[House Report 110-503]
[From the U.S. Government Publishing Office]
110th Congress Rept. 110-503
HOUSE OF REPRESENTATIVES
1st Session Part 1
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AUTHORIZING 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
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December 19, 2007.--Ordered to be printed
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Mr. Rahall, from the Committee on Natural Resources, submitted the
following
R E P O R T
[To accompany H.R. 29]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 29) 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, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
PURPOSE OF THE BILL
The purpose of H.R. 29 is 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.
BACKGROUND AND NEED FOR LEGISLATION
During the early 1900s, agriculture and ranching developed
in the upper Santa Margarita River basin using water diverted
from the Santa Margarita River and water extracted from wells
near the river. By 1940, base flow in the river had been
reduced to such an extent that water users in the lower basin
filed a lawsuit against water users in the upper basin. The
result of this lawsuit was the ``1940 Stipulated Judgment,''
which partitioned water between the upper basin and the lower
basin. Since then, three other major lawsuits over rights to
this water have taken place, and three planned water supply
projects have failed to resolve the conflicts.
The most recent of these projects, the Santa Margarita
Project, was to use federal money to develop a two dam and
reservoir project on the river for the benefit of Fallbrook
Public Utility District and the U.S. Marine Corps Base at Camp
Pendleton. The estimated cost of the project was $22 million in
1954 dollars, or $254 million in today's dollars. The effort to
implement this project stalled in 1984 after almost twenty-two
years of study and significant state and federal agency
support.
The lack of adequate water supply poses a serious problem
for water users in the Santa Margarita River basin.
Urbanization, especially since 1970, has transformed the area
in San Diego County from large ranches to tract homes. In the
lower basin, the modest agricultural use of land and water,
primarily for citrus and avocado trees, has stayed relatively
constant. The creation of Camp Pendleton Marine Base, which
covers most of the lower basin, added a relatively small,
constant demand for water for base operations. Camp Pendleton
officials, however, are concerned that future water demands in
the lower basin could significantly increase in order to
support a major military mobilization or to provide adequate
habitat for endangered species.
One salient issue in the most recent project relates to
three water rights permits held by Bureau of Reclamation
totaling 185,000 acre-feet on the Santa Margarita River. These
permits were intended for surface water impoundment that, at
one time, Reclamation was proposing to develop. Under
California law, these permits must be perfected (be put to
beneficial use) by December 31, 2008 or the water rights may be
lost.
The proposed Santa Margarita Conjunctive Use Project
authorized by H.R. 29 provides for enhanced recharge and
recovery from the underground basin on Camp Pendleton to
provide a water supply for both Camp Pendleton and the
Fallbrook Public Utility District (the District), as resolution
of the long-standing water rights disputes between the United
States and the District. The project, as proposed, will develop
16,000 acre-feet of water annually, including Camp Pendleton's
existing perfected water rights on the Santa Margarita River.
As envisioned by the bill, 9,600 acre-feet would be used by
Camp Pendleton and 6,400 acre-feet by the District. An ongoing
feasibility study being conducted by the Bureau of Reclamation
is evaluating a reasonable range of project alternatives to
develop the water supply.
The project will provide a safe, reliable, drought- and
earthquake-proof water supply--enough for 35,000 families. The
project would improve and partially privatize the water supply
system on Camp Pendleton, which will receive better-quality
water in quantities sufficient to meet water needs up to its
ultimate planned utilization. The project also sets aside and
preserves valuable riparian and upland habitats of one of the
last free flowing rivers in California, using 1,384 acres
originally purchased for a dam and reservoir.
The proposed project authorized by H.R. 29 includes the
construction of enhanced groundwater recharge facilities that
contain a new collapsible diversion weir and 46 acres of new
recharge ponds. The enhanced recharge potential is 14,000 acre-
feet per year (af/yr), in addition to the naturally occurring
recharge. The collapsible weir will divert flows, facilitate
transport of sediments to the lower river and estuary, and
provide beach replenishment. The project will also include the
construction of eight or more new production wells, monitoring
wells, and a collection system to provide a total of 18,000 af/
yr of extraction capability. The project water will be
distributed to the existing Camp Pendleton and the District
distribution systems through construction of two pump stations
and approximately thirteen miles of transmission pipeline. The
pipeline will also connect Camp Pendleton to the regional water
delivery system for emergency supply purposes.
