```

[108th Congress Public Law 451]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ451.108]

[[Page 3477]]

                      ARIZONA WATER SETTLEMENTS ACT

[[Page 118 STAT. 3478]]

Public Law 108-451
108th Congress

                                 An Act

 
To provide for adjustments to the Central Arizona Project in Arizona, to 
 authorize the Gila River Indian Community water rights settlement, to 
 reauthorize and amend the Southern Arizona Water Rights Settlement Act 
  of 1982, and for other purposes. <<NOTE: Dec. 10, 2004 -  [S. 437]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Arizona Water 
Settlements Act.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 43 USC 1501 note.>> Short Title.--This Act may be cited 
as the ``Arizona Water Settlements Act''.

    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Arbitration.
Sec. 4. Antideficiency.

               TITLE I--CENTRAL ARIZONA PROJECT SETTLEMENT

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. General permissible uses of the Central Arizona Project.
Sec. 104. Allocation of Central Arizona Project water.
Sec. 105. Firming of Central Arizona Project Indian water.
Sec. 106. Acquisition of agricultural priority water.
Sec. 107. Lower Colorado River Basin Development Fund.
Sec. 108. Effect.
Sec. 109. Repeal.
Sec. 110. Authorization of appropriations.
Sec. 111. Repeal on failure of enforceability date under title II.

      TITLE II--GILA RIVER INDIAN COMMUNITY WATER RIGHTS SETTLEMENT

Sec. 201. Short title.
Sec. 202. Purposes.
Sec. 203. Approval of the Gila River Indian Community Water Rights 
           Settlement Agreement.
Sec. 204. Water rights.
Sec. 205. Community water delivery contract amendments.
Sec. 206. Satisfaction of claims.
Sec. 207. Waiver and release of claims.
Sec. 208. Gila River Indian Community Water OM&R Trust Fund.
Sec. 209. Subsidence remediation program.
Sec. 210. After-acquired trust land.
Sec. 211. Reduction of water rights.
Sec. 212. New Mexico Unit of the Central Arizona Project.
Sec. 213. Miscellaneous provisions.
Sec. 214. Authorization of appropriations.
Sec. 215. Repeal on failure of enforceability date.

           TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

Sec. 301. Southern Arizona water rights settlement.
Sec. 302. Southern Arizona water rights settlement effective date.

[[Page 118 STAT. 3479]]

        TITLE IV--SAN CARLOS APACHE TRIBE WATER RIGHTS SETTLEMENT

Sec. 401. Effect of titles I, II, and III.
Sec. 402. Annual report. 
Sec. 403. Authorization of appropriations.

SEC. 2. DEFINITIONS.

    In titles I and II:
            (1) Acre-feet.--The term ``acre-feet'' means acre-feet per 
        year.
            (2) After-acquired trust land.--The term ``after-acquired 
        trust land'' means land that--
                    (A) is located--
                          (i) within the State; but
                          (ii) outside the exterior boundaries of the 
                      Reservation; and
                    (B) is taken into trust by the United States for the 
                benefit of the Community after the enforceability date.
            (3) Agricultural priority water.--The term ``agricultural 
        priority water'' means Central Arizona Project non-Indian 
        agricultural priority water, as defined in the Gila River 
        agreement.
            (4) Allottee.--The term ``allottee'' means a person who 
        holds a beneficial real property interest in an Indian allotment 
        that is--
                    (A) located within the Reservation; and
                    (B) held in trust by the United States.
            (5) Arizona indian tribe.--The term ``Arizona Indian tribe'' 
        means an Indian tribe (as defined in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 U.S.C. 
        450b)) that is located in the State.
            (6) Asarco.--The term ``Asarco'' means Asarco Incorporated, 
        a New Jersey corporation of that name, and its subsidiaries 
        operating mining operations in the State.
            (7) CAP contractor.--The term ``CAP contractor'' means a 
        person or entity that has entered into a long-term contract (as 
        that term is used in the repayment stipulation) with the United 
        States for delivery of water through the CAP system.
            (8) CAP operating agency.--The term ``CAP operating agency'' 
        means the entity or entities authorized to assume responsibility 
        for the care, operation, maintenance, and replacement of the CAP 
        system.
            (9) CAP repayment contract.--
                    (A) In general.--The term ``CAP repayment contract'' 
                means the contract dated December 1, 1988 (Contract No. 
                14-0906-09W-09245, Amendment No. 1) between the United 
                States and the Central Arizona Water Conservation 
                District for the delivery of water and the repayment of 
                costs of the Central Arizona Project.
                    (B) Inclusions.--The term ``CAP repayment contract'' 
                includes all amendments to and revisions of that 
                contract.
            (10) CAP subcontractor.--The term ``CAP subcontractor'' 
        means a person or entity that has entered into a long-term 
        subcontract (as that term is used in the repayment stipulation) 
        with the United States and the Central Arizona Water 
        Conservation District for the delivery of water through the CAP 
        system.
            (11) CAP system.--The term ``CAP system'' means--
                    (A) the Mark Wilmer Pumping Plant;

[[Page 118 STAT. 3480]]

                    (B) the Hayden-Rhodes Aqueduct;
                    (C) the Fannin-McFarland Aqueduct;
                    (D) the Tucson Aqueduct;
                    (E) the pumping plants and appurtenant works of the 
                Central Arizona Project aqueduct system that are 
                associated with the features described in subparagraphs 
                (A) through (D); and
                    (F) any extensions of, additions to, or replacements 
                for the features described in subparagraphs (A) through 
                (E).
            (12) Central arizona project.--The term ``Central Arizona 
        Project'' means the reclamation project authorized and 
        constructed by the United States in accordance with title III of 
        the Colorado River Basin Project Act (43 U.S.C. 1521 et seq.).
            (13) Central arizona water conservation district.--The term 
        ``Central Arizona Water Conservation District'' means the 
        political subdivision of the State that is the contractor under 
        the CAP repayment contract.
            (14) Cities.--The term ``Cities'' means the cities of 
        Chandler, Glendale, Goodyear, Mesa, Peoria, Phoenix, and 
        Scottsdale, Arizona.
            (15) Community.--The term ``Community'' means the Gila River 
        Indian Community, a government composed of members of the Pima 
        Tribe and the Maricopa Tribe and organized under section 16 of 
        the Act of June 18, 1934 (25 U.S.C. 476).
            (16) Community cap water.--The term ``Community CAP water'' 
        means water to which the Community is entitled under the 
        Community water delivery contract.
            (17) Community repayment contract.--
                    (A) In general.--The term ``Community repayment 
                contract'' means Contract No. 6-0907-0903-09W0345 
                between the United States and the Community dated July 
                20, 1998, providing for the construction of water 
                delivery facilities on the Reservation.
                    (B) Inclusions.--The term ``Community repayment 
                contract'' includes any amendments to the contract 
                described in subparagraph (A).
            (18) Community water delivery contract.--
                    (A) In general.--The term ``Community water delivery 
                contract'' means Contract No. 3-0907-0930-09W0284 
                between the Community and the United States dated 
                October 22, 1992.
                    (B) Inclusions.--The term ``Community water delivery 
                contract'' includes any amendments to the contract 
                described in subparagraph (A).
            (19) CRR project works.--
                    (A) In general.--The term ``CRR project works'' 
                means the portions of the San Carlos Irrigation Project 
                located on the Reservation.
                    (B) Inclusion.--The term ``CRR Project works'' 
                includes the portion of the San Carlos Irrigation 
                Project known as the ``Southside Canal'', from the point 
                at which the Southside Canal connects with the Pima 
                Canal to the boundary of the Reservation.
            (20) Director.--The term ``Director'' means--

[[Page 118 STAT. 3481]]

                    (A) the Director of the Arizona Department of Water 
                Resources; or
                    (B) with respect to an action to be carried out 
                under this title, a State official or agency designated 
                by the Governor or the State legislature.
            (21) Enforceability date.--The term ``enforceability date'' 
        means the date on which the Secretary publishes in the Federal 
        Register the statement of findings described in section 207(c).
            (22) Fee land.--The term ``fee land'' means land, other than 
        off-Reservation trust land, owned by the Community outside the 
        exterior boundaries of the Reservation as of December 31, 2002.
            (23) Fixed om&r charge.--The term ``fixed OM&R charge'' has 
        the meaning given the term in the repayment stipulation.
            (24) Franklin irrigation district.--The term ``Franklin 
        Irrigation District'' means the entity of that name that is a 
        political subdivision of the State and organized under the laws 
        of the State.
            (25) Gila river adjudication proceedings.--The term ``Gila 
        River adjudication proceedings'' means the action pending in the 
        Superior Court of the State of Arizona in and for the County of 
        Maricopa styled ``In Re the General Adjudication of All Rights 
        To Use Water In The Gila River System and Source'' W-091 (Salt), 
        W-092 (Verde), W-093 (Upper Gila), W-094 (San Pedro) 
        (Consolidated).
            (26) Gila river agreement.--
                    (A) In general.--The term ``Gila River agreement'' 
                means the agreement entitled the ``Gila River Indian 
                Community Water Rights Settlement Agreement'', dated 
                February 4, 2003.
                    (B) Inclusions.--The term ``Gila River agreement'' 
                includes--
                          (i) all exhibits to that agreement (including 
                      the New Mexico Risk Allocation Agreement, which is 
                      also an exhibit to the UVD Agreement); and
                          (ii) any amendment to that agreement or to an 
                      exhibit to that agreement made or added pursuant 
                      to that agreement consistent with section 203(a) 
                      or as approved by the Secretary.
            (27) Gila valley irrigation district.--The term ``Gila 
        Valley Irrigation District'' means the entity of that name that 
        is a political subdivision of the State and organized under the 
        laws of the State.
            (28) Globe equity decree.--
                    (A) In general.--The term ``Globe Equity Decree'' 
                means the decree dated June 29, 1935, entered in United 
                States of America v. Gila Valley Irrigation District, 
                Globe Equity No. 59, et al., by the United States 
                District Court for the District of Arizona.
                    (B) Inclusions.--The term ``Globe Equity Decree'' 
                includes all court orders and decisions supplemental to 
                that decree.
            (29) Haggard decree.--
                    (A) In general.--The term ``Haggard Decree'' means 
                the decree dated June 11, 1903, entered in United States 
                of America, as guardian of Chief Charley Juan Saul and 
                Cyrus Sam, Maricopa Indians and 400 other Maricopa

[[Page 118 STAT. 3482]]

                Indians similarly situated v. Haggard, et al., Cause No. 
                19, in the District Court for the Third Judicial 
                District of the Territory of Arizona, in and for the 
                County of Maricopa.
                    (B) Inclusions.--The term ``Haggard Decree'' 
                includes all court orders and decisions supplemental to 
                that decree.
            (30) Including.--The term ``including'' has the same meaning 
        as the term ``including, but not limited to''.
            (31) Injury to water quality.--The term ``injury to water 
        quality'' means any contamination, diminution, or deprivation of 
        water quality under Federal, State, or other law.
            (32) Injury to water rights.--
                    (A) In general.--The term ``injury to water rights'' 
                means an interference with, diminution of, or 
                deprivation of water rights under Federal, State, or 
                other law.
                    (B) Inclusion.--The term ``injury to water rights'' 
                includes a change in the underground water table and any 
                effect of such a change.
                    (C) Exclusion.--The term ``injury to water rights'' 
                does not include subsidence damage or injury to water 
                quality.
            (33) Lower colorado river basin development fund.--The term 
        ``Lower Colorado River Basin Development Fund'' means the fund 
        established by section 403 of the Colorado River Basin Project 
        Act (43 U.S.C. 1543).
            (34) Master agreement.--The term ``master agreement'' means 
        the agreement entitled ``Arizona Water Settlement Agreement'' 
        among the Director, the Central Arizona Water Conservation 
        District, and the Secretary, dated August 16, 2004.
            (35) NM cap entity.--The term ``NM CAP entity'' means the 
        entity or entities that the State of New Mexico may authorize to 
        assume responsibility for the design, construction, operation, 
        maintenance, and replacement of the New Mexico Unit.
            (36) New mexico consumptive use and forbearance agreement.--
                    (A) In general.--The term ``New Mexico Consumptive 
                Use and Forbearance Agreement'' means that agreement 
                entitled the ``New Mexico Consumptive Use and 
                Forbearance Agreement,'' entered into by and among the 
                United States, the Community, the San Carlos Irrigation 
                and Drainage District, and all of the signatories to the 
                UVD Agreement, and approved by the State of New Mexico, 
                and authorized, ratified, and approved by section 
                212(b).
                    (B) Inclusions.--The ``New Mexico Consumptive Use 
                and Forbearance Agreement'' includes--
                          (i) all exhibits to that agreement (including 
                      the New Mexico Risk Allocation agreement, which is 
                      also an exhibit to the UVD agreement); and
                          (ii) any amendment to that agreement made or 
                      added pursuant to that agreement.
            (37) New mexico unit.--The term ``New Mexico Unit'' means 
        that unit or units of the Central Arizona Project authorized by 
        sections 301(a)(4) and 304 of the Colorado River Basin Project 
        Act (43 U.S.C. 1521(a)(4), 1524) (as amended by section 212).
            (38) New mexico unit agreement.--

[[Page 118 STAT. 3483]]

                    (A) In general.--The term ``New Mexico Unit 
                Agreement'' means that agreement entitled the ``New 
                Mexico Unit Agreement,'' to be entered into by and 
                between the United States and the NM CAP entity upon 
                notice to the Secretary from the State of New Mexico 
                that the State of New Mexico intends to have the New 
                Mexico Unit constructed or developed.
                    (B) Inclusions.--The ``New Mexico Unit Agreement'' 
                includes--
                          (i) all exhibits to that agreement; and
                          (ii) any amendment to that agreement made or 
                      added pursuant to that agreement.
            (39) Off-reservation trust land.--The term ``off-Reservation 
        trust land'' means land outside the exterior boundaries of the 
        Reservation that is held in trust by the United States for the 
        benefit of the Community as of the enforceability date.
            (40) Phelps dodge.--The term ``Phelps Dodge'' means the 
        Phelps Dodge Corporation, a New York corporation of that name, 
        and Phelps Dodge's subsidiaries (including Phelps Dodge Morenci, 
        Inc., a Delaware corporation of that name), and Phelps Dodge's 
        successors or assigns.
            (41) Repayment stipulation.--The term ``repayment 
        stipulation'' means the Revised Stipulation Regarding a Stay of 
        Litigation, Resolution of Issues During the Stay, and for 
        Ultimate Judgment Upon the Satisfaction of Conditions, filed 
        with the United States District Court for the District of 
        Arizona in Central Arizona Water Conservation District v. United 
        States, et al., No. CIV 95-09625-09TUC-09WDB(EHC), No. CIV 95-
        091720-09PHX-09EHC (Consolidated Action), and that court's order 
        dated April 28, 2003, and any amendments or revisions thereto.
            (42) Reservation.--
                    (A) In general.--Except as provided in sections 
                207(d) and 210(d), the term ``Reservation'' means the 
                land located within the exterior boundaries of the 
                reservation created under sections 3 and 4 of the Act of 
                February 28, 1859 (11 Stat. 401, chapter LXVI) and 
                Executive Orders of August 31, 1876, June 14, 1879, May 
                5, 1882, November 15, 1883, July 31, 1911, June 2, 1913, 
                August 27, 1914, and July 19, 1915.
                    (B) Exclusion.--The term ``Reservation'' does not 
                include the land located in sections 16 and 36, Township 
                4 South, Range 4 East, Salt and Gila River Base and 
                Meridian.
            (43) Roosevelt habitat conservation plan.--The term 
        ``Roosevelt Habitat Conservation Plan'' means the habitat 
        conservation plan approved by the United States Fish and 
        Wildlife Service under section 10(a)(1)(B) of the Endangered 
        Species Act of 1973 (16 U.S.C. 1539(a)(1)(B)) for the incidental 
        taking of endangered, threatened, and candidate species 
        resulting from the continued operation by the Salt River Project 
        of Roosevelt Dam and Lake, near Phoenix, Arizona.
            (44) Roosevelt water conservation district.--The term 
        ``Roosevelt Water Conservation District'' means the entity of 
        that name that is a political subdivision of the State and an 
        irrigation district organized under the law of the State.

[[Page 118 STAT. 3484]]

            (45) Safford.--The term ``Safford'' means the city of 
        Safford, Arizona.
            (46) Salt river project.--The term ``Salt River Project'' 
        means the Salt River Project Agricultural Improvement and Power 
        District, a political subdivision of the State, and the Salt 
        River Valley Water Users' Association, an Arizona Territorial 
        corporation.
            (47) San carlos apache tribe.--The term ``San Carlos Apache 
        Tribe'' means the San Carlos Apache Tribe, a tribe of Apache 
        Indians organized under Section 16 of the Indian Reorganization 
        Act of June 18, 1934, 48 Stat. 987 (25 U.S.C. 476).
            (48) San carlos irrigation and drainage district.--The term 
        ``San Carlos Irrigation and Drainage District'' means the entity 
        of that name that is a political subdivision of the State and an 
        irrigation and drainage district organized under the laws of the 
        State.
            (49) San carlos irrigation project.--
                    (A) In general.--The term ``San Carlos Irrigation 
                Project'' means the San Carlos irrigation project 
                authorized under the Act of June 7, 1924 (43 Stat. 475).
                    (B) Inclusions.--The term ``San Carlos Irrigation 
                Project'' includes any amendments and supplements to the 
                Act described in subparagraph (A).
            (50) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (51) Special hot lands.--The term ``special hot lands'' has 
        the meaning given the term in subparagraph 2.34 of the UVD 
        agreement.
            (52) State.--The term ``State'' means the State of Arizona.
            (53) Subcontract.--
                    (A) In general.--The term ``subcontract'' means a 
                Central Arizona Project water delivery subcontract.
                    (B) Inclusion.--The term ``subcontract'' includes an 
                amendment to a subcontract.
            (54) Subsidence damage.--The term ``subsidence damage'' 
        means injury to land, water, or other real property resulting 
        from the settling of geologic strata or cracking in the surface 
        of the Earth of any length or depth, which settling or cracking 
        is caused by the pumping of underground water.
            (55) TBI eligible acres.--The term ``TBI eligible acres'' 
        has the meaning given the term in subparagraph 2.37 of the UVD 
        agreement.
            (56) Uncontracted municipal and industrial water.--The term 
        ``uncontracted municipal and industrial water'' means Central 
        Arizona Project municipal and industrial priority water that is 
        not subject to subcontract on the date of enactment of this Act.
            (57) UV decreed acres.--
                    (A) In general.--The term ``UV decreed acres'' means 
                the land located upstream and to the east of the 
                Coolidge Dam for which water may be diverted pursuant to 
                the Globe Equity Decree.
                    (B) Exclusion.--The term ``UV decreed acres'' does 
                not include the reservation of the San Carlos Apache 
                Tribe.

[[Page 118 STAT. 3485]]

            (58) UV decreed water rights.--The term ``UV decreed water 
        rights'' means the right to divert water for use on UV decreed 
        acres in accordance with the Globe Equity Decree.
            (59) UV impact zone.--The term ``UV impact zone'' has the 
        meaning given the term in subparagraph 2.47 of the UVD 
        agreement.
            (60) UV subjugated land.--The term ``UV subjugated land'' 
        has the meaning given the term in subparagraph 2.50 of the UVD 
        agreement.
            (61) UVD agreement.--The term ``UVD agreement'' means the 
        agreement among the Community, the United States, the San Carlos 
        Irrigation and Drainage District, the Franklin Irrigation 
        District, the Gila Valley Irrigation District, Phelps Dodge, and 
        other parties located in the upper valley of the Gila River, 
        dated September 2, 2004.
            (62) UV signatories parties.--The term ``UV signatories'' 
        means the parties to the UVD agreement other than the United 
        States, the San Carlos Irrigation and Drainage District, and the 
        Community.
            (63) Water om&r fund.--The term ``Water OM&R Fund'' means 
        the Gila River Indian Community Water OM&R Trust Fund 
        established by section 208.
            (64) Water right.--The term ``water right'' means any right 
        in or to groundwater, surface water, or effluent under Federal, 
        State, or other law.
            (65) Water rights appurtenant to new mexico 381 acres.--The 
        term ``water rights appurtenant to New Mexico 381 acres'' means 
        the water rights--
                    (A) appurtenant to the 380.81 acres described in the 
                decree in Arizona v. California, 376 U.S. 340, 349 
                (1964); and
                    (B) appurtenant to other land, or for other uses, 
                for which the water rights described in subparagraph (A) 
                may be modified or used in accordance with that decree.
            (66) Water rights for new mexico domestic purposes.--The 
        term ``water rights for New Mexico domestic purposes'' means the 
        water rights for domestic purposes of not more than 265 acre-
        feet of water for consumptive use described in paragraph 
        IV(D)(2) of the decree in Arizona v. California, 376 U.S. 340, 
        350 (1964).
            (67) 1994 biological opinion.--The term ``1994 biological 
        opinion'' means the biological opinion, numbered 2-21-90-F-119, 
        and dated April 15, 1994, relating to the transportation and 
        delivery of Central Arizona Project water to the Gila River 
        basin.
            (68) 1996 biological opinion.--The term ``1996 biological 
        opinion'' means the biological opinion, numbered 2-21-95-F-462 
        and dated July 23, 1996, relating to the impacts of modifying 
        Roosevelt Dam on the southwestern willow flycatcher.
            (69) 1999 biological opinion.--The term ``1999 biological 
        opinion'' means the draft biological opinion numbered 2-21-91-F-
        706, and dated May 1999, relating to the impacts of the Central 
        Arizona Project on Gila Topminnow in the Santa Cruz River basin 
        through the introduction and spread of nonnative aquatic 
        species.

[[Page 118 STAT. 3486]]

SEC. 3. ARBITRATION.

    (a) No Participation by the United States.--
            (1) In general.--No arbitration decision rendered pursuant 
        to subparagraph 12.1 of the UVD agreement or exhibit 20.1 of the 
        Gila River agreement (including the joint control board 
        agreement attached to exhibit 20.1) shall be considered invalid 
        solely because the United States failed or refused to 
        participate in such arbitration proceedings that resulted in 
        such arbitration decision, so long as the matters in arbitration 
        under subparagraph 12.1 of the UVD agreement or exhibit 20.1 of 
        the Gila River Agreement concern aspects of the water rights of 
        the Community, the San Carlos Irrigation Project, or the 
        Miscellaneous Flow Lands (as defined in subparagraph 2.18A of 
        the UVD agreement) and not the water rights of the United States 
        in its own right, any other rights of the United States, or the 
        water rights or any other rights of the United States acting on 
        behalf of or for the benefit of another tribe.
            (2) Arbitration ineffective.--If an issue otherwise subject 
        to arbitration under subparagraph 12.1 of the UVD agreement or 
        exhibit 20.1 of the Gila River Agreement cannot be arbitrated or 
        if an arbitration decision will not be effective because the 
        United States cannot or will not participate in the arbitration, 
        then the issue shall be submitted for decision to a court of 
        competent jurisdiction, but not a court of the Community.

    (b) Participation by the Secretary.--Notwithstanding any provision 
of any agreement, exhibit, attachment, or other document ratified by 
this Act, if the Secretary is required to enter arbitration pursuant to 
this Act or any such document, the Secretary shall follow the procedures 
for arbitration established by chapter 5 of title 5, United States Code.

SEC. 4. ANTIDEFICIENCY.

    The United States shall not be liable for failure to carry out any 
obligation or activity required by this Act, including all titles and 
all agreements or exhibits ratified or confirmed by this Act, funded 
by--
            (1) the Lower Basin Development Fund established by section 
        403 of the Colorado River Basin Project Act (43 U.S.C. 1543), if 
        there are not enough monies in that fund to fulfill those 
        obligations or carry out those activities; or
            (2) appropriations, if appropriations are not provided by 
        Congress.

   TITLE I--CENTRAL <<NOTE: Central Arizona Project Settlement Act of 
2004.>> ARIZONA PROJECT SETTLEMENT

SEC. 101. <<NOTE: 43 USC 1501 note.>> SHORT TITLE.

    This title may be cited as the ``Central Arizona Project Settlement 
Act of 2004''.

SEC. 102. FINDINGS.

    Congress finds that--

[[Page 118 STAT. 3487]]

            (1) the water provided by the Central Arizona Project to 
        Maricopa, Pinal, and Pima Counties in the State of Arizona, is 
        vital to citizens of the State; and
            (2) an agreement on the allocation of Central Arizona 
        Project water among interested persons, including Federal and 
        State interests, would provide important benefits to the Federal 
        Government, the State of Arizona, Arizona Indian Tribes, and the 
        citizens of the State.
SEC. 103. GENERAL PERMISSIBLE USES OF THE CENTRAL ARIZONA PROJECT.

    In accordance with the CAP repayment contract, the Central Arizona 
Project may be used to transport nonproject water for--
            (1) domestic, municipal, fish and wildlife, and industrial 
        purposes; and
            (2) any purpose authorized under the Colorado River Basin 
        Project Act (43 U.S.C. 1501 et seq.).
SEC. 104. ALLOCATION OF CENTRAL ARIZONA PROJECT WATER.

    (a) Non-Indian Agricultural Priority Water.--
            (1) Reallocation to arizona indian tribes.--
                    (A) In general.--The Secretary shall reallocate 
                197,500 acre-feet of agricultural priority water made 
                available pursuant to the master agreement for use by 
                Arizona Indian tribes, of which--
                          (i) 102,000 acre-feet shall be reallocated to 
                      the Gila River Indian Community;
                          (ii) 28,200 acre-feet shall be reallocated to 
                      the Tohono O'odham Nation; and
                          (iii) subject to the conditions specified in 
                      subparagraph (B), 67,300 acre-feet shall be 
                      reallocated to Arizona Indian tribes.
                    (B) Conditions.--The reallocation of agricultural 
                priority water under subparagraph (A)(iii) shall be 
                subject to the conditions that--
                          (i) such water shall be used to resolve Indian 
                      water claims in Arizona, and may be allocated by 
                      the Secretary to Arizona Indian Tribes in 
                      fulfillment of future Arizona Indian water rights 
                      settlement agreements approved by an Act of 
                      Congress. <<NOTE: Effective date.>> In the absence 
                      of an Arizona Indian water rights settlement that 
                      is approved by an Act of Congress after the date 
                      of enactment of this Act, the Secretary shall not 
                      allocate any such water until December 31, 2030. 
                      Any allocations made by the Secretary after such 
                      date shall be accompanied by a certification that 
                      the Secretary is making the allocation in order to 
                      assist in the resolution of an Arizona Indian 
                      water right claim. Any such water allocated to an 
                      Arizona Indian Tribe pursuant to a water delivery 
                      contract with the Secretary under this clause 
                      shall be counted on an acre-foot per acre-foot 
                      basis against any claim to water for that Tribe's 
                      reservation;
                          (ii) notwithstanding clause (i), the Secretary 
                      shall retain 6,411 acre-feet of water for use for 
                      a future water rights settlement agreement 
                      approved by an Act of Congress that settles the 
                      Navajo Nation's claims to water in Arizona. If 
                      Congress does not approve

[[Page 118 STAT. 3488]]

                      this settlement before December 31, 2030, the 
                      6,411 acre-feet of CAP water shall be available to 
                      the Secretary under clause (i); and
                          (iii) the agricultural priority water shall 
                      not, without specific authorization by Act of 
                      Congress, be leased, exchanged, forborne, or 
                      otherwise transferred by an Arizona Indian tribe 
                      for any direct or indirect use outside the 
                      reservation of the Arizona Indian tribe.
                    (C) Report.--The Secretary, in consultation with 
                Arizona Indian tribes and the State, shall prepare a 
                report for Congress by December 31, 2016, that assesses 
                whether the potential benefits of subparagraph (A) are 
                being conveyed to Arizona Indian tribes pursuant to 
                water rights settlements enacted subsequent to this Act. 
                For those Arizona Indian tribes that have not yet 
                settled water rights claims, the Secretary shall 
                describe whether any active negotiations are taking 
                place, and identify any critical water needs that exist 
                on the reservation of each such Arizona Indian tribe. 
                The Secretary shall also identify and report on the use 
                of unused quantities of agricultural priority water made 
                available to Arizona Indian tribes under subparagraph 
                (A).
            (2) Reallocation to the arizona department of water 
        resources.--
                    (A) In general.--Subject to subparagraph (B) and 
                subparagraph 9.3 of the master agreement, the Secretary 
                shall reallocate up to 96,295 acre-feet of agricultural 
                priority water made available pursuant to the master 
                agreement to the Arizona Department of Water Resources, 
                to be held under contract in trust for further 
                allocation under subparagraph (C).
                    (B) Required documentation.--The reallocation of 
                agricultural priority water under subparagraph (A) is 
                subject to the condition that the Secretary execute any 
                appropriate documents to memorialize the reallocation, 
                including--
                          (i) an allocation decision; and
                          (ii) a contract that prohibits the direct use 
                      of the agricultural priority water by the Arizona 
                      Department of Water Resources.
                    (C) Further allocation.--With respect to the 
                allocation of agricultural priority water under 
                subparagraph (A)--
                          (i) before that water may be further 
                      allocated--
                                    (I) the Director shall submit to the 
                                Secretary, and the Secretary shall 
                                receive, a recommendation for 
                                reallocation;
                                    (II) as soon as practicable after 
                                receiving the recommendation, the 
                                Secretary shall carry out all necessary 
                                reviews of the proposed reallocation, in 
                                accordance with applicable Federal law; 
                                and
                                    (III) if the recommendation is 
                                rejected by the Secretary, the Secretary 
                                shall--
                                            (aa) request a revised 
                                        recommendation from the 
                                        Director; and
                                            (bb) proceed with any 
                                        reviews required under subclause 
                                        (II); and

[[Page 118 STAT. 3489]]

                          (ii) as soon as practicable after the date on 
                      which agricultural priority water is further 
                      allocated, the Secretary shall offer to enter into 
                      a subcontract for that water in accordance with 
                      paragraphs (1) and (2) of subsection (d).
                    (D) Master agreement.--The reallocation of 
                agricultural priority water under subparagraphs (A) and 
                (C) is subject to the master agreement, including 
                certain rights provided by the master agreement to water 
                users in Pinal County, Arizona.
            (3) Priority.--The agricultural priority water reallocated 
        under paragraphs (1) and (2) shall be subject to the condition 
        that the water retain its non-Indian agricultural delivery 
        priority.

    (b) Uncontracted Central Arizona Project Municipal and Industrial 
Priority Water.--
            (1) Reallocation.--The Secretary shall, on the 
        recommendation of the Director, reallocate 65,647 acre-feet of 
        uncontracted municipal and industrial water, of which--
                    (A) 285 acre-feet shall be reallocated to the town 
                of Superior, Arizona;
                    (B) 806 acre-feet shall be reallocated to the Cave 
                Creek Water Company;
                    (C) 1,931 acre-feet shall be reallocated to the 
                Chaparral Water Company;
                    (D) 508 acre-feet shall be reallocated to the town 
                of El Mirage, Arizona;
                    (E) 7,211 acre-feet shall be reallocated to the city 
                of Goodyear, Arizona;
                    (F) 147 acre-feet shall be reallocated to the H2O 
                Water Company;
                    (G) 7,115 acre-feet shall be reallocated to the city 
                of Mesa, Arizona;
                    (H) 5,527 acre-feet shall be reallocated to the city 
                of Peoria, Arizona;
                    (I) 2,981 acre-feet shall be reallocated to the city 
                of Scottsdale, Arizona;
                    (J) 808 acre-feet shall be reallocated to the AVRA 
                Cooperative;
                    (K) 4,986 acre-feet shall be reallocated to the city 
                of Chandler, Arizona;
                    (L) 1,071 acre-feet shall be reallocated to the Del 
                Lago (Vail) Water Company;
                    (M) 3,053 acre-feet shall be reallocated to the city 
                of Glendale, Arizona;
                    (N) 1,521 acre-feet shall be reallocated to the 
                Community Water Company of Green Valley, Arizona;
                    (O) 4,602 acre-feet shall be reallocated to the 
                Metropolitan Domestic Water Improvement District;
                    (P) 3,557 acre-feet shall be reallocated to the town 
                of Oro Valley, Arizona;
                    (Q) 8,206 acre-feet shall be reallocated to the city 
                of Phoenix, Arizona;
                    (R) 2,876 acre-feet shall be reallocated to the city 
                of Surprise, Arizona;
                    (S) 8,206 acre-feet shall be reallocated to the city 
                of Tucson, Arizona; and

[[Page 118 STAT. 3490]]

                    (T) 250 acre-feet shall be reallocated to the Valley 
                Utilities Water Company.
