IIB 
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 
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, 
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SECTION 1. DEFINITIONS. 
For the purposes of this Act, the following definitions 
apply: 
(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: 
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HR 29 RFS 
(1) The District and the Navy have entered 
into contracts under sections 9(c)2 and 9(e) of the 
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-
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come effective and binding only when the Project 
has been completed and put into operation and may 
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 
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the Navy’s share of the project, may be by the Secretary, 
the District, or a third party consistent with section 6. 
(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 
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