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[House Report 110-649]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-649

======================================================================

 
             SOBOBA BAND OF LUISENO INDIANS SETTLEMENT ACT

                                _______
                                

  May 15, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4841]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 4841) to approve, ratify, and confirm the settlement 
agreement entered into to resolve claims by the Soboba Band of 
Luiseno Indians relating to alleged interferences with the 
water resources of the Tribe, to authorize and direct the 
Secretary of the Interior to execute and perform the Settlement 
Agreement and related waivers, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Soboba Band of Luiseno Indians 
Settlement Act''.

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress finds the following:
          (1) The Soboba Band of Luiseno Indians is a federally 
        recognized Indian tribe whose Reservation of approximately 
        6,000 acres, extending east and north from the banks of the San 
        Jacinto River in Riverside County, California, was created by 
        an Executive Order dated June 19, 1883, and enlarged and 
        modified by subsequent Executive Orders, purchases, and an Act 
        of Congress.
          (2) The Tribe's water rights have not been quantified, and 
        the Tribe has asserted claims for interferences with the water 
        resources of its Reservation, which the Tribe maintains have 
        rendered much of the Tribe's Reservation useless for 
        habitation, livestock, or Agriculture. On April 20, 2000, the 
        Tribe filed a lawsuit against The Metropolitan Water District 
        of Southern California for interference with the Tribe's water 
        resources and damages to its Reservation allegedly caused by 
        Metropolitan's construction and operation of the San Jacinto 
        Tunnel, which is part of the Colorado River Aqueduct. The 
        lawsuit, styled Soboba Band of Luiseno Indians v. Metropolitan 
        Water District of Southern California, No. 00-04208 GAF (MANx), 
        is pending in the United States District Court for the Central 
        District of California.
          (3) The Tribe also has made claims against Eastern Municipal 
        Water District and Lake Hemet Municipal Water District, located 
        adjacent to the Reservation, seeking to secure its water rights 
        and damages arising from alleged past interference with the 
        Tribe's water resources.
          (4) After negotiations, which included participation by 
        representatives of the Tribe, the United States on behalf of 
        the Tribe, The Metropolitan Water District of Southern 
        California, Eastern Municipal Water District, and Lake Hemet 
        Municipal Water District, a Settlement Agreement has been 
        developed to determine the Tribe's water rights, resolve all of 
        its claims for interference with the water resources of, and 
        damages to, its Reservation, provide for the construction of 
        water projects to facilitate the exercise of the Tribe's 
        rights, and resolve the lawsuit referenced in paragraph (2) of 
        this section.
          (5) The Settlement Agreement provides that--
                  (A) Eastern Municipal Water District and Lake Hemet 
                Municipal Water District acknowledge and assure the 
                Tribe's prior and paramount right, superior to all 
                others, to pump 9,000 acre-feet of water annually from 
                the San Jacinto River basin in accordance with the 
                limitations and other conditions set forth in the 
                Settlement Agreement;
                  (B) Eastern Municipal Water District and The 
                Metropolitan Water District of Southern California will 
                contract to supply water to Eastern Municipal Water 
                District and Eastern Municipal Water District will use 
                this water to recharge water supplies into the basin; 
                and
                  (C) the three water districts will make substantial 
                additional contributions to the settlement, including 
                the conveyance of certain replacement lands and 
                economic development funds to the Tribe, to carry out 
                the Settlement Agreement's provisions.
  (b) Purposes.--The purposes of this Act are--
          (1) to approve, ratify, and confirm the Settlement Agreement 
        entered into by the Tribe and non-Indians entities;
          (2) to achieve a fair, equitable, and final settlement of all 
        claims of the Soboba Band of Luiseno Indians, its members, and 
        the United States on behalf of the Tribe and its members, to 
        the water of the San Jacinto River basin;
          (3) to authorize and direct the Secretary of the Interior to 
        execute and perform all obligations of the Secretary under the 
        Settlement Agreement; and
          (4) to authorize the actions and appropriations necessary to 
        meet obligations of the United States under the Settlement 
        Agreement and this Act.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Restoration fund.--The term ``Restoration Fund'' means 
        the San Jacinto Basin Restoration Fund established by section 
        6.
          (2) Development fund.--The term ``Development Fund'' means 
        the Soboba Band of Luiseno Indians Water Development Fund 
        established by section 7.
          (3) Reservation.--
                  (A) In general.--The term ``Reservation'' means the 
                Soboba Indian Reservation created by Executive Order 
                dated June 19, 1883, and enlarged and modified as of 
                the date of enactment of this Act by Executive Orders 
                and an Act of Congress.
                  (B) Exclusions.--For the purposes of this Act, the 
                term ``Reservation'' does not include--
                          (i) the 950 acres northwest of and contiguous 
                        to the Reservation known as the ``Jones 
                        Ranch'', purchased by the Soboba Tribe in fee 
                        on July 21, 2001, and placed into trust on 
                        January 13, 2003;
                          (ii) the 535 acres southeast of and 
                        contiguous to the Reservation known as the 
                        ``Horseshoe Grande'', purchased by the Soboba 
                        Tribe in fee in seven separate transactions in 
                        June and December 2001, December 2004, June 
                        2006, and January 2007; and
                          (iii) the 478 acres north of and contiguous 
                        to the Reservation known as ``The Oaks'', 
                        purchased by the Soboba Tribe in fee on April 
                        4, 2004.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior or a designee of the Secretary.
          (5) Settlement agreement.--The term ``Settlement Agreement'' 
        means that agreement dated June 7, 2006, as amended to be 
        consistent with this Act, together with all exhibits thereto. 
        The parties to the Settlement Agreement are the Soboba Band of 
        Luiseno Indians and its members, the United States on behalf of 
        the Tribe and its members, The Metropolitan Water District of 
        Southern California, Eastern Municipal Water District, and Lake 
        Hemet Municipal Water District.
          (6) Tribe, soboba tribe, or soboba band of luiseno indians.--
        The terms ``Tribe'', ``Soboba Tribe'', or ``Soboba Band of 
        Luiseno Indians'' means the body politic and federally 
        recognized Indian tribe, and its members.
          (7) Water management plan.--The term ``Water Management 
        Plan'' means the plan, approved by the Soboba Tribe and the 
        Secretary, developed pursuant to section 4.8, paragraph A of 
        the Settlement Agreement to resolve the overdraft of the San 
        Jacinto basin.