Major activities taking place in preparation for project
implementation include a pre-feasibility study completed by the
Bureau of Reclamation for a joint feasibility study and
Environmental Impact Report/Environmental Impact Statement
under the California Environmental Quality Act and the National
Environmental Policy Act. Funding for this effort comes from
several federal sources, including Camp Pendleton, Military
Construction, and a Reclamation Planning account, as well as
local funding contributed by the Fallbrook Public Utility
District.
Similar legislation was passed by the House of
Representatives in the 108th and 109th Congresses.
COMMITTEE ACTION
H.R. 29 was introduced on January 4, 2007 by Rep. Darrell
Issa (R-CA). The bill was referred to the Committee on Natural
Resources, and within the Committee to the Subcommittee on
Water and Power. The bill was also referred to the Committee on
Armed Services.
On October 10, 2007, the Full Natural Resources Committee
met to consider the bill. The Subcommittee on Water and Power
was discharged from further consideration of the bill, and H.R.
29 was ordered favorably reported to the House of
Representatives by unanimous consent and without amendment.
SECTION-BY-SECTION ANALYSIS
Section 1. Definitions
This section defines various terms in the bill.
Section 2. Authorization for construction of Santa Margarita River
Project
This section authorizes the Secretary of the Interior to
construct, operate, and maintain the Santa Margarita River
Project in accordance with the final feasibility report and
this Act. The Secretary may construct the Project only after
the Secretary determines that: (1) the Fallbrook Public Utility
District and the Department of the Navy have entered into
contracts to repay to the United States appropriate costs; (2)
the authorized California officer or agency has granted water
use permits to the Bureau of Reclamation; (3) the District has
agreed that it will not assert against the United States any
prior right to water in excess of the quantity deliverable
under this Act and will share water based on equal priority and
a specified ratio; and (4) the Secretary has determined that
the Project has economic, environmental, and engineering
feasibility.
It is the intent of the Committee that all environmental
and regulatory permits will be in place prior to initiating
project development. The Bureau of Reclamation is expected to
complete its feasibility report by June 2008. The draft
Environmental Impact Report/Environmental Impact Statement is
expected to be ready for public review and comment by December
2008.
Section 3. Costs
Once the project is completed, the Department of the Navy
will be responsible for project costs in proportion to its
benefit from the project as determined by the Secretary of the
Navy.
Section 4. Operation; Yield allotment; Delivery
The Secretary of the Interior, the Fallbrook Public Utility
District, or a third party may operate the project, subject to
the terms of a memorandum of agreement. Sixty percent of the
project water supply is allotted to the Navy and forty percent
is allotted to the District. Temporary water delivery contracts
may be entered into for any unused portion of the Navy's
allocation; the District is given first right to this water.
The Navy retains the right to demand the use of water after
giving 30 days notice.
In the place of monetary payment, the Secretary of the Navy
may accept in-kind consideration as deemed acceptable. In-kind
consideration valued over $500,000 must be reported to the
House of Representatives. Moneys paid to the United States
under the temporary water contracts shall be deposited into a
special account for the Department of the Navy.
Section 5. Repayment obligation of the District
This section requires the District's general repayment
obligation to be determined by the Secretary of the Interior,
consistent with the Reclamation Project Act of 1939. For
purposes of calculating interest and commencing repayment,
pumping and treatment of groundwater from the project will be
deemed equivalent to the first use of water from a water
storage project. There will be no repayment obligation for
excess water delivered to the Fallbrook Public Utility District
under Section 4 of this bill.
Section 6. Transfer of care, operation, and maintenance
The Secretary of the Interior may transfer the operation
and maintenance of the project to the District or a mutually
agreed upon third party under conditions satisfactory to all
parties, including the Secretary of the Navy, for the portion
of the project located within Camp Pendleton. If a transfer
occurs, the District will be credited for costs associated with
the Secretary's share of the project's operation and
maintenance.
Section 7. Scope of Act
This section states that 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. Four specific
provisions are included in this section that limit how this
section is to be construed with regard to water rights.
