HR 125 RCS 
tion on the part of the United States, after 30 days 
notice. 
(4) MODIFICATION
OF
RIGHTS
AND
OBLIGA-
TIONS RELATED TO WATER YIELD.—The rights and 
obligations of the United States and the District re-
garding the ratio or amounts of Project yield deliv-
ered may be modified by an agreement between the 
parties. 
(d) CONSIDERATION.— 
(1) DEPOSIT OF FUNDS.—Moneys paid to the 
United States under a contract entered into under 
subsection (c) shall be deposited in the special ac-
count established for the Department of the Navy 
under paragraph (1) of section 2667(d) of title 10, 
United States Code, and shall be available for the 
purposes specified in subparagraph (C) of such 
paragraph. Subparagraph (D) of such paragraph 
shall not apply to moneys deposited in the special 
account pursuant to this subsection. 
(2) IN-KIND CONSIDERATION.—In lieu of mone-
tary consideration under paragraph (1), or in addi-
tion to such consideration, the Secretary of the Navy 
may accept in-kind consideration in a form and 
quantity that is acceptable to the Secretary of the 
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HR 125 RCS 
Navy, including the following forms of in-kind con-
sideration: 
(A) Maintenance, protection, alteration, re-
pair, improvement, or restoration (including en-
vironmental restoration) of property or facilities 
of the Department of the Navy. 
(B) Construction of new facilities for the 
Department of the Navy. 
(C) Provision of facilities for use by the 
Department of the Navy. 
(D) Facilities operation support for the 
Department of the Navy. 
(E) Provision of such other services as the 
Secretary of the Navy considers appropriate. 
(3) RELATION
TO
OTHER
LAWS.—Sections 
2662 and 2802 of title 10, United States Code, shall 
not apply to any new facilities whose construction is 
accepted as in-kind consideration under this sub-
section. 
(4) CONGRESSIONAL NOTIFICATION.—If the in- 
kind consideration proposed to be provided under a 
contract to be entered into under subsection (c) has 
a value in excess of $500,000, the contract may not 
be entered into until the earlier of the following: 
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(A) The end of the 30-day period begin-
ning on the date on which a report describing 
the contract and the form and quantity of the 
in-kind consideration is submitted by the Sec-
retary of the Navy to the Committee on Armed 
Services of the Senate and the Committee on 
Armed Services of the House of Representa-
tives. 
(B) The end of the 14-day period begin-
ning on the date on which a copy of the report 
referred to in subparagraph (A) is provided in 
an electronic medium pursuant to section 480 
of title 10, United States Code. 
SEC. 5. REPAYMENT OBLIGATION OF THE DISTRICT. 
(a) IN GENERAL.—The general repayment obligation 
of the District shall be determined by the Secretary of the 
Interior consistent with the Water Supply Act of 1958; 
provided, however, that for the purposes of calculating in-
terest and determining the time when the District’s repay-
ment obligation to the United States commences, the 
pumping and treatment of groundwater from the Project 
shall be deemed equivalent to the first use of water from 
a water storage project. There shall be no repayment obli-
gation under this section for water delivered to the Dis-
trict under a contract as provided in section 4(c). 
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(b) MODIFICATION OF RIGHTS AND OBLIGATION BY 
AGREEMENT.—The rights and obligations of the United 
States and the District regarding the repayment obliga-
tion of the District may be modified by an agreement be-
tween the parties. 
SEC. 6. TRANSFER OF CARE, OPERATION, AND MAINTE-
NANCE. 
The Secretary may transfer to the District, or a mu-
tually agreed upon third party, the care, operation, and 
maintenance of the Project under conditions satisfactory 
to the Secretary and the District, and with respect to the 
portion of the Project that is located within the boundaries 
of Camp Pendleton, satisfactory also to the Secretary of 
the Navy. If such a transfer takes place, the District shall 
be entitled to an equitable credit for the costs associated 
with the Secretary’s proportionate share of the operation 
and maintenance of the Project. The amount of such costs 
shall be applied against the indebtedness of the District 
to the United States. 
SEC. 7. SCOPE OF ACT. 
For the purpose of this Act, the basis, measure, and 
limit of all rights of the United States pertaining to the 
use of water shall be the laws of the State of California. 
That nothing in this Act shall be construed— 
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(1) as a grant or a relinquishment by the 
United States of any rights to the use of water that 
it acquired according to the laws of the State of 
California, either as a result of its acquisition of the 
lands comprising Camp Joseph H. Pendleton and 
adjoining naval installations, and the rights to the 
use of water as a part of that acquisition, or through 
actual use or prescription or both since the date of 
that acquisition, if any; 
(2) to create any legal obligation to store any 
water in the Project, to the use of which the United 
States has such rights; 
(3) to constitute a recognition of, or an admis-
sion that, the District has any rights to the use of 
water in the Santa Margarita River, which rights, if 
any, exist only by virtue of the laws of the State of 
California; or 
(4) to require the division under this Act of 
water to which the United States has such rights. 
SEC. 8. LIMITATIONS ON OPERATION AND ADMINISTRA-
TION. 
Unless otherwise agreed by the Secretary of the 
Navy, the Project— 
(1) shall be operated in a manner which allows 
the free passage of all of the water to the use of 
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