# Omnibus Public Land Management Act of 2009/Title X
## Subtitle A—San Joaquin River Restoration Settlement
### PART I—SAN JOAQUIN RIVER RESTORATION SETTLEMENT ACT
#### SEC. 10001. SHORT TITLE.

    This part may be cited as the `San Joaquin River Restoration Settlement Act'.

#### SEC. 10002. PURPOSE.

    The purpose of this part is to authorize implementation of the Settlement.

#### SEC. 10003. DEFINITIONS.

    In this part:
       (1) The terms `Friant Division long-term contractors', `Interim Flows', `Restoration Flows', `Recovered Water Account', `Restoration Goal', and `Water Management Goal' have the meanings given the terms in the Settlement.
       (2) The term `Secretary' means the Secretary of the Interior.
       (3) The term `Settlement' means the Stipulation of Settlement dated September 13, 2006, in the litigation entitled Natural Resources Defense Council, et al. v. Kirk Rodgers, et al., United States District Court, Eastern District of California, No. CIV. S-88-1658-LKK/GGH.

#### SEC. 10004. IMPLEMENTATION OF SETTLEMENT.

    (a) In General—
       The Secretary of the Interior is hereby authorized and directed to implement the terms and conditions of the Settlement in cooperation with the State of California, including the following measures as these measures are prescribed in the Settlement:
       (1) Design and construct channel and structural improvements as described in paragraph 11 of the Settlement, provided, however, that the Secretary shall not make or fund any such improvements to facilities or property of the State of California without the approval of the State of California and the State's agreement in 1 or more memoranda of understanding to participate where appropriate.
       (2) Modify Friant Dam operations so as to provide Restoration Flows and Interim Flows.
       (3) Acquire water, water rights, or options to acquire water as described in paragraph 13 of the Settlement, provided, however, such acquisitions shall only be made from willing sellers and not through eminent domain.
       (4) Implement the terms and conditions of paragraph 16 of the Settlement related to recirculation, recapture, reuse, exchange, or transfer of water released for Restoration Flows or Interim Flows, for the purpose of accomplishing the Water Management Goal of the Settlement, subject to—
          (A) applicable provisions of California water law;
          (B) the Secretary's use of Central Valley Project facilities to make Project water (other than water released from Friant Dam pursuant to the Settlement) and water acquired through transfers available to existing south-of-Delta Central Valley Project contractors; and
          (C) the Secretary's performance of the Agreement of November 24, 1986, between the United States of America and the Department of Water Resources of the State of California for the coordinated operation of the Central Valley Project and the State Water Project as authorized by Congress in section 2(d) of the Act of August 26, 1937 (50 Stat. 850, 100 Stat. 3051), including any agreement to resolve conflicts arising from said Agreement.
       (5) Develop and implement the Recovered Water Account as specified in paragraph 16(b) of the Settlement, including the pricing and payment crediting provisions described in paragraph 16(b)(3) of the Settlement, provided that all other provisions of Federal reclamation law shall remain applicable.
    (b) Agreements—
       (1) AGREEMENTS WITH THE STATE—
          In order to facilitate or expedite implementation of the Settlement, the Secretary is authorized and directed to enter into appropriate agreements, including cost-sharing agreements, with the State of California.
       (2) OTHER AGREEMENTS—
          The Secretary is authorized to enter into contracts, memoranda of understanding, financial assistance agreements, cost sharing agreements, and other appropriate agreements with State, tribal, and local governmental agencies, and with private parties, including agreements related to construction, improvement, and operation and maintenance of facilities, subject to any terms and conditions that the Secretary deems necessary to achieve the purposes of the Settlement.
    (c) Acceptance and Expenditure of Non-Federal Funds—
       The Secretary is authorized to accept and expend non-Federal funds in order to facilitate implementation of the Settlement.
    (d) Mitigation of Impacts—
       Prior to the implementation of decisions or agreements to construct, improve, operate, or maintain facilities that the Secretary determines are needed to implement the Settlement, the Secretary shall identify—
       (1) the impacts associated with such actions; and
       (2) the measures which shall be implemented to mitigate impacts on adjacent and downstream water users and landowners.
    (e) Design and Engineering Studies—
       The Secretary is authorized to conduct any design or engineering studies that are necessary to implement the Settlement.
    (f) Effect on Contract Water Allocations—
       Except as otherwise provided in this section, the implementation of the Settlement and the reintroduction of California Central Valley Spring Run Chinook salmon pursuant to the Settlement and section 10011, shall not result in the involuntary reduction in contract water allocations to Central Valley Project long-term contractors, other than Friant Division long-term contractors.
    (g) Effect on Existing Water Contracts—
       Except as provided in the Settlement and this part, nothing in this part shall modify or amend the rights and obligations of the parties to any existing water service, repayment, purchase, or exchange contract.
    (h) Interim Flows—
       (1) STUDY REQUIRED—
          Prior to releasing any Interim Flows under the Settlement, the Secretary shall prepare an analysis in compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), including at a minimum—
          (A) an analysis of channel conveyance capacities and potential for levee or groundwater seepage;
          (B) a description of the associated seepage monitoring program;
          (C) an evaluation of—
             (i) possible impacts associated with the release of Interim Flows; and
             (ii) mitigation measures for those impacts that are determined to be significant;
          (D) a description of the associated flow monitoring program; and
          (E) an analysis of the likely Federal costs, if any, of any fish screens, fish bypass facilities, fish salvage facilities, and related operations on the San Joaquin River south of the confluence with the Merced River required under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) as a result of the Interim Flows.
       (2) CONDITIONS FOR RELEASE—
          The Secretary is authorized to release Interim Flows to the extent that such flows would not—
          (A) impede or delay completion of the measures specified in Paragraph 11(a) of the Settlement; or
          (B) exceed existing downstream channel capacities.
       (3) SEEPAGE IMPACTS—
          The Secretary shall reduce Interim Flows to the extent necessary to address any material adverse impacts to third parties from groundwater seepage caused by such flows that the Secretary identifies based on the monitoring program of the Secretary.
       (4) TEMPORARY FISH BARRIER PROGRAM—
          The Secretary, in consultation with the California Department of Fish and Game, shall evaluate the effectiveness of the Hills Ferry barrier in preventing the unintended upstream migration of anadromous fish in the San Joaquin River and any false migratory pathways. If that evaluation determines that any such migration past the barrier is caused by the introduction of the Interim Flows and that the presence of such fish will result in the imposition of additional regulatory actions against third parties, the Secretary is authorized to assist the Department of Fish and Game in making improvements to the barrier. From funding made available in accordance with section 10009, if third parties along the San Joaquin River south of its confluence with the Merced River are required to install fish screens or fish bypass facilities due to the release of Interim Flows in order to comply with the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), the Secretary shall bear the costs of the installation of such screens or facilities if such costs would be borne by the Federal Government under section 10009(a)(3), except to the extent that such costs are already or are further willingly borne by the State of California or by the third parties.
    (i) Funding Availability—
       (1) IN GENERAL—
          Funds shall be collected in the San Joaquin River Restoration Fund through October 1, 2019, and thereafter, with substantial amounts available through October 1, 2019, pursuant to section 10009 for implementation of the Settlement and parts I and III, including—
          (A) $88,000,000, to be available without further appropriation pursuant to section 10009(c)(2);
          (B) additional amounts authorized to be appropriated, including the charges required under section 10007 and an estimated $20,000,000 from the CVP Restoration Fund pursuant to section 10009(b)(2); and
          (C) an aggregate commitment of at least $200,000,000 by the State of California.
       (2) ADDITIONAL AMOUNTS—
          Substantial additional amounts from the San Joaquin River Restoration Fund shall become available without further appropriation after October 1, 2019, pursuant to section 10009(c)(2).
       (3) EFFECT OF SUBSECTION—
          Nothing in this subsection limits the availability of funds authorized for appropriation pursuant to section 10009(b) or 10203(c).
    (j) San Joaquin River Exchange Contract—
       Subject to section 10006(b), nothing in this part shall modify or amend the rights and obligations under the Purchase Contract between Miller and Lux and the United States and the Second Amended Exchange Contract between the United States, Department of the Interior, Bureau of Reclamation and Central California Irrigation District, San Luis Canal Company, Firebaugh Canal Water District and Columbia Canal Company.

#### SEC. 10005. ACQUISITION AND DISPOSAL OF PROPERTY; TITLE TO FACILITIES.

    (a) Title to Facilities—
       Unless acquired pursuant to subsection (b), title to any facility or facilities, stream channel, levees, or other real property modified or improved in the course of implementing the Settlement authorized by this part, and title to any modifications or improvements of such facility or facilities, stream channel, levees, or other real property—
       (1) shall remain in the owner of the property; and
       (2) shall not be transferred to the United States on account of such modifications or improvements.
    (b) Acquisition of Property—
       (1) IN GENERAL—
          The Secretary is authorized to acquire through purchase from willing sellers any property, interests in property, or options to acquire real property needed to implement the Settlement authorized by this part.
       (2) APPLICABLE LAW—
          The Secretary is authorized, but not required, to exercise all of the authorities provided in section 2 of the Act of August 26, 1937 (50 Stat. 844, chapter 832), to carry out the measures authorized in this section and section 10004.
    (c) Disposal of Property—
       (1) IN GENERAL—
          Upon the Secretary's determination that retention of title to property or interests in property acquired pursuant to this part is no longer needed to be held by the United States for the furtherance of the Settlement, the Secretary is authorized to dispose of such property or interest in property on such terms and conditions as the Secretary deems appropriate and in the best interest of the United States, including possible transfer of such property to the State of California.
       (2) RIGHT OF FIRST REFUSAL—
          In the event the Secretary determines that property acquired pursuant to this part through the exercise of its eminent domain authority is no longer necessary for implementation of the Settlement, the Secretary shall provide a right of first refusal to the property owner from whom the property was initially acquired, or his or her successor in interest, on the same terms and conditions as the property is being offered to other parties.
       (3) DISPOSITION OF PROCEEDS—
          Proceeds from the disposal by sale or transfer of any such property or interests in such property shall be deposited in the fund established by section 10009(c).
    (d) Groundwater Bank—
       Nothing in this part authorizes the Secretary to operate a groundwater bank along or adjacent to the San Joaquin River upstream of the confluence with the Merced River, and any such groundwater bank shall be operated by a non-Federal entity.

#### SEC. 10006. COMPLIANCE WITH APPLICABLE LAW.

    (a) Applicable Law—
       (1) IN GENERAL—
          In undertaking the measures authorized by this part, the Secretary and the Secretary of Commerce shall comply with all applicable Federal and State laws, rules, and regulations, including the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), as necessary.
       (2) ENVIRONMENTAL REVIEWS—
          The Secretary and the Secretary of Commerce are authorized and directed to initiate and expeditiously complete applicable environmental reviews and consultations as may be necessary to effectuate the purposes of the Settlement.
    (b) Effect on State Law—
       Nothing in this part shall preempt State law or modify any existing obligation of the United States under Federal reclamation law to operate the Central Valley Project in conformity with State law.
    (c) Use of Funds for Environmental Reviews—
       (1) DEFINITION OF ENVIRONMENTAL REVIEW—
          For purposes of this subsection, the term `environmental review' includes any consultation and planning necessary to comply with subsection (a).
       (2) PARTICIPATION IN ENVIRONMENTAL REVIEW PROCESS—
          In undertaking the measures authorized by section 10004, and for which environmental review is required, the Secretary may provide funds made available under this part to affected Federal agencies, State agencies, local agencies, and Indian tribes if the Secretary determines that such funds are necessary to allow the Federal agencies, State agencies, local agencies, or Indian tribes to effectively participate in the environmental review process.
       (3) LIMITATION—
          Funds may be provided under paragraph (2) only to support activities that directly contribute to the implementation of the terms and conditions of the Settlement.
    (d) Nonreimbursable Funds—
       The United States' share of the costs of implementing this part shall be nonreimbursable under Federal reclamation law, provided that nothing in this subsection shall limit or be construed to limit the use of the funds assessed and collected pursuant to sections 3406(c)(1) and 3407(d)(2) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4721, 4727), for implementation of the Settlement, nor shall it be construed to limit or modify existing or future Central Valley Project ratesetting policies.

#### SEC. 10007. COMPLIANCE WITH CENTRAL VALLEY PROJECT IMPROVEMENT ACT.

    Congress hereby finds and declares that the Settlement satisfies and discharges all of the obligations of the Secretary contained in section 3406(c)(1) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4721), provided, however, that—
       (1) the Secretary shall continue to assess and collect the charges provided in section 3406(c)(1) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4721), as provided in the Settlement; and
       (2) those assessments and collections shall continue to be counted toward the requirements of the Secretary contained in section 3407(c)(2) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4726).

#### SEC. 10008. NO PRIVATE RIGHT OF ACTION.

    (a) In General—
       Nothing in this part confers upon any person or entity not a party to the Settlement a private right of action or claim for relief to interpret or enforce the provisions of this part or the Settlement.
    (b) Applicable Law—
       This section shall not alter or curtail any right of action or claim for relief under any other applicable law.

#### SEC. 10009. APPROPRIATIONS; SETTLEMENT FUND.

    (a) Implementation Costs—
       (1) IN GENERAL—
          The costs of implementing the Settlement shall be covered by payments or in-kind contributions made by Friant Division contractors and other non-Federal parties, including the funds provided in subparagraphs (A) through (D) of subsection (c)(1), estimated to total $440,000,000, of which the non-Federal payments are estimated to total $200,000,000 (at October 2006 price levels) and the amount from repaid Central Valley Project capital obligations is estimated to total $240,000,000, the additional Federal appropriation of $250,000,000 authorized pursuant to subsection (b)(1), and such additional funds authorized pursuant to subsection (b)(2); provided however, that the costs of implementing the provisions of section 10004(a)(1) shall be shared by the State of California pursuant to the terms of a memorandum of understanding executed by the State of California and the Parties to the Settlement on September 13, 2006, which includes at least $110,000,000 of State funds.
       (2) ADDITIONAL AGREEMENTS—
          (A) IN GENERAL—
             The Secretary shall enter into 1 or more agreements to fund or implement improvements on a project-by-project basis with the State of California.
          (B) REQUIREMENTS—
             Any agreements entered into under subparagraph (A) shall provide for recognition of either monetary or in-kind contributions toward the State of California's share of the cost of implementing the provisions of section 10004(a)(1).
       (3) LIMITATION—
          Except as provided in the Settlement, to the extent that costs incurred solely to implement this Settlement would not otherwise have been incurred by any entity or public or local agency or subdivision of the State of California, such costs shall not be borne by any such entity, agency, or subdivision of the State of California, unless such costs are incurred on a voluntary basis.
    (b) Authorization of Appropriations—
       (1) IN GENERAL—
          In addition to the funding provided in subsection (c), there are also authorized to be appropriated not to exceed $250,000,000 (at October 2006 price levels) to implement this part and the Settlement, to be available until expended; provided however, that the Secretary is authorized to spend such additional appropriations only in amounts equal to the amount of funds deposited in the San Joaquin River Restoration Fund (not including payments under subsection (c)(1)(B) and proceeds under subsection (c)(1)(C)), the amount of in-kind contributions, and other non-Federal payments actually committed to the implementation of this part or the Settlement.
       (2) USE OF THE CENTRAL VALLEY PROJECT RESTORATION FUND—
          The Secretary is authorized to use monies from the Central Valley Project Restoration Fund created under section 3407 of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4727) for purposes of this part in an amount not to exceed $2,000,000 (October 2006 price levels) in any fiscal year.
    (c) Fund—
       (1) IN GENERAL—
          There is hereby established within the Treasury of the United States a fund, to be known as the San Joaquin River Restoration Fund, into which the following funds shall be deposited and used solely for the purpose of implementing the Settlement except as otherwise provided in subsections (a) and (b) of section 10203:
          (A) All payments received pursuant to section 3406(c)(1) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4721).
          (B) The construction cost component (not otherwise needed to cover operation and maintenance costs) of payments made by Friant Division, Hidden Unit, and Buchanan Unit long-term contractors pursuant to long-term water service contracts or pursuant to repayment contracts, including repayment contracts executed pursuant to section 10010. The construction cost repayment obligation assigned such contractors under such contracts shall be reduced by the amount paid pursuant to this paragraph and the appropriate share of the existing Federal investment in the Central Valley Project to be recovered by the Secretary pursuant to Public Law 99-546 (100 Stat. 3050) shall be reduced by an equivalent sum.
          (C) Proceeds from the sale of water pursuant to the Settlement, or from the sale of property or interests in property as provided in section 10005.
          (D) Any non-Federal funds, including State cost-sharing funds, contributed to the United States for implementation of the Settlement, which the Secretary may expend without further appropriation for the purposes for which contributed.
       (2) AVAILABILITY—
          All funds deposited into the Fund pursuant to subparagraphs (A), (B), and (C) of paragraph (1) are authorized for appropriation to implement the Settlement and this part, in addition to the authorization provided in subsections (a) and (b) of section 10203, except that $88,000,000 of such funds are available for expenditure without further appropriation; provided that after October 1, 2019, all funds in the Fund shall be available for expenditure without further appropriation.
    (d) Limitation on Contributions—
       Payments made by long-term contractors who receive water from the Friant Division and Hidden and Buchanan Units of the Central Valley Project pursuant to sections 3406(c)(1) and 3407(d)(2) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575; 106 Stat. 4721, 4727) and payments made pursuant to paragraph 16(b)(3) of the Settlement and subsection (c)(1)(B) shall be the limitation of such entities' direct financial contribution to the Settlement, subject to the terms and conditions of paragraph 21 of the Settlement.
    (e) No Additional Expenditures Required—
       Nothing in this part shall be construed to require a Federal official to expend Federal funds not appropriated by Congress, or to seek the appropriation of additional funds by Congress, for the implementation of the Settlement.
    (f) Reach 4B—
       (1) STUDY—
          (A) IN GENERAL—
             In accordance with the Settlement and the memorandum of understanding executed pursuant to paragraph 6 of the Settlement, the Secretary shall conduct a study that specifies—
             (i) the costs of undertaking any work required under paragraph 11(a)(3) of the Settlement to increase the capacity of reach 4B prior to reinitiation of Restoration Flows;
             (ii) the impacts associated with reinitiation of such flows; and
             (iii) measures that shall be implemented to mitigate impacts.
          (B) DEADLINE—
             The study under subparagraph (A) shall be completed prior to restoration of any flows other than Interim Flows.
       (2) REPORT—
          (A) IN GENERAL—
             The Secretary shall file a report with Congress not later than 90 days after issuing a determination, as required by the Settlement, on whether to expand channel conveyance capacity to 4500 cubic feet per second in reach 4B of the San Joaquin River, or use an alternative route for pulse flows, that—
             (i) explains whether the Secretary has decided to expand Reach 4B capacity to 4500 cubic feet per second; and
             (ii) addresses the following matters:
                (I) The basis for the Secretary's determination, whether set out in environmental review documents or otherwise, as to whether the expansion of Reach 4B would be the preferable means to achieve the Restoration Goal as provided in the Settlement, including how different factors were assessed such as comparative biological and habitat benefits, comparative costs, relative availability of State cost-sharing funds, and the comparative benefits and impacts on water temperature, water supply, private property, and local and downstream flood control.
                (II) The Secretary's final cost estimate for expanding Reach 4B capacity to 4500 cubic feet per second, or any alternative route selected, as well as the alternative cost estimates provided by the State, by the Restoration Administrator, and by the other parties to the Settlement.
                (III) The Secretary's plan for funding the costs of expanding Reach 4B or any alternative route selected, whether by existing Federal funds provided under this subtitle, by non-Federal funds, by future Federal appropriations, or some combination of such sources.
          (B) DETERMINATION REQUIRED—
             The Secretary shall, to the extent feasible, make the determination in subparagraph (A) prior to undertaking any substantial construction work to increase capacity in reach 4B.
       (3) COSTS—
          If the Secretary's estimated Federal cost for expanding reach 4B in paragraph (2), in light of the Secretary's funding plan set out in that paragraph, would exceed the remaining Federal funding authorized by this part (including all funds reallocated, all funds dedicated, and all new funds authorized by this part and separate from all commitments of State and other non-Federal funds and in-kind commitments), then before the Secretary commences actual construction work in reach 4B (other than planning, design, feasibility, or other preliminary measures) to expand capacity to 4500 cubic feet per second to implement this Settlement, Congress must have increased the applicable authorization ceiling provided by this part in an amount at least sufficient to cover the higher estimated Federal costs.

