II 
Calendar No. 1008 
110TH CONGRESS 
2D SESSION 
H. R. 29 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 13, 2008 
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
SEPTEMBER 16, 2008 
Reported by Mr. BINGAMAN, with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
AN ACT 
To authorize the Secretary of the Interior to construct facili-
ties to provide water for irrigation, municipal, domestic, 
military, and other uses from the Santa Margarita River, 
California, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. DEFINITIONS. 
For the purposes of this Act, the following definitions 
apply: 
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(1) DISTRICT.—The term ‘‘District’’ means the 
Fallbrook Public Utility District, San Diego County, 
California. 
(2) PROJECT.—The term ‘‘Project’’ means the 
impoundment, recharge, treatment, and other facili-
ties the construction, operation, watershed manage-
ment, and maintenance of which is authorized under 
section 2. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior, unless otherwise stat-
ed. 
SEC. 2. AUTHORIZATION FOR CONSTRUCTION OF SANTA 
MARGARITA RIVER PROJECT. 
(a) AUTHORIZATION.—The Secretary, acting pursu-
ant to the Federal reclamation laws (Act of June 17, 
1902; 32 Stat. 388), and Acts amendatory thereof or sup-
plementary thereto, as far as those laws are not incon-
sistent with the provisions of this Act, is authorized to 
construct, operate, and maintain the Project substantially 
in accordance with the final feasibility report and this Act. 
(b) CONDITIONS.—The Secretary may construct the 
Project only after the Secretary determines that the fol-
lowing conditions have occurred: 
(1) The District and the Navy have entered 
into contracts under sections 9(c)2 and 9(e) of the 
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Reclamation 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,
operating,
and
maintaining
the 
Project. 
(2) The officer or agency of the State of Cali-
fornia authorized by law to grant permits for the ap-
propriation of water has granted such permits to the 
Bureau of Reclamation for the benefit of the De-
partment of the Navy and the District as permittees 
for rights to the use of water for storage and diver-
sion as provided in this Act, including approval of all 
requisite changes in points of diversion and storage, 
and purposes and places of use. 
(3) The District has agreed that it will not as-
sert against the United States any prior appropria-
tive right the District may have to water in excess 
of the quantity deliverable to it under this Act, and 
will share in the use of the waters impounded by the 
Project on the basis of equal priority and in accord-
ance with the ratio prescribed in section 4(b). This 
agreement and waiver and the changes in points of 
diversion and storage under paragraph (2), shall be-
come effective and binding only when the Project 
has been completed and put into operation and may 
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be varied by agreement between the District and the 
Secretary of the Navy. 
(4) The Secretary has determined that the 
Project has economic, environmental, and engineer-
ing feasibility. 
SEC. 3. COSTS. 
Upon completion of the construction of the Project, 
the Department of the Navy shall be responsible to repay 
to the Secretary only that portion of the construction, op-
eration and maintenance costs of the Project that the Sec-
retary and the Secretary of the Navy determine reflects 
the extent to which the Department of the Navy benefits 
from the Project. Provided that the Secretary is hereby 
authorized to enter into a contract with the Secretary of 
the Navy for the impounding, storage, treatment, and car-
riage of prior rights water for domestic, municipal, fish 
and wildlife, industrial and other beneficial purposes using 
Project facilities. 
SEC. 4. OPERATION; YIELD ALLOTMENT; DELIVERY. 
(a) OPERATION.—The operation of the Project, sub-
ject to a memorandum of agreement between the Sec-
retary, the Navy, and the District and under regulations 
satisfactory to the Secretary of the Navy with respect to 
the Navy’s share of the project, may be by the Secretary, 
the District, or a third party consistent with section 6. 
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(b) YIELD ALLOTMENT.—Except as otherwise agreed 
between the parties, the Department of the Navy and the 
District shall participate in the Project yield on the basis 
of equal priority and in accordance with the following 
ratio: 
(1) 60 percent of the Project’s yield is allotted 
to the Secretary of the Navy. 
