# Brief for the United States and Respondents — City of Fresno v. California

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Brief for the United States and Respondents
- **Published:** January 1, 1963
- **Citation:** 372 U.S. 627

## Text

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Opinions below. --..-------------------7- 707770 770°"" '

Jurisdiction - -----------------------: seasaonns seeenes
Questions presented. ---.-.------------;-20007 77700077
Statutes involved. .--.---------------- Sa al Cea ae
ES cacncondccsascuescnseennessenesesseue
Summary of argument-.--.-----------------++--77797"
Argument:
I. The United States has not consented to the claims
for relief of Fresno and the other plaintiffs -- - - -

¢

“II. The claims of Fresno for declaratory relief are

barred by sovereign immunity ----------------
A. The claim for a declaration of superior
9 water rights~ = . - --------------------

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Clpnebetlny. a Lcn cnt sannestedewnSaneneneacepod-enee

CITATIONS
Cases :

Anderson vy. United States, 229 F. ee

Belknap v. Schild, 161 U.S. 10.-.------- os ekandee
Berman v. Parker, 348 U.S. 26------------------>>"
Blackmar v. Guerre, 342 U.S. 512- -----------------
‘Claridge Apartments Co. v. Commissioner, 323 U.S. 141.
Coffman v. Breeze Corps., 323 ie | hiciacaam
Holbrook Irrigation District v. Fort Lyon Canal Co., 84
. Colo. 174, 269 Pac. 574..---------------------"°
“Hough v. Porter, 51 Ore. 318, 98 Pac. 1083. .....----
Hudspeth County Conserv. & Reel. Dist. No. 1 v. Rob-
bins, 213 F.-2d 426. ...------------------4----- ;
Hurley v. Kincaid, 285 U.S. 95- - ----------------->
Hynes v. Grimes Packing Co., 337 U.S. 86-----------

Pee

. -

29 §
14
27
29
15
23

16
16

24
27

28

Ivanhoe Irrigation District v. McCracken, 357 U.S. 275.--- 12,
26, 30, 31, 35

(I)
668128—62——1

a

Casese—Continued Page
Land v. Dollar, 330 U.S. 731...-------- ee Ae 25
Larson v. Pomestic & Foreign Corp., 337 U. S. 682... 13,

14, 24, 25, 28°
Love v. United States, 108 F. 2d 43. ...--.--------- . 29
Miller v. Jennings, 243 F. 2d 157, certiorari denied,

, Sit S . Aa ewer rr re tert ror 18, 19
Minnesota v. United States, 305 U.S. 382--...-------- 14
Nevada v. United States, 279 F. 2d 699........------ 18
Ogden River Water Users’ Ass'n v. Weber Basin Water

Conservancy, 238 F. 2d 936-.--.-.----------------- 24
Pacific Live Stock Co. v. Oregon Water Board, 241 U.S.

Oe... 8... .ccnnenwehesstndcudcnadguduccesecs ... 16,19
People of the State of California v. United States, 235 F

OO. cn de dendnae Ge cenennsdceseassaccucess 16
Silvies River, In re, 199 Fed. 495--.....------------ 16
Siour Tribe v. United States, 316 U.S. 317-- “ae 30
Spanish Fork West Field Irrigation Co. v. District Court

of Salt Lake County, 99 Utah 527, 104 P. 2d 353. 16
State ex rel. Hinckley v. Sixth Judicial District Court,

53 Nev. 343, 1 P. 2d 105_-__- eR me]
Swigart v. Baker, 229 U.S. 187...-.---------------- 30, 31
United States v. Gerlach Live Stock Co., 339 U.S. 725-- 12,

13, 26, 35
United States v. San Francisco, 310 U.S. 16..--.----- 30
United States v. Shaw, 309 U.S. 495. ---..---------- 14
Washington State Sugar Co. v. Sheppard, 186 Fed. 233 16
Williams v. Fanning, 332 U.S. 490... .----------- : 28
Work v. Louisiana, 269 U.S. 250_. - -- ee ae 28-29
Yuma County Water Users’ Ass’n v. Schlecht, 262

Se ME a obec eke keh SSSE meecadesesanesancet 30, 31

Constitution: Article [V, Section “Nat ta nee 29-30

Statutes: os

Act of July 10, 1952, 66 Stat. 560, 43 USC. e06!)..... -9,

10, 12, 13, 14, 15, 16, 18, 20, 21, 22, 25

Act of October 14, 1949, 63 Stat. 852... ---.- Bae 26

Federal Tort Claims Act, 28 U.S.C.-2401..)- ~~. -- P 15
Reclamation Act of 1902, 32 Stat. 390, 43 U. S.C. 383,

ee eee ep rprr ae oe 2c dae w -O; 23, 21

Reclamation Act of 1902, 32 Stat. 389, 43 U. S.C. 461,
0 NS|. BREE eee bee ; 30

‘

Stat utes—Continued
Reclamation Act of 1902, 32 Stat. 388, as amended,
43 U.S.C. 391, Section 1. SLES PAE
Reclamation Project Act of 1939, 53 Stat. 1193, as
amended, 43 U.S.C. 485h(e¢), Section 9(¢)

3,

28, 31, 35

Town Site Act of 1906, 34 Stat. 116, 483 U.S.C. 567,
Section 4 _- eases

yay ee so cacenteencceua

Miscellaneous:

Hearings, American River Basin Project, House Sub-
committee on Trrigation and Reclamation, SIst
Cong., Ist Sess.

Hearings before Senate Subcommittee on Appropria-
tions, Interior Department, Sist Cong., 2d Sess

H. Doc. No. 146, 80th Cong., Ist Sess

H. Doc. No. 416, S4th Cong., 2d Sess., 1 Central
Valley Project Documents —

S. 18, S2d Cong., Ist Sess P :

S. Rep. No. 755, 82d Cong., Ist Sess 17,

2 Wiel, Water Rights in the Western States (3d ed )

31

34
16
Is, 2]
16, 19

Gu the Supreme Court of the United States

OcroBER TERM, 1962

Ciry OF FRESNO, PETITIONER
v. is
SraTE OF CALIFORNIA, UNITED STATES Or AMERICA,
. ET AL. ;

+

it

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT
OF APPLALS FOR THE NINTIF CIRCUIT

BRIEF FOR THE UNITED STATES AND H. P. DUGAN, EDWIN F.
SULLIVAN, AND JAMES M. INGLES, RESPONDENTS

OPINIONS BELOW

The opinion and supplemental opinion of the dis-
trict court (R. VII: 22-282, 287-293) are reported ;
sub nom. Rank v. Krug (United States) at 142 F.
Supp. 1-198. The opinion of the court of appeals,
as corrected, and its opinion denying the City of
Fresno’s petition for rehearing CR. VUT: 364-394,
397-400) are reported sub nom. California v. Rank
at 293 F. 2d 340. Its opinion on rehearing (R. Wilt:
400) is reported at 307 F*. 2d 96.

(1)

2
JURISDICTION

The judgment of the court of appeals was entered on
March 31, 1961 (R. VII: 395). The City of Fresno’s
timely petition for rehearing was denied on August 14,
1961 (R. VII: 396). On November 3, 196], Mr. Jus-
tice Douglas extended the time for the City of Fresno
to file a petition for a writ of certiorari to December 12,
1961 (R. VIT: 404), The petition was filed on Decem-
ber 11, 1961, and was granted on April 2, 1962 (R. VII:
405). ‘The jurisdiction of this Court is invoked under
28 U.S.C, 1254(1).