#### SEC. 10010. REPAYMENT CONTRACTS AND ACCELERATION OF REPAYMENT OF CONSTRUCTION COSTS.

    (a) Conversion of Contracts—
       (1) The Secretary is authorized and directed to convert, prior to December 31, 2010, all existing long-term contracts with the following Friant Division, Hidden Unit, and Buchanan Unit contractors, entered under subsection (e) of section 9 of the Act of August 4, 1939 (53 Stat. 1196), to contracts under subsection (d) of section 9 of said Act (53 Stat. 1195), under mutually agreeable terms and conditions: Arvin-Edison Water Storage District; Delano-Earlimart Irrigation District; Exeter Irrigation District; Fresno Irrigation District; Ivanhoe Irrigation District; Lindmore Irrigation District; Lindsay-Strathmore Irrigation District; Lower Tule River Irrigation District; Orange Cove Irrigation District; Porterville Irrigation District; Saucelito Irrigation District; Shafter-Wasco Irrigation District; Southern San Joaquin Municipal Utility District; Stone Corral Irrigation District; Tea Pot Dome Water District; Terra Bella Irrigation District; Tulare Irrigation District; Madera Irrigation District; and Chowchilla Water District. Upon request of the contractor, the Secretary is authorized to convert, prior to December 31, 2010, other existing long-term contracts with Friant Division contractors entered under subsection (e) of section 9 of the Act of August 4, 1939 (53 Stat. 1196), to contracts under subsection (d) of section 9 of said Act (53 Stat. 1195), under mutually agreeable terms and conditions.
       (2) Upon request of the contractor, the Secretary is further authorized to convert, prior to December 31, 2010, any existing Friant Division long-term contract entered under subsection (c)(2) of section 9 of the Act of August 4, 1939 (53 Stat. 1194), to a contract under subsection (c)(1) of section 9 of said Act, under mutually agreeable terms and conditions.
       (3) All such contracts entered into pursuant to paragraph (1) shall—
          (A) require the repayment, either in lump sum or by accelerated prepayment, of the remaining amount of construction costs identified in the Central Valley Project Schedule of Irrigation Capital Rates by Contractor 2007 Irrigation Water Rates, dated January 25, 2007, as adjusted to reflect payments not reflected in such schedule, and properly assignable for ultimate return by the contractor, no later than January 31, 2011, or if made in approximately equal annual installments, no later than January 31, 2014; such amount to be discounted by 1/2 the Treasury Rate. An estimate of the remaining amount of construction costs as of January 31, 2011, as adjusted, shall be provided by the Secretary to each contractor no later than June 30, 2010;
          (B) require that, notwithstanding subsection (c)(2), construction costs or other capitalized costs incurred after the effective date of the contract or not reflected in the schedule referenced in subparagraph (A), and properly assignable to such contractor, shall be repaid in not more than 5 years after notification of the allocation if such amount is a result of a collective annual allocation of capital costs to the contractors exercising contract conversions under this subsection of less than $5,000,000. If such amount is $5,000,000 or greater, such cost shall be repaid as provided by applicable Reclamation law, provided that the reference to the amount of $5,000,000 shall not be a precedent in any other context;
          (C) provide that power revenues will not be available to aid in repayment of construction costs allocated to irrigation under the contract; and
          (D) conform to the Settlement and this part and shall continue so long as the contractor pays applicable charges, consistent with subsection (c)(2) and applicable law.
       (4) All such contracts entered into pursuant to paragraph (2) shall—
          (A) require the repayment in lump sum of the remaining amount of construction costs identified in the most current version of the Central Valley Project Schedule of Municipal and Industrial Water Rates, as adjusted to reflect payments not reflected in such schedule, and properly assignable for ultimate return by the contractor, no later than January 31, 2014. An estimate of the remaining amount of construction costs as of January 31, 2014, as adjusted, shall be provided by the Secretary to each contractor no later than June 30, 2013;
          (B) require that, notwithstanding subsection (c)(2), construction costs or other capitalized costs incurred after the effective date of the contract or not reflected in the schedule referenced in subparagraph (A), and properly assignable to such contractor, shall be repaid in not more than 5 years after notification of the allocation if such amount is a result of a collective annual allocation of capital costs to the contractors exercising contract conversions under this subsection of less than $5,000,000. If such amount is $5,000,000 or greater, such cost shall be repaid as provided by applicable Reclamation law, provided that the reference to the amount of $5,000,000 shall not be a precedent in any other context; and
          (C) conform to the Settlement and this part and shall continue so long as the contractor pays applicable charges, consistent with subsection (c)(2) and applicable law.
    (b) Final Adjustment—
       The amounts paid pursuant to subsection (a) shall be subject to adjustment following a final cost allocation by the Secretary upon completion of the construction of the Central Valley Project. In the event that the final cost allocation indicates that the costs properly assignable to the contractor are greater than what has been paid by the contractor, the contractor shall be obligated to pay the remaining allocated costs. The term of such additional repayment contract shall be no less than 1 year and no more than 10 years, however, mutually agreeable provisions regarding the rate of repayment of such amount may be developed by the parties. In the event that the final cost allocation indicates that the costs properly assignable to the contractor are less than what the contractor has paid, the Secretary is authorized and directed to credit such overpayment as an offset against any outstanding or future obligation of the contractor.
    (c) Applicability of Certain Provisions—
       (1) Notwithstanding any repayment obligation under subsection (a)(3)(B) or subsection (b), upon a contractor's compliance with and discharge of the obligation of repayment of the construction costs as provided in subsection (a)(3)(A), the provisions of section 213(a) and (b) of the Reclamation Reform Act of 1982 (96 Stat. 1269) shall apply to lands in such district.
       (2) Notwithstanding any repayment obligation under paragraph (3)(B) or (4)(B) of subsection (a), or subsection (b), upon a contractor's compliance with and discharge of the obligation of repayment of the construction costs as provided in paragraphs (3)(A) and (4)(A) of subsection (a), the Secretary shall waive the pricing provisions of section 3405(d) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575) for such contractor, provided that such contractor shall continue to pay applicable operation and maintenance costs and other charges applicable to such repayment contracts pursuant to the then-current rate-setting policy and applicable law.
       (3) Provisions of the Settlement applying to Friant Division, Hidden Unit, and Buchanan Unit long-term water service contracts shall also apply to contracts executed pursuant to this section.
    (d) Reduction of Charge for Those Contracts Converted Pursuant to Subsection (a)(1)—
       (1) At the time all payments by the contractor required by subsection (a)(3)(A) have been completed, the Secretary shall reduce the charge mandated in section 10007(1) of this part, from 2020 through 2039, to offset the financing costs as defined in section 10010(d)(3). The reduction shall be calculated at the time all payments by the contractor required by subsection (a)(3)(A) have been completed. The calculation shall remain fixed from 2020 through 2039 and shall be based upon anticipated average annual water deliveries, as mutually agreed upon by the Secretary and the contractor, for the period from 2020 through 2039, and the amounts of such reductions shall be discounted using the Treasury Rate; provided, that such charge shall not be reduced to less than $4.00 per acre foot of project water delivered; provided further, that such reduction shall be implemented annually unless the Secretary determines, based on the availability of other monies, that the charges mandated in section 10007(1) are otherwise needed to cover ongoing federal costs of the Settlement, including any federal operation and maintenance costs of facilities that the Secretary determines are needed to implement the Settlement. If the Secretary determines that such charges are necessary to cover such ongoing federal costs, the Secretary shall, instead of making the reduction in such charges, reduce the contractor's operation and maintenance obligation by an equivalent amount, and such amount shall not be recovered by the United States from any Central Valley Project contractor, provided nothing herein shall affect the obligation of the contractor to make payments pursuant to a transfer agreement with a non-federal operating entity.
       (2) If the calculated reduction in paragraph (1), taking into consideration the minimum amount required, does not result in the contractor offsetting its financing costs, the Secretary is authorized and directed to reduce, after October 1, 2019, any outstanding or future obligations of the contractor to the Bureau of Reclamation, other than the charge assessed and collected under section 3407(d) of Public law 102-575, by the amount of such deficiency, with such amount indexed to 2020 using the Treasury Rate and such amount shall not be recovered by the United States from any Central Valley Project contractor, provided nothing herein shall affect the obligation of the contractor to make payments pursuant to a transfer agreement with a non-Federal operating entity.
       (3) Financing costs, for the purposes of this subsection, shall be computed as the difference of the net present value of the construction cost identified in subsection (a)(3)(A) using the full Treasury Rate as compared to using one half of the Treasury Rate and applying those rates against a calculated average annual capital repayment through 2030.
       (4) Effective in 2040, the charge shall revert to the amount called for in section 10007(1) of this part.
       (5) For purposes of this section, `Treasury Rate' shall be defined as the 20 year Constant Maturity Treasury (CMT) rate published by the United States Department of the Treasury as of October 1, 2010.
    (e) Satisfaction of Certain Provisions—
       (1) IN GENERAL- Upon the first release of Interim Flows or Restoration Flows, pursuant to paragraphs 13 or 15 of the Settlement, any short—
          or long-term agreement, to which 1 or more long-term Friant Division, Hidden Unit, or Buchanan Unit contractor that converts its contract pursuant to subsection (a) is a party, providing for the transfer or exchange of water not released as Interim Flows or Restoration Flows shall be deemed to satisfy the provisions of subsection 3405(a)(1)(A) and (I) of the Reclamation Projects Authorization and Adjustment Act of 1992 (Public Law 102-575) without the further concurrence of the Secretary as to compliance with said subsections if the contractor provides, not later than 90 days before commencement of any such transfer or exchange for a period in excess of 1 year, and not later than 30 days before commencement of any proposed transfer or exchange with duration of less than 1 year, written notice to the Secretary stating how the proposed transfer or exchange is intended to reduce, avoid, or mitigate impacts to water deliveries caused by the Interim Flows or Restoration Flows or is intended to otherwise facilitate the Water Management Goal, as described in the Settlement. The Secretary shall promptly make such notice publicly available.
       (2) DETERMINATION OF REDUCTIONS TO WATER DELIVERIES—
          Water transferred or exchanged under an agreement that meets the terms of this subsection shall not be counted as a replacement or an offset for purposes of determining reductions to water deliveries to any Friant Division long-term contractor except as provided in paragraph 16(b) of the Settlement. The Secretary shall, at least annually, make publicly available a compilation of the number of transfer or exchange agreements exercising the provisions of this subsection to reduce, avoid, or mitigate impacts to water deliveries caused by the Interim Flows or Restoration Flows or to facilitate the Water Management Goal, as well as the volume of water transferred or exchanged under such agreements.
       (3) STATE LAW—
          Nothing in this subsection alters State law or permit conditions, including any applicable geographical restrictions on the place of use of water transferred or exchanged pursuant to this subsection.
    (f) Certain Repayment Obligations Not Altered—
       Implementation of the provisions of this section shall not alter the repayment obligation of any other long-term water service or repayment contractor receiving water from the Central Valley Project, or shift any costs that would otherwise have been properly assignable to the Friant contractors absent this section, including operations and maintenance costs, construction costs, or other capitalized costs incurred after the date of enactment of this Act, to other such contractors.
    (g) Statutory Interpretation—
       Nothing in this part shall be construed to affect the right of any Friant Division, Hidden Unit, or Buchanan Unit long-term contractor to use a particular type of financing to make the payments required in paragraph (3)(A) or (4)(A) of subsection (a).

#### SEC. 10011. CALIFORNIA CENTRAL VALLEY SPRING RUN CHINOOK SALMON.

    (a) Finding—
       Congress finds that the implementation of the Settlement to resolve 18 years of contentious litigation regarding restoration of the San Joaquin River and the reintroduction of the California Central Valley Spring Run Chinook salmon is a unique and unprecedented circumstance that requires clear expressions of Congressional intent regarding how the provisions of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) are utilized to achieve the goals of restoration of the San Joaquin River and the successful reintroduction of California Central Valley Spring Run Chinook salmon.
    (b) Reintroduction in the San Joaquin River—
       California Central Valley Spring Run Chinook salmon shall be reintroduced in the San Joaquin River below Friant Dam pursuant to section 10(j) of the Endangered Species Act of 1973 (16 U.S.C. 1539(j)) and the Settlement, provided that the Secretary of Commerce finds that a permit for the reintroduction of California Central Valley Spring Run Chinook salmon may be issued pursuant to section 10(a)(1)(A) of the Endangered Species Act of 1973 (16 U.S.C. 1539(a)(1)(A)).
    (c) Final Rule—
       (1) DEFINITION OF THIRD PARTY—
          For the purpose of this subsection, the term `third party' means persons or entities diverting or receiving water pursuant to applicable State and Federal laws and shall include Central Valley Project contractors outside of the Friant Division of the Central Valley Project and the State Water Project.
       (2) ISSUANCE—
          The Secretary of Commerce shall issue a final rule pursuant to section 4(d) of the Endangered Species Act of 1973 (16 U.S.C. 1533(d)) governing the incidental take of reintroduced California Central Valley Spring Run Chinook salmon prior to the reintroduction.
       (3) REQUIRED COMPONENTS—
          The rule issued under paragraph (2) shall provide that the reintroduction will not impose more than de minimus: water supply reductions, additional storage releases, or bypass flows on unwilling third parties due to such reintroduction.
       (4) APPLICABLE LAW—
          Nothing in this section—
          (A) diminishes the statutory or regulatory protections provided in the Endangered Species Act of 1973 for any species listed pursuant to section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533) other than the reintroduced population of California Central Valley Spring Run Chinook salmon, including protections pursuant to existing biological opinions or new biological opinions issued by the Secretary or Secretary of Commerce; or
          (B) precludes the Secretary or Secretary of Commerce from imposing protections under the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) for other species listed pursuant to section 4 of that Act (16 U.S.C. 1533) because those protections provide incidental benefits to such reintroduced California Central Valley Spring Run Chinook salmon.
    (d) Report—
       (1) IN GENERAL—
          Not later than December 31, 2024, the Secretary of Commerce shall report to Congress on the progress made on the reintroduction set forth in this section and the Secretary's plans for future implementation of this section.
       (2) INCLUSIONS—
          The report under paragraph (1) shall include—
          (A) an assessment of the major challenges, if any, to successful reintroduction;
          (B) an evaluation of the effect, if any, of the reintroduction on the existing population of California Central Valley Spring Run Chinook salmon existing on the Sacramento River or its tributaries; and
          (C) an assessment regarding the future of the reintroduction.
    (e) FERC Projects—
       (1) IN GENERAL—
          With regard to California Central Valley Spring Run Chinook salmon reintroduced pursuant to the Settlement, the Secretary of Commerce shall exercise its authority under section 18 of the Federal Power Act (16 U.S.C. 811) by reserving its right to file prescriptions in proceedings for projects licensed by the Federal Energy Regulatory Commission on the Calaveras, Stanislaus, Tuolumne, Merced, and San Joaquin rivers and otherwise consistent with subsection (c) until after the expiration of the term of the Settlement, December 31, 2025, or the expiration of the designation made pursuant to subsection (b), whichever ends first.
       (2) EFFECT OF SUBSECTION—
          Nothing in this subsection shall preclude the Secretary of Commerce from imposing prescriptions pursuant to section 18 of the Federal Power Act (16 U.S.C. 811) solely for other anadromous fish species because those prescriptions provide incidental benefits to such reintroduced California Central Valley Spring Run Chinook salmon.
    (f) Effect of Section—
       Nothing in this section is intended or shall be construed—
       (1) to modify the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) or the Federal Power Act (16 U.S.C. 791a et seq.); or
       (2) to establish a precedent with respect to any other application of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) or the Federal Power Act (16 U.S.C. 791a et seq.).

### PART II—STUDY TO DEVELOP WATER PLAN; REPORT
#### SEC. 10101. STUDY TO DEVELOP WATER PLAN; REPORT.

    (a) Plan—
       (1) GRANT—
          To the extent that funds are made available in advance for this purpose, the Secretary of the Interior, acting through the Bureau of Reclamation, shall provide direct financial assistance to the California Water Institute, located at California State University, Fresno, California, to conduct a study regarding the coordination and integration of sub-regional integrated regional water management plans into a unified Integrated Regional Water Management Plan for the subject counties in the hydrologic basins that would address issues related to—
          (A) water quality;
          (B) water supply (both surface, ground water banking, and brackish water desalination);
          (C) water conveyance;
          (D) water reliability;
          (E) water conservation and efficient use (by distribution systems and by end users);
          (F) flood control;
          (G) water resource-related environmental enhancement; and
          (H) population growth.
       (2) STUDY AREA—
          The study area referred to in paragraph (1) is the proposed study area of the San Joaquin River Hydrologic Region and Tulare Lake Hydrologic Region, as defined by California Department of Water Resources Bulletin 160-05, volume 3, chapters 7 and 8, including Kern, Tulare, Kings, Fresno, Madera, Merced, Stanislaus, and San Joaquin counties in California.
    (b) Use of Plan—
       The Integrated Regional Water Management Plan developed for the 2 hydrologic basins under subsection (a) shall serve as a guide for the counties in the study area described in subsection (a)(2) to use as a mechanism to address and solve long-term water needs in a sustainable and equitable manner.
    (c) Report—
       The Secretary shall ensure that a report containing the results of the Integrated Regional Water Management Plan for the hydrologic regions is submitted to the Committee on Energy and Natural Resources of the Senate and the Committee on Natural Resources of the House of Representatives not later than 24 months after financial assistance is made available to the California Water Institute under subsection (a)(1).
    (d) Authorization of Appropriations—
       There are authorized to be appropriated to carry out this section $1,000,000 to remain available until expended.

### PART III—FRIANT DIVISION IMPROVEMENTS
#### SEC. 10201. FEDERAL FACILITY IMPROVEMENTS.

    (a) The Secretary of the Interior (hereafter referred to as the `Secretary') is authorized and directed to conduct feasibility studies in coordination with appropriate Federal, State, regional, and local authorities on the following improvements and facilities in the Friant Division, Central Valley Project, California:
       (1) Restoration of the capacity of the Friant-Kern Canal and Madera Canal to such capacity as previously designed and constructed by the Bureau of Reclamation.
       (2) Reverse flow pump-back facilities on the Friant-Kern Canal, with reverse-flow capacity of approximately 500 cubic feet per second at the Poso and Shafter Check Structures and approximately 300 cubic feet per second at the Woollomes Check Structure.
    (b) Upon completion of and consistent with the applicable feasibility studies, the Secretary is authorized to construct the improvements and facilities identified in subsection (a) in accordance with all applicable Federal and State laws.
    (c) The costs of implementing this section shall be in accordance with section 10203, and shall be a nonreimbursable Federal expenditure.

