I 

110TH CONGRESS 

1ST SESSION H. R. 1970 

To amend the Colorado River Storage Project Act and Public Law 87– 

483 to authorize the construction and rehabilitation of water infrastructure in Northwestern New Mexico, to authorize the use of the reclamation 

fund to fund the Reclamation Water Settlements Fund, to authorize 

the conveyance of certain Reclamation land and infrastructure, to authorize the Commissioner of Reclamation to provide for the delivery of 

water, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 19, 2007 

Mr. UDALL of New Mexico introduced the following bill; which was referred 

to the Committee on Natural Resources 

A BILL 

To amend the Colorado River Storage Project Act and Public 

Law 87–483 to authorize the construction and rehabilitation of water infrastructure in Northwestern New Mexico, to authorize the use of the reclamation fund to 

fund the Reclamation Water Settlements Fund, to authorize the conveyance of certain Reclamation land and 

infrastructure, to authorize the Commissioner of Reclamation to provide for the delivery of water, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

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1 SECTION 1. SHORT TITLE. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Northwestern New Mexico Rural Water Projects Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents of 

5 this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Definitions. 

Sec. 3. Compliance with environmental laws. 

TITLE I—AMENDMENTS TO THE COLORADO RIVER STORAGE 

PROJECT ACT AND PUBLIC LAW 87–483 

Sec. 101. Amendments to the Colorado River Storage Project Act. 

Sec. 102. Amendments to Public Law 87–483. 

Sec. 103. Effect on Federal water law. 

TITLE II—RECLAMATION WATER SETTLEMENTS FUND 

Sec. 201. Reclamation Water Settlements Fund. 

TITLE III—NORTHWESTERN NEW MEXICO RURAL WATER 

SUPPLY PROJECT 

Sec. 301. Purposes. 

Sec. 302. Authorization of Northwestern New Mexico Rural Water Supply 

Project. 

Sec. 303. Delivery and use of Northwestern New Mexico Rural Water Supply 

Project water. 

Sec. 304. Project contracts. 

Sec. 305. Use of Navajo Nation Municipal Pipeline. 

Sec. 306. Authorization of conjunctive use wells. 

Sec. 307. San Juan River Navajo Irrigation Projects. 

Sec. 308. Other irrigation projects. 

Sec. 309. Authorization of appropriations. 

TITLE IV—NAVAJO NATION WATER RIGHTS 

Sec. 401. Agreement. 

Sec. 402. Trust Fund. 

Sec. 403. Waivers and releases. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ACRE-FEET.—The term ‘‘acre-feet’’ means 

9 acre-feet per year. 

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1 (2) AGREEMENT.—The term ‘‘Agreement’’ 

2 means the agreement among the State of New Mex3 ico, the Nation, and the United States setting forth 

4 a stipulated and binding agreement signed by the 

5 State of New Mexico and the Nation on April 19, 

6 2005. 

7 (3) ANIMAS-LAPLATAPROJECT.—The term 

8 ‘‘Animas-La Plata Project’’ has the meaning given 

9 the term in section 3 of Public Law 100–585 (102 

10 Stat. 2973), including Ridges Basin Dam, Lake 

11 Nighthorse, the Pipeline, and any other features or 

12 modifications made pursuant to the Colorado Ute 

13 Settlement Act Amendments of 2000 (Public Law 

14 106–554; 114 Stat. 2763A–258). 

15 (4) CITY.—The term ‘‘City’’ means the city of 

16 Gallup, New Mexico. 

17 (5) COMPACT.—The term ‘‘Compact’’ means 

18 the Upper Colorado River Basin Compact as con19 sented to by the Act of April 6, 1949 (63 Stat. 31, 

20 chapter 48). 

21 (6) CONTRACT.—The term ‘‘Contract’’ means 

22 the contract between the United States and the Na23 tion setting forth certain commitments, rights, and 

24 obligations of the United States and the Nation, as 

25 described in paragraph 6.0 of the Agreement. 

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1 (7) DEPLETION.—The term ‘‘depletion’’ means 

2 the depletion of the flow of the San Juan River 

3 stream system in State of New Mexico by a par4 ticular use of water (including any depletion incident 

5 to the use) and represents the diversion from the 

6 stream system by the use, less return flows to the 

7 stream system from the use. 

8 (8) DRAFT IMPACT STATEMENT.—The term 

9 ‘‘Draft Impact Statement’’ means the draft environ10 mental impact statement prepared by the Bureau of 

11 Reclamation for the Project dated March 2007. 

12 (9) FUND.—The term ‘‘Fund’’ means the Rec13 lamation Waters Settlements Fund established by 

14 section 201(a). 

15 (10) HYDROLOGIC DETERMINATION.—The term 

16 ‘‘hydrologic determination’’ means the draft hydro17 logic determination entitled ‘‘Water Availability from 

18 Navajo Reservoir and the Upper Colorado River 

19 Basin for Use in New Mexico,’’ prepared by the Bu20 reau of Reclamation pursuant to section 11 of the 

21 Act of June 13, 1962 (Public Law 87–483; 76 Stat. 

22 99), and dated May 2006. 

23 (11) NATION.—The term ‘‘Nation’’ means the 

24 Navajo Nation, a body politic and federally-recog25 nized Indian nation as provided for in section 101(2) 

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1 of the Federally Recognized Indian Tribe List of 

2 1994 (25 U.S.C. 497a(2)), also known variously as 

3 the ‘‘Navajo Tribe,’’ the ‘‘Navajo Tribe of Arizona, 

4 New Mexico & Utah,’’ and the ‘‘Navajo Tribe of In5 dians’’ and other similar names, and includes all 

6 bands of Navajo Indians and chapters of the Navajo 

7 Nation. 

8 (12) NAVAJO INDIAN IRRIGATION PROJECT.— 

9 The term ‘‘Navajo Indian Irrigation Project’’ means 

10 the Navajo Indian irrigation project authorized by 

11 section 2 of Public Law 87–483 (76 Stat. 96). 