QUESTIONS PRESENTED

-1. Whether Congress, by consenting to joinder of the
United States in suits for general adjuication of all
water rights in a river system, waived its sovereign im-
munity with respect to a suit against it for an order
enjoining the operation of a federal reclamation proj-
ect or directing it,to construct certain public works.

2. Whether a suit for a judicial declaration (1) that
the plaintiff has. water rights superior to those of the
United States, and (2) that the plaintiff is entitled to
receive water from the United States at a certain price,
is a suit against the United States and hence, if not con-
sented to, barred by sovereign immunity.

STATUTES INVOLVED

Section 208(a) of the Act of July 10, 1952, 66 Stat.
560, 43 U.S.C. 666, provides :

208. (a) Consent is hereby given to join the

United States as a defendant in any suit (1) for

the adjudication of rights to the use of water ofa

river system or other source, or (2) for the ad-

ministration of such rights, where it appears that

/ 3

the United States is the owner of or is in the
process of acquiring water rights by* appropria-
tion under State law, by purchase, by exchange,
or otherwise, and the United States is a necessary
party to such suit. The United States, when a
party to any such suit, shall (1) be deemed to
have waived any right to plead that the State
laws are inapplicable or that the United States is
not amenable thereto by reason of its sovereignty,
and (2) shall be subject to the judgments, or-
ders, and decrees of the court having jurisdic-
tion, and may obtain review thereof, in the
same manner and to the same extent as a private
individual under like circiimstances: Provided,
That no judgment for costs shall be entered
against the United States in any such suit.

(b) Summons or other process in any such
suit shall be served upon the Attorney General or
his designated representative.

(c) Nothing in this Act shall be construed
as authorizing the joinder of the United States
in any suit or controversy in the Supreme
Court of the Tnited States involving the mght
of States to the use of the water of any inter-
state stream.

* * * #* *

Section 9(¢) of the Reclamation Project Act of
August 4, 1939, 53 Stat. 1193, as amended, 43 U.S.C.
485h(¢), provides in relevant part:

(¢) The Secretary is authorized to enter into
contracts to furnish water for municipal water,
supply or miscellaneous purposes: Providéd,
That any such contract, either (1) shall require
repayment to the United States, over a period
of not to exceed forty years from the year in

4

which water is first delivered for the use of the
contracting party, with interest not exceeding

- the rate of 314 per centum per annul if the

Secretary determines an interest charge to be
proper, of an appropriate share as determined
by the Secretary of that part of the construc-

tion costs allocated by him to municipal water -

supply or other miscellaneous purposes; or (2

shall be for such periods, not to. exceed forty
years, and at such rates as in the Secretary's
judgment will produce revenues at least suffi-
cient to cover an appropriate share of the an-
nual operation and magntenance cost and an
appropriate share of such fixed charges as the.
Secretary deems proper, and shall require the
payment of said rates each year in advance
of delivery of water for said year. Any sale
of electric power or lease of power privileges,
made by the Secretary in connection with the
operation of any project or division of a pro)-
ect, shall be for such, periods, not. to exceed
forty years, and at such rates as in his judg-
mént will produce power revenues at least suffi-
cient to cover an appropriate share of the an-
nual operation and. maintenance cost, interest
on an appropriate share of the construction
investment at not less than 3 per centum. per
annum, and such other fixed charges as the
Secretary deems proper * * *. No contract
relating to municipal water supply or miscel-
laneous purposes or to electric power or power
privileges ‘shall be made unless, in the judg-

. iN a)
5 star

meént of the Secretary, it will not impair the
efficiency of the project fdr irrigation purposes.

STATEMENT

This case arises out of the same litigation as Dugan
v. Rank, No. 31, this term. As sét out more fully in our
brief in that ease, the suit from which both cases stem
was instituted by a number of users of water from the -
San Joaquin River (1) to enjoin certain local offi-
cials ofi the Bureau of Reélamation (the individual
respondents herein)’ from interfering, by means of
the Bur sau-administered Central Valley Project, with
‘their water rights, or (2) to obtain a ‘physical solu-
tion’? that would provide them with water, to meet
their needs. Subsequently the United States (over
“its objection that it was immune from suit) was joined
-as a necessary party defendant, and: petitioner herein,
the City of Fresno, intervened, as a ara plaintiff.’
The district court entered a decreesen joining the fur-
ther operation of the Project in such a way as to
‘interfere with plaintiffs’ rights, unless a specified
“physical solution’ should ,be undertaken by the gov-
ernment. The court of appeals dismissed as to the
United States and affirmed as to the officials. It 1s
the officials’ petition for review of that ruling that is
involved in No. 31. ;
The present case relates primarily to certain ancil-
lary relief sought by Fresno in connection. with its
alleged need for an additional water supply for mu-
nicipal purposes. In its com aint, Fresno requested,
"The Secretary of the ae Commissioner of the
Bureau of Reclamition were also named in the complaint but
were not served and did not appear. — Cp ;

668128—62—- 2 if

be

6

a

in addition to the in june tive relief deseribed above, (1)
a declaratiofi that it has water’ rights whieh are su-
perior to those of the United States and which inust
therefore be satisfied before the United States diverts
any water from | the’ area, and (2) a declaration that
it is entitled to receive Project water from the United
States at the same rate charged for water delivered
for irrigation purposes ($3. DO per acre-foot for Class
I water and $1.50 per acte-foot for Class II water*),
rather than the rate of up to $10.00 per acre-foot pro-
posed to be charged for municipal water by the De- |
partment of the Interior. fee ec
/ The district court, concluded (R. VII: 270) that
Fresno “is entitled to a declaratory judgment that its
_ Tights for domestic and municipal purposes are supe-
‘rior to any right of the United States to divert water
beyond the watershed or county of origin”; and that,
while Fresno is “not.presently in a position to enforce
its rights” because it has not constructed any diver-
sionary or conduit works or reservoirs, “ [ijf, as, and
‘when the City of Fresno isin a position to take and.
receive the water, it will then be sufficient time to
enforce that right by an appropriate” decree under the
provisions of Section 2202 of Title 28, United States
Code.””* The court’s conclusions of law and judgment
‘provide that, upon constructing the necessary works,
Fresno will be entitled to an appropriate injunction

* Class I water is water for which a firm supply is contracted,
and Class’ II water is additional water that is made available
-(R. VIT: 270). ,

’ 8 This section provides for further relief in- ‘Federal Declara-
tory Judgment Act proceedings.

™~

~~

\
against the. Uniied States (R. IIT: 956-9: 57, 1014-
1O17Y. The dist ri et court also concluded \(R. VIL:
271) that F reyno i

in-Untitled to a declaratory Judgment that iiny
charge ‘for water which may be’ made by the
United States should be reasonable. Reason-
ablen¢ss, in light of the facts and the Federal’
Reel: mation Act and the Statutes of California,
requires that such—charges. should be no more
thansthe Irrigation Districts are charged from
time to time for Class [ water.

