2000
<PRE>[DOCID: f:s976is.txt]






107th CONGRESS
  1st Session
                                 S. 976

    To provide authorization and funding for the enhancement of the 
ecosystems, water supply, and water quality of the State of California.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2001

Mrs. Feinstein introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
    To provide authorization and funding for the enhancement of the 
ecosystems, water supply, and water quality of the State of California.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``California Ecosystem, Water Supply, 
and Water Quality Enhancement Act of 2001''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agency head.--The term ``agency head'' means the head 
        of a Federal agency.
            (2) Authorizing committee.--The term ``authorizing 
        committee'' means each of--
                    (A) the Committee on Energy and Natural Resources 
                of the Senate;
                    (B) the Committee on Environment and Public Works 
                of the Senate; and
                    (C) the Committee on Resources of the House of 
                Representatives.
            (3) Bay-delta.--The term ``Bay-Delta'' means the San 
        Francisco Bay-Delta.
            (4) Bay-delta program.--The term ``Bay-Delta Program'' 
        means the programs, projects, and activities--
                    (A) carried out under the CALFED Bay-Delta Program 
                referred to in the California Bay-Delta Environmental 
                Enhancement and Water Security Act (division E of 
                Public Law 104-208; 110 Stat. 3009-748);
                    (B) identified in the record of decision, including 
                the complementary actions; or
                    (C) developed under section 4.
            (5) Bay-delta program objectives.--The term ``Bay-Delta 
        Program objectives'' means the objectives established in the 
        record of decision for--
                    (A) water quality;
                    (B) ecosystem restoration;
                    (C) water supply reliability; and
                    (D) levee protection.
            (6) Bay-delta program policy group.--The term ``Bay-Delta 
        Program Policy Group'' means the organization of the Federal 
        agencies and the State agencies established to provide policy 
        oversight of the Bay-Delta Program in accordance with section 
        4(b).
            (7) California update.--The term ``California update'' 
        means the review and updating of the State water plan required 
        every 5 years by the Department of Water Resources of the 
        State.
            (8) Complementary actions.--The term ``complementary 
        actions'' means the programs and projects described in section 
        1.2 of the record of decision and identified as such throughout 
        the record of decision that were not included in the final 
        environmental impact statement and report preferred alternative 
        described in the record of decision.
            (9) Delta.--The term ``Delta'' means the Sacramento-San 
        Joaquin River Delta.
            (10) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (11) Ecosystem enhancement program.--The term ``ecosystem 
        enhancement program'' means the programs and activities 
        developed under section 3.
            (12) Ecosystem restoration program.--The term ``ecosystem 
        restoration program'' means the program described in section 
        2.2.2 of the record of decision.
            (13) Environmental water account.--The term ``environmental 
        water account'' means the reserve of water provided for in 
        section 2.2.7 of the record of decision to provide water, in 
        addition to the amount of the regulatory baseline, to protect 
        and restore Delta fisheries.
            (14) Federal agency.--The term ``Federal agency'' means 
        each of the following Federal agencies:
                    (A) The Department of Agriculture (including the 
                Natural Resources Conservation Service and the Forest 
                Service).
                    (B) The Department of Commerce (including the 
                National Marine Fisheries Service).
                    (C) The Department of Defense (including the Corps 
                of Engineers).
                    (D) The Department of Energy (including the Western 
                Area Power Administration).
                    (E) The Department of the Interior (including the 
                Bureau of Land Management, the Bureau of Reclamation, 
                the United States Fish and Wildlife Service, and the 
                United States Geological Survey).
                    (F) The Environmental Protection Agency.
            (15) Governor.--The term ``Governor'' means the Governor of 
        the State.
            (16) Implementation memorandum.--The term ``implementation 
        memorandum'' means the memorandum of understanding on 
        implementation of the Bay-Delta Program executed by the Federal 
        agencies and the State agencies.
            (17) Record of decision.--The term ``record of decision'' 
        means the Federal record of decision dated August 28, 2000, 
        relating to the Bay-Delta Program, issued by certain Federal 
        agencies under the National Environmental Policy Act of 1969 
        (42 U.S.C. 4321 et seq.).
            (18) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (19) Stage 1.--The term ``stage 1'' means the programs and 
        projects planned for the first 7 years of the Bay-Delta 
        Program, as specified in the record of decision.
            (20) State.--The term ``State'' means the State of 
        California.
            (21) State agency.--The term ``State agency'' means each 
        agency of the State that participates in the Bay-Delta Program, 
        including--
                    (A) the Department of Fish and Game;
                    (B) the Department of Food and Agriculture;
                    (C) the Department of Health Services;
                    (D) the Department of Water Resources;
                    (E) the Environmental Protection Agency;
                    (F) the Resources Agency; and
                    (G) the Water Resources Control Board.
            (22) Water supply program.--The term ``water supply 
        program'' means the long-term water supply enhancement program 
        developed under section 5.