            (2) Subcontracts.--
                    (A) In general.--As soon as practicable after the 
                date of enactment of this Act, and in accordance with 
                paragraphs (1) and (2) of subsection (d) and any other 
                applicable Federal laws, the Secretary shall offer to 
                enter into subcontracts for the delivery of the 
                uncontracted municipal and industrial water reallocated 
                under paragraph (1).
                    (B) Revised recommendation.--If the Secretary is 
                precluded under applicable Federal law from entering 
                into a subcontract with an entity identified in 
                paragraph (1), the Secretary shall--
                          (i) request a revised recommendation from the 
                      Director; and
                          (ii) on receipt of a recommendation under 
                      clause (i), reallocate and enter into a 
                      subcontract for the delivery of the water in 
                      accordance with subparagraph (A).

    (c) Limitations.--
            (1) Amount.--
                    (A) In general.--The total amount of entitlements 
                under long-term contracts (as defined in the repayment 
                stipulation) for the delivery of Central Arizona Project 
                water in the State shall not exceed 1,415,000 acre-feet, 
                of which--
                          (i) 650,724 acre-feet shall be--
                                    (I) under contract to Arizona Indian 
                                tribes; or
                                    (II) available to the Secretary for 
                                allocation to Arizona Indian tribes; and
                          (ii) 764,276 acre-feet shall be under contract 
                      or available for allocation to--
                                    (I) non-Indian municipal and 
                                industrial entities;
                                    (II) the Arizona Department of Water 
                                Resources; and
                                    (III) non-Indian agricultural 
                                entities.
                    (B) Exception.--Subparagraph (A) shall not apply to 
                Central Arizona Project water delivered to water users 
                in Arizona in exchange for Gila River water used in New 
                Mexico as provided in section 304 of the Colorado River 
                Basin Project Act (43 U.S.C. 1524) (as amended by 
                section 212).
            (2) Transfer.--
                    (A) In general.--Except pursuant to the master 
                agreement, Central Arizona Project water may not be 
                transferred from--
                          (i) a use authorized under paragraph (1)(A)(i) 
                      to a use authorized under paragraph (1)(A)(ii); or
                          (ii) a use authorized under paragraph 
                      (1)(A)(ii) to a use authorized under paragraph 
                      (1)(A)(i).
                    (B) Exceptions.--
                          (i) Leases.--A lease of Central Arizona 
                      Project water by an Arizona Indian tribe to an 
                      entity described in paragraph (1)(A)(ii) under an 
                      Indian water rights settlement approved by an Act 
                      of Congress shall not

[[Page 118 STAT. 3491]]

                      be considered to be a transfer for purposes of 
                      subparagraph (A).
                          (ii) Exchanges.--An exchange of Central 
                      Arizona Project water by an Arizona Indian tribe 
                      to an entity described in paragraph (1)(A)(ii) 
                      shall not be considered to be a transfer for 
                      purposes of subparagraph (A).
                          (iii) Notwithstanding subparagraph (A), up to 
                      17,000 acre-feet of CAP municipal and industrial 
                      water under the subcontract among the United 
                      States, the Central Arizona Water Conservation 
                      District, and Asarco, subcontract No. 3-07-30-
                      W0307, dated November 7, 1993, may be reallocated 
                      to the Community on execution of an exchange and 
                      lease agreement among the Community, the United 
                      States, and Asarco.

    (d) Central Arizona Project Contracts and Subcontracts.--
            (1) In general.--Notwithstanding section 6 of the 
        Reclamation Project Act of 1939 (43 U.S.C. 485e), and paragraphs 
        (2) and (3) of section 304(b) of the Colorado River Basin 
        Project Act (43 U.S.C. 1524(b)), as soon as practicable after 
        the date of enactment of this Act, the Secretary shall offer to 
        enter into subcontracts or to amend all Central Arizona Project 
        contracts and subcontracts in effect as of that date in 
        accordance with paragraph (2).
            (2) Requirements.--All subcontracts and amendments to 
        Central Arizona Project contracts and subcontracts under 
        paragraph (1)--
                    (A) shall be for permanent service (within the 
                meaning of section 5 of the Boulder Canyon Project Act 
                of 1928 (43 U.S.C. 617d));
                    (B) shall have an initial delivery term that is the 
                greater of--
                          (i) 100 years; or
                          (ii) a term--
                                    (I) authorized by Congress; or
                                    (II) provided under the appropriate 
                                Central Arizona Project contract or 
                                subcontract in existence on the date of 
                                enactment of this Act;
                    (C) shall conform to the shortage sharing criteria 
                described in paragraph 5.3 of the Tohono O'odham 
                settlement agreement;
                    (D) shall include the prohibition and exception 
                described in subsection (e); and
                    (E) shall not require--
                          (i) that any Central Arizona Project water 
                      received in exchange for effluent be deducted from 
                      the contractual entitlement of the CAP contractor 
                      or CAP subcontractor; or
                          (ii) that any additional modification of the 
                      Central Arizona Project contracts or subcontracts 
                      be made as a condition of acceptance of the 
                      subcontract or amendments.
            (3) Applicability.--This subsection does not apply to--
                    (A) a subcontract for non-Indian agricultural use; 
                or
                    (B) a contract executed under paragraph 5(d) of the 
                repayment stipulation.

    (e) Prohibition on Transfer.--

[[Page 118 STAT. 3492]]

            (1) In general.--Except as provided in paragraph (2), no 
        Central Arizona Project water shall be leased, exchanged, 
        forborne, or otherwise transferred in any way for use directly 
        or indirectly outside the State.
            (2) Exceptions.--Central Arizona Project water may be--
                    (A) leased, exchanged, forborne, or otherwise 
                transferred under an agreement with the Arizona Water 
                Banking Authority that is in accordance with part 414 of 
                title 43, Code of Federal Regulations; and
                    (B) delivered to users in Arizona in exchange for 
                Gila River water used in New Mexico as provided in 
                section 304 of the Colorado River Basin Project Act (43 
                U.S.C. 1524) (as amended by section 212).
            (3) Effect of subsection.--Nothing in this subsection 
        prohibits any entity from entering into a contract with the 
        Arizona Water Banking Authority or a successor of the Authority 
        under State law.
SEC. 105. FIRMING OF CENTRAL ARIZONA PROJECT INDIAN WATER.

    (a) Firming Program.--The Secretary and the State shall develop a 
firming program to ensure that 60,648 acre-feet of the agricultural 
priority water made available pursuant to the master agreement and 
reallocated to Arizona Indian tribes under section 104(a)(1), shall, for 
a 100-year period, be delivered during water shortages in the same 
manner as water with a municipal and industrial delivery priority in the 
Central Arizona Project system is delivered during water shortages.
    (b) Duties.--
            (1) Secretary.--The Secretary shall--
                    (A) firm 28,200 acre-feet of agricultural priority 
                water reallocated to the Tohono O'odham Nation under 
                section 104(a)(1)(A)(ii); and
                    (B) firm 8,724 acre-feet of agricultural priority 
                water reallocated to Arizona Indian tribes under section 
                104(a)(1)(A)(iii).
            (2) State.--The State shall--
                    (A) firm 15,000 acre-feet of agricultural priority 
                water reallocated to the Community under section 
                104(a)(1)(A)(i);
                    (B) firm 8,724 acre-feet of agricultural priority 
                water reallocated to Arizona Indian tribes under section 
                104(a)(1)(A)(iii); and
                    (C) assist the Secretary in carrying out obligations 
                of the Secretary under paragraph (1)(A) in accordance 
                with section 306 of the Southern Arizona Water Rights 
                Settlement Amendments Act (as added by section 301).

    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
the duties of the Secretary under subsection (b)(1).
SEC. 106. ACQUISITION OF AGRICULTURAL PRIORITY WATER.

    (a) Approval of Agreement.--
            (1) In general.--Except to the extent that any provision of 
        the master agreement conflicts with any provision of this title, 
        the master agreement is authorized, ratified, and confirmed. To 
        the extent that amendments are executed to make the master 
        agreement consistent with this title, such amendments are also 
        authorized, ratified, and confirmed.

[[Page 118 STAT. 3493]]

            (2) Exhibits.--The Secretary is directed to and shall 
        execute the master agreement and any of the exhibits to the 
        master agreement that have not been executed as of the date of 
        enactment of this Act.
            (3) Debt collection.--For any agricultural priority water 
        that is not relinquished under the master agreement, the 
        subcontractor shall continue to pay, consistent with the master 
        agreement, the portion of the debt associated with any retained 
        water under section 9(d) of the Reclamation Project Act of 1939 
        (43 U.S.C. 485h(d)), and the Secretary shall apply such revenues 
        toward the reimbursable section 9(d) debt of that subcontractor.
            (4) Effective date.--The provisions of subsections (b) and 
        (c) shall take effect on the date of enactment of this Act.

    (b) Nonreimbursable Debt.--
            (1) In general.--In accordance with the master agreement, 
        the portion of debt incurred under section 9(d) of the 
        Reclamation Project Act of 1939 (43 U.S.C. 485h(d)), and 
        identified in the master agreement as nonreimbursable to the 
        United States, shall be nonreimbursable and nonreturnable to the 
        United States in an amount not to exceed $73,561,337.
            (2) Extension.--In accordance with the master agreement, the 
        Secretary may extend, on an annual basis, the repayment schedule 
        of debt incurred under section 9(d) of the Reclamation Project 
        Act of 1939 (43 U.S.C. 485h(d)) by CAP subcontractors.

    (c) Exemption.--The Reclamation Reform Act of 1982 (43 U.S.C. 390aa 
et seq.) and any other acreage limitation or full cost pricing 
provisions of Federal law shall not apply to--
            (1) land within the exterior boundaries of the Central 
        Arizona Water Conservation District or served by Central Arizona 
        Project water;
            (2) land within the exterior boundaries of the Salt River 
        Reservoir District;
            (3) land held in trust by the United States for an Arizona 
        Indian tribe that is--
                    (A) within the exterior boundaries of the Central 
                Arizona Water Conservation District; or
                    (B) served by Central Arizona Project water; or
            (4) any person, entity, or land, solely on the basis of--
                    (A) receipt of any benefits under this Act;
                    (B) execution or performance of the Gila River 
                agreement; or
                    (C) the use, storage, delivery, lease, or exchange 
                of Central Arizona Project water.
SEC. 107. LOWER COLORADO RIVER BASIN DEVELOPMENT FUND.

    (a) In General.--Section 403 of the Colorado River Basin Project Act 
(43 U.S.C. 1543) is amended by striking subsection (f) and inserting the 
following:
    ``(f) Additional Uses of Revenue Funds.--
            ``(1) Crediting against central arizona water conservation 
        district payments.--Funds credited to the development fund 
        pursuant to subsection (b) and paragraphs (1) and (3) of 
        subsection (c), the portion of revenues derived from the sale of 
        power and energy for use in the State of Arizona pursuant to 
        subsection (c)(2) in excess of the amount necessary to meet the 
        requirements of paragraphs (1) and (2) of subsection

[[Page 118 STAT. 3494]]

        (d), and any annual payment by the Central Arizona Water 
        Conservation District to effect repayment of reimbursable 
        Central Arizona Project construction costs, shall be credited 
        annually against the annual payment owed by the Central Arizona 
        Water Conservation District to the United States for the Central 
        Arizona Project.
            ``(2) Further use of revenue funds credited against payments 
        of central arizona water conservation district.--After being 
        credited in accordance with paragraph (1), the funds and portion 
        of revenues described in that paragraph shall be available 
        annually, without further appropriation, in order of priority--
                    ``(A) to pay annually the fixed operation, 
                maintenance, and replacement charges associated with the 
                delivery of Central Arizona Project water held under 
                long-term contracts for use by Arizona Indian tribes (as 
                defined in section 2 of the Arizona Water Settlements 
                Act) in accordance with clause 8(d)(i)(1)(i) of the 
                Repayment Stipulation (as defined in section 2 of the 
                Arizona Water Settlements Act);
                    ``(B) to make deposits, totaling $53,000,000 in the 
                aggregate, in the Gila River Indian Community Water OM&R 
                Trust Fund established by section 208 of the Arizona 
                Water Settlements Act;
                    ``(C) to pay $147,000,000 for the rehabilitation of 
                the San Carlos Irrigation Project, of which not more 
                than $25,000,000 shall be available annually consistent 
                with attachment 6.5.1 of exhibit 20.1 of the Gila River 
                agreement, except that the total amount of $147,000,000 
                shall be increased or decreased, as appropriate, based 
                on ordinary fluctuations since January 1, 2000, in 
                construction cost indices applicable to the types of 
                construction involved in the rehabilitation;
                    ``(D) in addition to amounts made available for the 
                purpose through annual appropriations, as reasonably 
                allocated by the Secretary without regard to any trust 
                obligation on the part of the Secretary to allocate the 
                funding under any particular priority and without regard 
                to priority (except that payments required by clause (i) 
                shall be made first)--
                          ``(i) to make deposits totaling $66,000,000, 
                      adjusted to reflect changes since January 1, 2004, 
                      in the construction cost indices applicable to the 
                      types of construction involved in construction of 
                      the New Mexico Unit, into the New Mexico Unit Fund 
                      as provided by section 212(i) of the Arizona Water 
                      Settlements Act in 10 equal annual payments 
                      beginning in 2012;
                          ``(ii) upon satisfaction of the conditions set 
                      forth in subsections (j) and (k) of section 212, 
                      to pay certain of the costs associated with 
                      construction of the New Mexico Unit, in addition 
                      to any amounts that may be expended from the New 
                      Mexico Unit Fund, in a minimum amount of 
                      $34,000,000 and a maximum amount of $62,000,000, 
                      as provided in section 212 of the Arizona Water 
                      Settlements Act, as adjusted to

[[Page 118 STAT. 3495]]

                      reflect changes since January 1, 2004, in the 
                      construction cost indices applicable to the types 
                      of construction involved in construction of the 
                      New Mexico Unit;
                          ``(iii) to pay the costs associated with the 
                      construction of distribution systems required to 
                      implement the provisions of--
                                    ``(I) the contract entered into 
                                between the United States and the Gila 
                                River Indian Community, numbered 6-07-
                                03-W0345, and dated July 20, 1998;
                                    ``(II) section 3707(a)(1) of the San 
                                Carlos Apache Tribe Water Rights 
                                Settlement Act of 1992 (106 Stat. 4747); 
                                and
                                    ``(III) section 304 of the Southern 
                                Arizona Water Rights Settlement 
                                Amendments Act of 2004;
                          ``(iv) to pay $52,396,000 for the 
                      rehabilitation of the San Carlos Irrigation 
                      Project as provided in section 203(d)(4) of the 
                      Arizona Water Settlements Act, of which not more 
                      than $9,000,000 shall be available annually, 
                      except that the total amount of $52,396,000 shall 
                      be increased or decreased, as appropriate, based 
                      on ordinary fluctuations since January 1, 2000, in 
                      construction cost indices applicable to the types 
                      of construction involved in the rehabilitation;
                          ``(v) to pay other costs specifically 
                      identified under--
                                    ``(I) sections 213(g)(1) and 214 of 
                                the Arizona Water Settlements Act; and
                                    ``(II) the Southern Arizona Water 
                                Rights Settlement Amendments Act of 
                                2004;
                          ``(vi) to pay a total of not more than 
                      $250,000,000 to the credit of the Future Indian 
                      Water Settlement Subaccount of the Lower Colorado 
                      Basin Development Fund, for use for Indian water 
                      rights settlements in Arizona approved by Congress 
                      after the date of enactment of this Act, subject 
                      to the requirement that, notwithstanding any other 
                      provision of this Act, any funds credited to the 
                      Future Indian Water Settlement Subaccount that are 
                      not used in furtherance of a congressionally 
                      approved Indian water rights settlement in Arizona 
                      by December 31, 2030, shall be returned to the 
                      main Lower Colorado Basin Development Fund for 
                      expenditure on authorized uses pursuant to this 
                      Act, provided that any interest earned on funds 
                      held in the Future Indian Water Settlement 
                      Subaccount shall remain in such subaccount until 
                      disbursed or returned in accordance with this 
                      section;
                          ``(vii) to pay costs associated with the 
                      installation of gages on the Gila River and its 
                      tributaries to measure the water level of the Gila 
                      River and its tributaries for purposes of the New 
                      Mexico Consumptive Use and Forbearance Agreement 
                      in an amount not to exceed $500,000; and
                          ``(viii) to pay the Secretary's costs of 
                      implementing the Central Arizona Project 
                      Settlement Act of 2004;
                    ``(E) in addition to amounts made available for the 
                purpose through annual appropriations--

[[Page 118 STAT. 3496]]

                          ``(i) to pay the costs associated with the 
                      construction of on-reservation Central Arizona 
                      Project distribution systems for the Yavapai 
                      Apache (Camp Verde), Tohono O'odham Nation (Sif 
                      Oidak District), Pascua Yaqui, and Tonto Apache 
                      tribes; and
                          ``(ii) to make payments to those tribes in 
                      accordance with paragraph 8(d)(i)(1)(iv) of the 
                      repayment stipulation (as defined in section 2 of 
                      the Arizona Water Settlements Act), except that if 
                      a water rights settlement Act of Congress 
                      authorizes such construction, payments to those 
                      tribes shall be made from funds in the Future 
                      Indian Water Settlement Subaccount; and
                    ``(F) if any amounts remain in the development fund 
                at the end of a fiscal year, to be carried over to the 
                following fiscal year for use for the purposes described 
                in subparagraphs (A) through (E).
            ``(3) Revenue funds in excess of revenue funds credited 
        against central arizona water conservation district payments.--
        The funds and portion of revenues described in paragraph (1) 
        that are in excess of amounts credited under paragraph (1) shall 
        be available, on an annual basis, without further appropriation, 
        in order of priority--
                    ``(A) to pay annually the fixed operation, 
                maintenance and replacement charges associated with the 
                delivery of Central Arizona Project water under long-
                term contracts held by Arizona Indian tribes (as defined 
                in section 2 of the Arizona Water Settlements Act);
                    ``(B) to make the final outstanding annual payment 
                for the costs of each unit of the projects authorized 
                under title III that are to be repaid by the Central 
                Arizona Water Conservation District;
                    ``(C) to reimburse the general fund of the Treasury 
                for fixed operation, maintenance, and replacement 
                charges previously paid under paragraph (2)(A);
                    ``(D) to reimburse the general fund of the Treasury 
                for costs previously paid under subparagraphs (B) 
                through (E) of paragraph (2);
                    ``(E) to pay to the general fund of the Treasury the 
                annual installment on any debt relating to the Central 
                Arizona Project under section 9(d) of the Reclamation 
                Project Act of 1939 (43 U.S.C. 485h(d)), made 
                nonreimbursable under section 106(b) of the Arizona 
                Water Settlements Act;
                    ``(F) to pay to the general fund of the Treasury the 
                difference between--
                          ``(i) the costs of each unit of the projects 
                      authorized under title III that are repayable by 
                      the Central Arizona Water Conservation District; 
                      and
                          ``(ii) any costs allocated to reimbursable 
                      functions under any Central Arizona Project cost 
                      allocation undertaken by the United States; and
                    ``(G) for deposit in the general fund of the 
                Treasury.
            ``(4) Investment of amounts.--
                    ``(A) In general.--The Secretary of the Treasury 
                shall invest such portion of the development fund as is 
                not,

[[Page 118 STAT. 3497]]

                in the judgment of the Secretary of the Interior, 
                required to meet current needs of the development fund.
                    ``(B) Permitted investments.--
                          ``(i) In general.--Notwithstanding any other 
                      provision of law, including any provision 
                      requiring the consent or concurrence of any party, 
                      the investments referred to in subparagraph (A) 
                      shall include 1 or more of the following:
                                    ``(I) Any investments referred to in 
                                the Act of June 24, 1938 (25 U.S.C. 
                                162a).
                                    ``(II) Investments in obligations of 
                                government corporations and government-
                                sponsored entities whose charter 
                                statutes provide that their obligations 
                                are lawful investments for federally 
                                managed funds.
                                    ``(III) The obligations referred to 
                                in section 201 of the Social Security 
                                Act (42 U.S.C. 401).
                          ``(ii) Lawful investments.--For purposes of 
                      clause (i), obligations of government corporations 
                      and government-sponsored entities whose charter 
                      statutes provide that their obligations are lawful 
                      investments for
                      federally managed funds includes any of the 
                      following securities or securities with comparable 
                      language concerning the investment of federally 
                      managed funds:
                                    ``(I) Obligations of the United 
                                States Postal Service as authorized by 
                                section 2005 of title 39, United States 
                                Code.
                                    ``(II) Bonds and other obligations 
                                of the Tennessee Valley Authority as 
                                authorized by section 15d of the 
                                Tennessee Valley Authority Act of 1933 
                                (16 U.S.C. 831n-4).
                                    ``(III) Mortgages, obligations, or 
                                other securities of the Federal Home 
                                Loan Mortgage Corporation as authorized 
                                by section 303 of the Federal Home Loan 
                                Mortgage Corporation Act (12 U.S.C. 
                                1452).
                                    ``(IV) Bonds, notes, or debentures 
                                of the Commodity Credit Corporation as 
                                authorized by section 4 of the Act of 
                                March 4, 1939 (15 U.S.C. 713a-4).
                    ``(C) Acquisition of obligations.--For the purpose 
                of investments under subparagraph (A), obligations may 
                be acquired--
                          ``(i) on original issue at the issue price; or
                          ``(ii) by purchase of outstanding obligations 
                      at the market price.
                    ``(D) Sale of obligations.--Any obligation acquired 
                by the development fund may be sold by the Secretary of 
                the Treasury at the market price.
                    ``(E) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any obligations 
                held in the development fund shall be credited to and 
                form a part of the development fund.
            ``(5) Amounts not available for certain federal 
        obligations.--None of the provisions of this section, including 
        paragraphs (2)(A) and (3)(A), shall be construed to make any

[[Page 118 STAT. 3498]]

        of the funds referred to in this section available for the 
        fulfillment of any Federal obligation relating to the payment of 
        OM&R charges if such obligation is undertaken pursuant to Public 
        Law 95-328, Public Law 98-530, or any settlement agreement with 
        the United States (or amendments thereto) approved by or 
        pursuant to either of those acts.''.

    (b) <<NOTE: 43 USC 1543 note.>> Limitation.--Amounts made available 
under the amendment made by subsection (a)--
            (1) shall be identified and retained in the Lower Colorado 
        River Basin Development Fund established by section 403 of the 
        Colorado River Basin Project Act (43 U.S.C. 1543); and
            (2) shall not be expended or withdrawn from that fund until 
        the later of--
                    (A) <<NOTE: Federal Register, publication.>> the 
                date on which the findings described in section 207(c) 
                are published in the Federal Register; or
                    (B) <<NOTE: Deadline.>> January 1, 2010.

    (c) <<NOTE: 43 USC 1543.>> Technical Amendments.--The Colorado River 
Basin Project Act (43 U.S.C. 1501 et seq.) is amended--
            (1) in section 403(g), by striking ``clause (c)(2)'' and 
        inserting ``subsection (c)(2)''; and
            (2) in section 403(e), by deleting the first word and 
        inserting ``Except as provided in subsection (f), revenues''.

SEC. 108. EFFECT.

    Except for provisions relating to the allocation of Central Arizona 
Project water and the Reclamation Reform Act of 1982 (43 U.S.C. 390aa et 
seq.), nothing in this title affects--
            (1) any treaty, law, or agreement governing the use of water 
        from the Colorado River; or
            (2) any rights to use Colorado River water existing on the 
        date of enactment of this Act.

SEC. 109. REPEAL.

    Section 11(h) of the Salt River Pima-Maricopa Indian Community Water 
Rights Settlement Act of 1988 (102 Stat. 2559) is repealed.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as are necessary to comply with--
            (1) the 1994 biological opinion, including any funding 
        transfers required by the opinion;
            (2) the 1996 biological opinion, including any funding 
        transfers required by the opinion; and
            (3) any final biological opinion resulting from the 1999 
        biological opinion, including any funding transfers required by 
        the opinion.

    (b) Construction Costs.--Amounts made available under subsection (a) 
shall be treated as Central Arizona Project construction costs.
    (c) Agreements.--
            (1) In general.--Any amounts made available under subsection 
        (a) may be used to carry out agreements to permanently fund 
        long-term reasonable and prudent alternatives in accepted 
        biological opinions relating to the Central Arizona Project.
            (2) Requirements.--To ensure that long-term environmental 
        compliance may be met without further appropriations, an 
        agreement under paragraph (1) shall include a provision

[[Page 118 STAT. 3499]]

        requiring that the contractor manage the funds through interest-
        bearing investments.
SEC. 111. REPEAL <<NOTE: 43 USC 1501 note.>> ON FAILURE OF 
                        ENFORCEABILITY DATE UNDER TITLE II.

    (a) In General.--Except as provided in subsection (b), if the 
Secretary does not publish a statement of findings under section 207(c) 
by December 31, 2007--
            (1) <<NOTE: Effective date.>> this title is repealed 
        effective January 1, 2008, and any action taken by the Secretary 
        and any contract entered under any provision of this title shall 
        be void; and
            (2) any amounts appropriated under section 110 that remain 
        unexpended shall immediately revert to the general fund of the 
        Treasury.

    (b) Exception.--No subcontract amendment executed by the Secretary 
under the notice of June 18, 2003 (67 Fed. Reg. 36578), shall be 
considered to be a contract entered into by the Secretary for purposes 
of subsection (a)(1).

    TITLE II--GILA <<NOTE: Gila River Indian Community Water Rights 
Settlement Act of 2004. 43 USC 1501 note.>> RIVER INDIAN COMMUNITY WATER 
RIGHTS SETTLEMENT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Gila River Indian Community Water 
Rights Settlement Act of 2004''.

SEC. 202. PURPOSES.

    The purposes of this title are--
            (1) to resolve permanently certain damage claims and all 
        water rights claims among the United States on behalf of the 
        Community, its members, and allottees, and the Community and its 
        neighbors;
            (2) to authorize, ratify, and confirm the Gila River 
        agreement;
            (3) to authorize and direct the Secretary to execute and 
        perform all obligations of the Secretary under the Gila River 
        agreement;
            (4) to authorize the actions and appropriations necessary 
        for the United States to meet obligations of the United States 
        under the Gila River agreement and this title; and
            (5) to authorize and direct the Secretary to execute the New 
        Mexico Consumptive Use and Forbearance Agreement to allow the 
        Secretary to exercise the rights authorized by subsections (d) 
        and (f) of section 304 of the Colorado River Basin Project Act 
        (43 U.S.C. 1524).
SEC. 203. APPROVAL OF THE GILA RIVER INDIAN COMMUNITY WATER RIGHTS 
                        SETTLEMENT AGREEMENT.

    (a) In General.--Except to the extent that any provision of the Gila 
River agreement conflicts with any provision of this title, the Gila 
River agreement is authorized, ratified, and confirmed. To the extent 
amendments are executed to make the Gila River agreement consistent with 
this title, such amendments are also authorized, ratified, and 
confirmed.
    (b) Execution of Agreement.--To the extent that the Gila River 
agreement does not conflict with this title, the Secretary

[[Page 118 STAT. 3500]]

is directed to and shall execute the Gila River agreement, including all 
exhibits to the Gila River agreement requiring the signature of the 
Secretary and any amendments necessary to make the Gila River agreement 
consistent with this title, after the Community has executed the Gila 
River agreement and any such amendments.
    (c) National Environmental Policy Act.--
            (1) Environmental compliance.--In implementing the Gila 
        River agreement, the Secretary shall promptly comply with all 
        aspects of the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.), the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.), and all other applicable environmental 
        Acts and regulations.
            (2) Execution of the gila river agreement.--Execution of the 
        Gila River agreement by the Secretary under this section shall 
        not constitute a major Federal action under the National 
        Environmental Policy Act (42 U.S.C. 4321 et seq.). The Secretary 
        is directed to carry out all necessary environmental compliance 
        required by Federal law in implementing the Gila River 
        agreement.
            (3) Lead agency.--The Bureau of Reclamation shall be 
        designated as the lead agency with respect to environmental 
        compliance.

    (d) Rehabilitation and Operation, Maintenance, and Replacement of 
Certain Water Works.--
            (1) In general.--In addition to any obligations of the 
        Secretary with respect to the San Carlos Irrigation Project, 
        including any operation or maintenance responsibility existing 
        on the date of enactment of this Act, the Secretary shall--
                    (A) in accordance with exhibit 20.1 to the Gila 
                River agreement, provide for the rehabilitation of the 
                San Carlos Irrigation Project water diversion and 
                delivery works with the funds provided for under section 
                403(f)(2) of the Colorado River Basin Project Act; and
                    (B) provide electric power for San Carlos Irrigation 
                Project wells and irrigation pumps at the Secretary's 
                direct cost of transmission, distribution, and 
                administration, using the least expensive source of 
                power available.
            (2) Joint control board agreement.--
                    (A) In general.--Except to the extent that it is in 
                conflict with this title, the Secretary shall execute 
                the joint control board agreement described in exhibit 
                20.1 to the Gila River agreement, including all exhibits 
                to the joint control board agreement requiring the 
                signature of the Secretary and any amendments necessary 
                to the joint control board agreement consistent with 
                this title.
                    (B) Controls.--The joint control board agreement 
                shall contain the following provisions, among others:
                          (i) The Secretary, acting through the Bureau 
                      of Indian Affairs, shall continue to be 
                      responsible for the operation and maintenance of 
                      Picacho Dam and Coolidge Dam and Reservoir, and 
                      for scheduling and delivering water to the 
                      Community and the District through the San Carlos 
                      Irrigation Project joint works.
                          (ii) <<NOTE: Deadlines.>> The actions and 
                      decisions of the joint control board that pertain 
                      to construction and maintenance of those San 
                      Carlos Irrigation Project joint works that are the 
                      subject of the joint control board agreement

[[Page 118 STAT. 3501]]

                      shall be subject to the approval of the Secretary, 
                      acting through the Bureau of Indian Affairs within 
                      30 days thereof, or sooner in emergency 
                      situations, which approval shall not be 
                      unreasonably withheld. Should a required decision 
                      of the Bureau of Indian Affairs not be received by 
                      the joint control board within 60 days following 
                      an action or decision of the joint control board, 
                      the joint control board action or decision shall 
                      be deemed to have been approved by the Secretary.
            (3) Rehabilitation costs allocable to the community.--The 
        rehabilitation costs allocable to the Community under exhibit 
        20.1 to the Gila River agreement shall be paid from the funds 
        available under paragraph (2)(C) of section 403(f) of the 
        Colorado River Basin Project Act (43 U.S.C. 1543(f)) (as amended 
        by section 107(a)).
            (4) Rehabilitation costs not allocable to the community.--
                    (A) In general.--The rehabilitation costs not 
                allocable to the Community under exhibit 20.1 to the 
                Gila River agreement shall be provided from funds 
                available under paragraph (2)(D)(iv) of section 403(f) 
                of the Colorado River Basin Project Act (43 U.S.C. 
                1543(f)) (as amended by section 107(a)).
                    (B) Supplementary repayment contract.--Prior to the 
                advance of any funds made available to the San Carlos 
                Irrigation and Drainage District pursuant to the 
                provisions of this Act, the Secretary shall execute a 
                supplementary repayment contract with the San Carlos 
                Irrigation and Drainage District in the form provided 
                for in exhibit 20.1 to the Gila River agreement which 
                shall, among other things, provide that--
                          (i) in accomplishing the work under the 
                      supplemental repayment contract--
                                    (I) the San Carlos Irrigation and 
                                Drainage District--
                                            (aa) may use locally 
                                        accepted engineering standards 
                                        and the labor and contracting 
                                        authorities that are available 
                                        to the District under State law; 
                                        and
                                            (bb) shall be subject to the 
                                        value engineering program of the 
                                        Bureau of Reclamation 
                                        established pursuant to OMB 
                                        Circular A-131; and
                                    (II) in accordance with FAR Part 
                                48.101(b), the incentive returned to the 
                                contractor through this ``Incentive 
                                Clause'' shall be 55 percent after the 
                                Contractor is reimbursed for the 
                                allowable costs of developing and 
                                implementing the proposal and the 
                                Government shall retain 45 percent of 
                                such savings in the form of reduced 
                                expenditures;
                          (ii) up to 18,000 acre-feet annually of 
                      conserved water will be made available by the San 
                      Carlos Irrigation and Drainage District to the 
                      United States pursuant to the terms of exhibit 
                      20.1 to the Gila River agreement; and
                          (iii) a portion of the San Carlos Irrigation 
                      and Drainage District's share of the 
                      rehabilitation costs

[[Page 118 STAT. 3502]]

                      specified in exhibit 20.1 to the Gila River 
                      agreement shall be nonreimbursable.
