I 

111TH CONGRESS 

1ST SESSION H. R. 75 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2009 

Mr. ISSA introduced the following bill; which was referred to the Committee 

on Natural Resources, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

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, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. DEFINITIONS. 

4 In this Act: 

5 (1) DISTRICT.—The term ‘‘District’’ means the 

6 Fallbrook Public Utility District, San Diego County, 

7 California. 


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1 (2) PROJECT.—The term ‘‘Project’’ means the 

2 impoundment, recharge, treatment, and other facili3 ties the construction, operation, watershed manage4 ment, and maintenance of which is authorized under 

5 section 2. 

6 (3) SECRETARY.—The term ‘‘Secretary’’ means 

7 the Secretary of the Interior. 

8 SEC. 2. AUTHORIZATION FOR CONSTRUCTION OF SANTA 

9 MARGARITA RIVER PROJECT. 

10 (a) AUTHORIZATION.—The Secretary, acting pursu11 ant to Federal reclamation law (the Act of June 17, 1902 

12 (32 Stat. 388, chapter 1093)), and Acts supplemental to 

13 and amendatory of that Act (43 U.S.C. 371 et seq.), to 

14 the extent that law is not inconsistent with this Act, may 

15 construct, operate, and maintain the Project substantially 

16 in accordance with the final feasibility report and environ17 mental reviews for the Project and this Act. 

18 (b) CONDITIONS.—The Secretary may construct the 

19 Project only after the Secretary determines that the fol20 lowing conditions have occurred: 

21 (1) CONTRACT.—(A) The District and the Sec22 retary of the Navy have entered into contracts under 

23 subsections (c)(2) and (e) of section 9 of the Rec24 lamation Project Act of 1939 (43 U.S.C. 485h) to 

25 repay to the United States equitable and appropriate 


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1 portions, as determined by the Secretary, of the ac2 tual costs of constructing, operating, and maintain3 ing the Project. 

4 (B) As an alternative to a repayment contract 

5 with the Secretary of the Navy described in subpara6 graph (A), the Secretary may allow the Secretary of 

7 the Navy to satisfy all or a portion of the repayment 

8 obligation for construction of the Project on the pay9 ment of the share of the Secretary of the Navy prior 

10 to the initiation of construction, subject to a final 

11 cost allocation as described in section 3. 

12 (2) PERMITS.—The officer or agency of the 

13 State of California authorized by law to grant per14 mits for the appropriation of water has granted the 

15 permits to the Bureau of Reclamation for the benefit 

16 of the Secretary of the Navy and the District as per17 mittees for rights to the use of water for storage and 

18 diversion as provided in this Act, including approval 

19 of all requisite changes in points of diversion and 

20 storage, and purposes and places of use. 

21 (3) DISTRICT AGREEMENTS.—(A) The District 

22 has agreed— 

23 (i) to not assert against the United States 

24 any prior appropriative right the District may 


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1 have to water in excess of the quantity deliver2 able to the District under this Act; and 

3 (ii) to share in the use of the waters im4 pounded by the Project on the basis of equal 

5 priority and in accordance with the ratio pre6 scribed in section 4(b). 

7 (B) The agreement and waiver under subpara8 graph (A) and the changes in points of diversion and 

9 storage under paragraph (2)— 

10 (i) shall become effective and binding only 

11 when the Project has been completed and put 

12 into operation; and 

13 (ii) may be varied by agreement between 

14 the District and the Secretary of the Navy. 

15 (4) FEASIBILITY STUDIES.—The Secretary has 

16 determined that the Project has completed applica17 ble economic, environmental, and engineering feasi18 bility studies. 

19 SEC. 3. COSTS. 

20 (a) IN GENERAL.—As determined by a final cost allo21 cation after completion of the construction of the Project, 

22 the Secretary of the Navy shall be responsible to pay up23 front or repay to the Secretary only that portion of the 

24 construction, operation, and maintenance costs of the 

25 Project that the Secretary and the Secretary of the Navy 


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1 determine reflects the extent to which the Department of 

2 the Navy benefits from the Project. 

3 (b) OTHER CONTRACTS.—Notwithstanding sub4 section (a), the Secretary may enter into a contract with 

5 the Secretary of the Navy for the impoundment, storage, 

6 treatment, and carriage of prior rights water for domestic, 

7 municipal, fish and wildlife, industrial, and other bene8 ficial purposes using Project facilities. 