12 (13) NAVAJO RESERVOIR.—The term ‘‘Navajo 

13 Reservoir’’ means the reservoir created by the im14 poundment of the San Juan River at Navajo Dam, 

15 as authorized by the Act of April 11, 1956 (com16 monly known as the ‘‘Colorado River Storage 

17 Project Act’’) (43 U.S.C. 620 et seq.). 

18 (14) NAVAJO NATION MUNICIPAL PIPELINE.— 

19 The term ‘‘Navajo Nation Municipal Pipeline’’ 

20 means the pipeline used to convey the water of the 

21 Animas-La Plata Project of the Navajo Nation from 

22 the City of Farmington, New Mexico, to commu23 nities of the Navajo Nation located in close prox24 imity to the San Juan River Valley in State of New 

25 Mexico (including the City of Shiprock), as authormstockstill on PROD1PC66 with BILLS

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1 ized by section 15(b) of the Colorado Ute Indian 

2 Water Rights Settlement Act of 1988 (Public Law 

3 100–585; 102 Stat. 2973; 114 Stat. 2763A–263). 

4 (15) NON-NAVAJO IRRIGATION DISTRICT.—The 

5 term ‘‘Non-Navajo Irrigation Districts’’ means— 

6 (A) the Hammond Conservancy District; 

7 (B) the Bloomfield Irrigation District; and 

8 (C) any other community ditch organiza9 tion in the San Juan River basin in State of 

10 New Mexico. 

11 (16) PROJECT.—The term ‘‘Project’’ means the 

12 Northwestern New Mexico Rural Water Supply 

13 Project (commonly known as the ‘‘Navajo-Gallup 

14 Pipeline Project’’) authorized under section 302(a), 

15 as substantially described as the preferred alter16 native in the Draft Impact Statement. 

17 (17) PROJECT PARTICIPANTS.—The term 

18 ‘‘Project Participants’’ means the City, the Nation, 

19 and the Jicarilla Apache Nation. 

20 (18) RESOLUTION.—The term ‘‘Resolution’’ 

21 means the Resolution of the Upper Colorado River 

22 Commission entitled ‘‘Use and Accounting of Upper 

23 Basin Water Supplied to the Lower Basin in New 

24 Mexico by the Proposed Project’’ and dated June 

25 17, 2003. 

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1 (19) SAN JUAN RIVER RECOVERY IMPLEMENTA2 TION PROGRAM.—The term ‘‘San Juan River Recov3 ery Implementation Program’’ means the intergov4 ernmental program established pursuant to the coop5 erative agreement dated October 21, 1992 (including 

6 any amendments to the program). 

7 (20) SECRETARY.—The term ‘‘Secretary’’ 

8 means the Secretary of the Interior, acting through 

9 the Commissioner of Reclamation or any other des10 ignee. 

11 (21) STREAM ADJUDICATION.—The term 

12 ‘‘stream adjudication’’ means the general stream ad13 judication that is the subject of New Mexico v. 

14 United States, et al., No. 75–185 (11th Jud. Dist., 

15 San Juan County, New Mexico) (involving claims to 

16 waters of the San Juan River and the tributaries of 

17 that river). 

18 (22) TRUST FUND.—The term ‘‘Trust Fund’’ 

19 means the Navajo Nation Water Resources Develop20 ment Trust Fund established by section 402(a). 

21 SEC. 3. COMPLIANCE WITH ENVIRONMENTAL LAWS. 

22 (a) EFFECT OF EXECUTION OF AGREEMENT.—The 

23 execution of the Agreement under section 401(a)(2) shall 

24 not constitute a major Federal action under the National 

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1 Environmental Policy Act of 1969 (42 U.S.C. 4321 et 

2 seq.). 

3 (b) COMPLIANCE WITH ENVIRONMENTAL LAWS.—In 

4 carrying out this Act, the Secretary shall comply with each 

5 law of the Federal Government relating to the protection 

6 of the environment, including— 

7 (1) the National Environmental Policy Act of 

8 1969 (42 U.S.C. 4321 et seq.); and 

9 (2) the Endangered Species Act of 1973 (16 

10 U.S.C. 1531 et seq.). 

11 TITLE I—AMENDMENTS TO THE 

12 COLORADO RIVER STORAGE 

13 PROJECT ACT AND PUBLIC 

14 LAW 87–483 

15 SEC. 101. AMENDMENTS TO THE COLORADO RIVER STOR16 AGE PROJECT ACT. 

17 (a) PARTICIPATING PROJECTS.—Paragraph (2) of 

18 the first section of the Act of April 11, 1956 (commonly 

19 known as the ‘‘Colorado River Storage Project Act’’) (43 

20 U.S.C. 620(2)) is amended by inserting ‘‘the North21 western New Mexico Rural Water Supply Project,’’ after 

22 ‘‘Fruitland Mesa,’’. 

23 (b) NAVAJO RESERVOIR WATER BANK.—The Act of 

24 April 11, 1956 (commonly known as the ‘‘Colorado River 

25 Storage Project Act’’) is amended— 

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1 (1) by redesignating section 16 (43 U.S.C. 

2 620o) as section 17; and 

3 (2) by inserting after section 15 (43 U.S.C. 

4 620n) the following: 

5 ‘‘SEC. 16. (a) The Secretary of the Interior may cre6 ate and operate within the available capacity of Navajo 

7 Reservoir a top water bank. 

8 ‘‘(b) Water made available for the top water bank in 

9 accordance with subsections (c) and (d) shall not be sub10 ject to section 11 of Public Law 87–483 (76 Stat. 99). 

11 ‘‘(c) The top water bank authorized under subsection 

12 (a) shall be operated in a manner that— 

13 ‘‘(1) is consistent with applicable law; and 

14 ‘‘(2) does not impair the ability of the Secretary 

15 of the Interior to deliver water under contracts en16 tered into under— 

17 ‘‘(A) Public Law 87–483 (76 Stat. 96); 

18 and 

19 ‘‘(B) New Mexico State Engineer File Nos. 

20 2847, 2848, 2849, and 2917. 

21 ‘‘(d)(1) The Secretary of the Interior, in cooperation 

22 with the State of New Mexico (acting through the Inter23 state Stream Commission), shall develop any terms and 

24 procedures for the storage, accounting, and release of 

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1 water in the top water bank that are necessary to comply 

2 with subsection (c). 

