123STA T . 1311 PUBLIC LA W 111 – 11 —M A R .3 0, 200 9(i i )Asan a lter nati v et o are p a ym ent c ontract w it h the S ecretary o f the N avy d escri b ed in cla u se (i) , the Sec - retary may allow the Secretary of the Navy to satisfy all or a portion of the repayment obli g ation for construction of the P ro j ect 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 ) T he officer or agency of the State of C alifornia authori z ed by law to grant permits for the appropriation of water has granted the permits to the Bureau of R eclama- tion for the benefit of the Secretary of the Navy and the D istrict as permittees for rights to the use of water for storage and diversion as provided in this section, including approval of all re q uisite 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 U nited States any prior appropriative right the District may have to water in e x cess of the quantity deliverable to the Dis- trict 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 Dis- trict and the Secretary of the Navy. (D) The Secretary has determined that the Project has completed applicable economic, environmental, and engineering feasibility studies. (c) C OST S.— ( 1 )I NGE NE RAL .—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) O T H ER C ONTRACTS.—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) O P ERAT I ON; Y IEL D ALLOT M ENT; DELI V ER Y .— (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 regula- tions satisfactory to the Secretary of the Navy with respect to the share of the Project of the Department of the Navy. Permits.