#### SEC. 10202. FINANCIAL ASSISTANCE FOR LOCAL PROJECTS.

    (a) Authorization—
       The Secretary is authorized to provide financial assistance to local agencies within the Central Valley Project, California, for the planning, design, environmental compliance, and construction of local facilities to bank water underground or to recharge groundwater, and that recover such water, provided that the project meets the criteria in subsection (b). The Secretary is further authorized to require that any such local agency receiving financial assistance under the terms of this section submit progress reports and accountings to the Secretary, as the Secretary deems appropriate, which such reports shall be publicly available.
    (b) Criteria—
       (1) A project shall be eligible for Federal financial assistance under subsection (a) only if all or a portion of the project is designed to reduce, avoid, or offset the quantity of the expected water supply impacts to Friant Division long-term contractors caused by the Interim or Restoration Flows authorized in part I of this subtitle, and such quantities have not already been reduced, avoided, or offset by other programs or projects.
       (2) Federal financial assistance shall only apply to the portion of a project that the local agency designates as reducing, avoiding, or offsetting the expected water supply impacts caused by the Interim or Restoration Flows authorized in part I of this subtitle, consistent with the methodology developed pursuant to paragraph (3)(C).
       (3) No Federal financial assistance shall be provided by the Secretary under this part for construction of a project under subsection (a) unless the Secretary—
          (A) determines that appropriate planning, design, and environmental compliance activities associated with such a project have been completed, and that the Secretary has been offered the opportunity to participate in the project at a price that is no higher than the local agency's own costs, in order to secure necessary storage, extraction, and conveyance rights for water that may be needed to meet the Restoration Goal as described in part I of this subtitle, where such project has capacity beyond that designated for the purposes in paragraph (2) or where it is feasible to expand such project to allow participation by the Secretary;
          (B) determines, based on information available at the time, that the local agency has the financial capability and willingness to fund its share of the project's construction and all operation and maintenance costs on an annual basis;
          (C) determines that a method acceptable to the Secretary has been developed for quantifying the benefit, in terms of reduction, avoidance, or offset of the water supply impacts expected to be caused by the Interim or Restoration Flows authorized in part I of this subtitle, that will result from the project, and for ensuring appropriate adjustment in the recovered water account pursuant to section 10004(a)(5); and
          (D) has entered into a cost-sharing agreement with the local agency which commits the local agency to funding its share of the project's construction costs on an annual basis.
    (c) Guidelines—
       Within 1 year from the date of enactment of this part, the Secretary shall develop, in consultation with the Friant Division long-term contractors, proposed guidelines for the application of the criteria defined in subsection (b), and will make the proposed guidelines available for public comment. Such guidelines may consider prioritizing the distribution of available funds to projects that provide the broadest benefit within the affected area and the equitable allocation of funds. Upon adoption of such guidelines, the Secretary shall implement such assistance program, subject to the availability of funds appropriated for such purpose.
    (d) Cost Sharing—
       The Federal financial assistance provided to local agencies under subsection (a) shall not exceed—
       (1) 50 percent of the costs associated with planning, design, and environmental compliance activities associated with such a project; and
       (2) 50 percent of the costs associated with construction of any such project.
    (e) Project Ownership—
       (1) Title to, control over, and operation of, projects funded under subsection (a) shall remain in one or more non-Federal local agencies. Nothing in this part authorizes the Secretary to operate a groundwater bank along or adjacent to the San Joaquin River upstream of the confluence with the Merced River, and any such groundwater bank shall be operated by a non-Federal entity. All projects funded pursuant to this subsection shall comply with all applicable Federal and State laws, including provisions of California water law.
       (2) All operation, maintenance, and replacement and rehabilitation costs of such projects shall be the responsibility of the local agency. The Secretary shall not provide funding for any operation, maintenance, or replacement and rehabilitation costs of projects funded under subsection (a).

#### SEC. 10203. AUTHORIZATION OF APPROPRIATIONS.

    (a) The Secretary is authorized and directed to use monies from the fund established under section 10009 to carry out the provisions of section 10201(a)(1), in an amount not to exceed $35,000,000.
    (b) In addition to the funds made available pursuant to subsection (a), the Secretary is also authorized to expend such additional funds from the fund established under section 10009 to carry out the purposes of section 10201(a)(2), if such facilities have not already been authorized and funded under the plan provided for pursuant to section 10004(a)(4), in an amount not to exceed $17,000,000, provided that the Secretary first determines that such expenditure will not conflict with or delay his implementation of actions required by part I of this subtitle. Notice of the Secretary's determination shall be published not later than his submission of the report to Congress required by section 10009(f)(2).
    (c) In addition to funds made available in subsections (a) and (b), there are authorized to be appropriated $50,000,000 (October 2008 price levels) to carry out the purposes of this part which shall be non-reimbursable.

## SubtitleB—Northwestern New Mexico Rural Water Projects
### SEC. 10301. SHORT TITLE.

    This subtitle may be cited as the ``Northwestern New Mexico Rural Water Projects Act´´.

### SEC. 10302. DEFINITIONS.

    In this subtitle:
       (1) AAMODT ADJUDICATION—
          The term `Aamodt adjudication' means the general stream adjudication that is the subject of the civil action entitled `State of New Mexico, ex rel. State Engineer and United States of America, Pueblo de Nambe, Pueblo de Pojoaque, Pueblo de San Ildefonso, and Pueblo de Tesuque v. R. Lee Aamodt, et al.', No. 66 CV 6639 MV/LCS (D.N.M.).
       (2) ABEYTA ADJUDICATION—
          The term `Abeyta adjudication' means the general stream adjudication that is the subject of the civil actions entitled `State of New Mexico v. Abeyta and State of New Mexico v. Arrellano', Civil Nos. 7896-BB (D.N.M) and 7939-BB (D.N.M.) (consolidated).
       (3) ACRE-FEET—
          The term `acre-feet' means acre-feet per year.
       (4) AGREEMENT—
          The term `Agreement' means the agreement among the State of New Mexico, the Nation, and the United States setting forth a stipulated and binding agreement signed by the State of New Mexico and the Nation on April 19, 2005.
       (5) ALLOTTEE—
          The term `allottee' means a person that holds a beneficial real property interest in a Navajo allotment that—
          (A) is located within the Navajo Reservation or the State of New Mexico;
          (B) is held in trust by the United States; and
          (C) was originally granted to an individual member of the Nation by public land order or otherwise.
       (6) ANIMAS-LA PLATA PROJECT—
          The term `Animas-La Plata Project' has the meaning given the term in section 3 of Public Law 100-585 (102 Stat. 2973), including Ridges Basin Dam, Lake Nighthorse, the Navajo Nation Municipal Pipeline, and any other features or modifications made pursuant to the Colorado Ute Settlement Act Amendments of 2000 (Public Law 106-554; 114 Stat. 2763A-258).
       (7) CITY—
          The term `City' means the city of Gallup, New Mexico, or a designee of the City, with authority to provide water to the Gallup, New Mexico service area.
       (8) COLORADO RIVER COMPACT—
          The term `Colorado River Compact' means the Colorado River Compact of 1922 as approved by Congress in the Act of December 21, 1928 (45 Stat. 1057) and by the Presidential Proclamation of June 25, 1929 (46 Stat. 3000).
       (9) COLORADO RIVER SYSTEM—
          The term `Colorado River System' has the same meaning given the term in Article II(a) of the Colorado River Compact.
       (10) COMPACT—
          The term `Compact' means the Upper Colorado River Basin Compact as consented to by the Act of April 6, 1949 (63 Stat. 31, chapter 48).
       (11) CONTRACT—
          The term `Contract' means the contract between the United States and the Nation setting forth certain commitments, rights, and obligations of the United States and the Nation, as described in paragraph 6.0 of the Agreement.
       (12) DEPLETION—
          The term `depletion' means the depletion of the flow of the San Juan River stream system in the State of New Mexico by a particular use of water (including any depletion incident to the use) and represents the diversion from the stream system by the use, less return flows to the stream system from the use.
       (13) DRAFT IMPACT STATEMENT—
          The term `Draft Impact Statement' means the draft environmental impact statement prepared by the Bureau of Reclamation for the Project dated March 2007.
       (14) FUND—
          The term `Fund' means the Reclamation Waters Settlements Fund established by section 10501(a).
       (15) HYDROLOGIC DETERMINATION—
          The term `hydrologic determination' means the hydrologic determination entitled `Water Availability from Navajo Reservoir and the Upper Colorado River Basin for Use in New Mexico,' prepared by the Bureau of Reclamation pursuant to section 11 of the Act of June 13, 1962 (Public Law 87-483; 76 Stat. 99), and dated May 23, 2007.
       (16) LOWER BASIN—
          The term `Lower Basin' has the same meaning given the term in Article II(g) of the Colorado River Compact.
       (17) NATION—
          The term `Nation' means the Navajo Nation, a body politic and federally-recognized Indian nation as provided for in section 101(2) of the Federally Recognized Indian Tribe List of 1994 (25 U.S.C. 497a(2)), also known variously as the `Navajo Tribe,' the `Navajo Tribe of Arizona, New Mexico & Utah,' and the `Navajo Tribe of Indians' and other similar names, and includes all bands of Navajo Indians and chapters of the Navajo Nation.
       (18) NAVAJO-GALLUP WATER SUPPLY PROJECT; PROJECT—
          The term `Navajo-Gallup Water Supply Project' or `Project' means the Navajo-Gallup Water Supply Project authorized under section 10602(a), as described as the preferred alternative in the Draft Impact Statement.
       (19) NAVAJO INDIAN IRRIGATION PROJECT—
          The term `Navajo Indian Irrigation Project' means the Navajo Indian irrigation project authorized by section 2 of Public Law 87-483 (76 Stat. 96).
       (20) NAVAJO RESERVOIR—
          The term `Navajo Reservoir' means the reservoir created by the impoundment of the San Juan River at Navajo Dam, as authorized by the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 620 et seq.).
       (21) NAVAJO NATION MUNICIPAL PIPELINE; PIPELINE—
          The term `Navajo Nation Municipal Pipeline' or `Pipeline' means the pipeline used to convey the water of the Animas-La Plata Project of the Navajo Nation from the City of Farmington, New Mexico, to communities of the Navajo Nation located in close proximity to the San Juan River Valley in the State of New Mexico (including the City of Shiprock), as authorized by section 15(b) of the Colorado Ute Indian Water Rights Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2973; 114 Stat. 2763A-263).
       (22) NON-NAVAJO IRRIGATION DISTRICTS—
          The term `Non-Navajo Irrigation Districts' means—
          (A) the Hammond Conservancy District;
          (B) the Bloomfield Irrigation District; and
          (C) any other community ditch organization in the San Juan River basin in the State of New Mexico.
       (23) PARTIAL FINAL DECREE—
          The term `Partial Final Decree' means a final and binding judgment and decree entered by a court in the stream adjudication, setting forth the rights of the Nation to use and administer waters of the San Juan River Basin in New Mexico, as set forth in Appendix 1 of the Agreement.
       (24) PROJECT PARTICIPANTS—
          The term `Project Participants' means the City, the Nation, and the Jicarilla Apache Nation.
       (25) SAN JUAN RIVER BASIN RECOVERY IMPLEMENTATION PROGRAM—
          The term `San Juan River Basin Recovery Implementation Program' means the intergovernmental program established pursuant to the cooperative agreement dated October 21, 1992 (including any amendments to the program).
       (26) SECRETARY—
          The term `Secretary' means the Secretary of the Interior, acting through the Commissioner of Reclamation or any other designee.
       (27) STREAM ADJUDICATION—
          The term `stream adjudication' means the general stream adjudication that is the subject of New Mexico v. United States, et al., No. 75-185 (11th Jud. Dist., San Juan County, New Mexico) (involving claims to waters of the San Juan River and the tributaries of that river).
       (28) SUPPLEMENTAL PARTIAL FINAL DECREE—
          The term `Supplemental Partial Final Decree' means a final and binding judgment and decree entered by a court in the stream adjudication, setting forth certain water rights of the Nation, as set forth in Appendix 2 of the Agreement.
       (29) TRUST FUND—
          The term `Trust Fund' means the Navajo Nation Water Resources Development Trust Fund established by section 10702(a).
       (30) UPPER BASIN—
          The term `Upper Basin' has the same meaning given the term in Article II(f) of the Colorado River Compact.

### SEC. 10303. COMPLIANCE WITH ENVIRONMENTAL LAWS.

    (a) Effect of Execution of Agreement—
       The execution of the Agreement under section 10701(a)(2) shall not constitute a major Federal action under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    (b) Compliance With Environmental Laws—
       In carrying out this subtitle, the Secretary shall comply with each law of the Federal Government relating to the protection of the environment, including—
       (1) the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).

### SEC. 10304. NO REALLOCATION OF COSTS.

    (a) Effect of Act—
       Notwithstanding any other provision of law, the Secretary shall not reallocate or reassign any costs of projects that have been authorized under the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 620 et seq.), as of the date of enactment of this Act because of—
       (1) the authorization of the Navajo-Gallup Water Supply Project under this subtitle; or
       (2) the changes in the uses of the water diverted by the Navajo Indian Irrigation Project or the waters stored in the Navajo Reservoir authorized under this subtitle.
    (b) Use of Power Revenues—
       Notwithstanding any other provision of law, no power revenues under the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 620 et seq.), shall be used to pay or reimburse any costs of the Navajo Indian Irrigation Project or Navajo-Gallup Water Supply Project.

### SEC. 10305. INTEREST RATE.

    Notwithstanding any other provision of law, the interest rate applicable to any repayment contract entered into under section 10604 shall be equal to the discount rate for Federal water resources planning, as determined by the Secretary.

### PART I—AMENDMENTS TO THE COLORADO RIVER STORAGE PROJECT ACT AND PUBLIC LAW 87-483
#### SEC. 10401. AMENDMENTS TO THE COLORADO RIVER STORAGE PROJECT ACT.

    (a) Participating Projects—
       Paragraph (2) of the first section of the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 620(2)) is amended by inserting `the Navajo-Gallup Water Supply Project,' after `Fruitland Mesa,'.
    (b) Navajo Reservoir Water Bank—
       The Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') is amended—
       (1) by redesignating section 16 (43 U.S.C. 620o) as section 17; and
       (2) by inserting after section 15 (43 U.S.C. 620n) the following:
             `Sec. 16. (a) The Secretary of the Interior may create and operate within the available capacity of Navajo Reservoir a top water bank.
                `(b) Water made available for the top water bank in accordance with subsections (c) and (d) shall not be subject to section 11 of Public Law 87-483 (76 Stat. 99).
                `(c) The top water bank authorized under subsection (a) shall be operated in a manner that—
                   `(1) is consistent with applicable law, except that, notwithstanding any other provision of law, water for purposes other than irrigation may be stored in the Navajo Reservoir pursuant to the rules governing the top water bank established under this section; and
                   `(2) does not impair the ability of the Secretary of the Interior to deliver water under contracts entered into under—
                      `(A) Public Law 87-483 (76 Stat. 96); and
                      `(B) New Mexico State Engineer File Nos. 2847, 2848, 2849, and 2917.
                `(d)(1) The Secretary of the Interior, in cooperation with the State of New Mexico (acting through the Interstate Stream Commission), shall develop any terms and procedures for the storage, accounting, and release of water in the top water bank that are necessary to comply with subsection (c).
                   `(2) The terms and procedures developed under paragraph (1) shall include provisions requiring that—
                      `(A) the storage of banked water shall be subject to approval under State law by the New Mexico State Engineer to ensure that impairment of any existing water right does not occur, including storage of water under New Mexico State Engineer File No. 2849;
                      `(B) water in the top water bank be subject to evaporation and other losses during storage;
                      `(C) water in the top water bank be released for delivery to the owner or assigns of the banked water on request of the owner, subject to reasonable scheduling requirements for making the release;
                      `(D) water in the top water bank be the first water spilled or released for flood control purposes in anticipation of a spill, on the condition that top water bank water shall not be released or included for purposes of calculating whether a release should occur for purposes of satisfying the flow recommendations of the San Juan River Basin Recovery Implementation Program; and
                      `(E) water eligible for banking in the top water bank shall be water that otherwise would have been diverted and beneficially used in New Mexico that year.
                `(e) The Secretary of the Interior may charge fees to water users that use the top water bank in amounts sufficient to cover the costs incurred by the United States in administering the water bank.'.