3 ‘‘(2) The terms and procedures developed under para4 graph (1) shall include provisions requiring that— 

5 ‘‘(A) the storage of banked water shall be sub6 ject to approval under State law by the New Mexico 

7 State Engineer to ensure that impairment of any ex8 isting water right does not occur, including storage 

9 of water under New Mexico State Engineer File No. 

10 2849; 

11 ‘‘(B) water in the top water bank be subject to 

12 evaporation and other losses during storage; 

13 ‘‘(C) water in the top water bank be released 

14 for delivery to the owner or assigns of the banked 

15 water on request of the owner, subject to reasonable 

16 scheduling requirements for making the release; and 

17 ‘‘(D) water in the top water bank be the first 

18 water spilled or released for flood control purposes 

19 in anticipation of a spill, on the condition that top 

20 water bank water shall not be released or included 

21 for purposes of calculating whether a release should 

22 occur for purposes of satisfying releases required 

23 under the San Juan River Recovery Implementation 

24 Program. 

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1 ‘‘(e) The Secretary of the Interior may charge fees 

2 to water users that use the top water bank in amounts 

3 sufficient to cover the costs incurred by the United States 

4 in administering the water bank.’’. 

5 SEC. 102. AMENDMENTS TO PUBLIC LAW 87–483. 

6 (a) NAVAJO INDIAN IRRIGATION PROJECT.—Public 

7 Law 87–483 (76 Stat. 96) is amended by striking section 

8 2 and inserting the following: 

9 ‘‘SEC. 2. (a) In accordance with the Act of April 11, 

10 1956 (commonly known as the ‘Colorado River Storage 

11 Project Act’) (43 U.S.C. 620 et seq.), the Secretary of 

12 the Interior is authorized to construct, operate, and main13 tain the Navajo Indian Irrigation Project to provide irriga14 tion water to a service area of not more than 110,630 

15 acres of land. 

16 ‘‘(b)(1) Subject to paragraph (2), the average diver17 sion by the Navajo Indian Irrigation Project from the 

18 Navajo Reservoir over any consecutive 10-year period shall 

19 be the lesser of— 

20 ‘‘(A) 508,000 acre-feet per year; or 

21 ‘‘(B) the quantity of water necessary to supply 

22 an average depletion of 270,000 acre-feet per year. 

23 ‘‘(2) The quantity of water diverted for any 1 year 

24 shall not be more than 15 percent of the average diversion 

25 determined under paragraph (1). 

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1 ‘‘(c) In addition to being used for irrigation, the 

2 water diverted by the Navajo Indian Irrigation Project 

3 under subsection (b) may be used within the area served 

4 by Navajo Indian Irrigation Project facilities for the fol5 lowing purposes: 

6 ‘‘(1) Aquaculture purposes, including the 

7 rearing of fish in support of the San Juan River 

8 Basin Recovery Implementation Program authorized 

9 by Public Law 106–392 (114 Stat. 1602). 

10 ‘‘(2) Domestic, industrial, or commercial pur11 poses relating to agricultural production and proc12 essing. 

13 ‘‘(3) The generation of hydroelectric power as 

14 an incident to the diversion of water by the Navajo 

15 Indian Irrigation Project for authorized purposes. 

16 ‘‘(4) The implementation of the alternate water 

17 source provisions described in subparagraph 9.2 of 

18 the agreement executed under section 401(a)(2) of 

19 the Northwestern New Mexico Rural Water Projects 

20 Act. 

21 ‘‘(d) The Navajo Indian Irrigation Project water di22 verted under subsection (b) may be transferred to areas 

23 located within or outside the area served by Navajo Indian 

24 Irrigation Project facilities, and within or outside the 

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1 boundaries of the Navajo Nation, for any beneficial use 

2 in accordance with— 

3 ‘‘(1) the agreement executed under section 

4 401(a)(2) of the Northwestern New Mexico Rural 

5 Water Projects Act; 

6 ‘‘(2) the contract executed under section 

7 304(a)(2)(B) of the Northwestern New Mexico 

8 Rural Water Projects Act; and 

9 ‘‘(3) any other applicable law. 

10 ‘‘(e)(1) The Secretary may use the capacity of the 

11 Navajo Indian Irrigation Project works to convey water 

12 supplies for— 

13 ‘‘(A) the Northwestern New Mexico Rural 

14 Water Supply Project under section 302 of the 

15 Northwestern New Mexico Rural Water Projects 

16 Act; or 

17 ‘‘(B) other nonirrigation purposes authorized 

18 under subsection (c) or (d). 

19 ‘‘(2) The Secretary shall not reallocate, or require re20 payment of, construction costs of the Navajo Indian Irri21 gation Project because of the conveyance of water supplies 

22 under paragraph (1).’’. 

23 (b) RUNOFF ABOVE NAVAJO DAM.—Section 11 of 

24 Public Law 87–483 (76 Stat. 100) is amended by adding 

25 at the end the following: 

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1 ‘‘(d)(1) For purposes of implementing in a year of 

2 prospective shortage the water allocation procedures es3 tablished by subsection (a), the Secretary of the Interior 

4 shall determine the quantity of any shortages and the ap5 propriate apportionment of water using the normal diver6 sion requirements on the flow of the San Juan River origi7 nating above Navajo Dam based on the following criteria: 

8 ‘‘(A) The quantity of diversion or water delivery 

9 for the current year anticipated to be necessary to 

10 irrigate land in accordance with cropping plans pre11 pared by contractors. 

12 ‘‘(B) The annual diversion or water delivery de13 mands for the current year anticipated for non-irri14 gation uses under water delivery contracts, including 

15 the demand for delivery for uses in the State of Ari16 zona under the Northwestern New Mexico Rural 

17 Water Supply Project authorized by section 302(a) 

18 of the Northwestern New Mexico Rural Water 

19 Projects Act, but excluding any current demand for 

20 surface water for placement into aquifer storage for 

21 future recovery and use. 

22 ‘‘(C) An annual normal diversion demand of 

23 135,000 acre-feet for the initial stage of the San 

24 Juan-Chama Project authorized by section 8. 

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1 ‘‘(2) The Secretary shall not include in the normal 

2 diversion requirements— 

3 ‘‘(A) the quantity of water that reliably can be 

4 anticipated to be diverted or delivered under a con5 tract from inflows to the San Juan River arising 

6 below Navajo Dam under New Mexico State Engi7 neer File No. 3215; or 

8 ‘‘(B) the quantity of water anticipated to be 

9 supplied through reuse. 

