123STA T . 13 6 1 PUBLIC LA W 111 – 11 —M A R .3 0, 200 920 20 throug h20 39,and th e a m ount s o f su c h reduct i ons sha l l b e discounted using the T reasur yR ate
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ro v ided, that such charge shall not be reduced to less than $4. 00 per acre foot of pro j ect w ater delivered; provided further, that such reduction shall be implemented annually unless the S ecretary determines, based on the availability of other monies, that the charges mandated in section 1 000 7( 1 ) are otherwise needed to cover ongoing federal costs of the Settlement, including any federal operation and maintenance costs of facilities that the Secretary determines are needed to implement the Settlement. I f the Secretary determines that such charges are necessary to cover such ongoing federal costs, the Secretary shall, instead of ma k ing the reduction in such charges, reduce the contractor ’ s operation and maintenance obligation by an e q uivalent amount, and such amount shall not be recovered by the U nited States from any C entral V alley P roject contractor, provided nothing herein shall affect the obligation of the contractor to make payments pursuant to a transfer agreement with a non - federal operating entity. (2) If the calculated reduction in paragraph (1), taking into consideration the minimum amount required, does not result in the contractor offsetting its financing costs, the Sec- retary is authori z ed and directed to reduce, after O ctober 1, 2019, any outstanding or future obligations of the contractor to the B ureau of Reclamation, other than the charge assessed and collected under section 3407(d) of Public law 102 –5 75, by the amount of such deficiency, with such amount inde x ed to 2020 using the Treasury Rate and such amount shall not be recovered by the United States from any Central Valley Project contractor, provided nothing herein shall affect the obligation of the contractor to make payments pursuant to a transfer agreement with a non- F ederal operating entity. (3) Financing costs, for the purposes of this subsection, shall be computed as the difference of the net present value of the construction cost identified in subsection (a)(3)( A ) using the full Treasury Rate as compared to using one half of the Treasury Rate and applying those rates against a calculated average annual capital repayment through 2030. (4) E ffective in 2040, the charge shall revert to the amount called for in section 10007(1) of this part. (5) For purposes of this section, ‘ ‘Treasury Rate’’ shall be defined as the 20 year Constant M aturity Treasury (CMT) rate published by the United States D epartment of the Treasury as of October 1, 2010. (e) S ATISF A C TI ON OFC ER TAIN PRO V ISIONS. — (1) IN G ENERA L .—Upon the first release of Interim Flows or Restoration Flows, pursuant to paragraphs 13 or 15 of the Settlement, any short- or long-term agreement, to which 1 or more long-term Friant Division, H idden Unit, or Buchanan Unit contractor that converts its contract pursuant to sub- section (a) is a party, providing for the transfer or exchange of water not released as Interim Flows or Restoration Flows shall be deemed to satisfy the provisions of subsection 3405(a)(1)(A) and (I) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public L aw 102–575) without the further concurrence of the Secretary as to compliance with said subsections if the contractor provides, not later than 90 Deadlin e s.Not i c e. Ef fecti v e date. Effective date. Effective date. Deadline. Dete rm ination.