SEC. 3. ECOSYSTEM ENHANCEMENT PROGRAM.

    (a) Findings.--Congress finds that--
            (1) under the Bay-Delta Program, there has been developed 
        an ecosystem restoration plan that is intended to achieve the 
        environmental restoration objectives of the Bay-Delta Program, 
        including--
                    (A) improved and increased aquatic and terrestrial 
                habitats;
                    (B) improved ecological functions in the Bay-Delta;
                    (C) increased populations of plant and animal 
                species; and
                    (D) recovery of threatened and endangered species;
            (2) the record of decision estimates that--
                    (A) measures included in the ecosystem restoration 
                program will require a minimum of $1,000,000,000, in 
                addition to baseline funding for related restoration 
                efforts, during the first 7 years of implementation; 
                and
                    (B
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) $200,000,000, in addition to baseline funding 
                for related restoration efforts and sums necessary for 
                the ecosystem restoration program, will be needed to 
                support the environmental water account over at least 
                the first 4 years of implementation;
            (3) the establishment of a dedicated ecosystem restoration 
        fund is necessary to ensure that implementation of the Bay-
        Delta Program maintains the necessary balance between the 
        environmental goals and other goals of the Bay-Delta Program; 
        and
            (4) the ecosystem enhancement program is intended to ensure 
        that the environment receives water of sufficient quality and 
        quantity, and at the appropriate time, to achieve the 
        environmental restoration objectives of the Bay-Delta Program.
    (b) Federal Role.--
            (1) Performance objectives.--
                    (A) In general.--In consultation with the State, 
                the Secretary shall develop measurable performance 
                objectives and an associated timeline for 
                implementation of the ecosystem restoration program.
                    (B) Inclusions.--Performance objectives for the 
                ecosystem restoration program shall include--
                            (i) attainment of self-sustaining fish and 
                        wildlife populations; and
                            (ii) recovery of threatened and endangered 
                        species.
            (2) Independent scientific panel.--
                    (A) In general.--The Secretary shall convene an 
                independent scientific panel to identify the quality 
                and quantity of water needed, and the time at which the 
                water is necessary, to achieve the performance 
                objectives developed under paragraph (1).
                    (B) Use of best available science.--The panel shall 
                base its recommendations on the best available science.
            (3) Report.--The Secretary shall submit to the authorizing 
        committees an annual report that--
                    (A) describes the progress of the Bay-Delta Program 
                in meeting the performance objectives developed under 
                paragraph (1); and
                    (B) recommends projects and activities in addition 
                to the Bay-Delta Program to further the goals and 
                objectives of the ecosystem restoration program.
            (4) Additional funding mechanisms.--
                    (A) Development.--The Secretary and the agency 
                heads shall cooperate with the State in developing 
                recommendations for additional funding mechanisms that 
                will ensure long-term funding for the ecosystem 
                restoration program.
                    (B) Report.--Not later than June 30, 2005, the 
                Secretary, in cooperation with the Federal agencies and 
                the State agencies, shall submit to the authorizing 
                committees a report that provides recommendations 
                concerning how to fund the ecosystem restoration 
                program adequately.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out the ecosystem 
enhancement program, to remain available until expended.