9 SEC. 4. OPERATION; YIELD ALLOTMENT; DELIVERY. 

10 (a) OPERATION.—The Secretary, the District, or a 

11 third party (consistent with section 6) may operate the 

12 Project, subject to a memorandum of agreement between 

13 the Secretary, the Secretary of the Navy, and the District 

14 and under regulations satisfactory to the Secretary of the 

15 Navy with respect to the share of the Project of the De16 partment of the Navy. 

17 (b) YIELD ALLOTMENT.—Except as otherwise agreed 

18 between the parties, the Secretary of the Navy and the 

19 District shall participate in the Project yield on the basis 

20 of equal priority and in accordance with the following 

21 ratio: 

22 (1) 60 percent of the yield of the Project is al23 lotted to the Secretary of the Navy. 

24 (2) 40 percent of the yield of the Project is al25 lotted to the District. 


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1 (c) CONTRACTS FOR DELIVERY OF EXCESS

2 WATER.— 

3 (1) EXCESS WATER AVAILABLE TO OTHER PER4 SONS.—If the Secretary of the Navy certifies to the 

5 official agreed on to administer the Project that the 

6 Department of the Navy does not have immediate 

7 need for any portion of the 60 percent of the yield 

8 of the Project allotted to the Secretary of the Navy 

9 under subsection (b), the official may enter into tem10 porary contracts for the sale and delivery of the ex11 cess water. 

12 (2) FIRST RIGHT FOR EXCESS WATER.—The 

13 first right to excess water made available under 

14 paragraph (1) shall be given the District, if other15 wise consistent with the laws of the State of Cali16 fornia. 

17 (3) CONDITION OF CONTRACTS.—Each contract 

18 entered into under paragraph (1) for the sale and 

19 delivery of excess water shall include a condition 

20 that the Secretary of the Navy has the right to de21 mand the water, without charge and without obliga22 tion on the part of the United States, after 30 days 

23 notice. 

24 (4) MODIFICATION OF RIGHTS AND OBLIGA25 TIONS.—The rights and obligations of the United 


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1 States and the District regarding the ratio, 

2 amounts, definition of Project yield, and payment 

3 for excess water may be modified by an agreement 

4 between the parties. 

5 (d) CONSIDERATION.— 

6 (1) DEPOSIT OF FUNDS.— 

7 (A) IN GENERAL.—Amounts paid to the 

8 United States under a contract entered into 

9 under subsection (c) shall be— 

10 (i) deposited in the special account es11 tablished for the Department of the Navy 

12 under section 2667(e)(1) of title 10, 

13 United States Code; and 

14 (ii) shall be available for the purposes 

15 specified in section 2667(e)(1)(C) of that 

16 title. 

17 (B) EXCEPTION.—Section 2667(e)(1)(D) 

18 of title 10, United States Code, shall not apply 

19 to amounts deposited in the special account 

20 pursuant to this subsection. 

21 (2) IN-KIND CONSIDERATION.—In lieu of mone22 tary consideration under paragraph (1), or in addi23 tion to monetary consideration, the Secretary of the 

24 Navy may accept in-kind consideration in a form 


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1 and quantity that is acceptable to the Secretary of 

2 the Navy, including— 

3 (A) maintenance, protection, alteration, re4 pair, improvement, or restoration (including en5 vironmental restoration) of property or facilities 

6 of the Department of the Navy; 

7 (B) construction of new facilities for the 

8 Department of the Navy; 

9 (C) provision of facilities for use by the 

10 Department of the Navy; 

11 (D) facilities operation support for the De12 partment of the Navy; and 

13 (E) provision of such other services as the 

14 Secretary of the Navy considers appropriate. 

15 (3) RELATION TO OTHER LAWS.—Sections 

16 2662 and 2802 of title 10, United States Code, shall 

17 not apply to any new facilities the construction of 

18 which is accepted as in-kind consideration under this 

19 subsection. 

20 (4) CONGRESSIONAL NOTIFICATION.—If the in21 kind consideration proposed to be provided under a 

22 contract to be entered into under subsection (c) has 

23 a value in excess of $500,000, the contract may not 

24 be entered into until the earlier of— 


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1 (A) the end of the 30-day period beginning 

2 on the date on which the Secretary of the Navy 

3 submits to the Committee on Armed Services of 

4 the Senate and the Committee on Armed Serv5 ices of the House of Representatives a report 

6 describing the contract and the form and quan7 tity of the in-kind consideration; or 

8 (B) the end of the 14-day period beginning 

9 on the date on which a copy of the report re10 ferred to in subparagraph (A) is provided in an 

11 electronic medium pursuant to section 480 of 

12 title 10, United States Code. 

13 SEC. 5. REPAYMENT OBLIGATION OF THE DISTRICT. 

14 (a) DETERMINATION.— 

15 (1) IN GENERAL.—Except as otherwise pro16 vided in this subsection, the general repayment obli17 gation of the District shall be determined by the 

18 Secretary consistent with subsections (c)(2) and (e) 

19 of section 9 of the Reclamation Project Act of 1939 

20 (43 U.S.C. 485h) to repay to the United States eq21 uitable and appropriate portions, as determined by 

22 the Secretary, of the actual costs of constructing, 

23 operating, and maintaining the Project. 