            (5) Lead agency.--The Bureau of Reclamation shall be 
        designated as the lead agency for oversight of the construction 
        and rehabilitation of the San Carlos Irrigation Project 
        authorized by this section.
            (6) Financial responsibility.--Except as expressly provided 
        by this section, nothing in this Act shall affect--
                    (A) any responsibility of the Secretary under the 
                provisions of the Act of June 7, 1924 (commonly known as 
                the ``San Carlos Irrigation Project Act of 1924'') (43 
                Stat. 475); or
                    (B) any other financial responsibility of the 
                Secretary relating to operation and maintenance of the 
                San Carlos Irrigation Project existing on the date of 
                enactment of this Act.

SEC. 204. WATER RIGHTS.

    (a) Rights Held in Trust; Allottees.--
            (1) Intent of congress.--It is the intent of Congress to 
        provide allottees with benefits that are equal to or that exceed 
        the benefits that the allottees currently possess, taking into 
        account--
                    (A) the potential risks, cost, and time delay 
                associated with the litigation that will be resolved by 
                the Gila River agreement;
                    (B) the availability of funding under title I for 
                the rehabilitation of the San Carlos Irrigation Project 
                and for other benefits;
                    (C) the availability of water from the CAP system 
                and other sources after the enforceability date, which 
                will supplement less secure existing water supplies; and
                    (D) the applicability of section 7 of the Act of 
                February 8, 1887 (25 U.S.C. 381), and this title to 
                protect the interests of allottees.
            (2) Holding in trust.--The water rights and resources 
        described in the Gila River agreement shall be held in trust by 
        the United States on behalf of the Community and the allottees 
        as described in this section.
            (3) Allotted land.--As specified in and provided for under 
        this Act--
                    (A) agricultural allottees, other than allottees 
                with rights under the Globe Equity Decree, shall be 
                entitled to a just and equitable allocation of water 
                from the Community for irrigation purposes from the 
                water resources described in the Gila River agreement;
                    (B) allotted land with rights under the Globe Equity 
                Decree shall be entitled to receive--
                          (i) a similar quantity of water from the 
                      Community to the quantity historically delivered 
                      under the Globe Equity Decree; and
                          (ii) the benefit of the rehabilitation of the 
                      San Carlos Irrigation Project as provided in this 
                      Act, a more secure source of water, and other 
                      benefits under this Act;
                    (C) the water rights and resources and other 
                benefits provided by this Act are a complete 
                substitution of any

[[Page 118 STAT. 3503]]

                rights that may have been held by, or any claims that 
                may have been asserted by, the allottees before the date 
                of enactment of this Act for land within the exterior 
                boundaries of the Reservation;
                    (D) any entitlement to water of allottees for land 
                located within the exterior boundaries of the 
                Reservation shall be satisfied by the Community using 
                the water resources described in subparagraph 4.1 in the 
                Gila River agreement;
                    (E) before asserting any claim against the United 
                States under section 1491(a) of title 28, United States 
                Code, or under section 7 of the Act of February 8, 1887 
                (25 U.S.C. 381), an allottee shall first exhaust 
                remedies available to the allottee under the Community's 
                water code and Community law; and
                    (F) following exhaustion of remedies on claims 
                relating to section 7 of the Act of February 8, 1887 (25 
                U.S.C. 381), a claimant may petition the Secretary for 
                relief.
            (4) Actions, claims, and lawsuits.--
                    (A) In general.--Nothing in this Act authorizes any 
                action, claim, or lawsuit by an allottee against any 
                person, entity, corporation, or municipal corporation, 
                under Federal, State, or other law.
                    (B) The community and the united states.--Except as 
                provided in subparagraphs (E) and (F) of paragraph (3) 
                and subsection (e)(2)(C), nothing in this Act either 
                authorizes any action, claim, or lawsuit by an allottee 
                against the Community under Federal, State, or other 
                law, or alters available actions pursuant to section 
                1491(a) of title 28, of the United States Code, or 
                section 381 of title 25, of the United States Code.

    (b) Reallocation.--
            (1) In general.--In accordance with this title and the Gila 
        River agreement, the Secretary shall reallocate and contract 
        with the Community for the delivery in accordance with this 
        section of--
                    (A) an annual entitlement to 18,600 acre-feet of CAP 
                agricultural priority water in accordance with the 
                agreement among the Secretary, the Community, and 
                Roosevelt Water Conservation District dated August 7, 
                1992;
                    (B) an annual entitlement to 18,100 acre-feet of CAP 
                Indian priority water, which was permanently 
                relinquished by Harquahala Valley Irrigation District in 
                accordance with Contract No. 3-0907-0930-09W0290 among 
                the Central Arizona Water Conservation District, the 
                Harquahala Valley Irrigation District, and the United 
                States, and converted to CAP Indian priority water under 
                the Fort McDowell Indian Community Water Rights 
                Settlement Act of 1990 (104 Stat. 4480);
                    (C) on execution of an exchange and lease agreement 
                among the Community, the United States, and Asarco, an 
                annual entitlement of up to 17,000 acre-feet of CAP 
                municipal and industrial priority water under the 
                subcontract among the United States, the Central Arizona 
                Water Conservation District, and Asarco, Subcontract No. 
                3-07-30-W0307, dated November 7, 1993; and

[[Page 118 STAT. 3504]]

                    (D) as provided in section 104(a)(1)(A)(i), an 
                annual entitlement to 102,000 acre-feet of CAP 
                agricultural priority water acquired pursuant to the 
                master agreement.
            (2) Sole authority.--In accordance with this section, the 
        Community shall have the sole authority, subject to the 
        Secretary's approval pursuant to section 205(a)(2), to lease, 
        distribute, exchange, or allocate the CAP water described in 
        this subsection, except that this paragraph shall not impair the 
        right of an allottee to lease land of the allottee together with 
        the water rights appurtenant to the land. Nothing in this 
        paragraph shall affect the validity of any lease or exchange 
        ratified in section 205(c) or 205(d).

    (c) Water Service Capital Charges.--The Community shall not be 
responsible for water service capital charges for CAP water.
    (d) Allocation and Repayment.--For the purpose of determining the 
allocation and repayment of costs of any stages of the Central Arizona 
Project constructed after the date of enactment of this Act, the costs 
associated with the delivery of water described in subsection (b), 
whether that water is delivered for use by the Community or in 
accordance with any assignment, exchange, lease, option to lease, or 
other agreement for the temporary disposition of water entered into by 
the Community--
            (1) shall be nonreimbursable; and
            (2) shall be excluded from the repayment obligation of the 
        Central Arizona Water Conservation District.

    (e) Application of Provisions.--
            (1) In general.--The water rights recognized and confirmed 
        to the Community and allottees by the Gila River agreement and 
        this title shall be subject to section 7 of the Act of February 
        8, 1887 (25 U.S.C. 381).
            (2) Water code.--
                    (A) <<NOTE: Deadline.>> In general.--Not later than 
                18 months after the enforceability date, the Community 
                shall enact a water code, subject to any applicable 
                provision of law (including subsection (a)(3)), that--
                          (i) manages, regulates, and controls the water 
                      resources on the Reservation;
                          (ii) governs all of the water rights that are 
                      held in trust by the United States; and
                          (iii) provides that, subject to approval of 
                      the Secretary--
                                    (I) the Community shall manage, 
                                regulate, and control the water 
                                resources described in the Gila River 
                                agreement and allocate water to all 
                                water users on the Reservation pursuant 
                                to the water code;
                                    (II) the Community shall establish 
                                conditions, limitations, and permit 
                                requirements relating to the storage, 
                                recovery, and use of the water resources 
                                described in the Gila River agreement;
                                    (III) any allocation of water shall 
                                be from the pooled water resources 
                                described in the Gila River agreement;
                                    (IV) charges for delivery of water 
                                for irrigation purposes to water users 
                                on the Reservation (including water 
                                users on allotted land) shall be 
                                assessed on a just and equitable basis 
                                without

[[Page 118 STAT. 3505]]

                                regard to the status of the Reservation 
                                land on which the water is used;
                                    (V) there is a process by which any 
                                user of or applicant to use water for 
                                irrigation purposes (including water 
                                users on allotted land) may request that 
                                the Community provide water for 
                                irrigation use in accordance with this 
                                title;
                                    (VI) there is a due process system 
                                for the consideration and determination 
                                by the Community of any request by any 
                                water user on the Reservation (including 
                                water users on allotted land), for an 
                                allocation of water, including a process 
                                for appeal and adjudication of denied or 
                                disputed distributions of water and for 
                                resolution of contested administrative 
                                decisions; and
                                    (VII) there is a requirement that 
                                any allottee with a claim relating to 
                                the enforcement of rights of the 
                                allottee under the water code or 
                                relating to the amount of water 
                                allocated to land of the allottee must 
                                first exhaust remedies available to the 
                                allottee under Community law and the 
                                water code before initiating an action 
                                against the United States or petitioning 
                                the Secretary pursuant to subsection 
                                (a)(3)(F).
                    (B) Approval.--Any provision of the water code and 
                any amendments to the water code that affect the rights 
                of the allottees shall be subject to the approval of the 
                Secretary, and no such provision or amendment shall be 
                valid until approved by the Secretary.
                    (C) Inclusion of requirement in water code.--The 
                Community is authorized to and shall include in the 
                water code the requirement in subparagraph (A)(VII) that 
                any allottee with a claim relating to the enforcement of 
                rights of the allottee under the water code or relating 
                to the amount of water allocated to land of the allottee 
                must first exhaust remedies available to the allottee 
                under Community law and the water code before initiating 
                an action against the United States.
            (3) Administration.--The Secretary shall administer all 
        rights to water granted or confirmed to the Community and 
        allottees by the Gila River agreement and this Act until such 
        date as the water code described in paragraph (2) has been 
        enacted and approved by the Secretary, at which time the 
        Community shall have authority, subject to the Secretary's 
        authority under section 7 of the Act of February 8, 1887 (25 
        U.S.C. 381), to manage, regulate, and control the water 
        resources described in the Gila River agreement, subject to 
        paragraph (2), except that this paragraph shall not impair the 
        right of an allottee to lease land of the allottee together with 
        the water rights appurtenant to the land.
SEC. 205. COMMUNITY WATER DELIVERY CONTRACT AMENDMENTS.

    (a) In General.--The Secretary shall amend the Community water 
delivery contract to provide, among other things, in accordance with the 
Gila River agreement, that--
            (1) the contract shall be--

[[Page 118 STAT. 3506]]

                    (A) for permanent service (as that term is used in 
                section 5 of the Boulder Canyon Project Act (43 U.S.C. 
                617d)); and
                    (B) without limit as to term;
            (2) the Community may, with the approval of the Secretary, 
        including approval as to the Secretary's authority under section 
        7 of the Act of February 8, 1887 (25 U.S.C. 381)--
                    (A) enter into contracts or options to lease (for a 
                term not to exceed 100 years) or contracts or options to 
                exchange, Community CAP water within Maricopa, Pinal, 
                Pima, La Paz, Yavapai, Gila, Graham, Greenlee, Santa 
                Cruz, or Coconino Counties, Arizona, providing for the 
                temporary delivery to others of any portion of the 
                Community CAP water; and
                    (B) renegotiate any lease at any time during the 
                term of the lease, so long as the term of the 
                renegotiated lease does not exceed 100 years;
            (3)(A) the Community, and not the United States, shall be 
        entitled to all consideration due to the Community under any 
        leases or options to lease and exchanges or options to exchange 
        Community CAP water entered into by the Community; and
            (B) the United States shall have no trust obligation or 
        other obligation to monitor, administer, or account for--
                    (i) any funds received by the Community as 
                consideration under any such leases or options to lease 
                and exchanges or options to exchange; or
                    (ii) the expenditure of such funds;
            (4)(A) all Community CAP water shall be delivered through 
        the CAP system; and
            (B) if the delivery capacity of the CAP system is 
        significantly reduced or is anticipated to be significantly 
        reduced for an extended period of time, the Community shall have 
        the same CAP delivery rights as other CAP contractors and CAP 
        subcontractors, if such CAP contractors or CAP subcontractors 
        are allowed to take delivery of water other than through the CAP 
        system;
            (5) the Community may use Community CAP water on or off the 
        Reservation for Community purposes;
            (6) as authorized by subparagraph (A) of section 403(f)(2) 
        of the Colorado River Basin Project Act (43 U.S.C. 1543(f)(2)) 
        (as amended by section 107(a)) and to the extent that funds are 
        available in the Lower Colorado River Basin Development Fund 
        established by section 403 of that Act (43 U.S.C. 1543), the 
        United States shall pay to the CAP operating agency the fixed 
        OM&R charges associated with the delivery of Community CAP 
        water, except for Community CAP water leased by others;
            (7) the costs associated with the construction of the CAP 
        system allocable to the Community--
                    (A) shall be nonreimbursable; and
                    (B) shall be excluded from any repayment obligation 
                of the Community; and
            (8) no CAP water service capital charges shall be due or 
        payable for Community CAP water, whether CAP water is delivered 
        for use by the Community or is delivered under any leases, 
        options to lease, exchanges or options to exchange Community CAP 
        water entered into by the Community.

[[Page 118 STAT. 3507]]

    (b) Amended and Restated Community Water Delivery Contract.--To the 
extent it is not in conflict with the provisions of this Act, the 
Amended and Restated Community CAP Water Delivery Contract set forth in 
exhibit 8.2 to the Gila River agreement is authorized, ratified, and 
confirmed, and the Secretary is directed to and shall execute the 
contract. To the extent amendments are executed to make the Amended and 
Restated Community CAP Water Delivery Contract consistent with this 
title, such amendments are also authorized, ratified, and confirmed.
    (c) Leases.--To the extent they are not in conflict with the 
provisions of this Act, the leases of Community CAP water by the 
Community to Phelps Dodge, and any of the Cities, attached as exhibits 
to the Gila River agreement, are authorized, ratified, and confirmed, 
and the Secretary is directed to and shall execute the leases. To the 
extent amendments are executed to make such leases consistent with this 
title, such amendments are also authorized, ratified, and confirmed.
    (d) Reclaimed Water Exchange Agreement.--To the extent it is not in 
conflict with the provisions of this Act, the Reclaimed Water Exchange 
Agreement among the cities of Chandler and Mesa, Arizona, the Community, 
and the United States, attached as exhibit 18.1 to the Gila River 
agreement, is authorized, ratified, and confirmed, and the Secretary 
shall execute the agreement. To the extent amendments are executed to 
make the Reclaimed Water Exchange Agreement consistent with this title, 
such amendments are also authorized, ratified, and confirmed.
    (e) Payment of Charges.--Neither the Community nor any recipient of 
Community CAP water through lease or exchange shall be obligated to pay 
water service capital charges or any other charges, payments, or fees 
for the CAP water, except as provided in the lease or exchange 
agreement.
    (f) Prohibitions.--
            (1) Use outside the state.--None of the Community CAP water 
        shall be leased, exchanged, forborne, or otherwise transferred 
        in any way by the Community for use directly or indirectly 
        outside the State.
            (2) Use off reservation.--Except as authorized by this 
        section and subparagraph 4.7 of the Gila River agreement, no 
        water made available to the Community under the Gila River 
        agreement, the Globe Equity Decree, the Haggard Decree, or this 
        title may be sold, leased, transferred, or used off the 
        Reservation other than by exchange.
            (3) Agreements with the arizona water banking authority.--
        Nothing in this Act or the Gila River agreement limits the right 
        of the Community to enter into any agreement with the Arizona 
        Water Banking Authority, or any successor agency or entity, in 
        accordance with State law.

SEC. 206. SATISFACTION OF CLAIMS.

    (a) In General.--The benefits realized by the Community, Community 
members, and allottees under this title shall be in complete replacement 
of and substitution for, and full satisfaction of, all claims of the 
Community, Community members, and allottees for water rights, injury to 
water rights, injury to water quality and subsidence damage, except as 
set forth in the Gila River agreement, under Federal, State, or other 
law with respect to land

[[Page 118 STAT. 3508]]

within the exterior boundaries of the Reservation, off-Reservation trust 
land, and fee land.
    (b) No Recognition of Water Rights.--Notwithstanding subsection (a) 
and except as provided in section 204(a), nothing in this title has the 
effect of recognizing or establishing any right of a Community member or 
allottee to water on the Reservation.

SEC. 207. WAIVER AND RELEASE OF CLAIMS.

    (a) In General.--
            (1) Claims against the state and others.--
                    (A) Claims for water rights and injury to water 
                rights by the community and the united states on behalf 
                of the community.--Except as provided in subparagraph 
                25.12 of the Gila River agreement, the Community, on 
                behalf of the Community and Community members (but not 
                members in their capacities as allottees), and the 
                United States, on behalf of the Community and Community 
                members (but not members in their capacities as 
                allottees), as part of the performance of their 
                obligations under the Gila River agreement, are 
                authorized to execute a waiver and release of any claims 
                against the State (or any agency or political 
                subdivision of the State) or any other person, entity, 
                corporation, or municipal corporation under Federal, 
                State, or other law for--
                          (i)(I) past, present, and future claims for 
                      water rights for land within the exterior 
                      boundaries of the Reservation, off-Reservation 
                      trust land, and fee land arising from time 
                      immemorial and, thereafter, forever; and
                          (II) past, present, and future claims for 
                      water rights arising from time immemorial and, 
                      thereafter, forever, that are based on aboriginal 
                      occupancy of land by the Community and Community 
                      members, or their predecessors;
                          (ii)(I) past and present claims for injury to 
                      water rights for land within the exterior 
                      boundaries of the Reservation, off-Reservation 
                      trust land, and fee land arising from time 
                      immemorial through the enforceability date;
                          (II) past, present, and future claims for 
                      injury to water rights arising from time 
                      immemorial and, thereafter, forever, that are 
                      based on aboriginal occupancy of land by the 
                      Community and Community members, or their 
                      predecessors; and
                          (III) claims for injury to water rights 
                      arising after the enforceability date for land 
                      within the exterior boundaries of the Reservation, 
                      off-Reservation trust land, and fee land resulting 
                      from the off-Reservation diversion or use of water 
                      in a manner not in violation of the Gila River 
                      agreement or State law;
                          (iii) past, present, and future claims arising 
                      out of or relating in any manner to the 
                      negotiation or execution of the Gila River 
                      agreement or the negotiation or enactment of 
                      titles I and II; and
                          (iv)(I) past and present claims for subsidence 
                      damage occurring to land within the exterior 
                      boundaries of the Reservation, off-Reservation 
                      trust land, or fee

[[Page 118 STAT. 3509]]

                      land arising from time immemorial through the 
                      enforceability date; and
                          (II) claims for subsidence damage arising 
                      after the enforceability date occurring to land 
                      within the exterior boundaries of the Reservation, 
                      off-Reservation trust land, or fee land resulting 
                      from the diversion of underground water in a 
                      manner not in violation of the Gila River 
                      agreement or State law.
                    (B) Claims for water rights and injury to water 
                rights by the united states as trustee for the 
                allottees.--Except as provided in subparagraph 25.12 of 
                the Gila River agreement, the United States, as trustee 
                for the allottees, as part of the performance of its 
                obligations under the Gila River agreement, is 
                authorized to execute a waiver and release of any claims 
                against the State (or any agency or political 
                subdivision of the State) or any other person, entity, 
                corporation, or municipal corporation under Federal, 
                State, or other law, for--
                          (i)(I) past, present, and future claims for 
                      water rights for land within the exterior 
                      boundaries of the Reservation arising from time 
                      immemorial and, thereafter, forever; and
                          (II) past, present, and future claims for 
                      water rights arising from time immemorial and, 
                      thereafter, forever, that are based on aboriginal 
                      occupancy of land by allottees, or their 
                      predecessors;
                          (ii)(I) past and present claims for injury to 
                      water rights for land within the exterior 
                      boundaries of the Reservation arising from time 
                      immemorial through the enforceability date;
                          (II) past, present, and future claims for 
                      injury to water rights arising from time 
                      immemorial and, thereafter, forever, that are 
                      based on aboriginal occupancy of land by allottees 
                      or their predecessors; and
                          (III) claims for injury to water rights 
                      arising after the enforceability date for land 
                      within the exterior boundaries of the Reservation 
                      resulting from the off-Reservation diversion or 
                      use of water in a manner not in violation of the 
                      Gila River agreement or State law;
                          (iii) past, present, and future claims arising 
                      out of or relating in any manner to the 
                      negotiation or execution of the Gila River 
                      agreement or the negotiation or enactment of 
                      titles I and II; and
                          (iv) past and present claims for subsidence 
                      damage occurring to land within the exterior 
                      boundaries of the Reservation arising from time 
                      immemorial through the enforceability date.
                    (C) Claims for injury to water quality by the 
                community.--Except as provided in subparagraph 25.12 of 
                the Gila River agreement, the Community, on behalf of 
                the Community and Community members (but not members in 
                their capacities as allottees), as part of the 
                performance of its obligations under the Gila River 
                agreement, is authorized to execute a waiver and release 
                of any claims, and to agree to waive its right to 
                request the United States to bring any claims, against 
                the State (or any agency

[[Page 118 STAT. 3510]]

                or political subdivision of the State) or any other 
                person, entity, corporation, or municipal corporation 
                under Federal, State, or other law for--
                          (i) past and present claims for injury to 
                      water quality (other than claims arising out of 
                      the actions that resulted in the remediations 
                      described in exhibit 25.4.1.1 to the Gila River 
                      agreement), including claims for trespass, 
                      nuisance, and real property damage and claims 
                      under all current and future Federal, State, and 
                      other environmental laws and regulations, 
                      including claims under the Comprehensive 
                      Environmental Response, Compensation, and 
                      Liability Act of 1980 (42 U.S.C. 9601 et seq.) and 
                      the Arizona Water Quality Assurance Revolving Fund 
                      (Ariz. Rev. Stat. 49-281 et seq. as amended) 
                      arising from time immemorial through December 31, 
                      2002, for land within the exterior boundaries of 
                      the Reservation, off-Reservation trust land, and 
                      fee land;
                          (ii) past, present, and future claims for 
                      injury to water quality (other than claims arising 
                      out of actions that resulted in the remediations 
                      described in exhibit 25.4.1.1 to the Gila River 
                      agreement), including claims for trespass, 
                      nuisance, and real property damage and claims 
                      under all current and future Federal, State, and 
                      other environmental laws and regulations, 
                      including claims under the Comprehensive 
                      Environmental Response, Compensation, and 
                      Liability Act of 1980 (42 U.S.C. 9601 et seq.) and 
                      the Arizona Water Quality Assurance Revolving Fund 
                      (Ariz. Rev. Stat. 49-281 et seq.), arising from 
                      time immemorial and, thereafter, forever, that are 
                      based on aboriginal occupancy of land by the 
                      Community and Community members, or their 
                      predecessors;
                          (iii) claims for injury to water quality 
                      (other than claims arising out of actions that 
                      resulted in the remediations described in exhibit 
                      25.4.1.1 to the Gila River agreement) arising 
                      after December 31, 2002, including claims for 
                      trespass, nuisance, and real property damage and 
                      claims under all current and future Federal, 
                      State, and other environmental laws and 
                      regulations, including claims under the 
                      Comprehensive Environmental Response, 
                      Compensation, and Liability Act of 1980 (42 U.S.C. 
                      9601 et seq.) and the Arizona Water Quality 
                      Assurance Revolving Fund (Ariz. Rev. Stat. 49-9281 
                      et seq.), that result from--
                                    (I) the delivery of water to the 
                                Community;
                                    (II) the off-Reservation diversion 
                                (other than pumping), or ownership or 
                                operation of structures for the off-
                                Reservation diversion (other than 
                                pumping), of water;
                                    (III) the off-Reservation pumping, 
                                or ownership or operation of structures 
                                for the off-Reservation pumping, of 
                                water in a manner not in violation of 
                                the Gila River agreement or of any 
                                applicable pumping limitations under 
                                State law;

[[Page 118 STAT. 3511]]

                                    (IV) the recharge, or ownership or 
                                operation of structures for the 
                                recharge, of water under a State permit; 
                                and
                                    (V) the off-Reservation application 
                                of water to land for irrigation,
                      except that the waiver provided in this clause 
                      shall extend only to the State (or any agency or 
                      political subdivision of the State) or any other 
                      person, entity, or municipal or other corporation 
                      to the extent that the person, entity, or 
                      corporation is engaged in an activity specified in 
                      this clause.
                    (D) Past and present claims for injury to water 
                quality by the united states.--Except as provided in 
                subparagraph 25.12 of the Gila River agreement and 
                except for any claims arising out of the actions that 
                resulted in the remediations described in exhibit 
                25.4.1.1 to the Gila River agreement, the United States, 
                acting as trustee for the Community, Community members 
                and allottees, and as part of the performance of its 
                obligations under the Gila River agreement, to the 
                extent consistent with this section, is authorized to 
                execute a waiver and release of any claims arising from 
                time immemorial through December 31, 2002, for injury to 
                water quality where all of the following conditions are 
                met:
                          (i) The claims are brought solely on behalf of 
                      the Community, members, or allottees.
                          (ii) The claims are brought against the State 
                      (or any agency or political subdivision of the 
                      State) or any person, entity, corporation, or 
                      municipal corporation.
                          (iii) The claims arise under Federal, State, 
                      or other law, including claims, if any, for 
                      trespass, nuisance, and real property damage, and 
                      claims, if any, under any current or future 
                      Federal, State, or other environmental laws or 
                      regulation, including under the Comprehensive 
                      Environmental Response, Compensation, and 
                      Liability Act of 1980 (42 U.S.C. 9601 et seq.) or 
                      the Arizona Water Quality Assurance Revolving Fund 
                      (Ariz. Rev. Stat. 49-281 et seq.).
                          (iv) The claimed injury is to land, water, or 
                      natural resources located on trust land within the 
                      exterior boundaries of the Reservation or on off-
                      Reservation trust land.
                    (E) Future claims for injury to water quality by the 
                united states.--Except as provided in subparagraph 25.12 
                of the Gila River agreement and except for any claims 
                arising out of the actions that resulted in the 
                remediations described in exhibit 25.4.1.1 to the Gila 
                River agreement, the United States, in its own right and 
                as trustee for the Community, its members and allottees, 
                as part of the performance of its obligations under the 
                Gila River agreement, to the extent consistent with this 
                section, is authorized to execute a waiver and release 
                of the following claims for injury or threat of injury 
                to water quality arising after December 31, 2002, 
                against the State (or any agency or political 
                subdivision of the State) or any

[[Page 118 STAT. 3512]]

                other person, entity, corporation, or municipal 
                corporation under Federal, State, or other law:
                          (i) All common law claims for injury or threat 
                      of injury to water quality where the injury or 
                      threat of injury asserted is to the Community's, 
                      Community members' or allottees' interests in 
                      trust land, water, or natural resources located 
                      within the exterior boundaries of the Reservation 
                      or within off-Reservation trust lands caused by--
                                    (I) the delivery of water to the 
                                Community;
                                    (II) the off-Reservation diversion 
                                (other than pumping), or ownership or 
                                operation of structures for the off-
                                Reservation diversion (other than 
                                pumping), of water;
                                    (III) the off-Reservation pumping, 
                                or ownership or operation of structures 
                                for the off-Reservation pumping, of 
                                water in a manner not in violation of 
                                the Gila River agreement or of any 
                                applicable pumping limitations under 
                                State law;
                                    (IV) the recharge, or ownership or 
                                operation of structures for the 
                                recharge, of water under a State permit; 
                                and
                                    (V) the off-Reservation application 
                                of water to land for irrigation.
                          (ii) All natural resource damage claims for 
                      injury or threat of injury to water quality where 
                      the United States, through the Secretary of the 
                      Interior or other designated officials, would act 
                      on behalf of the Community, its members or 
                      allottees as a natural resource trustee pursuant 
                      to the National Contingency Plan, (as currently 
                      set forth in section 300.600(b)(2) of title 40, 
                      Code of Federal Regulations, or as it may 
                      hereafter be amended), and where the claim is 
                      based on injury to natural resources or threat of 
                      injury to natural resources within the exterior 
                      boundaries of the Reservation or off-Reservation 
                      trust lands, caused by--
                                    (I) the delivery of water to the 
                                Community;
                                    (II) the off-Reservation diversion 
                                (other than pumping), or ownership or 
                                operation of structures for the off-
                                Reservation diversion (other than 
                                pumping), of water;
                                    (III) the off-Reservation pumping, 
                                or ownership or operation of structures 
                                for the off-Reservation pumping, of 
                                water in a manner not in violation of 
                                the Gila River agreement or of any 
                                applicable pumping limitations under 
                                State law;
                                    (IV) the recharge, or ownership or 
                                operation of structures for the 
                                recharge, of water under a State permit; 
                                and
                                    (V) the off-Reservation application 
                                of water to land for irrigation.
                    (F) Claims by the community against the salt river 
                project.--
                          (i) In general.--Except as provided in 
                      subparagraph 25.12 of the Gila River agreement, to 
                      the extent consistent with this section, the 
                      Community, on behalf of the Community and 
                      Community members (but not

[[Page 118 STAT. 3513]]

                      members in their capacities as allottees), as part 
                      of the performance of its obligations under the 
                      Gila River agreement, is authorized to execute a 
                      waiver and release of claims against the Salt 
                      River Project (or its successors or assigns or its 
                      officers, governors, directors, employees, agents, 
                      or shareholders), where all of the following 
                      conditions are met:
                                    (I) The claims are brought solely on 
                                behalf of the Community or its, members.
                                    (II) The claims arise from the 
                                discharge, transportation, seepage, or 
                                other movement of water in, through, or 
                                from drains, canals, or other facilities 
                                or land in the Salt River Reservoir 
                                District to trust land located within 
                                the exterior boundaries of the 
                                Reservation.
                                    (III) The claims arise from time 
                                immemorial through the enforceability 
                                date.
                                    (IV) The claims assert a past or 
                                present injury to water rights, injury 
                                on the Reservation to water quality, or 
                                injury to trust property located within 
                                the exterior boundaries of the 
                                Reservation.
                          (ii) <<NOTE: Effective date.>> Effect of 
                      waiver.--The waiver provided for in this 
                      subparagraph is effective as of December 31, 2002, 
                      and shall continue to preclude claims as they may 
                      arise until the enforceability date, or until such 
                      time as the Salt River Project alters its 
                      historical operations of the drains, canals, or 
                      other facilities within the Salt River Reservoir 
                      District in a manner that would cause significant 
                      harm to trust lands within the exterior boundaries 
                      of the Reservation, whichever occurs earlier.
                    (G) Claims by the united states against the salt 
                river project.--
                          (i) In general.--Except as provided in 
                      subparagraph 25.12 of the Gila River agreement, to 
                      the extent consistent with this section, the 
                      United States, acting as trustee for the 
                      Community, Community members and allottees, and as 
                      part of the performance of its obligations under 
                      the Gila River agreement, is authorized to execute 
                      a waiver and release of claims against the Salt 
                      River Project (or its successors or assigns or its 
                      officers, governors, directors, employees, agents, 
                      or shareholders), where all of the following 
                      conditions are met:
                                    (I) The claims are brought solely on 
                                behalf of the Community, members, or 
                                allottees.
                                    (II) The claims arise from the 
                                discharge, transportation, seepage, or 
                                other movement of water in, through, or 
                                from drains, canals, or other facilities 
                                or land in the Salt River Reservoir 
                                District to trust land located within 
                                the exterior boundaries of the 
                                Reservation.
                                    (III) The claims arise from time 
                                immemorial through the enforceability 
                                date.
                                    (IV) The claims assert a past or 
                                present injury to water rights, injury 
                                on the Reservation to water

[[Page 118 STAT. 3514]]

                                quality, or injury to trust property 
                                located within the exterior boundaries 
                                of the Reservation.
                          (ii) <<NOTE: Effective date.>> Effect of 
                      waiver.--The waiver provided for in this 
                      subsection is effective as of December 31, 2002, 
                      and shall continue to preclude claims as they may 
                      arise until the enforceability date, or until such 
                      time as the Salt River Project alters its 
                      historical operations of the drains, canals, or 
                      other facilities within the Salt River Reservoir 
                      District in a manner that would cause significant 
                      harm to trust lands within the exterior boundaries 
                      of the Reservation, whichever occurs earlier.
                    (H) United states enforcement authority.--Except as 
                provided in subparagraphs (D), (E), and (G), nothing in 
                this Act or the Gila River agreement affects any right 
                of the United States, or the State, to take any action, 
                including environmental actions, under any laws 
                (including regulations and the common law) relating to 
                human health, safety, or the environment.