- The court} of appeals set aside the judgment of the
district cou “insofar as it relates to the terms upon
which the City of Fresno is entitled to receive water
from the United States at Friant Dam” (R. VII:
394). With respect to Fresno’s claim of a right to
receive -water at a ceftain rate the court stated (R.
mic 381) :

In negotiating and contrac otlnur for the delivery
of water from Friant Dam, defendant offici als
were acting within the scope of their statutory
authority and were ¢arr ying out the duties im-
posed upon them by their official positions. It
is their administrative function to determine the
rates at which water shall be delivered. It ean-
not be said that their statutory authority is
limited to the making of such determinations as
the courts may ‘find to be Teasonable. ‘The
complaint of Fresno in this regard is a com-
plaint against the United States and this dis-
pute may yot be entertained judicially without
a waiver of sovereign immunity on the part of
‘the U hited States.

32,

8

With respect -to the district court’s conclusion that
Fresno had water rights superior to those of the
United States, the court below found it unnecessary
to decide that question because, in any event (R. VIT:
383) :

. Fresno has * * * no vested right to command
the services of the United States in receiving its
waters. The terms upon which the United
States is willing to act in this respect remain an
administrative decision which it is w.thin the
authority of the defendant officials to make.

In denying Fresno’s petition for rehearing, the
court elaborated upon the latter holding by stating
that, to the extent Fresno claimed rights to the natural
flow of the river superior to those ” the — States
‘(R. VIT: 399) :

Tf and when such rights have been established
in aceordance with state law, Fresno may be
able effectively to protest the impounding of
waters by these defendants in contravention of
such rights. But this is speculation upon future
events and future issues and decision must
await the occurrence and the dispute.

However, the court assumed that what Fresno was
claiming was a right to Project water. As to that, the
court stated (R. VIT: 399-400) :

If Fresno is to have such water or is to enjoy
the benefits of Friant storage or the delivery
service of the United States, the terms upon
which it may do so are not\(for the reasons ex-
pressed in our opinion) appropriate issues in

this action against the individual officers of the
. bureau.*

~

SUMMARY OF ARGUMENT
1

The United States has not waived its immnnity
from a suit where, as here, the relief sought is an
injunction against the operation of a federal reelama-
tion project or, alternatively, a directi@s to construct
certain public works. Section 8 of the Reclamation
Act of 1902 was not such a waiver. The provision
of that section that the Secretary of the Interior

*A contract for the provision of Project water to Fresno has
recently been executed between the City and the United States.
It provides that each year the United States will deliver water
from Friant Dam to Fresno at a graduated rate of increase
from 5,000 acre-feet the first year to a maximum of 60,000 acre-
feet annually at the end of 29 years; each year Fresno is to be
advised of the rate of payment for that year, “but in no event
shall the rate so announced be in excess of Ten Dollars ($10)
per acre-foot” (para. 3(a)). It also provides:

12. (a) Nothing in this contract shall be construed as
affecting the rights of the parties to or concerned in that
_certain action entitled (State of California, United States
of America, et al. v. Rank, et al. (No. 15540) now on
appeal in the Circuit Court of the United States in and
for the Ninth Circuit.

(b) In the event any of the provisions of this contract
shall be®contrary to any issue as finally decreed in said
State of California, United States of America, ef al., v.
Rank, et al., then this agreement shall be amended to com-
ply with the said final decree: Provided, however, That
in any event the City shall be entitled to the amount of
water specified in Article 3 hereof or such amount as
may -be decteed in State of California, United States of
America, et_al. v. Rank, et o7., whichever amount is the

larger.

10°

shall proceed in conformity with state water-rights
law means only that state law defines the property
interests that must be acquired if and when the gov-
ernment exercises its paramount power of eminent
domain.

Nor did Section 208(a) of the Act of July 10, 1952,
constitute such a waiver. Congress there consented
to the joinder of the United States in suits “for the
adjudication of rights to the use of water of a river
system or other source, or * * * for the administra-
tion of such rights.’’ As the legislative history of
this provision demonstrates, it refers to a quasi-public
proceeding, familiar in the law of western States,
for the general adjudication of the reciprocal water
rights of all claimants in an entire river system.

In enacting Section 208(a), Congress was at pains
to disclaim any purpose of allowing it to be used to
interefere with the operation of reclamation projects.
Furthermore, the present suit is not of the type con-
templated by Section 208(a) for the reasons (1) that
not all claimants to the water supply involved have
been joined, (2) no determination of the. rights of
each claimant as against each other claimant. was
sought or granted, and (3) the suit does not embrace
an entire river system. Since the United States has
not consented’to this suit, it is barred by sovereign
immunity. ,

aoe ¢ |

Fresno’s claims for judicial declarations (1) that it
has certain additional water rights superior to those
of the United States, and (2) that it is entitled to

il

receive such water from the United States at a given
price, are barred by sovereign nmmunity. Such
declarations of rights as against the United States
operate directly against the sovereign; they cannot be
prosecuted without its consent.

Fresno’s claim of a right to receive water at a
given price is based on the fact that the price pro-
posed to be charged for municipal water is higher
than that charged irrigators. Such a differential has
been expressly authorized by, Congress, which pro-
vided that municipalities may be charged interest
(which irrigators are not) and tkat they must pay an
“appropriate share” of project costs. Moreover,
Congress has been kept fully aware of the Secretary
of the Interior’s policy of charging municipalities
higher rates than irrigators. In view of the fact that

the prime purpose of the reclamation laws and proj- .

ects is to promote irrigation, neither the congressional
authorization of this differential nor its implementa-
tion by the Secretary is unreasonable.

ARGUMENT

I. THE UNITED STATES HAS NOT CONSENTED TO THE.

CLAIMS FOR RELIEF OF FRESNO AND THE OTHER PLAIN-

TIFFS |

Although it also made certain special claims for
relief which we discuss later in this brief,’ the City
of Fresno sought the same relief as that sought by
the other plaintiffs in this proceeding and granted
by the district court—an injunction against the opera-
tion of the federally constructed and maintained Cen-

tral Valley Project, unless the government should

* See pp. 22-36, infra.

~

ea
undertake a “physical solution” consisting of the con-
struction of specified public works. For the reasons
set forth in detail in our brief in Dugan v. Rank, No.
31, this claim for relief is barred by sovereign immu-
nity, and the district court was without jurisdiction to
entertain it.

Fresno urges, however, that the United States has
waived its sovereign immunity, by virtue either of
Section 8: of the Reclamation Act of 1902, 32 Stat.
390, 43 U.S/C. 383 (Fresno Br. 122-123), or of See-
tion 208(a) of the Act of July 10, 1952, 66 Stat. 560,
43 U.S.C. 666 (Fresno Br. 116-121). The court
below was clearly correct in holding that neither of
these Acts of Congress constituted a consent by the
United States to this suit (R. VII: 372, 376; sce also
R. VII: 385).