SEC. 4. RATIFICATION OF SETTLEMENT AGREEMENT; AUTHORIZATION.

  (a) In General.--The United States hereby approves, ratifies, and 
confirms the Settlement Agreement, except to the extent it conflicts 
with the provisions of this Act.
  (b) Authorization.--The Secretary is authorized and directed to 
execute, and take such other actions as are necessary to implement, the 
Settlement Agreement and any amendments approved by the parties 
necessary to make the Settlement Agreement consistent with this Act.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

  (a) Restoration Fund.--There is authorized to be appropriated to the 
San Jacinto Basin Restoration Fund established in section 6 of this Act 
the amount of $5,000,000 for each of fiscal years 2010 and 2011 to pay 
or reimburse the costs associated with constructing, operating, and 
maintaining the portion of the basin recharge project that the United 
States is responsible for under the Settlement Agreement. These costs 
are described in section 4.5 of the Settlement Agreement and are 
necessary to accommodate deliveries of the supplemental imported water 
under section 4.4 of the Settlement Agreement.
  (b) Development Fund.--There is authorized to be appropriated to the 
Soboba Band of Luiseno Indians Water Development Fund established in 
section 7 of this Act the amount of $5,500,000 for each of fiscal years 
2010 and 2011 to pay or reimburse costs associated with constructing, 
operating, and maintaining water and sewage infrastructure, and other 
water-related development projects.
  (c) Limitation.--No funding of any construction, operation, 
maintenance, or replacement other than those funds authorized under 
subsections (a) and (b) shall be the responsibility of the Federal 
Government under the Settlement Agreement or this Act.

SEC. 6. RESTORATION FUND.

  (a) Establishment.--There shall be established within the Treasury of 
the United States a non-interest bearing account to be known as the 
``San Jacinto Basin Restoration Fund'', consisting of the amounts 
authorized to be appropriated in section 5(a) of this Act.
  (b) Administration.--The Restoration Fund shall be administered by 
the Secretary for the purposes set forth in subsection (d) of this 
section.
  (c) Availability.--The funds authorized to be appropriated pursuant 
to section 5(a) of this Act shall be available for expenditure or 
withdrawal only after the effective date set forth in section 10(a).
  (d) Expenditures and Withdrawals.--
          (1) Expenditure plan.--
                  (A) In general.--Eastern Municipal Water District, on 
                behalf of the Water Management Plan, shall submit to 
                the Secretary for approval an expenditure plan for use 
                of the Restoration Fund.
                  (B) Requirements.--The expenditure plan shall require 
                that any funds be expended or reimbursed in accordance 
                with the purposes described in section 5(a) of this 
                Act.
          (2) Withdrawals.--On approval by the Secretary of the 
        expenditure plan described in this section, Eastern Municipal 
        Water District, on behalf of the Water Management Plan, may 
        expend or be reimbursed monies from the Restoration Fund as 
        provided in the plan.
          (3) Enforcement.--The Secretary may take judicial or 
        administrative action to enforce the provisions of any 
        expenditure plan to ensure that monies expended or reimbursed 
        from the Restoration Fund under the plan are used in accordance 
        with this Act.
          (4) Liability.--If Eastern Municipal Water District, on 
        behalf of the Water Management Plan, exercises the right to 
        expend or be reimbursed monies from the Restoration Fund, 
        neither the Secretary nor the Secretary of the Treasury shall 
        have any liability for the expenditure or reimbursement.
          (5) Annual report.--Eastern Municipal Water District shall 
        submit to the Tribe and the Secretary an annual report that 
        describes all expenditures or reimbursements from the 
        Restoration Fund during the year covered by the report.

