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 facilities the construction, operation, watershed management, and maintenance of which is authorized under section 2. (3)

Secretary

The term Secretary means the Secretary of the Interior, unless otherwise stated.

Authorization for construction of santa margarita river project

(a)

Authorization

The Secretary, acting pursuant to the Federal reclamation laws (Act of June 17, 1902; 32 Stat. 388), and Acts amendatory thereof or supplementary thereto, as far as those laws are not inconsistent 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 following conditions have occurred: (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 California authorized by law to grant permits for the appropriation of water has granted such permits to the Bureau of Reclamation for the benefit of the Department of the Navy and the District as permittees 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)The District has agreed that it will not assert against the United States any prior appropriative 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 accordance 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 become 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 engineering feasibility.

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, operation and maintenance costs of the Project that the Secretary 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 carriage of prior rights water for domestic, municipal, fish and wildlife, industrial and other beneficial purposes using Project facilities.

Operation; yield allotment; delivery

(a)

Operation

The operation of the Project, subject to a memorandum of agreement between the Secretary, 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. (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 persons

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 immediate 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 temporary contracts for the sale and delivery of the excess 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. (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 demand that water, without charge and without obligation on the part of the United States, after 30 days notice. (4)

Modification of rights and obligations

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 account 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. (2)

In-kind consideration

In lieu of monetary consideration under paragraph (1), or in addition 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 consideration: (A)Maintenance, protection, alteration, repair, improvement, or restoration (including environmental 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 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 the following: (A)The end of the 30-day period beginning on the date on which a report describing the contract and the form and quantity of the in-kind consideration is submitted by the Secretary of the Navy to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives. (B)The end of the 14-day period beginning 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.

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 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; provided, however, that for the purposes of calculating interest and determining the time when the District’s repayment obligation to the United States commences, the pumping and treatment 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 obligation of the District may be modified by an agreement between the parties.

Transfer of care, operation, and maintenance

The Secretary may transfer to the District, or a mutually 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 and maintenance of the Project. The amount of such costs shall be applied against the indebtedness of the District to the United States.

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 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.

Limitations on operation and administration

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 acquisitions, 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.

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: (1)$60,000,000 (the current estimated construction 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.

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 Congress regarding if the conditions specified in section 2(b) have been met and if so, the details of how they were met.

11.

Sunset

The authority of the Secretary to complete construction of the Project shall terminate 10 years after the date of enactment of this Act.