There is no basis whatever for inferring a waiver of
immunity from Sectior’8 of the Reclamation Act of
1902, which provides that the Seeretary of the Inte-
rior ‘‘shall proceed in conformity”? with state laws re-
lating to ‘the control, appropriation, use, or distribu-
tion of water used in irrigation, or any vested right ac-
quired thereunder.’’ As this Court held in Ivanhoe
Irrigation District v. McCracken, 357 U.S, 275, 291,
that provision means simply that state law defines the
property interests that must be acquired if and when
the government exercises its paramount power of emi-
nent domain. See Pet. Br., Dugan v. Rank, No, 31,
p. 26, n. 12; see also R. VIT: 385. Nor did any mem-
ber of this Court suggest the contrary in United States
v. Gerlach Live Stock Co., 339 U.S. 725, as Fresno

13

eontends (Fresno .Br. 122). Both the Court and Mr.
Justice Douglas, in his separate opinion, read Seetion
8 as assuming that the United States had waived its
immunity with respect to a suit for damages for a
taking of state-detined property interests, 339° U.S.
at 739, 757, 758, but there is nothing in eithey opinion
in that case te suppert an assertion that the govern-
ment waived its immunity from judicial interference
with the administration of the Central Valley Project.
See Larson v. Domestic & Foreign Corp, 337 U.S.
682, 703.°
Section 208(4) of the 1952 Net, sapra, provides im
relevant part that )
Consent is hereby viven te join the Uiited
States as a defendant im any suit (1) for the
adjudication of rights to the use of Water of a
river system or other source, or (2) for the
administration of such rights, where it appears
that the United States is the owner of or is in
the process of acquiring water rights by appro-

priation under State Taw, by purchase, by ex- .

change, or otherwise, and the United States isa
necessary party to sueh suit. * * *
The court of appeals, after detaded consideration,
rejected the contention of Fresno and other plointiffs
that this provision constitutes a waiver of severeien
immunity with respect to the present smut. ORAVEE:
372-376). Its ruling, we submit, is plainly correct.
Préliminarily we nete that this Court has lone
adhered to the view that it should gnet extend the

waiver of sovereign immunity more breadiv than has

* See p. Lb. fa fre.

668128—462-—-8

=

14

been directed by the Congress.”” United States v.
Shaw, 309°U.S. 495, 502; Belknap v. Schild, 161 U.S.
10, 16; Minnesota v. Unitéd States, 305 U.S. 382, 387.
And while the Court suggested in Larson v. Domestic:
_& Foreign Corp., 337 U.S. 682, that perhaps sovereign
immunity should be given relatively limited scope in
relation to suits for damages (337 U.S. at 703-704), it
emphasized that
[ijt is a far different matter to permit a court
to exercise its compulsive powers to restrain the
Government from acting, or to compel it to act.
There are the strongest reasons of prifilié policy
for the rule that such relief cannot be had
against the sovereign. The Government, as rep-
resentative of the ¢ommunity as a whole, cannot
be stopped in its tracks by any plaintiff who
presents a disputed question of property or
contract right.
So here, especially where a suit for damages under
the Tueker Act was availah! fe to plaintiffs (see Pet.
Br., Dugan v. Rank, No. 31, pp. 9,31), there is no
occasion to broaden the waiver in Section 208(a).
Furthermore, Section 208(a) was not enacted until
almost five vears after this suit was instituted in 1947, |
and the government was not brought into the case in
alleged pursuance of this provision until 1953, after
most of the evidence in the case had been received
(see Pet. Br.. Digan v. Rank, No. 31, pp. 9, 11).
Under the circumstances, we submit that Section
208(a) cotild not govern this suit. As the Court has
pointed out, “Retroactivity, even where permissible,
is not favored, except upon the clearest mandate.”’,

~

~

15

Claridge Apartments Co. Vv. Commissioner, 323 U.S.
141, 164. Where Congress has wished to waive sov-

ereign immunity retroactively, it has done so in no

uneertain terms. See Federal Tort Claims Act, 28

U.S.C. 2401. However, neither expressly nor im-—

pliedly does Section 208(a)*provide for the joinder
of the United States; in suits instituted before its
enactment—let, alone ‘in suits in’ which most of the
evidence had already been taken.

The clearest reason for thy nonapplieability of See-
tion 208(a) to this ease—and the ‘reason on which the
court below based its ruling that the United States
had not consented to this action—is that Section
208(a) was intended to apply to a wholly different
kind of suit. The court of appeals covered the matter
suecinetly CR. VIP: 373) :

There can be little doubt as to the type of
suit Congress had in mind. It was not a pri-
vate dispute between certain water users as to
their conflicting rights to the use of waters of
a stream system, rather, it was the quasi-public
proceeding which in the kaw of westetm waters
is known as a “general adjudication”? of a
stream system: one in which the rights of all
claimants on-a stream svstem, as hetween them-
selves, are ascertained and officially stated.

The most notable characteristies of such a suit, which
is an action sui generis, are (1) that all known claim-
ants to the water supply involved must be joined,
(2) that the rights of each of them as against each
of the others must be determined by the final decree,
and (3) that it embrace an entire river, stream or

16

other such system. See, e.g., Pacific Live Stock Co.
‘vy. Oregon Water Board, 241 U.S. 440, 447-449; Hol-
brook Irrigation District v. Fort Lyon Canal Co., 84
Colo. 174, 195, 269 Pac. 574, 582; State ex rel. Hinck-
ley v. Sixth Judicial District Court, 53 Nev. 343, 352,
1 P. 2d 105, 106; Hough v. Porter, 51 Ove. 318, 439,
98 Pac. 1083, 1109; Spanish Fork West Field Irriga-
tion Co. v. District Court of Salt Lake County, 99
Utah 527, 536, 104 P..2d 353, 357; People of the State
of California v. United States, 235 F. 2d 647, 663 °
(C.A. 9); Washington State Sugar Co. v. Sheppard,
186 Fed. 233, 235-236 (D. Idaho); Jn re Silvies River,
199 Fed. 495, 503 (D. Ore.). See also 2 Wiel, Water
Rights in the Western States (3d ed.), pp. 1120-1125.
That Section 208(a), in speaking of a suit “for
the adjudication of rights to the use of water of a |
river system or other source,”’ was referring to a very
specifi¢ and well-known kind of action in western
water law is fully confirmed by its legislative history.
In explaining the type of suit contemplated by this,
provision, the Senate Report on the bill (S. 18, 82d
Congress) quoted as follows from this Court’s de-
cisign in Pacific Live Stock Co. vy. Oregon Water
‘Board, supra, 241 U.S. at 447-48:
_ All claimants are required to appear and prove
their claims; no one can refuse without forfeit-
ing his claim, and all have the same relation to
the proceeding. It is intended to be universal
and to result in a complete ascertainment of all
existing rights, to the end; First, that the
waters may be distributed, under publie super-
vision, among the lawful claithants according

17

to theit respective tights without needless waste

or controversy; Second, that the rights of all

may be evidenced by appropriate certificates

and publie records, always .readily accessible,

, and may not be dependent upon the testimony

of witnesses with its recognized infirmities and
uncertainties; and, Third, that the amount of
surplus or unclaimed water, if any, may be
ascertained and rendered available to intending
appropriators.