SEC. 7. DEVELOPMENT FUND.

  (a) Establishment.--There shall be established within the Treasury of 
the United States a fund to be known as the ``Soboba Band of Luiseno 
Indians Water Development Fund'', to be managed and invested by the 
Secretary consisting of the amounts authorized to be appropriated in 
section 5(b).
  (b) Management.--The Secretary shall manage the Development Fund, 
make investments, and make monies available for distribution consistent 
with the American Indian Trust Fund Management Reform Act of 1994 (25 
U.S.C. 4001 et seq.) (referred to in this section as the ``Trust Fund 
Reform Act''), this Act, and the Settlement Agreement.
  (c) Investment.--The Secretary shall invest amounts in the 
Development Fund in accordance with--
          (1) the Act of April 1, 1880 (21 Stat. 70, ch. 41, 25 U.S.C. 
        161);
          (2) the first section of the Act of June 24, 1938 (52 Stat. 
        1037, ch. 648, 25 U.S.C. 162a); and
          (3) subsection (b) of this section.
  (d) Availability.--The funds authorized to be appropriated pursuant 
to section 5(b) of this Act shall be available for expenditure or 
withdrawal only after the effective date set forth in section 10(a).
  (e) Expenditures and Withdrawals.--
          (1) Tribal management plan.--
                  (A) In general.--The Tribe may withdraw all or part 
                of the Development Fund on approval by the Secretary of 
                a tribal management plan as described in the Trust Fund 
                Reform Act.
                  (B) Requirements.--In addition to the requirements 
                under the Trust Fund Reform Act, the tribal management 
                plan shall require that any funds be expended or 
                reimbursed in accordance with the purposes described in 
                section 5(b) of this Act.
                  (C) Enforcement.--The Secretary may take judicial or 
                administrative action to enforce the provisions of any 
                tribal management plan to ensure that monies withdrawn 
                from the Development Fund under the plan are used in 
                accordance with this Act.
                  (D) Liability.--If the Tribe exercises the right to 
                withdraw monies from the Development Fund, neither the 
                Secretary nor the Secretary of the Treasury shall 
                retain any liability for the expenditure or investment.
          (2) Expenditure plan.--
                  (A) In general.--The Tribe shall submit to the 
                Secretary for approval an expenditure plan for any 
                portion of the amounts made available under section 
                5(b) that the Tribe does not withdraw under this 
                subsection.
                  (B) Description.--The expenditure plan shall describe 
                the manner in which, and the purposes for which, 
                amounts of the Tribe remaining in the Funds will be 
                used.
                  (C) Approval.--On receipt of an expenditure plan 
                under subparagraph (A), the Secretary shall approve the 
                plan if the Secretary determines that the plan is 
                reasonable and consistent with this Act and the 
                Agreement.
          (3) Annual report.--The Tribe shall submit to the Secretary 
        an annual report that describes all expenditures from the 
        Development Fund during the year covered by the report.
          (4) No per capita distributions.--No part of the Development 
        Fund shall be distributed on a per capita basis to members of 
        the Tribe.

SEC. 8. WAIVERS AND RELEASES.

