59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–747 

AMENDING THE SAN LUIS REY INDIAN WATER RIGHTS 

SETTLEMENT ACT TO CLARIFY CERTAIN SETTLEMENT 

TERMS, AND FOR OTHER PURPOSES 

SEPTEMBER 15, 2016.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. BISHOP of Utah, from the Committee on Natural Resources, 

submitted the following 

R E P O R T 

[To accompany H.R. 1296] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 1296) to amend the San Luis Rey Indian Water Rights 

Settlement Act to clarify certain settlement terms, 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. 1296 is to amend the San Luis Rey Indian 

Water Rights settlement Act to clarify certain settlement terms. 

BACKGROUND AND NEED FOR LEGISLATION

H.R. 1296 helps bring closure to the decades-old San Luis Rey 

Water Settlement and related litigation and uncertainty in southern California. 

Beginning in 1969, the La Jolla, Rincon, San Pasqual, Pauma, 

and Pala Bands of Mission Indians (the Bands) sued the City of Escondido, California and the Vista Irrigation district (Local Entities) 

on the grounds that the federal government improperly signed over 

the Bands’ water rights to the Local Entities. Decades of litigation 

surrounding the Bands’ water rights claims ensued until 1988, 

when Congress enacted the San Luis Rey Indian Water Rights Settlement Act (the 1988 Settlement Act, Public Law 100–675). It is 

one of 29 Indian water rights settlements that have been approved 

by Congress. 


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The 1988 Settlement Act, among other things, directed the Secretary of the Interior to provide 16,000 acre-feet of water annually 

to the Bands. An acre foot of water is equivalent to approximately 

326,000 gallons or enough to cover a football field with a foot of 

water. The 1988 Settlement Act becomes effective only when the 

United States, the Bands and the Local Entities enter into ‘‘a settlement agreement providing for the complete resolution of all 

claims, controversies, and issues involved in all the pending proceedings among the parties’’. Public Law 100–675 also established 

the San Luis Rey Tribal Development Fund that authorized up to 

$30 million in federal appropriations. 

One of the main hurdles to resolution of a settlement agreement 

was whether the 16,000 acre-feet of water would be deemed supplemental water or would be classified as water reserved under the 

Winters Doctrine, which holds that the federal government implicitly reserved water rights sufficient to fulfill the purposes of an Indian reservation (based on the 1908 Supreme Court decision in 

Winters v. United States). In January 2015, the parties signed a 

settlement agreement that stipulated that the 16,000 acre-feet of 

water would be deemed supplemental. This designation kept the 

Bands’ Winters Doctrine rights intact, allowing them the ability to 

pursue those rights at a later time if necessary. However, the settlement agreement also relieved the federal government as a future 

supporting party to the Bands’ Winters Doctrine rights, effectively 

resolving some future federal liability. H.R. 1296 approves and 

ratifies this settlement agreement, which provides that Congressional approval is required for the agreement, and thus the settlement, to take effect. The Departments of the Interior and Justice 

submitted a letter and testimony to the House Natural Resources 

Committee conveying support for the January 2015 settlement 

agreement and this legislation. 

Following Committee consideration of H.R. 1296, it was discovered that the trust fund established for the San Luis Rey Indian 

Water Rights Settlement under Public Law 100–675 was still considered part of the federal budget. Therefore, to avoid scoring 

issues associated with the distributions from that trust fund already funded by the Congress, the Committee will need to further 

modify the reported text before it can be considered by the House 

of Representatives. 

SECTION-BY-SECTION ANALYSIS OF THE BILL

Section 1. Section 1 amends Public Law 100–675 by approving 

and ratifying all provisions of the January 30, 2015, Settlement 

Agreement entered into by the parties and the United States. The 

Secretary of the Interior and the Attorney General are authorized 

to execute and implement the agreement and any amendments approved by the parties that are necessary to make it consistent with 

this Act (and such execution shall not constitute a major Federal 

action under the National Environmental Policy Act). The Bands 

will continue to possess federally reserved rights and other rights 

held in trust by the United States. However, the United States 

shall not be a required party and any decision by the United States 

regarding participation in any such proceeding shall not be subject 

to judicial review or give rise to any claim for relief against the 

United States in these water rights claims. 


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COMMITTEE ACTION

H.R. 1296 was introduced on March 4, 2015, by Congressman 

Duncan Hunter (R–CA). The bill was referred to the Committee on 

Natural Resources, and within the Committee to the Subcommittee 

on Water, Power and Oceans. On October 28, 2015, the Subcommittee held a hearing on the bill. On February 2, 2016, the 

Natural Resources Committee met to consider the bill. The Subcommittee was discharged by unanimous consent. No amendments 

were offered, and the bill was ordered favorably reported to the 

House of Representatives by unanimous consent on February 3, 

2016. 

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 

Natural Resources’ oversight findings and recommendations are reflected in the body of this report. 