S. Rep. No. 755, 82d Cong., Ist Sess. 5 (1951). Sena-
tor McCarran, the sporfsor of the bill and Chairman
of the Senate Jiidiciary Committee. stated that the
provision ‘tis not intended to be used for any other
purpose than to allow the United States to, be joined
in a suit wherein it is necessary to adjudicate all of
the rights of various owners on a given: stream. This
is so because unless all of the parties owning or in
the process of acquiring water rights ona particular
stream can be joined as parties defendant, any subse-
quent decree would be of little value.”” Letter to Sen.
Magnuson, set forth in S. Rep. No. 755, supra, at p. 9.
It is particularly relevant to note that Congress.
-disavowed any purpose of having Section 208(a)
used to interfere with the administration of federal
projects. Thus, when Senator Magnuson raised the
question whether the provision could be used to dela;
or block a multiple-purpose development such as the
then-pending proposed Hells Canyon project on the
Snake River, Senator McCarran replied: “tS. 18 is
not ‘intended to be used for the purpose of obstruct-
ing the project of which you speak or any similar

>

18

projects * * *.”’ Letter to Sen. Magnuson, supra,
S. Rep. No. 755 at p.9. And the Judiciary Committee
in its report affirmed its desire “to repudiate any such
intent,” stating (S. Rep. No. 755, supra, at p. 6):
Where reclamation projects have been author-
ized for the benefit of the water users and the
publie generally, they should proceed under the
law as it exists at the — time and should
the Government have reason to need the water
of any particular user on a stream, that water
should be obtained by condemnation proceed-
ings as is already provided for by law. * * *

The holding of the court below that Section 208(a)
is limited to such a general adjudication of rights in
a stream system follows the uniform view of the ap- °
pellate courts that have passed on the provision. In |
Miller v. Jennings, 243 F, 2d 157 (CA. 5), certiorari
denied, 355 U.S . 827, 885, the court affirmed dismissal
where, as here, an ‘attempt was made by a suit against
Bureau of Reclamation officials to establish claimed
priorities as against the Elephant Butte Reclamation
project. The same result was reached by the court
helow in Nevada v. United States, 279 F. 2d 699
(C.A. 9), where it affirmed dismissal of a suit for a
declaratory judgment that the United States must
secure State permission to develop water from wells
at a naval installation.

The court below was clearly correct in holding that
the present suit was not a “general adjudication”
suit such as that contemplated by Section 208(a)
(R. VII: 374376). In the first place, not all of
the known claimants to the water supply involved

~

19.

have been joined im ‘this. action CR. VII: 379). While
the plaintiffs numbered” 14 individwala, one private
corporation, one municipal corporation (Fresno )swnd
one public corporation (the Tranquillity [rrigation
District) (R. VII: 50), the district court found that
‘there are many hundreds of owners of property
along the river and within the boundary lines of the
alluvial cone’? (R. VII: 224); indeed, the district
court listed more than 200 affected land holdings: in
its findings (R. TET: 900, 914, 919). There’ is _cer-
tainly no basis for holding that all of these owners
are now bound by*the district court’s findings.

Fresno atteinpts to circumvent the absence of these
owners by characterizing this Suit as a ‘élass ae-
tion.’ This argument, which was rejected by the
Fifth Cireuit in Miller v. Jennings, supra, 243 FB. 2d
at 160, was properly rejected by the court below
€R. VIL: 375). The theory of class action’ is wholly
antithetical, to the concept of a ‘*general adjudica-
tion’’ suit, ih whie ‘h “[{ajll claimants are required to,
appear and prove their clainis, ” Pace ife Live Stock
Co. v. Oregon WwW ater Board, supra, 241 U.S. at 447.
As the. court below ‘pointed out, even if all claimants
of riparian and overlying rights could be treated as a
class, claimants of appropriative or prescriptive rights
could not, for the extent of such rights *tmust depend
upon the circumstances of cach /individual case’
(R. VII: 375); accordingly, as ‘the court found,
oe claimants individually must be before the
court”? (ibid.). See, also, 2 Wiel, Water Rights im
the Western States (3d ed.), p. 1120.

°

Nor is it any ‘answer to ask the Court, as Fresno
does (Fresno Br. 134), now “to join other parties.
Fresno made the same request of the court below,
which correctly pointed out that’ such joinder could

y
not “convert this action into a. general | adjudication,

of a stream system” (R. VII: 399 ).. An . entirely
different kind of. case. was made on the pleadings and
the proof; the joining of additional parties would

require a new trial upon new pleadings.and new evi-
~ dence. We submit that it is now entirely too’ late

to remedy the nonjoinder objection to considering this
proceeding as a “‘genera] adjudication” suit.

¢. The second reason this suit.cannot be viewed as
ot ? Paar re ae ;
_ one for a general adjudication ‘of rights in a stream

system as contemplated by Section 208(a) is that it
did not, nor was it, designed to, determine the rights
of each claimant against each of the others (R. VII:
375-376). The district court recognized as much:
‘This ts not a-suit wherein the plaintiffe seek to estab-
lish for each of them their separate rights’ inter sese
to a given quantity of water as state themselves or
as afainst one.another” (R. VIT: 27; emphasis in
original) ; and, again: “this suit is ha a case where
the waiter users, either riparian or averlving, are seek-
ing to enforce any separate or several rights among
themselves or against. one another, or to have a given
amount of water deel ared and adjudicate be the
right for use on a specified tract of land”’ (R. VII:
220). Nor did the district court make the slightest
attempt to adjudicate the rights of any owner in

_relation to any other, except to find that Fresno has
certain rights *‘prior and.superior to any right of the

4”

21

United States” (R. IIT: 1016-1017; see pp. 22-23,
infra). As the court below pointed out (R. VIL:
376), there is not even an adjudication of the rights,
as between-one another, of the partigs who were pres: .
ent and subject to the jurisdiction of the court.

The third reason this case is not a Section 208(a)
suit for a general adjudication is that it is concerned,
not with “the use pf water of a river system or other
souree,” but with the use of water in only one section
of the San Joaquin River. The difference is not it
technical one... A general adjudication suit must em-
brace an entire system of water from one souree be-
cause “by reason of the interlocking of athjudicated |
rights on any stream system, any order or action
affecting one right affects all such rights’? (S. Rep.
No. 755, 82d Cong., Ist Sess., p. 5). Nor is it even
arguable (Fresno Br. 130) that Friant Dam is an
‘other source”’ within the meaning of Section 208(a).
The other sou ees to which a genera! adjudication suit
might relate are such actual sources of water as lakes
and swamps; the waters at issue in this case have their
source in the San Joaquin system, not in Friant Dam.
Moreover, this suit has at all times been concerned
with the rights to San Joaquin River water that
existed prior to the construction of Friant Dam.

In ‘sum, as the court below held, the United States
has not consented to the litigation against it of the
claims of Fresno and the other plaintiffs for injunc-

tive relief. Section 8 of the Reclamation Act of 1902
does not constitute such a consent, having no other

effect than to leave to state Jaw the definition of the
interests the United States must take if it proceeds by

“

22

eminent domain. Sectidn 208(a) of the Act of
July 10, 1952, is not a waiver of immunity from the
present suit, because that provision is concerned only
with a suit for the general adjudication of rights to
the use of water in a river system; the present case
is not such a suit because not all known claimants
to the water supply involved have been joined, no
determination of the rights of each claimant against
the others was sought or made, and the suit does not
embrace an entire river system.~ In the absence of
the consent of the United States, these claims are
barred by sovereign immunity for the reasons set
forth in our brief in Dugan v. Rank, No. 31.