  (a) Tribe and United States Authorization.--The Tribe, on behalf of 
itself and its members, and the Secretary, on behalf of the United 
States in its capacity as trustee for the Tribe and its members, are 
authorized, as part of the performance of their obligations under the 
Settlement Agreement, to execute a waiver and release for claims under 
Federal, State, or other law against The Metropolitan Water District of 
Southern California, Eastern Municipal Water District, and Lake Hemet 
Municipal Water District, for any and all--
          (1) past, present, and future claims to surface water and 
        groundwater rights for the Reservation arising from time 
        immemorial through the effective date described in section 10 
        of this Act and anytime thereafter, except claims to enforce 
        the Settlement Agreement or claims based on water rights 
        acquired after the effective date described in section 10 of 
        this Act;
          (2) past, present, and future claims for injury of any kind 
        arising from interference with surface water and groundwater 
        resources and water rights of the Reservation, including, but 
        not limited to, all claims for injury to the Tribe's use and 
        enjoyment of the Reservation, economic development, religion, 
        language, social structure and culture, and injury to the 
        natural resources of the Reservation, from time immemorial 
        through the effective date described in section 10 of this Act;
          (3) past, present, and future claims for injury of any kind 
        arising from, or in any way related to, continuing interference 
        with surface water and groundwater resources and water rights 
        of the Reservation, including the full scope of claims defined 
        in section 5.1, paragraph A(2) of the Settlement Agreement, to 
        the extent that such continuing interference began prior to the 
        effective date described in section 10 of this Act, from time 
        immemorial through the effective date described in section 10 
        of this Act and anytime thereafter;
          (4) past, present, and future claims for injury of any kind 
        arising from, or in any way related to, seepage of water into 
        the San Jacinto Tunnel, including the full scope of claims 
        defined in section 5.1, paragraph A(2) of the Settlement 
        Agreement, from time immemorial through the effective date 
        described in section 10 of this Act and anytime thereafter; and
          (5) past, present, and future claims for injury of any kind 
        arising from, or in any way related to, the Water Management 
        Plan as approved in accordance with the Settlement Agreement, 
        from time immemorial through the effective date described in 
        section 10 of this Act and anytime thereafter.
  (b) Tribal Waivers Against the United States.--
          (1) In general.--The Tribe is authorized, as part of the 
        performance of its obligations under the Settlement Agreement, 
        to execute a waiver and release for claims against the United 
        States (acting in its capacity as trustee for the Tribe or its 
        members, or otherwise acting on behalf of the Tribe or its 
        members), including any agencies, officials, or employees 
        thereof, for any and all--
                  (A) claims described in subsection (a) of this 
                section;
                  (B) past, present, and future claims for failure to 
                acquire or develop water rights and water resources of 
                the Reservation arising from time immemorial through 
                the effective date described in section 10 of this Act 
                and anytime thereafter;
                  (C) past, present, and future claims for failure to 
                protect water rights and water resources of the 
                Reservation arising from time immemorial through the 
                effective date described in section 10 of this Act, and 
                any past, present, and future claims for any continuing 
                failure to protect water rights and water resources of 
                the Reservation, arising from time immemorial through 
                the effective date described in section 10 of this Act 
                and, to the extent that such continuing failure to 
                protect began before the effective date described in 
                section 10 of this Act, anytime thereafter;
                  (D) past, present, and future claims arising from the 
                failure of any non-Federal Party to fulfill the terms 
                of the Settlement Agreement at anytime; and
                  (E) past, present, and future claims arising out of 
                the negotiation of the Settlement Agreement or the 
                negotiation and enactment of this Act, or any specific 
                terms of provisions thereof, including, but not limited 
                to, the Tribe's consent to limit the number of 
                participant parties to the Settlement Agreement.
          (2) Effectiveness of waivers against the united states.--
                  (A) In general.--The waiver and release contained in 
                this subsection shall take effect on the date on which 
                all of the amounts authorized under sections 5(a) and 
                5(b) are appropriated.
                  (B) Periods of limitation; equitable claims.--
                          (i) In general.--All periods of limitation 
                        and time-based equitable defenses applicable to 
                        the claims set forth in paragraph (1) are 
                        tolled for the period between the date of 
                        enactment of this Act until the date on which 
                        the amounts authorized under sections 5(a) and 
                        5(b) are appropriated.
                          (ii) Effect of subparagraph.--This 
                        subparagraph neither revives any claim nor 
                        tolls any period of limitation or time-based 
                        equitable defense that may have expired before 
                        the date of enactment of this Act.
                  (C) Defense.--The making of the amounts of 
                appropriations authorized under sections 5(a) and 5(b) 
                shall constitute a complete defense to any claim which 
                involves the claims set forth in paragraph (b)(1) 
                pending in any court of the United States on the date 
                on which the appropriations are made.

SEC. 9. MISCELLANEOUS PROVISIONS.