10 ‘‘(3) If the State of New Mexico determines that 

11 water uses under Navajo Reservoir water supply contracts 

12 or diversions by the San Juan-Chama Project need to be 

13 reduced in any 1 year for the State to comply with the 

14 Upper Colorado River Basin Compact, as consented to by 

15 the Act of April 6, 1949 (63 Stat. 31, chapter 48), the 

16 Secretary shall reduce the normal diversion requirements 

17 for the year to reflect the water use or diversion limita18 tions imposed by the State of New Mexico. 

19 ‘‘(e)(1) If the Secretary determines that there is a 

20 shortage of water under subsection (a), the Secretary shall 

21 allocate the shortage to the demands on the Navajo Res22 ervoir water supply in the following order of priority: 

23 ‘‘(A) The demand for delivery for uses in the 

24 State of Arizona under the Northwestern New Mex25 ico Rural Water Supply Project authorized by secmstockstill on PROD1PC66 with BILLS

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1 tion 303 of the Northwestern New Mexico Rural 

2 Water Projects Act, excluding the quantity of water 

3 anticipated to be diverted for the uses from inflows 

4 to the San Juan River that arise below Navajo Dam 

5 in accordance with New Mexico State Engineer File 

6 No. 3215. 

7 ‘‘(B) The demand for delivery for uses allocated 

8 under paragraph 8.2 of the agreement executed 

9 under section 401(a)(2) of the Northwestern New 

10 Mexico Rural Water Projects Act, excluding the 

11 quantity of water anticipated to be diverted for such 

12 uses under State Engineer File No. 3215. 

13 ‘‘(C) The uses in the State of New Mexico that 

14 are determined under subsection (d), in accordance 

15 with the procedure for apportioning the water supply 

16 under subsection (a). 

17 ‘‘(2) For any year for which the Secretary determines 

18 and allocates a shortage in the Navajo Reservoir water 

19 supply, the Secretary shall not deliver, and contractors of 

20 the water supply shall not divert, any of the water supply 

21 for placement into aquifer storage for future recovery and 

22 use. 

23 ‘‘(3) To determine the occurrence and amount of any 

24 shortage to contracts entered into under this section, the 

25 Secretary shall not include as available storage any water 

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1 stored in a top water bank in Navajo Reservoir established 

2 under section 16(a) of the Act of April 11, 1956 (com3 monly known as the ‘Colorado River Storage Project Act’). 

4 ‘‘(f) The Secretary of the Interior shall apply the 

5 sharing and apportionment of water determined under 

6 subsections (a), (d), and (e) on an annual volume basis. 

7 ‘‘(g) The Secretary of the Interior may revise a deter8 mination of shortages, apportionments, or allocations of 

9 water under subsections (a), (d), and (e) on the basis of 

10 information relating to water supply conditions that was 

11 not available at the time at which the determination was 

12 made. 

13 ‘‘(h) Nothing in this section prohibits the Secretary 

14 from reallocating water for any year, including a year in 

15 which a shortage is determined under subsection (a), in 

16 accordance with cooperative water agreements between 

17 water users providing for a sharing of water supplies. 

18 ‘‘(i) Any water available for diversion under New 

19 Mexico State Engineer File No. 3215 shall be distributed, 

20 to the maximum extent practicable, in proportionate 

21 amounts to the diversion demands of all contractors and 

22 subcontractors of the Navajo Reservoir water supply that 

23 are diverting water below Navajo Dam.’’. 

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1 SEC. 103. EFFECT ON FEDERAL WATER LAW. 

2 Unless expressly provided in this Act, nothing in this 

3 Act modifies, conflicts with, preempts, or otherwise af4 fects— 

5 (1) the Boulder Canyon Project Act (43 U.S.C. 

6 617 et seq.); 

7 (2) the Boulder Canyon Project Adjustment Act 

8 (54 Stat. 774, chapter 643); 

9 (3) the Act of April 11, 1956 (commonly known 

10 as the ‘‘Colorado River Storage Project Act’’) (43 

11 U.S.C. 620 et seq.); 

12 (4) the Act of September 30, 1968 (commonly 

13 known as the ‘‘Colorado River Basin Project Act’’) 

14 (82 Stat. 885); 

15 (5) Public Law 87–483 (76 Stat. 96); 

16 (6) the Treaty between the United States of 

17 America and Mexico representing utilization of wa18 ters of the Colorado and Tijuana Rivers and of the 

19 Rio Grande, signed at Washington February 3, 1944 

20 (59 Stat. 1219); 

21 (7) the Colorado River Compact of 1922, as ap22 proved by the Presidential Proclamation of June 25, 

23 1929 (46 Stat. 3000); 

24 (8) the Compact; 

25 (9) the Act of April 6, 1949 (63 Stat. 31, chap26 ter 48); 

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1 (10) the Jicarilla Apache Tribe Water Rights 

2 Settlement Act (106 Stat. 2237); or 

3 (11) section 205 of the Energy and Water De4 velopment Appropriations Act, 2005 (118 Stat. 

5 2949). 

6 TITLE II—RECLAMATION WATER 

7 SETTLEMENTS FUND 

8 SEC. 201. RECLAMATION WATER SETTLEMENTS FUND. 

9 (a) ESTABLISHMENT.—There is established in the 

10 Treasury of the United States a fund, to be known as the 

11 ‘‘Reclamation Water Settlements Fund’’, consisting of— 

12 (1) such amounts as are deposited to the Fund 

13 under subsection (b); and 

14 (2) any interest earned on investment of 

15 amounts in the Fund under subsection (d). 

16 (b) DEPOSITS TO FUND.— 

17 (1) IN GENERAL.—For each of fiscal years 

18 2018 through 2028, the Secretary of the Treasury 

19 shall deposit in the Fund, if available, $100,000,000 

20 of the revenues that would otherwise be deposited 

21 for the fiscal year in the fund established by the 

22 first section of the Act of June 17, 1902 (32 Stat. 

23 388, chapter 1093). 

