To amend the San Luis Rey Indian Water Rights Settlement Act, and for other purposes.

SECTION 1. AMENDMENTS RELATED TO SUPPLEMENTAL WATER SUPPLY AND FUNDING.

    (a) Supplemental Water Supply.--Section 106(a) of the San Luis Rey 
Indian Water Rights Settlement Act (Public Law 100-675; 102 Stat. 4000) 
is amended to read as follows:
    ``(a) Obligation To Arrange for Development of Water for Bands and 
Local Entities.--
            ``(1) To provide a supplemental water supply for the 
        benefit of the Bands and the local entities, subject to the 
        provisions of the settlement agreement, the Secretary shall--
                    ``(A) arrange for the development of not more than 
                16,000 acre-feet per year of supplemental water from 
                public lands within the boundaries of the State of 
                California outside the service area of the Central 
                Valley Project;
                    ``(B) obtain not more than 16,000 acre-feet per 
                year either from water conserved by the works 
                authorized in title II, or through contract with the 
                Metropolitan Water District of Southern California; or
                    ``(C) construct that portion of the works 
                authorized in title II that is necessary to conserve 
                16,000 acre-feet of water per year, and arrange to 
                deliver such water to the Bands and the local entities 
                by exchange or through contract with the Metropolitan 
                Water District of Southern California and other parties 
                with conveyance facilities.
            ``(2) Except as provided in subsection (d)(3), the right to 
        the 16,000 acre-feet of water per year provided pursuant to 
        paragraph (1) shall be held in perpetuity by the United States 
        in trust for the San Luis Rey Indian Water Authority and shall 
        be subject to the provisions of this title and of the 
        settlement agreement governing the use and disposition of 
        supplemental water. The use of such water shall not be subject 
        to the provisions of section 204. Nothing in this section or 
        any other provision of this title shall authorize the 
        construction of any new dams, reservoirs, or surface water 
        storage facilities.''.
    (b) Authorization of Appropriations.--Section 106(d) of such Act is 
amended to read as follows:
    ``(d) Cost of Developing and Delivering Water.--
            ``(1) Use of federal funds.--There are authorized to be 
        appropriated such funds as may be necessary to construct that 
        portion of the works authorized in title II that is necessary 
        to conserve 16,000 acre-feet of water per year. Neither the 
        costs of delivering supplemental water nor the costs of 
        operating, maintaining, and replacing the works necessary to 
        conserve 16,000 acre-feet of water per year once those works 
        have been constructed shall be borne by the United States, and 
        no Federal appropriations are authorized for those purposes.
            ``(2) Operation and maintenance determination.--The 
        Secretary shall determine the impact of the works constructed 
        pursuant to subsection (a)(1)(C) on the cost of operation and 
        maintenance and the existing regulating and storage capacity of 
        the All American Canal and its Coachella Branch. If the works 
        result in any added operation and maintenance costs which 
        exceed the benefits derived from increasing the regulating and 
        storage capacity of the canals to the Imperial Irrigation 
        District or the Coachella Valley Water District, the Indian 
        Water Authority and the local entities shall reimburse the 
        agency which experiences such additional costs on an annual 
        basis pursuant to the Secretary's determination.
            ``(3) Obligation to maintain conservation provided by 
        works.--The right to 16,000 acre-feet of water per year 
        obtained by the construction of the works described in 
        subsection (a)(1)(C), although perpetual in nature, is subject 
        to the works described in subsection (a)(1)(C) being 
maintained so as to continue to conserve 16,000 acre-feet of water per 
year as compared to the situation that existed prior to the 
construction of those works. The Secretary shall determine the amount 
of water so conserved by said works on an ongoing basis, and shall 
allow said water to be delivered to the Indian Water Authority and the 
local entities only to the extent that said water has actually been so 
conserved by said works.''.
    (c) Limitation on Funds.--Section 203(e)(1) of such Act is amended 
to read as follows:
            ``(1) Except as provided in section 106(d), no Federal 
        funds may be used for construction of the works described in 
        subsection (a)(1).''.
    (d) Beneficial Use in California.--Section 204(b) of such Act is 
amended to read as follows:
    ``(b) Beneficial Use in California.--
            ``(1) The water identified in subsection (a) (other than 
        that provided pursuant to section 106(a)) shall be made 
        available, subject to the approval requirement established in 
        section 203(c)(3), for consumptive use by California 
        Contractors within their service areas according to their 
        priorities under the Seven Party Agreement.
            ``(2) If the water made available under paragraph (1) is 
        used during the term of the funding agreements by a California 
        Contractor other than a Participating Contractor, or a 
        Participating Contractor in an amount in excess of its 
        proportionate share as measured by the amount of its 
        contributed funds in relation to the total contributed funds, 
        such contractor shall reimburse the Participating Contractors 
        in an amount equal to the sum of--
                    ``(A) the annualized amounts of their respective 
                contributions which funded the conservation of water so 
                used;
                    ``(B) any added costs of operation and maintenance 
                as determined in section 203(b); and
                    ``(C) related mitigation costs under section 
                203(a)(2).
            ``(3) Reimbursements made pursuant to paragraph (3) shall 
        be based on the costs each Participating Contractor incurs in 
        contributing funds, its total contribution, and the life of the 
        works.''.

Summary: Amends the San Luis Rey Indian Water Rights Settlement Act to direct the Secretary of the Interior, as an alternative by which to provide a supplemental water supply for the benefit of certain Mission Indian Bands in San Diego County, California, and the City of Escondido, California, the Escondido Mutual Water Company, and the Vista Irrigation District (local entities) to construct that portion of the All-American Canal Lining that is necessary to conserve 16,000 acre-feet of water per year and arrange to deliver such water to the Bands and such local entities by exchange or through contract with the Metropolitan Water District of Southern California and other parties with conveyance facilities.  Requires the right to such water to be held in perpetuity by the United States in trust for the San Luis Rey Indian Water Authority subject to such Act and the settlement agreement governing the use and disposition of supplemental water.  Authorizes appropriations for such construction, but prohibits Federal funding for operating, maintenance, or replacement costs.  Directs the Secretary to determine the impact of such works constructed on the cost of operation and maintenance and the existing regulating and storage capacity of the All-American Canal and its Coachella Branch. Requires, if the works result in any added operation and maintenance costs which exceed the benefits derived from increasing the regulating and storage capacity of the canals to the Imperial Irrigation District or the Coachella Valley Water District, the Indian Water Authority and the local entities shall reimburse the agency which experiences such additional costs on an annual basis pursuant to the Secretary's determination. 
States that the right to 16,000 acre-feet of water per year obtained by such construction is subject to such works being maintained so as to continue to conserve 16,000 acre-feet of water per year as compared to the situation that existed prior to the construction.  Provides for the Secretary to determine the amount of water so conserved on an ongoing basis and to allow only such water as has actually been conserved to be delivered to the Indian Water Authority and the local entities.