COMPLIANCE WITH HOUSE RULE XIII 

1. Cost of Legislation and the Congressional Budget Act. With respect to the requirements of clause 3(c)(2) and (3) of rule XIII of 

the Rules of the House of Representatives and sections 308(a) and 

402 of the Congressional Budget Act of 1974, the Committee has 

received the enclosed cost estimate for the bill from the Director of 

the Congressional Budget Office: 

H.R. 1296—A bill to amend the San Luis Rey Indian Water Rights 

Settlement Act to clarify certain settlement terms, and for other 

purposes 

Summary: H.R. 1296 would amend current law and ratify a settlement agreement negotiated in 2014 between the United States 

and other parties in southern California including the La Jolla, 

Rincon, San Pasqual, Pauma, and Pala Bands of Mission Indians 

(collectively known as the Bands), the City of Escondido, the San 

Luis Rey Indian Water Authority (the Authority), and the Vista Irrigation District. The 2014 settlement clarifies certain issues regarding the Bands’ water rights and the federal govermnent’s legal 

responsibilities and if ratified would transfer control and ownership 

of the funds in the San Luis Rey Indian Trust Fund from the federal government to the Authority. 

Based on information from the Department of the Interior (DOI), 

CBO estimates that enacting the legislation would increase net direct spending by $18 million over the 2017–2026 period; therefore, 

pay-as-you-go procedures apply. Enacting H.R. 1296 would not affect revenues. 

CBO estimates that enacting the bill would not increase net direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2027. 

H.R. 1296 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would benefit the La Jolla, Rincon, San Pasqual, Pauma, and 

Pala Bands of Mission Indians. Any costs to local and tribal governments would be incurred voluntarily as a result of entering into 

the settlement agreement ratified in the bill. 


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Estimated cost to the Federal Government: The estimated budgetary effect of H.R. 1296 is shown in the following table. The costs 

of this legislation fall within budget function 450 (community and 

regional development). 

By fiscal year, in millions of dollars— 

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017– 

2021 

2017– 

2026 

INCREASE OR DECREASE (¥) IN DIRECT SPENDING 

Transfer Ownership of San Luis Rey Trust 

Fund balances 

Estimated Budget Authority ............... 55 0 0 0 0 0 0 0 0 0 55 55 

Estimated Outlays .............................. 55 0 0 0 0 0 0 0 0 0 55 55 

Changes in Interest Disbursements from 

the trust fund 

Estimated Budget Authority ............... ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥19 ¥37 

Estimated Outlays .............................. ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥19 ¥37 

Total Changes 

Estimated Budget Authority ...... 51 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 37 18 

Estimated Outlays ..................... 51 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 37 18 

Note: Components may not sum to totals because of rounding. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

1296 will be enacted at the end of fiscal year 2016. Based on information from the Department of the Interior (DOI), CBO estimates 

that implementing the legislation would increase net direct spending by $18 million over the 2017–2026 period. 

In 1990, $30 million was appropriated to capitalize the San Luis 

Rey Indian Trust Fund, which was established by Public Law 100– 

675, the San Luis Rey Indian Water Rights Settlement Act (1988 

Settlement Act). The San Luis Rey Indian Water Authority was 

also established by the Bands as an intertribal entity pursuant to 

that Settlement. The Authority negotiates on behalf of the Bands 

regarding water supply and use in the San Luis Rey River Basin. 

Under current law, the federal government retains ownership of 

and fiduciary responsibility for the San Luis Rey Indian Trust 

Fund until all parties reach agreement under the 1988 Settlement 

Act at which time the fund will be transferred to the Authority. 

Until ownership of the Fund is transferred, the U.S. Treasury is 

authorized to disburse a portion of interest credited to the fund to 

the Authority for annual expenses related to facilitating and negotiating a final agreement. In the last few years, those disbursements have averaged $3.7 million annually and CBO expects that 

under current law those disbursements will continue. 

The parties have been unable to reach agreement under the 1988 

Settlement Act because of differing interpretations of the Bands’ future claims to federally reserved water in the San Luis Rey River 

Basin. Enacting H.R. 1296 would amend the 1988 Settlement Act 

to clarify that the Bands’ right to federally reserved water in the 

basin would remain intact; the legislation also would waive certain 

legal claims against the federal government and ratify a settlement 

agreement entered into by all these parties in 2014. 

Based on information from the DOI, CBO expects that upon enactment of H.R. 1296, which we assume would occur in fiscal year 

2017, ownership of the balance in the trust fund would be transferred to the Authority that year. CBO estimates that the amount 


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transferred would total $55 million and would include $30 million 

of principle and $25 million in accrued interest. Following enactment of the bill, the Treasury would discontinue annual disbursements of interest to the Authority, thus reducing federal spending 

by $37 million over the 2017–2026 period. In total, CBO estimates 

that enacting H.R. 1296 would increase net direct spending by $18 

million over the 2017–2026 period. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016– 

2021 

2016– 

2026 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-You-Go Impact .... 0 51 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 37 18 

Increase in long term direct spending and deficits: CBO estimates that enacting the legislation would not increase net direct 

spending or on-budget deficits in any of the four consecutive 10- 

year periods beginning in 2027. 