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1 (2) AVAILABILITY OF AMOUNTS.—Amounts de2 posited in the Fund under paragraph (1) shall be 

3 made available pursuant to this section— 

4 (A) without further appropriation; and 

5 (B) in addition to amounts appropriated 

6 pursuant to any authorization contained in any 

7 other provision of law. 

8 (c) EXPENDITURES FROM FUND.— 

9 (1) IN GENERAL.—For each of fiscal years 

10 2018 through 2030, on request by the Secretary 

11 pursuant to paragraphs (2) and (3), the Secretary 

12 of the Treasury shall transfer from the Fund to the 

13 Secretary an amount not to exceed $100,000,000 for 

14 the fiscal year requested. 

15 (2) REQUESTS.—The Secretary may request a 

16 transfer from the Fund to implement a settlement 

17 agreement approved by Congress that resolves, in 

18 whole or in part, litigation involving the United 

19 States or any other agreement approved by Congress 

20 that is entered into by the Secretary, if the settle21 ment or other agreement requires the Bureau of 

22 Reclamation to plan, design, and construct— 

23 (A) water supply infrastructure; or 

24 (B) a project— 

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1 (i) to rehabilitate a water delivery sys2 tem to conserve water; or 

3 (ii) to restore fish and wildlife habitat 

4 or otherwise improve environmental condi5 tions associated with or affected by a rec6 lamation project that is in existence on the 

7 date of enactment of this Act. 

8 (3) USE FOR COMPLETION OF PROJECT.— 

9 (A) PRIORITIES.— 

10 (i) FIRST PRIORITY.—The first pri11 ority for expenditure of amounts in the 

12 Fund shall be for the purposes described in 

13 subparagraph (B). 

14 (ii) OTHER PURPOSES.—Any amounts 

15 in the Fund that are not needed for the 

16 purposes described in subparagraph (B) 

17 may be used for other purposes authorized 

18 in paragraph (2). 

19 (B) COMPLETION OF PROJECT.—Effective 

20 beginning January 1, 2018, if, in the judgment 

21 of the Secretary, the deadline described in sec22 tion 401(f)(1)(A)(ix) is unlikely to be met be23 cause a sufficient amount of funding is not oth24 erwise available through appropriations made 

25 available pursuant to section 309(a), the Secmstockstill on PROD1PC66 with BILLS

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1 retary shall request the Secretary of the Treas2 ury to transfer from the Fund to the Secretary 

3 such amounts on an annual basis pursuant to 

4 paragraph (1), not to exceed a total of 

5 $500,000,000, as are necessary to pay the Fed6 eral share of the costs, and substantially com7 plete as expeditiously as practicable, the con8 struction of the water supply infrastructure au9 thorized as part of the Project. 

10 (C) PROHIBITED USE OF FUND.—The Sec11 retary shall not use any amount transferred 

12 from the Fund under subparagraph (A) to 

13 carry out any other feature or activity described 

14 in title IV other than a feature or activity relat15 ing to the construction of the water supply in16 frastructure authorized as part of the Project. 

17 (d) INVESTMENT OF AMOUNTS.— 

18 (1) IN GENERAL.—The Secretary of the Treas19 ury shall invest such portion of the Fund as is not, 

20 in the judgment of the Secretary of the Treasury, 

21 required to meet current withdrawals. 

22 (2) INTEREST-BEARING OBLIGATIONS.—Invest23 ments may be made only in interest-bearing obliga24 tions of the United States. 

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1 (3) ACQUISITION OF OBLIGATIONS.—For the 

2 purpose of investments under paragraph (1), obliga3 tions may be acquired— 

4 (A) on original issue at the issue price; or 

5 (B) by purchase of outstanding obligations 

6 at the market price. 

7 (4) SALE OF OBLIGATIONS.—Any obligation ac8 quired by the Fund may be sold by the Secretary of 

9 the Treasury at the market price. 

10 (5) CREDITS TO FUND.—The interest on, and 

11 the proceeds from the sale or redemption of, any ob12 ligations held in the Fund shall be credited to, and 

13 form a part of, the Fund. 

14 (e) TRANSFERS OF AMOUNTS.— 

15 (1) IN GENERAL.—The amounts required to be 

16 transferred to the Fund under this section shall be 

17 transferred at least monthly from the general fund 

18 of the Treasury to the Fund on the basis of esti19 mates made by the Secretary of the Treasury. 

20 (2) ADJUSTMENTS.—Proper adjustment shall 

21 be made in amounts subsequently transferred to the 

22 extent prior estimates were in excess of or less than 

23 the amounts required to be transferred. 

24 (f) TERMINATION.—On September 30, 2030— 

25 (1) the Fund shall terminate; and 

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1 (2) the unexpended and unobligated balance of 

2 the Fund shall be transferred to the general fund of 

3 the Treasury. 

4 TITLE III—NORTHWESTERN NEW 

5 MEXICO RURAL WATER SUP6 PLY PROJECT 

7 SEC. 301. PURPOSES. 

8 The purposes of this subtitle are— 

9 (1) to authorize the Secretary to construct the 

10 Northwestern New Mexico Rural Water Supply 

11 Project; 

12 (2) to allocate the water supply for the Project 

13 among the Nation, the city of Gallup, New Mexico, 

14 and the Jicarilla Apache Nation; and 

15 (3) to authorize the Secretary to enter into 

16 Project repayment contracts with the city of Gallup 

17 and the Jicarilla Apache Nation. 

18 SEC. 302. AUTHORIZATION OF NORTHWESTERN NEW MEX19 ICO RURAL WATER SUPPLY PROJECT. 

20 (a) IN GENERAL.—The Secretary, acting through the 

21 Commissioner of Reclamation, is authorized to design, 

22 construct, operate, and maintain the Project in substantial 

23 accordance with the preferred alternative in the Draft Im24 pact Statement. 

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1 (b) PROJECT FACILITIES.—To provide for the deliv2 ery of San Juan River water to Project Participants, the 

3 Secretary may construct, operate, and maintain the 

4 Project facilities described in the preferred alternative in 

5 the Draft Impact Statement, including: 

6 (1) A pumping plant on the San Juan River in 

7 the vicinity of Kirtland, New Mexico. 

