SANTA MARGARITA RIVER, CALIFORNIA.

SEC. 9108. SANTA MARGARITA RIVER, CALIFORNIA.(a) Definitions.—In this section:(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 subsection (b).(3) Secretary.—The term “Secretary” means the Secretary of the Interior.(b) Authorization for Construction of Santa Margarita River Project.—(1) 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 section, may construct, operate, and maintain the Project substantially in accordance with the final feasibility report and environmental reviews for the Project and this section.(2) Conditions.—The Secretary may construct the Project only after the Secretary determines that the following conditions have occurred:(A)(i) 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 determined by the Secretary, of the actual costs of constructing, operating, and maintaining the Project.123 STAT. 1311(ii) As an alternative to a repayment contract with the Secretary of the Navy described in clause (i), 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 payment of the share of the Secretary of the Navy prior to the initiation of construction, subject to a final cost allocation as described in subsection (c).(B) The officer or agency of the State of California authorized by law to grant permits 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 permittees for rights to the use of water for storage and diversion as provided in this section, including approval of all requisite changes in points of diversion and storage, and purposes and places of use.(C)(i) 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 deliverable to the District under this section; and(II) to 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 subsection (d)(2).(ii) The agreement and waiver under clause (i) and the changes in points of diversion and storage under subparagraph (B)—(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.(D) The Secretary has determined that the Project has completed applicable economic, environmental, and engineering feasibility studies.(c) Costs.—(1) In general.—As determined by a final cost allocation 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 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.(2) Other contracts.—Notwithstanding paragraph (1), 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 beneficial purposes using Project facilities.(d) Operation; Yield Allotment; Delivery.—(1) Operation.—The Secretary, the District, or a third party (consistent with subsection (f)) 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.123 STAT. 1312(2) 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:(A) 60 percent of the yield of the Project is allotted to the Secretary of the Navy.(B) 40 percent of the yield of the Project is allotted to the District.(3) Contracts for delivery of excess water.—(A) Excess water available to other persons.—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 paragraph (2), the official may enter into temporary contracts for the sale and delivery of the excess water.(B) First right for excess water.—The first right to excess water made available under subparagraph (A) shall be given the District, if otherwise consistent with the laws of the State of California.(C) Condition of contracts.—Each contract entered into under subparagraph (A) for the sale and delivery 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.(D) 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.(4) Consideration.—(A) Deposit of funds.—(i) In general.—Amounts paid to the United States under a contract entered into under paragraph (3) shall be—(I) deposited in the special account established 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.(ii) 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 paragraph.(B) In-kind consideration.—In lieu of monetary consideration under subparagraph (A), or in addition 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—(i) maintenance, protection, alteration, repair, improvement, or restoration (including environmental restoration) of property or facilities of the Department of the Navy;(ii) construction of new facilities for the Department of the Navy;123 STAT. 1313(iii) provision of facilities for use by the Department of the Navy;(iv) facilities operation support for the Department of the Navy; and(v) provision of such other services as the Secretary of the Navy considers appropriate.(C) 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 paragraph.(D) Congressional notification.—If the in-kind consideration proposed to be provided under a contract to be entered into under paragraph (3) has a value in excess of $500,000, the contract may not be entered into until the earlier of—(i) 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 describing the contract and the form and quantity of the in-kind consideration; or(ii) the end of the 14-day period beginning on the date on which a copy of the report referred to in clause (i) is provided in an electronic medium pursuant to section 480 of title 10, United States Code.(e) Repayment Obligation of the District.—(1) Determination.—(A) In general.—Except as otherwise provided in this paragraph, the general repayment obligation 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 equitable and appropriate portions, as determined by the Secretary, of the actual costs of constructing, operating, and maintaining the Project.(B) Groundwater.—For purposes of calculating interest and determining the time when the repayment obligation of the District 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.(C) Contracts for delivery of excess water.—There shall be no repayment obligation under this subsection for water delivered to the District under a contract described in subsection (d)(3).(2) 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.(f) Transfer of Care, Operation, and Maintenance.—(1) 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—(A) satisfactory to the Secretary and the District; and123 STAT. 1314(B) 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.(2) Equitable credit.—(A) In general.—In the event of a transfer under paragraph (1), 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.(B) Application.—The amount of costs described in subparagraph (A) shall be applied against the indebtedness of the District to the United States.(g) Scope of Section.—(1) In general.—Except as otherwise provided in this section, for the purpose of this section, the laws of the State of California shall apply to the rights of the United States pertaining to the use of water under this section.(2) Limitations.—Nothing in this section—(A) 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 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 that acquisition, or through actual use or prescription or both since the date of that acquisition, if any;(B) creates any legal obligation to store any water in the Project, to the use of which the United States has those rights;(C) requires the division under this section of water to which the United States has those rights; or(D) 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.(h) 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 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 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 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.(i) 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 appropriate committees of Congress reports that describe whether the conditions specified in subsection (b)(2) have been met and if so, the manner in which the conditions were met.123 STAT. 1315(j) Authorization of Appropriations.—There is authorized to be appropriated to carry out this section—(1) $60,000,000, as adjusted to reflect the engineering costs indices for the construction cost of the Project; and(2) such sums as are necessary to operate and maintain the Project.(k) 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.