The District has an existing long-term renewal contract with the United States Bureau of Reclamation ("Bureau"), for delivery or Central Valley Project ("CVP") water to, or on behalf of, the District ("Existing Contract"). The Project involves the authorization of the conversion of the District's Existing Contract with a 25-year term, with a right of successive renewal, to a repayment contract with the Bureau for delivery of such water to, or on behalf of, the District not subject to renewal ("Repayment Contract"). The conversion of the Existing Contract to the Repayment Contract was originally provided for in Section 9( d) of the Reclamation Act of 1939, as supplemented in 1956. On or about December 16, 2016, the 114th Congress of the United States of America enacted the Water Infrastructure Improvements for the Nation Act, (Public Law 114-322, 130 Stat. 1628) (the "WIIN Act"), which provided that the Secretary of the Interior shall "convert any water service contract in effect on the date of enactment" of the WIIN Act to a repayment contract upon the request of a contractor. The conversion of the Existing Contract to the Repayment Contract was originally provided for in 1939, and the WIIN Act accelerates that conversion and repayment. Upon the District making the accelerated and discounted repayment of its share of current CVP capital obligations, the Repayment Contract provides, among other things, that the District will no longer be subject to acreage limitations, reporting, and full costs pricing provisions of the Reclamation Reform Act of 1982 (96 Stat. 1263), and that the District reserves and shall have all of the rights available to it under the Act of July 2, 1956 (70 Stat. 483).
See NOE for full details.