            (2) Claims for subsidence by the community, allottees, and 
        the united states on behalf of the community and allottees.--In 
        accordance with the subsidence remediation program under section 
        209, the Community, a Community member, or an allottee, and the 
        United States, on behalf of the Community, a Community member, 
        or an allottee, as part of the performance of obligations under 
        the Gila River agreement, are authorized to execute a waiver and 
        release of all claims against the State (or any agency or 
        political subdivision of the State) or any other person, entity, 
        corporation or municipal corporation under Federal, State, or 
        other law for the damage claimed.
            (3) Claims against the community.--
                    (A) In general.--Except as provided in subparagraph 
                25.12 of the Gila River agreement, to the extent 
                consistent with this Act, the United States, in all its 
                capacities (except as trustee for an Indian tribe other 
                than the Community), as part of the performance of 
                obligations under the Gila River agreement, is 
                authorized to execute a waiver and release of any and 
                all claims against the Community, or any agency, 
                official, or employee of the Community, under Federal, 
                State, or any other law for--
                          (i) past and present claims for subsidence 
                      damage to trust land within the exterior 
                      boundaries of the Reservation, off-Reservation 
                      trust lands, and fee land arising from time 
                      immemorial through the enforceability date; and
                          (ii) past, present, and future claims arising 
                      out of or relating in any manner to the 
                      negotiation or execution of the Gila River 
                      agreement or the negotiation or enactment of 
                      titles I and II.
            (4) Claims against the united states.--
                    (A) In general.--Except as provided in subparagraph 
                25.12 of the Gila River agreement, the Community, on 
                behalf of the Community and Community members (but not 
                members in their capacities as allottees), as part of 
                the performance of obligations under the Gila River 
                agreement, is authorized to execute a waiver and release 
                of

[[Page 118 STAT. 3515]]

                any claim against the United States (or agencies, 
                officials, or employees of the United States) under 
                Federal, State, or other law for--
                          (i)(I) past, present, and future claims for 
                      water rights for land within the exterior 
                      boundaries of the Reservation, off-Reservation 
                      trust land, and fee land arising from time 
                      immemorial and, thereafter, forever; and
                          (II) past, present, and future claims for 
                      water rights arising from time immemorial and, 
                      thereafter, forever, that are based on aboriginal 
                      occupancy of land by the Community and Community 
                      members, or their predecessors;
                          (ii)(I) past and present claims for injury to 
                      water rights for land within the exterior 
                      boundaries of the Reservation, off-Reservation 
                      trust land, and fee land arising from time 
                      immemorial through the enforceability date;
                          (II) past, present, and future claims for 
                      injury to water rights arising from time 
                      immemorial and, thereafter, forever, that are 
                      based on aboriginal occupancy of land by the 
                      Community and Community members, or their 
                      predecessors; and
                          (III) claims for injury to water rights 
                      arising after the enforceability date for land 
                      within the exterior boundaries of the Reservation, 
                      off-Reservation trust land, or fee land resulting 
                      from the off-Reservation diversion or use of water 
                      in a manner not in violation of the Gila River 
                      agreement or applicable law;
                          (iii) past, present, and future claims arising 
                      out of or relating in any manner to the 
                      negotiation or execution of the Gila River 
                      agreement or the negotiation or enactment of 
                      titles I and II;
                          (iv)(I) past and present claims for subsidence 
                      damage occurring to land within the exterior 
                      boundaries of the Reservation, off-Reservation 
                      trust land, or fee land arising from time 
                      immemorial through the enforceability date; and
                          (II) claims for subsidence damage arising 
                      after the enforceability date occurring to land 
                      within the exterior boundaries of the Reservation, 
                      off-Reservation trust land or fee land resulting 
                      from the diversion of underground water in a 
                      manner not in violation of the Gila River 
                      agreement or applicable law;
                          (v) past and present claims for failure to 
                      protect, acquire, or develop water rights for or 
                      on behalf of the Community and Community members 
                      arising before December 31, 2002; and
                          (vi) past, present, and future claims relating 
                      to failure to assert any claims expressly waived 
                      pursuant to section 207(a)(1) (C) through (E).
                    (B) Exhaustion of remedies.--To the extent that 
                members in their capacity as allottees assert that this 
                title impairs or alters their present or future claims 
                to water or constitutes an injury to present or future 
                water rights, the members shall be required to exhaust 
                their

[[Page 118 STAT. 3516]]

                remedies pursuant to the tribal water code prior to 
                asserting claims against the United States.
            (5) Claims against certain persons and entities in the upper 
        gila valley.--
                    (A) By the community and the united states.--Except 
                as provided in the UVD agreement, the Community, on 
                behalf of the Community and Community members (but not 
                members in their capacities as allottees), and the 
                United States on behalf of the Community and Community 
                members (but not members in their capacities as 
                allottees), are authorized, as part of the performance 
                of obligations under the UVD agreement, to execute a 
                waiver and release of the following claims against the 
                UV signatories and the UV Non-signatories (and the 
                predecessors in interest of each) for--
                          (i)(I) past, present, and future claims for 
                      water rights for land within the exterior 
                      boundaries of the Reservation and the San Carlos 
                      Irrigation Project arising from time immemorial 
                      and, thereafter, forever; and
                          (II) past, present, and future claims for 
                      water rights arising from time immemorial and, 
                      thereafter, forever, that are based on aboriginal 
                      occupancy of land by the Community, Community 
                      members, or predecessors of the Community or 
                      Community members;
                          (ii)(I) past, present, and future claims for 
                      injuries to water rights for land within the 
                      exterior boundaries of the Reservation or the San 
                      Carlos Irrigation Project arising from time 
                      immemorial and, thereafter, forever;
                          (II) past, present, and future claims for 
                      injury to water rights arising from time 
                      immemorial and, thereafter, forever, that are 
                      based on aboriginal occupancy of land by the 
                      Community, Community members, or predecessors of 
                      Community members, for so long as and to the 
                      extent that any individual beneficiary of such 
                      waiver is acting in a manner that is consistent 
                      with and not in violation of or contrary to the 
                      terms, conditions, requirements, limitations, or 
                      other provisions of the UVD agreement;
                          (III) claims for injury to water rights 
                      arising after the enforceability date for land 
                      within the exterior boundaries of the Reservation 
                      and the San Carlos Irrigation Project, resulting 
                      from the diversion, pumping, or use of water in a 
                      manner that is consistent with and not in 
                      violation of or contrary to the terms, conditions, 
                      limitations, requirements, or provisions of the 
                      UVD agreement; and
                          (IV) claims for injury to water rights arising 
                      after the enforceability date for water rights 
                      transferred to the Project pursuant to section 211 
                      resulting from the diversion, pumping or use of 
                      water in a manner that is consistent with and not 
                      in violation of or contrary to the terms, 
                      conditions, limitations, requirements, or 
                      provisions of the UVD agreement;
                          (iii)(I) past, present, and future claims for 
                      injuries to water rights arising out of or 
                      relating to the use of water rights appurtenant to 
                      New Mexico 381 acres,

[[Page 118 STAT. 3517]]

                      on the conditions that such water rights remain 
                      subject to the oversight and reporting 
                      requirements set forth in the decree in Arizona v. 
                      California, 376 U.S. 340 (1964), and that the 
                      State of New Mexico shall make available on 
                      request a copy of any records prepared pursuant to 
                      that decree; and
                          (II) past, present, and future claims arising 
                      out of and relating to the use of water rights for 
                      New Mexico domestic purposes, on the conditions 
                      that such water rights remain subject to the 
                      oversight and reporting requirements set forth in 
                      the decree in Arizona v. California, 376 U.S. 340 
                      (1964), and that the State of New Mexico shall 
                      make available on request a copy of any records 
                      prepared pursuant to that decree; and
                          (iv) past, present, and future claims arising 
                      out of or relating to the negotiation or execution 
                      of the UVD agreement, or the negotiation or 
                      enactment of titles I and II.
                    (B) By the united states on behalf of allottees.--
                Except as provided in the UVD agreement, to the extent 
                consistent with this section, the United States as 
                trustee for the allottees, as part of the performance 
                under the UVD agreement, is authorized to execute a 
                waiver and release of the following claims under 
                Federal, State, or other law against the UV signatories 
                and the UV Non-signatories (and the predecessors in 
                interest of each) for--
                          (i)(I) past, present, and future claims for 
                      water rights for land within the exterior 
                      boundaries of the Reservation arising from time 
                      immemorial, and thereafter, forever; and
                          (II) past, present, and future claims for 
                      water rights arising from time immemorial and, 
                      thereafter, forever, that are based on aboriginal 
                      occupancy of lands by allottees or their 
                      predecessors;
                          (ii)(I) past and present claims for injury to 
                      water rights for lands within the exterior 
                      boundaries of the Reservation arising from time 
                      immemorial, through the enforceability date, for 
                      so long as and to the extent that any individual 
                      beneficiary of such waiver is acting in a manner 
                      that is consistent with and not in violation of or 
                      contrary to the terms, conditions, requirements, 
                      limitations, or other provisions of the UVD 
                      agreement;
                          (II) past, present, and future claims for 
                      injury to water rights arising from time 
                      immemorial and, thereafter, forever, that are 
                      based on aboriginal occupancy of lands by 
                      allottees or their predecessors, for so long as 
                      and to the extent that any individual beneficiary 
                      of such waiver is acting in a manner that is 
                      consistent with and not in violation of or 
                      contrary to the terms, conditions, requirements, 
                      limitations, or other provisions of the UVD 
                      agreement; and
                          (III) claims for injury to water rights for 
                      land within the exterior boundaries of the 
                      Reservation arising after the enforceability date 
                      resulting from the diversion, pumping, or use of 
                      water in a manner that is consistent with and not 
                      in violation of or contrary

[[Page 118 STAT. 3518]]

                      to the terms, conditions, limitations, 
                      requirements, or provisions of the UVD agreement;
                          (iii)(I) <<NOTE: Records.>> past, present, and 
                      future claims for injuries to water rights arising 
                      out of or relating to the use of water rights 
                      appurtenant to New Mexico 381 acres, on the 
                      conditions that such water rights remain subject 
                      to the oversight and reporting requirements set 
                      forth in the decree in Arizona v. California, 376 
                      U.S. 340 (1964), as supplemented, and that the 
                      State of New Mexico shall make available on 
                      request a copy of any records prepared pursuant to 
                      that decree; and
                          (II) past, present, and future claims arising 
                      out of or relating to the use of water rights for 
                      New Mexico domestic purposes, on the conditions 
                      that such water rights remain subject to the 
                      oversight and reporting requirements set forth in 
                      the decree in Arizona v. California, 376 U.S. 340 
                      (1964), as supplemented, and that the State of New 
                      Mexico shall make available on request a copy of 
                      any records prepared pursuant to that decree; and
                          (iv) past, present, and future claims arising 
                      out of or relating to the negotiation or execution 
                      of the UVD agreement, or the negotiation or 
                      enactment of titles I and II.
                    (C) Additional waiver of certain claims by the 
                united states.--Except as provided in the UVD Agreement, 
                the United States (to the extent the waiver and release 
                authorized by this subparagraph is not duplicative of 
                the waiver and release provided in subparagraph (B) and 
                to the extent the United States holds legal title to 
                (but not the beneficial interest in) the water rights as 
                described in article V or VI of the Globe Equity Decree 
                (but not on behalf of the San Carlos Apache Tribe 
                pursuant to article VI(2) of the Globe Equity Decree) on 
                behalf of lands within the San Carlos Irrigation and 
                Drainage District and the Miscellaneous Flow Lands) 
                shall execute a waiver and release of the following 
                claims under Federal, State or other law against the UV 
                signatories and the UV Non-signatories (and the 
                predecessors of each) for--
                          (i) past, present, and future claims for water 
                      rights for land within the San Carlos Irrigation 
                      and Drainage District and the Miscellaneous Flow 
                      Lands arising from time immemorial, and 
                      thereafter, forever;
                          (ii)(I) past and present claims for injury to 
                      water rights for land within the San Carlos 
                      Irrigation and Drainage District and the 
                      Miscellaneous Flow Lands arising from time 
                      immemorial through the enforceability date, for so 
                      long as and to the extent that any individual 
                      beneficiary of such waiver is acting in a manner 
                      that is consistent with and not in violation of or 
                      contrary to the terms, conditions, requirements, 
                      limitations, or other provisions of the UVD 
                      agreement;
                          (II) claims for injury to water rights arising 
                      after the enforceability date for land within the 
                      San Carlos Irrigation and Drainage District and 
                      the Miscellaneous Flow Lands resulting from the 
                      diversion, pumping, or use of water in a manner 
                      that is consistent with

[[Page 118 STAT. 3519]]

                      and not in violation of or contrary to the terms, 
                      conditions, limitations, requirements, or 
                      provisions of the UVD agreement;
                          (iii)(I) <<NOTE: Records.>> past, present, and 
                      future claims for injuries to water rights arising 
                      out of or relating to the use of water rights 
                      appurtenant to New Mexico 381 acres, on the 
                      conditions that such water rights remain subject 
                      to the oversight and reporting requirements set 
                      forth in the decree in Arizona v. California, 376 
                      U.S. 340 (1964), as supplemented, and that the 
                      State of New Mexico shall make available on 
                      request a copy of any records prepared pursuant to 
                      that decree; and
                          (II) past, present, and future claims arising 
                      out of or relating to the use of water rights for 
                      New Mexico domestic purposes, on the conditions 
                      that such water rights remain subject to the 
                      oversight and reporting requirements set forth in 
                      the decree in Arizona v. California, 376 U.S. 340 
                      (1964), as supplemented, and that the State of New 
                      Mexico shall make available on request a copy of 
                      any records prepared pursuant to that decree; and
                          (iv) past, present, and future claims arising 
                      out of or relating to the negotiation or execution 
                      of the UVD agreement, or the negotiation or 
                      enactment of titles I and II.
            (6) Tribal water quality standards.--The Community, on 
        behalf of the Community and Community members, as part of the 
        performance of its obligations under the Gila River agreement, 
        is authorized to agree never to adopt any water quality 
        standards, or ask the United States to promulgate such 
        standards, that are more stringent than water quality standards 
        adopted by the State if the Community's adoption of such 
        standards could result in the imposition by the State or the 
        United States of more stringent water quality limitations or 
        requirements than those that would otherwise be imposed by the 
        State or the United States on--
                    (A) any water delivery system used to deliver water 
                to the Community; or
                    (B) the discharge of water into any such system.

    (b) Effectiveness of Waiver and Releases.--
            (1) <<NOTE: Effective date.>> In general.--The waivers under 
        paragraphs (1) and (3) through (5) of subsection (a) shall 
        become effective on the enforceability date.
            (2) Claims for subsidence damage.--The waiver under 
        subsection (a)(2) shall become effective on execution of the 
        waiver by--
                    (A) the Community, a Community member, or an 
                allottee; and
                    (B) the United States, on behalf of the Community, a 
                Community member, or an allottee.

    (c) Enforceability Date.--
            (1) <<NOTE: Effective date. Federal Register, 
        publication.>> In general.--This section takes effect on the 
        date on which the Secretary publishes in the Federal Register a 
        statement of findings that--
                    (A) to the extent the Gila River agreement conflicts 
                with this title, the Gila River agreement has been 
                revised through an amendment to eliminate the conflict 
                and the

[[Page 118 STAT. 3520]]

                Gila River agreement, so revised, has been executed by 
                the Secretary and the Governor of the State;
                    (B) the Secretary has fulfilled the requirements 
                of--
                          (i) paragraphs (1)(A)(i) and (2) of subsection 
                      (a) and subsections (b) and (d) of section 104; 
                      and
                          (ii) sections 204, 205, and 209(a);
                    (C) the master agreement authorized, ratified, and 
                confirmed by section 106(a) has been executed by the 
                parties to the master agreement, and all conditions to 
                the enforceability of the master agreement have been 
                satisfied;
                    (D) $53,000,000 has been identified and retained in 
                the Lower Colorado River Basin Development Fund for the 
                benefit of the Community in accordance with section 
                107(b);
                    (E) the State has appropriated and paid to the 
                Community any amount to be paid under paragraph 27.4 of 
                the Gila River agreement;
                    (F) the Salt River Project has paid to the Community 
                $500,000 under subparagraph 16.9 of the Gila River 
                agreement;
                    (G) the judgments and decrees attached to the Gila 
                River agreement as exhibits 25.18A (Gila River 
                adjudication proceedings) and 25.18B (Globe Equity 
                Decree proceedings) have been approved by the respective 
                courts;
                    (H) the dismissals attached to the Gila River 
                agreement as exhibits 25.17.1A and B, 25.17.2, and 
                25.17.3A and B have been filed with the respective 
                courts and any necessary dismissal orders entered;
                    (I) legislation has been enacted by the State to--
                          (i) implement the Southside Replenishment 
                      Program in accordance with subparagraph 5.3 of the 
                      Gila River agreement;
                          (ii) authorize the firming program required by 
                      section 105; and
                          (iii) establish the Upper Gila River Watershed 
                      Maintenance Program in accordance with 
                      subparagraph 26.8.1 of the Gila River agreement;
                    (J) the State has entered into an agreement with the 
                Secretary to carry out the obligation of the State under 
                section 105(b)(2)(A); and
                    (K) a final judgment has been entered in Central 
                Arizona Water Conservation District v. United States 
                (No. CIV 95-625-TUC-WDB(EHC), No. CIV 95-1720PHX-EHC) 
                (Consolidated Action) in accordance with the repayment 
                stipulation.
            (2) Failure of enforceability date to occur.--If, because of 
        the failure of the enforceability date to occur by December 31, 
        2007, this section does not become effective, the Community, 
        Community members, and allottees, and the United States on 
        behalf of the San Carlos Irrigation and Drainage District, the 
        Community, Community members, and allottees, shall retain the 
        right to assert past, present, and future water rights claims, 
        claims for injury to water rights, claims for injury to water 
        quality, and claims for subsidence damage as to all land within 
        the exterior boundaries of the Reservation, off-Reservation 
        trust land, and fee land.

[[Page 118 STAT. 3521]]

    (d) All Land Within Exterior Boundaries of the Reservation.--
Notwithstanding section 2(42), for purposes of this section, section 
206, and section 210(d)--
            (1) the term ``land within the exterior boundaries of the 
        Reservation'' includes--
                    (A) land within the Reservation created pursuant to 
                the Act of February 28, 1859, and modified by the 
                executive orders of August 31, 1876, June 14, 1879, May 
                5, 1882, November 15, 1883, July 31, 1911, June 2, 1913, 
                August 27, 1914, and July 19, 1915; and
                    (B) land located in sections 16 and 36, T. 4 S., R. 
                4 E., Salt and Gila River Baseline and Meridian; and
            (2) the term ``off-Reservation'' refers to land located 
        outside the exterior boundaries of the Reservation (as defined 
        in paragraph (1)).

    (e) No Rights to Water.--Upon the occurrence of the enforceability 
date--
            (1) all land held by the United States in trust for the 
        Community, Community members, and allottees and all land held by 
        the Community within the exterior boundaries of the Reservation 
        shall have no rights to water other than those specifically 
        granted to the Community and the United States for the 
        Reservation pursuant to paragraph 4.0 of the Gila River 
        agreement; and
            (2) all water usage on land within the exterior boundaries 
        of the Reservation, including the land located in sections 16 
        and 36, T. 4 S., R. 4 E., Salt and Gila River Baseline and 
        Meridian, upon acquisition by the Community or the United States 
        on behalf of the Community, shall be taken into account in 
        determining compliance by the Community and the United States 
        with the limitations on total diversions specified in 
        subparagraph 4.2 of the Gila River agreement.
SEC. 208. GILA RIVER INDIAN COMMUNITY WATER OM&R TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the ``Gila River Indian Community 
Water OM&R Fund'', to be managed and invested by the Secretary, 
consisting of $53,000,000, the amount made available for this purpose 
under paragraph (2)(B) of section 403(f) of the Colorado River Basin 
Project Act (43 U.S.C. 1543(f)) (as amended by section 107(a)).
    (b) Management.--The Secretary shall manage the Water OM&R Fund, 
make investments from the Fund, and make monies available from the Fund 
for distribution to the Community consistent with the American Indian 
Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), 
hereafter referred to in this section as the ``Trust Fund Reform Act''.
    (c) Investment of the Fund.--The Secretary shall invest amounts in 
the Fund in accordance with--
            (1) the Act of April 1, 1880 (21 Stat. 70, chapter 41; 25 
        U.S.C. 161);
            (2) the first section of the Act of June 24, 1938 (52 Stat. 
        1037, chapter 648; 25 U.S.C. 162a); and
            (3) subsection (b).

    (d) Expenditures and Withdrawals.--
            (1) Tribal management plan.--

[[Page 118 STAT. 3522]]

                    (A) In general.--The Community may withdraw all or 
                part of the Water OM&R Fund on approval by the Secretary 
                of a tribal management plan as described in the Trust 
                Fund Reform Act.
                    (B) Requirements.--In addition to the requirements 
                under the Trust Fund Reform Act, the tribal management 
                plan shall require that the Community only spend any 
                funds, as provided in the Gila River agreement, to 
                assist in paying operation, maintenance, and replacement 
                costs associated with the delivery of CAP water for 
                Community purposes.
            (2) Enforcement.--The Secretary may take judicial or 
        administrative action to enforce the provisions of any tribal 
        management plan to ensure that the monies withdrawn from the 
        Water OM&R Fund are used in accordance with this Act.
            (3) Liability.--If the Community exercises the right to 
        withdraw monies from the Water OM&R Fund, neither the Secretary 
        nor the Secretary of the Treasury shall retain any liability for 
        the expenditure or investment of the monies withdrawn.
            (4) Expenditure plan.--
                    (A) In general.--The Community shall submit to the 
                Secretary for approval an expenditure plan for any 
                portion of the funds made available under this section 
                that the Community 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 Community remaining in the Water 
                OM&R 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 Act.
            (5) Annual report.--The Community shall submit to the 
        Secretary an annual report that describes all expenditures from 
        the Water OM&R Fund during the year covered by the report.

    (e) No Distribution to Members.--No part of the principal of the 
Water OM&R Fund, or of the interest or income accruing on the principal, 
shall be distributed to any Community member on a per capita basis.
    (f) Funds Not Available Until Enforceability Date.--Amounts in the 
Water OM&R Fund shall not be available for expenditure or withdrawal by 
the Community until the enforceability date, or until January 1, 2010, 
whichever is later.

SEC. 209. SUBSIDENCE REMEDIATION PROGRAM.

    (a) In General.--Subject to the availability of funds and consistent 
with the provisions of section 107(a), the Secretary shall establish a 
program under which the Bureau of Reclamation shall repair and remediate 
subsidence damage and related damage that occurs after the 
enforceability date.
    (b) Damage.--Under the program, the Community, a Community member, 
or an allottee may submit to the Secretary a request for the repair or 
remediation of--
            (1) subsidence damage; and
            (2) damage to personal property caused by the settling of 
        geologic strata or cracking in the earth's surface of any

[[Page 118 STAT. 3523]]

        length or depth, which settling or cracking is caused by pumping 
        of underground water.

    (c) Repair or Remediation.--The Secretary shall perform the 
requested repair or remediation if--
            (1) the Secretary determines that the Community has not 
        exceeded its right to withdraw underground water under the Gila 
        River agreement; and
            (2) the Community, Community member, or allottee, and the 
        Secretary as trustee for the Community, Community member, or 
        allottee, execute a waiver and release of claim in the form 
        specified in exhibit 25.9.1, 25.9.2, or 25.9.3 to the Gila River 
        agreement, as applicable, to become effective on satisfactory 
        completion of the requested repair or remediation, as determined 
        under the Gila River agreement.

    (d) Specific Subsidence Damage.--Subject to the availability of 
funds, the Secretary, acting through the Commissioner of Reclamation, 
shall repair, remediate, and rehabilitate the subsidence damage that has 
occurred to land before the enforceability date within the Reservation, 
as specified in exhibit 30.21 to the Gila River agreement.

SEC. 210. AFTER-ACQUIRED TRUST LAND.

    (a) Requirement of Act of Congress.--The Community may seek to have 
legal title to additional land in the State located outside the exterior 
boundaries of the Reservation taken into trust by the United States for 
the benefit of the Community pursuant only to an Act of Congress enacted 
after the date of enactment of this Act specifically authorizing the 
transfer for the benefit of the Community.
    (b) Water Rights.--After-acquired trust land shall not include 
federally reserved rights to surface water or groundwater.
    (c) Sense of Congress.--It is the sense of Congress that future Acts 
of Congress authorizing land to be taken into trust under subsection (a) 
should provide that such land will have only such water rights and water 
use privileges as would be consistent with State water law and State 
water management policy.
    (d) Acceptance of Land in Trust Status.--
            (1) In general.--If the Community acquires legal fee title 
        to land that is located within the exterior boundaries of the 
        Reservation (as defined in section 207(d)), the Secretary shall 
        accept the land in trust status for the benefit of the Community 
        upon receipt by the Secretary of a submission from the Community 
        that provides evidence that--
                    (A) the land meets the Department of the Interior's 
                minimum environmental standards and requirements for 
                real estate acquisitions set forth in 602 DM 2.6, or any 
                similar successor standards or requirements for real 
                estate acquisitions in effect on the date of the 
                Community's submission; and
                    (B) the title to the land meets applicable Federal 
                title standards in effect on the date of the Community's 
                submission.
            (2) Reservation status.--Land taken or held in trust by the 
        Secretary under paragraph (1) shall be deemed part of the 
        Community's reservation.

SEC. 211. REDUCTION OF WATER RIGHTS.

    (a) Reduction of TBI Eligible Acres.--

[[Page 118 STAT. 3524]]

            (1) In general.--Consistent with this title and as provided 
        in the UVD agreement to assist in reducing the total water 
        demand for irrigation use in the upper valley of the Gila River, 
        the Secretary shall provide funds to the Gila Valley Irrigation 
        District and the Franklin Irrigation District (hereafter in this 
        section referred to as ``the Districts'') for the acquisition of 
        UV decreed water rights and the extinguishment of those rights 
        to decrease demands on the Gila River, or severance and transfer 
        of those rights to the San Carlos Irrigation Project for the 
        benefit of the Community and the San Carlos Irrigation and 
        Drainage District in accordance with applicable law.
            (2) <<NOTE: Deadlines.>> Acquisitions.--
                    (A) Required phase i acquisition.--Not later than 
                December 31 of the third calendar year that begins after 
                the enforceability date (or December 31 of the first 
                calendar year that begins after the payment provided by 
                subparagraph (D)(iii), if later), the Districts shall 
                acquire the UV decreed water rights appurtenant to 1,000 
                acres of land (other than special hot lands).
                    (B) Required phase ii acquisition.--Not later than 
                December 31 of the sixth calendar year that begins after 
                the enforceability date (or December 31 of the first 
                calendar year that begins after the payment provided by 
                subparagraph (D)(iii), if later), the Districts shall 
                acquire the UV decreed water rights appurtenant to 1,000 
                acres of land (other than special hot lands). The 
                reduction of TBI eligible acres under this subparagraph 
                shall be in addition to that accomplished under 
                subparagraph (A).
                    (C) Additional acquisition in case of settlement.--
                If the San Carlos Apache Tribe reaches a comprehensive 
                settlement that is approved by Congress and finally 
                approved by all courts the approval of which is 
                required, the Secretary shall offer to acquire for fair 
                market value the UV decreed water rights associated with 
                not less than 500 nor more than 3,000 TBI eligible acres 
                of land (other than special hot lands).
                    (D) Methods of acquisition for rights acquired 
                pursuant to subparagraphs (a) and (b).--
                          (i) Determination of value.--
                                    (I) Appraisals.--Not later than 
                                December 31 of the first calendar year 
                                that begins after the enforceability 
                                date in the case of the phase I 
                                acquisition, and not later than December 
                                31 of the fourth calendar year that 
                                begins after the enforceability date in 
                                the case of the phase II acquisition, 
                                the Districts shall submit to the 
                                Secretary an appraisal of the average 
                                value of water rights appurtenant to 
                                1,000 TBI eligible acres.
                                    
                                (II) <<NOTE: Notification.>> Review.--The
                                 Secretary shall review the appraisal 
                                submitted to ensure its consistency with 
                                the Uniform Appraisal Standards for 
                                Federal Land Acquisition and notify the 
                                Districts of the results of the review 
                                within 30 days of submission of the 
                                appraisal. In the event that the 
                                Secretary finds that the appraisal is 
                                not consistent with such standards, the 
                                Secretary shall so notify the Districts 
                                with a full explanation of the reasons 
                                for

[[Page 118 STAT. 3525]]

                                that finding. Within 60 days of being 
                                notified by the Secretary that the 
                                appraisal is not consistent with such 
                                Standards, the Districts shall resubmit 
                                an appraisal to the Secretary that is 
                                consistent with such 
                                standards. <<NOTE: Notification.>> The 
                                Secretary shall review the resubmitted 
                                appraisal to ensure its consistency with 
                                nationally approved standards and notify 
                                the Districts of the results of the 
                                review within 30 days of resubmission.
                                    (III) Petition.--In the event that 
                                the Secretary finds that such 
                                resubmitted appraisal is not consistent 
                                with those Standards, either the 
                                Districts or the Secretary may petition 
                                a Federal court in the District of 
                                Arizona for a determination of whether 
                                the appraisal is consistent with 
                                nationally approved Standards. If such 
                                court finds the appraisal is so 
                                consistent, the value stated in the 
                                appraisal shall be final for all 
                                purposes. If such court finds the 
                                appraisal is not so consistent, the 
                                court shall determine the average value 
                                of water rights appurtenant to 1,000 TBI 
                                eligible acres.
                                    (IV) No objection.--If the Secretary 
                                does not object to an appraisal within 
                                the time periods provided in this clause 
                                (i), the value determined in the 
                                appraisal shall be final for all 
                                purposes.
                          (ii) Appraisal.--In determining the value of 
                      water rights pursuant to this paragraph, any 
                      court, the Districts, the Secretary, and any 
                      appraiser shall take into account the obligations 
                      the owner of the land (to which the rights are 
                      appurtenant) will have after acquisition for 
                      phreatophyle control as provided in the UVD 
                      agreement and to comply with environmental laws 
                      because of the acquisition and severance and 
                      transfer or extinguishment of the water rights.
                          (iii) Payment.--No more than 30 days after the 
                      average value of water rights appurtenant to 1,000 
                      acres of land has been determined in accordance 
                      with clauses (i) and (ii), the Secretary shall pay 
                      125 percent of such values to the Districts.
                          (iv) Reduction of acreage.--No later than 
                      December 31 of the first calendar year that begins 
                      after each such payment, the Districts shall 
                      acquire the UV decreed water rights appurtenant to 
                      one thousand (1,000) acres of lands that would 
                      have been included in the calculation of TBI 
                      eligible acres (other than special hot lands), if 
                      the calculation of TBI eligible acres had been 
                      undertaken at the time of acquisition. To the 
                      extent possible, the Districts shall select the 
                      rights to be acquired in compliance with 
                      subsection 5.3.7 of the UVD agreement.
            (3) Reduction of tbi eligible acres.--Simultaneously with 
        the acquisition of UV decreed water rights under paragraph (2), 
        the number of TBI eligible acres, but not the number of acres of 
        UV subjugated land, shall be reduced by the number of acres 
        associated with those UV decreed water rights.
            (4) Alternatives to acquisition.--

[[Page 118 STAT. 3526]]

                    (A) Special hot lands.--After the payments provided 
                by paragraph (2)(D)(iii), the Districts may fulfill the 
                requirements of paragraphs (2) and (3) in full or in 
                part, by entering into an agreement with an owner of 
                special hot lands to prohibit permanently future 
                irrigation of the special hot lands if the UVD settling 
                parties simultaneously--
                          (i) acquire UV decreed water rights associated 
                      with a like number of UV decreed acres that are 
                      not TBI eligible acres; and
                          (ii) sever and transfer those rights to the 
                      San Carlos Irrigation Project for the benefit of 
                      the Community and the San Carlos Irrigation and 
                      Drainage District.
                    (B) Fallowing agreement.--After the payment provided 
                by paragraph (2)(D)(iii), the Districts may fulfill the 
                requirements of paragraphs (2) and (3) in full or in 
                part, by entering into an agreement with 1 or more 
                owners of UV decreed acres and the UV irrigation 
                district in which the acres are located, if any, under 
                which--
                          (i) the number of TBI eligible acres is 
                      reduced; but
                          (ii) the owner of the UV decreed acres subject 
                      to the reduction is permitted to periodically 
                      irrigate the UV decreed acres under a fallowing 
                      agreement authorized under the UVD agreement.