8 (2)(A) A main pipeline from the San Juan 

9 River near Kirtland, New Mexico, to Shiprock, New 

10 Mexico, and Gallup, New Mexico, which follows 

11 United States Highway 491. 

12 (B) Any pumping plants associated with 

13 the pipeline authorized under subparagraph 

14 (A). 

15 (3)(A) A main pipeline from Cutter Reservoir 

16 to Ojo Encino, New Mexico, which follows United 

17 States Highway 550. 

18 (B) Any pumping plants associated with 

19 the pipeline authorized under subparagraph 

20 (A). 

21 (4)(A) Lateral pipelines from the main pipelines 

22 to Nation communities in the States of New Mexico 

23 and Arizona. 

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1 (B) Any pumping plants associated with 

2 the pipelines authorized under subparagraph 

3 (A). 

4 (5) Any water regulation, storage or treatment 

5 facility, service connection to an existing public 

6 water supply system, power substation, power dis7 tribution works, or other appurtenant works (includ8 ing a building or access road) that is related to the 

9 Project facilities authorized by paragraphs (1) 

10 through (4), including power transmission facilities 

11 to connect Project facilities to existing high-voltage 

12 transmission facilities. 

13 (c) ACQUISITION OF LAND.— 

14 (1) IN GENERAL.—Except as provided in para15 graph (2), the Secretary may acquire any land or in16 terest in land that is necessary to construct, operate, 

17 and maintain the Project facilities authorized under 

18 subsection (b). 

19 (2) LIMITATION.—The Secretary may not con20 demn water rights for purposes of the Project. 

21 (d) CONDITIONS.— 

22 (1) IN GENERAL.—The Secretary shall not com23 mence construction of the facilities authorized under 

24 subsection (b) until such time as— 

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1 (A) the Secretary executes the Agreement 

2 and the Contract; 

3 (B) the contracts authorized under section 

4 304 are executed; 

5 (C) the Secretary— 

6 (i) completes an environmental impact 

7 statement for the Project; and 

8 (ii) has issued a record of decision 

9 that provides for a preferred alternative; 

10 and 

11 (D) the State of New Mexico has made ar12 rangements with the Secretary to contribute 

13 $25,000,000 toward the construction costs of 

14 the Project. 

15 (2) COST SHARING.—State contributions re16 quired under paragraph (1)(D) shall be in addition 

17 to amounts that the State of New Mexico contrib18 utes for the planning and construction of regional 

19 facilities to distribute Project water to the City and 

20 surrounding Nation communities before the date on 

21 which the City executes a repayment contract under 

22 section 304(b). 

23 (3) EFFECT.—The design and construction of 

24 the Project shall not be subject to the Indian Selfmstockstill on PROD1PC66 with BILLS

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1 Determination and Education Assistance Act (25 

2 U.S.C. 450 et seq.). 

3 (e) POWER ISSUES.— 

4 (1) RESERVATION.—The Secretary shall re5 serve, from existing reservations of Colorado River 

6 Storage Project power for Bureau of Reclamation 

7 projects, up to 26 megawatts of power for use by the 

8 Project. 

9 (2) REALLOCATION OF COSTS.—Notwith10 standing the Act of April 11, 1956 (commonly 

11 known as the ‘‘Colorado River Storage Project Act’’) 

12 (43 U.S.C. 620 et seq.), the Secretary shall not re13 allocate or reassign any cost associated with the 

14 Project from an entity covered by this title to the 

15 power function. 

16 (f) CONVEYANCE OF PROJECT FACILITIES.— 

17 (1) IN GENERAL.—The Secretary is authorized 

18 to enter into separate agreements with the City and 

19 the Nation to convey each Project facility authorized 

20 under subsection (b) to the City and the Nation 

21 after— 

22 (A) completion of construction of the 

23 Project; and 

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1 (B) execution of a Project operations 

2 agreement approved by the Secretary and the 

3 Project Participants that sets forth— 

4 (i) any terms and conditions that the 

5 Secretary determines are necessary— 

6 (I) to ensure the continuation of 

7 the intended benefits of the Project; 

8 and 

9 (II) to fulfill the purposes of this 

10 subtitle; 

11 (ii) requirements acceptable to the 

12 Secretary and the Project Participants 

13 for— 

14 (I) the distribution of water 

15 under the Project; and 

16 (II) the allocation and payment 

17 of annual operation, maintenance, and 

18 replacement costs of the Project based 

19 on the proportionate uses of Project 

20 facilities; and 

21 (iii) conditions and requirements ac22 ceptable to the Secretary and the Project 

23 Participants for operating and maintaining 

24 each Project facility on completion of the 

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1 conveyance, including the requirement that 

2 the City and the Nation shall— 

3 (I) comply with— 

4 (aa) the Compact; and 

5 (bb) other applicable law; 

6 and 

7 (II) be responsible for— 

8 (aa) the operation, mainte9 nance, and replacement of each 

10 Project facility; and 

11 (bb) the accounting and 

12 management of water conveyance 

13 and Project finances, as nec14 essary to administer and fulfill 

15 the conditions of the Contract ex16 ecuted under section 

17 304(a)(2)(B). 

18 (2) CONVEYANCE TO THE CITY OF GALLUP OR

19 NAVAJO NATION.—In conveying a Project facility 

20 under this subsection, the Secretary shall convey 

21 to— 

22 (A) the City the facilities and any land or 

23 interest in land acquired by the United States 

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1 nance of the Project that are located within the 

2 corporate boundaries of the City; and 

3 (B) the Nation the facilities and any land 

4 or interests in land acquired by the United 

5 States for the construction, operation, and 

6 maintenance of the Project that are located out7 side the corporate boundaries of the City. 

8 (3) EFFECT OF CONVEYANCE.—The conveyance 

9 of each Project facility shall not affect the applica10 tion of the Endangered Species Act of 1973 (16 

11 U.S.C. 1531 et seq.) relating to the use of the water 

12 associated with the Project. 

13 (4) NOTICE OF PROPOSED CONVEYANCE.—Not 

14 later than 45 days before the date of a proposed 

15 conveyance of any Project facility, the Secretary 

16 shall submit to the Committee on Resources of the 

17 House of Representatives and to the Committee on 

18 Energy and Natural Resources of the Senate notice 

19 of the conveyance of each Project facility. 

