The Library of Congress  >  THOMAS Home  >  Committee Reports  >  Search Results

69-006

110TH CONGRESS

REPORT

HOUSE OF REPRESENTATIVES

2d Session

110-649

--SOBOBA BAND OF LUISEN.AE6O INDIANS SETTLEMENT ACT

MAY 15, 2008- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. RAHALL, from the Committee on Natural Resources, submitted the following

R E P O R T

[To accompany H.R. 4841]

[Including cost estimate of the Congressional Budget Office]

SECTION 1. SHORT TITLE.

SEC. 2. FINDINGS AND PURPOSES.

SEC. 3. DEFINITIONS.

SEC. 4. RATIFICATION OF SETTLEMENT AGREEMENT; AUTHORIZATION.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

SEC. 6. RESTORATION FUND.

SEC. 7. DEVELOPMENT FUND.

SEC. 8. WAIVERS AND RELEASES.

SEC. 9. MISCELLANEOUS PROVISIONS.

SEC. 10. EFFECTIVE DATE.

PURPOSE OF THE BILL

The purpose of H.R. 4841 is to approve, ratify, and confirm the settlement agreement entered into to resolve claims by the Soboba Band of Luiseno Indians relating to alleged interferences with the water resources of the Tribe, to authorize and direct the Secretary of the Interior to execute and perform the Settlement Agreement and related waivers, and for other purposes.

BACKGROUND AND NEED FOR LEGISLATION

The Soboba Band of Luiseno Indians (Soboba) is comprised of nearly 900 members that live on or near the Soboba Reservation, located in the western foothills of San Jacinto Mountains of Southern California about 80 miles east of Los Angeles. The Soboba Reservation was established on June 19, 1883 and encompasses about 9.2 square miles. The San Jacinto River is the major surface water feature on the Reservation. The tribe relied on the river for its agricultural needs until surface water diversions were built upstream of the river. The tribe then relied on groundwater as its primary source of water.

In the 1930s, the Metropolitan Water District of Southern California (MWD) dug a 13-mile tunnel through the San Jacinto Mountains, about 3 1/2 miles northwest of the Reservation. The tunnel was part of the Colorado River Aqueduct constructed to bring drinking water to Southern California. During construction, the tunnel pierced underground faults and fractures in the mountains that dammed large amounts of groundwater underneath the Reservation. Groundwater flooded into the tunnel drying up springs, creeks and wells on the Reservation that were fed by an underground aquifer.

Soboba sued the federal government in the Indian Claims Commission for failing to protect the Reservation's water resources in 1950 (Soboba Band of Mission Indians v. United States). The federal government settled the lawsuit in 1991 for $12,000,000. Similarly, in 2000 Soboba sued the MWD, Eastern Municipal Water District, and Lake Hemet Water District in the United States District Court, alleging that the underground tunnel built by MWD drained much of the water supply to the Soboba Reservation.

In June 2007, the tribe and water districts entered into a settlement to resolve these legal claims. Specifically, the settlement gave a final resolution of Soboba's water rights and claims and guaranteed the tribe 7,500 acre-feet per year of reduced cost water from MWD until 2035. In addition, the three water agencies combined will pay $17 million to the tribe for access to any of the tribe's unused water. The tribe, in return, has agreed to limit its water use to 4,100 acre-feet of the 9,000 acre-feet quantified allocation for 50 years.

COMMITTEE ACTION

H.R. 4841 was introduced on March 3, 2008 by Rep. Mary Bono Mack (R-CA). The bill was referred to the Committee on Natural Resources, and within the Committee to the Subcommittee on Water and Power. On March 13, 2008, the Subcommittee held a hearing on the bill.

On April 23, 2008, the Subcommittee met to mark up the bill. Subcommittee Ranking Member Cathy McMorris Rodgers (R-WA) offered an en bloc amendment that modified the bill by changing the required payment years to FY 2010 and FY 2011, since the FY 2009 budget cycle is near completion. The amendment also clarifies that the Development Fund is a `non-interest' bearing account to conform with House PAYGO rules. It was adopted by unanimous consent. The bill, as amended, was then forwarded to the Full Committee by unanimous consent.

On April 30, 2008, the Full Natural Resources Committee met to consider the bill. Rep. Cathy McMorris Rodgers offered an amendment to change the Development Fund from a `non-interest' account to a `fund' for the purpose of further meeting House PAYGO rules. It was adopted by unanimous consent. The bill as amended was then ordered favorably reported to the House of Representatives by unanimous consent.

SECTION-BY-SECTION ANALYSIS

Section 1. Short title

Section 1 provides that this act may be cited as the `Soboba Band of Luiseno Indians Act.'

Section 2. Findings and purposes

Section 2 states the findings and purposes of H.R. 4841. The findings provide historic and legal background for the Soboba Band of Luiseno Indians, including the lawsuit against Metropolitan Water District and their claims against Eastern and Lake Hemet Municipal Water Districts. The findings also outline the negotiation process and settlement conditions, including an acknowledgment from the three water districts that Soboba's water right is `superior' to all others and is quantified at 9,000 acre-feet. The purposes section outlines the intent of this legislation, including to approve, ratify, confirm and implement the settlement agreement.

