39–006 

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 

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1One acre-foot equals 327,000 gallons of water. 

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. 

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 occurring recharge. 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 

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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. 

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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. 

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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. 

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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.