```

[House Report 108-718]
[From the U.S. Government Publishing Office]

108th Congress                                            Rept. 108-718
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1
======================================================================
 
 TO AUTHORIZE THE SECRETARY OF THE INTERIOR TO CONSTRUCT FACILITIES TO 
PROVIDE WATER FOR IRRIGATION, MUNICIPAL, DOMESTIC, MILITARY, AND OTHER 
USES FROM THE SANTA MARGARITA RIVER, CALIFORNIA, AND FOR OTHER PURPOSES

                                _______
                                

                October 4, 2004.--Ordered to be printed

                                _______
                                

  Mr. Pombo, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 4389]

    The Committee on Resources, to whom was referred the bill 
(H.R. 4389) to authorize the Secretary of the Interior to 
construct facilities to provide water for irrigation, 
municipal, domestic, military, and other uses from the Santa 
Margarita River, California, and for other purposes, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                          PURPOSE OF THE BILL

    The purpose of H.R. 4389 is to authorize the Secretary of 
the Interior to construct facilities to provide water for 
irrigation, municipal, domestic, military, and other uses from 
the Santa Margarita River, California, and other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    During the early 1900's, agriculture and ranching developed 
in the upper Santa Margarita River basin using water diverted 
from the Santa Margarita River and water extracted from wells 
near the river. By 1940, base flow in the river had been 
reduced to such an extent that water users in the lower basin 
filed a lawsuit against water users in the upper basin. The 
result of this lawsuit was the ``1940 Stipulated Judgement,'' 
which partitioned water in the upper basin between uses in the 
upper basin and flow to the lower basin. Since then, three 
other major lawsuits over rights to this water have taken 
place. Moreover, three planned water supply projects have 
failed to resolve the conflicts.
    The most recent of these projects, the Santa Margarita 
Project, was intended to use Federal money to develop a two dam 
and reservoir project on the river for the benefit of Fallbrook 
Public Utility District (FPUD) and the U.S. Marine Corps Base 
at Camp Pendleton. The estimated cost of the project was $22 
million in 1954 dollars, or $254 million in today's dollars. An 
effort to implement the project in the Santa Margarita in the 
early 1980's stalled after two years of effort and significant 
state and federal agency support.
    The lack of adequate water supply poses a serious problem 
for water users in the Santa Margarita River Basin. 
Urbanization, especially since about 1970, has transformed this 
area in San Diego County from large ranches to tract homes. In 
the lower basin, the modest agricultural use of land and water, 
primarily for citrus and avocado trees, has stayed relatively 
constant. The creation of Camp Pendleton Marine Base, which 
covers most of the lower basin, added a relatively small, 
constant demand for water for base operations. Base officials, 
however, are concerned that future water demands in the lower 
basin could be significantly greater to support a major 
military mobilization or to provide adequate habitat for 
endangered species.
    Additionally, time constraints on the outstanding land 
grants that control water usage in the Santa Margarita River 
Basin is an issue to developing the project. Reclamation holds 
three water rights permits totaling 185,000 acre-feet \1\ on 
the Santa Margarita River. These permits were intended for 
surface water impoundment that, at one time, Reclamation was 
proposing to develop. Under California Water Rights Law, these 
permits must be perfected, i.e., demonstrated to be put to 
beneficial uses, by 2007 or the water rights may be lost.
---------------------------------------------------------------------------
    \1\ One acre-foot equals 327,000 gallons of water.
---------------------------------------------------------------------------
    The proposed Santa Margarita Conjunctive Use Project 
provides for enhanced recharge and recovery from the 
underground basin on Camp Pendleton to provide a water supply 
for both Camp Pendleton and FPUD, as resolution of the long-
standing water rights disputes between the United States and 
Fallbrook. The project, as proposed, will develop 6,400 acre-
feet for FPUD and 9,600 acre-feet to Camp Pendleton. In 
addition, an ongoing feasibility study being conducted by the 
Bureau of Reclamation is evaluating alternatives to expand the 
water supply.