If, THE CLAIMS OF FRESNO FOR DECLARATORY RELIEF ARE
BARRED BY SOVEREIGN IMMUNITY be

In addition to the claims Fresno made in common
with the other plaintiffs in this proceeding (and which
are discussed in our brief in Dugan v. Rank, No. 31,
and at pp. 11-22, supra), it also sought, and was
granted by the district court, judicial declarations (1)
that it had certain additional water rights superior to
those of the United States, and (2) that it was en-
titled to contract for water from the Central Valley
Project at a certain price. The court of appeals
properly held that these claims for relief were barred
by sovereign immunity (R. VII: 381, 382; see also
R. VII: 399-400).

A. THE CLAIM FOR A DECLARATION OF SUPERIOR WATER RIGHTS

By an amendment to its complaint, filed in August

1954, Fresno sought a declaratory judgment settling
&

23

its Water-rights as Against the United States CR. LI:
5-520), The distriet court, in its tinal judgment,
declared that “the rights of the City of Fresno to
secure surlace Water for domestic and municipal pur-
poses from the San Joaquin River,” over and above
the rights it has in common with the other plaintiffs,
“are prior and superior to any right of the United
States * * * to divert and take any water of the San
Joaquin River, or store the same for diversion, by
nfvans of Friant Dam, or Friant-Kern canal, or other-
wise, out of the Counties of Fresno and, or Madera,
and or out of the watershed or area wherein the
water of the San Joaquin River originates’? (R. ILL:
1016-1017). The court of appeals held that, since
the United States had not consented to this suit (R.
VII; 376) and since the conduct of its officials in rela-
tion to Fresno’s claim for additional water had been
within their authority (R. VII: 383), the claim was
barred by sovereign immunity (see also R. VII: -
9-400)" This ruiing wag correct,

*This ruling assumed, with reason, that Fresno ciaimed a
right to water from the Central Valley Project (R. VII: 399).
The court also ruled that, if Fresno’s claim was rather to water
from the natural flow of the San Joaquin, that claim was pre-
mature, since Fresno had not perfected such rights in a -cord-
ance with the proredures established by state law (R. VIL: 299).
In so ruling, the court was following the settled doctrine that
the declaratory judgment procedure “may not be made the

medium for securing an advisory opinion in a controversy which
has not arisen” (Coffman v. Breeze Corpa., 325 US. 316, 524).

“a

24

The relief sought and granted would operate
directly upon the United States. In Larson v. Do-
mestic & Foreign Corp., 337 U.S. 682, 689, n. 9, this
Court noted that the plaintiff there had sought declar-
atory relief as to the validity of a ‘sale to which it
and the United States were parties. The Court
observed that the request for such relief was “‘even
more clearly directed at the sovereign” than the in-
junctive relief there sought, gnd it eoncluded that
“fs]uch a declaration of the ri@ts of the respondent
vis-a-vis the United States would clearly have been
beyond the court’s jurisdiction” (ibid.). See also
‘Ogden River Water Users’ Ass’n. v. Weber Basin
Water Conservancy, 238 F. 2d 936 (C.A. 10); Huds-
peth County Conserv. & Reel. Dist. No. 1v. Robbins, 213
F. 2d 425, 432 (C.A. 5). So here, where a declara-
tion of Fresno’s water rights as against the United
States was both sought and granted, the suit was for
relief against the sovereign and was barred by the
sovereign’s immunity.

The district court also ruled that ‘‘upon the City
of Fresno constructing the necessary transportation
works to bring such supplemental supply of surface
water of the San Joaquin River to said City of
Fresno,” it ‘‘will be entitled to an injunction restrain-
ing and enjoining”’ the United States (and the other
defendants) ‘‘from diverting, or storing for diversion,
by means of Friant Dam, or the Friant-Kern canal, or
otherwise, any San Joaquin River water out of the
watershed and the Counties of Fresno and/or Madera, ,
or out of the area wherein the water of the San J oa-

25

quin River originates, until said supplemental water
requirements of said City of Fresno are met * * *”
(R. IT: 1017-1018). Like the injunctive branch of
the relief sought by and granted to all of the plaintiffs
(see Pet. Br., Dugan v. Rank, No. 31, pp. 19-20),
such a decree would obviously operate directly against
the United States and interfere with its administra-
tion of a federal reclamation project. ‘Such relief
is plainly beyond the power of the court to grant as
against the unconsenting sovereign. See Larson v.
Domestic & Foreign Corp., supra, 337 U.S. at 704;
Land v. Dollar, 330 U.S. 731, 738.

Nor can the United States be said to have consented
to the prosecution of Fresno’s claim for declaratory
relief by virtue of Section 208(a) of the Act of
July 10, 1952, discussed at pp. 13-21, supra. Fresno’s
claim was by no stretch of the imagination a «"‘lasi-
publi¢ suit for a general adjudication of water rights
in a river system, such as Section 208(a) contem-
plates; Fresno sought nothing more, and. the district
court granted it nothing more, than a narrow declara-
tion of its own rights as against those of one other
claimant, the United States. As with the claims of
all of the plaintiffs, this claim of Fresno’s fell short
of a Section 208(a) suit by (1) the absence of known
claimants, (2) the lack of a determination of all the
claimants’ rights as among one another, and (3) the
failure to ernbrace more than a limited stretch of a
river. Accordingly, there is no basis for finding any
such consent on the part of the sovereign as would
waive its immunity from suit. fe

26

Since Frgsno’s claim is plainly barred by sovereign
immunity, there is no occasion to inquire into the
merits of the City’s contention that it has water

rights superior to those of the United States-and-it

was for that reason that the court below expressly
declined to rule on Fresno’s claim (R. VII: 383).
There is another, even more cogent, reason for not
inquiring in‘o the merits of that claim—namely, that,
whatever Fresno’s rights may be, they are clearly
subordinate to the4ederal power of eminent domain.
‘As we have pointed out (see Pet. Br., Dugan Vv.
Rank, No. 31, pp. 32, 42-46; see also pp. 12-13, su pra),
not only did the court below sustain the govern-
ment’s comprehensive power to take whatever water
rights it needed for the Central Valley Project (R. VII:
384-387), but this Court has made, it clear that the
only restrictions on that power are that the govern-
ment must respect state definitions of property taken
and that it must pay just compensation therefor.
See Ivanhoe Irrigation District v. McCracken, 339
U.S. 275, 291; United States v. Gerlach Live Stock
Co.; 339 U.S. 725" Thus, if any legitimate rights"

*Kresno argues that the Act of Oct. 14, 1949, 63 Stat. 852,
853, which calls upon the Secretary of the Interior to “make
recommendations [to Congress] for the use of water in accord
with State water laws, including but~not limited to such laws
giving priority to the counties and areas of origin for present
and future needs,” limits the federal power of eminent domain
(Fresno Br. 142). It is clear from the context of this provi-
sion (which was adopted at the suggestion of the Bureau of
Reclamation, Hearings, American River Basin Project, House
Subcommittee on Irrigation and Reclamation, 81st Cong., 1st

Sess., pp. 35-36) that it refers to projects thereafter under-
taken, not those already operative, such as the portion of the

27

of Fresno, as established in consonance with state law,
have been or may in the future be interfered with by
the federal government's operation of the Project, the
City’s remedy is a Tucker Act suit. “The a vilability
of that remedy provides Fresno. with all of the con-
stitutional protection to which it ‘s entitled. Marley
v. Kincaid, 285 U.S. 95, 104; Berman \, Parker, 348
U.S. 26; see also Pet. Br. Dugan v. Rank, No. 31,
p. 31.

