor means any public water agency, water user organization, or person that has entered into a contract with the United States for water service from the CVP, whether in the form of a water service contract, repayment contract, water rights settlement contract, exchange contract, or refuge contract. (3) FWS biological opinion The term FWS Biological Opinion means the United States Fish and Wildlife Service Biological Opinion for the Reinitiation of Consultation on the Coordinated Operations of the Central Valley Project and State Water Project (Service File No. 08FBTD00–2019–F–0164) signed on October 21, 2019. (4) NOAA biological opinion The term NOAA Biological Opinion means the National Oceanic and Atmospheric Administration Fisheries Biological Opinion on the Long-term Operation of the Central Valley Project and the State Water Project (Consultation Tracking Number: WCRO–2016–00069) signed on October 21, 2019. (5) Preferred Alternative The term Preferred Alternative means the Alternative 1 (Preferred Alternative), as described in the Final Environmental Impact Statement on the Reinitiation of Consultation on the Coordinated Long-Term Operation of the Central Valley Project and the State Water Project, issued by the Bureau of Reclamation, and dated December 2019. (6) SWP The term SWP means the California State Water Project. (7) SWP contractor The term SWP contractor means a public agency that has entered into a long-term water supply contract with the California Department of Water Resources for water service from the SWP. I CVP AND SWP OPERATIONS 101. Operation of the CVP and SWP (a) Congressional direction regarding CVP and SWP operations The CVP and the SWP shall be operated in accordance with the Preferred Alternative and FWS Biological Opinion and NOAA Biological Opinion. (b) Application of laws and regulations to others Operation of the CVP and SWP shall proceed pursuant to subsection (a) except to the extent changes to operations are undertaken pursuant to one or more agreements, which are voluntarily entered into, approved, and implemented by CVP contractors, for operations of the CVP, and SWP contractors, for operations of the SWP, with all applicable Federal departments and the State of California, including any agency or board of the State of California. (c) Costs No cost, including water supply, financial, mitigation-related, or otherwise, associated with the implementation of any agreement under subsection (b) shall be imposed by any Federal department or agency or the State of California, including any agency or board of the State of California, directly or indirectly on any CVP contractor, SWP contractor, or any other person or entity, unless such costs are incurred on a voluntary basis. (d) Endangered Species Act Notwithstanding subsection (b), implementation of subsection (a) shall not conflict with the FWS Biological Opinion and the NOAA Biological Opinion. (e) Native species protection The State of California shall not impose any bag, catch, or size restriction or limit on the take or harvest of striped bass or any species of black bass, including largemouth bass, smallmouth bass, and spotted bass, that occupy the Sacramento-San Joaquin Rivers Delta or its tributaries. 102. Operations and reviews In carrying out section 101(a), the Secretary of the Interior and the Secretary of Commerce shall implement their statutory authorities in a manner that improves water supply reliability and enables the CVP and SWP to provide the maximum quantity of water supplies practicable to CVP agricultural, municipal, and industrial contractors, water service or repayment contractors, water rights settlement contractors, exchange contractors, refuge contractors, and SWP contractors, in accordance with the Preferred Alternative, NOAA Biological Opinion, and FWS Biological Opinion. 103. Application of State laws (a) Reduced water supply If, as a result of the application of applicable State law or regulation, the State of California (including any agency or board of the State of California) alters operation of the SWP in a manner that directly or indirectly results in reduced water supply to the SWP as compared with the water supply available under the Preferred Alternative, and as a result, CVP yield is greater than it otherwise would have been under the Preferred Alternative, then that additional yield shall be made available to the SWP for delivery to SWP Contractors to offset that reduced water supply. If it is necessary to reduce water supplies for any authorized uses of the CVP or CVP Contractors to make available to the SWP that additional yield, such reductions shall be applied proportionately to those authorized uses or CVP contractors that benefit from that increased yield. (b) No restriction of certain water rights The State of California (including any agency or board of the State of California) shall not restrict the exercise of any water right obtained pursuant to State law, including but not limited to a pre-1914 appropriative right or riparian right in order to offset any impact resulting from the implementation of this title on any species affected by operations of the CVP or the SWP. 104. Reconsultation of NOAA Biological Opinion and FWS Biological Opinion (a) Requirement for reconsultation (1) Requirement Neither the Secretary of the Interior, acting through the Commissioner of Reclamation, nor the Secretary of Commerce or their designees shall commence, complete, or request reinitiation of consultation on the coordinated long-term operation of the Central Valley Project and the State Water Project that will result in changes to or the replacement of the documents listed in paragraph (2) unless— (A) more than 75 percent of California has experienced 4 consecutive years of D3 or D4 level drought, as defined by the U.S. Drought Monitor; (B) the Commissioner of Reclamation identifies one specific factor or combination of factors under section 402.16 of title 50, Code of Federal Regulations; and (C) not fewer than 120 days before officially commencing or requesting reinitiation, the Secretary of the Interior notifies the Committee on