  (a) Jurisdiction.--
          (1) No effect on subject matter jurisdiction.--Nothing in the 
        Agreement or this Act restricts, enlarges, or otherwise 
        determines the subject matter jurisdiction of any Federal, 
        State, or Tribal court.
          (2) Judgment and decree.--The United States consents to 
        jurisdiction in the United States District Court for the 
        Central District of California case known as Soboba Band of 
        Luiseno Indians v. Metropolitan Water District of Southern 
        California, No. 00-04208 for the purpose of obtaining approval 
        for a judgment and decree substantially the same as the 
        judgment and decree attached to the Settlement Agreement as 
        exhibit H.
          (3) Effect of subsection.--Nothing in this subsection confers 
        jurisdiction on any State court to--
                  (A) enforce Federal environmental laws regarding the 
                duties of the United States; or
                  (B) conduct judicial review of Federal agency action.
  (b) Use of Water.--
          (1) Tribal use.--With respect to water rights made available 
        under the Settlement Agreement--
                  (A) the Tribe may use water made available to it 
                under the Settlement Agreement for any use it deems 
                advisable on the Reservation and on any other lands it 
                owns or may acquire, in fee or in trust, contiguous to 
                the Reservation or within the area of the groundwater 
                basin described in section 2.4 of the Settlement 
                Agreement;
                  (B) such water rights shall be held in trust by the 
                United States in perpetuity, and shall not be subject 
                to forfeiture or abandonment; and
                  (C) State law shall not apply to the Tribe's use of 
                water made available to it under the Settlement 
                Agreement.
          (2) Non-tribal use.--
                  (A) Contracts and options.--Subject to the 
                limitations in subparagraph (B), the Tribe may enter 
                into contracts and options to lease or contracts and 
                options to exchange water made available to it under 
                the Settlement Agreement, or enter into contracts and 
                options to postpone existing water uses or postpone 
                undertaking new or expanded water uses.
                  (B) Limitations on non-tribal use.--
                          (i) Consistency with water management plan.--
                        Any water made available under subparagraph (A) 
                        shall only be used by participants in, or other 
                        users within the area of, the Water Management 
                        Plan described in section 2.32 of the 
                        Settlement Agreement.
                          (ii) Prohibition on permanent alienation.--No 
                        contract under subparagraph (A) shall be for a 
                        term exceeding one hundred years, nor shall any 
                        contract under subparagraph (A) provide for 
                        permanent alienation of any portion of the 
                        water rights made available under the 
                        Settlement Agreement.
                  (C) Liability.--The Secretary shall not be liable to 
                any party, including the Tribe, for any term of, or any 
                loss or other detriment resulting from, a lease or 
                contract entered into pursuant to this subparagraph.
  (c) Retention of Rights.--
          (1) In the event the waivers and releases set out in section 
        8 of this Act do not become effective pursuant to section 10(a) 
        of this Act, the Soboba Tribe and the United States shall 
        retain the right to assert all rights and claims enumerated in 
        section 8, and any claims or defenses of the parties to the 
        Settlement Agreement shall also be retained.
          (2) The parties expressly reserve all rights not specifically 
        granted, recognized, waived, or released by the Settlement 
        Agreement or this Act.
          (3) Notwithstanding the waivers and releases set forth in 
        section 8(a), the United States retains all claims relating to 
        violations of the Clean Water Act, the Safe Drinking Water Act, 
        the Comprehensive Environmental Response, Compensation, and 
        Liability Act, Resource Conservation and Recovery Act, and the 
        regulations implementing these Acts, including, but not limited 
        to claims related to water quality.
  (d) Precedent.--Nothing in this Act establishes any standard for the 
quantification or litigation of Federal reserved water rights or any 
other Indian water claims of any other Indian tribes in any other 
judicial or administrative proceeding.
  (e) Other Indian Tribes.--Nothing in the Settlement Agreement or this 
Act shall be construed in any way to quantify or otherwise adversely 
affect the water rights, claims, or entitlements to water of any Indian 
tribe, band, or community, other than the Soboba Tribe.
  (f) Environmental Compliance.--
          (1) Signing by the Secretary of the Settlement Agreement does 
        not constitute major Federal action under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
          (2) The Secretary is directed to carry out all environmental 
        compliance required by Federal law in implementing the 
        Agreement.

SEC. 10. EFFECTIVE DATE.

  (a) In General.--The waivers and releases authorized in subsection 
(a) of section 8 of this Act shall become effective as of the date the 
Secretary causes to be published in the Federal Register a statement of 
findings that--
          (1) this Act has been enacted;
          (2) to the extent that the Settlement Agreement conflicts 
        with this Act, the Settlement Agreement has been revised to 
        conform with the Act;
          (3) the Settlement Agreement, revised as necessary, and the 
        waivers and releases described in article 5 of the Settlement 
        Agreement and section 8(a) of this Act have been executed by 
        the parties and the Secretary;
          (4) warranty deeds for the property to be conveyed to the 
        Tribe described in section 4.6 of the Settlement Agreement have 
        been placed in escrow;
          (5) the Tribe and the Secretary have approved the Water 
        Management Plan; and
          (6) the judgment and decree attached to the Settlement 
        Agreement as exhibit H or a judgment and decree substantially 
        the same as exhibit H has been approved by the United States 
        District Court, Eastern Division of the Central District of 
        California, and that judgment and decree has become final and 
        nonappealable.
  (b) Deadline for Effective Date.--If the conditions precedent 
required under subsection (a) of this section have not been fulfilled 
by March 1, 2012, the Settlement Agreement and this Act shall not 
thereafter be effective and shall be null and void, and any funds and 
the interest accrued thereon appropriated pursuant to section 5 shall 
revert to the general fund of the United States Treasury.