Section 8. Limitations on operation and administration
This section states that the Project shall be operated to
allow free passage of water to which the United States is
entitled, and will not be administered or operated in any way
that would impair or deplete the use of water the United States
is entitled to use under California law.
Section 9. Authorizations of appropriations
The bill authorizes an appropriation of $60 million for the
planning, design, and construction of project facilities, to be
indexed for inflation, and additional sums as necessary for
project operation and maintenance purposes.
Section 10. Reports to Congress
The Secretary of the Interior and Secretary of the Navy
will report to Congress, within one year of passage of this Act
and periodically thereafter, on whether and how conditions for
construction of the project have been met.
Section 11. Sunset
The authority of this Act will terminate 10 years after
enactment.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
of that rule provides that this requirement does not apply when
the Committee has included in its report a timely submitted
cost estimate of the bill prepared by the Director of the
Congressional Budget Office under section 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is 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.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
Office:
H.R. 29--A bill 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
Summary: H.R. 29 would authorize the Secretary of the
Interior to participate in the design, planning, and
construction of facilities to make water available from the
Santa Margarita River for domestic and military uses. The bill
would authorize the appropriation of $60 million to build the
project and such sums as are necessary to operate and maintain
it. H.R. 29 would terminate the authority to implement this
project 10 years after the date of enactment of this
legislation.
Assuming appropriation of the necessary funds, CBO
estimates that implementing H.R. 29 would cost $61 million over
the 2008-2012 period and an additional $3 million after that
period, including adjustments for anticipated inflation. If
funds were appropriated to build this project, local users
would be required to repay about 40 percent of construction
costs over a 40-year period following completion of the
project. Enacting this legislation, by itself, would not affect
direct spending or revenues.
H.R. 29 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 29 is shown in the following table.
The costs of this legislation fall within budget function 300
(natural resources and environment).
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By fiscal year, in millions of dollars--
------------------------------------------------------
2008 2009 2010 2011 2012
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level............................ 0 6 19 19 20
Estimated Outlays........................................ 0 5 17 19 20
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Basis of estimate: Based on historical spending patterns of
similar projects, CBO estimates that implementing H.R. 29 would
cost $61 million over the 2008-2012 period and an additional $3
million after that period, including adjustments for
anticipated inflation. For this estimate, CBO assumes that H.R.
29 will be enacted before the end of calendar year 2008 and
that the necessary amounts will be appropriated over the 2009-
2013 period.
H.R. 29 would authorize the Bureau of Reclamation to
construct a water recharge and recovery system that would
benefit the Fallbrook Public Utility District and the Marine
Corps Base at Camp Pendleton in California. The feasibility
study for this project is in the early stages of development
and will not be completed until 2008. For this estimate, CBO
assumes that construction would begin in 2009 and would be
completed in 2013. This estimate includes $64 million for
construction costs--the $60 million that would be authorized by
the bill plus adjustments for inflation, which also would be
authorized by the bill.
Since the scope of the project is unclear, CBO cannot
estimate the amount of funding needed for operations and
maintenance. Any funds appropriated for operations and
maintenance would be offset by payments to the Treasury from
the district, except for those costs allocated to Camp
Pendleton. CBO expects that money would not be appropriated for
this purpose until after 2012. The bureau has the authority to
transfer the operations and maintenance responsibilities for
the project to the district or another entity if an acceptable
arrangement can be established.
After the project is constructed and once water is made
available, the district would begin repaying its share of the
capital costs of this project. Based on information from the
bureau, CBO expects that the district would be responsible for
repaying about $26 million over the 40-year period following
construction. Any such collections would be credited to the
budget on an offsetting receipt (a credit against direct
spending). A change in direct spending cannot be credited to
H.R. 29, however, because such receipts are contingent upon
future appropriation actions to construct the project.
Intergovernmental and private-sector impact: H.R. 29
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. Enacting this bill would benefit the
Fallbrook Public Utility District, and any costs that it might
incur in association with the authorized project would be
incurred voluntarily.
Estimate prepared by: Federal costs: Tyler Kruzich; Impact
on state, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
EARMARK STATEMENT
H.R. 29 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e) or 9(f) of rule XXI.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing
law.