#### SEC. 10402. AMENDMENTS TO PUBLIC LAW 87-483.

    (a) Navajo Indian Irrigation Project—
       Public Law 87-483 (76 Stat. 96) is amended by striking section 2 and inserting the following:
             `Sec. 2. (a) In accordance with the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 620 et seq.), the Secretary of the Interior is authorized to construct, operate, and maintain the Navajo Indian Irrigation Project to provide irrigation water to a service area of not more than 110,630 acres of land.
                `(b)(1) Subject to paragraph (2), the average annual diversion by the Navajo Indian Irrigation Project from the Navajo Reservoir over any consecutive 10-year period shall be the lesser of—
                      `(A) 508,000 acre-feet per year; or
                      `(B) the quantity of water necessary to supply an average depletion of 270,000 acre-feet per year.
                   `(2) The quantity of water diverted for any 1 year shall not exceed the average annual diversion determined under paragraph (1) by more than 15 percent.
                `(c) In addition to being used for irrigation, the water diverted by the Navajo Indian Irrigation Project under subsection (b) may be used within the area served by Navajo Indian Irrigation Project facilities for the following purposes:
                   `(1) Aquaculture purposes, including the rearing of fish in support of the San Juan River Basin Recovery Implementation Program authorized by Public Law 106-392 (114 Stat. 1602).
                   `(2) Domestic, industrial, or commercial purposes relating to agricultural production and processing.
                   `(3)(A) The generation of hydroelectric power as an incident to the diversion of water by the Navajo Indian Irrigation Project for authorized purposes.
                      `(B) Notwithstanding any other provision of law—
                         `(i) any hydroelectric power generated under this paragraph shall be used or marketed by the Navajo Nation;
                         `(ii) the Navajo Nation shall retain any revenues from the sale of the hydroelectric power; and
                         `(iii) the United States shall have no trust obligation to monitor, administer, or account for the revenues received by the Navajo Nation, or the expenditure of the revenues.
                   `(4) The implementation of the alternate water source provisions described in subparagraph 9.2 of the agreement executed under section 10701(a)(2) of the Northwestern New Mexico Rural Water Projects Act.
                `(d) The Navajo Indian Irrigation Project water diverted under subsection (b) may be transferred to areas located within or outside the area served by Navajo Indian Irrigation Project facilities, and within or outside the boundaries of the Navajo Nation, for any beneficial use in accordance with—
                   `(1) the agreement executed under section 10701(a)(2) of the Northwestern New Mexico Rural Water Projects Act;
                   `(2) the contract executed under section 10604(a)(2)(B) of that Act; and
                   `(3) any other applicable law.
                `(e) The Secretary may use the capacity of the Navajo Indian Irrigation Project works to convey water supplies for—
                   `(1) the Navajo-Gallup Water Supply Project under section 10602 of the Northwestern New Mexico Rural Water Projects Act; or
                   `(2) other nonirrigation purposes authorized under subsection (c) or (d).
                `(f)(1) Repayment of the costs of construction of the project (as authorized in subsection (a)) shall be in accordance with the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 620 et seq.), including section 4(d) of that Act.
                   `(2) The Secretary shall not reallocate, or require repayment of, construction costs of the Navajo Indian Irrigation Project because of the conveyance of water supplies for nonirrigation purposes under subsection (e).'.
    (b) Runoff Above Navajo Dam—
       Section 11 of Public Law 87-483 (76 Stat. 100) is amended by adding at the end the following:
                `(d)(1) For purposes of implementing in a year of prospective shortage the water allocation procedures established by subsection (a), the Secretary of the Interior shall determine the quantity of any shortages and the appropriate apportionment of water using the normal diversion requirements on the flow of the San Juan River originating above Navajo Dam based on the following criteria:
                      `(A) The quantity of diversion or water delivery for the current year anticipated to be necessary to irrigate land in accordance with cropping plans prepared by contractors.
                      `(B) The annual diversion or water delivery demands for the current year anticipated for non-irrigation uses under water delivery contracts, including contracts authorized by the Northwestern New Mexico Rural Water Projects Act, but excluding any current demand for surface water for placement into aquifer storage for future recovery and use.
                      `(C) An annual normal diversion demand of 135,000 acre-feet for the initial stage of the San Juan-Chama Project authorized by section 8, which shall be the amount to which any shortage is applied.
                   `(2) The Secretary shall not include in the normal diversion requirements—
                      `(A) the quantity of water that reliably can be anticipated to be diverted or delivered under a contract from inflows to the San Juan River arising below Navajo Dam under New Mexico State Engineer File No. 3215; or
                      `(B) the quantity of water anticipated to be supplied through reuse.
                `(e)(1) If the Secretary determines that there is a shortage of water under subsection (a), the Secretary shall respond to the shortage in the Navajo Reservoir water supply by curtailing releases and deliveries in the following order:
                      `(A) The demand for delivery for uses in the State of Arizona under the Navajo-Gallup Water Supply Project authorized by section 10603 of the Northwestern New Mexico Rural Water Projects Act, excluding the quantity of water anticipated to be diverted for the uses from inflows to the San Juan River that arise below Navajo Dam in accordance with New Mexico State Engineer File No. 3215.
                      `(B) The demand for delivery for uses allocated under paragraph 8.2 of the agreement executed under section 10701(a)(2) of the Northwestern New Mexico Rural Water Projects Act, excluding the quantity of water anticipated to be diverted for such uses under State Engineer File No. 3215.
                      `(C) The uses in the State of New Mexico that are determined under subsection (d), in accordance with the procedure for apportioning the water supply under subsection (a).
                   `(2) For any year for which the Secretary determines and responds to a shortage in the Navajo Reservoir water supply, the Secretary shall not deliver, and contractors of the water supply shall not divert, any of the water supply for placement into aquifer storage for future recovery and use.
                   `(3) To determine the occurrence and amount of any shortage to contracts entered into under this section, the Secretary shall not include as available storage any water stored in a top water bank in Navajo Reservoir established under section 16(a) of the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act').
                `(f) The Secretary of the Interior shall apportion water under subsections (a), (d), and (e) on an annual volume basis.
                `(g) The Secretary of the Interior may revise a determination of shortages, apportionments, or allocations of water under subsections (a), (d), and (e) on the basis of information relating to water supply conditions that was not available at the time at which the determination was made.
                `(h) Nothing in this section prohibits the distribution of water in accordance with cooperative water agreements between water users providing for a sharing of water supplies.
                `(i) Diversions under New Mexico State Engineer File No. 3215 shall be distributed, to the maximum extent water is available, in proportionate amounts to the diversion demands of contractors and subcontractors of the Navajo Reservoir water supply that are diverting water below Navajo Dam.'.

#### SEC. 10403. EFFECT ON FEDERAL WATER LAW.

    Unless expressly provided in this subtitle, nothing in this subtitle modifies, conflicts with, preempts, or otherwise affects—
       (1) the Boulder Canyon Project Act (43 U.S.C. 617 et seq.);
       (2) the Boulder Canyon Project Adjustment Act (54 Stat. 774, chapter 643);
       (3) the Act of April 11, 1956 (commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 620 et seq.);
       (4) the Act of September 30, 1968 (commonly known as the `Colorado River Basin Project Act') (82 Stat. 885);
       (5) Public Law 87-483 (76 Stat. 96);
       (6) the Treaty between the United States of America and Mexico respecting utilization of waters of the Colorado and Tijuana Rivers and of the Rio Grande, signed at Washington February 3, 1944 (59 Stat. 1219);
       (7) the Colorado River Compact of 1922, as approved by the Presidential Proclamation of June 25, 1929 (46 Stat. 3000);
       (8) the Compact;
       (9) the Act of April 6, 1949 (63 Stat. 31, chapter 48);
       (10) the Jicarilla Apache Tribe Water Rights Settlement Act (106 Stat. 2237); or
       (11) section 205 of the Energy and Water Development Appropriations Act, 2005 (118 Stat. 2949).

### PART II—RECLAMATION WATER SETTLEMENTS FUND
#### SEC. 10501. RECLAMATION WATER SETTLEMENTS FUND.

    (a) Establishment—
       There is established in the Treasury of the United States a fund, to be known as the `Reclamation Water Settlements Fund', consisting of—
       (1) such amounts as are deposited to the Fund under subsection (b); and
       (2) any interest earned on investment of amounts in the Fund under subsection (d).
    (b) Deposits to Fund—
       (1) IN GENERAL—
          For each of fiscal years 2020 through 2029, the Secretary of the Treasury shall deposit in the Fund, if available, $120,000,000 of the revenues that would otherwise be deposited for the fiscal year in the fund established by the first section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093).
       (2) AVAILABILITY OF AMOUNTS—
          Amounts deposited in the Fund under paragraph (1) shall be made available pursuant to this section—
          (A) without further appropriation; and
          (B) in addition to amounts appropriated pursuant to any authorization contained in any other provision of law.
    (c) Expenditures From Fund—
       (1) IN GENERAL—
          (A) EXPENDITURES—
             Subject to subparagraph (B), for each of fiscal years 2020 through 2034, the Secretary may expend from the Fund an amount not to exceed $120,000,000, plus the interest accrued in the Fund, for the fiscal year in which expenditures are made pursuant to paragraphs (2) and (3).
          (B) ADDITIONAL EXPENDITURES—
             The Secretary may expend more than $120,000,000 for any fiscal year if such amounts are available in the Fund due to expenditures not reaching $120,000,000 for prior fiscal years.
       (2) AUTHORITY—
          The Secretary may expend money from the Fund to implement a settlement agreement approved by Congress that resolves, in whole or in part, litigation involving the United States, if the settlement agreement or implementing legislation requires the Bureau of Reclamation to provide financial assistance for, or plan, design, and construct—
          (A) water supply infrastructure; or
          (B) a project—
             (i) to rehabilitate a water delivery system to conserve water; or
             (ii) to restore fish and wildlife habitat or otherwise improve environmental conditions associated with or affected by, or located within the same river basin as, a Federal reclamation project that is in existence on the date of enactment of this Act.
       (3) USE FOR COMPLETION OF PROJECT AND OTHER SETTLEMENTS—
          (A) PRIORITIES—
             (i) FIRST PRIORITY—
                (I) IN GENERAL—
             The first priority for expenditure of amounts in the Fund during the entire period in which the Fund is in existence shall be for the purposes described in, and in the order of, clauses (i) through (iv) of subparagraph (B).
                (II) RESERVED AMOUNTS- The Secretary shall reserve and use amounts deposited into the Fund in accordance with subclause (I).
             (ii) OTHER PURPOSES- Any amounts in the Fund that are not needed for the purposes described in subparagraph (B) may be used for other purposes authorized in paragraph (2).
          (B) COMPLETION OF PROJECT—
             (i) NAVAJO-GALLUP WATER SUPPLY PROJECT—
                (I) IN GENERAL—
             Subject to subclause (II), effective beginning January 1, 2020, if, in the judgment of the Secretary on an annual basis the deadline described in section 10701(e)(1)(A)(ix) is unlikely to be met because a sufficient amount of funding is not otherwise available through appropriations made available pursuant to section 10609(a), the Secretary shall expend from the Fund such amounts on an annual basis consistent with paragraphs (1) and (2), as are necessary to pay the Federal share of the costs, and substantially complete as expeditiously as practicable, the construction of the water supply infrastructure authorized as part of the Project.
                (II) MAXIMUM AMOUNT—
                   (aa) IN GENERAL- Except as provided under item (bb), the amount expended under subclause (I) shall not exceed $500,000,000 for the period of fiscal years 2020 through 2029.
                   (bb) EXCEPTION- The limitation on the expenditure amount under item (aa) may be exceeded during the entire period in which the Fund is in existence if such additional funds can be expended without limiting the amounts identified in clauses (ii) through (iv).
             (ii) OTHER NEW MEXICO SETTLEMENTS—
                (I) IN GENERAL—
             Subject to subclause (II), effective beginning January 1, 2020, in addition to the funding made available under clause (i), if in the judgment of the Secretary on an annual basis a sufficient amount of funding is not otherwise available through annual appropriations, the Secretary shall expend from the Fund such amounts on an annual basis consistent with paragraphs (1) and (2), as are necessary to pay the Federal share of the remaining costs of implementing the Indian water rights settlement agreements entered into by the State of New Mexico in the Aamodt adjudication and the Abeyta adjudication, if such settlements are subsequently approved and authorized by an Act of Congress and the implementation period has not already expired.
                (II) MAXIMUM AMOUNT- The amount expended under subclause (I) shall not exceed $250,000,000.
             (iii) MONTANA SETTLEMENTS—
                (I) IN GENERAL—
             Subject to subclause (II), effective beginning January 1, 2020, in addition to funding made available pursuant to clauses (i) and (ii), if in the judgment of the Secretary on an annual basis a sufficient amount of funding is not otherwise available through annual appropriations, the Secretary shall expend from the Fund such amounts on an annual basis consistent with paragraphs (1) and (2), as are necessary to pay the Federal share of the remaining costs of implementing Indian water rights settlement agreements entered into by the State of Montana with the Blackfeet Tribe, the Crow Tribe, or the Gros Ventre and Assiniboine Tribes of the Fort Belknap Indian Reservation in the judicial proceeding entitled `In re the General Adjudication of All the Rights to Use Surface and Groundwater in the State of Montana', if a settlement or settlements are subsequently approved and authorized by an Act of Congress and the implementation period has not already expired.
                (II) MAXIMUM AMOUNT—
                   (aa) IN GENERAL- Except as provided under item (bb), the amount expended under subclause (I) shall not exceed $350,000,000 for the period of fiscal years 2020 through 2029.
                   (bb) EXCEPTION- The limitation on the expenditure amount under item (aa) may be exceeded during the entire period in which the Fund is in existence if such additional funds can be expended without limiting the amounts identified in clause (i), (ii), and (iv).
                   (cc) OTHER FUNDING- The Secretary shall ensure that any funding under this clause shall be provided in a manner that does not limit the funding available pursuant to clauses (i) and (ii).
             (iv) ARIZONA SETTLEMENT—
                (I) IN GENERAL—
             Subject to subclause (II), effective beginning January 1, 2020, in addition to funding made available pursuant to clauses (i), (ii), and (iii), if in the judgment of the Secretary on an annual basis a sufficient amount of funding is not otherwise available through annual appropriations, the Secretary shall expend from the Fund such amounts on an annual basis consistent with paragraphs (1) and (2), as are necessary to pay the Federal share of the remaining costs of implementing an Indian water rights settlement agreement entered into by the State of Arizona with the Navajo Nation to resolve the water rights claims of the Nation in the Lower Colorado River basin in Arizona, if a settlement is subsequently approved and authorized by an Act of Congress and the implementation period has not already expired.
                (II) MAXIMUM AMOUNT—
                   (aa) IN GENERAL- Except as provided under item (bb), the amount expended under subclause (I) shall not exceed $100,000,000 for the period of fiscal years 2020 through 2029.
                   (bb) EXCEPTION- The limitation on the expenditure amount under item (aa) may be exceeded during the entire period in which the Fund is in existence if such additional funds can be expended without limiting the amounts identified in clauses (i) through (iii).
                   (cc) OTHER FUNDING- The Secretary shall ensure that any funding under this clause shall be provided in a manner that does not limit the funding available pursuant to clauses (i) and (ii).
          (C) REVERSION—
             If the settlements described in clauses (ii) through (iv) of subparagraph (B) have not been approved and authorized by an Act of Congress by December 31, 2019, the amounts reserved for the settlements shall no longer be reserved by the Secretary pursuant to subparagraph (A)(i) and shall revert to the Fund for any authorized use, as determined by the Secretary.
    (d) Investment of Amounts—
       (1) IN GENERAL—
          The Secretary shall invest such portion of the Fund as is not, in the judgment of the Secretary, required to meet current withdrawals.
       (2) CREDITS TO FUND—
          The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to, and form a part of, the Fund.
    (e) Transfers of Amounts—
       (1) IN GENERAL—
          The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.
       (2) ADJUSTMENTS—
          Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.
    (f) Termination—
       On September 30, 2034—
       (1) the Fund shall terminate; and
       (2) the unexpended and unobligated balance of the Fund shall be transferred to the appropriate fund of the Treasury.

### PART III—NAVAJO-GALLUP WATER SUPPLY PROJECT
#### SEC. 10601. PURPOSES.

    The purposes of this part are—
       (1) to authorize the Secretary to construct, operate, and maintain the Navajo-Gallup Water Supply Project;
       (2) to allocate the capacity of the Project among the Nation, the City, and the Jicarilla Apache Nation; and
       (3) to authorize the Secretary to enter into Project repayment contracts with the City and the Jicarilla Apache Nation.

#### SEC. 10602. AUTHORIZATION OF NAVAJO-GALLUP WATER SUPPLY PROJECT.

    (a) In General—
       The Secretary, acting through the Commissioner of Reclamation, is authorized to design, construct, operate, and maintain the Project in substantial accordance with the preferred alternative in the Draft Impact Statement.
    (b) Project Facilities—
       To provide for the delivery of San Juan River water to Project Participants, the Secretary may construct, operate, and maintain the Project facilities described in the preferred alternative in the Draft Impact Statement, including:
       (1) A pumping plant on the San Juan River in the vicinity of Kirtland, New Mexico.
       (2)(A) A main pipeline from the San Juan River near Kirtland, New Mexico, to Shiprock, New Mexico, and Gallup, New Mexico, which follows United States Highway 491.
          (B) Any pumping plants associated with the pipeline authorized under subparagraph (A).
       (3)(A) A main pipeline from Cutter Reservoir to Ojo Encino, New Mexico, which follows United States Highway 550.
          (B) Any pumping plants associated with the pipeline authorized under subparagraph (A).
       (4)(A) Lateral pipelines from the main pipelines to Nation communities in the States of New Mexico and Arizona.
          (B) Any pumping plants associated with the pipelines authorized under subparagraph (A).
       (5) Any water regulation, storage or treatment facility, service connection to an existing public water supply system, power substation, power distribution works, or other appurtenant works (including a building or access road) that is related to the Project facilities authorized by paragraphs (1) through (4), including power transmission facilities and associated wheeling services to connect Project facilities to existing high-voltage transmission facilities and deliver power to the Project.
    (c) Acquisition of Land—
       (1) IN GENERAL—
          The Secretary is authorized to acquire any land or interest in land that is necessary to construct, operate, and maintain the Project facilities authorized under subsection (b).
       (2) LAND OF THE PROJECT PARTICIPANTS—
          As a condition of construction of the facilities authorized under this part, the Project Participants shall provide all land or interest in land, as appropriate, that the Secretary identifies as necessary for acquisition under this subsection at no cost to the Secretary.
       (3) LIMITATION—
          The Secretary may not condemn water rights for purposes of the Project.
    (d) Conditions—
       (1) IN GENERAL—
          Except as provided in paragraph (2), the Secretary shall not commence construction of the facilities authorized under subsection (b) until such time as—
          (A) the Secretary executes the Agreement and the Contract;
          (B) the contracts authorized under section 10604 are executed;
          (C) the Secretary—
             (i) completes an environmental impact statement for the Project; and
             (ii) has issued a record of decision that provides for a preferred alternative; and
          (D) the Secretary has entered into an agreement with the State of New Mexico under which the State of New Mexico will provide a share of the construction costs of the Project of not less than $50,000,000, except that the State of New Mexico shall receive credit for funds the State has contributed to construct water conveyance facilities to the Project Participants to the extent that the facilities reduce the cost of the Project as estimated in the Draft Impact Statement.
       (2) EXCEPTION—
          If the Jicarilla Apache Nation elects not to enter into a contract pursuant to section 10604, the Secretary, after consulting with the Nation, the City, and the State of New Mexico acting through the Interstate Stream Commission, may make appropriate modifications to the scope of the Project and proceed with Project construction if all other conditions for construction have been satisfied.
       (3) EFFECT OF INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT—
          The Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.) shall not apply to the design, construction, operation, maintenance, or replacement of the Project.
    (e) Power—
       The Secretary shall reserve, from existing reservations of Colorado River Storage Project power for Bureau of Reclamation projects, up to 26 megawatts of power for use by the Project.
    (f) Conveyance of Title to Project Facilities—
       (1) IN GENERAL—
          The Secretary is authorized to enter into separate agreements with the City and the Nation and, on entering into the agreements, shall convey title to each Project facility or section of a Project facility authorized under subsection (b) (including any appropriate interests in land) to the City and the Nation after—
          (A) completion of construction of a Project facility or a section of a Project facility that is operating and delivering water; and
          (B) execution of a Project operations agreement approved by the Secretary and the Project Participants that sets forth—
             (i) any terms and conditions that the Secretary determines are necessary—
                (I) to ensure the continuation of the intended benefits of the Project; and
                (II) to fulfill the purposes of this part;
             (ii) requirements acceptable to the Secretary and the Project Participants for—
                (I) the distribution of water under the Project or section of a Project facility; and
                (II) the allocation and payment of annual operation, maintenance, and replacement costs of the Project or section of a Project facility based on the proportionate uses of Project facilities; and
             (iii) conditions and requirements acceptable to the Secretary and the Project Participants for operating and maintaining each Project facility on completion of the conveyance of title, including the requirement that the City and the Nation shall—
                (I) comply with—
                   (aa) the Compact; and
                   (bb) other applicable law; and
                (II) be responsible for—
                   (aa) the operation, maintenance, and replacement of each Project facility; and
                   (bb) the accounting and management of water conveyance and Project finances, as necessary to administer and fulfill the conditions of the Contract executed under section 10604(a)(2)(B).
       (2) EFFECT OF CONVEYANCE—
          The conveyance of title to each Project facility shall not affect the application of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) relating to the use of the water associated with the Project.
       (3) LIABILITY—
          (A) IN GENERAL—
             Effective on the date of the conveyance authorized by this subsection, the United States shall not be held liable by any court for damages of any kind arising out of any act, omission, or occurrence relating to the land, buildings, or facilities conveyed under this subsection, other than damages caused by acts of negligence committed by the United States, or by employees or agents of the United States, prior to the date of conveyance.
          (B) TORT CLAIMS—
             Nothing in this section increases the liability of the United States beyond the liability provided in chapter 171 of title 28, United States Code (commonly known as the `Federal Tort Claims Act').
       (4) NOTICE OF PROPOSED CONVEYANCE—
          Not later than 45 days before the date of a proposed conveyance of title to any Project facility, the Secretary shall submit to the Committee on Resources of the House of Representatives and to the Committee on Energy and Natural Resources of the Senate notice of the conveyance of each Project facility.
    (g) Colorado River Storage Project Power—
       The conveyance of Project facilities under subsection (f) shall not affect the availability of Colorado River Storage Project power to the Project under subsection (e).
    (h) Regional Use of Project Facilities—
       (1) IN GENERAL—
          Subject to paragraph (2), Project facilities constructed under subsection (b) may be used to treat and convey non-Project water or water that is not allocated by subsection 10603(b) if—
          (A) capacity is available without impairing any water delivery to a Project Participant; and
          (B) the unallocated or non-Project water beneficiary—
             (i) has the right to use the water;
             (ii) agrees to pay the operation, maintenance, and replacement costs assignable to the beneficiary for the use of the Project facilities; and
             (iii) agrees to pay an appropriate fee that may be established by the Secretary to assist in the recovery of any capital cost allocable to that use.
       (2) EFFECT OF PAYMENTS—
          Any payments to the United States or the Nation for the use of unused capacity under this subsection or for water under any subcontract with the Nation or the Jicarilla Apache Nation shall not alter the construction repayment requirements or the operation, maintenance, and replacement payment requirements of the Project Participants.

