(3) CONDITION OF CONTRACTS.—Each contract 
entered into under paragraph (1) for the sale and 
delivery of excess water shall include a condition 
that the Secretary of the Navy has the right to de-
mand that water, without charge and without obliga-
tion on the part of the United States, after 30 days 
notice. 
(4) MODIFICATION
OF
RIGHTS
AND
OBLIGA-
TIONS.—The rights and obligations of the United 
States and the District regarding the ratio, 
amounts, definition of Project yield, and payment 
for excess water 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. 
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(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 
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. 
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(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: 
(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 sections 9(c)2 and 9(e) of the Rec-
lamation Project Act of 1939 to repay to the United 
States equitable and appropriate portions, as determined 
by the Secretary, of the actual costs of constructing, oper-
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ating, and maintaining the Project; provided, however, 
that for the purposes of calculating interest and deter-
mining the time when the District’s repayment obligation 
to the United States commences, the pumping and treat-
ment 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 obligation under this 
section for water delivered to the District under a contract 
as provided in section 4(c). 
(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 
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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. 
Provided that nothing in this Act shall be construed— 
(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 require the division under this Act of 
water to which the United States has such rights; or 
(4) to constitute a recognition of, or an admis-
sion by the United States that, the District has any 
rights to the use of water in the Santa Margarita 
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River, which rights, if any, exist only by virtue of 
the laws of the State of California. 
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 
which the United States is entitled 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 those ac-
quisitions, or through actual use or prescription, or 
both, since the date of that acquisition, if any; and 
(2) shall not be administered or operated in any 
way which will impair or deplete the quantities of 
water the use of which the United States would be 
entitled under the laws of the State of California 
had the Project not been built. 
SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated, out of any 
money in the Treasury of the United States not otherwise 
appropriated, the following— 
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(1) $60,000,000 (the current estimated con-
struction cost of the Project, plus or minus such 
amounts as may be indicated by the engineering cost 
indices for this type of construction); and 
(2) such sums as may be required to operate 
and maintain the said project. 
SEC. 10. REPORTS TO CONGRESS. 
Not later than 1 year after the date of the enactment 
of this Act and periodically thereafter, the Secretary and 
the Secretary of the Navy shall each report to the Con-
gress regarding if the conditions specified in section 2(b) 
have been met and if so, the details of how they were met. 
SEC. 11. SUNSET. 
The authority of the Secretary to complete construc-
tion of the Project shall terminate 10 years after the date 
of enactment of this Act. 
Æ 
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