            (5) Disposition of acquired water rights.--
                    (A) In general.--Of the UV decreed water rights 
                acquired by the Districts pursuant to subparagraphs (A) 
                and (B) of paragraph (2), the Districts shall, in 
                accordance with all applicable law and the UVD 
                agreement--
                          (i) sever, and transfer to the San Carlos 
                      Irrigation Project for the benefit of the 
                      Community and the San Carlos Irrigation and 
                      Drainage District, the UV decreed water rights 
                      associated with up to 900 UV decreed acres; and
                          (ii) extinguish the balance of the UV decreed 
                      water rights so acquired (except and only to the 
                      extent that those rights are associated with a 
                      fallowing agreement authorized under paragraph 
                      (4)(B)).
                    (B) San carlos apache settlement.--With respect to 
                water rights acquired by the Secretary pursuant to 
                paragraph (2)(C), the Secretary shall, in accordance 
                with applicable law--
                          (i) cause to be severed and transferred to the 
                      San Carlos Irrigation Project, for the benefit of 
                      the Community and the San Carlos Irrigation and 
                      Drainage District, the UV decreed water rights 
                      associated with 200 UV decreed acres;
                          (ii) cause to be extinguished the UV decreed 
                      water rights associated with 300 UV decreed acres; 
                      and
                          (iii) cause to be transferred the balance of 
                      those acquired water rights to the San Carlos 
                      Apache Tribe pursuant to the terms of the 
                      settlement described in paragraph (2)(C).
            (6) Mitigation.--To the extent the Districts, after the 
        payments provided by paragraph (2)(D)(iii), do not comply with

[[Page 118 STAT. 3527]]

        the acquisition requirements of paragraph (2) or otherwise 
        comply with the alternatives to acquisition provided by 
        paragraph (4), the Districts shall provide mitigation to the San 
        Carlos Irrigation Project as provided by the UVD agreement.

    (b) Additional Reductions.--
            (1) Cooperative program.--In addition to the reduction of 
        TBI eligible acres to be accomplished under subsection (a), not 
        later than 1 year after the enforceability date, the Secretary 
        and the UVD settling parties shall cooperatively establish a 
        program to purchase and extinguish UV decreed water rights 
        associated with UV decreed acres that have not been recently 
        irrigated.
            (2) Focus.--The primary focus of the program under paragraph 
        (1) shall be to prevent any land that contains riparian habitat 
        from being reclaimed for irrigation.
            (3) Funds and resources.--The program under this subsection 
        shall not require any expenditure of funds, or commitment of 
        resources, by the UVD signatories other than such incidental 
        expenditures of funds and commitments of resources as are 
        required to cooperatively participate in the program.
SEC. 212. NEW MEXICO UNIT OF THE CENTRAL ARIZONA PROJECT.

    (a) Required Approvals.--The Secretary shall not execute the Gila 
River agreement pursuant to section 203(b), and the agreement shall not 
become effective, unless and until the New Mexico Consumptive Use and 
Forbearance Agreement has been executed by all signatory parties and 
approved by the State of New Mexico.
    (b) New Mexico Consumptive Use and Forbearance Agreement.--
            (1) In general.--Except to the extent a provision of the New 
        Mexico Consumptive Use and Forbearance Agreement conflicts with 
        a provision of this title, the New Mexico Consumptive Use and 
        Forbearance Agreement is authorized, ratified, and confirmed. To 
        the extent amendments are executed to make the New Mexico 
        Consumptive Use and Forbearance Agreement consistent with this 
        title, such amendments are also authorized, ratified, and 
        confirmed.
            (2) Execution.--To the extent the New Mexico Consumptive Use 
        and Forbearance Agreement does not conflict with this title, the 
        Secretary shall execute the New Mexico Consumptive Use and 
        Forbearance Agreement, including all exhibits to which the 
        Secretary is a party to the New Mexico Consumptive Use and 
        Forbearance Agreement and any amendments to the New Mexico 
        Consumptive Use and Forbearance necessary to make it consistent 
        with this title.

    (c) <<NOTE: Deadlines. Notice.>> New Mexico Unit Agreement.--The 
Secretary is authorized to execute the New Mexico Unit Agreement, which 
agreement shall be executed within 1 year of receipt by the Secretary of 
written notice from the State of New Mexico that the State of New Mexico 
intends to build the New Mexico Unit, which notice must be received not 
later than December 31, 2014. The New Mexico Unit Agreement shall, among 
other things, provide that--
            (1) all funds from the Lower Colorado River Basin 
        Development Fund disbursed in accordance with section 
        403(f)(2)(D) (i) and (ii) of the Colorado River Basin Project 
        Act (as amended by section 107(a)) shall be nonreimbursable (and 
        such costs

[[Page 118 STAT. 3528]]

        shall be excluded from the repayment obligation, if any, of the 
        NM CAP entity under the New Mexico Unit Agreement);
            (2) in determining payment for CAP water under the New 
        Mexico Unit Agreement, the NM CAP entity shall be responsible 
        only for its share of operations, maintenance, and replacement 
        costs (and no capital costs attendant to other units or portions 
        of the Central Arizona Project shall be charged to the NM CAP 
        entity);
            (3) upon request by the NM CAP entity, the Secretary shall 
        transfer to the NM CAP entity the responsibility to design, 
        build, or operate and maintain the New Mexico Unit, or all or 
        any combination of those responsibilities, provided that the 
        Secretary shall not transfer the authority to divert water 
        pursuant to the New Mexico Consumptive Use and Forbearance 
        Agreement, provided further that the Secretary, shall remain 
        responsible to the parties to the New Mexico Consumptive Use and 
        Forbearance Agreement for the NM CAP entity's compliance with 
        the terms and conditions of that agreement;
            (4) the Secretary shall divert water and otherwise exercise 
        her rights and authorities pursuant to the New Mexico 
        Consumptive Use and Forbearance Agreement solely for the benefit 
        of the NM CAP entity and for no other purpose;
            (5) the NM CAP entity shall own and hold title to all 
        portions of the New Mexico Unit constructed pursuant to the New 
        Mexico Unit Agreement; and
            (6) the Secretary shall provide a waiver of sovereign 
        immunity for the sole and exclusive purpose of resolving a 
        dispute in Federal court of any claim, dispute, or disagreement 
        arising under the New Mexico Unit Agreement.

    (d) Amendment to Section 304.--Section 304(f) of the Colorado River 
Basin Project Act (43 U.S.C. 1524(f)) is amended--
            (1) by striking paragraph (1) and inserting the following: 
        ``(1) <<NOTE: Contracts.>> In the operation of the Central 
        Arizona Project, the Secretary shall offer to contract with 
        water users in the State of New Mexico, with the approval of its 
        Interstate Stream Commission, or with the State of New Mexico, 
        through its Interstate Stream Commission, for water from the 
        Gila River, its tributaries and underground water sources in 
        amounts that will permit consumptive use of water in New Mexico 
        of not to exceed an annual average in any period of 10 
        consecutive years of 14,000 acre-feet, including reservoir 
        evaporation, over and above the consumptive uses provided for by 
        article IV of the decree of the Supreme Court of the United 
        States in Arizona v. California (376 U.S. 340). Such increased 
        consumptive uses shall continue only so long as delivery of 
        Colorado River water to downstream Gila River users in Arizona 
        is being accomplished in accordance with this Act, in quantities 
        sufficient to replace any diminution of their supply resulting 
        from such diversion from the Gila River, its tributaries and 
        underground water sources. In determining the amount required 
        for this purpose, full consideration shall be given to any 
        differences in the quality of the water involved.'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

    (e) Cost Limitation.--In determining payment for CAP water under the 
New Mexico Consumptive Use and Forbearance Agreement, the NM CAP entity 
shall be responsible only for its share

[[Page 118 STAT. 3529]]

of operations, maintenance, and repair costs. No capital costs attendant 
to other Units or portions of the Central Arizona Project shall be 
charged to the NM CAP entity.
    (f) Exclusion of Costs.--For the purpose of determining the 
allocation and repayment of costs of the Central Arizona Project under 
the CAP Repayment Contract, the costs associated with the New Mexico 
Unit and the delivery of Central Arizona Project water pursuant to the 
New Mexico Consumptive Use and Forbearance Agreement shall be 
nonreimbursable, and such costs shall be excluded from the Central 
Arizona Water Conservation District's repayment obligation.
    (g) New Mexico Unit Construction and Operations.--The Secretary is 
authorized to design, build, and operate and maintain the New Mexico 
Unit. Upon request by the State of New Mexico, the Secretary shall 
transfer to the NM CAP entity responsibility to design, build, or 
operate and maintain the New Mexico Unit, or all or any combination of 
those functions.
    (h) National Environmental Policy Act.--
            (1) Environmental compliance.--Upon execution of the New 
        Mexico Consumptive Use and Forbearance Agreement and the New 
        Mexico Unit Agreement, the Secretary shall promptly comply with 
        all aspects of the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.), the Endangered Species Act of 1973 (16 
        U.S.C. 1531 et seq.), and all other applicable environmental 
        Acts and regulations.
            (2) Execution of the new mexico consumptive use and 
        forbearance agreement and the new mexico unit agreement.--
        Execution of the New Mexico Consumptive Use and Forbearance 
        Agreement and the New Mexico Unit Agreement by the Secretary 
        under this section shall not constitute a major Federal action 
        under the National Environmental Policy Act (42 U.S.C. 4321 et 
        seq.). The Secretary is directed to carry out all necessary 
        environmental compliance required by Federal law in implementing 
        the New Mexico Consumptive Use and Forbearance Agreement and the 
        New Mexico Unit Agreement.
            (3) Lead agency.--The Bureau of Reclamation shall be 
        designated as the lead agency with respect to environmental 
        compliance. Upon request by the State of New Mexico to the 
        Secretary, the State of New Mexico shall be designated as joint 
        lead agency with respect to environmental compliance.

    (i) New Mexico Unit Fund.--The Secretary shall deposit the amounts 
made available under paragraph (2)(D)(i) of section 403(f) of the 
Colorado River Basin Project Act (43 U.S.C. 1543(f)) (as amended by 
section 107(a)) into the New Mexico Unit Fund, a State of New Mexico 
Fund established and administered by the New Mexico Interstate Stream 
Commission. Withdrawals from the New Mexico Unit Fund shall be for the 
purpose of paying costs of the New Mexico Unit or other water 
utilization alternatives to meet water supply demands in the Southwest 
Water Planning Region of New Mexico, as determined by the New Mexico 
Interstate Stream Commission in consultation with the Southwest New 
Mexico Water Study Group or its successor, including costs associated 
with planning and environmental compliance activities and environmental 
mitigation and restoration.
    (j) <<NOTE: Deadlines.>> Additional Funding for New Mexico Unit.--
The Secretary shall pay for an additional portion of the costs of 
constructing the New Mexico Unit from funds made available under 
paragraph

[[Page 118 STAT. 3530]]

(2)(D)(ii) of section 403(f) of the Colorado River Basin Project Act (43 
U.S.C. 1543(f)) (as amended by section 107(a)) on a construction 
schedule basis, up to a maximum amount under this subparagraph (j) of 
$34,000,000, as adjusted to reflect changes since January 1, 2004, in 
the construction cost indices applicable to the types of construction 
involved in construction of the New Mexico Unit, upon satisfaction of 
the conditions that--
            (1) <<NOTE: Notices.>> the State of New Mexico must provide 
        notice to the Secretary in writing not later than December 31, 
        2014, that the State of New Mexico intends to have constructed 
        or developed the New Mexico Unit; and
            (2) <<NOTE: Federal Register, publication.>> the Secretary 
        must have issued in the Federal Register not later than December 
        31, 2019, a Record of Decision approving the project based on an 
        environmental analysis required pursuant to applicable Federal 
        law and on a demonstration that construction of a project for 
        the New Mexico Unit that would deliver an average annual safe 
        yield, based on a 50-year planning period, greater than 10,000 
        acre feet per year, would not cost more per acre foot of water 
        diverted than a project sized to produce an average annual safe 
        yield of 10,000 acre feet per year. If New Mexico exercises all 
        reasonable efforts to obtain the issuance of such Record of 
        Decision, but the Secretary is not able to issue such Record of 
        Decision by December 31, 2019, for reasons outside the control 
        of the State of New Mexico, the Secretary may extend the 
        deadline for a reasonable period of time, not to extend beyond 
        December 31, 2030.

    (k) Rate of Return Exceeding 4 Percent.--If the rate of return on 
carryover funds held in the Lower Colorado Basin Development Fund on the 
date that construction of the New Mexico Unit is initiated exceeds an 
average effective annual rate of 4 percent for the period beginning on 
the date of enactment of this Act through the date of initiation of 
construction of the New Mexico Unit, the Secretary shall pay an 
additional portion of the costs of the construction costs associated 
with the New Mexico Unit, on a construction schedule basis, using funds 
made available under paragraph (2)(D)(ii) of section 403(f) of the 
Colorado River Basin Project Act (43 U.S.C. 1543(f)) (as amended by 
section 107(a)). The amount of such additional payments shall be equal 
to 25 percent of the total return on the carryover funds earned during 
the period in question that is in excess of a return on such funds at an 
annual average effective return of 4 percent, up to a maximum total of 
not more than $28,000,000, as adjusted to reflect changes since January 
1, 2004, in the construction cost indices applicable to the types of 
construction involved in construction of the New Mexico Unit.
    (l) Disclaimer.--Nothing in this Act shall affect, alter, or 
diminish rights to use of water of the Gila River within New Mexico, or 
the authority of the State of New Mexico to administer such rights for 
use within the State, as such rights are quantified by article IV of the 
decree of the United States Supreme Court in Arizona v. California (376 
U.S. 340).
    (m) Priority of Other Exchanges.--The Secretary shall not approve 
any exchange of Gila River water for water supplied by the CAP that 
would amend, alter, or conflict with the exchanges authorized by section 
304(f) of the Colorado River Basin Project Act (43 U.S.C. 1524(f)).

[[Page 118 STAT. 3531]]

SEC. 213. MISCELLANEOUS PROVISIONS.

    (a) Waiver of Sovereign Immunity.--If any party to the Gila River 
agreement or signatory to an exhibit executed pursuant to section 203(b) 
or to the New Mexico Consumptive Use and Forbearance Agreement brings an 
action in any court of the United States or any State court relating 
only and directly to the interpretation or enforcement of this title or 
the Gila River agreement (including enforcement of any indemnity 
provisions contained in the Gila River agreement) or the New Mexico 
Consumptive Use and Forbearance Agreement, and names the United States 
or the Community as a party, or if any other landowner or water user in 
the Gila River basin in Arizona (except any party referred to in 
subparagraph 28.1.4 of the Gila River agreement) files a lawsuit 
relating only and directly to the interpretation or enforcement of 
subparagraph 6.2, subparagraph 6.3, paragraph 25, subparagraph 26.2, 
subparagraph 26.8, and subparagraph 28.1.3 of the Gila River agreement, 
naming the United States or the Community as a party--
            (1) the United States, the Community, or both, may be joined 
        in any such action; and
            (2) any claim by the United States or the Community to 
        sovereign immunity from the action is waived, but only for the 
        limited and sole purpose of such interpretation or enforcement 
        (including any indemnity provisions contained in the Gila River 
        agreement).

    (b) Effect of Act.--Nothing in this title quantifies or otherwise 
affects the water rights, or claims or entitlements to water, of any 
Indian tribe, band, or community, other than the Community.
    (c) Limitation on Claims for Reimbursement.--The United States shall 
not make a claim for reimbursement of costs arising out of the 
implementation of this title or the Gila River agreement against any 
Indian-owned land within the Reservation, and no assessment shall be 
made in regard to those costs against that land.
    (d) No Effect on Future Allocations.--Water received under a lease 
or exchange of Community CAP water under this title shall not affect any 
future allocation or reallocation of CAP water by the Secretary.
    (e) Community Repayment Contract.--To the extent it is not in 
conflict with this Act, the Secretary is directed to and shall execute 
Amendment No. 1 to the Community repayment contract, attached as exhibit 
8.1 to the Gila River agreement, to provide, among other things, that 
the costs incurred under that contract shall be nonreimbursable by the 
Community. To the extent amendments are executed to make Amendment No. 1 
consistent with this title, such amendments are also authorized, 
ratified, and confirmed.
    (f) Salt River Project Rights and Contracts.--
            (1) In general.--Subject to paragraph (2), the agreement 
        between the United States and the Salt River Valley Water Users' 
        Association dated September 6, 1917, as amended, and the rights 
        of the Salt River Project to store water from the Salt River and 
        Verde River at Roosevelt Dam, Horse Mesa Dam, Mormon Flat Dam, 
        Stewart Mountain Dam, Horseshoe Dam, and Bartlett Dam and to 
        deliver the stored water to shareholders of the Salt River 
        Project and others for all beneficial uses and purposes 
        recognized under State law and to

[[Page 118 STAT. 3532]]

        the Community under the Gila River agreement, are authorized, 
        ratified, and confirmed.
            (2) Priority date; quantification.--The priority date and 
        quantification of rights described in paragraph (1) shall be 
        determined in an appropriate proceeding in State court.
            (3) Care, operation, and maintenance.--The Salt River 
        Project shall retain authority and responsibility existing on 
        the date of enactment of this Act for decisions relating to the 
        care, operation, and maintenance of the Salt River Project water 
        delivery system, including the Salt River Project reservoirs on 
        the Salt River and Verde River, vested in Salt River Project 
        under the 1917 agreement, as amended, described in paragraph 
        (1).

    (g) UV Irrigation Districts.--
            (1) In general.--As partial consideration for obligations 
        the UV irrigation districts shall be undertaking, the obligation 
        to comply with the terms and conditions of term 5 of exhibit 
        2.30 (New Mexico Risk Allocation Terms) to the New Mexico 
        Consumptive Use and Forbearance Agreement, the Gila Valley 
        Irrigation District, in 2010, shall receive funds from the 
        Secretary in an amount of $15,000,000 (adjusted to reflect 
        changes since the date of enactment of this Act in the cost 
        indices applicable to the type of design and construction 
        involved in the design and construction of a pipeline at or 
        upstream from the Ft. Thomas Diversion Dam to the lands farmed 
        by the San Carlos Apache Tribe, together with canal connections 
        upstream from the Ft. Thomas Diversion Dam and connection 
        devices appropriate to introduce pumped water into the 
        Pipeline).
            (2) Restriction.--The funds to be received by the Gila 
        Valley Irrigation District shall be used solely for the purpose 
        of developing programs or constructing facilities to assist with 
        mitigating the risks and costs associated with compliance with 
        the terms and conditions of term 5 of exhibit 2.30 (New Mexico 
        Risk Allocation Terms) of the New Mexico Consumptive and 
        Forbearance Agreement, and for no other purpose.

    (h) Limitation on Liability of United States.--
            (1) In general.--The United States shall have no trust or 
        other obligation--
                    (A) to monitor, administer, or account for, in any 
                manner, any of the funds paid to the Community by any 
                party to the Gila River agreement; or
                    (B) to review or approve the expenditure of those 
                funds.
            (2) Indemnification.--The Community shall indemnify the 
        United States, and hold the United States harmless, with respect 
        to any and all claims (including claims for takings or breach of 
        trust) arising out of the receipt or expenditure of funds 
        described in paragraph (1)(A).

    (i) Blue Ridge Project Transfer Authorization.--
            (1) Definitions.--In this subsection:
                    (A) Blue ridge project.--The term ``Blue Ridge 
                Project'' means the water storage reservoir known as 
                ``Blue Ridge Reservoir'' situated in Coconino and Gila 
                Counties, Arizona, consisting generally of--
                          (i) Blue Ridge Dam and all pipelines, tunnels, 
                      buildings, hydroelectric generating facilities, 
                      and other structures of every kind, transmission, 
                      telephone and

[[Page 118 STAT. 3533]]

                      fiber optic lines, pumps, machinery, tools, and 
                      appliances; and
                          (ii) all real or personal property, 
                      appurtenant to or used, or constructed or 
                      otherwise acquired to be used, in connection with 
                      Blue Ridge Reservoir.
                    (B) Salt river project agricultural improvement and 
                power district.--The term ``Salt River Project 
                Agricultural Improvement and Power District'' means the 
                Salt River Project Agricultural Improvement and Power 
                District, a political subdivision of the State of 
                Arizona.
            (2) Transfer of title.--The United States, acting through 
        the Secretary of the Interior, shall accept from the Salt River 
        Project Agricultural Improvement and Power District the transfer 
        of title to the Blue Ridge Project. The transfer of title to the 
        Blue Ridge Project from the Salt River Project Agricultural 
        Improvement and Power District to the United States shall be 
        without cost to the United States. The transfer, change of use 
        or change of place of use of any water rights associated with 
        the Blue Ridge Project shall be made in accordance with Arizona 
        law.
            (3) Use and benefit of salt river federal reclamation 
        project.--
                    (A) In general.--Subject to subparagraph (B), the 
                United States shall hold title to the Blue Ridge Project 
                for the exclusive use and benefit of the Salt River 
                Federal Reclamation Project.
                    (B) Availability of water.--Up to 3,500 acre-feet of 
                water per year may be made available from Blue Ridge 
                Reservoir for municipal and domestic uses in Northern 
                Gila County, Arizona, without cost to the Salt River 
                Federal Reclamation Project.
            (4) Termination of jurisdiction.--
                    (A) Licensing and regulatory authority.--Upon the 
                transfer of title of the Blue Ridge Project to the 
                United States under paragraph (2), the Federal Energy 
                Regulatory Commission shall have no further licensing 
                and regulatory authority over Project Number 2304, the 
                Blue Ridge Project, located within the State.
                    (B) Environmental laws.--All other applicable 
                Federal environmental laws shall continue to apply to 
                the Blue Ridge Project, including the Endangered Species 
                Act of 1973 (16 U.S.C. 1531 et seq.) and the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.).
            (5) Care, operation, and maintenance.--Upon the transfer of 
        title of the Blue Ridge Project to the United States under 
        paragraph (2), the Salt River Valley Water Users' Association 
        and the Salt River Project Agricultural Improvement and Power 
        District shall be responsible for the care, operation, and 
        maintenance of the project pursuant to the contract between the 
        United States and the Salt River Valley Water Users' 
        Association, dated September 6, 1917, as amended.
            (6) C.C. cragin dam & reservoir.--Upon the transfer of title 
        of the Blue Ridge Project to the United States under paragraph 
        (2), Blue Ridge Dam and Reservoir shall thereafter be known as 
        the ``C.C. Cragin Dam and Reservoir''.

[[Page 118 STAT. 3534]]

    (j) Effect on Current Law; Jurisdiction of Courts.--Nothing in this 
section--
            (1) alters law in effect on the day before the date of 
        enactment of this Act with respect to pre-enforcement review of 
        Federal environmental enforcement actions; or
            (2) confers jurisdiction on any State court to interpret 
        subparagraphs (D), (E), and (G) of section 207(a)(1) where such 
        jurisdiction does not otherwise exist.

SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--
            (1) Rehabilitation of irrigation works.--
                    (A) In general.--There is authorized to be 
                appropriated $52,396,000, adjusted to reflect changes 
                since January 1, 2000, under subparagraph (B) for the 
                rehabilitation of irrigation works under section 
                203(d)(4).
                    (B) Adjustment.--The amount under subparagraph (A) 
                shall be adjusted by such amounts, if any, as may be 
                required by reason of changes in construction costs as 
                indicated by engineering cost indices applicable to the 
                types of construction required by the rehabilitation.
            (2) Bureau of reclamation construction oversight.--There are 
        authorized to be appropriated such sums as are necessary for the 
        Bureau of Reclamation to undertake the oversight of the 
        construction projects authorized under section 203.
            (3) Subsidence remediation program.--There are authorized to 
        be appropriated such sums as are necessary to carry out the 
        subsidence remediation program under section 209 (including such 
        sums as are necessary, not to exceed $4,000,000, to carry out 
        the subsidence remediation and repair required under section 
        209(d)).
            (4) Water rights reduction.--There are authorized to be 
        appropriated such sums as are necessary to carry out the water 
        rights reduction program under section 211.
            (5) Safford facility.--There are authorized to be 
        appropriated such sums as are necessary to--
                    (A) retire $13,900,000, minus any amounts 
                appropriated for this purpose, of the debt incurred by 
                Safford to pay costs associated with the construction of 
                the Safford facility as identified in exhibit 26.1 to 
                the Gila River agreement; and
                    (B) pay the interest accrued on that amount.
            (6) Environmental compliance.--There are authorized to be 
        appropriated--
                    (A) such sums as are necessary to carry out--
                          (i) all necessary environmental compliance 
                      activities undertaken by the Secretary associated 
                      with the Gila River agreement and this title;
                          (ii) any mitigation measures adopted by the 
                      Secretary that are the responsibility of the 
                      Community associated with the construction of the 
                      diversion and delivery facilities of the water 
                      referred to in section 204 for use on the 
                      reservation; and
                          (iii) no more than 50 percent of the cost of 
                      any mitigation measures adopted by the Secretary 
                      that are the responsibility of the Community 
                      associated

[[Page 118 STAT. 3535]]

                      with the diversion or delivery of the water 
                      referred to in section 204 for use on the 
                      Reservation, other than any responsibility related 
                      to water delivered to any other person by lease or 
                      exchange; and
                    (B) to carry out the mitigation measures in the 
                Roosevelt Habitat Conservation Plan, not more than 
                $10,000,000.
            (7) UV irrigation districts.--There are authorized to be 
        appropriated such sums as are necessary to pay the Gila Valley 
        Irrigation District an amount of $15,000,000 (adjusted to 
        reflect changes since the date of enactment of the Arizona Water 
        Settlements Act of 2004 in the cost indices applicable to the 
        type of design and construction involved in the design and 
        construction of a pipeline at or upstream from the Ft. Thomas 
        Diversion Dam to the lands farmed by the San Carlos Apache 
        Tribe, together with canal connections upstream from the Ft. 
        Thomas Diversion Dam and connection devices appropriate to 
        introduce pumped water into the Pipeline).

    (b) Identified Costs.--
            (1) In general.--Amounts made available under subsection (a) 
        shall be considered to be identified costs for purposes of 
        paragraph (2)(D)(v)(I) of section 403(f) of the Colorado River 
        Basin Project Act (43 U.S.C. 1543(f)) (as amended by section 
        107(a)).
            (2) Exception.--Amounts made available under subsection 
        (a)(4) to carry out section 211(b) shall not be considered to be 
        identified costs for purposes of section 403(f)(2)(D)(v)(I) of 
        the Colorado River Basin Project Act (43 U.S.C. 
        1543(f)(2)(D)(v)(I)) (as amended by section 107(a)).
SEC. 215. REPEAL <<NOTE: 43 USC 1501 note.>> ON FAILURE OF 
                        ENFORCEABILITY DATE.

    If the Secretary does not publish a statement of findings under 
section 207(c) by December 31, 2007--
            (1) except for section 213(i), this title is repealed 
        effective January 1, 2008, and any action taken by the Secretary 
        and any contract entered under any provision of this title shall 
        be void;
            (2) any amounts appropriated under paragraphs (1) through 
        (7) of section 214(a), together with any interest on those 
        amounts, shall immediately revert to the general fund of the 
        Treasury;
            (3) any amounts made available under section 214(b) that 
        remain unexpended shall immediately revert to the general fund 
        of the Treasury; and
            (4) any amounts paid by the Salt River Project in accordance 
        with the Gila River agreement shall immediately be returned to 
        the Salt River Project.

           TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

SEC. 301. SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT.

    The Southern Arizona Water Rights Settlement Act of 1982 (96 Stat. 
1274) is amended to read as follows:

[[Page 118 STAT. 3536]]

 ``TITLE III--SOUTHERN <<NOTE: Southern Arizona Water Rights Settlement 
Amendments Act of 2004.>> ARIZONA WATER RIGHTS SETTLEMENT

``SEC. 301. SHORT TITLE.

    ``This title may be cited as the `Southern Arizona Water Rights 
Settlement Amendments Act of 2004'.

``SEC. 302. PURPOSES.

    ``The purposes of this title are--
            ``(1) to authorize, ratify, and confirm the agreements 
        referred to in section 309(h);
            ``(2) to authorize and direct the Secretary to execute and 
        perform all obligations of the Secretary under those agreements; 
        and
            ``(3) to authorize the actions and appropriations necessary 
        for the United States to meet obligations of the United States 
        under those agreements and this title.

``SEC. 303. DEFINITIONS.

    ``In this title:
            ``(1) Acre-foot.--The term `acre-foot' means the quantity of 
        water necessary to cover 1 acre of land to a depth of 1 foot.
            ``(2) After-acquired trust land.--The term `after-acquired 
        trust land' means land that--
                    ``(A) is located--
                          ``(i) within the State; but
                          ``(ii) outside the exterior boundaries of the 
                      Nation's Reservation; and
                    ``(B) is taken into trust by the United States for 
                the benefit of the Nation after the enforceability date.
            ``(3) Agreement of december 11, 1980.--The term `agreement 
        of December 11, 1980' means the contract entered into by the 
        United States and the Nation on December 11, 1980.
            ``(4) Agreement of october 11, 1983.--The term `agreement of 
        October 11, 1983' means the contract entered into by the United 
        States and the Nation on October 11, 1983.
            ``(5) Allottee.--The term `allottee' means a person that 
        holds a beneficial real property interest in an Indian allotment 
        that is--
                    ``(A) located within the Reservation; and
                    ``(B) held in trust by the United States.
            ``(6) Allottee class.--The term `allottee class' means an 
        applicable plaintiff class certified by the court of 
        jurisdiction in--
                    ``(A) the Alvarez case; or
                    ``(B) the Tucson case.
            ``(7) Alvarez case.--The term `Alvarez case' means the first 
        through third causes of action of the third amended complaint in 
        Alvarez v. City of Tucson (Civ. No. 93-09039 TUC FRZ (D. Ariz., 
        filed April 21, 1993)).
            ``(8) Applicable law.--The term `applicable law' means any 
        applicable Federal, State, tribal, or local law.
            ``(9) Asarco.--The term `Asarco' means Asarco Incorporated, 
        a New Jersey corporation of that name, and its subsidiaries 
        operating mining operations in the State.

[[Page 118 STAT. 3537]]

            ``(10) Asarco agreement.--The term `Asarco agreement' means 
        the agreement by that name attached to the Tohono O'odham 
        settlement agreement as exhibit 13.1.
            ``(11) CAP repayment contract.--
                    ``(A) In general.--The term `CAP repayment contract' 
                means the contract dated December 1, 1988 (Contract No. 
                14-0906-09W-09245, Amendment No. 1) between the United 
                States and the Central Arizona Water Conservation 
                District for the delivery of water and the repayment of 
                costs of the Central Arizona Project.
                    ``(B) Inclusions.--The term `CAP repayment contract' 
                includes all amendments to and revisions of that 
                contract.
            ``(12) Central arizona project.--The term `Central Arizona 
        Project' means the reclamation project authorized and 
        constructed by the United States in accordance with title III of 
        the Colorado River Basin Project Act (43 U.S.C. 1521 et seq.).
            ``(13) Central arizona project link pipeline.--The term 
        `Central Arizona Project link pipeline' means the pipeline 
        extending from the Tucson Aqueduct of the Central Arizona 
        Project to Station 293+36.
            ``(14) Central arizona project service area.--The term 
        `Central Arizona Project service area' means--
                    ``(A) the geographical area comprised of Maricopa, 
                Pinal, and Pima Counties, Arizona, in which the Central 
                Arizona Water Conservation District delivers Central 
                Arizona Project water; and
                    ``(B) any expansion of that area under applicable 
                law.
            ``(15) Central arizona water conservation district.--The 
        term `Central Arizona Water Conservation District' means the 
        political subdivision of the State that is the contractor under 
        the CAP repayment contract.
            ``(16) Cooperative farm.--The term `cooperative farm' means 
        the farm on land served by an irrigation system and the 
        extension of the irrigation system provided for under paragraphs 
        (1) and (2) of section 304(c).
            ``(17) Cooperative fund.--The term `cooperative fund' means 
        the cooperative fund established by section 313 of the 1982 Act 
        and reauthorized by section 310.
            ``(18) Delivery and distribution system.--
                    ``(A) In general.--The term `delivery and 
                distribution system' means--
                          ``(i) the Central Arizona Project aqueduct;
                          ``(ii) the Central Arizona Project link 
                      pipeline; and
                          ``(iii) the pipelines, canals, aqueducts, 
                      conduits, and other necessary facilities for the 
                      delivery of water under the Central Arizona 
                      Project.