Section 3. Definitions

Section 3 provides definitions for commonly used terms within the act.

Section 4. Ratification of settlement agreement; authorization

Section 4 provides that the United States ratifies and confirms the June 6, 2006 agreement and authorizes the Secretary of Interior to execute and implement the settlement agreement.

Section 5. Authorization of appropriations

Section 5 outlines the total authorized appropriations within this act. The San Jacinto Basin Restoration Fund is authorized to be appropriated $5,000,000 for fiscal years 2010 and 2011. The Soboba Band of Luiseno Indians Water Development Fund is authorized to be appropriated $5,500,000 for fiscal years 2010 and 2011. The total authorized appropriation for both funds is $21,000,000.

Section 6. Restoration fund

Section 6 establishes the Restoration Fund. The San Jacinto Basin Restoration Fund will be established within the Treasury of the United States and administered by the Secretary of the Interior. Eastern Municipal Water District must submit an expenditure plan that must be approved by the Secretary for any payment or reimbursement of costs. Eastern Municipal is also required to submit an annual report to the Secretary that describes all costs. Funds are available for use after March 1, 2012.

Section 7. Development fund

Section 7 establishes the Development Fund. The Soboba Band of Luiseno Indians Water Development Fund will be established within the Treasury of the United States to be managed and invested by the Secretary of the Interior. The Tribe may withdraw all or part of the fund, but must submit a tribal management plan that must be approved by the Secretary of the Interior. The Secretary of the Interior and the Secretary of the Treasury are not liable for the way in which monies withdrawn from the fund are spent or invested. In addition, the Tribe must submit an expenditure plan that must be approved by the Secretary for any payment or reimbursement of costs. The tribe is required to submit an annual report to the Secretary that describes all costs. No part of the funds shall be distributed on a per capita basis to tribal members. Funds are available for use after March 1, 2012.

Section 8. Waivers and releases

Section 8 outlines the tribe's waiver and release of claims against the Metropolitan Water District, the Eastern Municipal Water District, the Lake Hemet Municipal Water District and the United States. The waivers release the three districts for any and all past, present, and future claims to surface water and groundwater rights, injury and interference with surface and groundwater rights, continuing interference with surface water and groundwater rights, injury arising from water seepage into the San Jacinto Tunnel, and injury related to the water management plan. The waiver releases the United States from any and all past, present, and future claims for failure to acquire and develop reservation water rights and resources, for failure to protect reservation water rights and resources, failure of any non-federal party to fulfill the terms of the settlement agreement at anytime, and for past, present and future claims related to the negotiation of the settlement agreement.

The waiver and release for the United States will take effect when the authorized funds are appropriated.

Section 9. Miscellaneous provisions

This section outlines miscellaneous provisions regarding jurisdiction, use of water and retention of rights. Section 9 also states that nothing in this act establishes a precedent for the federal quantification or litigation of reserved water rights. Language in this section also clarifies that nothing in this act quantifies or adversely harms other tribes and the Secretary's signature to the settlement agreement does not constitute compliance with the National Environmental Policy Act.

Section 10. Effective date

Section 10 lists the necessary criteria for the waivers and releases to be effective. The deadline for the effective date is March 1, 2012. If implementation does not occur by March 1, 2012, the Settlement Agreement and this Act are null and void, and all appropriated funds revert to the general fund of the United States Treasury.

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 approve, ratify, and confirm the settlement agreement entered into to resolve claims by the Soboba Band of Luiseno Indians relating to alleged interferences with the water resources of the Tribe, to authorize and direct the Secretary of the Interior to execute and perform the Settlement Agreement and related waivers.

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. 4841--Soboba Band of Luiseno Indians Settlement Act

Summary: H.R. 4841 would approve and ratify a water rights settlement agreement among the Soboba Band of Luiseno Indians and its members, the United States, and three water districts in Riverside County, California, provided that certain conditions are met. As part of the agreement, H.R. 4841 would create two funds--the San Jacinto Basin Restoration Fund and the Soboba Band of Luiseno Indians Water Development Fund. Under the bill, money in those funds could not be spent until the agreement is approved by all parties involved and other requirements have been met.

Based on information from the Department of the Interior (DOI), CBO estimates that implementing H.R. 4841 would cost $21 million over the 2010-2011 period, assuming appropriation of the authorized amounts. Enacting the legislation would have no significant impact on direct spending and would not affect revenues.

H.R. 4841 would restrict the tribe's ability to use and lease water it receives as part of the settlement agreement, and that restriction would be an intergovernmental mandate as defined in the Unfunded Mandates Reform Act (UMRA). CBO estimates that the mandate would impose no new costs on the tribe, and therefore, the threshold established in UMRA ($68 million in 2008, adjusted annually for inflation) would not be exceeded.