    The proposed project includes the construction of enhanced 
recharge facilities that contain a new collapsible diversion 
weir and 46 acres of new recharge ponds. The enhanced recharge 
potential is 14,000 acre-feet per year (AF/yr), in addition to 
the naturally occurringrecharge. The collapsible weir will 
divert flows and permit flood flows to pass to flush the lower river 
and estuary as well as provide beach replenishment. It will also 
include the construction of up to five new wells, monitoring, and a 
collection system to provide a total of 18,000 AF/yr of extraction 
capability. The project water will be distributed to the existing Camp 
Pendleton and FPUD distribution systems through construction of two 
pump stations and approximately nine miles of transmission pipeline. 
This pipeline will also provide Camp Pendleton with a connection to the 
regional water delivery system, not currently available, for emergency 
supply purposes.
    The major activities taking place in preparation for 
project implementation include a pre- feasibility study being 
conducted by Reclamation for the purposes of completing a joint 
feasibility study and Environmental Impact Report/Environmental 
Impact Statement. Funding for this effort comes from several 
Federal sources, including Camp Pendleton, Military 
Construction, and a Reclamation Planning account as well as 
local funding contributed by FPUD.
    The Santa Margarita Conjunctive Use Project will provide a 
safe, drought- and earthquake-proof water supply--enough for 
35,000 families--for Camp Pendleton and Fallbrook. The project 
would improve and partially privatize the water supply to USMC 
Base Camp Pendleton, which will receive better quality water in 
quantities sufficient to meet water needs up to its ultimate 
planned utilization. The project sets aside and preserves 
valuable riparian and upland habitats of one of the last free 
flowing rivers in California, using 1300 acres originally 
purchased for a dam and reservoir.

                            COMMITTEE ACTION

    Congressman Darrell Issa (R-CA) introduced H.R. 4389 on May 
19, 2004. The bill was referred to the Committee on Resources 
and within the Committee to the Subcommittee on Water and 
Power. On September 15, 2004, the Full Resources Committee met 
to consider the bill. The Subcommittee on Water and Power was 
discharged from further consideration by unanimous consent. No 
amendments were offered and the bill was ordered favorably 
reported to the House of Representatives by unanimous consent.

                           SECTION-BY-SECTION

Section 1. Definitions

    This section defines various terms used in the bill.

Section 2. Authorization for construction of Lower Santa Margarita 
        Conjunctive Use Project

    This authorizes the Secretary of the Interior to construct, 
operate, and maintain the Lower Santa Margarita Conjunctive Use 
Project for the District subject to conditions. The Secretary 
may construct the Project only after the (1) the District has 
entered into a repayment contract with the Federal Government, 
(2) the State of California has granted permits for the 
appropriation of water to the Bureau of Reclamation, (3) the 
District agrees it will not assert any prior appropriated water 
right in excess of the water developed by this project and that 
the District agrees to share in the use of the project water 
supply according to the project yield allotment prescribed in 
this Act, and (4) the Secretary has determined the project has 
economic and engineering feasibility. It is the intent of the 
legislation that all environmental and regulatory permits are 
in place prior to initiating project development. The Bureau of 
Reclamation is expected to complete its feasibility 
investigation and environmental impact analysis in year 2005.

Section 3. Costs

    The Department of the Navy is not responsible for any cost 
of the Project until the project is completed. Upon completion 
the Department of the Navy will be responsible to repay 
proportionate costs of the project as agreed to by agreements 
between the Department of the Interior and the Department of 
the Navy.

Section 4. Operation; yield allotment; delivery

    The Interior Secretary, or others as agreed to by the 
Secretaries of the Navy and Interior, may operate project 
facilities in accordance to regulations satisfactory to the 
Department of the Navy and with respect to the Navy's share of 
the project water supply. 60 per cent of the project water 
supply is alloted to the Navy and 40 per cent is allotted to 
the District, unless an agreement between the project 
beneficiaries states differently. The proportionate water share 
agreements between the Federal Government and the District may 
be modified by an agreement between the parties. Should the 
Navy not be able to take delivery of its full allotment (60 per 
cent share), the responsible project operator can enter into 
temporary water delivery contracts to other users. The District 
is given first right to use the Navy's unused portion, if 
consistent with California law. All monies collected pursuant 
to the temporary water contracts shall not be applied to the 
District's project repayment obligations.