(2) 40 percent of the Project’s yield is allotted 
to the District. 
(c)
CONTRACTS
FOR
DELIVERY
OF
EXCESS 
WATER.— 
(1) EXCESS WATER AVAILABLE TO OTHER PER-
SONS.—If the Secretary of the Navy certifies to the 
official agreed upon to administer the Project that 
the Department of the Navy does not have imme-
diate need for any portion of the 60 percent of the 
Project’s yield allotted to the Secretary of the Navy 
under subsection (b), the official may enter into tem-
porary contracts for the sale and delivery of the ex-
cess water. 
(2) FIRST
RIGHT
FOR
EXCESS
WATER.—The 
first right to excess water to be made available 
under paragraph (1) shall be given the District, if 
otherwise consistent with the laws of the State of 
California. 
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(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). 
(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. 
SECTION 1. DEFINITIONS. 
In this Act: 
(1) DISTRICT.—The term ‘‘District’’ means the 
Fallbrook Public Utility District, San Diego County, 
California. 
(2) PROJECT.—The term ‘‘Project’’ means the 
impoundment, recharge, treatment, and other facili-
ties the construction, operation, watershed manage-
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ment, and maintenance of which is authorized under 
section 2. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
SEC. 2. AUTHORIZATION FOR CONSTRUCTION OF SANTA 
MARGARITA RIVER PROJECT. 
(a) AUTHORIZATION.—The Secretary, acting pursuant 
to Federal reclamation law (the Act of June 17, 1902 (32 
Stat. 388, chapter 1093)), and Acts supplemental to and 
amendatory of that Act (43 U.S.C. 371 et seq.), to the extent 
that law is not inconsistent with this Act, may construct, 
operate, and maintain the Project substantially in accord-
ance with the final feasibility report and environmental re-
views for the Project and this Act. 
(b) CONDITIONS.—The Secretary may construct the 
Project only after the Secretary determines that the fol-
lowing conditions have occurred: 
(1)(A) The District and the Secretary of the 
Navy have entered into contracts under subsections 
(c)(2) and (e) of section 9 of the Reclamation Project 
Act of 1939 (43 U.S.C. 485h) to repay to the United 
States equitable and appropriate portions, as deter-
mined by the Secretary, of the actual costs of con-
structing, operating, and maintaining the Project. 
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(B) As an alternative to a repayment contract 
with the Secretary of the Navy described in subpara-
graph (A), the Secretary may allow the Secretary of 
the Navy to satisfy all or a portion of the repayment 
obligation for construction of the Project on the pay-
ment of the share of the Secretary of the Navy prior 
to the initiation of construction, subject to a final cost 
allocation as described in section 3. 
(2) The officer or agency of the State of Cali-
fornia authorized by law to grant permits for the ap-
propriation of water has granted the permits to the 
Bureau of Reclamation for the benefit of the Secretary 
of the Navy and the District as permittees for rights 
to the use of water for storage and diversion as pro-
vided in this Act, including approval of all requisite 
changes in points of diversion and storage, and pur-
poses and places of use. 
(3)(A) The District has agreed— 
(i) to not assert against the United States 
any prior appropriative right the District may 
have to water in excess of the quantity deliver-
able to the District under this Act; and 
(ii) to share in the use of the waters im-
pounded by the Project on the basis of equal pri-
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ority and in accordance with the ratio prescribed 
in section 4(b). 
(B) The agreement and waiver under subpara-
graph (A) and the changes in points of diversion and 
storage under paragraph (2)— 
(i) shall become effective and binding only 
when the Project has been completed and put 
into operation; and 
(ii) may be varied by agreement between the 
District and the Secretary of the Navy. 
(4) The Secretary has determined that the 
Project has completed applicable economic, environ-
mental, and engineering feasibility studies. 
SEC. 3. COSTS. 