24 (2) GROUNDWATER.—For purposes of calcu25 lating interest and determining the time when the 


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1 repayment obligation of the District to the United 

2 States commences, the pumping and treatment of 

3 groundwater from the Project shall be deemed equiv4 alent to the first use of water from a water storage 

5 project. 

6 (3) CONTRACTS FOR DELIVERY OF EXCESS

7 WATER.—There shall be no repayment obligation 

8 under this section for water delivered to the District 

9 under a contract described in section 4(c). 

10 (b) MODIFICATION OF RIGHTS AND OBLIGATION BY

11 AGREEMENT.—The rights and obligations of the United 

12 States and the District regarding the repayment obliga13 tion of the District may be modified by an agreement be14 tween the parties. 

15 SEC. 6. TRANSFER OF CARE, OPERATION, AND MAINTE16 NANCE. 

17 (a) IN GENERAL.—The Secretary may transfer to the 

18 District, or a mutually agreed upon third party, the care, 

19 operation, and maintenance of the Project under condi20 tions that are— 

21 (1) satisfactory to the Secretary and the Dis22 trict; and 

23 (2) with respect to the portion of the Project 

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1 dleton, satisfactory to the Secretary, the District, 

2 and the Secretary of the Navy. 

3 (b) EQUITABLE CREDIT.— 

4 (1) IN GENERAL.—In the event of a transfer 

5 under subsection (a), the District shall be entitled to 

6 an equitable credit for the costs associated with the 

7 proportionate share of the Secretary of the operation 

8 and maintenance of the Project. 

9 (2) APPLICATION.—The amount of costs de10 scribed in paragraph (1) shall be applied against the 

11 indebtedness of the District to the United States. 

12 SEC. 7. SCOPE OF ACT. 

13 (a) IN GENERAL.—Except as otherwise provided in 

14 this section, for the purpose of this Act, the laws of the 

15 State of California shall apply to the rights of the United 

16 States pertaining to the use of water under this Act. 

17 (b) LIMITATIONS.—Nothing in this Act— 

18 (1) provides a grant or a relinquishment by the 

19 United States of any rights to the use of water that 

20 the United States acquired according to the laws of 

21 the State of California, either as a result of the ac22 quisition of the land comprising Camp Joseph H. 

23 Pendleton and adjoining naval installations, and the 

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1 tion, or through actual use or prescription or both 

2 since the date of that acquisition, if any; 

3 (2) creates any legal obligation to store any 

4 water in the Project, to the use of which the United 

5 States has those rights; 

6 (3) requires the division under this Act of water 

7 to which the United States has those rights; or 

8 (4) constitutes a recognition of, or an admission 

9 by the United States that, the District has any 

10 rights to the use of water in the Santa Margarita 

11 River, which rights, if any, exist only by virtue of 

12 the laws of the State of California. 

13 SEC. 8. LIMITATIONS ON OPERATION AND ADMINISTRA14 TION. 

15 Unless otherwise agreed by the Secretary of the 

16 Navy, the Project— 

17 (1) shall be operated in a manner which allows 

18 the free passage of all of the water to the use of 

19 which the United States is entitled according to the 

20 laws of the State of California either as a result of 

21 the acquisition of the land comprising Camp Joseph 

22 H. Pendleton and adjoining naval installations, and 

23 the rights to the use of water as a part of those ac24 quisitions, or through actual use or prescription, or 

25 both, since the date of that acquisition, if any; and 


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1 (2) shall not be administered or operated in any 

2 way that will impair or deplete the quantities of 

3 water the use of which the United States would be 

4 entitled under the laws of the State of California 

5 had the Project not been built. 

6 SEC. 9. REPORTS TO CONGRESS. 

7 Not later than 2 years after the date of the enact8 ment of this Act and periodically thereafter, the Secretary 

9 and the Secretary of the Navy shall each submit to the 

10 appropriate committees of Congress reports that describe 

11 whether the conditions specified in section 2(b) have been 

12 met and if so, the manner in which the conditions were 

13 met. 

14 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

15 There is authorized to be appropriated to carry out 

16 this Act— 

17 (1) $60,000,000, as adjusted to reflect the engi18 neering costs indices for the construction cost of the 

19 Project; and 

20 (2) such sums as are necessary to operate and 

21 maintain the Project. 


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1 SEC. 11. SUNSET. 

2 The authority of the Secretary to complete construc3 tion of the Project shall terminate on the date that is 10 

4 years after the date of the enactment of this Act. 

Æ 


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