#### SEC. 10603. DELIVERY AND USE OF NAVAJO-GALLUP WATER SUPPLY PROJECT WATER.

    (a) Use of Project Water—
       (1) IN GENERAL—
          In accordance with this subtitle and other applicable law, water supply from the Project shall be used for municipal, industrial, commercial, domestic, and stock watering purposes.
       (2) USE ON CERTAIN LAND—
          (A) IN GENERAL—
             Subject to subparagraph (B), the Nation may use Project water allocations on—
             (i) land held by the United States in trust for the Nation and members of the Nation; and
             (ii) land held in fee by the Nation.
          (B) TRANSFER—
             The Nation may transfer the purposes and places of use of the allocated water in accordance with the Agreement and applicable law.
       (3) HYDROELECTRIC POWER—
          (A) IN GENERAL—
             Hydroelectric power may be generated as an incident to the delivery of Project water for authorized purposes under paragraph (1).
          (B) ADMINISTRATION—
             Notwithstanding any other provision of law—
             (i) any hydroelectric power generated under this paragraph shall be used or marketed by the Nation;
             (ii) the Nation shall retain any revenues from the sale of the hydroelectric power; and
             (iii) the United States shall have no trust obligation or other obligation to monitor, administer, or account for the revenues received by the Nation, or the expenditure of the revenues.
       (4) STORAGE—
          (A) IN GENERAL—
             Subject to subparagraph (B), any water contracted for delivery under paragraph (1) that is not needed for current water demands or uses may be delivered by the Project for placement in underground storage in the State of New Mexico for future recovery and use.
          (B) STATE APPROVAL—
             Delivery of water under subparagraph (A) is subject to—
             (i) approval by the State of New Mexico under applicable provisions of State law relating to aquifer storage and recovery; and
             (ii) the provisions of the Agreement and this subtitle.
    (b) Project Water and Capacity Allocations—
       (1) DIVERSION—
          Subject to availability and consistent with Federal and State law, the Project may divert from the Navajo Reservoir and the San Juan River a quantity of water to be allocated and used consistent with the Agreement and this subtitle, that does not exceed in any 1 year, the lesser of—
          (A) 37,760 acre-feet of water; or
          (B) the quantity of water necessary to supply a depletion from the San Juan River of 35,890 acre-feet.
       (2) PROJECT DELIVERY CAPACITY ALLOCATIONS—
          (A) IN GENERAL—
             The capacity of the Project shall be allocated to the Project Participants in accordance with subparagraphs (B) through (E), other provisions of this subtitle, and other applicable law.
          (B) DELIVERY CAPACITY ALLOCATION TO THE CITY—
             The Project may deliver at the point of diversion from the San Juan River not more than 7,500 acre-feet of water in any 1 year for which the City has secured rights for the use of the City.
          (C) DELIVERY CAPACITY ALLOCATION TO NAVAJO NATION COMMUNITIES IN NEW MEXICO—
             For use by the Nation in the State of New Mexico, the Project may deliver water out of the water rights held by the Secretary for the Nation and confirmed under this subtitle, at the points of diversion from the San Juan River or at Navajo Reservoir in any 1 year, the lesser of—
             (i) 22,650 acre-feet of water; or
             (ii) the quantity of water necessary to supply a depletion from the San Juan River of 20,780 acre-feet of water.
          (D) DELIVERY CAPACITY ALLOCATION TO NAVAJO NATION COMMUNITIES IN ARIZONA—
             Subject to subsection (c), the Project may deliver at the point of diversion from the San Juan River not more than 6,411 acre-feet of water in any 1 year for use by the Nation in the State of Arizona.
          (E) DELIVERY CAPACITY ALLOCATION TO JICARILLA APACHE NATION—
             The Project may deliver at Navajo Reservoir not more than 1,200 acre-feet of water in any 1 year of the water rights of the Jicarilla Apache Nation, held by the Secretary and confirmed by the Jicarilla Apache Tribe Water Rights Settlement Act (Public Law 102-441; 106 Stat. 2237), for use by the Jicarilla Apache Nation in the southern portion of the Jicarilla Apache Nation Reservation in the State of New Mexico.
       (3) USE IN EXCESS OF DELIVERY CAPACITY ALLOCATION QUANTITY—
          Notwithstanding each delivery capacity allocation quantity limit described in subparagraphs (B), (C), and (E) of paragraph (2), the Secretary may authorize a Project Participant to exceed the delivery capacity allocation quantity limit of that Project Participant if—
          (A) delivery capacity is available without impairing any water delivery to any other Project Participant; and
          (B) the Project Participant benefitting from the increased allocation of delivery capacity—
             (i) has the right under applicable law to use the additional water;
             (ii) agrees to pay the operation, maintenance, and replacement costs relating to the additional use of any Project facility; and
             (iii) agrees, if the Project title is held by the Secretary, to pay a fee established by the Secretary to assist in recovering capital costs relating to that additional use.
    (c) Conditions for Use in Arizona—
       (1) REQUIREMENTS—
          Project water shall not be delivered for use by any community of the Nation located in the State of Arizona under subsection (b)(2)(D) until—
          (A) the Nation and the State of Arizona have entered into a water rights settlement agreement approved by an Act of Congress that settles and waives the Nation's claims to water in the Lower Basin and the Little Colorado River Basin in the State of Arizona, including those of the United States on the Nation's behalf; and
          (B) the Secretary and the Navajo Nation have entered into a Navajo Reservoir water supply delivery contract for the physical delivery and diversion of water via the Project from the San Juan River system to supply uses in the State of Arizona.
       (2) ACCOUNTING OF USES IN ARIZONA—
          (A) IN GENERAL—
             Pursuant to paragraph (1) and notwithstanding any other provision of law, water may be diverted by the Project from the San Juan River in the State of New Mexico in accordance with an appropriate permit issued under New Mexico law for use in the State of Arizona within the Navajo Reservation in the Lower Basin; provided that any depletion of water that results from the diversion of water by the Project from the San Juan River in the State of New Mexico for uses within the State of Arizona (including depletion incidental to the diversion, impounding, or conveyance of water in the State of New Mexico for uses in the State of Arizona) shall be administered and accounted for as either—
             (i) a part of, and charged against, the available consumptive use apportionment made to the State of Arizona by Article III(a) of the Compact and to the Upper Basin by Article III(a) of the Colorado River Compact, in which case any water so diverted by the Project into the Lower Basin for use within the State of Arizona shall not be credited as water reaching Lee Ferry pursuant to Article III(c) and III(d) of the Colorado River Compact; or
             (ii) subject to subparagraph (B), a part of, and charged against, the consumptive use apportionment made to the Lower Basin by Article III(a) of the Colorado River Compact, in which case it shall—
                (I) be a part of the Colorado River water that is apportioned to the State of Arizona in Article II(B) of the Consolidated Decree of the Supreme Court of the United States in Arizona v. California (547 U.S. 150) (as may be amended or supplemented);
                (II) be credited as water reaching Lee Ferry pursuant to Article III(c) and III(d) of the Colorado River Compact; and
                (III) be accounted as the water identified in section 104(a)(1)(B)(ii) of the Arizona Water Settlements Act, (118 Stat. 3478).
          (B) LIMITATION—
             Notwithstanding subparagraph (A)(ii), no water diverted by the Project shall be accounted for pursuant to subparagraph (A)(ii) until such time that—
             (i) the Secretary has developed and, as necessary and appropriate, modified, in consultation with the Upper Colorado River Commission and the Governors' Representatives on Colorado River Operations from each State signatory to the Colorado River Compact, all operational and decisional criteria, policies, contracts, guidelines or other documents that control the operations of the Colorado River System reservoirs and diversion works, so as to adjust, account for, and offset the diversion of water apportioned to the State of Arizona, pursuant to the Boulder Canyon Project Act (43 U.S.C. 617 et seq.), from a point of diversion on the San Juan River in New Mexico; provided that all such modifications shall be consistent with the provisions of this Section, and the modifications made pursuant to this clause shall be applicable only for the duration of any such diversions pursuant to section 10603(c)(2)(A)(ii); and
             (ii) Article II(B) of the Decree of the Supreme Court of the United States in Arizona v. California (547 U.S. 150 as may be amended or supplemented) is administered so that diversions from the main stream for the Central Arizona Project, as served under existing contracts with the United States by diversion works heretofore constructed, shall be limited and reduced to offset any diversions made pursuant to section 10603(c)(2)(A)(ii) of this Act. This clause shall not affect, in any manner, the amount of water apportioned to Arizona pursuant to the Boulder Canyon Project Act (43 U.S.C. 617 et seq.), or amend any provisions of said decree or the Colorado River Basin Project Act (43 U.S.C. 1501 et. seq.).
       (3) UPPER BASIN PROTECTIONS—
          (A) CONSULTATIONS—
             Henceforth, in any consultation pursuant to 16 U.S.C. 1536(a) with respect to water development in the San Juan River Basin, the Secretary shall confer with the States of Colorado and New Mexico, consistent with the provisions of section 5 of the `Principles for Conducting Endangered Species Act Section 7 Consultations on Water Development and Water Management Activities Affecting Endangered Fish Species in the San Juan River Basin' as adopted by the Coordination Committee, San Juan River Basin Recovery Implementation Program, on June 19, 2001, and as may be amended or modified.
          (B) PRESERVATION OF EXISTING RIGHTS—
             Rights to the consumptive use of water available to the Upper Basin from the Colorado River System under the Colorado River Compact and the Compact shall not be reduced or prejudiced by any use of water pursuant to subsection 10603(c). Nothing in this Act shall be construed so as to impair, conflict with, or otherwise change the duties and powers of the Upper Colorado River Commission.
    (d) Forbearance—
       (1) IN GENERAL—
          Subject to paragraphs (2) and (3), during any year in which a shortage to the normal diversion requirement for any use relating to the Project within the State of Arizona occurs (as determined under section 11 of Public Law 87-483 (76 Stat. 99)), the Nation may temporarily forbear the delivery of the water supply of the Navajo Reservoir for uses in the State of New Mexico under the apportionments of water to the Navajo Indian Irrigation Project and the normal diversion requirements of the Project to allow an equivalent quantity of water to be delivered from the Navajo Reservoir water supply for municipal and domestic uses of the Nation in the State of Arizona under the Project.
       (2) LIMITATION OF FORBEARANCE—
          The Nation may forebear the delivery of water under paragraph (1) of a quantity not exceeding the quantity of the shortage to the normal diversion requirement for any use relating to the Project within the State of Arizona.
       (3) EFFECT—
          The forbearance of the delivery of water under paragraph (1) shall be subject to the requirements in subsection (c).
    (e) Effect—
       Nothing in this subtitle—
       (1) authorizes the marketing, leasing, or transfer of the water supplies made available to the Nation under the Contract to non-Navajo water users in States other than the State of New Mexico; or
       (2) authorizes the forbearance of water uses in the State of New Mexico to allow uses of water in other States other than as authorized under subsection (d).
    (f) Colorado River Compacts—
       Notwithstanding any other provision of law—
       (1) water may be diverted by the Project from the San Juan River in the State of New Mexico for use within New Mexico in the lower basin, as that term is used in the Colorado River Compact;
       (2) any water diverted under paragraph (1) shall be a part of, and charged against, the consumptive use apportionment made to the State of New Mexico by Article III(a) of the Compact and to the upper basin by Article III(a) of the Colorado River Compact; and
       (3) any water so diverted by the Project into the lower basin within the State of New Mexico shall not be credited as water reaching Lee Ferry pursuant to Articles III(c) and III(d) of the Colorado River Compact.
    (g) Payment of Operation, Maintenance, and Replacement Costs—
       (1) IN GENERAL—
          The Secretary is authorized to pay the operation, maintenance, and replacement costs of the Project allocable to the Project Participants under section 10604 until the date on which the Secretary declares any section of the Project to be substantially complete and delivery of water generated by, and through, that section of the Project can be made to a Project participant.
       (2) PROJECT PARTICIPANT PAYMENTS—
          Beginning on the date described in paragraph (1), each Project Participant shall pay all allocated operation, maintenance, and replacement costs for that substantially completed section of the Project, in accordance with contracts entered into pursuant to section 10604, except as provided in section 10604(f).
    (h) No Precedent—
       Nothing in this Act shall be construed as authorizing or establishing a precedent for any type of transfer of Colorado River System water between the Upper Basin and Lower Basin. Nor shall anything in this Act be construed as expanding the Secretary's authority in the Upper Basin.
    (i) Unique Situation—
       Diversions by the Project consistent with this section address critical tribal and non-Indian water supply needs under unique circumstances, which include, among other things—
       (1) the intent to benefit an American Indian tribe;
       (2) the Navajo Nation's location in both the Upper and Lower Basin;
       (3) the intent to address critical Indian water needs in the State of Arizona and Indian and non-Indian water needs in the State of New Mexico,
       (4) the location of the Navajo Nation's capital city of Window Rock in the State of Arizona in close proximity to the border of the State of New Mexico and the pipeline route for the Project;
       (5) the lack of other reasonable options available for developing a firm, sustainable supply of municipal water for the Navajo Nation at Window Rock in the State of Arizona; and
       (6) the limited volume of water to be diverted by the Project to supply municipal uses in the Window Rock area in the State of Arizona.
    (j) Consensus—
       Congress notes the consensus of the Governors' Representatives on Colorado River Operations of the States that are signatory to the Colorado River Compact regarding the diversions authorized for the Project under this section.
    (k) Efficient Use—
       The diversions and uses authorized for the Project under this Section represent unique and efficient uses of Colorado River apportionments in a manner that Congress has determined would be consistent with the obligations of the United States to the Navajo Nation.