(a) IN GENERAL.—As determined by a final cost allo-
cation after completion of the construction of the Project, 
the Secretary of the Navy shall be responsible to pay upfront 
or repay to the Secretary only that portion of the construc-
tion, operation, and maintenance costs of the Project that 
the Secretary and the Secretary of the Navy determine re-
flects the extent to which the Department of the Navy bene-
fits from the Project. 
(b) OTHER CONTRACTS.—Notwithstanding subsection 
(a), the Secretary may enter into a contract with the Sec-
retary of the Navy for the impoundment, storage, treatment, 
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and carriage of prior rights water for domestic, municipal, 
fish and wildlife, industrial, and other beneficial purposes 
using Project facilities. 
SEC. 4. OPERATION; YIELD ALLOTMENT; DELIVERY. 
(a) OPERATION.—The Secretary, the District, or a 
third party (consistent with section 6) may operate the 
Project, subject to a memorandum of agreement between the 
Secretary, the Secretary of the Navy, and the District and 
under regulations satisfactory to the Secretary of the Navy 
with respect to the share of the Project of the Department 
of the Navy. 
(b) YIELD ALLOTMENT.—Except as otherwise agreed 
between the parties, the Secretary of the Navy and the Dis-
trict shall participate in the Project yield on the basis of 
equal priority and in accordance with the following ratio: 
(1) 60 percent of the yield of the Project is allot-
ted to the Secretary of the Navy. 
(2) 40 percent of the yield of the Project is allot-
ted to the District. 
(c) CONTRACTS FOR DELIVERY OF EXCESS WATER.— 
(1) EXCESS WATER AVAILABLE TO OTHER PER-
SONS.—If the Secretary of the Navy certifies to the of-
ficial agreed on to administer the Project that the De-
partment of the Navy does not have immediate need 
for any portion of the 60 percent of the yield of the 
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Project allotted to the Secretary of the Navy under 
subsection (b), the official may enter into temporary 
contracts for the sale and delivery of the excess water. 
(2) FIRST RIGHT FOR EXCESS WATER.—The first 
right to excess water made available under paragraph 
(1) shall be given the District, if otherwise consistent 
with the laws of the State of California. 
(3) CONDITION OF CONTRACTS.—Each contract 
entered into under paragraph (1) for the sale and de-
livery of excess water shall include a condition that 
the Secretary of the Navy has the right to demand the 
water, without charge and without obligation 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.— 
(A) IN
GENERAL.—Amounts paid to the 
United States under a contract entered into 
under subsection (c) shall be— 
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(i) deposited in the special account es-
tablished for the Department of the Navy 
under section 2667(e)(1) of title 10, United 
States Code; and 
(ii) shall be available for the purposes 
specified in section 2667(e)(1)(C) of that 
title. 
(B) EXCEPTION.—Section 2667(e)(1)(D) of 
title 10, United States Code, shall not apply to 
amounts deposited in the special account pursu-
ant to this subsection. 
(2) IN-KIND CONSIDERATION.—In lieu of mone-
tary consideration under paragraph (1), or in addi-
tion to monetary 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— 
(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 De-
partment of the Navy; 
(C) provision of facilities for use by the De-
partment of the Navy; 
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(D) facilities operation support for the De-
partment of the Navy; and 
(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 the construction of which 
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— 
(A) the end of the 30-day period beginning 
on the date on which the Secretary of the Navy 
submits to the Committee on Armed Services of 
the Senate and the Committee on Armed Services 
of the House of Representatives a report describ-
ing the contract and the form and quantity of 
the in-kind consideration; or 
(B) the end of the 14-day period beginning 
on the date on which a copy of the report re-
ferred to in subparagraph (A) is provided in an 
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electronic medium pursuant to section 480 of 
title 10, United States Code. 
SEC. 5. REPAYMENT OBLIGATION OF THE DISTRICT. 
(a) DETERMINATION.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the general repayment obligation of 
the District shall be determined by the Secretary con-
sistent with subsections (c)(2) and (e) of section 9 of 
the Reclamation Project Act of 1939 (43 U.S.C. 485h) 
to repay to the United States equitable and appro-
priate portions, as determined by the Secretary, of the 
actual costs of constructing, operating, and maintain-
ing the Project. 