                          PURPOSE OF THE BILL

    The purpose of H.R. 4841 is to approve, ratify, and confirm 
the settlement agreement entered into to resolve claims by the 
Soboba Band of Luiseno Indians relating to alleged 
interferences with the water resources of the Tribe, to 
authorize and direct the Secretary of the Interior to execute 
and perform the Settlement Agreement and related waivers, and 
for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Soboba Band of Luiseno Indians (Soboba) is comprised of 
nearly 900 members that live on or near the Soboba Reservation, 
located in the western foothills of San Jacinto Mountains of 
Southern California about 80 miles east of Los Angeles. The 
Soboba Reservation was established on June 19, 1883 and 
encompasses about 9.2 square miles. The San Jacinto River is 
the major surface water feature on the Reservation. The tribe 
relied on the river for its agricultural needs until surface 
water diversions were built upstream of the river. The tribe 
then relied on groundwater as its primary source of water.
    In the 1930s, the Metropolitan Water District of Southern 
California (MWD) dug a 13-mile tunnel through the San Jacinto 
Mountains, about 3\1/2\ miles northwest of the Reservation. The 
tunnel was part of the Colorado River Aqueduct constructed to 
bring drinking water to Southern California. During 
construction, the tunnel pierced underground faults and 
fractures in the mountains that dammed large amounts of 
groundwater underneath the Reservation. Groundwater flooded 
into the tunnel drying up springs, creeks and wells on the 
Reservation that were fed by an underground aquifer.
    Soboba sued the federal government in the Indian Claims 
Commission for failing to protect the Reservation's water 
resources in 1950 (Soboba Band of Mission Indians v. United 
States). The federal government settled the lawsuit in 1991 for 
$12,000,000. Similarly, in 2000 Soboba sued the MWD, Eastern 
Municipal Water District, and Lake Hemet Water District in the 
United States District Court, alleging that the underground 
tunnel built by MWD drained much of the water supply to the 
Soboba Reservation.
    In June 2007, the tribe and water districts entered into a 
settlement to resolve these legal claims. Specifically, the 
settlement gave a final resolution of Soboba's water rights and 
claims and guaranteed the tribe 7,500 acre-feet per year of 
reduced cost water from MWD until 2035. In addition, the three 
water agencies combined will pay $17 million to the tribe for 
access to any of the tribe's unused water. The tribe, in 
return, has agreed to limit its water use to 4,100 acre-feet of 
the 9,000 acre-feet quantified allocation for 50 years.

                            COMMITTEE ACTION

    H.R. 4841 was introduced on March 3, 2008 by Rep. Mary Bono 
Mack (R-CA). The bill was referred to the Committee on Natural 
Resources, and within the Committee to the Subcommittee on 
Water and Power. On March 13, 2008, the Subcommittee held a 
hearing on the bill.
    On April 23, 2008, the Subcommittee met to mark up the 
bill. Subcommittee Ranking Member Cathy McMorris Rodgers (R-WA) 
offered an en bloc amendment that modified the bill by changing 
the required payment years to FY 2010 and FY 2011, since the FY 
2009 budget cycle is near completion. The amendment also 
clarifies that the Development Fund is a ``non-interest'' 
bearing account to conform with House PAYGO rules. It was 
adopted by unanimous consent. The bill, as amended, was then 
forwarded to the Full Committee by unanimous consent.
    On April 30, 2008, the Full Natural Resources Committee met 
to consider the bill. Rep. Cathy McMorris Rodgers offered an 
amendment to change the Development Fund from a ``non-
interest'' account to a ``fund'' for the purpose of further 
meeting House PAYGO rules. It was adopted by unanimous consent. 
The bill as amended was then ordered favorably reported to the 
House of Representatives by unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    Section 1 provides that this act may be cited as the 
``Soboba Band of Luiseno Indians Act.''

Section 2. Findings and purposes

    Section 2 states the findings and purposes of H.R. 4841. 
The findings provide historic and legal background for the 
Soboba Band of Luiseno Indians, including the lawsuit against 
Metropolitan Water District and their claims against Eastern 
and Lake Hemet Municipal Water Districts. The findings also 
outline the negotiation process and settlement conditions, 
including an acknowledgment from the three water districts that 
Soboba's water right is ``superior'' to all others and is 
quantified at 9,000 acre-feet. The purposes section outlines 
the intent of this legislation, including to approve, ratify, 
confirm and implement the settlement agreement.

Section 3. Definitions

    Section 3 provides definitions for commonly used terms 
within the act.

Section 4. Ratification of settlement agreement; authorization

    Section 4 provides that the United States ratifies and 
confirms the June 6, 2006 agreement and authorizes the 
Secretary of Interior to execute and implement the settlement 
agreement.

Section 5. Authorization of appropriations

    Section 5 outlines the total authorized appropriations 
within this act. The San Jacinto Basin Restoration Fund is 
authorized to be appropriated $5,000,000 for fiscal years 2010 
and 2011. The Soboba Band of Luiseno Indians Water Development 
Fund is authorized to be appropriated $5,500,000 for fiscal 
years 2010 and 2011. The total authorized appropriation for 
both funds is $21,000,000.