Intergovernmental and private-sector impact: H.R. 1296 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would benefit the La Jolla, Rincon, San Pasqual, 

Pauma, and Pala Bands of Mission Indians. Any costs to local and 

tribal governments would be incurred voluntarily as a result of entering into the settlement agreement as ratified in the bill. 

Estimate prepared by: Federal Costs: Aurora Swanson; Impact 

on State, Local, and Tribal Governments: Rachel Austin; Impact on 

the Private Sector: Amy Petz. 

Estimate approved by: Samuel H. Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

2. 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 amend the San Luis Rey Indian Water Rights settlement Act to clarify certain settlement terms. 

EARMARK STATEMENT

This bill does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined under clause 9(e), 

9(f), and 9(g) of rule XXI of the Rules of the House of Representatives. 

COMPLIANCE WITH PUBLIC LAW 104–4 

This bill contains no unfunded mandates. 

COMPLIANCE WITH H. RES. 5 

Directed Rule Making. The Chairman does not believe that this 

bill directs any executive branch official to conduct any specific 

rule-making proceedings. 


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Duplication of Existing Programs. This bill does not establish or 

reauthorize a program of the federal government known to be duplicative of another program. Such program was not included in 

any report from the Government Accountability Office to Congress 

pursuant to section 21 of Public Law 111–139 or identified in the 

most recent Catalog of Federal Domestic Assistance published pursuant to the Federal Program Information Act (Public Law 95–220, 

as amended by Public Law 98–169) as relating to other programs. 

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

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

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italics 

and existing law in which no change is proposed is shown in 

roman): 

SAN LUIS REY INDIAN WATER RIGHTS SETTLEMENT 

ACT 

TITLE I—SAN LUIS REY INDIAN WATER 

RIGHTS SETTLEMENT ACT 

SEC. 101. SHORT TITLE. 

This title may be cited as the ‘‘San Luis Rey Indian Water Rights 

Settlement Act’’. 

* * * * * * * 

SEC. 112. IMPLEMENTATION OF SETTLEMENT. 

(a) FINDINGS.—Congress finds and recognizes as follows: 

(1) The City of Escondido, California, the Vista Irrigation 

District, the San Luis Rey River Indian Water Authority, and 

the Bands have approved an agreement, dated December 5, 

2014, resolving their disputes over the use of certain land and 

water rights in or near the San Luis Rey River watershed, the 

terms of which are consistent with this Act. 

(2) The Bands, the San Luis Rey River Indian Water Authority, the City of Escondido, California, the Vista Irrigation District, and the United States have approved a Settlement Agreement dated January 30, 2015 (hereafter in this section referred 

to as the ‘‘Settlement Agreement’’) that conforms to the requirements of this Act. 

(b) APPROVAL AND RATIFICATION.—All provisions of the Settlement Agreement, including the waivers and releases of the liability 

of the United States, the provisions regarding allottees, and the provision entitled ‘‘Effect of Settlement Agreement and Act,’’ are hereby 

approved and ratified. 

(c) AUTHORIZATIONS.—The Secretary and the Attorney General 

are authorized to execute, on behalf of the United States, the Settlement Agreement and any amendments approved by the parties as 

necessary to make the Settlement Agreement consistent with this 


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Act. Such execution shall not constitute a major Federal action 

under the National Environmental Policy Act of 1969 (42 U.S.C. 

4321 et seq.). The Secretary is further authorized and directed to 

take all steps that the Secretary may deem necessary or appropriate 

to implement the Settlement Agreement and this Act. 

(d) CONTINUED FEDERALLY RESERVED AND OTHER WATER

RIGHTS.— 

(1) IN GENERAL.—Notwithstanding any other provision of 

law, including any provisions in this Act, the Bands had, have, 

and continue to possess federally reserved rights and other 

water rights held in trust by the United States. 

(2) FUTURE PROCEEDINGS.—In any proceeding involving the 

assertion, enforcement, or defense of the rights described in this 

subsection, the United States, in its capacity as trustee for any 

Band, shall not be a required party and any decision by the 

United States regarding participation in any such proceeding 

shall not be subject to judicial review or give rise to any claim 

for relief against the United States. 

(e) ALLOTTEES.—Congress finds and confirms that the benefits to 

allottees in the Settlement Agreement, including the remedies and 

provisions requiring that any rights of allottees shall be satisfied 

from supplemental water and other water available to the Bands or 

the Indian Water Authority, are equitable and fully satisfy the 

water rights of the allottees. 

(f) NO PRECEDENT.—Nothing in this Act shall be construed or interpreted as a precedent for the litigation or settlement of Indian reserved water rights. 

Æ 


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