#### SEC. 10604. PROJECT CONTRACTS.

    (a) Navajo Nation Contract—
       (1) HYDROLOGIC DETERMINATION—
          Congress recognizes that the Hydrologic Determination necessary to support approval of the Contract has been completed.
       (2) CONTRACT APPROVAL—
          (A) APPROVAL—
             (i) IN GENERAL—
       Except to the extent that any provision of the Contract conflicts with this subtitle, Congress approves, ratifies, and confirms the Contract.
             (ii) AMENDMENTS- To the extent any amendment is executed to make the Contract consistent with this subtitle, that amendment is authorized, ratified, and confirmed.
          (B) EXECUTION OF CONTRACT—
             The Secretary, acting on behalf of the United States, shall enter into the Contract to the extent that the Contract does not conflict with this subtitle (including any amendment that is required to make the Contract consistent with this subtitle).
       (3) NONREIMBURSABILITY OF ALLOCATED COSTS—
          The following costs shall be nonreimbursable and not subject to repayment by the Nation or any other Project beneficiary:
          (A) Any share of the construction costs of the Nation relating to the Project authorized by section 10602(a).
          (B) Any costs relating to the construction of the Navajo Indian Irrigation Project that may otherwise be allocable to the Nation for use of any facility of the Navajo Indian Irrigation Project to convey water to each Navajo community under the Project.
          (C) Any costs relating to the construction of Navajo Dam that may otherwise be allocable to the Nation for water deliveries under the Contract.
       (4) OPERATION, MAINTENANCE, AND REPLACEMENT OBLIGATION—
          Subject to subsection (f), the Contract shall include provisions under which the Nation shall pay any costs relating to the operation, maintenance, and replacement of each facility of the Project that are allocable to the Nation.
       (5) LIMITATION, CANCELLATION, TERMINATION, AND RESCISSION—
          The Contract may be limited by a term of years, canceled, terminated, or rescinded only by an Act of Congress.
    (b) City of Gallup Contract—
       (1) CONTRACT AUTHORIZATION—
          Consistent with this subtitle, the Secretary is authorized to enter into a repayment contract with the City that requires the City—
          (A) to repay, within a 50-year period, the share of the construction costs of the City relating to the Project, with interest as provided under section 10305; and
          (B) consistent with section 10603(g), to pay the operation, maintenance, and replacement costs of the Project that are allocable to the City.
       (2) CONTRACT PREPAYMENT—
          (A) IN GENERAL—
             The contract authorized under paragraph (1) may allow the City to satisfy the repayment obligation of the City for construction costs of the Project on the payment of the share of the City prior to the initiation of construction.
          (B) AMOUNT—
             The amount of the share of the City described in subparagraph (A) shall be determined by agreement between the Secretary and the City.
          (C) REPAYMENT OBLIGATION—
             Any repayment obligation established by the Secretary and the City pursuant to subparagraph (A) shall be subject to a final cost allocation by the Secretary on project completion and to the limitations set forth in paragraph (3).
       (3) SHARE OF CONSTRUCTION COSTS—
          (A) IN GENERAL—
             Subject to subparagraph (B), the Secretary shall determine the share of the construction costs of the Project allocable to the City and establish the percentage of the allocated construction costs that the City shall be required to repay pursuant to the contract entered into under paragraph (1), based on the ability of the City to pay.
          (B) MINIMUM PERCENTAGE—
             Notwithstanding subparagraph (A), the repayment obligation of the City shall be at least 25 percent of the construction costs of the Project that are allocable to the City, but shall in no event exceed 35 percent.
       (4) EXCESS CONSTRUCTION COSTS—
          Any construction costs of the Project allocable to the City in excess of the repayment obligation of the City, as determined under paragraph (3), shall be nonreimbursable.
       (5) GRANT FUNDS—
          A grant from any other Federal source shall not be credited toward the amount required to be repaid by the City under a repayment contract.
       (6) TITLE TRANSFER—
          If title is transferred to the City prior to repayment under section 10602(f), the City shall be required to provide assurances satisfactory to the Secretary of fulfillment of the remaining repayment obligation of the City.
       (7) WATER DELIVERY SUBCONTRACT—
          The Secretary shall not enter into a contract under paragraph (1) with the City until the City has secured a water supply for the City's portion of the Project described in section 10603(b)(2)(B), by entering into, as approved by the Secretary, a water delivery subcontract for a period of not less than 40 years beginning on the date on which the construction of any facility of the Project serving the City is completed, with—
          (A) the Nation, as authorized by the Contract;
          (B) the Jicarilla Apache Nation, as authorized by the settlement contract between the United States and the Jicarilla Apache Tribe, authorized by the Jicarilla Apache Tribe Water Rights Settlement Act (Public Law 102-441; 106 Stat. 2237); or
          (C) an acquired alternate source of water, subject to approval of the Secretary and the State of New Mexico, acting through the New Mexico Interstate Stream Commission and the New Mexico State Engineer.
    (c) Jicarilla Apache Nation Contract—
       (1) CONTRACT AUTHORIZATION—
          Consistent with this subtitle, the Secretary is authorized to enter into a repayment contract with the Jicarilla Apache Nation that requires the Jicarilla Apache Nation—
          (A) to repay, within a 50-year period, the share of any construction cost of the Jicarilla Apache Nation relating to the Project, with interest as provided under section 10305; and
          (B) consistent with section 10603(g), to pay the operation, maintenance, and replacement costs of the Project that are allocable to the Jicarilla Apache Nation.
       (2) CONTRACT PREPAYMENT—
          (A) IN GENERAL—
             The contract authorized under paragraph (1) may allow the Jicarilla Apache Nation to satisfy the repayment obligation of the Jicarilla Apache Nation for construction costs of the Project on the payment of the share of the Jicarilla Apache Nation prior to the initiation of construction.
          (B) AMOUNT—
             The amount of the share of Jicarilla Apache Nation described in subparagraph (A) shall be determined by agreement between the Secretary and the Jicarilla Apache Nation.
          (C) REPAYMENT OBLIGATION—
             Any repayment obligation established by the Secretary and the Jicarilla Apache Nation pursuant to subparagraph (A) shall be subject to a final cost allocation by the Secretary on project completion and to the limitations set forth in paragraph (3).
       (3) SHARE OF CONSTRUCTION COSTS—
          (A) IN GENERAL—
             Subject to subparagraph (B), the Secretary shall determine the share of the construction costs of the Project allocable to the Jicarilla Apache Nation and establish the percentage of the allocated construction costs of the Jicarilla Apache Nation that the Jicarilla Apache Nation shall be required to repay based on the ability of the Jicarilla Apache Nation to pay.
          (B) MINIMUM PERCENTAGE—
             Notwithstanding subparagraph (A), the repayment obligation of the Jicarilla Apache Nation shall be at least 25 percent of the construction costs of the Project that are allocable to the Jicarilla Apache Nation, but shall in no event exceed 35 percent.
       (4) EXCESS CONSTRUCTION COSTS—
          Any construction costs of the Project allocable to the Jicarilla Apache Nation in excess of the repayment obligation of the Jicarilla Apache Nation as determined under paragraph (3), shall be nonreimbursable.
       (5) GRANT FUNDS—
          A grant from any other Federal source shall not be credited toward the share of the Jicarilla Apache Nation of construction costs.
       (6) NAVAJO INDIAN IRRIGATION PROJECT COSTS—
          The Jicarilla Apache Nation shall have no obligation to repay any Navajo Indian Irrigation Project construction costs that might otherwise be allocable to the Jicarilla Apache Nation for use of the Navajo Indian Irrigation Project facilities to convey water to the Jicarilla Apache Nation, and any such costs shall be nonreimbursable.
    (d) Capital Cost Allocations—
       (1) IN GENERAL—
          For purposes of estimating the capital repayment requirements of the Project Participants under this section, the Secretary shall review and, as appropriate, update the Draft Impact Statement allocating capital construction costs for the Project.
       (2) FINAL COST ALLOCATION—
          The repayment contracts entered into with Project Participants under this section shall require that the Secretary perform a final cost allocation when construction of the Project is determined to be substantially complete.
       (3) REPAYMENT OBLIGATION—
          The Secretary shall determine the repayment obligation of the Project Participants based on the final cost allocation identifying reimbursable and nonreimbursable capital costs of the Project consistent with this subtitle.
    (e) Operation, Maintenance, and Replacement Cost Allocations—
       For purposes of determining the operation, maintenance, and replacement obligations of the Project Participants under this section, the Secretary shall review and, as appropriate, update the Draft Impact Statement that allocates operation, maintenance, and replacement costs for the Project.
    (f) Temporary Waivers of Payments—
       (1) IN GENERAL—
          On the date on which the Secretary declares a section of the Project to be substantially complete and delivery of water generated by and through that section of the Project can be made to the Nation, the Secretary may waive, for a period of not more than 10 years, the operation, maintenance, and replacement costs allocable to the Nation for that section of the Project that the Secretary determines are in excess of the ability of the Nation to pay.
       (2) SUBSEQUENT PAYMENT BY NATION—
          After a waiver under paragraph (1), the Nation shall pay all allocated operation, maintenance, and replacement costs of that section of the Project.
       (3) PAYMENT BY UNITED STATES—
          Any operation, maintenance, or replacement costs waived by the Secretary under paragraph (1) shall be paid by the United States and shall be nonreimbursable.
       (4) EFFECT ON CONTRACTS—
          Failure of the Secretary to waive costs under paragraph (1) because of a lack of availability of Federal funding to pay the costs under paragraph (3) shall not alter the obligations of the Nation or the United States under a repayment contract.
       (5) TERMINATION OF AUTHORITY—
          The authority of the Secretary to waive costs under paragraph (1) with respect to a Project facility transferred to the Nation under section 10602(f) shall terminate on the date on which the Project facility is transferred.
    (g) Project Construction Committee—
       The Secretary shall facilitate the formation of a project construction committee with the Project Participants and the State of New Mexico—
       (1) to review cost factors and budgets for construction and operation and maintenance activities;
       (2) to improve construction management through enhanced communication; and
       (3) to seek additional ways to reduce overall Project costs.

#### SEC. 10605. NAVAJO NATION MUNICIPAL PIPELINE.

    (a) Use of Navajo Nation Pipeline—
       In addition to use of the Navajo Nation Municipal Pipeline to convey the Animas-La Plata Project water of the Nation, the Nation may use the Navajo Nation Municipal Pipeline to convey non-Animas La Plata Project water for municipal and industrial purposes.
    (b) Conveyance of Title to Pipeline—
       (1) IN GENERAL—
          On completion of the Navajo Nation Municipal Pipeline, the Secretary may enter into separate agreements with the City of Farmington, New Mexico and the Nation to convey title to each portion of the Navajo Nation Municipal Pipeline facility or section of the Pipeline to the City of Farmington and the Nation after execution of a Project operations agreement approved by the Secretary, the Nation, and the City of Farmington that sets forth any terms and conditions that the Secretary determines are necessary.
       (2) CONVEYANCE TO THE CITY OF FARMINGTON OR NAVAJO NATION—
          In conveying title to the Navajo Nation Municipal Pipeline under this subsection, the Secretary shall convey—
          (A) to the City of Farmington, the facilities and any land or interest in land acquired by the United States for the construction, operation, and maintenance of the Pipeline that are located within the corporate boundaries of the City; and
          (B) to the Nation, the facilities and any land or interests in land acquired by the United States for the construction, operation, and maintenance of the Pipeline that are located outside the corporate boundaries of the City of Farmington.
       (3) EFFECT OF CONVEYANCE—
          The conveyance of title to the Pipeline shall not affect the application of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) relating to the use of water associated with the Animas-La Plata Project.
       (4) LIABILITY—
          (A) IN GENERAL—
             Effective on the date of the conveyance authorized by this subsection, the United States shall not be held liable by any court for damages of any kind arising out of any act, omission, or occurrence relating to the land, buildings, or facilities conveyed under this subsection, other than damages caused by acts of negligence committed by the United States or by employees or agents of the United States prior to the date of conveyance.
          (B) TORT CLAIMS—
             Nothing in this subsection increases the liability of the United States beyond the liability provided under chapter 171 of title 28, United States Code (commonly known as the `Federal Tort Claims Act').
       (5) NOTICE OF PROPOSED CONVEYANCE—
          Not later than 45 days before the date of a proposed conveyance of title to the Pipeline, the Secretary shall submit to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate, notice of the conveyance of the Pipeline.

#### SEC. 10606. AUTHORIZATION OF CONJUNCTIVE USE WELLS.

    (a) Conjunctive Groundwater Development Plan—
       Not later than 1 year after the date of enactment of this Act, the Nation, in consultation with the Secretary, shall complete a conjunctive groundwater development plan for the wells described in subsections (b) and (c).
    (b) Wells in the San Juan River Basin—
       In accordance with the conjunctive groundwater development plan, the Secretary may construct or rehabilitate wells and related pipeline facilities to provide capacity for the diversion and distribution of not more than 1,670 acre-feet of groundwater in the San Juan River Basin in the State of New Mexico for municipal and domestic uses.
    (c) Wells in the Little Colorado and Rio Grande Basins—
       (1) IN GENERAL—
          In accordance with the Project and conjunctive groundwater development plan for the Nation, the Secretary may construct or rehabilitate wells and related pipeline facilities to provide capacity for the diversion and distribution of—
          (A) not more than 680 acre-feet of groundwater in the Little Colorado River Basin in the State of New Mexico;
          (B) not more than 80 acre-feet of groundwater in the Rio Grande Basin in the State of New Mexico; and
          (C) not more than 770 acre-feet of groundwater in the Little Colorado River Basin in the State of Arizona.
       (2) USE—
          Groundwater diverted and distributed under paragraph (1) shall be used for municipal and domestic uses.
    (d) Acquisition of Land—
       (1) IN GENERAL—
          Except as provided in paragraph (2), the Secretary may acquire any land or interest in land that is necessary for the construction, operation, and maintenance of the wells and related pipeline facilities authorized under subsections (b) and (c).
       (2) LIMITATION—
          Nothing in this subsection authorizes the Secretary to condemn water rights for the purposes described in paragraph (1).
    (e) Condition—
       The Secretary shall not commence any construction activity relating to the wells described in subsections (b) and (c) until the Secretary executes the Agreement.
    (f) Conveyance of Wells—
       (1) IN GENERAL—
          On the determination of the Secretary that the wells and related facilities are substantially complete and delivery of water generated by the wells can be made to the Nation, an agreement with the Nation shall be entered into, to convey to the Nation title to—
          (A) any well or related pipeline facility constructed or rehabilitated under subsections (a) and (b) after the wells and related facilities have been completed; and
          (B) any land or interest in land acquired by the United States for the construction, operation, and maintenance of the well or related pipeline facility.
       (2) OPERATION, MAINTENANCE, AND REPLACEMENT—
          (A) IN GENERAL—
             The Secretary is authorized to pay operation and maintenance costs for the wells and related pipeline facilities authorized under this subsection until title to the facilities is conveyed to the Nation.
          (B) SUBSEQUENT ASSUMPTION BY NATION—
             On completion of a conveyance of title under paragraph (1), the Nation shall assume all responsibility for the operation and maintenance of the well or related pipeline facility conveyed.
       (3) EFFECT OF CONVEYANCE—
          The conveyance of title to the Nation of the conjunctive use wells under paragraph (1) shall not affect the application of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
    (g) Use of Project Facilities—
       The capacities of the treatment facilities, main pipelines, and lateral pipelines of the Project authorized by section 10602(b) may be used to treat and convey groundwater to Nation communities if the Nation provides for payment of the operation, maintenance, and replacement costs associated with the use of the facilities or pipelines.
    (h) Limitations—
       The diversion and use of groundwater by wells constructed or rehabilitated under this section shall be made in a manner consistent with applicable Federal and State law.

#### SEC. 10607. SAN JUAN RIVER NAVAJO IRRIGATION PROJECTS.

    (a) Rehabilitation—
       Subject to subsection (b), the Secretary shall rehabilitate—
       (1) the Fruitland-Cambridge Irrigation Project to serve not more than 3,335 acres of land, which shall be considered to be the total serviceable area of the project; and
       (2) the Hogback-Cudei Irrigation Project to serve not more than 8,830 acres of land, which shall be considered to be the total serviceable area of the project.
    (b) Condition—
       The Secretary shall not commence any construction activity relating to the rehabilitation of the Fruitland-Cambridge Irrigation Project or the Hogback-Cudei Irrigation Project under subsection (a) until the Secretary executes the Agreement.
    (c) Operation, Maintenance, and Replacement Obligation—
       The Nation shall continue to be responsible for the operation, maintenance, and replacement of each facility rehabilitated under this section.

#### SEC. 10608. OTHER IRRIGATION PROJECTS.

    (a) In General—
       Not later than 2 years after the date of enactment of this Act, the Secretary, in consultation with the State of New Mexico (acting through the Interstate Stream Commission) and the Non-Navajo Irrigation Districts that elect to participate, shall—
       (1) conduct a study of Non-Navajo Irrigation District diversion and ditch facilities; and
       (2) based on the study, identify and prioritize a list of projects, with associated cost estimates, that are recommended to be implemented to repair, rehabilitate, or reconstruct irrigation diversion and ditch facilities to improve water use efficiency.
    (b) Grants—
       The Secretary may provide grants to, and enter into cooperative agreements with, the Non-Navajo Irrigation Districts to plan, design, or otherwise implement the projects identified under subsection (a)(2).
    (c) Cost-Sharing—
       (1) FEDERAL SHARE—
          The Federal share of the total cost of carrying out a project under subsection (b) shall be not more than 50 percent, and shall be nonreimbursable.
       (2) FORM—
          The non-Federal share required under paragraph (1) may be in the form of in-kind contributions, including the contribution of any valuable asset or service that the Secretary determines would substantially contribute to a project carried out under subsection (b).
       (3) STATE CONTRIBUTION—
          The Secretary may accept from the State of New Mexico a partial or total contribution toward the non-Federal share for a project carried out under subsection (b).

#### SEC. 10609. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations for Navajo-Gallup Water Supply Project—
       (1) IN GENERAL—
          There is authorized to be appropriated to the Secretary to plan, design, and construct the Project $870,000,000 for the period of fiscal years 2009 through 2024, to remain available until expended.
       (2) ADJUSTMENTS—
          The amount under paragraph (1) shall be adjusted by such amounts as may be required by reason of changes since 2007 in construction costs, as indicated by engineering cost indices applicable to the types of construction involved.
       (3) USE—
          In addition to the uses authorized under paragraph (1), amounts made available under that paragraph may be used for the conduct of related activities to comply with Federal environmental laws.
       (4) OPERATION AND MAINTENANCE—
          (A) IN GENERAL—
             There are authorized to be appropriated such sums as are necessary to operate and maintain the Project consistent with this subtitle.
          (B) EXPIRATION—
             The authorization under subparagraph (A) shall expire 10 years after the year the Secretary declares the Project to be substantially complete.
    (b) Appropriations for Conjunctive Use Wells—
       (1) SAN JUAN WELLS—
          There is authorized to be appropriated to the Secretary for the construction or rehabilitation and operation and maintenance of conjunctive use wells under section 10606(b) $30,000,000, as adjusted under paragraph (3), for the period of fiscal years 2009 through 2019.
       (2) WELLS IN THE LITTLE COLORADO AND RIO GRANDE BASINS—
          There are authorized to be appropriated to the Secretary for the construction or rehabilitation and operation and maintenance of conjunctive use wells under section 10606(c) such sums as are necessary for the period of fiscal years 2009 through 2024.
       (3) ADJUSTMENTS—
          The amount under paragraph (1) shall be adjusted by such amounts as may be required by reason of changes since 2008 in construction costs, as indicated by engineering cost indices applicable to the types of construction or rehabilitation involved.
       (4) NONREIMBURSABLE EXPENDITURES—
          Amounts made available under paragraphs (1) and (2) shall be nonreimbursable to the United States.
       (5) USE—
          In addition to the uses authorized under paragraphs (1) and (2), amounts made available under that paragraph may be used for the conduct of related activities to comply with Federal environmental laws.
       (6) LIMITATION—
          Appropriations authorized under paragraph (1) shall not be used for operation or maintenance of any conjunctive use wells at a time in excess of 3 years after the well is declared substantially complete.
    (c) San Juan River Irrigation Projects—
       (1) IN GENERAL—
          There are authorized to be appropriated to the Secretary—
          (A) to carry out section 10607(a)(1), not more than $7,700,000, as adjusted under paragraph (2), for the period of fiscal years 2009 through 2016, to remain available until expended; and
          (B) to carry out section 10607(a)(2), not more than $15,400,000, as adjusted under paragraph (2), for the period of fiscal years 2009 through 2019, to remain available until expended.
       (2) ADJUSTMENT—
          The amounts made available under paragraph (1) shall be adjusted by such amounts as may be required by reason of changes since January 1, 2004, in construction costs, as indicated by engineering cost indices applicable to the types of construction involved in the rehabilitation.
       (3) NONREIMBURSABLE EXPENDITURES—
          Amounts made available under this subsection shall be nonreimbursable to the United States.
    (d) Other Irrigation Projects—
       There are authorized to be appropriated to the Secretary to carry out section 10608 $11,000,000 for the period of fiscal years 2009 through 2019.
    (e) Cultural Resources—
       (1) IN GENERAL—
          The Secretary may use not more than 2 percent of amounts made available under subsections (a), (b), and (c) for the survey, recovery, protection, preservation, and display of archaeological resources in the area of a Project facility or conjunctive use well.
       (2) NONREIMBURSABLE EXPENDITURES—
          Any amounts made available under paragraph (1) shall be nonreimbursable.
    (f) Fish and Wildlife Facilities—
       (1) IN GENERAL—
          In association with the development of the Project, the Secretary may use not more than 4 percent of amounts made available under subsections (a), (b), and (c) to purchase land and construct and maintain facilities to mitigate the loss of, and improve conditions for the propagation of, fish and wildlife if any such purchase, construction, or maintenance will not affect the operation of any water project or use of water.
       (2) NONREIMBURSABLE EXPENDITURES—
          Any amounts expended under paragraph (1) shall be nonreimbursable.

