Title I — H.R. 4039 (Introduced in House)

Sec. 101 Findings

Congress finds that—

(1)

as established in the Proclamation of a State of Emergency issued by the Governor of the State on January 17, 2014, the State is experiencing record dry conditions;

(2)

extremely dry conditions have persisted in the State since 2012, and the current drought conditions are likely to persist into the future;

(3)

the water supplies of the State are at record-low levels, as indicated by a statewide average snowpack of 12 percent of the normal average for winter as of February 1, 2014, and the fact that all major Central Valley Project reservoir levels are below 50 percent of the capacity of the reservoirs as of the date of enactment of this Act;

(4)

the 2013–2014 drought constitutes a serious emergency posing immediate and severe risks to human life and safety and to the environment throughout the State;

(5)

the emergency requires—

(A)

immediate and credible action that respects the complexity of the State of California’s water system and its importance to the entire State; and

(B)

policies that do not pit stakeholders against one another, which history has shown only leads to costly litigation that benefits no one and prevents any real solutions;

(6)

Federal law (including regulations) directly authorizes expedited decisionmaking procedures and environmental and public review procedures to enable timely and appropriate implementation of actions to respond to such a type and severity of emergency; and

(7)

the serious emergency posed by the 2013–2014 drought in the State fully satisfies the conditions necessary for the exercise of emergency decisionmaking, analytical, and public review requirements under—

(A)

the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.);

(B)

the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);

(C)

water control management procedures of the Corps of Engineers described in section 222.5 of title 33, Code of Federal Regulations (including successor regulations); and

(D)

the Reclamation States Emergency Drought Relief Act of 1991 (Public Law 102–250; 106 Stat. 53).

Sec. 102 Definitions

In this title:

(1)

Central valley project— The term Central Valley Project has the meaning given the term in section 3403 of the Central Valley Project Improvement Act (106 Stat. 4707).

(2)

Klamath Project— The term Klamath Project means the Bureau of Reclamation project in the States of California and Oregon—

(A)

as authorized under the Act of June 17, 1902 (32 Stat. 388, chapter 1093); and

(B)

as described in—

(i)

title II of the Oregon Resource Conservation Act of 1996 (Public Law 104–208; 110 Stat. 3009–532); and

(ii)

the Klamath Basin Water Supply Enhancement Act of 2000 (Public Law 106–498; 114 Stat. 2221).

(3)

Reclamation project— The term Reclamation Project means a project constructed pursuant to the authorities of the reclamation laws and whose facilities are wholly or partially located in the State.

(4)

Reserved works— The term reserved works means Bureau of Reclamation-owned project facilities for which the operations and maintenance are performed by employees of the Bureau of Reclamation or by contract, regardless of funding source.

(5)

Secretaries— The term Secretaries means—

(A)

the Administrator of the Environmental Protection Agency;

(B)

the Secretary of Commerce; and

(C)

the Secretary of the Interior.

(6)

State— The term State means the State of California.

(7)

State water project— The term State Water Project means the water project described by California Water Code section 11550 et seq., and operated by the California Department of Water Resources.

Sec. 103 Emergency projects

(a)

In general— In response to the declaration of a state of drought emergency by the Governor of the State, the Secretaries shall provide the maximum quantity of water supplies possible to Central Valley Project and Klamath Project agricultural, municipal and industrial, and refuge service and repayment contractors, State Water Project contractors, and any other locality or municipality in the State, by approving, consistent with applicable laws (including regulations)—

(1)

any project or operations to provide additional water supplies if there is any possible way whatsoever that the Secretaries can do so unless the project or operations constitute a highly inefficient way of providing additional water supplies; and

(2)

any projects or operations as quickly as possible based on available information to address the emergency conditions.

(b)

Mandate— In carrying out subsection (a), the applicable agency heads described in that subsection shall, consistent with applicable laws (including regulations)—

(1)

authorize and implement actions to ensure that the Delta Cross Channel Gates shall remain open to the greatest extent possible, timed to maximize the peak flood tide period and provide water supply and water quality benefits for the duration of the State's drought emergency declaration, consistent with operational criteria and monitoring criteria developed pursuant to the California State Water Resources Control Board’s Order Approving a Temporary Urgency Change in License and Permit Terms in Response to Drought Conditions, effective January 31, 2014, or a successor order;

(2)

(A)

collect data associated with the operation of the Delta Cross Channel Gates described in paragraph (1) and its impact on species listed as threatened or endangered under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), water quality, and water supply; and