SEC. 4. BAY-DELTA PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the mission of the Bay-Delta Program is to develop a 
        long-term comprehensive plan that will restore the ecological 
        health and improve water management for beneficial uses in the 
        Bay-Delta system;
            (2)(A) the Bay-Delta Program is committed--
                    (i) to finding equitable solutions that solve all 
                of the complex and interrelated issues concerning water 
                use; and
                    (ii) to ensuring that improvements for some problem 
                areas will not be made without corresponding 
                improvements for other problem areas; and
            (B) the record of decision provides that agencies 
        participating in the Bay-Delta Program will establish an 
        environmental water account to provide water in addition to the 
        amount of the regulatory baseline to protect and restore Delta 
        fisheries;
            (3) the Bay-Delta Program was developed as a joint Federal-
        State program to deal effectively with the multijurisdictional 
        issues involved in managing the Bay-Delta; and
            (4) the Federal agencies and the State agencies executed a 
        memorandum of understanding on implementation of the Bay-Delta 
        Program that--
                    (A) provides for interim governance of the Bay-
                Delta Program; and
                    (B) is part of the record of decision.
    (b) Program Governance.--
            (1) Interim governance structure.--The Secretary and the 
        agency heads shall--
                    (A) operate under the terms of the implementation 
                memorandum until such time as the implementation 
                memorandum is replaced by approval of a permanent 
                governance structure; and
                    (B) participate in the replacement governance 
                structure.
            (2) Permanent governance structure.--The Secretary and the 
        agency heads shall--
                    (A) work with their State counterparts to develop a 
                permanent governance structure to replace the 
                implementation memorandum that--
                            (i) provides for meaningful participation 
                        by local governments and agencies;
                            (ii) preserves area-of-origin rights; and
                            (iii) encourages local and regional 
                        partnerships; and
                    (B) seek Federal and State authorization and 
                approval of the permanent governance structure, as 
                appropriate.
    (c) Federal Role.--The Secretary and the agency heads shall--
            (1) participate in the governance and administration of the 
        Bay-Delta Program under this section; and
            (2) subject to the availability of appropriations under 
        subsection (g), carry out all actions necessary to implement 
        stage 1, including--
                    (A) planning;
                    (B) pre-feasibility and feasibility studies;
                    (C) environmental review;
                    (D) acquisition;
                    (E) pilot programs;
                    (F) grants and loans;
                    (G) construction of environmental and physical 
                improvements identified in the record of decision for 
                implementation in stage 1; and
                    (H) other actions in all Bay-Delta Program areas, 
                including the complementary actions.
    (d) Performance.--
            (1) In general.--In carrying out this Act, the Secretary 
        and the agency heads shall ensure, to the maximum extent 
        practicable, that Federal participation in the Bay-Delta 
        Program results in--
                    (A) simultaneous carrying out of water supply and 
                ecosystem improvements; and
                    (B) balanced, continuous, measurable, and 
                significant progress toward achieving Bay-Delta Program 
                objectives through the application of the Bay-Delta 
                Program solution principles and the balanced 
                implementation of projects in the 8 program areas 
                covered by the record of decision, consisting of--
                            (i) ecosystem restoration;
                            (ii) water storage;
                            (iii) water conveyance;
                            (iv)
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 water use efficiency;
                            (v) watershed management;
                            (vi) levee system integrity;
                            (vii) water transfers; and
                            (viii) water quality.
            (2) South-of-delta water supply assurance.--
                    (A) Finding.--Congress finds that the Secretary 
                should--
                            (i) carry out the record of decision with 
                        respect to water allocations to south-of-Delta 
                        Central Valley Project agricultural service 
                        contractors; and
                            (ii) implement the increase, in the manner 
                        and to the extent described in the record of 
                        decision, in normal years to south-of-Delta 
                        agricultural water service contractors of 15 
                        percent (or greater) of existing contract 
                        totals, to the level of 65 to 70 percent.
                    (B) Report to congress.--In accordance with 
                subsection (f)(2)(C)(xiii), the Secretary shall report 
                to Congress with respect to increasing south-of-Delta 
                Central Valley Project water supplies.
            (3) Local partnerships.--The Secretary, as appropriate in 
        managing the implementation of the Bay-Delta Program, shall 
        seek out and promote partnerships with local interests and 
        programs that seek to integrate various management options so 
        as to maximize the final resource benefits.
            (4) Environmental water account priorities and operation.--
                    (A) In general.--In the allocation and use of the 
                environmental water account and the ecosystem 
                restoration program assets, the Secretary shall give 
                first priority to meeting obligations under the 
                Endangered Species Act of 1973 (16 U.S.C. 1531 et 
                seq.).
                    (B) Effect of failure to meet water purchase 
                targets.--If, by December 31 of any year, the 
                environmental water account water purchase targets, or 
                their functional equivalents, have not been met, the 
                Federal agencies shall--
                            (i) continue their efforts to meet the 
                        water purchase targets; and
                            (ii) make use of the available 
                        environmental water account assets to--
                                    (I) avoid listing of species under 
                                section 4(c) of the Endangered Species 
                                Act of 1973 (16 U.S.C. 1533(c));
                                    (II) avoid jeopardizing the 
                                continued survival of any species 
                                listed under section 4(c) of that Act; 
                                and
                                    (III) carry out subclauses (I) and 
                                (II) in a manner consistent with 
                                minimizing water supply and water 
                                quality impacts.
    (e) Public Participation.--In carrying out the Bay-Delta Program, 
the Secretary shall cooperate with State, local, and tribal 
governments, nongovernmental organizations, and the public, through a 
federally chartered advisory committee or other appropriate means, to 
seek input on program elements such as--
            (1) planning;
            (2) design;
            (3) technical assistance;
            (4) ecosystem restoration; and
            (5) development of peer review science programs.
    (f) Reporting, Oversight, and Accountability.--
            (1) In general.--Not later than February 15 of each year, 
        the Secretary, in consultation with the Governor, the Federal 
        agencies, the State agencies, and other interested persons and 
        agencies, shall--
                    (A) review the progress of the Bay-Delta Program in 
                meeting the implementation schedule provided in the 
                record of decision; and
                    (B) submit to the authorizing committees a report 
                that describes the status of implementation of all 
                elements of the Bay-Delta Program.
            (2) Summaries.--The report under paragraph (1)(B) shall--
                    (A) include a detailed accounting of all funds 
                received by the Federal agencies and the State agencies 
                for the Bay-Delta Program under the budget of the Bay-
                Delta Program for the previous fiscal year, including--
                            (i) a description of all projects and 
                        activities funded under this Act in that fiscal 
                        year; and
                            (ii) the amount of any unexpended funds for 
                        that fiscal year;
                    (B) describe--
                            (i) expenditures of the Bay-Delta Program 
                        in the previous fiscal year and the current 
                        fiscal year up to the date of the report; and
                            (ii) accomplishments in the previous fiscal 
                        year and the current fiscal year up to the date 
                        of the report in achieving improvement in the 
                        Bay-Delta Program elements of--
                                    (I) ecosystem restoration;
                                    (II) water storage;
                                    (III) water conveyance;
                                    (IV) water use efficiency;
                                    (V) watershed management;
                                    (VI) levee system integrity;
                                    (VII) water transfers; and
                                    (VIII) water quality; and
                    (C) describe the status of all actions (including 
                goals, schedules, and financing agreements), 
                including--
                            (i) completion of key projects and 
                        milestones identified in the ecosystem 
                        restoration portion of the Bay-Delta Program;
                            (ii) development and implementation of 
                        local programs for watershed conservation and 
                        restoration;
                            (iii) progress in the improvement of water 
                        quality, water supply reliability, and 
                        implementation of the ecosystem restoration 
                        plan and the environmental water account;
                            (iv) achievement of commitments under the 
                        Endangered Species Act of 1973 (16 U.S.C 1531 
                        et seq.) and any equivalent State law;
                            (v) implementation of a comprehensive 
                        science program;
                            (vi) progress in carrying out storage 
                        projects, conveyance improvements, levee 
                        improvements, water quality projects, and water 
                        use efficiency programs;
                            (vii) progress in the acquisition of the 
                        Federal and State permits (including permits 
                        under section 404 of the Federal Water 
                        Pollution Control Act (33 U.S.C. 1344)) for 
                        implementation of projects in all identified 
                        program areas;
                            (viii) progress in achieving benefits in 
                        all geographic regions covered by the Bay-Delta 
                        Program;
                            (ix) enactment of appropriate legislation 
                      