H.R. 4841 contains no private-sector mandate as defined in UMRA.

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 4841 is shown in the following table. The costs of this legislation fall within budget function 450 (community and regional development). 



-------------------------------------------------------------------------------------------------------------


                                                By fiscal year, in millions of dollars--                     


                                                                                    2009 2010 2011 2012 2013 


-------------------------------------------------------------------------------------------------------------


CHANGES IN SPENDING SUBJECT TO APPROPRIATION 1                                                               


Restoration Fund:                                                                                            


Authorization Level                                                                    0    5    5    0    0 


Estimated Outlays                                                                      0    5    5    0    0 


Development Fund:                                                                                            


Authorization Level                                                                    0    6    6    0    0 


Estimated Outlays                                                                      0    0   11    0    0 


Total Changes:                                                                                               


Estimated Authorization Level                                                          0   11   11    0    0 


Estimated Outlays                                                                      0    5   16    0    0 


-------------------------------------------------------------------------------------------------------------


Basis of estimate: For this estimate, CBO assumes that H.R. 4841 will be enacted near the end of 2008 and that the amounts authorized will be appropriated each year. In 2006, the Soboba Band and three water districts in Riverside County, California, signed a settlement agreement to resolve a water rights dispute. (The water districts include the Eastern Municipal Water District, the Lake Hemet Municipal Water District, and the Metropolitan Water District.) The United States would become party to the agreement upon enactment of H.R. 4841, provided that the settlement agreement is modified to be consistent with requirements specified by the bill and other conditions are met. Based on information from DOI, CBO assumes that, in 2010, the settlement agreement will be finalized and all parties will have executed their responsibilities under the settlement.

As part of the settlement agreement, H.R. 4841 would create two funds--the San Jacinto Basin Restoration Fund (Restoration Fund) and the Soboba Band of Luiseno Indians Water Development Fund (Development Fund)--to restore water to the tribe's reservation and to ensure an adequate water supply to the San Jacinto basin area in Riverside County. Assuming appropriation of the authorized amounts, CBO estimates that implementing H.R. 4841 would cost $21 million over the 2010-2011 period.

Restoration Fund

H.R. 4841 would authorize the appropriation of $5 million a year over the 2010-2011 period for the Restoration Fund to cover a portion of the costs for the San Jacinto basin recharge project. Under the bill, the Eastern Municipal Water District would have the authority to spend monies provided in the Restoration Fund or seek reimbursement from the fund for the necessary construction activities, provided that certain conditions are met. Appropriated funds, however, could not be spent until the settlement is agreed to by all parties and certain conditions are met. Unless all conditions are met by March 1, 2012, any funds appropriated to implement H.R. 4841 would be returned to the Treasury.

According to DOI, some construction work has begun for the basin recharge project, and the Eastern Municipal Water District would likely seek reimbursement for its work soon after the settlement is finalized and funds are appropriated. Because all components of the settlement will likely be completed in 2010, CBO estimates that implementing the bill would result in spending of $5 million in both 2010 and 2011.

Development Fund

H.R. 4841 would authorize the appropriation of $5.5 million each year over the 2010-2011 period for the Development Fund to benefit the Soboba Tribe. The Secretary of the Interior would be required to invest those amounts in Treasury obligations until those funds are expended. Funds would be used to restore, rehabilitate, and maintain water and sewage infrastructure and other related development projects. Similar to the Restoration Fund, amounts in this fund could not be spent by the tribe until the settlement is finalized and certain conditions are met. Unless all conditions of the settlement are met by March 1, 2012, any funds appropriated to implement H.R. 4841 would be returned to the Treasury.

Trust funds that are held and managed in a fiduciary capacity by the federal government on behalf of Indian tribes are treated in the budget as nonfederal funds. As a result, outlays would be recorded on the budget in the year that all funds are provided to the tribe and the settlement agreement is final. Therefore, CBO estimates that this provision would result in discretionary spending of $11 million in 2011. Once the settlement is final, subsequent use of those funds by the tribe would have no further impact on the federal budget.

Estimated impact on state, local, and tribal governments: H.R. 4841 would restrict the tribe's ability to use and lease water it receives as part of the settlement agreement, and that restriction would be an intergovernmental mandate as defined in UMRA. Because the tribe has voluntarily agreed to that restriction in the settlement, CBO estimates that the mandate would impose no new costs on the tribe, and therefore, the threshold established in UMRA would not be exceeded.

Estimated impact on the private sector: H.R. 4841 contains no private-sector mandate as defined in UMRA.

Estimate prepared by: Federal Costs: Leigh Angres; Impact on State, Local, and Tribal Governments: Melissa Merrell; Impact on Private Sector: MarDestinee Perez.

Estimate approved by: Theresa Gullo, Deputy Asistant Director for Budget Analysis.

COMPLIANCE WITH PUBLIC LAW 104-4


This bill contains no unfunded mandates.

EARMARK STATEMENT


H.R. 4841 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.