San Luis Unit Drainage Resolution Act

San Luis Unit Drainage Resolution Act

This bill requires the Department of the Interior to implement the Agreement between the United States and Westlands Water District August 2015 (Westlands Agreement) and the Agreement between Interior and the San Luis Water District, the Panoche Water District, and the Pacheco Water District (Northerly Districts Agreement).

The bill amends the San Luis Act (the 1960 statute that authorized Interior to construct the San Luis Unit of the Central Valley Project (CVP), California) to: (1) repeal provisions that include distribution systems and drains as features of such unit, and (2) eliminate requirements for Interior to meet drainage requirements for such unit. Each contractor within the unit that receives water for irrigation shall be responsible for the management of drainage water within its boundaries.

Each San Luis Unit Contractor (i.e., the Westlands Water District, San Luis Water District, Panoche Water District, and Pacheco Water District) shall assume all legal responsibility for the management of drainage water within, and shall not discharge drain water outside of, its boundaries.

Interior shall:

• convert each San Luis Unit Contractor's existing long-term or interim renewal water service contract to a repayment contract;
• make allocation decisions in the CVP consistent with federal law and all decisions of the California State Water Resources Control Board establishing conditions on applicable licenses and permits for the CVP, and
• enter into a contract with the Navy for the delivery of CVP water to the Lemoore Naval Air Station.

The bill suspends each San Luis Unit Contractor's capital repayment obligation and payments under its water service contracts and the April 1, 1965, repayment contract with the United States until the execution of a repayment contract under this bill, after which each contractor shall: (1) receive a specified credit against future operation and maintenance costs payable to the United States, and (2) be relieved of capital repayment obligations under specified water service contracts.

CVP construction costs or other capitalized costs allocated to the Westlands Water District after the date of the Westlands Agreement shall be repaid within five years after notification of the allocation of less than $5 million. If the amount allocated is $5 million or greater, such cost shall be repaid as provided by applicable reclamation law. CVP construction costs or other capitalized costs allocated to any of the Northerly San Luis Unit Districts after the date of the Northerly District Agreement shall be repaid as provided by applicable reclamation law.

Interior is authorized to provide financial assistance as specified in the Northerly District Agreement, which shall be non-reimbursable.

The bill requires Interior to transfer title to specified facilities to the San Luis Unit Contractors upon the execution of the repayment contracts under this bill, consistent with all applicable reclamation policies and procedures. Interior and the San Luis Unit Contractor or other entity acquiring title shall comply with all applicable requirements under federal and California law before facility title is transferred.

For any year in which the allocation for south-of-Delta CVP long-term water irrigation service contractors or irrigation repayment contractors is greater than 75%, Interior shall calculate for the Westlands Water District a per acre foot Restoration Fund payment based on a projection that such District would take delivery of the full allocation.