                    ``(B) Inclusions.--The term `delivery and 
                distribution system' includes pumping facilities, power 
                plants, and electric power transmission facilities 
                external to the boundaries of any farm to which the 
                water is distributed.
            ``(19) Eastern schuk toak district.--The term `eastern Schuk 
        Toak District' means the portion of the Schuk Toak District (1 
        of 11 political subdivisions of the Nation established under the 
        constitution of the Nation) that is located within the Tucson 
        management area.

[[Page 118 STAT. 3538]]

            ``(20) Enforceability date.--The term `enforceability date' 
        means the date on which title III of the Arizona Water 
        Settlements Act takes effect (as described in section 302(b) of 
        the Arizona Water Settlements Act).
            ``(21) Exempt well.--The term `exempt well' means a water 
        well--
                    ``(A) the maximum pumping capacity of which is not 
                more than 35 gallons per minute; and
                    ``(B) the water from which is used for--
                          ``(i) the supply, service, or activities of 
                      households or private residences;
                          ``(ii) landscaping;
                          ``(iii) livestock watering; or
                          ``(iv) the irrigation of not more than 2 acres 
                      of land for the production of 1 or more 
                      agricultural or other commodities for--
                                    ``(I) sale;
                                    ``(II) human consumption; or
                                    ``(III) use as feed for livestock or 
                                poultry.
            ``(22) Fee owner of allotted land.--The term `fee owner of 
        allotted land' means a person that holds fee simple title in 
        real property on the Reservation that, at any time before the 
        date on which the person acquired fee simple title, was held in 
        trust by the United States as an Indian allotment.
            ``(23) FICO.--The term `FICO' means collectively the Farmers 
        Investment Co., an Arizona corporation of that name, and the 
        Farmers Water Co., an Arizona corporation of that name.
            ``(24) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(25) Injury to water quality.--The term `injury to water 
        quality' means any contamination, diminution, or deprivation of 
        water quality under applicable law.
            ``(26) Injury to water rights.--
                    ``(A) In general.--The term `injury to water rights' 
                means an interference with, diminution of, or 
                deprivation of water rights under applicable law.
                    ``(B) Inclusion.--The term `injury to water rights' 
                includes a change in the underground water table and any 
                effect of such a change.
                    ``(C) Exclusion.--The term `injury to water rights' 
                does not include subsidence damage or injury to water 
                quality.
            ``(27) Irrigation system.--
                    ``(A) In general.--The term `irrigation system' 
                means canals, laterals, ditches, sprinklers, bubblers, 
                and other irrigation works used to distribute water 
                within the boundaries of a farm.
                    ``(B) Inclusions.--The term `irrigation system', 
                with respect to the cooperative farm, includes 
                activities, procedures, works, and devices for--
                          ``(i) rehabilitation of fields;
                          ``(ii) remediation of sinkholes, sinks, 
                      depressions, and fissures; and
                          ``(iii) stabilization of the banks of the 
                      Santa Cruz River.

[[Page 118 STAT. 3539]]

            ``(28) Lower colorado river basin development fund.--The 
        term `Lower Colorado River Basin Development Fund' means the 
        fund established by section 403 of the Colorado River Basin 
        Project Act (43 U.S.C. 1543).
            ``(29) M&I priority water.--The term `M&I priority water' 
        means Central Arizona Project water that has municipal and 
        industrial priority.
            ``(30) Nation.--The term `Nation' means the Tohono O'odham 
        Nation (formerly known as the Papago Tribe) organized under a 
        constitution approved in accordance with section 16 of the Act 
        of June 18, 1934 (25 U.S.C. 476).
            ``(31) Nation's reservation.--The term `Nation's 
        Reservation' means all land within the exterior boundaries of--
                    ``(A) the Sells Tohono O'odham Reservation 
                established by the Executive order of February 1, 1917, 
                and the Act of February 21, 1931 (46 Stat. 1202, chapter 
                267);
                    ``(B) the San Xavier Reservation established by the 
                Executive order of July 1, 1874;
                    ``(C) the Gila Bend Indian Reservation established 
                by the Executive order of December 12, 1882, and 
                modified by the Executive order of June 17, 1909;
                    ``(D) the Florence Village established by Public Law 
                95-361 (92 Stat. 595);
                    ``(E) all land acquired in accordance with the Gila 
                Bend Indian Reservation Lands Replacement Act (100 Stat. 
                1798), if title to the land is held in trust by the 
                Secretary for the benefit of the Nation; and
                    ``(F) all other land to which the United States 
                holds legal title in trust for the benefit of the Nation 
                and that is added to the Nation's Reservation or granted 
                reservation status in accordance with applicable Federal 
                law before the enforceability date.
            ``(32) Net irrigable acres.--The term `net irrigable acres' 
        means, with respect to a farm, the acreage of the farm that is 
        suitable for agriculture, as determined by the Nation and the 
        Secretary.
            ``(33) NIA priority water.--The term `NIA priority water' 
        means Central Arizona Project water that has non-Indian 
        agricultural priority.
            ``(34) San xavier allottees association.--The term `San 
        Xavier Allottees Association' means the nonprofit corporation 
        established under State law for the purpose of representing and 
        advocating the interests of allottees.
            ``(35) San xavier cooperative association.--The term `San 
        Xavier Cooperative Association' means the entity chartered under 
        the laws of the Nation (or a successor of that entity) that is a 
        lessee of land within the cooperative farm.
            ``(36) San xavier district.--The term `San Xavier District' 
        means the district of that name, 1 of 11 political subdivisions 
        of the Nation established under the constitution of the Nation.
            ``(37) San xavier district council.--The term `San Xavier 
        District Council' means the governing body of the San Xavier 
        District, as established under the constitution of the Nation.
            ``(38) San xavier reservation.--The term `San Xavier 
        Reservation' means the San Xavier Indian Reservation established 
        by the Executive order of July 1, 1874.

[[Page 118 STAT. 3540]]

            ``(39) Schuk toak farm.--The term `Schuk Toak Farm' means a 
        farm constructed in the eastern Schuk Toak District served by 
        the irrigation system provided for under section 304(c)(4).
            ``(40) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(41) State.--The term `State' means the State of Arizona.
            ``(42) Subjugate.--The term `subjugate' means to prepare 
        land for agricultural use through irrigation.
            ``(43) Subsidence damage.--The term `subsidence damage' 
        means injury to land, water, or other real property resulting 
        from the settling of geologic strata or cracking in the surface 
        of the earth of any length or depth, which settling or cracking 
        is caused by the pumping of water.
            ``(44) Surface water.--The term `surface water' means all 
        water that is appropriable under State law.
            ``(45) Tohono o'odham settlement agreement.--The term 
        `Tohono O'odham settlement agreement' means the agreement dated 
        April 30, 2003 (including all exhibits of and attachments to the 
        agreement).
            ``(46) Tucson case.--The term `Tucson case' means United 
        States et al. v. City of Tucson, et al. (Civ. No. 75-0939 TUC 
        consol. with Civ. No. 75-0951 TUC FRZ (D. Ariz., filed February 
        20, 1975)).
            ``(47) Tucson interim water lease.--The term `Tucson interim 
        water lease' means the lease, and any pre-2004 amendments and 
        extensions of the lease, approved by the Secretary, between the 
        city of Tucson, Arizona, and the Nation, dated October 24, 1992.
            ``(48) Tucson management area.--The term `Tucson management 
        area' means the area in the State comprised of--
                    ``(A) the area--
                          ``(i) designated as the Tucson Active 
                      Management Area under the Arizona Groundwater 
                      Management Act of 1980 (1980 Ariz. Sess. Laws 1); 
                      and
                          ``(ii) subsequently divided into the Tucson 
                      Active Management Area and the Santa Cruz Active 
                      Management Area (1994 Ariz. Sess. Laws 296); and
                    ``(B) the portion of the Upper Santa Cruz Basin that 
                is not located within the area described in subparagraph 
                (A)(i).
            ``(49) Turnout.--The term `turnout' means a point of water 
        delivery on the Central Arizona Project aqueduct.
            ``(50) Underground storage.--The term `underground storage' 
        means storage of water accomplished under a project authorized 
        under section 308(e).
            ``(51) United states as trustee.--The term `United States as 
        Trustee' means the United States, acting on behalf of the Nation 
        and allottees, but in no other capacity.
            ``(52) Value.--The term `value' means the value attributed 
        to water based on the greater of--
                    ``(A) the anticipated or actual use of the water; or
                    ``(B) the fair market value of the water.
            ``(53) Water right.--The term `water right' means any right 
        in or to groundwater, surface water, or effluent under 
        applicable law.

[[Page 118 STAT. 3541]]

            ``(54) 1982 act.--The term `1982 Act' means the Southern 
        Arizona Water Rights Settlement Act of 1982 (96 Stat. 1274; 106 
        Stat. 3256), as in effect on the day before the enforceability 
        date.

``SEC. 304. WATER DELIVERY AND CONSTRUCTION OBLIGATIONS.

    ``(a) Water Delivery.--The Secretary shall deliver annually from the 
main project works of the Central Arizona Project, a total of 37,800 
acre-feet of water suitable for agricultural use, of which--
            ``(1) 27,000 acre-feet shall--
                    ``(A) be deliverable for use to the San Xavier 
                Reservation; or
                    ``(B) otherwise be used in accordance with section 
                309; and
            ``(2) 10,800 acre-feet shall--
                    ``(A) be deliverable for use to the eastern Schuk 
                Toak District; or
                    ``(B) otherwise be used in accordance with section 
                309.

    ``(b) Delivery and Distribution Systems.--The Secretary shall 
(without cost to the Nation, any allottee, the San Xavier Cooperative 
Association, or the San Xavier Allottees Association), as part of the 
main project works of the Central Arizona Project, design, construct, 
operate, maintain, and replace the delivery and distribution systems 
necessary to deliver the water described in subsection (a).
    ``(c) <<NOTE: Deadlines.>> Duties of the Secretary.--
            ``(1) Completion of delivery and distribution system and 
        improvement to existing irrigation system.--Except as provided 
        in subsection (d), not later than 8 years after the 
        enforceability date, the Secretary shall complete the design and 
        construction of improvements to the irrigation system that 
        serves the cooperative farm.
            ``(2) Extension of existing irrigation system within the san 
        xavier reservation.--
                    ``(A) In general.--Except as provided in subsection 
                (d), not later than 8 years after the enforceability 
                date, in addition to the improvements described in 
                paragraph (1), the Secretary shall complete the design 
                and construction of the extension of the irrigation 
                system for the cooperative farm.
                    ``(B) Capacity.--On completion of the extension, the 
                extended cooperative farm irrigation system shall serve 
                2,300 net irrigable acres on the San Xavier Reservation, 
                unless the Secretary and the San Xavier Cooperative 
                Association agree on fewer net irrigable acres.
            ``(3) Construction of new farm.--
                    ``(A) In general.--Except as provided in subsection 
                (d), not later than 8 years after the enforceability 
                date, the Secretary shall--
                          ``(i) design and construct within the San 
                      Xavier Reservation such additional canals, 
                      laterals, farm ditches, and irrigation works as 
                      are necessary for the efficient distribution for 
                      agricultural purposes of that portion of the 
                      27,000 acre-feet annually of water described in 
                      subsection (a)(1) that is not required for

[[Page 118 STAT. 3542]]

                      the irrigation systems described in paragraphs (1) 
                      and (2) of subsection (c); or
                          ``(ii) in lieu of the actions described in 
                      clause (i), pay to the San Xavier District 
                      $18,300,000 (adjusted as provided in section 
                      317(a)(2)) in full satisfaction of the obligations 
                      of the United States described in clause (i).
                    ``(B) Election.--
                          ``(i) <<NOTE: Notification.>> In general.--The 
                      San Xavier District Council may make a 
                      nonrevocable election whether to receive the 
                      benefits described under clause (i) or (ii) of 
                      subparagraph (A) by notifying the Secretary by not 
                      later than 180 days after the enforceability date 
                      or January 1, 2010, whichever is later, by written 
                      and certified resolution of the San Xavier 
                      District Council.
                          ``(ii) No resolution.--If the Secretary does 
                      not receive such a resolution by the deadline 
                      specified in clause (i), the Secretary shall pay 
                      $18,300,000 (adjusted as provided in section 
                      317(a)(2)) to the San Xavier District in lieu of 
                      carrying out the obligations of the United States 
                      under subparagraph (A)(i).
                    ``(C) Source of funds and time of payment.--
                          ``(i) In general.--Payment of $18,300,000 
                      (adjusted as provided in section 317(a)(2)) under 
                      this paragraph shall be made by the Secretary from 
                      the Lower Colorado River Basin Development Fund--
                                    ``(I) not later than 60 days after 
                                an election described in subparagraph 
                                (B) is made (if such an election is 
                                made), but in no event earlier than the 
                                enforceability date or January 1, 2010, 
                                whichever is later; or
                                    ``(II) not later than 240 days after 
                                the enforceability date or January 1, 
                                2010, whichever is later, if no timely 
                                election is made.
                          ``(ii) Payment for additional structures.--
                      Payment of amounts necessary to design and 
                      construct such additional canals, laterals, farm 
                      ditches, and irrigation works as are described in 
                      subparagraph (A)(i) shall be made by the Secretary 
                      from the Lower Colorado River Basin Development 
                      Fund, if an election is made to receive the 
                      benefits under subparagraph (A)(i).
            ``(4) Irrigation and delivery and distribution systems in 
        the eastern schuk toak district.--Except as provided in 
        subsection (d), not later than 1 year after the enforceability 
        date, the Secretary shall complete the design and construction 
        of an irrigation system and delivery and distribution system to 
        serve the farm that is constructed in the eastern Schuk Toak 
        District.

    ``(d) Extension of Deadlines.--
            ``(1) In general.--The Secretary may extend a deadline under 
        subsection (c) if the Secretary determines that compliance with 
        the deadline is impracticable by reason of--
                    ``(A) a material breach by a contractor of a 
                contract that is relevant to carrying out a project or 
                activity described in subsection (c);

[[Page 118 STAT. 3543]]

                    ``(B) the inability of such a contractor, under such 
                a contract, to carry out the contract by reason of force 
                majeure, as defined by the Secretary in the contract;
                    ``(C) unavoidable delay in compliance with 
                applicable Federal and tribal laws, as determined by the 
                Secretary, including--
                          ``(i) the Endangered Species Act of 1973 (16 
                      U.S.C. 1531 et seq.); and
                          ``(ii) the National Environmental Policy Act 
                      of 1969 (42 U.S.C. 4321 et seq.); or
                    ``(D) stoppage in work resulting from the assessment 
                of a tax or fee that is alleged in any court of 
                jurisdiction to be confiscatory or discriminatory.
            ``(2) Notice of finding.--If the Secretary extends a 
        deadline under paragraph (1), the Secretary shall--
                    ``(A) <<NOTE: Federal Register, 
                publication.>> publish a notice of the extension in the 
                Federal Register; and
                    ``(B)(i) include in the notice an estimate of such 
                additional period of time as is necessary to complete 
                the project or activity that is the subject of the 
                extension; and
                    ``(ii) specify a deadline that provides for a period 
                for completion of the project before the end of the 
                period described in clause (i).

    ``(e) Authority of Secretary.--
            ``(1) In general.--In carrying out this title, after 
        providing reasonable notice to the Nation, the Secretary, in 
        compliance with all applicable law, may enter, construct works 
        on, and take such other actions as are related to the entry or 
        construction on land within the San Xavier District and the 
        eastern Schuk Toak District.
            ``(2) Effect on federal activity.--Nothing in this 
        subsection affects the authority of the United States, or any 
        Federal officer, agent, employee, or contractor, to conduct 
        official Federal business or carry out any Federal duty 
        (including any Federal business or duty under this title) on 
        land within the eastern Schuk Toak District or the San Xavier 
        District.

    ``(f) Use of Funds.--
            ``(1) In general.--With respect to any funds received under 
        subsection (c)(3)(A), the San Xavier District--
                    ``(A) shall hold the funds in trust, and invest the 
                funds in interest-bearing deposits and securities, until 
                expended;
                    ``(B) may expend the principal of the funds, and any 
                interest and dividends that accrue on the principal, 
                only in accordance with a budget that is--
                          ``(i) authorized by the San Xavier District 
                      Council; and
                          ``(ii) approved by resolution of the 
                      Legislative Council of the Nation; and
                    ``(C) shall expend the funds--
                          ``(i) for any subjugation of land, development 
                      of water resources, or construction, operation, 
                      maintenance, or replacement of facilities within 
                      the San Xavier Reservation that is not required to 
                      be carried out by the United States under this 
                      title or any other provision of law;
                          ``(ii) to provide governmental services, 
                      including--
                                    ``(I) programs for senior citizens;

[[Page 118 STAT. 3544]]

                                    ``(II) health care services;
                                    ``(III) education;
                                    ``(IV) economic development loans 
                                and assistance; and
                                    ``(V) legal assistance programs;
                          ``(iii) to provide benefits to allottees;
                          ``(iv) to pay the costs of activities of the 
                      San Xavier Allottees Association; or
                          ``(v) to pay any administrative costs incurred 
                      by the Nation or the San Xavier District in 
                      conjunction with any of the activities described 
                      in clauses (i) through (iv).
            ``(2) No liability of secretary; limitation.--
                    ``(A) In general.--The Secretary shall not--
                          ``(i) be responsible for any review, approval, 
                      or audit of the use and expenditure of the funds 
                      described in paragraph (1); or
                          ``(ii) be subject to liability for any claim 
                      or cause of action arising from the use or 
                      expenditure, by the Nation or the San Xavier 
                      District, of those funds.
                    ``(B) Limitation.--No portion of any funds described 
                in paragraph (1) shall be used for per capita payments 
                to any individual member of the Nation or any allottee.

``SEC. 305. DELIVERIES UNDER EXISTING CONTRACT; ALTERNATIVE WATER 
            SUPPLIES.

    ``(a) Delivery of Water.--
            ``(1) In general.--The Secretary shall deliver water from 
        the main project works of the Central Arizona Project, in such 
        quantities, and in accordance with such terms and conditions, as 
        are contained in the agreement of December 11, 1980, the 1982 
        Act, the agreement of October 11, 1983, and the Tohono O'odham 
        settlement agreement (to the extent that the settlement 
        agreement does not conflict with this Act), to 1 or more of--
                    ``(A) the cooperative farm;
                    ``(B) the eastern Schuk Toak District;
                    ``(C) turnouts existing on the enforceability date; 
                and
                    ``(D) any other point of delivery on the Central 
                Arizona Project main aqueduct that is agreed to by--
                          ``(i) the Secretary;
                          ``(ii) the operator of the Central Arizona 
                      Project; and
                          ``(iii) the Nation.
            ``(2) Delivery.--The Secretary shall deliver the water 
        covered by sections 304(a) and 306(a), or an equivalent quantity 
        of water from a source identified under subsection (b)(1), 
        notwithstanding--
                    ``(A) any declaration by the Secretary of a water 
                shortage on the Colorado River; or
                    ``(B) any other occurrence affecting water delivery 
                caused by an act or omission of--
                          ``(i) the Secretary;
                          ``(ii) the United States; or
                          ``(iii) any officer, employee, contractor, or 
                      agent of the Secretary or United States.

    ``(b) Acquisition of Land and Water.--

[[Page 118 STAT. 3545]]

            ``(1) Delivery.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if the Secretary, under the terms and 
                conditions of the agreements referred to in subsection 
                (a)(1), is unable, during any year, to deliver annually 
                from the main project works of the Central Arizona 
                Project any portion of the quantity of water covered by 
                sections 304(a) and 306(a), the Secretary shall 
                identify, acquire and deliver an equivalent quantity of 
                water from, any appropriate source.
                    ``(B) Exception.--The Secretary shall not acquire 
                any water under subparagraph (A) through any transaction 
                that would cause depletion of groundwater supplies or 
                aquifers in the San Xavier District or the eastern Schuk 
                Toak District.
            ``(2) Private land and interests.--
                    ``(A) Acquisition.--
                          ``(i) In general.--Subject to subparagraph 
                      (B), the Secretary may acquire, for not more than 
                      market value, such private land, or interests in 
                      private land, that include rights in surface or 
                      groundwater recognized under State law, as are 
                      necessary for the acquisition and delivery of 
                      water under this subsection.
                          ``(ii) Compliance.--In acquiring rights in 
                      surface water under clause (i), the Secretary 
                      shall comply with all applicable severance and 
                      transfer requirements under State law.
                    ``(B) Prohibition on taking.--The Secretary shall 
                not acquire any land, water, water rights, or contract 
                rights under subparagraph (A) without the consent of the 
                owner of the land, water, water rights, or contract 
                rights.
                    ``(C) Priority.--In acquiring any private land or 
                interest in private land under this paragraph, the 
                Secretary shall give priority to the acquisition of land 
                on which water has been put to beneficial use during any 
                1-year period during the 5-year period preceding the 
                date of acquisition of the land by the Secretary.
            ``(3) Deliveries from acquired land.--Deliveries of water 
        from land acquired under paragraph (2) shall be made only to the 
        extent that the water may be transported within the Tucson 
        management area under applicable law.
            ``(4) Delivery of effluent.--
                    ``(A) In general.--Except on receipt of prior 
                written consent of the Nation, the Secretary shall not 
                deliver effluent directly to the Nation under this 
                subsection.
                    ``(B) No separate delivery system.--The Secretary 
                shall not construct a separate delivery system to 
                deliver effluent to the San Xavier Reservation or the 
                eastern Schuk Toak District.
                    ``(C) No imposition of obligation.--Nothing in this 
                paragraph imposes any obligation on the United States to 
                deliver effluent to the Nation.

    ``(c) Agreements and Contracts.--To facilitate the delivery of water 
to the San Xavier Reservation and the eastern Schuk Toak District under 
this title, the Secretary may enter into a contract or agreement with 
the State, an irrigation district or project, or entity--
            ``(1) for--

[[Page 118 STAT. 3546]]

                    ``(A) the exchange of water; or
                    ``(B) the use of aqueducts, canals, conduits, and 
                other facilities (including pumping plants) for water 
                delivery; or
            ``(2) to use facilities constructed, in whole or in part, 
        with Federal funds.

    ``(d) Compensation and Disbursements.--
            ``(1) Compensation.--If the Secretary is unable to acquire 
        and deliver sufficient quantities of water under section 304(a), 
        this section, or section 306(a), the Secretary shall provide 
        compensation in accordance with paragraph (2) in amounts equal 
        to--
                    ``(A)(i) the value of such quantities of water as 
                are not acquired and delivered, if the delivery and 
                distribution system for, and the improvements to, the 
                irrigation system for the cooperative farm have not been 
                completed by the deadline required under section 
                304(c)(1); or
                    ``(ii) the value of such quantities of water as--
                          ``(I) are ordered by the Nation for use by the 
                      San Xavier Cooperative Association in the 
                      irrigation system; but
                          ``(II) are not delivered in any calendar year;
                    ``(B)(i) the value of such quantities of water as 
                are not acquired and delivered, if the extension of the 
                irrigation system is not completed by the deadline 
                required under section 304(c)(2); or
                    ``(ii) the value of such quantities of water as--
                          ``(I) are ordered by the Nation for use by the 
                      San Xavier Cooperative Association in the 
                      extension to the irrigation system; but
                          ``(II) are not delivered in any calendar year; 
                      and
                    ``(C)(i) the value of such quantities of water as 
                are not acquired and delivered, if the irrigation system 
                is not completed by the deadline required under section 
                304(c)(4); or
                    ``(ii) except as provided in clause (i), the value 
                of such quantities of water as--
                          ``(I) are ordered by the Nation for use in the 
                      irrigation system, or for use by any person or 
                      entity (other than the San Xavier Cooperative 
                      Association); but
                          ``(II) are not delivered in any calendar year.
            ``(2) Disbursement.--Any compensation payable under 
        paragraph (1) shall be disbursed--
                    ``(A) with respect to compensation payable under 
                subparagraphs (A) and (B) of paragraph (1), to the San 
                Xavier Cooperative Association; and
                    ``(B) with respect to compensation payable under 
                paragraph (1)(C), to the Nation for retention by the 
                Nation or disbursement to water users, under the 
                provisions of the water code or other applicable laws of 
                the Nation.

    ``(e) No Effect on Water Rights.--Nothing in this section authorizes 
the Secretary to acquire or otherwise affect the water rights of any 
Indian tribe.

``SEC. 306. ADDITIONAL WATER DELIVERY.

    ``(a) In General.--In addition to the delivery of water described in 
section 304(a), the Secretary shall deliver annually from the

[[Page 118 STAT. 3547]]

main project works of the Central Arizona Project, a total of 28,200 
acre-feet of NIA priority water suitable for agricultural use, of 
which--
            ``(1) 23,000 acre-feet shall--
                    ``(A) be delivered to, and used by, the San Xavier 
                Reservation; or
                    ``(B) otherwise be used by the Nation in accordance 
                with section 309; and
            ``(2) 5,200 acre-feet shall--
                    ``(A) be delivered to, and used by, the eastern 
                Schuk Toak District; or
                    ``(B) otherwise be used by the Nation in accordance 
                with section 309.

    ``(b) State Contribution.--To assist the Secretary in firming water 
under section 105(b)(1)(A) of the Arizona Water Settlements Act, the 
State shall contribute $3,000,000--
            ``(1) in accordance with a schedule that is acceptable to 
        the Secretary and the State; and
            ``(2) in the form of cash or in-kind goods and services.

``SEC. 307. CONDITIONS ON CONSTRUCTION, WATER DELIVERY, REVENUE SHARING.

    ``(a) Conditions on Actions of Secretary.--The Secretary shall carry 
out section 304(c), subsections (a), (b), and (d) of section 305, and 
section 306, only if--
            ``(1) the Nation agrees--
                    ``(A) except as provided in section 308(f)(1), to 
                limit the quantity of groundwater withdrawn by nonexempt 
                wells from beneath the San Xavier Reservation to not 
                more than 10,000 acre-feet;
                    ``(B) except as provided in section 308(f)(2), to 
                limit the quantity of groundwater withdrawn by nonexempt 
                wells from beneath the eastern Schuk Toak District to 
                not more than 3,200 acre-feet;
                    ``(C) to comply with water management plans 
                established by the Secretary under section 308(d);
                    ``(D) to consent to the San Xavier District being 
                deemed a tribal organization (as defined in section 
                900.6 of title 25, Code of Federal Regulations (or any 
                successor regulations)) for purposes identified in 
                subparagraph (E)(iii)(I), as permitted with respect to 
                tribal organizations under title I of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450 et seq.);
                    ``(E) subject to compliance by the Nation with other 
                applicable provisions of part 900 of title 25, Code of 
                Federal Regulations (or any successor regulations), to 
                consent to contracting by the San Xavier District under 
                section 311(b), on the conditions that--
                          ``(i)(I) the plaintiffs in the Alvarez case 
                      and Tucson case have stipulated to the dismissal, 
                      with prejudice, of claims in those cases; and
                          ``(II) those cases have been dismissed with 
                      prejudice;
                          ``(ii) the San Xavier Cooperative Association 
                      has agreed to assume responsibility, after 
                      completion of each of the irrigation systems 
                      described in paragraphs (1), (2), and (3) of 
                      section 304(c) and on the delivery

[[Page 118 STAT. 3548]]

                      of water to those systems, for the operation, 
                      maintenance, and replacement of those systems in 
                      accordance with the first section of the Act of 
                      August 1, 1914 (25 U.S.C. 385); and
                          ``(iii) with respect to the consent of the 
                      Nation to contracting--
                                    ``(I) the consent is limited solely 
                                to contracts for--
                                            ``(aa) the design and 
                                        construction of the delivery and 
                                        distribution system and the 
                                        rehabilitation of the irrigation 
                                        system for the cooperative farm;
                                            ``(bb) the extension of the 
                                        irrigation system for the 
                                        cooperative farm;
                                            ``(cc) the subjugation of 
                                        land to be served by the 
                                        extension of the irrigation 
                                        system;
                                            ``(dd) the design and 
                                        construction of storage 
                                        facilities solely for water 
                                        deliverable for use within the 
                                        San Xavier Reservation; and
                                            ``(ee) the completion by the 
                                        Secretary of a water resources 
                                        study of the San Xavier 
                                        Reservation and subsequent 
                                        preparation of a water 
                                        management plan under section 
                                        308(d);
                                    ``(II) the Nation shall reserve the 
                                right to seek retrocession or 
                                reassumption of contracts described in 
                                subclause (I), and recontracting under 
                                subpart P and other applicable 
                                provisions of part 900 of title 25, Code 
                                of Federal Regulations (or any successor 
                                regulations);
                                    ``(III) the Nation, on granting 
                                consent to such contracting, shall be 
                                released from any responsibility, 
                                liability, claim, or cost from and after 
                                the date on which consent is given, with 
                                respect to past action or inaction by 
                                the Nation, and subsequent action or 
                                inaction by the San Xavier District, 
                                relating to the design and construction 
                                of irrigation systems for the 
                                cooperative farm or the Central Arizona 
                                Project link pipeline; and
                                    ``(IV) the Secretary shall, on the 
                                request of the Nation, execute a waiver 
                                and release to carry out subclause 
                                (III);
                    ``(F) to subjugate, at no cost to the United States, 
                the land for which the irrigation systems under 
                paragraphs (2) and (3) of section 304(c) will be 
                planned, designed, and constructed by the Secretary, on 
                the condition that--
                          ``(i) the obligation of the Nation to 
                      subjugate the land in the cooperative farm that is 
                      to be served by the extension of the irrigation 
                      system under section 304(c)(2) shall be determined 
                      by the Secretary, in consultation with the Nation 
                      and the San Xavier Cooperative Association; and
                          
                      ``(ii) <<NOTE: Deadlines. Notice. Certification.>> 
                      subject to approval by the Secretary of a contract 
                      with the San Xavier District executed under 
                      section 311, to perform that subjugation, a 
                      determination by the Secretary of the subjugation 
                      costs under clause (i), and the provision of 
                      notice by the San Xavier District to the Nation at 
                      least 180 days before the date

[[Page 118 STAT. 3549]]

                      on which the San Xavier District Council certifies 
                      by resolution that the subjugation is scheduled to 
                      commence, the Nation pays to the San Xavier 
                      District, not later than 90 days before the date 
                      on which the subjugation is scheduled to commence, 
                      from the trust fund under section 315, or from 
                      other sources of funds held by the Nation, the 
                      amount determined by the Secretary under clause 
                      (i); and
                    ``(G) subject to business lease No. H54-16-72 dated 
                April 26, 1972, of San Xavier Reservation land to Asarco 
                and approved by the United States on November 14, 1972, 
                that the Nation--
                          ``(i) shall allocate as a first right of 
                      beneficial use by allottees, the San Xavier 
                      District, and other persons within the San Xavier 
                      Reservation--
                                    ``(I) 35,000 acre-feet of the 50,000 
                                acre-feet of water deliverable under 
                                sections 304(a)(1) and 306(a)(1), 
                                including the use of the allocation--
                                            ``(aa) to fulfill the 
                                        obligations prescribed in the 
                                        Asarco agreement; and
                                            ``(bb) for groundwater 
                                        storage, maintenance of instream 
                                        flows, and maintenance of 
                                        riparian vegetation and habitat;
                                    ``(II) the 10,000 acre-feet of 
                                groundwater identified in subsection 
                                (a)(1)(A);
                                    ``(III) the groundwater withdrawn 
                                from exempt wells;
                                    ``(IV) the deferred pumping storage 
                                credits authorized by section 
                                308(f)(1)(B); and
                                    ``(V) the storage credits resulting 
                                from a project authorized in section 
                                308(e) that cannot be lawfully 
                                transferred or otherwise disposed of to 
                                persons for recovery outside the 
                                Nation's Reservation;
                          ``(ii) subject to section 309(b)(2), has the 
                      right--
                                    ``(I) to use, or authorize other 
                                persons or entities to use, any portion 
                                of the allocation of 35,000 acre-feet of 
                                water deliverable under sections 
                                304(a)(1) and 306(a)(1) outside the San 
                                Xavier Reservation for any period during 
                                which there is no identified actual use 
                                of the water within the San Xavier 
                                Reservation;
                                    ``(II) as a first right of use, to 
                                use the remaining acre-feet of water 
                                deliverable under sections 304(a)(1) and 
                                306(a)(1) for any purpose and duration 
                                authorized by this title within or 
                                outside the Nation's Reservation; and
                                    ``(III) subject to section 308(e), 
                                as an exclusive right, to transfer or 
                                otherwise dispose of the storage credits 
                                that may be lawfully transferred or 
                                otherwise disposed of to persons for 
                                recovery outside the Nation's 
                                Reservation;
                          ``(iii) shall issue permits to persons or 
                      entities for use of the water resources referred 
                      to in clause (i);
                          ``(iv) shall, on timely receipt of an order 
                      for water by a permittee under a permit for 
                      Central Arizona Project water referred to in 
                      clause (i), submit the order to--

[[Page 118 STAT. 3550]]

                                    ``(I) the Secretary; or
                                    ``(II) the operating agency for the 
                                Central Arizona Project;
                          ``(v) shall issue permits for water 
                      deliverable under sections 304(a)(2) and 
                      306(a)(2), including quantities of water 
                      reasonably necessary for the irrigation system 
                      referred to in section 304(c)(3);
                          ``(vi) shall issue permits for groundwater 
                      that may be withdrawn from nonexempt wells in the 
                      eastern Schuk Toak District; and
                          ``(vii) shall, on timely receipt of an order 
                      for water by a permittee under a permit for water 
                      referred to in clause (v), submit the order to--
                                    ``(I) the Secretary; or
                                    ``(II) the operating agency for the 
                                Central Arizona Project; and
            ``(2) the Alvarez case and Tucson case have been dismissed 
        with prejudice.