B. THE CLAIM: POR A DECLARATION OF AS RIGIEE TO WTR VE |
CERTAIN PRICE

Fresno also sought a judicial declaration that it
was entitled to receive water from the Central Valley
Project at the same price as that charged for irriga-
tion water, rather than at the higher rate the De
partment of the Interior proposed to charge for water
for domestic and municipal purposes. Pursuant to
this request, the district court concluded that Fresno
was_ entitled to a declaratory judgment that ‘any
charge’ for water which may be made by the United
States should be reasonable” and that “TrJeasonable-
ness, in light of the facts andthe Federal Reelama-
tion Act and the Statutes of California, requires that
such charges should be no more than the Irrigation
Districts are charged from time to time for Class |
water” (R. VII: 271). The court below held that
since the respondent officials were acting within their
Central Valley Project at issue here. ‘Furthermore, as we have”
shown (Pet. Br., Dugan v. Rank, No.-31, pp. 4-46), Congress
was kept aware of the manner in which the United States was

affecting existing rights by the operation of Friant Dam, and
Congress fully ratified that conduct.

2)

authority in determining the rates at which Project
water should! be sold, ‘*[t]he complaint of Fresno in
this regard is a complaint against the United States
and this dispute may not be entertained judicially
without a waiver of sovereign immunity on the part
of the United States” (R. VII: 381), and, as the
court had held (R. VIL: 386), there had been ne such
waiver. This ruling, too, was correct.

Just as Fresno’s claim for a judicial declaration of
superior water rights is ‘clearly directed at the sov-
ereign,’” Larson V. Domestic & Foreign Corp., supra,
397 U.S. 682, 689, n. 9 (see Pp. 24, supra), the
City’s claim for a judicial declaration of a right to
contract for Project water 1s similarly a claim di-
rectly against the United States and similarly ‘would
clearly have been beyond the court’s jurisdiction” »
(ibid.). Moreover, the enforcement of such a right
would, of course, require affirmative action by the
United States through its officials—namely, the execu-
tion of a contract for the delivery of water to Fresno
at the lower rate. Since this relief would thus “re-’
quire affirmative action by the sovereign” and “eom--
pel it to act,” Larson V. Domestic & Foreign Corp.,
supra, 337 U.S, at 691, n. 11, 704, it is barred by
sovereign immunity.” Nor is this conclusion avoided

* Similarly, since ‘affirmative action would be required of the
Secretary of the Interior, who is the officer empowered by stat-
ute to execute such contracts, Reclamation Project Act of 1959,
Section 9c), 53 Stat. 1195, as amended, 43 U.S.C. sSdhic),
the Secretary (who was not served and did not appear, see
note 1, p. 5, supra) is clearly an indispensable party under
Hynex vy. Grimes Packing Co. 337 U.S. 86, and Williams v.
Fanning, 332 U.S. 490. Fresno’s reliance on Work v. Low-

29

by the fact that the relief! was granted in terms of a
“right’?; sovereign immunity eannot be evaded by
eouching relief sought in terms ofa declaration of a
right to enter Inte a covtract containing certain terms,
rather than by directing a mandatory injunction to
compel government officers to contract on those terms.
Love Vv. United States, 108 F. 2d 43, 50 (CLA. 8):
Anderson Vv. United States, 229 F. 2d 675 (CLA. 5);
ef. Blackmar v. Guerre, 342 US. 512, 515-516.

Fresno seems to argue (Fresno Br. 92-115) that,
the doctrine of sovereign immunity does not apply
here beeause it would be beyond the statutory (and
: perhaps oven constitutional) authority of the respond-
ent officials to charge Fresno more for municipal
water than it charges other users for irrigation water.
The court below disposed of any such contention thus
(R. VIE: 3st):

li negotiating and contracting for the deliv-
ery of water from Friant Dam, defendant offi-
eials were acting within the seope of their statu-
tory authority and were carrying out the duties:
imposed upon them by their official positions.

Tt is their adnunistrative function to determine

the rates at which water shall be delivered. * * *

Fresno has come forward with no adequate basis for
challenging that conclusion.

“Any constitutional attack on the federal charges

for the use pf Project water, as implemented by the

respondent officfals, is wide of the mark. Section 3,

ixiana, 269 U.S, 250 (Fresno Br. 99), points up the aecessity
of joinder of the Seeretary, since that case Was a muandamus
-proceeding against the Secretary of the Interior.

30 : :

Article IV, of the Constitution imposes exclusive and

_ unlimited authority upon Congress ‘to dispose of and
make all needful Rules and Regulations respecting
the Territory. or other Property belonging to the
United States,’’,see Siour Tribe v. United States, 316
U.S. 317, 324; United States v. San Francisco, 310
U.S. 16, 29. The power thus granted to manage fed-
eral reclamation facilities plainly embraces the au-
thority to regulate charges for the benefits resulting
from their operation. Irrespective of where title to
the water stored and distributed by the government’s
reclamation facilities lies (see Fresno Br, 96-98 ),
their operation for the benefit of the public bestows a
federal privilege, and “the power of the Federal Gov-
ernment to impose reasonable conditions on the use
of * * * federal privileges’ is, as_ this Court ob-
served in Ivanhoe Irrigation District v. McCracken,
357 U.S. 275, 295, “beyond challenge * * *.”’ See
also Yuma County Water Users’ Ass’n Vv. Schlecht,
962 U.S. 138, 145-146; Swigart v. Baker, 229 U.S.
187. As we show below, in view of the prime purpose
of the reclamation legislation to promote irrigation, it
was entirely reasonable for Congress to determine
‘that users of reclamation project water for irrigation
should pay a lower rate than users for municipal,
industrial or power purposes.

The original act authorizing the construction and
operation of federal reclamation projects, the Reela-
mation Act of 1902, Section 4, $9 Stat. 389, 43 U.S.C.

. 461, provided that charges for irrigation water ‘‘shall
- be determined with a view of returning to the recla-

ee 31

mation fund the estimated cost of construction of the
project, and shall be apportioned equitably.”” "This
Court, in Swigart v. Baker, supra, 229 U.S, at 197-199,
held that the cost of maintaining the project was also
properly taken. into account in determining — the
charges for irrigation water. In that case the Court
also recognized that interest on the amount of con-
struction costs that have not been returned to the recla-
mation fund is not charged users of irrigation water.
229 U.S. at 197; see also Ivanhoe Irrigation District
v. McCracken, supra, 357 U.S, at 295.

The first provision for the supplying of water from
reclamation projects to others than irrigators was
Section 4 of the Town Site Act of 1906, 34 Stat. 116,
43 U.S.C. 567, which authorized the Secretary of the
Interior to provide ‘towns or cities on or in the im-
mediate vicinity of irrigation projects” with project
water and to fix charges for such water which ‘shall
not be less nor upon terms more favorable ‘than those
fixed * * * for the irrigation project from which the
water is taken.”’ This implicit authority to charge

‘municipalities higher rates than those paid by irri-

gators was made explicit by Section 9(¢) of the Recla-
mation Project Act of 1939, 53 Stat. 1193, as
amended, 43 U.S.C. 485h(¢). That section authorized
the Secretary ‘‘to enter into contracts to furnish

As this Court has recognized, the “estimated cost of con-
struction” cannot. usually ‘be determined until the constriction
of the project is virtually complete, so that water charges must
be based on tentative estimates, subject to whatever *djust-
ments later circumstances dictate. See /vanhoe Irrigation Dis-
trict v. McCracken, supra, 357 US. at 2985; see\ also wma
County Water Users’ Ass'n v. Nchlecht, 262 U.S. 138, 143-144.