(B)

after assessing the data described in subparagraph (A), require the Director of the National Marine Fisheries Service to recommend revisions to operations of the Central Valley Project and the California State Water Project, including, if appropriate, the reasonable and prudent alternatives contained in the biological opinion issued by the National Marine Fisheries Service on June 4, 2009, that are likely to produce fishery, water quality, and water supply benefits;

(3)

(A)

implement turbidity control strategies that allow for increased water deliveries while avoiding jeopardy to adult delta smelt (Hypomesus transpacificus) due to entrainment at Central Valley Project and State Water Project pumping plants; and

(B)

manage reverse flow in Old and Middle Rivers as prescribed by the biological opinion issued by the United States Fish and Wildlife Service and dated December 15, 2008, to minimize water supply reductions for the Central Valley Project and the State Water Project;

(4)

adopt a 1:1 inflow to export ratio for the increased flow of the San Joaquin River, as measured as a 3-day running average at Vernalis during the period from April 1 through May 31, resulting from voluntary transfers and exchanges of water supplies, among other purposes;

(5)

issue all necessary permit decisions under the authority of the Secretaries within 30 days of receiving a completed application by the State to place and use temporary barriers or operable gates in Delta channels to improve water quantity and quality for State Water Project and Central Valley Project South of Delta water contractors and other water users, which barriers or gates should provide benefits for species protection and in-Delta water user water quality and shall be designed such that formal consultations under section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) would not be necessary;

(6)

(A)

require the Director of the United States Fish and Wildlife Service and the Commissioner of the Bureau of Reclamation to complete all requirements under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) necessary to make final permit decisions on water transfer requests associated with voluntarily fallowing nonpermanent crops in the State, within 30 days of receiving such a request; and

(B)

require the Director of the United States Fish and Wildlife Service to allow any water transfer request associated with fallowing to maximize the quantity of water supplies available for nonhabitat uses as long as the fallowing and associated water transfer are in compliance with applicable Federal laws (including regulations);

(7)

allow North of Delta water service contractors with unused 2013 Central Valley Project contract supplies to take delivery of those unused supplies through April 15, 2014, if—

(A)

the contractor requests the extension; and

(B)

the requesting contractor certifies that, without the extension, the contractor would have insufficient supplies to adequately meet water delivery obligations;

(8)

maintain all rescheduled water supplies held in the San Luis Reservoir and Millerton Reservoir for all water users for delivery in the immediately following contract water year unless precluded by reservoir storage capacity limitations;

(9)

to the maximum extent possible based on the availability of water and without causing land subsidence—

(A)

meet the contract water supply needs of Central Valley Project refuges through the improvement or installation of wells to use groundwater resources and the purchase of water from willing sellers, which activities may be accomplished by using funding made available under section 104 or the Water Assistance Program or the WaterSMART program of the Department of the Interior; and

(B)

make a quantity of Central Valley Project surface water obtained from the measures implemented under subparagraph (A) available to Central Valley Project contractors;

(10)

make WaterSMART grant funding administered by the Bureau of Reclamation available for eligible projects within the State on a priority and expedited basis—

(A)

to provide emergency drinking and municipal water supplies to localities in a quantity necessary to meet minimum public health and safety needs;

(B)

to prevent the loss of permanent crops;

(C)

to minimize economic losses resulting from drought conditions; and

(D)

to provide innovative water conservation tools and technology for agriculture and urban water use that can have immediate water supply benefits;

(11)

implement offsite upstream projects in the Delta and upstream Sacramento River and San Joaquin basins, in coordination with the California Department of Water Resources and the California Department of Fish and Wildlife, that offset the effects on species listed as threatened or endangered under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) due to actions taken under this Act;

(12)

for reserved works only, authorize annual operation and maintenance deficits, owed to the Federal Government and incurred due to delivery of contract water supplies to a Central Valley Project or Klamath Project water contractor during each fiscal year the State emergency drought declaration is in force, to accrue without interest for a period of 5 years and then to be repaid, notwithstanding section 106 of Public Law 99–546 (100 Stat. 3052), to the Federal Government over a period of not more than 10 years at the lesser of—

(A)

the project interest rate; and

(B)

the rate specified in section 106 of Public Law 99–546 (100 Stat. 3052); and

(13)

use all available scientific tools to identify and implement any changes to real-time operations of Bureau of Reclamation, State, and local water projects that could result in the availability of additional water supplies.