Section 5. Repayment obligation of the District

    This section specifies the general repayment obligation of 
the District, as mutually agreed to all parties, including 
allowances for water made available during the interim 
development period and with consideration of the irrigator's 
ability to pay. The bill includes provisions on how water will 
be delivered and repayment will be made from the time water is 
first made available up to full project operation. The 
repayment obligation of the District may be modified, if 
necessary, by an agreement between the parties at any time 
during the life of the project.

Section 6. Transfer of care, operation, and maintenance

    The Interior Secretary may transfer the care, operation, 
and maintenance of the project to the District or to an agreed 
upon third party under conditions satisfactory to all parties. 
Costs associated with the Secretary's portion of the project's 
operation and maintenance to be transferred are to be credited 
and applied to the District's indebtedness to the United 
States.

Section 7. Scope of the Act

    The right to divert and use water by the United States will 
be as permitted and protected by laws of the State of 
California. The intent of the legislation is to recognize the 
soon-to-be completed Santa Margarita River water right 
adjudication by the State of California and the ``1940 
Stipulated Judgement'' which apportions water between the Upper 
and Lower Santa Margarita River users. Nothing in this 
legislation is intended to affect the water quality, water 
rights or the water rights claims of any Indian tribe, band or 
community located within the Santa Margarita River watershed, 
or of the United States acting on their behalf.

Section 8. Limitations on operation and administration

    The operation of the project will not interfere, impair, or 
deplete decreed rights of the Department of the Navy to the 
availability and quantity of waters permitted under California 
law prior to the project being built and used on lands 
comprising Camp Pendleton and adjoining naval installations.

Section 9. Authorizations of appropriations

    The bill authorizes an appropriation of $60 million for the 
planning, design, and construction of project facilities and 
additional sums as necessary for project operation and 
maintenance purposes.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. The bill authorizes an 
appropriation of $60 million for the construction of the 
project plus additional funds for ongoing maintenance of the 
project. The United States will also receive revenues from the 
project beneficiaries from repayment contracts, but it is 
unclear how large these payments will be or when they will 
start.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, the 
committee believes this bill does not contain any new budget 
authority, spending authority, credit authority, or an increase 
or decrease in revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to authorize the Secretary of the 
Interior to plan, design, and construct facilities to provide 
water for irrigation, municipal, domestic, military, and other 
uses from the Santa Margarita River, California.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has requested but not received a cost 
estimate for this bill from the Director of the Congressional 
Budget Office.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                        COMMITTEE CORRESPONDENCE

                          House of Representatives,
                                    Committee on Resources,
                                   Washington, DC, October 1, 2004.
Hon. Duncan Hunter,
Chairman, Committee on Armed Services,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: On September 15, 2004, the Committee on 
Resources reported H.R. 4389, a bill to authorize the Secretary 
of the Interior to construct facilities to provide water for 
irrigation, municipal, domestic, military, and other uses from 
the Santa Margarita River, California. The bill was referred 
primarily to the Committee on Resources, with an additional 
referral to the Armed Services Committee.
    Knowing that we have only a short time remaining in this 
session, I ask that you allow the Armed Services Committee to 
be discharged from further consideration of the bill so that it 
may be scheduled under suspension of the rules as soon as 
possible. This discharge in no way affects your jurisdiction 
over the subject matter of the bill and it will not serve as 
precedent for future referrals. In addition, should a 
conference on the bill be necessary, I would support your 
request to have the Armed Services Committee represented on the 
conference committee. I would be pleased to include this letter 
and any response in the bill report filed by the Committee 
Resources.
    Thank you for your consideration of my request and I look 
forward to bringing H.R. 4389 to the Floor soon.
            Sincerely,
                                          Richard W. Pombo,
                                                          Chairman.

```