20 (g) COLORADO RIVER STORAGE PROJECT POWER.— 

21 The conveyance of Project facilities under subsection (f) 

22 shall not affect the availability of Colorado River Storage 

23 Project power to the Project under subsection (e). 

24 (h) REGIONAL USE OF PROJECT FACILITIES.— 

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1 (1) IN GENERAL.—Subject to paragraph (2), 

2 Project facilities constructed under subsection (b) 

3 may be used to treat and convey non-Project water 

4 or water that is not allocated by subsection 303(b) 

5 if— 

6 (A) capacity is available without impairing 

7 any water delivery to a Project Participant; and 

8 (B) the unallocated or non-Project water 

9 beneficiary— 

10 (i) has the right to use the water; 

11 (ii) agrees to pay the operation, main12 tenance, and replacement costs assignable 

13 to the beneficiary for the use of the Project 

14 facilities; and 

15 (iii) agrees to pay a fee established by 

16 the Secretary to assist in the recovery of 

17 any capital cost relating to that use. 

18 (2) EFFECT OF PAYMENTS.—Any payments to 

19 the United States or the Nation for the use of un20 used capacity under this subsection or for water 

21 under any subcontract with the Nation or the 

22 Jicarilla Apache Nation shall not alter the construc23 tion repayment requirements or the operation, main24 tenance, and replacement payment requirements of 

25 the Project Participants. 

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1 SEC. 303. DELIVERY AND USE OF NORTHWESTERN NEW 

2 MEXICO RURAL WATER SUPPLY PROJECT 

3 WATER. 

4 (a) USE OF PROJECT WATER.— 

5 (1) IN GENERAL.—In accordance with this Act 

6 and other applicable law, water supply from the 

7 Project shall be used for municipal, industrial, com8 mercial, domestic, and stock watering purposes. 

9 (2) USE ON CERTAIN LAND.— 

10 (A) IN GENERAL.—Subject to subpara11 graph (B), the Nation may use Project water 

12 allocations on— 

13 (i) land held by the United States in 

14 trust for the Nation and members of the 

15 Nation; and 

16 (ii) land held in fee by the Nation. 

17 (B) TRANSFER.—The Nation may transfer 

18 the purposes and places of use of the allocated 

19 water in accordance with the Agreement and 

20 applicable law. 

21 (3) HYDROELECTRIC POWER.—Hydroelectric 

22 power may be generated as an incident to the deliv23 ery of Project water under paragraph (1). 

24 (4) STORAGE.— 

25 (A) IN GENERAL.—Subject to subpara26 graph (B), any water contracted for delivery 

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1 under paragraph (1) that is not needed for cur2 rent water demands or uses may be delivered by 

3 the Project for placement in underground stor4 age in the State of New Mexico for future re5 covery and use. 

6 (B) STATE APPROVAL.—Delivery of water 

7 under subparagraph (A) is subject to— 

8 (i) approval by the State of New Mex9 ico under applicable provisions of State law 

10 relating to aquifer storage and recovery; 

11 and 

12 (ii) the provisions of the Agreement 

13 and this Act. 

14 (b) PROJECT WATER AND CAPACITY ALLOCA15 TIONS.— 

16 (1) DIVERSION.—The Project shall divert from 

17 the Navajo Reservoir and the San Juan River a 

18 quantity of water that does not exceed the lesser 

19 of— 

20 (A) 37,760 acre-feet of water; or 

21 (B) the quantity of water necessary to sup22 ply a depletion from the San Juan River of 

23 35,890 acre-feet. 

24 (2) ALLOCATION.— 

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1 (A) IN GENERAL.—Water diverted under 

2 paragraph (1) shall be allocated to the Project 

3 Participants in accordance with subparagraphs 

4 (B) through (E), other provisions of this Act, 

5 and other applicable law. 

6 (B) ALLOCATION TO THE CITY OF GAL7 LUP.—The Project shall deliver at the point of 

8 diversion from the San Juan River not more 

9 than 7,500 acre-feet of water for use by the 

10 City. 

11 (C) ALLOCATION TO NAVAJO NATION COM12 MUNITIES IN NEW MEXICO.—For use by the 

13 Nation in the State of New Mexico, the Project 

14 shall deliver at the points of diversion from the 

15 San Juan River or at Navajo Reservoir the less16 er of— 

17 (i) 22,650 acre-feet of water; or 

18 (ii) the quantity of water necessary to 

19 supply a depletion from the San Juan 

20 River of 20,780 acre-feet of water. 

21 (D) ALLOCATION TO NAVAJO NATION COM22 MUNITIES IN ARIZONA.—In accordance with 

23 subsection (d), the Project may deliver at the 

24 point of diversion from the San Juan River not 

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1 more than 6,411 acre-feet of water for use by 

2 the Nation in the State of Arizona. 

3 (E) ALLOCATION TO JICARILLA APACHE

4 NATION.—The Project shall deliver at Navajo 

5 Reservoir not more than 1,200 acre-feet of 

6 water for use by the Jicarilla Apache Nation in 

7 the southern portion of the Jicarilla Apache 

8 Nation Reservation in the State of New Mexico. 

9 (3) USE IN EXCESS OF ALLOCATION QUAN10 TITY.—Notwithstanding each allocation quantity 

11 limit described in subparagraphs (B), (C), and (E) 

12 of paragraph (2), the Secretary may authorize a 

13 Project Participant to exceed the allocation quantity 

14 limit of that Project Participant if— 

15 (A) capacity is available without impairing 

16 any water delivery to any other Project Partici17 pant; and 

18 (B) the Project Participant benefitting 

19 from the increased allocation quantity— 

20 (i) has the right to use the additional 

21 water; 

22 (ii) agrees to pay the operation, main23 tenance, and replacement costs relating to 

24 the additional use any Project facility; and 

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1 (iii) agrees to pay a fee established by 

2 the Secretary to assist in recovering capital 

3 costs relating to that additional use. 