(c)

Other agencies— To the extent that a Federal agency other than agencies headed by the Secretaries has a role in approving projects described in subsections (a) and (b), the provisions of this section shall apply to those Federal agencies.

(d)

Accelerated project decision and elevation—

(1)

In general— Upon the request of the State, the heads of Federal agencies shall use the expedited procedures under this subsection to make final decisions relating to a Federal project or operation to provide additional water supplies or address emergency drought conditions pursuant to subsections (a) and (b).

(2)

Request for resolution—

(A)

In general— Upon the request of the State, the head of an agency referred to in subsection (a), or the head of another Federal agency responsible for carrying out a review of a project, as applicable, the Secretary of the Interior shall convene a final project decision meeting with the heads of all relevant Federal agencies to decide whether to approve a project to provide emergency water supplies.

(B)

Meeting— The Secretary of the Interior shall convene a meeting requested under subparagraph (A) not later than 7 days after receiving the meeting request.

(3)

Notification— Upon receipt of a request for a meeting under this subsection, the Secretary of the Interior shall notify the heads of all relevant Federal agencies of the request, including the project to be reviewed and the date for the meeting.

(4)

Decision— Not later than 10 days after the date on which a meeting is requested under paragraph (2), the head of the relevant Federal agency shall issue a final decision on the project.

(5)

Meeting convened by Secretary— The Secretary may convene a final project decision meeting under this subsection at any time, at the discretion of the Secretary, regardless of whether a meeting is requested under paragraph (2).

Sec. 104 Emergency funding

(a)

Financial assistance—

(1)

In general— Financial assistance may be made available under the Reclamation States Emergency Drought Relief Act of 1991 (43 U.S.C. 2201 et seq.), subtitle F of title IX of the Omnibus Public Land Management Act of 2009 (42 U.S.C. 10361 et seq.) (commonly known as the “Secure Water Act of 2009”), and any other applicable Federal law (including regulations), to be divided among each applicable program at the discretion of the Secretary for the optimization and conservation of Reclamation Project water supplies to assist drought-plagued areas of the State and the West.

(2)

Additional availability— Financial assistance may be made available under this section to organizations and entities, including tribal governments, that are engaged in collaborative processes to restore the environment while settling water rights claims that are part of an active water rights adjudication or a broader settlement of claims that are part of a basin-wide solution for restoration.

(b)

Types of assistance— Assistance under subsection (a) shall include a range of projects, including—

(1)

the installation of pumps, temporary barriers, or operable gates for water diversion and fish protection;

(2)

the installation of groundwater wells in wildlife refuges and other areas;

(3)

the purchase or assistance in the purchase of water from willing sellers;

(4)

conservation projects providing water supply benefits in the short-term;

(5)

exchanges with any water district willing to provide water to meet the emergency water needs of other water districts in return for the delivery of equivalent quantities of water later that year or in future years;

(6)

maintenance of cover crops to prevent public health impacts from severe dust storms;

(7)

emergency pumping projects for critical health and safety purposes;

(8)

activities to reduce water demand consistent with a comprehensive program for environmental restoration and settlement of water rights claims;

(9)

the use of new or innovative water on-farm water conservation technologies or methods that may assist in sustaining permanent crops in areas with severe water shortages;

(10)

technical assistance to improve existing irrigation practices to provide water supply benefits in the short-term; and

(11)

any other assistance the Secretary determines to be necessary to increase available water supplies or mitigate drought impacts.

(c)

Funding— There is appropriated, out of funds of the Treasury not otherwise appropriated, $100,000,000 to the Secretary of the Interior and the Secretary of Commerce to carry out this section.

Sec. 105 Emergency environmental reviews

To minimize the time spent carrying out environmental reviews and to deliver water quickly that is needed to address emergency drought conditions in the State, the head of each applicable Federal agency shall, in carrying out this Act, consult with the Council on Environmental Quality in accordance with section 1506.11 of title 40, Code of Federal Regulations (including successor regulations) to develop alternative arrangements to comply with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) during the emergency.

