A bill to amend the Act of June 3, 1960 authorizing the Secretary of the Interior to construct the San Luis Unit, Central Valley Project, and for other purposes.

Title I: San Luis Unit, Central Valley Project Reauthorization - Reauthorizes the Secretary of the Interior to construct, operate, and maintain the San Luis unit of the Central Valley project in California. Revises current provisions by: (1) enlarging the service area; (2) authorizing a surplus crop production charge; and (3) requiring adherence to Federal reclamation laws.

Limits further construction of the San Luis drain and relieves the districts within the San Luis unit from repaying certain previously appropriated funds for construction of such drain.

Authorizes appropriations to remain available through FY 1990 for the continued construction of such of the San Luis unit's distribution systems and drains (other than the San Luis drain) as are not constructed by local interests. Prohibits the Secretary from obligating such appropriations until certain repayment contracts have been executed under the Reclamation Projects Act of 1939.

Title II: Drainage Management and Water Marketing - Authorizes the Secretary to contribute to the cost of developing an agricultural wastewater management plan at the request of one or more irrigation districts receiving Central Valley project water by contract under the Reclamation Projects Act of 1939.

Directs the Secretary to issue guidelines, within 180 days of enactment of this Act, to assure that agricultural wastewater discharged by an irrigation district receiving Central Valley project water will not pose a threat to public health, safety, or the environment.

Authorizes appropriations for FY 1987 through 1990 for developing agricultural wastewater management plans.

Prohibits the execution of a water contract with an irrigation district until the Secretary certifies that agricultural wastewater discharged by such district does not pose a threat to public health, safety, or the environment.

Directs the Secretary to establish a California Water Exchange to market surplus agricultural water under contract to Central Valley project customers. Provides for the disposition of funds from the Exchange.

Title III: Research on Valleywide Drainage - Directs the Secretary to undertake a research program related solely to the resolution of drainage problems of the Central Valley of California and to assist in the development and implementation of the agricultural wastewater management plans. Authorizes appropriations for FY 1987 through 1989 for such research.

Title IV: Cleanup of Kesterson Reservoir - Directs the Secretary to comply with the order of the California State Water Resources Control Board to close Kesterson Reservoir for the storage and/or disposal of agricultural wastewater originating from the San Luis unit, Central Valley project. Authorizes appropriations for compliance with such order.

Authorizes the Secretary to purchase agricultural land receiving Central Valley project water if retiring such land from irrigation would assist agricultural wastewater management plans. Authorizes appropriations for such purchase.

Authorizes the Secretary to purchase land adjacent to Kesterson Reservoir to establish a ground water research and management area to study contaminated agricultural wastewater. Authorizes appropriations for such purchase.