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  on water transfer, ground water management, 
                        water use efficiency, and governance issues;
                            (x) the complementary actions;
                            (xi) mitigation efforts referred to in the 
                        record of decision;
                            (xii) any revision of funding commitments 
                        and program responsibilities;
                            (xiii) progress in meeting the water supply 
                        projections for south-of-Delta water users as 
                        described in the record of decision and 
                        described in subsection (d)(2), including--
                                    (I) progress in defining the term 
                                ``normal year'';
                                    (II) progress in defining how the 
                                water supply projections translate into 
                                water supply objectives for years other 
                                than normal years;
                                    (III) progress in developing a plan 
                                for meeting the water supply objectives 
                                in all types of year;
                                    (IV) a description of the actual 
                                water deliveries to south-of-Delta and 
                                other Central Valley Project 
                                contractors; and
                                    (V) a full explanation of the 
                                factors that resulted in meeting or 
                                failing to meet the water supply 
                                projections and the goals described in 
                                subclauses (I) through (IV);
                            (xiv) progress in meeting the State Water 
                        Project pumping goals as described in the 
                        record of decision, including--
                                    (I) progress in developing 
                                operating criteria for and implementing 
                                the increased pumping limits; and
                                    (II)(aa) an estimate of the 
                                benefits that will be derived from the 
                                increased pumping, including the 
                                projected and actual water delivery 
                                improvements to State Water Project 
                                contractors and other south-of-Delta 
                                water users; and
                                    (bb) a full explanation of the 
                                factors that resulted in providing or 
                                failing to provide those benefits;
                            (xv) assessment of the cumulative effect of 
                        Bay-Delta Program activities on--
                                    (I) water supply available for 
                                agricultural, urban, and environmental 
                                purposes;
                                    (II) long-term ground water 
                                overdraft;
                                    (III) land available for 
                                sustainable agriculture;
                                    (IV) accumulation of salts in the 
                                soils and ground water south of the 
                                Delta; and
                                    (V) electrical energy production 
                                and consumption;
                            (xvi) development of a finance strategy to 
                        implement the ``beneficiaries pay'' provision 
                        of the record of decision;
                            (xvii) progress in implementing user fees 
                        as described in the record of decision; and
                            (xviii) progress in implementing ground 
                        water management programs as described in the 
                        record of decision.
            (3) Failure to adhere to schedule or objectives.--
                    (A) Goal.--Bay-Delta Program implementation shall 
                achieve balanced progress in all program areas.
                    (B) Revised schedule.--If, after submission of a 
                report under paragraph (1)(B), the Governor (with 
                respect to a State agency) or the Secretary (with 
                respect to a Federal agency) determines that there has 
                not been substantial compliance by the agency with the 
                schedule or objectives established by the record of 
                decision, or if a timely annual review has not been 
                carried out under paragraph (1)(A), the Governor and 
                the Secretary, after providing notice to, and 
                consulting with, each other, the Federal agencies, and 
                the State agencies, shall prepare a revised schedule 
                that ensures achievement of balanced progress in all 
                program areas in accordance with--
                            (i) the record of decision; and
                            (ii) any applicable regulatory compliance 
                        documents.
                    (C) Effect of noncompliance on availability of 
                funding.--If the Governor or the Secretary makes a 
                finding of noncompliance under subparagraph (B), State 
                funds (if the determination is made by the Governor) or 
                Federal funds (if the determination is made by the 
                Secretary) to the extent authorized to be appropriated, 
                shall be made available for expenditure in the 
                subsequent fiscal year only if a revised schedule or 
                revised objectives have been developed not later than 
                180 days after the date on which the finding is made.
            (4) Specific performance objectives.--
                    (A) In general.--The Secretary, in cooperation with 
                the Federal agencies, the State agencies, and the Bay-
                Delta Program Policy Group, shall submit as part of the 
                report of the Secretary under paragraph (1)(B) detailed 
                performance objectives for all Bay-Delta Program 
                projects and activities.
                    (B) Updating of performance objectives.--The 
                Secretary may update the performance objectives, with 
                appropriate explanation, in a subsequent report.
                    (C) Presumption of compliance.--If performance 
                objectives have been approved by the Bay-Delta Program 
                Policy Group for all Bay-Delta Program areas under the 
                governance provisions of section (b), achievement of 
                the performance objectives by the Federal agencies, the 
                State agencies, and local agencies shall create a 
                presumption of compliance with paragraph (3).
    (g) Funding.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to pay the 
        Federal share of the cost of carrying out stage 1, to remain 
        available until expended, including--
                    (A) planning;
                    (B) pre-feasibility and feasibility studies;
                    (C) environmental review;
                    (D) pilot programs;
                    (E) grants and loans;
                    (F) purchases of water; and
                    (G) administration of all Bay-Delta Program areas.
            (2) Conditions on use of funds.--The use of funds made 
        available under paragraph (1) to carry out a project or 
        activity of stage 1 shall be subject to the following 
        c
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onditions:
                    (A) Approval.--Funding of the project or activity 
                shall be subject to approval by the Bay-Delta Program 
                Policy Group.
                    (B) Requirements.--Projects and activities carried 
                out using funds made available under paragraph (1) may 
                include, but shall not be limited to, a project or 
                activity that is--
                            (i) funded in part by funds made available 
                        to support the environmental water account;
                            (ii) an environmental enhancement project 
                        that--
                                    (I) improves fish passages through 
                                modification or removal of 1 or more 
                                locally owned dams (including the 
                                Woodbridge Dam on the Mokelumne River, 
                                the Clough Dam on Mill Creek, and dams 
                                on Butte Creek, Battle Creek, and Clear 
                                Creek);
                                    (II) restores Clear Creek, Deep 
                                Creek, the Consumnes River, the San 
                                Joaquin River, or the Tuolumne River;
                                    (III) restores fish and wildlife 
                                habitat in the Delta, San Pablo Bay, 
                                Suisun Bay, or the Yolo bypass;
                                    (IV) designates not less than 8,000 
                                nor more than 12,000 acres of land as 
                                agricultural land, taking into 
                                consideration the needs of wildlife on 
                                that land;
                                    (V) restores fish and wildlife 
                                habitat and hydraulic needs on Frank's 
                                Tract in the Delta;
                                    (VI) improves salmon spawning and 
                                juvenile salmon survival in upstream 
                                tributaries;
                                    (VII) protects and restores the 
                                Sacramento River meander corridor as 
                                part of the Sacramento River 
                                Conservation Area (including protection 
                                and restoration through revegetation, 
                                restoration of stream meander, and the 
                                purchase of a conservation easement 
                                covering not less than 15,000 acres);
                                    (VIII) implements a program to 
                                control invasive species;
                                    (IX) assesses the potential need 
                                for additional fish contamination, 
                                monitoring, and consumption advisories 
                                in the Bay-Delta watershed;
                                    (X) assesses agency programs to 
                                reduce turbidity and sedimentation; or
                                    (XI) improves dissolved oxygen 
                                conditions in the San Joaquin River 
                                near Stockton, California; or
                            (iii) a study to assess the feasibility 
                        of--
                                    (I) enlarging Shasta Dam;
                                    (II) providing new north-of-Delta 
                                storage;
                                    (III) enlarging Los Vaqueros 
                                Reservoir;
                                    (IV) providing new San Joaquin 
                                River storage;
                                    (V) conducting a project or 
                                activity concerning the San Luis 
                                Reservoir bypass;
                                    (VI) conducting a project or 
                                activity concerning the Freeport 
                                regional project;
                                    (VII) conducting 1 or more new 
                                ground water storage projects;
                                    (VIII) conducting 1 or more south-
                                of-Delta blending projects;
                                    (IX) conducting 1 or more Bay-area 
                                blending and exchange projects; or
                                    (X) carrying out 1 or more south-
                                of-Delta conveyance improvements.
                    (C) Cost sharing.--
                            (i) In general.--The Federal share of the 
                        cost of the project or activity shall not 
                        exceed 50 percent.
                            (ii) Availability.--Funds made available 
                        under paragraph (1) shall not be available for 
                        obligation until such time as the non-Federal 
                        share of the cost of the project or activity is 
                        made available for obligation.
                            (iii) Acquisition or construction 
                        activities.--If the project or activity 
                        concerns an acquisition or construction 
                        activity under the Bay-Delta Program, and the 
                        Federal share of the acquisition or 
                        construction costs is estimated to be, on 
                        completion of the project or activity, less 
                        than $10,000,000, funds made available under 
                        paragraph (1) may be expended for the 
                        acquisition or construction activity only if 
                        the activity--
                                    (I) has been subject to 
                                environmental review and approval as 
                                required under applicable Federal and 
                                State law (including regulations); and
                                    (II) has been certified by the Bay-
                                Delta Program Policy Group to be 
                                consistent with the record of decision.
            (3) Acquisition of water and authorization of construction 
        projects.--
                    (A) In general.--There are authorized to be 
                appropriated such sums as are necessary to pay the 
                Federal share of the cost of carrying out 1 or more 
                projects and activities--
                            (i) to acquire water as provided in the 
                        record of decision for the ecosystem 
                        restoration program and the environmental water 
                        account;
                            (ii) to enlarge Shasta Dam, subject to an 
                        analysis of the effects that the enlargement of 
                        Shasta Dam may have on the eligibility of the 
                        McCloud River for designation as a component of 
                        the national wild and scenic rivers system 
                        under the Wild and Scenic Rivers Act (16 U.S.C. 
                        1271 et seq.);
                            (iii) to enlarge Los Vaqueros Reservoir, 
                        subject to an affirmative vote of a majority of 
                        the voters in the Contra Costa Water District; 
                        and
                            (iv) to provide new in-Delta storage.
                    (B) Federal share.--The Federal share shall not 
                exceed 50 percent.
            (4) Reports on construction projects.--

