125 



33 



1 tion, conjunctive use, purchase, lease, donations, or similar 



2 activities, or a combination of such activities which do not 



3 require involuntary reallocations of project yield. 



4 "(4) All costs associated with implementation of 



5 para^aph (2) of this subsection shall be deemed a 



6 nonreimbursable Federal expenditure. Incremental costs 



7 associated with implementation of paragraph (3) of this 



8 subsection shall be fully allocated in accordance with the 



9 following formula: 75 percent shall be deemed a 



10 nonreimbursable Federal expenditure; and 25 percent 



11 shall be allocated to the State of CaUfornia for recovery 



12 through direct reimbursements or through equivalent in- 



13 kind contributions. 



14 "(5) The Secretary shall temporarily reduce deliveries 



15 of the quantity of water dedicated under paragraph (2) 



16 of this subsection up to 25 percent of such total whenever 



17 reductions are imposed upon agricultural water service 



1 8 contractors served from the same Division of the Central 



19 Valley Project: Provided, That such reductions shall not 



20 exceed in percentage terms the reductions imposed on ag- 



21 ricultural water service contractors. For the purpose of 



22 shortage allocation, the priority or priorities applicable to 



23 the increment of water provided under paragraph (3) of 



24 this subsection shall be the priority or priorities which ap- 



•HR 1906 IH 



