Central Valley Project Reform Act of 2005 - Amends the Central Valley Project Improvement Act to include among its purposes to ensure that water dedicated to fish and wildlife is replaced and provided to Central Valley Project (CVP) water contractors by 2012 at the lowest cost reasonably achievable. Directs that contracts entered into or renewed include a provision requiring the Secretary of the Interior to charge only for water actually delivered.
Requires the Secretary to submit to Congress annually a proposed plan for Restoration Fund expenditures that describes why such expenditures produce the optimum benefit. Authorizes the Secretary to enter into contracts with for profit private organizations for additional storage and delivery of water.
Requires the Secretary to submit to Congress a least-cost plan to increase the yield of the CVP by the amount dedicated and managed for fish and wildlife purposes and otherwise required to meet CVP purposes, including contractual obligations.
Amends the Internal Revenue Code to require the Secretary to submit an annual report to the Commissioner of the Bureau of Reclamation on the number of taxpayers who included an amount in gross income by reason of receiving an illegal federal irrigation subsidy. Authorizes the Secretary, acting through the Commissioner, to construct new offstream regulatory storage near the All-American Canal in California and to remove sediment behind Laguna Dam, Arizona.
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