&
o

—_—_—_—- —
ee _-

9

32

“a

water for ‘municipal supply or miscellaneous pur-

poses,” and to require payment,

: eee a) ?e** with interest not exceeding
the rate of. 3' per centum ’per arinum if the
Secretary determines an interest charge to be
proper, of an appropriate share as determined
by the Secretary of that part of the construc-
tion costs allocated by—him_to municipal water
supply or other miscellanem:.. purposes; Or
+ ) ie such rates as in the Secretary's
judgment will produce revenues at least suffi-
cient to cover an appropriate share of the an-
nual operation and maintenanee cost and an
appropriate share of such fixed charges as the
Secretary deems proper ¥ —<

Thus, not only was the Secretary authorized to include

a charge for municipalities that is not included for

irrigators—i.e., interest (see Pp. 31, supra)—but he was

given broad discretion to determine what would be
an “appropriate share” of construction costssor oper-
ation and maintenance costs fora municipality to pay.

Congress, moreover, has been fully aware that the

Secretary has implemented this statutory authoriza-

tion to charge municipalities higher rates for project

water than irrigators. For example, in the Senate
hearings on the 1951 Interior Department appropria-

11 With respect to the sale of electric power or the lease of
power privileges, the Secrevury was authorized to fix “such
rate¢ as in his judgment will produce power revennes at least
_ sufficient to cover an appropriate share of the annual operation
and maintenance .cost, interest on an appropriate share of the
construction investment at not less than 3 per centum per an-
num, and such other fixed, charges as ‘the «Secretary deems
proper * * *.” 2 Pie Se

33 :

tions, the subject of the utilization of project water

for municipal purposes came Up, and the subcommittee
chairman, Senator Hayden, said, “Usually the rate of
the municipality for water is higher than the rate for
irrigation. 1 think they probably would be charged
more for municipal purposes—it is more valuable to
them.” Hearings before the Senate Sabeomunittee on
Appropriations, Interior Department, 1951, SIst
Cong., 2d Sess., p. 1114. At those same hearings the
Department submitted a statement as to the basis of
charges for municipal water, which made it clear that
such charges are set in accordance “with the particular

circumstances under which municipal water has been ~

provided,” not/-in relation to the charges made for
irrigation water (td. at p. 1115):

Among other things, these “varying ¢irenm-
stances have involved existence of prior munici-
pal water rights * * * the point of delivery of
the water * * *, the purpose for which water
was used within the municipal limits (for irri-
cation, domestic, municipal or industrial uses),
the extent to which the municipality contributes
to the project by transfer of Jands or other
rights ** *, the type, extent, and cost of facil-
ities necessary to make municipal water avail-
able provided by the United States, who con-
structed and paid for the construction and oper-
ation and maintenance of specified facilities, the
degree of permanency of the municipal water
right involved, the choice of contract as to re-
payment or water service, and many other spe-
cial local considerations.

4

34

Furthermore, Congres§ was expressly advised, as
early as 1946, as to the basis for the Sgcretary’s deter-
mination of the appropriate charge for municipal
water in the Central Valley —— (t.e., $10.00 per
acre-foot *) +s : a

It is estimated that, under full operation of the
authorized project, gross annual revenues from
the sale of municipal and industrial water [at
this. rate} will amount to $680,000, whereof:
$119,070 will'be necessary to support operation,
maintenance, and replacement costs, and $560,930
will be av vailable‘for application to capital costs.

This will be sufficient. to repay the allocated
«costs during the project repayment period, plus
3 percent interest’ on the unpaid balance, and to
meet: an appropriate sliare of other fixed costs
of the project water supply.

H. Doe. No.-146, 80th Cong., Ist Sess., p. 19, quoted
in 1 Central Valley Project Documents, H. Doe: No.
416, 84th Cong., 2d Sess., pp. 595-596. Corigress was
also advised. as to the reasonableness of this rate (td.
! ~
, at p. 595): , 9
oa This rate may be judged by comparison with
prevailing rates in areas adjacent to those
where sales are contemplated. The principal
alternative source sells water-on a rate sched-
ule varying from $52.27 to $95.83 per acre-foot
within“its district, depending on the amount
used and exclusive of meter service charges.
This water is treated, but the cost of treatment
will not exceed $10 per acre-foot. * * *

2 See pp. 6, 9, n. 4, supra.

35

In short, in this, as in all aspects of the Central
Valley Project, Congress was kept fully informed,
and, with full knowledge of what had been done and
_ what was planned, Congress continued to appropriate
funds and to authorize expansion of the: project by
adding new elements (see Pet. Br:, Dugan v.-Rank,
No. 31, pp. 4446). 6
The prime purpose of the reclamation laws and of
the projects authorized and constructed under, them
has been the promotion of irrigation. See, ¢.g., Recla-
ation Act of. 1902, Section 1, 32 Stat. 388, as
/amended, 43 U.S.C. 391; United States v. Gerlach Live
Stock Co., 339 U.S. 725, 731-742. Other purposes—
navigation, flood -control, salinity prevention, recrea-
tion and fish and wildlife preservation—and other
uses of project water, such as for domestic; muni-
cipal, industrial and power purposes, are clearly inci-
dental to that central aim. Indeed, the Reclamation
Project Act of 1939, 53 Stat..1193, as amended, 43
U.S.C. 485h(¢), provides that *fnJo contract relat-
ing to municipal water supply or miscellaneous pur-
poses or to electric power or power privileges shall
be made unless, in the judgment of the Secret tary, it
will not per the efficiency of the project for irriga-
tion purposes.” Accordingly, it cannot be said that
Congress ‘was acting unreasonably when it dete ‘rmined >
that irrigation should receive a substantial subsidy in
the form of non-payment of interest, while other uses’
should recéive dittle or no such bounty. See Ivanhoe
Trrigation District v. McCracken, supra, 357 U.S. at |
295-296. Fresno’s claim that it should receive the

36

same subsidy, rather than being expected to pay an
‘appropriate share’’ of the cost of bringing it muwi-
cipal water, is without the slightest warrant in either
the Constitution or any Act of Congress.

CONCLUSION

For the foregoing reasons, the judgment below
should be reversed insofar as it sustained the clauns
that the City of Fresno pressed in common with the
other plaintiffs in this proceeding (see pp. 11-22,
supra) and affirmed insofar as it directed the dismis-
sal of those claims that the City of Fresno alone
advanced (see pp. 22-36, supra).
Respectfully submitted,
ArcuipaLtp Cox, . nat
Solicitor General.
J. Writam Doo.irrer, .
Assistant to the Solicitor General.
Wiuuam H. Verver,
Rocer P. Margtts,
Attorneys.
DeceMBER 1962.

Os GOvtewere” Fee Be Ore tT freer

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386410_0171%3A6. Public record. Not legal advice.