Natural Resources of the House of Representatives and Committee on Energy and Natural Resources of the Senate, in writing, of— (i) the intent to commence or request reinitiation under this section; and (ii) the detailed justification for the identification of the specific factor or combination of factors under section 402.16 of title 50, Code of Federal Regulations, that was identified to satisfy the requirement in subparagraph (B). (2) Documents The documents referred to in paragraph (1) are the following: (A) The FWS Biological Opinion. (B) The NOAA Biological Opinion. (C) The Record of Decision for the Reinitiation of Consultation on the Coordinated Long-Term Modified Operations of the Central Valley Project and State Water Project, signed on February 18, 2020. (b) Applicable procedures and review For the purposes of this Act, before reinitiating consultation on the Long-Term Operation of the CVP and SWP, a request by the Secretary of the Interior, the Secretary of the Commerce, or any other Federal employee, to reinitiate consultation shall be made in writing and considered a rule under section 551 of title 5, United States Code, and subject to the requirements of sections 801 through 808 of that title. (c) Cooperation In implementing this section, the Secretary of the Interior and the Secretary of Commerce shall comply with requirements included in section 4004 of Public Law 114–322 . (d) Exclusion Notwithstanding subsection (b), in implementing this section, section 801(b)(2) of title 5, United States Code, shall not apply. 105. Sunset Sections 101 through 104 shall have no force or effect on and after the date that is 7 years after the date of the enactment of this Act. 106. Consultation on coordinated operations The Water Infrastructure Improvements for The Nation Act ( Public Law 114–322 ) is amended— (1) in section 4004(a)— (A) in paragraph (1), by inserting or proposed action after biological assessment, ; (B) in paragraph (2), by inserting or proposed action after biological assessment, ; (C) by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively; (D) after paragraph (2), by inserting the following new paragraph: (3) receive a copy of the proposed action and have the opportunity to review that document and provide comment to the action agency, which comments shall be afforded due consideration during development; ; and (E) in paragraph (7), as redesignated by subparagraph (C) of this paragraph— (i) in the matter preceding subparagraph (A), by inserting action agency proposes a proposed action or before the consulting agency ; (ii) in subparagraph (A), by inserting proposed action or before alternative will ; and (iii) in subparagraph (B), by striking alternative actions and insert actions or alternatives ; and (2) in section 4013, by deleting section 4004, which shall expire 10 years after the date of its enactment; and inserting section 4004, which shall expire on December 16, 2033; . II ALLOCATIONS FOR SACRAMENTO VALLEY CONTRACTORS 201. Definitions In this title, the following definitions apply: (1) The term existing CVP agricultural water service or repayment contractor within the Sacramento River Watershed means any water service or repayment contractor within the Shasta, Trinity, or Sacramento River division of the CVP that has in effect a water service or repayment contract on the date of enactment of this title that provides water for irrigation. (2) The terms Above Normal , Below Normal , Dry , and Wet , with respect to a year, have the meanings given those terms in the Sacramento Valley Water Year Type (40–30–30) Index. 202. Allocations of water Subject to section 203, and notwithstanding any changes to operations of the CVP or SWP voluntarily agreed to, approved, and implemented by CVP contractors, the Secretary of the Interior shall make every reasonable effort in the operation of the CVP to allocate water provided for irrigation purposes to each existing CVP agricultural water service contractor within the Sacramento River Watershed in accordance with the following: (1) Not less than 100 percent of the contract quantity of the existing CVP agricultural water service contractor within the Sacramento River Watershed in a Wet year. (2) Not less than 100 percent of the contract quantity of the existing CVP agricultural water service Contractor within the Sacramento River Watershed in an Above Normal year. (3) Not less than 100 percent of the contract quantity of the existing CVP agricultural water service contractor within the Sacramento River Watershed in a Below Normal year that is preceded by an Above Normal or Wet year. (4) Not less than 50 percent of the contract quantity of the existing CVP agricultural water service contractor within the Sacramento River Watershed in a Dry year that is preceded by a Below Normal, Above Normal, or Wet year. (5) In any other year not identified in any subsections (a) through (d), not less than twice the allocation percentage to south-of-Delta CVP agricultural water service contractors, up to 100 percent. 203. Protection of refuge, municipal and industrial and other contractors Nothing in section 202 shall— (1) adversely affect any protections for the environment, including the obligation of the Secretary of the Interior to make water available to managed wetlands pursuant to section 3406(d) of the Central Valley Project Improvement Act (Title XXXIV of Public Law 102–575 ; 106 Stat. 4722); (2) adversely affect any obligation of the Secretary of the Interior or the Secretary of Commerce under the FWS Biological Opinion or the NOAA Biological Opinion; (3) modify any provision of a water service contract that addresses municipal or industrial water shortage policies of the Secretary of the Interior; (4) affect or limit the authority of the Secretary of the Interior to adopt or modify municipal and industrial water shortage policies; (5) constrain, govern, or affect, directly or indirectly, the operations of the American River division of the CVP or any deliveries from that division or a unit or facility of that division; or (6) affect any allocation to a CVP municipal or industrial water service contractor by increasing or decreasing allocations to the contractor, as compared to the allocation the contractor would have received absent section 202. 