Sec. 106 State revolving funds

The Administrator of the Environmental Protection Agency, in allocating amounts for each of the fiscal years during which the State's emergency drought declaration is in force to State water pollution control revolving funds established under title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.) and the State drinking water treatment revolving loan funds established under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12), shall, for those projects that are eligible to receive assistance under section 603 of the Federal Water Pollution Control Act (33 U.S.C. 1383) or section 1452(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300j–12(a)(2)), respectively, that the State determines will provide additional water supplies most expeditiously to areas that are at risk of having an inadequate supply of water for public health and safety purposes or to improve resiliency to drought—

(1)

require the State to review and prioritize funding for such projects;

(2)

issue a determination of waivers within 30 days of the conclusion of the informal public comment period pursuant to section 436(c) of title IV of division G of Public Law 113–76; and

(3)

authorize, at the request of the State, 40-year financing for assistance under section 603(d)(2) of the Federal Water Pollution Control Act (33 U.S.C. 1383(d)(2)) or section 1452(f)(2) of the Safe Drinking Water Act (42 U.S.C. 300j–12(f)(2)).

Sec. 107 Drought planning assistance

(a)

In general— Upon the request of Central Valley Project or Klamath Project contractors or other Reclamation Project contractors in the State, the Secretary of the Interior, acting through the Commissioner of Reclamation, shall provide water supply planning assistance in preparation for and in response to dry, critically dry, and below normal water year types to those Central Valley Project or Klamath Project contractors or other Reclamation Project contractors making those requests, including contractors who possess contracts for refuge water supplies or deliver refuge water supplies.

(b)

Types of assistance— Assistance under subsection (a) shall include—

(1)

hydrological forecasting;

(2)

assessment of water supply sources under different water year classification types;

(3)

identification of alternative water supply sources;

(4)

guidance on potential water transfer partners;

(5)

technical assistance regarding Federal and State permits and contracts under the Act of February 21, 1911 (36 Stat. 925, chapter 141) (commonly known as the “Warren Act”);

(6)

technical assistance regarding emergency provision of water supplies for critical health and safety purposes;

(7)

activities carried out in conjunction with the National Oceanic and Atmospheric Administration, the National Integrated Drought Information System, and the State partners of the National Integrated Drought Information System under the National Integrated Drought Information System Act of 2006 (15 U.S.C. 313d)—

(A)

to collect and integrate key indicators of drought severity and impacts; and

(B)

to produce and communicate timely monitoring and forecast information to local and regional communities, including the San Joaquin Valley, the Delta, and the Central Coast; and

(8)

any other assistance the Secretary determines to be necessary.

Sec. 108 Calfed Bay-Delta Act reauthorization

Title I of the Water Supply, Reliability, and Environmental Improvement Act (118 Stat. 1681; 123 Stat. 2860) (as amended by section 207 of title II of division D of the Consolidated Appropriations Act, 2014) is amended by striking “2015” each place it appears and inserting “2018”.

Sec. 109 Reclamation States Emergency Drought Relief Act reauthorization

Section 301 of the Reclamation States Emergency Drought Relief Act of 1991 (43 U.S.C. 2241) is amended—

(1)

by striking “$90,000,000” and inserting “$190,000,000”; and

(2)

by striking “2012” and inserting “2017”.

Sec. 110 Secure Water Act reauthorization

Section 9504 of Public Law 111–11 (42 U.S.C. 10364) is amended—

(1)

in subsection (a)(3)(E), by adding at the end the following:

“(v) Authority of Commissioner—The Commissioner of Reclamation may, at the discretion of the Commissioner—

“(I) waive any cost-share requirements to address emergency situations; and

“(II) prioritize projects based on the ability of the projects to expeditiously yield water supply benefits during periods of drought.”

(2)

in subsection (e), by striking “$200,000,000” and inserting “$250,000,000”.

Sec. 111 Effect on State laws

Nothing in this Act preempts any State law in effect on the date of enactment of this Act, including area of origin and other water rights protections.

Sec. 112 Klamath Basin water supply

The Klamath Basin Water Supply Enhancement Act of 2000 (Public Law 106–498; 114 Stat. 2221) is amended—

(1)

by redesignating sections 4 through 6 as sections 5 through 7, respectively; and

(2)

by inserting after section 3 the following:

“4. Water management and planning activities

“The Secretary is authorized to engage in activities, including entering into agreements and contracts, or otherwise making financial assistance available, to reduce water consumption or demand, or to restore ecosystems in the Klamath Basin watershed, including tribal fishery resources held in trust, consistent with collaborative agreements for environmental restoration and settlements of water rights claims.”

Sec. 113 Termination of authorities

The authorities under sections 103, 104, 105, and 106 expire on the date on which the Governor of the State suspends the state of drought emergency declaration.

Title I — California emergency drought relief

I California emergency drought relief