Section 6. Restoration fund

    Section 6 establishes the Restoration Fund. The San Jacinto 
Basin Restoration Fund will be established within the Treasury 
of the United States and administered by the Secretary of the 
Interior. Eastern Municipal Water District must submit an 
expenditure plan that must be approved by the Secretary for any 
payment or reimbursement of costs. Eastern Municipal is also 
required to submit an annual report to the Secretary that 
describes all costs. Funds are available for use after March 1, 
2012.

Section 7. Development fund

    Section 7 establishes the Development Fund. The Soboba Band 
of Luiseno Indians Water Development Fund will be established 
within the Treasury of the United States to be managed and 
invested by the Secretary of the Interior. The Tribe may 
withdraw all or part of the fund, but must submit a tribal 
management plan that must be approved by the Secretary of the 
Interior. The Secretary of the Interior and the Secretary of 
the Treasury are not liable for the way in which monies 
withdrawn from the fund are spent or invested. In addition, the 
Tribe must submit an expenditure plan that must be approved by 
the Secretary for any payment or reimbursement of costs. The 
tribe is required to submit an annual report to the Secretary 
that describes all costs. No part of the funds shall be 
distributed on a per capita basis to tribal members. Funds are 
available for use after March 1, 2012.

Section 8. Waivers and releases

    Section 8 outlines the tribe's waiver and release of claims 
against the Metropolitan Water District, the Eastern Municipal 
Water District, the Lake Hemet Municipal Water District and the 
United States. The waivers release the three districts for any 
and all past, present, and future claims to surface water and 
groundwater rights, injury and interference with surface and 
groundwater rights, continuing interference with surface water 
and groundwater rights, injury arising from water seepage into 
the San Jacinto Tunnel, and injury related to the water 
management plan. The waiver releases the United States from any 
and all past, present, and future claims for failure to acquire 
and develop reservation water rights and resources, for failure 
to protect reservation water rights and resources, failure of 
any non-federal party to fulfill the terms of the settlement 
agreement at anytime, and for past, present and future claims 
related to the negotiation of the settlement agreement.
    The waiver and release for the United States will take 
effect when the authorized funds are appropriated.

Section 9. Miscellaneous provisions

    This section outlines miscellaneous provisions regarding 
jurisdiction, use of water and retention of rights. Section 9 
also states that nothing in this act establishes a precedent 
for the federal quantification or litigation of reserved water 
rights. Language in this section also clarifies that nothing in 
this act quantifies or adversely harms other tribes and the 
Secretary's signature to the settlement agreement does not 
constitute compliance with the National Environmental Policy 
Act.

Section 10. Effective date

    Section 10 lists the necessary criteria for the waivers and 
releases to be effective. The deadline for the effective date 
is March 1, 2012. If implementation does not occur by March 1, 
2012, the Settlement Agreement and this Act are null and void, 
and all appropriated funds revert to the general fund of the 
United States Treasury.

            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.

                   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. However, clause 3(d)(3)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    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, 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 approve, ratify, and confirm the 
settlement agreement entered into to resolve claims by the 
Soboba Band of Luiseno Indians relating to alleged 
interferences with the water resources of the Tribe, to 
authorize and direct the Secretary of the Interior to execute 
and perform the Settlement Agreement and related waivers.
    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 received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 4841--Soboba Band of Luiseno Indians Settlement Act

    Summary: H.R. 4841 would approve and ratify a water rights 
settlement agreement among the Soboba Band of Luiseno Indians 
and its members, the United States, and three water districts 
in Riverside County, California, provided that certain 
conditions are met. As part of the agreement, H.R. 4841 would 
create two funds--the San Jacinto Basin Restoration Fund and 
the Soboba Band of Luiseno Indians Water Development Fund. 
Under the bill, money in those funds could not be spent until 
the agreement is approved by all parties involved and other 
requirements have been met.
    Based on information from the Department of the Interior 
(DOI), CBO estimates that implementing H.R. 4841 would cost $21 
million over the 2010-2011 period, assuming appropriation of 
the authorized amounts. Enacting the legislation would have no 
significant impact on direct spending and would not affect 
revenues.
    H.R. 4841 would restrict the tribe's ability to use and 
lease water it receives as part of the settlement agreement, 
and that restriction would be an intergovernmental mandate as 
defined in the Unfunded Mandates Reform Act (UMRA). CBO 
estimates that the mandate would impose no new costs on the 
tribe, and therefore, the threshold established in UMRA ($68 
million in 2008, adjusted annually for inflation) would not be 
exceeded.
    H.R. 4841 contains no private-sector mandate as defined in 
UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4841 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--
                                                                    --------------------------------------------
                                                                       2009     2010     2011     2012     2013
----------------------------------------------------------------------------------------------------------------
                                 CHANGES IN SPENDING SUBJECT TO APPROPRIATION\1\