(2) GROUNDWATER.—For purposes of calculating 
interest and determining the time when the repay-
ment obligation of the District to the United States 
commences, the pumping and treatment of ground-
water from the Project shall be deemed equivalent to 
the first use of water from a water storage project. 
(3) CONTRACTS
FOR
DELIVERY
OF
EXCESS 
WATER.—There shall be no repayment obligation 
under this section for water delivered to the District 
under a contract described in section 4(c). 
(b) MODIFICATION OF RIGHTS AND OBLIGATION BY 
AGREEMENT.—The rights and obligations of the United 
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States and the District regarding the repayment obligation 
of the District may be modified by an agreement between 
the parties. 
SEC. 6. TRANSFER OF CARE, OPERATION, AND MAINTE-
NANCE. 
(a) IN GENERAL.—The Secretary may transfer to the 
District, or a mutually agreed upon third party, the care, 
operation, and maintenance of the Project under conditions 
that are— 
(1) satisfactory to the Secretary and the District; 
and 
(2) with respect to the portion of the Project that 
is located within the boundaries of Camp Pendleton, 
satisfactory to the Secretary, the District, and the 
Secretary of the Navy. 
(b) EQUITABLE CREDIT.— 
(1) IN
GENERAL.—In the event of a transfer 
under subsection (a), the District shall be entitled to 
an equitable credit for the costs associated with the 
proportionate share of the Secretary of the operation 
and maintenance of the Project. 
(2) APPLICATION.—The amount of costs de-
scribed in paragraph (1) shall be applied against the 
indebtedness of the District to the United States. 
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SEC. 7. SCOPE OF ACT. 
(a) IN GENERAL.—Except as otherwise provided in 
this section, for the purpose of this Act, the laws of the State 
of California shally apply to the rights of the United States 
pertaining to the use of water under this Act. 
(b) LIMITATIONS.—Nothing in this Act— 
(1) provides a grant or a relinquishment by the 
United States of any rights to the use of water that 
the United States acquired according to the laws of 
the State of California, either as a result of the acqui-
sition of the land comprising Camp Joseph H. Pen-
dleton and adjoining naval installations, and the 
rights to the use of water as a part of that acquisi-
tion, or through actual use or prescription or both 
since the date of that acquisition, if any; 
(2) creates any legal obligation to store any 
water in the Project, to the use of which the United 
States has those rights; 
(3) requires the division under this Act of water 
to which the United States has those rights; or 
(4) constitutes a recognition of, or an admission 
by the United States 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. 
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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 the acqui-
sition of the land comprising Camp Joseph H. Pen-
dleton and adjoining naval installations, and the 
rights to the use of water as a part of those acquisi-
tions, 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 that will impair or deplete the quantities of 
water the use of which the United States would be en-
titled under the laws of the State of California had 
the Project not been built. 
SEC. 9. REPORTS TO CONGRESS. 
Not later than 2 years after the date of the enactment 
of this Act and periodically thereafter, the Secretary and 
the Secretary of the Navy shall each submit to the appro-
priate committees of Congress reports that describe whether 
the conditions specified in section 2(b) have been met and 
if so, the manner in which the conditions were met. 
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SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out 
this Act— 
(1) $60,000,000, as adjusted to reflect the engi-
neering costs indices for the construction cost of the 
Project; and 
(2) such sums as are necessary to operate and 
maintain the Project. 
SEC. 11. SUNSET. 
The authority of the Secretary to complete construction 
of the Project shall terminate on the date that is 10 years 
after the date of enactment of this Act. 
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Calendar No. 1008 
110TH CONGRESS 
2D SESSION 
H. R. 29 
AN ACT 
To authorize the Secretary of the Interior to con-
struct facilities to provide water for irrigation, 
municipal, domestic, military, and other uses 
from the Santa Margarita River, California, and 
for other purposes. 
SEPTEMBER 16, 2008 
Reported with an amendment 
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