204. Other contractors Nothing in section 202 shall— (1) affect the priority of any individual or entity with a Sacramento River settlement contract over water service or repayment contractors; (2) affect the United States ability to deliver water to the San Joaquin River exchange contractors from the Sacramento River and the Delta via the Delta-Mendota Canal or modify or amend the rights and obligations under the Purchase Contract between Miller and Lux and the United States and the Second Amended Exchange Contract between the United States, Department of the Interior, Bureau of Reclamation and Central California Irrigation District, San Luis Canal Company, Firebaugh Canal Water District and Columbia Canal Company; (3) affect the allocation of water to Friant division contractors of the CVP; (4) result in the involuntary reduction in contract water allocations to individuals or entities with contracts to receive water from the Friant division; (5) result in the involuntary reduction in water allocations to refuge contractors; or (6) authorize any actions inconsistent with State water rights law. III INFRASTRUCTURE 301. Shasta Reservoir enlargement project Section 40902(a)(2) of the Infrastructure Investment and Jobs Act ( Public Law 117–58 ) is amended— (1) in subparagraph (B)— (A) in the matter preceding clause (i), by striking this Act, except for any project for which— and inserting this Act; or ; and (B) by striking clauses (i) and (ii); and (2) in subparagraph (C), by striking (except that projects described in clauses (i) and (ii) of subparagraph (B) shall not be eligible) . 302. Water supply plan; projects (a) Plan Not later than 180 days after the date of the enactment of this Act, the Commissioner of Reclamation shall develop a water deficit report, which shall identify— (1) projected water supply shortages in the State of California for irrigation water service, municipal and industrial water service, water supply for wildlife refuges supplied by the CVP or the SWP; and (2) infrastructure projects or actions which, if taken, would— (A) significantly reduce or eliminate the projected water supply shortage; or (B) fulfill water allocations consistent with agricultural, municipal and industrial contractors, water service or repayment contractors, water rights settlement contractors, exchange contractors, and SWP contractors with water delivery contractors on the CVP and SWP. (b) Report to Congress The Commissioner of Reclamation shall provide a report described in subsection (a) to the House Committee on Natural Resources and the Senate Committee on Energy and Natural Resources upon its completion. 303. Conservation fish hatcheries Section 4010(b)(5) of the Water Infrastructure Improvements for The Nation Act ( Public Law 114–322 ) is amended by adding at the end the following: (D) Semi-annual report The Secretary of the Interior and the Secretary of Commerce shall submit to the Committee on Natural Resources of the House of Representatives and Committee on Energy and Natural Resources of the Senate semi-annual reports that detail activities carried out under this paragraph. . 304. Storage; Duration (a) Storage Section 4007 of the Water Infrastructure Improvements for The Nation Act ( Public Law 114–322 ) is amended— (1) in subsection (b)(1), by striking or any public agency organized pursuant to State law and inserting any public agency organized pursuant to State law, or any stakeholder ; and (2) in subsection (i), by striking January 1, 2021 and inserting January 1, 2028 . (b) Duration Section 4013 of the Water Infrastructure Improvements for The Nation Act ( Public Law 114–322 ) is amended— (1) in paragraph (1), by striking and ; (2) by redesignating paragraph (2) as paragraph (3); and (3) by inserting after paragraph (1) the following: (2) section 4007, which (except as provided in paragraph (3), shall expire on December 31, 2028; and . 305. Shasta Dam enlargement (a) Funding In accordance with section 4007 of the Water Infrastructure Improvements for the Nation Act ( Public Law 114–322 ), and as recommended by the Secretary in letters dated February 13, 2019; June 22, 2020; and December 3, 2020; funds made available in the Water and Related Resources account for the Bureau Reclamation in Acts of appropriation for fiscal years 2017, 2018, 2019, 2020, and 2021 shall be made available to the Shasta Dam and Reservoir Enlargement Project. (b) Clarification No provision of State law shall preclude or otherwise prevent any public water agency, including a public agency of the State, that contracts for the delivery of CVP water from assisting or cooperating with, whether by loan, grant, license, or otherwise, the planning and construction of any project undertaken by the Bureau of Reclamation to enlarge Shasta Dam. IV CVPIA ACTIONS 401. CVPIA restoration actions (a) Refuge water supply program Not later than two years after the date of enactment of this Act, the Secretary of the Interior shall complete the refuge water supply program under section 3406(d) of the Central Valley Project Improvement Act (Title XXXIV of Public Law 102–575 ; 106 Stat. 4722) and shall, within that two-year period, give priority to completing the refuge water supply program when making funding decisions from the Central Valley Project Restoration Fund established under section 3407 of the Central Valley Project Improvement Act (106 Stat. 4726), the Infrastructure Investment and Jobs Act ( Public Law 117–25 ), the Land and Water Conservation Fund Act ( Public Law 88–578 ), and other sources of funding. (b) Restoration actions deemed complete Upon completion of the refuge water supply program pursuant to subsection (a), or September 30, 2025, whichever occurs first, the Secretary of the Interior shall deem complete the fish, wildlife, and habitat mitigation and restoration actions mandated under section 3406 of the Central Valley Project Improvement Act (Title XXXIV of Public Law 102–575 ; 106 Stat. 4714).