    ``(b) Responsibilities on Completion.--On completion of an 
irrigation system or extension of an irrigation system described in 
paragraph (1) or (2) of section 304(c), or in the case of the irrigation 
system described in section 304(c)(3), if such irrigation system is 
constructed on individual Indian trust allotments, neither the United 
States nor the Nation shall be responsible for the operation, 
maintenance, or replacement of the system.
    ``(c) Payment of Charges.--The Nation shall not be responsible for 
payment of any water service capital charge for Central Arizona Project 
water delivered under section 304, subsection (a) or (b) of section 305, 
or section 306.

``SEC. 308. WATER CODE; WATER MANAGEMENT PLAN; STORAGE PROJECTS; STORAGE 
            ACCOUNTS; GROUNDWATER.

    ``(a) Water Resources.--Water resources described in clauses (i) and 
(ii) of section 307(a)(1)(G)--
            ``(1) shall be subject to section 7 of the Act of February 
        8, 1887 (25 U.S.C. 381); and
            ``(2) shall be apportioned pursuant to clauses (i) and (ii) 
        of section 307(a)(1)(G).

    ``(b) Water Code.--Subject to this title and any other applicable 
law, the Nation shall--
            ``(1) manage, regulate, and control the water resources of 
        the Nation and the water resources granted or confirmed under 
        this title;
            ``(2) establish conditions, limitations, and permit 
        requirements, and promulgate regulations, relating to the 
        storage, recovery, and use of surface water and groundwater 
        within the Nation's Reservation;
            ``(3) enact and maintain--
                    ``(A) an interim allottee water rights code that--
                          ``(i) is consistent with subsection (a);
                          ``(ii) prescribes the rights of allottees 
                      identified in paragraph (4); and
                          ``(iii) provides that the interim allottee 
                      water rights code shall be incorporated in the 
                      comprehensive water code referred to in 
                      subparagraph (B); and

[[Page 118 STAT. 3551]]

                    ``(B) <<NOTE: Deadline.>> not later than 3 years 
                after the enforceability date, a comprehensive water 
                code applicable to the water resources granted or 
                confirmed under this title;
            ``(4) include in each of the water codes enacted under 
        subparagraphs (A) and (B) of paragraph (3)--
                    ``(A) an acknowledgement of the rights described in 
                subsection (a);
                    ``(B) a process by which a just and equitable 
                distribution of the water resources referred to in 
                subsection (a), and any compensation provided under 
                section 305(d), shall be provided to allottees;
                    ``(C) a process by which an allottee may request and 
                receive a permit for the use of any water resources 
                referred to in subsection (a), except the water 
                resources referred to in section 307(a)(1)(G)(ii)(III) 
                and subject to the Nation's first right of use under 
                section 307(a)(1)(G)(ii)(II);
                    ``(D) provisions for the protection of due process, 
                including--
                          ``(i) a fair procedure for consideration and 
                      determination of any request by--
                                    ``(I) a member of the Nation, for a 
                                permit for use of available water 
                                resources granted or confirmed by this 
                                title; and
                                    ``(II) an allottee, for a permit for 
                                use of--
                                            ``(aa) the water resources 
                                        identified in section 
                                        307(a)(1)(G)(i) that are subject 
                                        to a first right of beneficial 
                                        use; or
                                            ``(bb) subject to the first 
                                        right of use of the Nation, 
                                        available water resources 
                                        identified in section 
                                        307(a)(1)(G)(i)(II);
                          ``(ii) provisions for--
                                    ``(I) appeals and adjudications of 
                                denied or disputed permits; and
                                    ``(II) resolution of contested 
                                administrative decisions; and
                          ``(iii) a waiver by the Nation of the 
                      sovereign immunity of the Nation only with respect 
                      to proceedings described in clause (ii) for claims 
                      of declaratory and injunctive relief; and
                    ``(E) a process for satisfying any entitlement to 
                the water resources referred to in section 
                307(a)(1)(G)(i) for which fee owners of allotted land 
                have received final determinations under applicable law; 
                and
            ``(5) submit to the Secretary the comprehensive water code, 
        for approval by the Secretary only of the provisions of the 
        water code (and any amendments to the water code), that 
        implement, with respect to the allottees, the standards 
        described in paragraph (4).

    ``(c) Water Code Approval.--
            ``(1) In general.--On receipt of a comprehensive water code 
        under subsection (b)(5), the Secretary shall--
                    ``(A) issue a written approval of the water code; or
                    ``(B) <<NOTE: Notification.>> provide a written 
                notification to the Nation that--
                          ``(i) identifies such provisions of the water 
                      code that do not conform to subsection (b) or 
                      other applicable Federal law; and

[[Page 118 STAT. 3552]]

                          ``(ii) recommends specific corrective language 
                      for each nonconforming provision.
            ``(2) Revision by nation.--If the Secretary identifies 
        nonconforming provisions in the water code under paragraph 
        (1)(B)(i), the Nation shall revise the water code in accordance 
        with the recommendations of the Secretary under paragraph 
        (1)(B)(ii).
            ``(3) Interim authority.--Until such time as the Nation 
        revises the water code of the Nation in accordance with 
        paragraph (2) and the Secretary subsequently approves the water 
        code, the Secretary may exercise any lawful authority of the 
        Secretary under section 7 of the Act of February 8, 1887 (25 
        U.S.C. 381).
            ``(4) Limitation.--Except as provided in this subsection, 
        nothing in this title requires the approval of the Secretary of 
        the water code of the Nation (or any amendment to that water 
        code).

    ``(d) Water Management Plans.--
            ``(1) In general.--The Secretary shall establish, for the 
        San Xavier Reservation and the eastern Schuk Toak District, 
        water management plans that meet the requirements described in 
        paragraph (2).
            ``(2) Requirements.--Water management plans established 
        under paragraph (1)--
                    ``(A) <<NOTE: Contracts.>> shall be developed under 
                contracts executed under section 311 between the 
                Secretary and the San Xavier District for the San Xavier 
                Reservation, and between the Secretary and the Nation 
                for the eastern Schuk Toak District, as applicable, that 
                permit expenditures, exclusive of administrative 
                expenses of the Secretary, of not more than--
                          ``(i) with respect to a contract between the 
                      Secretary and the San Xavier District, $891,200; 
                      and
                          ``(ii) with respect to a contract between the 
                      Secretary and the Nation, $237,200;
                    ``(B) shall, at a minimum--
                          ``(i) provide for the measurement of all 
                      groundwater withdrawals, including withdrawals 
                      from each well that is not an exempt well;
                          ``(ii) provide for--
                                    ``(I) <<NOTE: Records.>> reasonable 
                                recordkeeping of water use, including 
                                the quantities of water stored 
                                underground and recovered each calendar 
                                year; and
                                    ``(II) a system for the reporting of 
                                withdrawals from each well that is not 
                                an exempt well;
                          ``(iii) provide for the direct storage and 
                      deferred storage of water, including the 
                      implementation of underground storage and recovery 
                      projects, in accordance with this section;
                          ``(iv) provide for the annual exchange of 
                      information collected under clauses (i) through 
                      (iii)--
                                    ``(I) between the Nation and the 
                                Arizona Department of Water Resources; 
                                and
                                    ``(II) between the Nation and the 
                                city of Tucson, Arizona;
                          ``(v) provide for--
                                    ``(I) the efficient use of water; 
                                and

[[Page 118 STAT. 3553]]

                                    ``(II) the prevention of waste;
                          ``(vi) except on approval of the district 
                      council for a district in which a direct storage 
                      project is established under subsection (e), 
                      provide that no direct storage credits earned as a 
                      result of the project shall be recovered at any 
                      location at which the recovery would adversely 
                      affect surface or groundwater supplies, or lower 
                      the water table at any location, within the 
                      district; and
                          ``(vii) provide for amendments to the water 
                      plan in accordance with this title;
                    ``(C) shall authorize the establishment and 
                maintenance of 1 or more underground storage and 
                recovery projects in accordance with subsection (e), as 
                applicable, within--
                          ``(i) the San Xavier Reservation; or
                          ``(ii) the eastern Schuk Toak District; and
                    ``(D) shall be implemented and maintained by the 
                Nation, with no obligation by the Secretary.

    ``(e) Underground Storage and Recovery Projects.--The Nation is 
authorized to establish direct storage and recovery projects in 
accordance with the Tohono O'odham settlement agreement. The Secretary 
shall have no responsibility to fund or otherwise administer such 
projects.
    ``(f) Groundwater.--
            ``(1) San xavier reservation.--
                    ``(A) In general.--In accordance with section 
                307(a)(1)(A), 10,000 acre-feet of groundwater may be 
                pumped annually within the San Xavier Reservation.
                    ``(B) Deferred pumping.--
                          ``(i) In general.--Subject to clause (ii), all 
                      or any portion of the 10,000 acre-feet of water 
                      not pumped under subparagraph (A) in a year--
                                    ``(I) may be withdrawn in a 
                                subsequent year; and
                                    ``(II) if any of that water is 
                                withdrawn, shall be accounted for in 
                                accordance with the Tohono O'odham 
                                settlement agreement as a debit to the 
                                deferred pumping storage account.
                          ``(ii) Limitation.--The quantity of water 
                      authorized to be recovered as deferred pumping 
                      storage credits under this subparagraph shall not 
                      exceed--
                                    ``(I) 50,000 acre-feet for any 10-
                                year period; or
                                    ``(II) 10,000 acre-feet in any year.
                    ``(C) Recovery of additional water.--In addition to 
                the quantity of groundwater authorized to be pumped 
                under subparagraphs (A) and (B), the Nation may annually 
                recover within the San Xavier Reservation all or a 
                portion of the credits for water stored under a project 
                described in subsection (e).
            ``(2) Eastern schuk toak district.--
                    ``(A) In general.--In accordance with section 
                307(a)(1)(B), 3,200 acre-feet of groundwater may be 
                pumped annually within the eastern Schuk Toak District.
                    ``(B) Deferred pumping.--

[[Page 118 STAT. 3554]]

                          ``(i) In general.--Subject to clause (ii), all 
                      or any portion of the 3,200 acre-feet of water not 
                      pumped under subparagraph (A) in a year--
                                    ``(I) may be withdrawn in a 
                                subsequent year; and
                                    ``(II) if any of that water is 
                                withdrawn, shall be accounted for in 
                                accordance with the Tohono O'odham 
                                settlement agreement as a debit to the 
                                deferred pumping storage account.
                          ``(ii) Limitation.--The quantity of water 
                      authorized to be recovered as deferred pumping 
                      storage credits under this subparagraph shall not 
                      exceed--
                                    ``(I) 16,000 acre-feet for any 10-
                                year period; or
                                    ``(II) 3,200 acre-feet in any year.
                    ``(C) Recovery of additional water.--In addition to 
                the quantity of groundwater authorized to be pumped 
                under subparagraphs (A) and (B), the Nation may annually 
                recover within the eastern Schuk Toak District all or a 
                portion of the credits for water stored under a project 
                described in subsection (e).
            ``(3) Inability to recover groundwater.--
                    ``(A) In general.--The authorizations to pump 
                groundwater in paragraphs (1) and (2) neither warrant 
                nor guarantee that the groundwater--
                          ``(i) physically exists; or
                          ``(ii) is recoverable.
                    ``(B) Claims.--With respect to groundwater described 
                in subparagraph (A)--
                          ``(i) subject to paragraph 8.8 of the Tohono 
                      O'odham settlement agreement, the inability of any 
                      person to pump or recover that groundwater shall 
                      not be the basis for any claim by the United 
                      States or the Nation against any person or entity 
                      withdrawing or using the water from any common 
                      supply; and
                          ``(ii) the United States and the Nation shall 
                      be barred from asserting any and all claims for 
                      reserved water rights with respect to that 
                      groundwater.

    ``(g) Exempt Wells.--Any groundwater pumped from an exempt well 
located within the San Xavier Reservation or the eastern Schuk Toak 
District shall be exempt from all pumping limitations under this title.
    ``(h) Inability of Secretary To Deliver Water.--The Nation is 
authorized to pump additional groundwater in any year in which the 
Secretary is unable to deliver water required to carry out sections 
304(a) and 306(a) in accordance with the Tohono O'odham settlement 
agreement.
    ``(i) Payment of Compensation.--Nothing in this section affects any 
obligation of the Secretary to pay compensation in accordance with 
section 305(d).

``SEC. 309. USES OF WATER.

    ``(a) Permissible Uses.--Subject to other provisions of this section 
and other applicable law, the Nation may devote all water supplies 
granted or confirmed under this title, whether delivered by the 
Secretary or pumped by the Nation, to any use (including any 
agricultural, municipal, domestic, industrial, commercial,

[[Page 118 STAT. 3555]]

mining, underground storage, instream flow, riparian habitat 
maintenance, or recreational use).
    ``(b) Use Area.--
            ``(1) Use within nation's reservation.--Subject to 
        subsection (d), the Nation may use at any location within the 
        Nation's Reservation--
                    ``(A) the water supplies acquired under sections 
                304(a) and 306(a);
                    ``(B) groundwater supplies; and
                    ``(C) storage credits acquired as a result of 
                projects authorized under section 308(e), or deferred 
                storage credits described in section 308(f), except to 
                the extent that use of those storage credits causes the 
                withdrawal of groundwater in violation of applicable 
                Federal law.
            ``(2) Use outside the nation's reservation.--
                    ``(A) In general.--Water resources granted or 
                confirmed under this title may be sold, leased, 
                transferred, or used by the Nation outside of the 
                Nation's Reservation only in accordance with this title.
                    ``(B) Use within certain area.--Subject to 
                subsection (c), the Nation may use the Central Arizona 
                Project water supplies acquired under sections 304(a) 
                and 306(a) within the Central Arizona Project service 
                area.
                    ``(C) State law.--With the exception of Central 
                Arizona Project water and groundwater withdrawals under 
                the Asarco agreement, the Nation may sell, lease, 
                transfer, or use any water supplies and storage credits 
                acquired as a result of a project authorized under 
                section 308(e) at any location outside of the Nation's 
                Reservation, but within the State, only in accordance 
                with State law.
                    ``(D) Limitation.--Deferred pumping storage credits 
                provided for in section 308(f) shall not be sold, 
                leased, transferred, or used outside the Nation's 
                Reservation.
                    ``(E) Prohibition on use outside the state.--No 
                water acquired under section 304(a) or 306(a) shall be 
                leased, exchanged, forborne, or otherwise transferred by 
                the Nation for any direct or indirect use outside the 
                State.

    ``(c) Exchanges and Leases; Conditions on Exchanges and Leases.--
            ``(1) In general.--With respect to users outside the 
        Nation's Reservation, the Nation may, for a term of not to 
        exceed 100 years, assign, exchange, lease, provide an option to 
        lease, or otherwise temporarily dispose of to the users, Central 
        Arizona Project water to which the Nation is entitled under 
        sections 304(a) and 306(a) or storage credits acquired under 
        section 308(e), if the assignment, exchange, lease, option, or 
        temporary disposal is carried out in accordance with--
                    ``(A) this subsection; and
                    ``(B) subsection (b)(2).
            ``(2) Limitation on alienation.--The Nation shall not 
        permanently alienate any water right under paragraph (1).
            ``(3) Authorized uses.--The water described in paragraph (1) 
        shall be delivered within the Central Arizona Project service 
        area for any use authorized under applicable law.
            ``(4) Contract.--An assignment, exchange, lease, option, or 
        temporary disposal described in paragraph (1) shall be executed 
        only in accordance with a contract that--

[[Page 118 STAT. 3556]]

                    ``(A) is accepted by the Nation;
                    ``(B) is ratified under a resolution of the 
                Legislative Council of the Nation;
                    ``(C) is approved by the United States as Trustee; 
                and
                    ``(D) with respect to any contract to which the 
                United States or the Secretary is a party, provides that 
                an action may be maintained by the contracting party 
                against the United States and the Secretary for a breach 
                of the contract by the United States or Secretary, as 
                appropriate.
            ``(5) <<NOTE: Applicability.>> Terms exceeding 25 years.--
        The terms and conditions established in paragraph 11 of the 
        Tohono O'odham settlement agreement shall apply to any contract 
        under paragraph (4) that has a term of greater than 25 years.

    ``(d) Limitations on Use, Exchanges, and Leases.--The rights of the 
Nation to use water supplies under subsection (a), and to assign, 
exchange, lease, provide options to lease, or temporarily dispose of the 
water supplies under subsection (c), shall be exercised on conditions 
that ensure the availability of water supplies to satisfy the first 
right of beneficial use under section 307(a)(1)(G)(i).
    ``(e) Water Service Capital Charges.--In any transaction entered 
into by the Nation and another person under subsection (c) with respect 
to Central Arizona Project water of the Nation, the person shall not be 
obligated to pay to the United States or the Central Arizona Water 
Conservation District any water service capital charge.
    ``(f) Water Rights Unaffected by Use or Nonuse.--The failure of the 
Nation to make use of water provided under this title, or the use of, or 
failure to make use of, that water by any other person that enters into 
a contract with the Nation under subsection (c) for the assignment, 
exchange, lease, option for lease, or temporary disposal of water, shall 
not diminish, reduce, or impair--
            ``(1) any water right of the Nation, as established under 
        this title or any other applicable law; or
            ``(2) any water use right recognized under this title, 
        including--
                    ``(A) the first right of beneficial use referred to 
                in section 307(a)(1)(G)(i); or
                    ``(B) the allottee use rights referred to in section 
                308(a).

    ``(g) Amendment to Agreement of December 11, 1980.--The Secretary 
shall amend the agreement of December 11, 1980, to provide that--
            ``(1) the contract shall be--
                    ``(A) for permanent service (within the meaning of 
                section 5 of the Boulder Canyon Project Act of 1928 (43 
                U.S.C. 617d)); and
                    ``(B) without limit as to term;
            ``(2) the Nation may, with the approval of the Secretary--
                    ``(A) in accordance with subsection (c), assign, 
                exchange, lease, enter into an option to lease, or 
                otherwise temporarily dispose of water to which the 
                Nation is entitled under sections 304(a) and 306(a); and
                    ``(B) renegotiate any lease at any time during the 
                term of the lease if the term of the renegotiated lease 
                does not exceed 100 years;
            ``(3)(A) the Nation shall be entitled to all consideration 
        due to the Nation under any leases and any options to lease

[[Page 118 STAT. 3557]]

        or exchanges or options to exchange the Nation's Central Arizona 
        Project water entered into by the Nation; and
            ``(B) the United States shall have no trust obligation or 
        other obligation to monitor, administer, or account for any 
        consideration received by the Nation under those leases or 
        options to lease and exchanges or options to exchange;
            ``(4)(A) all of the Nation's Central Arizona Project water 
        shall be delivered through the Central Arizona Project aqueduct; 
        and
            ``(B) if the delivery capacity of the Central Arizona 
        Project aqueduct is significantly reduced or is anticipated to 
        be significantly reduced for an extended period of time, the 
        Nation shall have the same Central Arizona Project delivery 
        rights as other Central Arizona Project contractors and Central 
        Arizona Project subcontractors, if the Central Arizona Project 
        contractors or Central Arizona Project subcontractors are 
        allowed to take delivery of water other than through the Central 
        Arizona Project aqueduct;
            ``(5) the Nation may use the Nation's Central Arizona 
        Project water on or off of the Nation's Reservation for the 
        purposes of the Nation consistent with this title;
            ``(6) as authorized by subparagraph (A) of section 403(f)(2) 
        of the Colorado River Basin Project Act (43 U.S.C. 1543(f)(2)) 
        (as amended by section 107(a)) and to the extent that funds are 
        available in the Lower Colorado River Basin Development Fund 
        established by section 403 of that Act (43 U.S.C. 1543), the 
        United States shall pay to the Central Arizona Project operating 
        agency the fixed operation, maintenance, and replacement charges 
        associated with the delivery of the Nation's Central Arizona 
        Project water, except for the Nation's Central Arizona Project 
        water leased by others;
            ``(7) the allocated costs associated with the construction 
        of the delivery and distribution system--
                    ``(A) shall be nonreimbursable; and
                    ``(B) shall be excluded from any repayment 
                obligation of the Nation;
            ``(8) no water service capital charges shall be due or 
        payable for the Nation's Central Arizona Project water, 
        regardless of whether the Central Arizona Project water is 
        delivered for use by the Nation or is delivered pursuant to any 
        leases or options to lease or exchanges or options to exchange 
        the Nation's Central Arizona Project water entered into by the 
        Nation;
            ``(9) the agreement of December 11, 1980, conforms with 
        section 104(d) and section 306(a) of the Arizona Water 
        Settlements Act; and
            ``(10) the amendments required by this subsection shall not 
        apply to the 8,000 acre feet of Central Arizona Project water 
        contracted by the Nation in the agreement of December 11, 1980, 
        for the Sif Oidak District.

    ``(h) Ratification of Agreements.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, each agreement described in paragraph (2), to the extent 
        that the agreement is not in conflict with this Act--
                    ``(A) is authorized, ratified, and confirmed; and
                    ``(B) shall be executed by the Secretary.

[[Page 118 STAT. 3558]]

            ``(2) Agreements.--The agreements described in this 
        paragraph are--
                    ``(A) the Tohono O'odham settlement agreement, to 
                the extent that--
                          ``(i) the Tohono O'odham settlement agreement 
                      is consistent with this title; and
                          ``(ii) parties to the Tohono O'odham 
                      settlement agreement other than the Secretary have 
                      executed that agreement;
                    ``(B) the Tucson agreement (attached to the Tohono 
                O'odham settlement agreement as exhibit 12.1); and
                    ``(C)(i) the Asarco agreement (attached to the 
                Tohono O'odham settlement agreement as exhibit 13.1 to 
                the Tohono O'odham settlement agreement);
                    ``(ii) lease No. H54-0916-0972, dated April 26, 
                1972, and approved by the United States on November 14, 
                1972; and
                    ``(iii) any new well site lease as provided for in 
                the Asarco agreement; and
                    ``(D) the FICO agreement (attached to the Tohono 
                O'odham settlement agreement as Exhibit 14.1).
            ``(3) Relation to other law.--
                    ``(A) Environmental compliance.--In implementing an 
                agreement described in paragraph (2), the Secretary 
                shall promptly comply with all aspects of the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.), the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.), and all other applicable environmental 
                Acts and regulations.
                    ``(B) Execution of agreement.--Execution of an 
                agreement described in paragraph (2) by the Secretary 
                under this section shall not constitute a major Federal 
                action under the National Environmental Policy Act (42 
                U.S.C. 4321 et seq.). The Secretary is directed to carry 
                out all necessary environmental compliance required by 
                Federal law in implementing an agreement described in 
                paragraph (2).
                    ``(C) Lead agency.--The Bureau of Reclamation shall 
                be the lead agency with respect to environmental 
                compliance under the agreements described in paragraph 
                (2).

    ``(i) Disbursements From Tucson Interim Water Lease.--The Secretary 
shall disburse to the Nation, without condition, all proceeds from the 
Tucson interim water lease.
    ``(j) Use of Gross Proceeds.--
            ``(1) Definition of gross proceeds.--In this subsection, the 
        term `gross proceeds' means all proceeds, without reduction, 
        received by the Nation from--
                    ``(A) the Tucson interim water lease;
                    ``(B) the Asarco agreement; and
                    ``(C) any agreement similar to the Asarco agreement 
                to store Central Arizona Project water of the Nation, 
                instead of pumping groundwater, for the purpose of 
                protecting water of the Nation; provided, however, that 
                gross proceeds shall not include proceeds from the 
                transfer of Central Arizona Project water in excess of 
                20,000 acre feet annually pursuant to any agreement 
                under this

[[Page 118 STAT. 3559]]

                subparagraph or under the Asarco agreement referenced in 
                subparagraph (B).
            ``(2) Entitlement.--The Nation shall be entitled to receive 
        all gross proceeds.

    ``(k) Statutory Construction.--Nothing in this title establishes 
whether reserved water may be put to use, or sold for use, off any 
reservation to which reserved water rights attach.

``SEC. 310. COOPERATIVE FUND.

    ``(a) Reauthorization.--
            ``(1) In general.--Congress reauthorizes, for use in 
        carrying out this title, the cooperative fund established in the 
        Treasury of the United States by section 313 of the 1982 Act.
            ``(2) Amounts in cooperative fund.--The cooperative fund 
        shall consist of--
                    ``(A)(i) $5,250,000, as appropriated to the 
                cooperative fund under section 313(b)(3)(A) of the 1982 
                Act; and
                    ``(ii) such amount, not to exceed $32,000,000, as 
                the Secretary determines, after providing notice to 
                Congress, is necessary to carry out this title;
                    ``(B) any additional Federal funds deposited to the 
                cooperative fund under Federal law;
                    ``(C) $5,250,000, as deposited in the cooperative 
                fund under section 313(b)(1)(B) of the 1982 Act, of 
                which--
                          ``(i) $2,750,000 was contributed by the State;
                          ``(ii) $1,500,000 was contributed by the city 
                      of Tucson; and
                          ``(iii) $1,000,000 was contributed by--
                                    ``(I) the Anamax Mining Company;
                                    ``(II) the Cyprus-Pima Mining 
                                Company;
                                    ``(III) the American Smelting and 
                                Refining Company;
                                    ``(IV) the Duval Corporation; and
                                    ``(V) the Farmers Investment 
                                Company;
                    ``(D) all interest accrued on all amounts in the 
                cooperative fund beginning on October 12, 1982, less any 
                interest expended under subsection (b)(2); and
                    ``(E) all revenues received from--
                          ``(i) the sale or lease of effluent received 
                      by the Secretary under the contract between the 
                      United States and the city of Tucson to provide 
                      for delivery of reclaimed water to the Secretary, 
                      dated October 11, 1983; and
                          ``(ii) the sale or lease of storage credits 
                      derived from the storage of that effluent.

    ``(b) Expenditures From Fund.--
            ``(1) In general.--Subject to paragraph (2), upon request by 
        the Secretary, the Secretary of the Treasury shall transfer from 
        the cooperative fund to the Secretary such amounts as the 
        Secretary determines are necessary to carry out obligations of 
        the Secretary under this title, including to pay--
                    ``(A) the variable costs relating to the delivery of 
                water under sections 304 through 306;
                    ``(B) fixed operation maintenance and replacement 
                costs relating to the delivery of water under sections 
                304 through 306, to the extent that funds are not 
                available from the

[[Page 118 STAT. 3560]]

                Lower Colorado River Basin Development Fund to pay those 
                costs;
                    ``(C) the costs of acquisition and delivery of water 
                from alternative sources under section 305; and
                    ``(D) any compensation provided by the Secretary 
                under section 305(d).
            ``(2) Expenditure of interest.--Except as provided in 
        paragraph (3), the Secretary may expend only interest income 
        accruing to the cooperative fund, and that interest income may 
        be expended by the Secretary, without further appropriation.
            ``(3) Expenditure of revenues.--Revenues described in 
        subsection (a)(2)(E) shall be available for expenditure under 
        paragraph (1).

    ``(c) Investment of Amounts.--
            ``(1) In general.--The Secretary of the Treasury shall 
        invest such portion of the cooperative fund as is not, in the 
        judgment of the Secretary of the Treasury, required to meet 
        current withdrawals determined by the Secretary. Investments may 
        be made only in interest-bearing obligations of the United 
        States.
            ``(2) Credits to cooperative fund.--The interest on, and the 
        proceeds from the sale or redemption of, any obligations held in 
        the cooperative fund shall be credited to and form a part of the 
        cooperative fund.

    ``(d) Transfers of Amounts.--
            ``(1) In general.--The amounts required to be transferred to 
        the cooperative fund under this section shall be transferred at 
        least monthly from the general fund of the Treasury to the 
        cooperative 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.

    ``(e) Damages.--Damages arising under this title or any contract for 
the delivery of water recognized by this title shall not exceed, in any 
given year, the amounts available for expenditure in that year from the 
cooperative fund.

``SEC. 311. CONTRACTING AUTHORITY; WATER QUALITY; STUDIES; ARID LAND 
            ASSISTANCE.

    ``(a) Functions of Secretary.--Except as provided in subsection (f), 
the functions of the Secretary (or the Commissioner of Reclamation, 
acting on behalf of the Secretary) under this title shall be subject to 
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450 et seq.) to the same extent as if those functions were carried out 
by the Assistant Secretary for Indian Affairs.
    ``(b) San Xavier District as Contractor.--
            ``(1) In general.--Subject to the consent of the Nation and 
        other requirements under section 307(a)(1)(E), the San Xavier 
        District shall be considered to be an eligible contractor for 
        purposes of this title.
            ``(2) Technical assistance.--The Secretary shall provide to 
        the San Xavier District technical assistance in carrying

[[Page 118 STAT. 3561]]

        out the contracting requirements under the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450 et 
        seq.).

    ``(c) <<NOTE: Deadlines.>> Groundwater Monitoring Programs.--
            ``(1) San xavier indian reservation program.--
                    ``(A) In general.--Not later than 180 days after the 
                enforceability date, the Secretary shall develop and 
                initiate a comprehensive groundwater monitoring program 
                (including the drilling of wells and other appropriate 
                actions) to test, assess, and provide for the long-term 
                monitoring of the quality of groundwater withdrawn from 
                exempt wells and other wells within the San Xavier 
                Reservation.
                    ``(B) Limitation on expenditures.--In carrying out 
                this paragraph, the Secretary shall expend not more than 
                $215,000.
            ``(2) Eastern schuk toak district program.--
                    ``(A) In general.--Not later than 180 days after the 
                enforceability date, the Secretary shall develop and 
                initiate a comprehensive groundwater monitoring program 
                (including the drilling of wells and other appropriate 
                actions) to test, assess, and provide for the long-term 
                monitoring of the quality of groundwater withdrawn from 
                exempt wells and other wells within the eastern Schuk 
                Toak District.
                    ``(B) Limitation on expenditures.--In carrying out 
                this paragraph, the Secretary shall expend not more than 
                $175,000.
            ``(3) Duties of secretary.--
                    ``(A) Consultation.--In carrying out paragraphs (1) 
                and (2), the Secretary shall consult with 
                representatives of--
                          ``(i) the Nation;
                          ``(ii) the San Xavier District and Schuk Toak 
                      District, respectively; and
                          ``(iii) appropriate State and local entities.
                    ``(B) Limitation on obligations of secretary.--With 
                respect to the groundwater monitoring programs described 
                in paragraphs (1) and (2), the Secretary shall have no 
                continuing obligation relating to those programs beyond 
                the obligations described in those paragraphs.

    ``(d) Water Resources Study.--To assist the Nation in developing 
sources of water, the Secretary shall conduct a study to determine the 
availability and suitability of water resources that are located--
            ``(1) within the Nation's Reservation; but
            ``(2) outside the Tucson management area.

    ``(e) Arid Land Renewable Resources.--If a Federal entity is 
established to provide financial assistance to carry out arid land 
renewable resources projects and to encourage and ensure investment in 
the development of domestic sources of arid land renewable resources, 
the entity shall--
            ``(1) give first priority to the needs of the Nation in 
        providing that assistance; and
            ``(2) make available to the Nation, San Xavier District, 
        Schuk Toak District, and San Xavier Cooperative Association 
        price guarantees, loans, loan guarantees, purchase agreements,

[[Page 118 STAT. 3562]]

        and joint venture projects at a level that the entity determines 
        will--
                    ``(A) facilitate the cultivation of such minimum 
                number of acres as is determined by the entity to be 
                necessary to ensure economically successful cultivation 
                of arid land crops; and
                    ``(B) contribute significantly to the economy of the 
                Nation.