### PART IV—NAVAJO NATION WATER RIGHTS
#### SEC. 10701. AGREEMENT.

    (a) Agreement Approval—
       (1) APPROVAL BY CONGRESS—
          Except to the extent that any provision of the Agreement conflicts with this subtitle, Congress approves, ratifies, and confirms the Agreement (including any amendments to the Agreement that are executed to make the Agreement consistent with this subtitle).
       (2) EXECUTION BY SECRETARY—
          The Secretary shall enter into the Agreement to the extent that the Agreement does not conflict with this subtitle, including—
          (A) any exhibits to the Agreement requiring the signature of the Secretary; and
          (B) any amendments to the Agreement necessary to make the Agreement consistent with this subtitle.
       (3) AUTHORITY OF SECRETARY—
          The Secretary may carry out any action that the Secretary determines is necessary or appropriate to implement the Agreement, the Contract, and this section.
       (4) ADMINISTRATION OF NAVAJO RESERVOIR RELEASES—
          The State of New Mexico may administer water that has been released from storage in Navajo Reservoir in accordance with subparagraph 9.1 of the Agreement.
    (b) Water Available Under Contract—
       (1) QUANTITIES OF WATER AVAILABLE—
          (A) IN GENERAL—
             Water shall be made available annually under the Contract for projects in the State of New Mexico supplied from the Navajo Reservoir and the San Juan River (including tributaries of the River) under New Mexico State Engineer File Numbers 2849, 2883, and 3215 in the quantities described in subparagraph (B).
          (B) WATER QUANTITIES—
             The quantities of water referred to in subparagraph (A) are as follows:
————————————————————————————————————————————— Navajo Indian Irrigation Project 508,000 270,000 Navajo-Gallup Water Supply Project 22,650 20,780 Animas-La Plata Project 4,680 2,340 Total 535,330 293,120 —————————————————————————————————————————————
          (C) MAXIMUM QUANTITY—
             A diversion of water to the Nation under the Contract for a project described in subparagraph (B) shall not exceed the quantity of water necessary to supply the amount of depletion for the project.
          (D) TERMS, CONDITIONS, AND LIMITATIONS—
             The diversion and use of water under the Contract shall be subject to and consistent with the terms, conditions, and limitations of the Agreement, this subtitle, and any other applicable law.
       (2) AMENDMENTS TO CONTRACT—
          The Secretary, with the consent of the Nation, may amend the Contract if the Secretary determines that the amendment is—
          (A) consistent with the Agreement; and
          (B) in the interest of conserving water or facilitating beneficial use by the Nation or a subcontractor of the Nation.
       (3) RIGHTS OF THE NATION—
          The Nation may, under the Contract—
          (A) use tail water, wastewater, and return flows attributable to a use of the water by the Nation or a subcontractor of the Nation if—
             (i) the depletion of water does not exceed the quantities described in paragraph (1); and
             (ii) the use of tail water, wastewater, or return flows is consistent with the terms, conditions, and limitations of the Agreement, and any other applicable law; and
          (B) change a point of diversion, change a purpose or place of use, and transfer a right for depletion under this subtitle (except for a point of diversion, purpose or place of use, or right for depletion for use in the State of Arizona under section 10603(b)(2)(D)), to another use, purpose, place, or depletion in the State of New Mexico to meet a water resource or economic need of the Nation if—
             (i) the change or transfer is subject to and consistent with the terms of the Agreement, the Partial Final Decree described in paragraph 3.0 of the Agreement, the Contract, and any other applicable law; and
             (ii) a change or transfer of water use by the Nation does not alter any obligation of the United States, the Nation, or another party to pay or repay project construction, operation, maintenance, or replacement costs under this subtitle and the Contract.
    (c) Subcontracts—
       (1) IN GENERAL—
          (A) SUBCONTRACTS BETWEEN NATION AND THIRD PARTIES—
             The Nation may enter into subcontracts for the delivery of Project water under the Contract to third parties for any beneficial use in the State of New Mexico (on or off land held by the United States in trust for the Nation or a member of the Nation or land held in fee by the Nation).
          (B) APPROVAL REQUIRED—
             A subcontract entered into under subparagraph (A) shall not be effective until approved by the Secretary in accordance with this subsection and the Contract.
          (C) SUBMITTAL—
             The Nation shall submit to the Secretary for approval or disapproval any subcontract entered into under this subsection.
          (D) DEADLINE—
             The Secretary shall approve or disapprove a subcontract submitted to the Secretary under subparagraph (C) not later than the later of—
             (i) the date that is 180 days after the date on which the subcontract is submitted to the Secretary; and
             (ii) the date that is 60 days after the date on which a subcontractor complies with—
                (I) section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)); and
                (II) any other requirement of Federal law.
          (E) ENFORCEMENT—
             A party to a subcontract may enforce the deadline described in subparagraph (D) under section 1361 of title 28, United States Code.
          (F) COMPLIANCE WITH OTHER LAW—
             A subcontract described in subparagraph (A) shall comply with the Agreement, the Partial Final Decree described in paragraph 3.0 of the Agreement, and any other applicable law.
          (G) NO LIABILITY—
             The Secretary shall not be liable to any party, including the Nation, for any term of, or any loss or other detriment resulting from, a lease, contract, or other agreement entered into pursuant to this subsection.
       (2) ALIENATION—
          (A) PERMANENT ALIENATION—
             The Nation shall not permanently alienate any right granted to the Nation under the Contract.
          (B) MAXIMUM TERM—
             The term of any water use subcontract (including a renewal) under this subsection shall be not more than 99 years.
       (3) NONINTERCOURSE ACT COMPLIANCE—
          This subsection—
          (A) provides congressional authorization for the subcontracting rights of the Nation; and
          (B) is deemed to fulfill any requirement that may be imposed by section 2116 of the Revised Statutes (25 U.S.C. 177).
       (4) FORFEITURE—
          The nonuse of the water supply secured by a subcontractor of the Nation under this subsection shall not result in forfeiture, abandonment, relinquishment, or other loss of any part of a right decreed to the Nation under the Contract or this section.
       (5) NO PER CAPITA PAYMENTS—
          No part of the revenue from a water use subcontract under this subsection shall be distributed to any member of the Nation on a per capita basis.
    (d) Water Leases Not Requiring Subcontracts—
       (1) AUTHORITY OF NATION—
          (A) IN GENERAL—
             The Nation may lease, contract, or otherwise transfer to another party or to another purpose or place of use in the State of New Mexico (on or off land that is held by the United States in trust for the Nation or a member of the Nation or held in fee by the Nation) a water right that—
             (i) is decreed to the Nation under the Agreement; and
             (ii) is not subject to the Contract.
          (B) COMPLIANCE WITH OTHER LAW—
             In carrying out an action under this subsection, the Nation shall comply with the Agreement, the Partial Final Decree described in paragraph 3.0 of the Agreement, the Supplemental Partial Final Decree described in paragraph 4.0 of the Agreement, and any other applicable law.
       (2) ALIENATION; MAXIMUM TERM—
          (A) ALIENATION—
             The Nation shall not permanently alienate any right granted to the Nation under the Agreement.
          (B) MAXIMUM TERM—
             The term of any water use lease, contract, or other arrangement (including a renewal) under this subsection shall be not more than 99 years.
       (3) NO LIABILITY—
          The Secretary shall not be liable to any party, including the Nation, for any term of, or any loss or other detriment resulting from, a lease, contract, or other agreement entered into pursuant to this subsection.
       (4) NONINTERCOURSE ACT COMPLIANCE—
          This subsection—
          (A) provides congressional authorization for the lease, contracting, and transfer of any water right described in paragraph (1)(A); and
          (B) is deemed to fulfill any requirement that may be imposed by the provisions of section 2116 of the Revised Statutes (25 U.S.C. 177).
       (5) FORFEITURE—
          The nonuse of a water right of the Nation by a lessee or contractor to the Nation under this subsection shall not result in forfeiture, abandonment, relinquishment, or other loss of any part of a right decreed to the Nation under the Contract or this section.
    (e) Nullification—
       (1) DEADLINES—
          (A) IN GENERAL—
             In carrying out this section, the following deadlines apply with respect to implementation of the Agreement:
             (i) AGREEMENT—
       Not later than December 31, 2010, the Secretary shall execute the Agreement.
             (ii) CONTRACT- Not later than December 31, 2010, the Secretary and the Nation shall execute the Contract.
             (iii) PARTIAL FINAL DECREE- Not later than December 31, 2013, the court in the stream adjudication shall have entered the Partial Final Decree described in paragraph 3.0 of the Agreement.
             (iv) FRUITLAND-CAMBRIDGE IRRIGATION PROJECT- Not later than December 31, 2016, the rehabilitation construction of the Fruitland-Cambridge Irrigation Project authorized under section 10607(a)(1) shall be completed.
             (v) SUPPLEMENTAL PARTIAL FINAL DECREE—
       Not later than December 31, 2016, the court in the stream adjudication shall enter the Supplemental Partial Final Decree described in subparagraph 4.0 of the Agreement.
             (vi) HOGBACK-CUDEI IRRIGATION PROJECT- Not later than December 31, 2019, the rehabilitation construction of the Hogback-Cudei Irrigation Project authorized under section 10607(a)(2) shall be completed.
             (vii) TRUST FUND- Not later than December 31, 2019, the United States shall make all deposits into the Trust Fund under section 10702.
             (viii) CONJUNCTIVE WELLS- Not later than December 31, 2019, the funds authorized to be appropriated under section 10609(b)(1) for the conjunctive use wells authorized under section 10606(b) should be appropriated.
             (ix) NAVAJO-GALLUP WATER SUPPLY PROJECT- Not later than December 31, 2024, the construction of all Project facilities shall be completed.
          (B) EXTENSION—
             A deadline described in subparagraph (A) may be extended if the Nation, the United States (acting through the Secretary), and the State of New Mexico (acting through the New Mexico Interstate Stream Commission) agree that an extension is reasonably necessary.
       (2) REVOCABILITY OF AGREEMENT, CONTRACT AND AUTHORIZATIONS—
          (A) PETITION—
             If the Nation determines that a deadline described in paragraph (1)(A) is not substantially met, the Nation may submit to the court in the stream adjudication a petition to enter an order terminating the Agreement and Contract.
          (B) TERMINATION—
             On issuance of an order to terminate the Agreement and Contract under subparagraph (A)—
             (i) the Trust Fund shall be terminated;
             (ii) the balance of the Trust Fund shall be deposited in the general fund of the Treasury;
             (iii) the authorizations for construction and rehabilitation of water projects under this subtitle shall be revoked and any Federal activity related to that construction and rehabilitation shall be suspended; and
             (iv) this part and parts I and III shall be null and void.
       (3) CONDITIONS NOT CAUSING NULLIFICATION OF SETTLEMENT—
          (A) IN GENERAL—
             If a condition described in subparagraph (B) occurs, the Agreement and Contract shall not be nullified or terminated.
          (B) CONDITIONS—
             The conditions referred to in subparagraph (A) are as follows:
             (i) A lack of right to divert at the capacities of conjunctive use wells constructed or rehabilitated under section 10606.
             (ii) A failure—
                (I) to determine or resolve an accounting of the use of water under this subtitle in the State of Arizona;
                (II) to obtain a necessary water right for the consumptive use of water in Arizona;
                (III) to contract for the delivery of water for use in Arizona; or
                (IV) to construct and operate a lateral facility to deliver water to a community of the Nation in Arizona, under the Project.
    (f) Effect on Rights of Indian Tribes—
       (1) IN GENERAL—
          Except as provided in paragraph (2), nothing in the Agreement, the Contract, or this section quantifies or adversely affects the land and water rights, or claims or entitlements to water, of any Indian tribe or community other than the rights, claims, or entitlements of the Nation in, to, and from the San Juan River Basin in the State of New Mexico.
       (2) EXCEPTION—
          The right of the Nation to use water under water rights the Nation has in other river basins in the State of New Mexico shall be forborne to the extent that the Nation supplies the uses for which the water rights exist by diversions of water from the San Juan River Basin under the Project consistent with subparagraph 9.13 of the Agreement.

#### SEC. 10702. TRUST FUND.

    (a) Establishment—
       There is established in the Treasury a fund to be known as the `Navajo Nation Water Resources Development Trust Fund', consisting of—
       (1) such amounts as are appropriated to the Trust Fund under subsection (f); and
       (2) any interest earned on investment of amounts in the Trust Fund under subsection (d).
    (b) Use of Funds—
       The Nation may use amounts in the Trust Fund—
       (1) to investigate, construct, operate, maintain, or replace water project facilities, including facilities conveyed to the Nation under this subtitle and facilities owned by the United States for which the Nation is responsible for operation, maintenance, and replacement costs; and
       (2) to investigate, implement, or improve a water conservation measure (including a metering or monitoring activity) necessary for the Nation to make use of a water right of the Nation under the Agreement.
    (c) Management—
       The Secretary shall manage the Trust Fund, invest amounts in the Trust Fund pursuant to subsection (d), and make amounts available from the Trust Fund for distribution to the Nation in accordance with the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.).
    (d) Investment of the Trust Fund—
       Beginning on October 1, 2019, the Secretary shall invest amounts in the Trust Fund in accordance with—
       (1) the Act of April 1, 1880 (25 U.S.C. 161);
       (2) the first section of the Act of June 24, 1938 (25 U.S.C. 162a); and
       (3) the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.).
    (e) Conditions for Expenditures and Withdrawals—
       (1) TRIBAL MANAGEMENT PLAN—
          (A) IN GENERAL—
             Subject to paragraph (7), on approval by the Secretary of a tribal management plan in accordance with the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), the Nation may withdraw all or a portion of the amounts in the Trust Fund.
          (B) REQUIREMENTS—
             In addition to any requirements under the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), the tribal management plan shall require that the Nation only use amounts in the Trust Fund for the purposes described in subsection (b), including the identification of water conservation measures to be implemented in association with the agricultural water use of the Nation.
       (2) ENFORCEMENT—
          The Secretary may take judicial or administrative action to enforce the provisions of any tribal management plan to ensure that any amounts withdrawn from the Trust Fund are used in accordance with this subtitle.
       (3) NO LIABILITY—
          Neither the Secretary nor the Secretary of the Treasury shall be liable for the expenditure or investment of any amounts withdrawn from the Trust Fund by the Nation.
       (4) EXPENDITURE PLAN—
          (A) IN GENERAL—
             The Nation shall submit to the Secretary for approval an expenditure plan for any portion of the amounts in the Trust Fund made available under this section that the Nation does not withdraw under this subsection.
          (B) DESCRIPTION—
             The expenditure plan shall describe the manner in which, and the purposes for which, funds of the Nation remaining in the Trust Fund will be used.
          (C) APPROVAL—
             On receipt of an expenditure plan under subparagraph (A), the Secretary shall approve the plan if the Secretary determines that the plan is reasonable and consistent with this subtitle.
       (5) ANNUAL REPORT—
          The Nation shall submit to the Secretary an annual report that describes any expenditures from the Trust Fund during the year covered by the report.
       (6) LIMITATION—
          No portion of the amounts in the Trust Fund shall be distributed to any Nation member on a per capita basis.
       (7) CONDITIONS—
          Any amount authorized to be appropriated to the Trust Fund under subsection (f) shall not be available for expenditure or withdrawal—
          (A) before December 31, 2019; and
          (B) until the date on which the court in the stream adjudication has entered—
             (i) the Partial Final Decree; and
             (ii) the Supplemental Partial Final Decree.
    (f) Authorization of Appropriations—
       There are authorized to be appropriated for deposit in the Trust Fund—
       (1) $6,000,000 for each of fiscal years 2010 through 2014; and
       (2) $4,000,000 for each of fiscal years 2015 through 2019.

#### SEC. 10703. WAIVERS AND RELEASES.

    (a) Claims by the Nation and the United States—
       In return for recognition of the Nation's water rights and other benefits, including but not limited to the commitments by other parties, as set forth in the Agreement and this subtitle, the Nation, on behalf of itself and members of the Nation (other than members in the capacity of the members as allottees), and the United States acting in its capacity as trustee for the Nation, shall execute a waiver and release of—
       (1) all claims for water rights in, or for waters of, the San Juan River Basin in the State of New Mexico that the Nation, or the United States as trustee for the Nation, asserted, or could have asserted, in any proceeding, including but not limited to the stream adjudication, up to and including the effective date described in subsection (e), except to the extent that such rights are recognized in the Agreement or this subtitle;
       (2) all claims for damages, losses, or injuries to water rights or claims of interference with, diversion, or taking of water (including but not limited to claims for injury to lands resulting from such damages, losses, injuries, interference with, diversion, or taking) in the San Juan River Basin in the State of New Mexico that accrued at any time up to and including the effective date described in subsection (e);
       (3) all claims of any damage, loss, or injury or for injunctive or other relief because of the condition of or changes in water quality related to, or arising out of, the exercise of water rights; and
       (4) all claims against the State of New Mexico, its agencies, or employees relating to the negotiation or the adoption of the Agreement.
    (b) Claims by the Nation Against the United States—
       The Nation, on behalf of itself and its members (other than in the capacity of the members as allottees), shall execute a waiver and release of—
       (1) all claims against the United States, its agencies, or employees relating to claims for water rights in or waters of the San Juan River Basin in the State of New Mexico that the United States, acting in its capacity as trustee for the Nation, asserted, or could have asserted, in any proceeding, including but not limited to the stream adjudication;
       (2) all claims against the United States, its agencies, or employees relating to damages, losses, or injuries to water, water rights, land, or natural resources due to loss of water or water rights (including but not limited to damages, losses, or injuries to hunting, fishing, gathering, or cultural rights due to loss of water or water rights; claims relating to inference with, diversion, or taking of water or water rights; or claims relating to failure to protect, acquire, replace, or develop water or water rights) in the San Juan River Basin in the State of New Mexico that first accrued at any time up to and including the effective date described in subsection (e);
       (3) all claims against the United States, its agencies, or employees relating to the pending litigation of claims relating to the Nation's water rights in the stream adjudication; and
       (4) all claims against the United States, its agencies, or employees relating to the negotiation, execution, or the adoption of the Agreement, the decrees, the Contract, or this subtitle.
    (c) Reservation of Claims—
       Notwithstanding the waivers and releases authorized in this subtitle, the Nation on behalf of itself and its members (including members in the capacity of the members as allottees) and the United States acting in its capacity as trustee for the Nation and allottees, retain—
       (1) all claims for water rights or injuries to water rights arising out of activities occurring outside the San Juan River Basin in the State of New Mexico, subject to paragraphs 8.0, 9.3, 9.12, 9.13, and 13.9 of the Agreement;
       (2) all claims for enforcement of the Agreement, the Contract, the Partial Final Decree, the Supplemental Partial Final Decree, or this subtitle, through any legal and equitable remedies available in any court of competent jurisdiction;
       (3) all rights to use and protect water rights acquired pursuant to State law after the date of enactment of this Act;
       (4) all claims relating to activities affecting the quality of water not related to the exercise of water rights, including but not limited to any claims the Nation might have under—
          (A) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.);
          (B) the Safe Drinking Water Act (42 U.S.C. 300f et seq.); and
          (C) the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.);
       (5) all claims relating to damages, losses, or injuries to land or natural resources not due to loss of water or water rights; and
       (6) all rights, remedies, privileges, immunities, and powers not specifically waived and released under the terms of the Agreement or this subtitle.
    (d) Tolling of Claims—
       (1) IN GENERAL—
          Each applicable period of limitation and time-based equitable defense relating to a claim described in this section shall be tolled for the period beginning on the date of enactment of this Act and ending on the earlier of—
          (A) March 1, 2025; or
          (B) the effective date described in subsection (e).
       (2) EFFECT OF SUBSECTION—
          Nothing in this subsection revives any claim or tolls any period of limitation or time-based equitable defense that expired before the date of enactment of this Act.
       (3) LIMITATION—
          Nothing in this section precludes the tolling of any period of limitations or any time-based equitable defense under any other applicable law.
    (e) Effective Date—
       (1) IN GENERAL—
          The waivers and releases described in subsections (a) and (b) shall be effective on the date on which the Secretary publishes in the Federal Register a statement of findings documenting that each of the deadlines described in section 10701(e)(1) have been met.
       (2) DEADLINE—
          If the deadlines described in section 10701(e)(1)(A) have not been met by the later of March 1, 2025, or the date of any extension under section 10701(e)(1)(B)—
          (A) the waivers and releases described in subsections (a) and (b) shall be of no effect; and
          (B) section 10701(e)(2)(B) shall apply.

#### SEC. 10704. WATER RIGHTS HELD IN TRUST.

    A tribal water right adjudicated and described in paragraph 3.0 of the Partial Final Decree and in paragraph 3.0 of the Supplemental Partial Final Decree shall be held in trust by the United States on behalf of the Nation.