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                    (A) In general.--The Secretary, in cooperation with 
                the Federal agencies and the State agencies, shall 
                submit to the authorizing committees a report on each 
                construction project under this Act that includes--
                            (i) a description of the construction 
                        project;
                            (ii) a copy of each feasibility and 
                        operational study carried out concerning the 
                        construction project;
                            (iii) a copy of each final environmental 
                        impact study carried out concerning the 
                        construction project (including any associated 
                        reports);
                            (iv) a certification by the Bay-Delta 
                        Program Policy Group that the construction 
                        project is consistent with the record of 
                        decision;
                            (v) a cost-benefit analysis of the 
                        construction project;
                            (vi) a description of benefits and 
                        beneficiaries of the construction project;
                            (vii) a cost allocation plan for the 
                        construction project; and
                            (viii) financing and repayment plans for 
                        the construction project.
                    (B) Approval.--A report submitted under 
                subparagraph (A) shall be considered to be approved 
                unless each authorizing committee disapproves the 
                report within 60 days after the date on which the 
                authorizing committee receives the report.
            (5) Baseline funding levels.--Funds authorized to be 
        appropriated under paragraph (1) shall be in addition to the 
        baseline funding levels established for projects and programs 
        authorized as of the date of enactment of this Act under--
                    (A) the Central Valley Project Improvement Act 
                (title XXXIV of Public Law 102-575; 106 Stat. 4706); or
                    (B) any other Federal program concerning Bay-Delta 
                ecosystem protection and restoration.

