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 Serv-
ices, 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 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. 
In this Act: 
(1) DISTRICT.—The term ‘‘District’’ means the 
Fallbrook Public Utility District, San Diego County, 
California. 
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(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. 
SEC. 2. AUTHORIZATION FOR CONSTRUCTION OF SANTA 
MARGARITA RIVER PROJECT. 
(a) AUTHORIZATION.—The Secretary, acting pursu-
ant 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 accordance with the final feasibility report and environ-
mental reviews 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) CONTRACT.—(A) The District and the Sec-
retary of the Navy have entered into contracts under 
subsections (c)(2) and (e) of section 9 of the Rec-
lamation Project Act of 1939 (43 U.S.C. 485h) to 
repay to the United States equitable and appropriate 
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portions, as determined by the Secretary, of the ac-
tual costs of constructing, operating, and maintain-
ing the Project. 
(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) PERMITS.—The officer or agency of the 
State of California authorized by law to grant per-
mits for the appropriation of water has granted the 
permits to the Bureau of Reclamation for the benefit 
of the Secretary of the Navy and the District as per-
mittees for rights to the use of water for storage and 
diversion as provided in this Act, including approval 
of all requisite changes in points of diversion and 
storage, and purposes and places of use. 
(3) DISTRICT AGREEMENTS.—(A) The District 
has agreed— 
(i) to not assert against the United States 
any prior appropriative right the District may 
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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 
priority and in accordance with the ratio pre-
scribed 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) FEASIBILITY STUDIES.—The Secretary has 
determined that the Project has completed applica-
ble economic, environmental, and engineering feasi-
bility 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 up-
front or repay to the Secretary only that portion of the 
construction, operation, and maintenance costs of the 
Project that the Secretary and the Secretary of the Navy 
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determine reflects the extent to which the Department of 
the Navy benefits from the Project. 
(b) OTHER
CONTRACTS.—Notwithstanding sub-
section (a), the Secretary may enter into a contract with 
the Secretary of the Navy for the impoundment, storage, 
treatment, and carriage of prior rights water for domestic, 
municipal, fish and wildlife, industrial, and other bene-
ficial 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 De-
partment of the Navy. 
(b) YIELD ALLOTMENT.—Except as otherwise agreed 
between the parties, the Secretary 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 yield of the Project is al-
lotted to the Secretary of the Navy. 
(2) 40 percent of the yield of the Project is al-
lotted to the District. 
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(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 on to administer the Project that the 
Department of the Navy does not have immediate 
need for any portion of the 60 percent of the yield 
of the Project 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 made available under 
paragraph (1) shall be given the District, if other-
wise consistent with the laws of the State of Cali-
fornia. 
(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 the 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 
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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— 
(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 
pursuant 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 
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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 
Department of the Navy; 
(C) provision of facilities for use by the 
Department of the Navy; 
(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 
subsection. 
(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— 
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(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 Serv-
ices of the House of Representatives a report 
describing the contract and the form and quan-
tity 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 
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 pro-
vided in this subsection, the general repayment obli-
gation of the District shall be determined by the 
Secretary consistent 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 eq-
uitable and appropriate portions, as determined by 
the Secretary, of the actual costs of constructing, 
operating, and maintaining the Project. 
(2) GROUNDWATER.—For purposes of calcu-
lating interest and determining the time when the 
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repayment obligation of the District to the United 
States commences, the pumping and treatment of 
groundwater from the Project shall be deemed equiv-
alent 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 
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. 
(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 condi-
tions that are— 
(1) satisfactory to the Secretary and the Dis-
trict; and 
(2) with respect to the portion of the Project 
that is located within the boundaries of Camp Pen-
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dleton, 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. 
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 shall 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 ac-
quisition of the land comprising Camp Joseph H. 
Pendleton and adjoining naval installations, and the 
rights to the use of water as a part of that acquisi-
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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. 
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 acquisition of the land 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 
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(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 
entitled 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 enact-
ment of this Act and periodically thereafter, the Secretary 
and the Secretary of the Navy shall each submit to the 
appropriate 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. 
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. 
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SEC. 11. SUNSET. 
The authority of the Secretary to complete construc-
tion of the Project shall terminate on the date that is 10 
years after the date of the enactment of this Act. 
Æ 
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