## Subtitle C—Shoshone-Paiute Tribes of the Duck Valley Reservation Water Rights Settlement
### SEC. 10801. FINDINGS.

    Congress finds that—
       (1) it is the policy of the United States, in accordance with the trust responsibility of the United States to Indian tribes, to promote Indian self-determination and economic self-sufficiency and to settle Indian water rights claims without lengthy and costly litigation, if practicable;
       (2) quantifying rights to water and development of facilities needed to use tribal water supplies is essential to the development of viable Indian reservation economies and the establishment of a permanent reservation homeland;
       (3) uncertainty concerning the extent of the Shoshone-Paiute Tribes' water rights has resulted in limited access to water and inadequate financial resources necessary to achieve self-determination and self-sufficiency;
       (4) in 2006, the Tribes, the State of Idaho, the affected individual water users, and the United States resolved all tribal claims to water rights in the Snake River Basin Adjudication through a consent decree entered by the District Court of the Fifth Judicial District of the State of Idaho, requiring no further Federal action to quantify the Tribes' water rights in the State of Idaho;
       (5) as of the date of enactment of this Act, proceedings to determine the extent and nature of the water rights of the Tribes in the East Fork of the Owyhee River in Nevada are pending before the Nevada State Engineer;
       (6) final resolution of the Tribes' water claims in the East Fork of the Owyhee River adjudication will—
          (A) take many years;
          (B) entail great expense;
          (C) continue to limit the access of the Tribes to water, with economic and social consequences;
          (D) prolong uncertainty relating to the availability of water supplies; and
          (E) seriously impair long-term economic planning and development for all parties to the litigation;
       (7) after many years of negotiation, the Tribes, the State, and the upstream water users have entered into a settlement agreement to resolve permanently all water rights of the Tribes in the State; and
       (8) the Tribes also seek to resolve certain water-related claims for damages against the United States.

### SEC. 10802. PURPOSES.

    The purposes of this subtitle are—
       (1) to resolve outstanding issues with respect to the East Fork of the Owyhee River in the State in such a manner as to provide important benefits to—
          (A) the United States;
          (B) the State;
          (C) the Tribes; and
          (D) the upstream water users;
       (2) to achieve a fair, equitable, and final settlement of all claims of the Tribes, members of the Tribes, and the United States on behalf of the Tribes and members of Tribes to the waters of the East Fork of the Owyhee River in the State;
       (3) to ratify and provide for the enforcement of the Agreement among the parties to the litigation;
       (4) to resolve the Tribes' water-related claims for damages against the United States;
       (5) to require the Secretary to perform all obligations of the Secretary under the Agreement and this subtitle; and
       (6) to authorize the actions and appropriations necessary to meet the obligations of the United States under the Agreement and this subtitle.

### SEC. 10803. DEFINITIONS.

    In this subtitle:
       (1) AGREEMENT—
          The term `Agreement' means the agreement entitled the `Agreement to Establish the Relative Water Rights of the Shoshone-Paiute Tribes of the Duck Valley Reservation and the Upstream Water Users, East Fork Owyhee River' and signed in counterpart between, on, or about September 22, 2006, and January 15, 2007 (including all attachments to that Agreement).
       (2) DEVELOPMENT FUND—
          The term `Development Fund' means the Shoshone-Paiute Tribes Water Rights Development Fund established by section 10807(b)(1).
       (3) EAST FORK OF THE OWYHEE RIVER—
          The term `East Fork of the Owyhee River' means the portion of the east fork of the Owyhee River that is located in the State.
       (4) MAINTENANCE FUND—
          The term `Maintenance Fund' means the Shoshone-Paiute Tribes Operation and Maintenance Fund established by section 10807(c)(1).
       (5) RESERVATION—
          The term `Reservation' means the Duck Valley Reservation established by the Executive order dated April 16, 1877, as adjusted pursuant to the Executive order dated May 4, 1886, and Executive order numbered 1222 and dated July 1, 1910, for use and occupation by the Western Shoshones and the Paddy Cap Band of Paiutes.
       (6) SECRETARY—
          The term `Secretary' means the Secretary of the Interior.
       (7) STATE—
          The term `State' means the State of Nevada.
       (8) TRIBAL WATER RIGHTS—
          The term `tribal water rights' means rights of the Tribes described in the Agreement relating to water, including groundwater, storage water, and surface water.
       (9) TRIBES—
          The term `Tribes' means the Shoshone-Paiute Tribes of the Duck Valley Reservation.
       (10) UPSTREAM WATER USER—
          The term `upstream water user' means a non-Federal water user that—
          (A) is located upstream from the Reservation on the East Fork of the Owyhee River; and
          (B) is a signatory to the Agreement as a party to the East Fork of the Owyhee River adjudication.

### SEC. 10804. APPROVAL, RATIFICATION, AND CONFIRMATION OF AGREEMENT; AUTHORIZATION.

    (a) In General—
       Except as provided in subsection (c) and except to the extent that the Agreement otherwise conflicts with provisions of this subtitle, the Agreement is approved, ratified, and confirmed.
    (b) Secretarial Authorization—
       The Secretary is authorized and directed to execute the Agreement as approved by Congress.
    (c) Exception for Tribal Water Marketing—
       Notwithstanding any language in the Agreement to the contrary, nothing in this subtitle authorizes the Tribes to use or authorize others to use tribal water rights off the Reservation, other than use for storage at Wild Horse Reservoir for use on tribal land and for the allocation of 265 acre feet to upstream water users under the Agreement, or use on tribal land off the Reservation.
    (d) Environmental Compliance—
       Execution of the Agreement by the Secretary under this section shall not constitute major Federal action under the National Environmental Policy Act (42 U.S.C. 4321 et seq.). The Secretary shall carry out all environmental compliance required by Federal law in implementing the Agreement.
    (e) Performance of Obligations—
       The Secretary and any other head of a Federal agency obligated under the Agreement shall perform actions necessary to carry out an obligation under the Agreement in accordance with this subtitle.

### SEC. 10805. TRIBAL WATER RIGHTS.

    (a) In General—
       Tribal water rights shall be held in trust by the United States for the benefit of the Tribes.
    (b) Administration—
       (1) ENACTMENT OF WATER CODE—
          Not later than 3 years after the date of enactment of this Act, the Tribes, in accordance with provisions of the Tribes' constitution and subject to the approval of the Secretary, shall enact a water code to administer tribal water rights.
       (2) INTERIM ADMINISTRATION—
          The Secretary shall regulate the tribal water rights during the period beginning on the date of enactment of this Act and ending on the date on which the Tribes enact a water code under paragraph (1).
    (c) Tribal Water Rights Not Subject to Loss—
       The tribal water rights shall not be subject to loss by abandonment, forfeiture, or nonuse.

### SEC. 10806. DUCK VALLEY INDIAN IRRIGATION PROJECT.

    (a) Status of the Duck Valley Indian Irrigation Project—
       Nothing in this subtitle shall affect the status of the Duck Valley Indian Irrigation Project under Federal law.
    (b) Capital Costs Nonreimbursable—
       The capital costs associated with the Duck Valley Indian Irrigation Project as of the date of enactment of this Act, including any capital cost incurred with funds distributed under this subtitle for the Duck Valley Indian Irrigation Project, shall be nonreimbursable.

### SEC. 10807. DEVELOPMENT AND MAINTENANCE FUNDS.

    (a) Definition of Funds—
       In this section, the term `Funds' means—
       (1) the Development Fund; and
       (2) the Maintenance Fund.
    (b) Development Fund—
       (1) ESTABLISHMENT—
          There is established in the Treasury of the United States a fund to be known as the `Shoshone-Paiute Tribes Water Rights Development Fund'.
       (2) USE OF FUNDS—
          (A) PRIORITY USE OF FUNDS FOR REHABILITATION—
             The Tribes shall use amounts in the Development Fund to—
             (i) rehabilitate the Duck Valley Indian Irrigation Project; or
             (ii) for other purposes under subparagraph (B), provided that the Tribes have given written notification to the Secretary that—
                (I) the Duck Valley Indian Irrigation Project has been rehabilitated to an acceptable condition; or
                (II) sufficient funds will remain available from the Development Fund to rehabilitate the Duck Valley Indian Irrigation Project to an acceptable condition after expending funds for other purposes under subparagraph (B).
          (B) OTHER USES OF FUNDS—
             Once the Tribes have provided written notification as provided in subparagraph (A)(ii)(I) or (A)(ii)(II), the Tribes may use amounts from the Development Fund for any of the following purposes:
             (i) To expand the Duck Valley Indian Irrigation Project.
             (ii) To pay or reimburse costs incurred by the Tribes in acquiring land and water rights.
             (iii) For purposes of cultural preservation.
             (iv) To restore or improve fish or wildlife habitat.
             (v) For fish or wildlife production, water resource development, or agricultural development.
             (vi) For water resource planning and development.
             (vii) To pay the costs of—
                (I) designing and constructing water supply and sewer systems for tribal communities, including a water quality testing laboratory;
                (II) other appropriate water-related projects and other related economic development projects;
                (III) the development of a water code; and
                (IV) other costs of implementing the Agreement.
       (3) AUTHORIZATION OF APPROPRIATIONS—
          There is authorized to be appropriated to the Secretary for deposit in the Development Fund $9,000,000 for each of fiscal years 2010 through 2014.
    (c) Maintenance Fund—
       (1) ESTABLISHMENT—
          There is established in the Treasury of the United States a fund to be known as the `Shoshone-Paiute Tribes Operation and Maintenance Fund'.
       (2) USE OF FUNDS—
          The Tribes shall use amounts in the Maintenance Fund to pay or provide reimbursement for—
          (A) operation, maintenance, and replacement costs of the Duck Valley Indian Irrigation Project and other water-related projects funded under this subtitle; or
          (B) operation, maintenance, and replacement costs of water supply and sewer systems for tribal communities, including the operation and maintenance costs of a water quality testing laboratory.
       (3) AUTHORIZATION OF APPROPRIATIONS—
          There is authorized to be appropriated to the Secretary for deposit in the Maintenance Fund $3,000,000 for each of fiscal years 2010 through 2014.
    (d) Availability of Amounts From Funds—
       Amounts made available under subsections (b)(3) and (c)(3) shall be available for expenditure or withdrawal only after the effective date described in section 10808(d).
    (e) Administration of Funds—
       Upon completion of the actions described in section 10808(d), the Secretary, in accordance with the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.) shall manage the Funds, including by investing amounts from the Funds in accordance with the Act of April 1, 1880 (25 U.S.C. 161), and the first section of the Act of June 24, 1938 (25 U.S.C. 162a).
    (f) Expenditures and Withdrawal—
       (1) TRIBAL MANAGEMENT PLAN—
          (A) IN GENERAL—
             The Tribes may withdraw all or part of amounts in the Funds on approval by the Secretary of a tribal management plan as described in the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.).
          (B) REQUIREMENTS—
             In addition to the requirements under the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), the tribal management plan shall require that the Tribes spend any amounts withdrawn from the Funds in accordance with the purposes described in subsection (b)(2) or (c)(2).
          (C) ENFORCEMENT—
             The Secretary may take judicial or administrative action to enforce the provisions of any tribal management plan to ensure that any amounts withdrawn from the Funds under the plan are used in accordance with this subtitle and the Agreement.
          (D) LIABILITY—
             If the Tribes exercise the right to withdraw amounts from the Funds, neither the Secretary nor the Secretary of the Treasury shall retain any liability for the expenditure or investment of the amounts.
       (2) EXPENDITURE PLAN—
          (A) IN GENERAL—
             The Tribes shall submit to the Secretary for approval an expenditure plan for any portion of the amounts in the Funds that the Tribes do not withdraw under the tribal management plan.
          (B) DESCRIPTION—
             The expenditure plan shall describe the manner in which, and the purposes for which, amounts of the Tribes remaining in the Funds will be used.
          (C) APPROVAL—
             On receipt of an expenditure plan under subparagraph (A), the Secretary shall approve the plan if the Secretary determines that the plan is reasonable and consistent with this subtitle and the Agreement.
          (D) ANNUAL REPORT—
             For each Fund, the Tribes shall submit to the Secretary an annual report that describes all expenditures from the Fund during the year covered by the report.
       (3) FUNDING AGREEMENT—
          Notwithstanding any other provision of this subtitle, on receipt of a request from the Tribes, the Secretary shall include an amount from funds made available under this section in the funding agreement of the Tribes under title IV of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 458aa et seq.), for use in accordance with subsections (b)(2) and (c)(2). No amount made available under this subtitle may be requested until the waivers under section 10808(a) take effect.
    (g) No Per Capita Payments—
       No amount from the Funds (including any interest income that would have accrued to the Funds after the effective date) shall be distributed to a member of the Tribes on a per capita basis.

### SEC. 10808. TRIBAL WAIVER AND RELEASE OF CLAIMS.

    (a) Waiver and Release of Claims by Tribes and United States Acting as Trustee for Tribes—
       In return for recognition of the Tribes' water rights and other benefits as set forth in the Agreement and this subtitle, the Tribes, on behalf of themselves and their members, and the United States acting in its capacity as trustee for the Tribes are authorized to execute a waiver and release of—
       (1) all claims for water rights in the State of Nevada that the Tribes, or the United States acting in its capacity as trustee for the Tribes, asserted, or could have asserted, in any proceeding, including pending proceedings before the Nevada State Engineer to determine the extent and nature of the water rights of the Tribes in the East Fork of the Owyhee River in Nevada, up to and including the effective date, except to the extent that such rights are recognized in the Agreement or this subtitle; and
       (2) all claims for damages, losses or injuries to water rights or claims of interference with, diversion or taking of water rights (including claims for injury to lands resulting from such damages, losses, injuries, interference with, diversion, or taking of water rights) within the State of Nevada that accrued at any time up to and including the effective date.
    (b) Waiver and Release of Claims by Tribes Against United States—
       The Tribes, on behalf of themselves and their members, are authorized to execute a waiver and release of—
       (1) all claims against the United States, its agencies, or employees, relating in any manner to claims for water rights in or water of the States of Nevada and Idaho that the United States acting in its capacity as trustee for the Tribes asserted, or could have asserted, in any proceeding, including pending proceedings before the Nevada State Engineer to determine the extent and nature of the water rights of the Tribes in the East Fork of the Owyhee River in Nevada, and the Snake River Basin Adjudication in Idaho;
       (2) all claims against the United States, its agencies, or employees relating in any manner to damages, losses, or injuries to water, water rights, land, or other resources due to loss of water or water rights (including damages, losses or injuries to fishing and other similar rights due to loss of water or water rights; claims relating to interference with, diversion or taking of water; or claims relating to failure to protect, acquire, replace, or develop water, water rights or water infrastructure) within the States of Nevada and Idaho that first accrued at any time up to and including the effective date;
       (3) all claims against the United States, its agencies, or employees relating to the operation, maintenance, or rehabilitation of the Duck Valley Indian Irrigation Project that first accrued at any time up to and including the date upon which the Tribes notify the Secretary as provided in section 10807(b)(2)(A)(ii)(I) that the rehabilitation of the Duck Valley Indian Irrigation Project under this subtitle to an acceptable level has been accomplished;
       (4) all claims against the United States, its agencies, or employees relating in any manner to the litigation of claims relating to the Tribes' water rights in pending proceedings before the Nevada State Engineer to determine the extent and nature of the water rights of the Tribes in the East Fork of the Owyhee River in Nevada or the Snake River Basin Adjudication in Idaho; and
       (5) all claims against the United States, its agencies, or employees relating in any manner to the negotiation, execution, or adoption of the Agreement, exhibits thereto, the decree referred to in subsection (d)(2), or this subtitle.
    (c) Reservation of Rights and Retention of Claims—
       Notwithstanding the waivers and releases authorized in this subtitle, the Tribes on their own behalf and the United States acting in its capacity as trustee for the Tribes retain—
       (1) all claims for enforcement of the Agreement, the decree referred to in subsection (d)(2), or this subtitle, through such legal and equitable remedies as may be available in the decree court or the appropriate Federal court;
       (2) all rights to acquire a water right in a State to the same extent as any other entity in the State, in accordance with State law, and to use and protect water rights acquired after the date of enactment of this Act;
       (3) all claims relating to activities affecting the quality of water including any claims the Tribes might have under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) (including claims for damages to natural resources), the Safe Drinking Water Act (42 U.S.C. 300f et seq.), the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), and the regulations implementing those Acts; and
       (4) all rights, remedies, privileges, immunities, and powers not specifically waived and released pursuant to this subtitle.
    (d) Effective Date—
       Notwithstanding anything in the Agreement to the contrary, the waivers by the Tribes, or the United States on behalf of the Tribes, under this section shall take effect on the date on which the Secretary publishes in the Federal Register a statement of findings that includes a finding that—
       (1) the Agreement and the waivers and releases authorized and set forth in subsections (a) and (b) have been executed by the parties and the Secretary;
       (2) the Fourth Judicial District Court, Elko County, Nevada, has issued a judgment and decree consistent with the Agreement from which no further appeal can be taken; and
       (3) the amounts authorized under subsections (b)(3) and (c)(3) of section 10807 have been appropriated.
    (e) Failure To Publish Statement of Findings—
       If the Secretary does not publish a statement of findings under subsection (d) by March 31, 2016—
       (1) the Agreement and this subtitle shall not take effect; and
       (2) any funds that have been appropriated under this subtitle shall immediately revert to the general fund of the United States Treasury.
    (f) Tolling of Claims—
       (1) IN GENERAL—
          Each applicable period of limitation and time-based equitable defense relating to a claim described in this section shall be tolled for the period beginning on the date of enactment of this Act and ending on the date on which the amounts authorized to be appropriated under subsections (b)(3) and (c)(3) of section 10807 are appropriated.
       (2) EFFECT OF SUBPARAGRAPH—
          Nothing in this subparagraph revives any claim or tolls any period of limitation or time-based equitable defense that expired before the date of enactment of this Act.

### SEC. 10809. MISCELLANEOUS.

    (a) General Disclaimer—
       The parties to the Agreement expressly reserve all rights not specifically granted, recognized, or relinquished by—
       (1) the settlement described in the Agreement; or
       (2) this subtitle.
    (b) Limitation of Claims and Rights—
       Nothing in this subtitle—
       (1) establishes a standard for quantifying—
          (A) a Federal reserved water right;
          (B) an aboriginal claim; or
          (C) any other water right claim of an Indian tribe in a judicial or administrative proceeding;
       (2) affects the ability of the United States, acting in its sovereign capacity, to take actions authorized by law, including any laws relating to health, safety, or the environment, including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.), the Safe Drinking Water Act (42 U.S.C. 300f et seq.), the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) (commonly known as the `Resource Conservation and Recovery Act of 1976'), and the regulations implementing those Acts;
       (3) affects the ability of the United States to take actions, acting in its capacity as trustee for any other Tribe, Pueblo, or allottee;
       (4) waives any claim of a member of the Tribes in an individual capacity that does not derive from a right of the Tribes; or
       (5) limits the right of a party to the Agreement to litigate any issue not resolved by the Agreement or this subtitle.
    (c) Admission Against Interest—
       Nothing in this subtitle constitutes an admission against interest by a party in any legal proceeding.
    (d) Reservation—
       The Reservation shall be—
       (1) considered to be the property of the Tribes; and
       (2) permanently held in trust by the United States for the sole use and benefit of the Tribes.
    (e) Jurisdiction—
       (1) SUBJECT MATTER JURISDICTION—
          Nothing in the Agreement or this subtitle restricts, enlarges, or otherwise determines the subject matter jurisdiction of any Federal, State, or tribal court.
       (2) CIVIL OR REGULATORY JURISDICTION—
          Nothing in the Agreement or this subtitle impairs or impedes the exercise of any civil or regulatory authority of the United States, the State, or the Tribes.
       (3) CONSENT TO JURISDICTION—
          The United States consents to jurisdiction in a proper forum for purposes of enforcing the provisions of the Agreement.
       (4) EFFECT OF SUBSECTION—
          Nothing in this subsection confers jurisdiction on any State court to—
          (A) interpret Federal law regarding the health, safety, or the environment or determine the duties of the United States or other parties pursuant to such Federal law; or
          (B) conduct judicial review of a Federal agency action.