SEC. 5. WATER SUPPLY PROGRAM.

    (a) Findings.--Congress finds that--
            (1) long-term water supply planning for the State is the 
        responsibility of the State and political subdivisions of the 
        State;
            (2) because of the significant and ongoing Federal 
        participation in water development and environmental regulation 
        in the State, it is not practicable to carry out comprehensive 
        water supply planning without Federal involvement; and
            (3) the State has assumed leadership for the conduct, as 
        part of the California update, of a comprehensive assessment of 
        State water demands and resources that takes into consideration 
        State, regional, and local circumstances.
    (b) Federal Role.--
            (1) In general.--The Secretary and the agency heads may 
        work with the State agencies in conducting, as part of the 
        California update, a comprehensive assessment of State water 
        demands and resources that takes into consideration State, 
        regional, and local circumstances.
            (2) Recommendation of additional projects and activities.--
        The Secretary, in cooperation with the Federal agencies, the 
        State agencies, and regional and local agencies, shall 
        recommend to the authorizing committees projects and 
        activities, in addition to projects and activities of the Bay-
        Delta Program, that--
                    (A) facilitate the attainment of balanced water 
                supply and demand in the State;
                    (B) achieve increased water supply system 
                reliability, water quality, and water use efficiency in 
                the State;
                    (C) reduce ground water overdraft;
                    (D) improve water conveyance facilities in the 
                State;
                    (E) incorporate full consideration of--
                            (i) water transfers;
                            (ii) demand-side management alternatives;
                            (iii) water recycling;
                            (iv) conservation;
                            (v) desalination; and
                            (vi) other innovative ways of achieving 
                        balance and improvement in the use of water 
                        conveyance facilities;
                    (F) preserve, maintain, or enhance the 
                environmental benefits of the ecosystem restoration 
                plan of the Bay-Delta Program; and
                    (G) subject all considered alternatives to a cost-
                benefit analysis that is reviewable by Congress.
            (3) Grants for assessment of state water demands.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary shall develop and implement a grant program 
                to pay the Federal share of the cost of conducting the 
                comprehensive assessment of State water demands and 
                resources referred to in paragraph (1) (including 
                alternatives for meeting those demands).
                    (B) Federal share.--The Federal share shall not 
                exceed 50 percent.
                    (C) Condition.--As a condition of the receipt of a 
                grant under this paragraph, a grant recipient shall 
                make the results of each assessment conducted using 
                grant funds available to the Federal agencies and the 
                State agencies.
            (4) Grants and loans for other projects.--
                    (A) In general.--The Secretary, in cooperation with 
                the Federal agencies and the State agencies, shall 
                establish a competitive loan and grant program to 
                assist local agencies in financing projects not 
                included in the Bay-Delta Program that--
                            (i) facilitate the attainment of balanced 
                        water supply and demand in the State;
                            (ii) achieve increased water supply system 
                        reliability, water quality, and water use 
                        efficiency in the State;
                            (iii) reduce ground water overdraft;
                            (iv) improve water conveyance facilities in 
                        the State;
                            (v) incorporate full consideration of--
                                    (I) water transfers;
                                    (II) demand-side management 
                                alternatives;
                                    (III) water recycling;
                                    (IV) conservation;
                                    (V) desalination; and
                                    (VI) other innovative ways of 
                                achieving balance and improvement in 
                                the use of water conveyance facilities;
                            (vi) preserve, maintain, or enhance the 
                        environmental benefits of the ecosystem 
                        restoration plan of the Bay-Delta Program; and
                            (vii) subject all considered alternatives 
                        to a cost-benefit analysis that is reviewable 
                        by Congress.
                    (B) Federal share.--The Federal share of the cost 
                of carrying out a project described in subparagraph (A) 
                shall not exceed 50 percent.
            (5) Funding level recommendations.--The Secretary, in 
        cooperation with the Federal agencies and the State
146f
 agencies 
        and through the use of local and regional assessments, shall 
        recommend to the authorizing committees levels of Federal 
        funding assistance necessary to implement projects and 
        activities recommended under paragraph (2).
            (6) Report.--Not later than June 30, 2005, the Secretary, 
        in cooperation with the Federal agencies and the State 
        agencies, shall submit to the authorizing committees a report 
        that--
                    (A) assesses the water supply program; and
                    (B) makes recommendations concerning how to 
                adequately fund projects and activities recommended 
                under paragraph (2).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary--
            (1) to fund Federal participation in the water supply 
        program;
            (2) to fund the grant program for local participation in 
        the California update under subsection (b)(3); and
            (3) to fund the grant and loan program for local water 
        projects under subsection (b)(4).