    ``(f) Asarco Land Exchange Study.--
            ``(1) <<NOTE: Deadline.>> In general.--Not later than 2 
        years after the enforceability date, the Secretary, in 
        consultation with the Nation, the San Xavier District, the San 
        Xavier Allottees' Association, and Asarco, shall conduct and 
        submit to Congress a study on the feasibility of a land exchange 
        or land exchanges with Asarco to provide land for future use 
        by--
                    ``(A) beneficial landowners of the Mission Complex 
                Mining Leases of September 18, 1959; and
                    ``(B) beneficial landowners of the Mission Complex 
                Business Leases of May 12, 1959.
            ``(2) Components.--The study under paragraph (1) shall 
        include--
                    ``(A) an analysis of the manner in which land 
                exchanges could be accomplished to maintain a contiguous 
                land base for the San Xavier Reservation; and
                    ``(B) a description of the legal status exchanged 
                land should have to maintain the political integrity of 
                the San Xavier Reservation.
            ``(3) Limitation on expenditures.--In carrying out this 
        subsection, the Secretary shall expend not more than $250,000.

``SEC. 312. WAIVER AND RELEASE OF CLAIMS.

    ``(a) Waiver of Claims by the Nation.--Except as provided in 
subsection (d), the Tohono O'odham settlement agreement shall provide 
that the Nation waives and releases--
            ``(1) any and all past, present, and future claims for water 
        rights (including claims based on aboriginal occupancy) arising 
        from time immemorial and, thereafter, forever, and claims for 
        injuries to water rights arising from time immemorial through 
        the enforceability date, for land within the Tucson management 
        area, against--
                    ``(A) the State (or any agency or political 
                subdivision of the State);
                    ``(B) any municipal corporation; and
                    ``(C) any other person or entity;
            ``(2) any and all claims for water rights arising from time 
        immemorial and, thereafter, forever, claims for injuries to 
        water rights arising from time immemorial through the 
        enforceability date, and claims for failure to protect, acquire, 
        or develop water rights for land within the San Xavier 
        Reservation and the eastern Schuk Toak District from time 
        immemorial through the enforceability date, against the United 
        States (including any agency, officer, and employee of the 
        United States);
            ``(3) any and all claims for injury to water rights arising 
        after the enforceability date for land within the San Xavier 
        Reservation and the eastern Schuk Toak District resulting from 
        the off-Reservation diversion or use of water in a manner

[[Page 118 STAT. 3563]]

        not in violation of the Tohono O'odham settlement agreement or 
        State law against--
                    ``(A) the United States;
                    ``(B) the State (or any agency or political 
                subdivision of the State);
                    ``(C) any municipal corporation; and
                    ``(D) any other person or entity; and
            ``(4) any and all past, present, and future claims arising 
        out of or relating to the negotiation or execution of the Tohono 
        O'odham settlement agreement or the negotiation or enactment of 
        this title, against--
                    ``(A) the United States;
                    ``(B) the State (or any agency or political 
                subdivision of the State);
                    ``(C) any municipal corporation; and
                    ``(D) any other person or entity.

    ``(b) Waiver of Claims by the Allottee Classes.--The Tohono O'odham 
settlement agreement shall provide that each allottee class waives and 
releases--
            ``(1) any and all past, present, and future claims for water 
        rights (including claims based on aboriginal occupancy) arising 
        from time immemorial and, thereafter, forever, claims for 
        injuries to water rights arising from time immemorial through 
        the enforceability date for land within the San Xavier 
        Reservation, against--
                    ``(A) the State (or any agency or political 
                subdivision of the State);
                    ``(B) any municipal corporation; and
                    ``(C) any other person or entity (other than the 
                Nation);
            ``(2) any and all claims for water rights arising from time 
        immemorial and, thereafter, forever, claims for injuries to 
        water rights arising from time immemorial through the 
        enforceability date, and claims for failure to protect, acquire, 
        or develop water rights for land within the San Xavier 
        Reservation from time immemorial through the enforceability 
        date, against the United States (including any agency, officer, 
        and employee of the United States);
            ``(3) any and all claims for injury to water rights arising 
        after the enforceability date for land within the San Xavier 
        Reservation resulting from the off-Reservation diversion or use 
        of water in a manner not in violation of the Tohono O'odham 
        settlement agreement or State law against--
                    ``(A) the United States;
                    ``(B) the State (or any agency or political 
                subdivision of the State);
                    ``(C) any municipal corporation; and
                    ``(D) any other person or entity;
            ``(4) any and all past, present, and future claims arising 
        out of or relating to the negotiation or execution of the Tohono 
        O'odham settlement agreement or the negotiation or enactment of 
        this title, against--
                    ``(A) the United States;
                    ``(B) the State (or any agency or political 
                subdivision of the State);
                    ``(C) any municipal corporation; and
                    ``(D) any other person or entity; and

[[Page 118 STAT. 3564]]

            ``(5) any and all past, present, and future claims for water 
        rights arising from time immemorial and, thereafter, forever, 
        and claims for injuries to water rights arising from time 
        immemorial through the enforceability date, against the Nation 
        (except that under section 307(a)(1)(G) and subsections (a) and 
        (b) of section 308, the allottees and fee owners of allotted 
        land shall retain rights to share in the water resources granted 
        or confirmed under this title and the Tohono O'odham settlement 
        agreement with respect to uses within the San Xavier 
        Reservation).

    ``(c) Waiver of Claims by the United States.--Except as provided in 
subsection (d), the Tohono O'odham settlement agreement shall provide 
that the United States as Trustee waives and releases--
            ``(1) any and all past, present, and future claims for water 
        rights (including claims based on aboriginal occupancy) arising 
        from time immemorial and, thereafter, forever, and claims for 
        injuries to water rights arising from time immemorial through 
        the enforceability date, for land within the Tucson management 
        area against--
                    ``(A) the Nation;
                    ``(B) the State (or any agency or political 
                subdivision of the State);
                    ``(C) any municipal corporation; and
                    ``(D) any other person or entity;
            ``(2) any and all claims for injury to water rights arising 
        after the enforceability date for land within the San Xavier 
        Reservation and the eastern Schuk Toak District resulting from 
        the off-Reservation diversion or use of water in a manner not in 
        violation of the Tohono O'odham settlement agreement or State 
        law against--
                    ``(A) the Nation;
                    ``(B) the State (or any agency or political 
                subdivision of the State);
                    ``(C) any municipal corporation; and
                    ``(D) any other person or entity;
            ``(3) on and after the enforceability date, any and all 
        claims on behalf of the allottees for injuries to water rights 
        against the Nation (except that under section 307(a)(1)(G) and 
        subsections (a) and (b) of section 308, the allottees shall 
        retain rights to share in the water resources granted or 
        confirmed under this title and the Tohono O'odham settlement 
        agreement with respect to uses within the San Xavier 
        Reservation); and
            ``(4) claims against Asarco on behalf of the allottee class 
        for the fourth cause of action in Alvarez v. City of Tucson 
        (Civ. No. 93-039 TUC FRZ (D. Ariz., filed April 21, 1993)), in 
        accordance with the terms and conditions of the Asarco 
        agreement.

    ``(d) Claims Relating to Groundwater Protection Program.--The Nation 
and the United States as Trustee--
            ``(1) shall have the right to assert any claims granted by a 
        State law implementing the groundwater protection program 
        described in paragraph 8.8 of the Tohono O'odham settlement 
        agreement; and
            ``(2) if, after the enforceability date, the State law is 
        amended so as to have a material adverse effect on the Nation, 
        shall have a right to relief in the State court having 
        jurisdiction

[[Page 118 STAT. 3565]]

        over Gila River adjudication proceedings and decrees, against an 
        owner of any nonexempt well drilled after the effective date of 
        the amendment (if the well actually and substantially interferes 
        with groundwater pumping occurring on the San Xavier 
        Reservation), from the incremental effect of the groundwater 
        pumping that exceeds that which would have been allowable had 
        the State law not been amended.

    ``(e) Supplemental Waivers of Claims.--Any party to the Tohono 
O'odham settlement agreement may waive and release, prohibit the 
assertion of, or agree not to assert, any claims (including claims for 
subsidence damage or injury to water quality) in addition to claims for 
water rights and injuries to water rights on such terms and conditions 
as may be agreed to by the parties.
    ``(f) Rights of Allottees; Prohibition of Claims.--
            ``(1) In general.--As of the enforceability date--
                    ``(A) the water rights and other benefits granted or 
                confirmed by this title and the Tohono O'odham 
                settlement agreement shall be in full satisfaction of--
                          ``(i) all claims for water rights and claims 
                      for injuries to water rights of the Nation; and
                          ``(ii) all claims for water rights and 
                      injuries to water rights of the allottees;
                    ``(B) any entitlement to water within the Tucson 
                management area of the Nation, or of any allottee, shall 
                be satisfied out of the water resources granted or 
                confirmed under this title and the Tohono O'odham 
                settlement agreement; and
                    ``(C) any rights of the allottees to groundwater, 
                surface water, or effluent shall be limited to the water 
                rights granted or confirmed under this title and the 
                Tohono O'odham settlement agreement.
            ``(2) Limitation of certain claims by allottees.--No 
        allottee within the San Xavier Reservation may--
                    ``(A) assert any past, present, or future claim for 
                water rights arising from time immemorial and, 
                thereafter, forever, or any claim for injury to water 
                rights (including future injury to water rights) arising 
                from time immemorial and thereafter, forever, against--
                          ``(i) the United States;
                          ``(ii) the State (or any agency or political 
                      subdivision of the State);
                          ``(iii) any municipal corporation; or
                          ``(iv) any other person or entity; or
                    ``(B) continue to assert a claim described in 
                subparagraph (A), if the claim was first asserted before 
                the enforceability date.
            ``(3) Claims by fee owners of allotted land.--
                    ``(A) In general.--No fee owner of allotted land 
                within the San Xavier Reservation may assert any claim 
                to the extent that--
                          ``(i) the claim has been waived and released 
                      in the Tohono O'odham settlement agreement; and
                          ``(ii) the fee owner of allotted land 
                      asserting the claim is a member of the applicable 
                      allottee class.
                    ``(B) Offset.--Any benefits awarded to a fee owner 
                of allotted land as a result of a successful claim shall

[[Page 118 STAT. 3566]]

                be offset by benefits received by that fee owner of 
                allotted land under this title.
            ``(4) Limitation of claims against the nation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no allottee may assert against the 
                Nation any claims for water rights arising from time 
                immemorial and, thereafter, forever, claims for injury 
                to water rights arising from time immemorial and 
                thereafter forever.
                    ``(B) Exception.--Under section 307(a)(1)(G) and 
                subsections (a) and (b) of section 308, the allottees 
                shall retain rights to share in the water resources 
                granted or confirmed under this title and the Tohono 
                O'odham settlement agreement.

    ``(g) Consent.--
            ``(1) Grant of consent.--Congress grants to the Nation and 
        the San Xavier Cooperative Association under section 305(d) 
        consent to maintain civil actions against the United States in 
        the courts of the United States under section 1346, 1491, or 
        1505 of title 28, United States Code, respectively, to recover 
        damages, if any, for the breach of any obligation of the 
        Secretary under those sections.
            ``(2) Remedy.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                exclusive remedy for a civil action maintained under 
                this subsection shall be monetary damages.
                    ``(B) Offset.--An award for damages for a claim 
                under this subsection shall be offset against the amount 
                of funds--
                          ``(i) made available by any Act of Congress; 
                      and
                          ``(ii) paid to the claimant by the Secretary 
                      in partial or complete satisfaction of the claim.
            ``(3) No claims established.--Except as provided in 
        paragraph (1), nothing in the subsection establishes any claim 
        against the United States.

    ``(h) Jurisdiction; Waiver of Immunity; Parties.--
            ``(1) Jurisdiction.--
                    ``(A) In general.--Except as provided in subsection 
                (i), the State court having jurisdiction over Gila River 
                adjudication proceedings and decrees, shall have 
                jurisdiction over--
                          ``(i) civil actions relating to the 
                      interpretation and enforcement of--
                                    ``(I) this title;
                                    ``(II) the Tohono O'odham settlement 
                                agreement; and
                                    ``(III) agreements referred to in 
                                section 309(h)(2); and
                          ``(ii) civil actions brought by or against the 
                      allottees or fee owners of allotted land for the 
                      interpretation of, or legal or equitable remedies 
                      with respect to, claims of the allottees or fee 
                      owners of allotted land that are not claims for 
                      water rights, injuries to water rights or other 
                      claims that are barred or waived and released 
                      under this title or the Tohono O'odham settlement 
                      agreement.

[[Page 118 STAT. 3567]]

                    ``(B) Limitation.--Except as provided in 
                subparagraph (A), no State court or court of the Nation 
                shall have jurisdiction over any civil action described 
                in subparagraph (A).
            ``(2) Waiver.--
                    ``(A) In general.--The United States and the Nation 
                waive sovereign immunity solely for claims for--
                          ``(i) declaratory judgment or injunctive 
                      relief in any civil action arising under this 
                      title; and
                          ``(ii) such claims and remedies as may be 
                      prescribed in any agreement authorized under this 
                      title.
                    ``(B) Limitation on standing.--If a governmental 
                entity not described in subparagraph (A) asserts 
                immunity in any civil action that arises under this 
                title (unless the entity waives immunity for declaratory 
                judgment or injunctive relief) or any agreement 
                authorized under this title (unless the entity waives 
                immunity for the claims and remedies prescribed in the 
                agreement)--
                          ``(i) the governmental entity shall not have 
                      standing to initiate or assert any claim, or seek 
                      any remedy against the United States or the 
                      Nation, in the civil action; and
                          ``(ii) the waivers of sovereign immunity under 
                      subparagraph (A) shall have no effect in the civil 
                      action.
                    ``(C) Monetary relief.--A waiver of immunity under 
                this paragraph shall not extend to any claim for 
                damages, costs, attorneys' fees, or other monetary 
                relief.
            ``(3) Nation as a party.--
                    ``(A) <<NOTE: Deadline. Notice.>> In general.--Not 
                later than 60 days before the date on which a civil 
                action under paragraph (1)(A)(ii) is filed by an 
                allottee or fee owner of allotted land, the allottee or 
                fee owner, as the case may be, shall provide to the 
                Nation a notice of intent to file the civil action, 
                accompanied by a request for consultation.
                    ``(B) Joinder.--If the Nation is not a party to a 
                civil action as originally commenced under paragraph 
                (1)(A)(ii), the Nation shall be joined as a party.

    ``(i) Regulation and Jurisdiction Over Dispute Resolution.--
            ``(1) Regulation.--The Nation shall have jurisdiction to 
        manage, control, permit, administer, and otherwise regulate the 
        water resources granted or confirmed under this title and the 
        Tohono O'odham settlement agreement--
                    ``(A) with respect to the use of those resources 
                by--
                          ``(i) the Nation;
                          ``(ii) individual members of the Nation;
                          ``(iii) districts of the Nation; and
                          ``(iv) allottees; and
                    ``(B) with respect to any entitlement to those 
                resources for which a fee owner of allotted land has 
                received a final determination under applicable law.
            ``(2) Jurisdiction.--Subject to a requirement of exhaustion 
        of any administrative or other remedies prescribed under the 
        laws of the Nation, jurisdiction over any disputes relating to 
        the matters described in paragraph (1) shall be vested in the 
        courts of the Nation.

[[Page 118 STAT. 3568]]

            ``(3) Applicable law.--The regulatory and remedial 
        procedures referred to in paragraphs (1) and (2) shall be 
        subject to all applicable law.

    ``(j) Federal Jurisdiction.--The Federal Courts shall have 
concurrent jurisdiction over actions described in subsection 312(h) to 
the extent otherwise provided in Federal law.

``SEC. 313. AFTER-ACQUIRED TRUST LAND.

    ``(a) In General.--Except as provided in subsection (b)--
            ``(1) the Nation may seek to have taken into trust by the 
        United States, for the benefit of the Nation, legal title to 
        additional land within the State and outside the exterior 
        boundaries of the Nation's Reservation only in accordance with 
        an Act of Congress specifically authorizing the transfer for the 
        benefit of the Nation;
            ``(2) lands taken into trust under paragraph (1) shall 
        include only such water rights and water use privileges as are 
        consistent with State water law and State water management 
        policy; and
            ``(3) after-acquired trust land shall not include Federal 
        reserved rights to surface water or groundwater.

    ``(b) Exception.--Subsection (a) shall not apply to land acquired by 
the Nation under the Gila Bend Indian Reservation Lands Replacement Act 
(100 Stat. 1798).

``SEC. 314. NONREIMBURSABLE COSTS.

    ``(a) Central Arizona Water Conservation District.--For the purpose 
of determining the allocation and repayment of costs of any stage of the 
Central Arizona Project, the costs associated with the delivery of 
Central Arizona Project water acquired under sections 304(a) and 306(a), 
whether that water is delivered for use by the Nation or in accordance 
with any assignment, exchange, lease, option to lease, or other 
agreement for the temporary disposition of water entered into by the 
Nation--
            ``(1) shall be nonreimbursable; and
            ``(2) shall be excluded from the repayment obligation of the 
        Central Arizona Water Conservation District.

    ``(b) Claims by United States.--The United States shall--
            ``(1) make no claim against the Nation or any allottee for 
        reimbursement or repayment of any cost associated with--
                    ``(A) the construction of facilities under the 
                Colorado River Basin Project Act (43 U.S.C. 1501 et 
                seq.);
                    ``(B) the delivery of Central Arizona Project water 
                for any use authorized under this title; or
                    ``(C) the implementation of this title;
            ``(2) make no claim against the Nation for reimbursement or 
        repayment of the costs associated with the construction of 
        facilities described in paragraph (1)(A) for the benefit of and 
        use on land that--
                    ``(A) is known as the `San Lucy Farm'; and
                    ``(B) was acquired by the Nation under the Gila Bend 
                Indian Reservation Lands Replacement Act (100 Stat. 
                1798); and
            ``(3) impose no assessment with respect to the costs 
        referred to in paragraphs (1) and (2) against--
                    ``(A) trust or allotted land within the Nation's 
                Reservation; or
                    ``(B) the land described in paragraph (2).

[[Page 118 STAT. 3569]]

``SEC. 315. TRUST FUND.

    ``(a) Reauthorization.--Congress reauthorizes the trust fund 
established by section 309 of the 1982 Act, containing an initial 
deposit of $15,000,000 made under that section, for use in carrying out 
this title.
    ``(b) Expenditure and Investment.--Subject to the limitations of 
subsection (d), the principal and all accrued interest and dividends in 
the trust fund established under section 309 of the 1982 Act may be--
            ``(1) expended by the Nation for any governmental purpose; 
        and
            ``(2) invested by the Nation in accordance with such 
        policies as the Nation may adopt.

    ``(c) Responsibility of Secretary.--The Secretary shall not--
            ``(1) be responsible for the review, approval, or audit of 
        the use and expenditure of any funds from the trust fund 
        reauthorized by subsection (a); or
            ``(2) be subject to liability for any claim or cause of 
        action arising from the use or expenditure by the Nation of 
        those funds.

    ``(d) Conditions of Trust.--
            ``(1) Reserve for the cost of subjugation.--The Nation shall 
        reserve in the trust fund reauthorized by subsection (a)--
                    ``(A) the principal amount of at least $3,000,000; 
                and
                    ``(B) interest on that amount that accrues during 
                the period beginning on the enforceability date and 
                ending on the earlier of--
                          ``(i) the date on which full payment of such 
                      costs has been made; or
                          ``(ii) the date that is 10 years after the 
                      enforceability date.
            ``(2) Payment.--The costs described in paragraph (1) shall 
        be paid in the amount, on the terms, and for the purposes 
        prescribed in section 307(a)(1)(F).
            ``(3) Limitation on restrictions.--On the occurrence of an 
        event described in clause (i) or (ii) of paragraph (1)(B)--
                    ``(A) the restrictions imposed on funds from the 
                trust fund described in paragraph (1) shall terminate; 
                and
                    ``(B) any of those funds remaining that were 
                reserved under paragraph (1) may be used by the Nation 
                under subsection (b)(1).

``SEC. 316. MISCELLANEOUS PROVISIONS.

    ``(a) In General.--Nothing in this title--
            ``(1) establishes the applicability or inapplicability to 
        groundwater of any doctrine of Federal reserved rights;
            ``(2) limits the ability of the Nation to enter into any 
        agreement with the Arizona Water Banking Authority (or a 
        successor agency) in accordance with State law;
            ``(3) prohibits the Nation, any individual member of the 
        Nation, an allottee, or a fee owner of allotted land in the San 
        Xavier Reservation from lawfully acquiring water rights for use 
        in the Tucson management area in addition to the water rights 
        granted or confirmed under this title and the Tohono O'odham 
        settlement agreement;
            ``(4) abrogates any rights or remedies existing under 
        section 1346 or 1491 of title 28, United States Code;

[[Page 118 STAT. 3570]]

            ``(5) affects the obligations of the parties under the 
        Agreement of December 11, 1980, with respect to the 8,000 acre 
        feet of Central Arizona Project water contracted by the Nation 
        for the Sif Oidak District;
            ``(6)(A) applies to any exempt well;
            ``(B) prohibits or limits the drilling of any exempt well 
        within--
                    ``(i) the San Xavier Reservation; or
                    ``(ii) the eastern Schuk Toak District; or
            ``(C) subjects water from any exempt well to any pumping 
        limitation under this title; or
            ``(7) diminishes or abrogates rights to use water under--
                    ``(A) contracts of the Nation in existence before 
                the enforceability date; or
                    ``(B) the well site agreement referred to in the 
                Asarco agreement and any well site agreement entered 
                into under the Asarco agreement.

    ``(b) No Effect on Future Allocations.--Water received under a lease 
or exchange of Central Arizona Project water under this title does not 
affect any future allocation or reallocation of Central Arizona Project 
water by the Secretary.
    ``(c) Limitation on Liability of United States.--
            ``(1) In general.--The United States shall have no trust or 
        other obligation--
                    ``(A) to monitor, administer, or account for, in any 
                manner, any of the funds paid to the Nation or the San 
                Xavier District under this Act; or
                    ``(B) to review or approve the expenditure of those 
                funds.
            ``(2) Indemnification.--The Nation shall indemnify the 
        United States, and hold the United States harmless, with respect 
        to any and all claims (including claims for takings or breach of 
        trust) arising out of the receipt or expenditure of funds 
        described in paragraph (1)(A).

``SEC. 317. AUTHORIZED COSTS.

    ``(a) In General.--There are authorized to be appropriated--
            ``(1) to construct features of irrigation systems described 
        in paragraphs (1) through (4) of section 304(c) that are not 
        authorized to be constructed under any other provision of law, 
        an amount equal to the sum of--
                    ``(A) $3,500,000; and
                    ``(B) such additional amount as the Secretary 
                determines to be necessary to adjust the amount under 
                subparagraph (A) to account for ordinary fluctuations in 
                the costs of construction of irrigation features for the 
                period beginning on October 12, 1982, and ending on the 
                date on which the construction of the features described 
                in this subparagraph is initiated, as indicated by 
                engineering cost indices applicable to the type of 
                construction involved;
            ``(2) $18,300,000 in lieu of construction to implement 
        section 304(c)(3)(B), including an adjustment representing 
        interest that would have been earned if this amount had been 
        deposited in the cooperative fund during the period beginning on 
        January 1, 2008, and ending on the date the amount is actually 
        paid to the San Xavier District;

[[Page 118 STAT. 3571]]

            ``(3) $891,200 to develop and initiate a water management 
        plan for the San Xavier Reservation under section 308(d);
            ``(4) $237,200 to develop and initiate a water management 
        plan for the eastern Schuk Toak District under section 308(d);
            ``(5) $4,000,000 to complete the water resources study under 
        section 311(d);
            ``(6) $215,000 to develop and initiate a groundwater 
        monitoring program for the San Xavier Reservation under section 
        311(c)(1);
            ``(7) $175,000 to develop and implement a groundwater 
        monitoring program for the eastern Schuk Toak District under 
        section 311(c)(2);
            ``(8) $250,000 to complete the Asarco land exchange study 
        under section 311(f); and
            ``(9) such additional sums as are necessary to carry out the 
        provisions of this title other than the provisions referred to 
        in paragraphs (1) through (8).

    ``(b) Treatment of Appropriated Amounts.--Amounts made available 
under subsection (a) shall be considered to be authorized costs for 
purposes of section 403(f)(2)(D)(iii) of the Colorado River Basin 
Project Act (43 U.S.C. 1543(f)(2)(D)(iii)) (as amended by section 107(a) 
of the Arizona Water Settlements Act).''.
SEC. 302. SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT EFFECTIVE DATE.

    (a) Definitions.--The definitions under section 301 of the Southern 
Arizona Water Rights Settlement Amendments Act of 2004 (as contained in 
the amendment made by section 301) shall apply to this title.
    (b) <<NOTE: Federal Register, publication.>> Effective Date.--This 
title and the amendments made by this title take effect as of the 
enforceability date, which is the date the Secretary publishes in the 
Federal Register a statement of findings that--
            (1)(A) to the extent that the Tohono O'odham settlement 
        agreement conflicts with this title or an amendment made by this 
        title, the Tohono O'odham settlement agreement has been revised 
        through an amendment to eliminate those conflicts; and
            (B) the Tohono O'odham settlement agreement, as so revised, 
        has been executed by the parties and the Secretary;
            (2) the Secretary and other parties to the agreements 
        described in section 309(h)(2) of the Southern Arizona Water 
        Rights Settlement Amendments Act of 2004 (as contained in the 
        amendment made by section 301) have executed those agreements;
            (3) the Secretary has approved the interim allottee water 
        rights code described in section 308(b)(3)(A) of the Southern 
        Arizona Water Rights Settlement Amendments Act of 2004 (as 
        contained in the amendment made by section 301);
            (4) final dismissal with prejudice has been entered in each 
        of the Alvarez case and the Tucson case on the sole condition 
        that the Secretary publishes the findings specified in this 
        section;
            (5) the judgment and decree attached to the Tohono O'odham 
        settlement agreement as exhibit 17.1 has been approved by the 
        State court having jurisdiction over the Gila

[[Page 118 STAT. 3572]]

        River adjudication proceedings, and that judgment and decree 
        have become final and nonappealable;
            (6) implementation costs have been identified and retained 
        in the Lower Colorado River Basin Development Fund, 
        specifically--
                    (A) $18,300,000 to implement section 304(c)(3);
                    (B) $891,200 to implement a water management plan 
                for the San Xavier Reservation under section 308(d) of 
                the Southern Arizona Water Rights Settlement Amendments 
                Act of 2004 (as contained in the amendment made by 
                section 301);
                    (C) $237,200 to implement a water management plan 
                for the eastern Schuk Toak District under section 308(d) 
                of the Southern Arizona Water Rights Settlement 
                Amendments Act of 2004 (as contained in the amendment 
                made by section 301);
                    (D) $4,000,000 to complete the water resources study 
                under section 311(d) of the Southern Arizona Water 
                Rights Settlement Amendments Act of 2004 (as contained 
                in the amendment made by section 301);
                    (E) $215,000 to develop and implement a groundwater 
                monitoring program for the San Xavier Reservation under 
                section 311(c)(1) of the Southern Arizona Water Rights 
                Settlement Amendments Act of 2004 (as contained in the 
                amendment made by section 301);
                    (F) $175,000 to develop and implement a groundwater 
                monitoring program for the eastern Schuk Toak District 
                under section 311(c)(2) of the Southern Arizona Water 
                Rights Settlement Amendments Act of 2004 (as contained 
                in the amendment made by section 301); and
                    (G) $250,000 to complete the Asarco land exchange 
                study under section 311(f) of the Southern Arizona Water 
                Rights Settlement Amendments Act of 2004 (as contained 
                in the amendment made by section 301);
            (7) the State has enacted legislation that--
                    (A) qualifies the Nation to earn long-term storage 
                credits under the Asarco agreement;
                    (B) implements the San Xavier groundwater protection 
                program in accordance with paragraph 8.8 of the Tohono 
                O'odham settlement agreement;
                    (C) enables the State to carry out section 306(b); 
                and
                    (D) confirms the jurisdiction of the State court 
                having jurisdiction over Gila River adjudication 
                proceedings and decrees to carry out the provisions of 
                sections 312(d) and 312(h) of the Southern Arizona Water 
                Rights Settlement Amendments Act of 2004 (as contained 
                in the amendment made by section 301);
            (8) the Secretary and the State have agreed to an acceptable 
        firming schedule referred to in section 105(b)(2)(C); and
            (9) a final judgment has been entered in Central Arizona 
        Water Conservation District v. United States (No. CIV 95-625-
        TUC-WDB(EHC), No. CIV 95-1720-PHX-EHC) (Consolidated Action) in 
        accordance with the repayment stipulation as provided in section 
        207.

    (c) <<NOTE: Deadline.>> Failure To Publish Statement of Findings.--
If the Secretary does not publish a statement of findings under 
subsection (a) by December 31, 2007--

[[Page 118 STAT. 3573]]

            (1) the 1982 Act shall remain in full force and effect;
            (2) this title shall not take effect; and
            (3) any funds made available by the State under this title 
        that are not expended, together with any interest on those 
        funds, shall immediately revert to the State.

        TITLE IV--SAN CARLOS APACHE TRIBE WATER RIGHTS SETTLEMENT

SEC. 401. EFFECT OF TITLES I, II, AND III.

    None of the provisions of title I, II, or III or the agreements, 
attachments, exhibits, or stipulations referenced in those titles shall 
be construed to--
            (1) amend, alter, or limit the authority of--
                    (A) the United States to assert any claim against 
                any party, including any claim for water rights, injury 
                to water rights, or injury to water quality in its 
                capacity as trustee for the San Carlos Apache Tribe, its 
                members and allottees, or in any other capacity on 
                behalf of the San Carlos Apache Tribe, its members, and 
                allottees, in any judicial, administrative, or 
                legislative proceeding; or
                    (B) the San Carlos Apache Tribe to assert any claim 
                against any party, including any claim for water rights, 
                injury to water rights, or injury to water quality in 
                its own behalf or on behalf of its members and allottees 
                in any judicial, administrative, or legislative 
                proceeding consistent with title XXXVII of Public Law 
                102-575 (106 Stat. 4600, 4740); or
            (2) amend or alter the CAP Contract for the San Carlos 
        Apache Tribe dated December 11, 1980, as amended April 29, 1999.

SEC. 402. ANNUAL REPORT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act and annually thereafter, the Secretary shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Resources of the House of Representatives a report that 
describes the status of efforts to reach a negotiated agreement covering 
the Gila River water rights claims of the San Carlos Apache Tribe.
    (b) Termination.--This section shall be of no effect after the later 
of--
            (1) the date that is 3 years after the date of enactment of 
        this Act; or
            (2) the date on which the Secretary submits a third annual 
        report under this section.

SEC. 403. AUTHORIZATION OF APPROPRIATIONS.

    (a) San Carlos Apache Tribe.--There is authorized to be appropriated 
to assist the San Carlos Apache Tribe in completing comprehensive water 
resources negotiations leading to a comprehensive Gila River water 
settlement for the Tribe, including soil and water technical analyses, 
legal, paralegal, and other related efforts, $150,000 for fiscal year 
2006.
    (b) White Mountain Apache Tribe.--There is authorized to be 
appropriated to assist the White Mountain Apache Tribe in

[[Page 118 STAT. 3574]]

completing comprehensive water resources negotiations leading to a 
comprehensive water settlement for the Tribe, including soil and water 
technical analyses, legal, paralegal, and other related efforts, 
$150,000 for fiscal year 2006.
    (c) Other Arizona Indian Tribes.--There is authorized to be 
appropriated to the Secretary to assist Arizona Indian tribes (other 
than those specified in subsections (a) and (b)) in completing 
comprehensive water resources negotiations leading to a comprehensive 
water settlement for the Arizona Indian tribes, including soil and water 
technical analyses, legal, paralegal, and other related efforts, 
$300,000 for fiscal year 2006.
    (d) No Limitation on Other Funding.--Amounts made available under 
subsections (a), (b), and (c) shall not limit, and shall be in addition 
to, other amounts available for Arizona tribal water rights negotiations 
leading to comprehensive water settlements.

    Approved December 10, 2004.

LEGISLATIVE HISTORY--S. 437 (H.R. 885):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 108-793 (Comm. on Resources).
SENATE REPORTS: No. 108-360 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD, Vol. 150 (2004):
            Oct. 10, considered and passed Senate.
            Nov. 17, considered and passed House.

                                  <all>
```