Restoration Fund:
    Authorization Level............................................        0        5        5        0        0
    Estimated Outlays..............................................        0        5        5        0        0
Development Fund:
    Authorization Level............................................        0        6        6        0        0
    Estimated Outlays..............................................        0        0       11        0        0
Total Changes:
        Estimated Authorization Level..............................        0       11       11        0        0
        Estimated Outlays..........................................        0        5       16        0        0
----------------------------------------------------------------------------------------------------------------
\1\Enacting H.R. 4841 also would increase direct spending by an insignificant amount in 2011, from interest on
  appropriation balances.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
4841 will be enacted near the end of 2008 and that the amounts 
authorized will be appropriated each year. In 2006, the Soboba 
Band and three water districts in Riverside County, California, 
signed a settlement agreement to resolve a water rights 
dispute. (The water districts include the Eastern Municipal 
Water District, the Lake Hemet Municipal Water District, and 
the Metropolitan Water District.) The United States would 
become party to the agreement upon enactment of H.R. 4841, 
provided that the settlement agreement is modified to be 
consistent with requirements specified by the bill and other 
conditions are met. Based on information from DOI, CBO assumes 
that, in 2010, the settlement agreement will be finalized and 
all parties will have executed their responsibilities under the 
settlement.
    As part of the settlement agreement, H.R. 4841 would create 
two funds--the San Jacinto Basin Restoration Fund (Restoration 
Fund) and the Soboba Band of Luiseno Indians Water Development 
Fund (Development Fund)--to restore water to the tribe's 
reservation and to ensure an adequate water supply to the San 
Jacinto basin area in Riverside County. Assuming appropriation 
of the authorized amounts, CBO estimates that implementing H.R. 
4841 would cost $21 million over the 2010-2011 period.

Restoration Fund

    H.R. 4841 would authorize the appropriation of $5 million a 
year over the 2010-2011 period for the Restoration Fund to 
cover a portion of the costs for the San Jacinto basin recharge 
project. Under the bill, the Eastern Municipal Water District 
would have the authority to spend monies provided in the 
Restoration Fund or seek reimbursement from the fund for the 
necessary construction activities, provided that certain 
conditions are met. Appropriated funds, however, could not be 
spent until the settlement is agreed to by all parties and 
certain conditions are met. Unless all conditions are met by 
March 1, 2012, any funds appropriated to implement H.R. 4841 
would be returned to the Treasury.
    According to DOI, some construction work has begun for the 
basin recharge project, and the Eastern Municipal Water 
District would likely seek reimbursement for its work soon 
after the settlement is finalized and funds are appropriated. 
Because all components of the settlement will likely be 
completed in 2010, CBO estimates that implementing the bill 
would result in spending of $5 million in both 2010 and 2011.

Development Fund

    H.R. 4841 would authorize the appropriation of $5.5 million 
each year over the 2010-2011 period for the Development Fund to 
benefit the Soboba Tribe. The Secretary of the Interior would 
be required to invest those amounts in Treasury obligations 
until those funds are expended. Funds would be used to restore, 
rehabilitate, and maintain water and sewage infrastructure and 
other related development projects. Similar to the Restoration 
Fund, amounts in this fund could not be spent by the tribe 
until the settlement is finalized and certain conditions are 
met. Unless all conditions of the settlement are met by March 
1, 2012, any funds appropriated to implement H.R. 4841 would be 
returned to the Treasury.
    Trust funds that are held and managed in a fiduciary 
capacity by the federal government on behalf of Indian tribes 
are treated in the budget as nonfederal funds. As a result, 
outlays would be recorded on the budget in the year that all 
funds are provided to the tribe and the settlement agreement is 
final. Therefore, CBO estimates that this provision would 
result in discretionary spending of $11 million in 2011. Once 
the settlement is final, subsequent use of those funds by the 
tribe would have no further impact on the federal budget.
    Estimated impact on state, local, and tribal governments: 
H.R. 4841 would restrict the tribe's ability to use and lease 
water it receives as part of the settlement agreement, and that 
restriction would be an intergovernmental mandate as defined in 
UMRA. Because the tribe has voluntarily agreed to that 
restriction in the settlement, CBO estimates that the mandate 
would impose no new costs on the tribe, and therefore, the 
threshold established in UMRA would not be exceeded.
    Estimated impact on the private sector: H.R. 4841 contains 
no private-sector mandate as defined in UMRA.
    Estimate prepared by: Federal Costs: Leigh Angres; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on Private Sector: MarDestinee Perez.
    Estimate approved by: Theresa Gullo, Deputy Asistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 4841 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or 9(f) of rule XXI.

                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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