SEC. 6. IMPLEMENTATION REQUIREMENTS.

    (a) In General.--In carrying out this Act, the Secretary and the 
agency heads shall coordinate and manage the activities of the Federal 
agencies in a manner that is consistent with the ecosystem enhancement 
program, the Bay-Delta Program, and the water supply program.
    (b) Objective Science.--In carrying out this Act, the Secretary 
shall ensure, to the maximum extent practicable, that--
            (1) all aspects of the Bay-Delta Program and the water 
        supply program use credible and objective scientific review; 
        and
            (2) decisions are based on the best available, 
        independently peer-reviewed information.
    (c) Regulatory Coordination.--In carrying out this Act, the 
Secretary and the agency heads, in coordination with the Governor, 
shall develop a regulatory coordination and streamlining program to 
obtain, in accordance with all applicable regulatory requirements, all 
permits and approvals associated with the permitting or approval of 
projects and activities under this Act.

SEC. 7. BUDGET REPORTS AND SUBMISSIONS.

    (a) Crosscut Budget Reports.--Not later than November 1, 2001, and 
annually thereafter through 2007, the Director shall submit to the 
authorizing committees, the Committee on Appropriations of the House of 
Representatives, and the Committee on Appropriations of the Senate, an 
interagency budget crosscut report that--
            (1) describes the proposed Federal spending, for the fiscal 
        year in which the report is submitted and for each subsequent 
        fiscal year through 2008, for the ecosystem enhancement 
        program, the Bay-Delta Program, and the water supply program; 
        and
            (2) identifies all expenditures that, as of the date of the 
        report, have been made by the Federal Government and the State 
        to achieve the objectives of the ecosystem enhancement program, 
        the Bay-Delta Program, and the water supply program.
    (b) Federal Agency Support Reports.--To assist in preparation of 
the reports under subsection (a), each Federal agency shall submit to 
the Director, by such date as the Director shall specify, an annual 
report that describes--
            (1) expenditures by the Federal agency during the previous 
        fiscal year to implement--
                    (A) the record of decision;
                    (B) the ecosystem enhancement program;
                    (C) the water supply program; and
                    (D) other programs affecting water management, 
                ecosystem restoration, levee stability, or water 
                quality in the State; and
            (2) proposed expenditures by the Federal agency to 
        implement programs described in subparagraphs (A) through (C) 
        of paragraph (1) for--
                    (A) the following fiscal year; and
                    (B) for each subsequent fiscal year through fiscal 
                year 2008.
    (c) Budget Submissions.--Not later than the date of submission of 
the budget under section 1105 of title 31, United States Code, for each 
of fiscal years 2002 through 2008, the Secretary, in cooperation with 
the agency heads, shall submit to the authorizing committees, the 
Committee on Appropriations of the House of Representatives, and the 
Committee on Appropriations of the Senate--
            (1) a budget for the proposed projects to be carried out in 
        the fiscal year with the Federal funds made available under 
        this Act; and
            (2) a report that describes all projects supported by 
        Federal funds made available under this Act for the fiscal year 
        that includes, for each such project, a summary of the 
        recommendations provided by agencies, entities, and members of 
        the public commenting on the project.

SEC. 8. COMPLIANCE WITH FEDERAL AND STATE LAW.

    Nothing in this Act preempts or otherwise affects any Federal or 
State law.
                                 &lt;all&gt;

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