4 (c) SOURCES OF WATER.—The sources of water for 

5 the Project allocated by subsection (b) shall be water origi6 nating in— 

7 (1) drainage of the San Juan River above Nav8 ajo Dam, to be supplied under New Mexico State 

9 Engineer File No. 2849; and 

10 (2) inflow to the San Juan River arising below 

11 Navajo Dam, to be supplied under New Mexico 

12 State Engineer File No. 3215. 

13 (d) CONDITIONS FOR USE IN ARIZONA.— 

14 (1) REQUIREMENTS.—Project water shall not 

15 be delivered for use by any community of the Nation 

16 in the State of Arizona under subsection (b)(2)(D) 

17 until the date on which— 

18 (A) the Secretary determines by hydrologic 

19 investigation that sufficient water is reasonably 

20 likely to be available to supply uses from water 

21 of the Colorado River system allocated to the 

22 State of Arizona; 

23 (B) the Secretary submits to Congress the 

24 determination described in subparagraph (A); 

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1 (C) the Secretary determines that the uses 

2 in the State of Arizona are within the appor3 tionment of the water of the Colorado River 

4 made to the State of Arizona through compact, 

5 statute, or court decree; 

6 (D) Congress has approved a Navajo Res7 ervoir supply contract between the Nation and 

8 the United States to provide for the delivery of 

9 Project water for the uses in Arizona; 

10 (E) the Navajo Nation and the State of 

11 Arizona have entered into an agreement pro12 viding for delivery of water of the Project for 

13 uses in Arizona; and 

14 (F) any other determination is made as 

15 may be required by the Compact. 

16 (2) ACCOUNTING OF USES IN ARIZONA.—Any 

17 depletion of water from the San Juan River stream 

18 system in the State of New Mexico that results from 

19 the diversion of water by the Project for uses within 

20 the State of Arizona (including depletion incidental 

21 to the diversion, impounding, or conveyance of water 

22 in the State of New Mexico for uses in the State of 

23 Arizona)— 

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1 (A) shall be accounted for as a part of the 

2 Colorado River System apportionments to the 

3 State of Arizona; and 

4 (B) shall not increase the total quantity of 

5 water to which the State of Arizona is entitled 

6 to use under any compact, statute, or court de7 cree. 

8 (e) FORBEARANCE.— 

9 (1) IN GENERAL.—Subject to paragraphs (2) 

10 and (3), during any year in which a shortage to the 

11 normal diversion requirement for any use relating to 

12 the Project within the State of Arizona occurs (as 

13 determined under section 11 of Public Law 87–483 

14 (76 Stat. 99)), the Nation may temporarily forbear 

15 the delivery of the water supply of the Navajo Res16 ervoir for uses in the State of New Mexico under the 

17 apportionments of water to the Navajo Indian Irri18 gation Project and the normal diversion require19 ments of the Project to allow an equivalent quantity 

20 of water to be delivered from the Navajo Reservoir 

21 water supply for municipal and domestic uses of the 

22 Nation in the State of Arizona under the Project. 

23 (2) LIMITATION OF FORBEARANCE.—The Na24 tion may forebear the delivery of water under para25 graph (1) of a quantity not exceeding the quantity 

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1 of the shortage to the normal diversion requirement 

2 for any use relating to the Project within the State 

3 of Arizona. 

4 (3) EFFECT.—The forbearance of the delivery 

5 of water under paragraph (1) shall be subject to the 

6 requirements relating to accounting and water quan7 tity described in subsection (d)(2). 

8 (f) EFFECT.—Nothing in this Act— 

9 (1) authorizes the marketing, leasing, or trans10 fer of the water supplies made available to the Na11 tion under the Contract to non-Navajo water users 

12 in States other than the State of New Mexico; or 

13 (2) authorizes the forbearance of water uses in 

14 the State of New Mexico to allow uses of water in 

15 other States other than as authorized under sub16 section (e). 

17 (g) CONSISTENCY WITH UPPER COLORADO RIVER

18 BASIN COMPACT.—In accordance with the Resolution and 

19 notwithstanding any other provision of law— 

20 (1) water may be diverted by the Project from 

21 the San Juan River in the State of New Mexico for 

22 use in the Lower Colorado River Basin in the State 

23 of New Mexico; and 

24 (2) water diverted under paragraph (1) shall be 

25 a part of the consumptive use apportionment made 

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1 to the State of New Mexico by Article III(a) of the 

2 Compact. 

3 SEC. 304. PROJECT CONTRACTS. 

4 (a) NAVAJO NATION CONTRACT.— 

5 (1) HYDROLOGIC DETERMINATION.—Congress 

6 recognizes that the Hydrologic Determination satis7 factory to support approval of the Contract has been 

8 completed. 

9 (2) CONTRACT APPROVAL.— 

10 (A) APPROVAL.— 

11 (i) IN GENERAL.—Except to the ex12 tent that any provision of the Contract 

13 conflicts with this Act, Congress approves, 

14 ratifies, and incorporates by reference the 

15 Contract. 

16 (ii) AMENDMENTS.—To the extent 

17 any amendment is executed to make the 

18 Contract consistent with this Act, that 

19 amendment is authorized, ratified, and 

20 confirmed. 

21 (B) EXECUTION OF CONTRACT.—The Sec22 retary, acting on behalf of the United States, 

23 shall enter into the Contract to the extent that 

24 the Contract does not conflict with this Act (inmstockstill on PROD1PC66 with BILLS

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1 cluding any amendment that is required to 

2 make the Contract consistent with this Act). 

3 (3) NO REPAYMENT OBLIGATION.—The Nation 

4 is not obligated to repay— 

5 (A) any share of the construction costs of 

6 the Nation relating to the Project authorized by 

7 section 302(a); or 

8 (B) any costs relating to the construction 

9 of the Navajo Indian Irrigation Project that 

10 may otherwise be allocable to the Nation for 

11 use of any facility of the Navajo Indian Irriga12 tion Project to convey water to each Navajo 

13 community under the Project. 

14 (4) OPERATION, MAINTENANCE, AND REPLACE15 MENT OBLIGATION.—Subject to subsection (f), the 

16 Nation shall pay any costs relating to the operation, 

17 maintenance, and replacement of each facility of the 

18 Project that are allocable to the Nation. 

19 (5) LIMITATION, CANCELLATION, TERMINATION, 

20 AND RESCISSION.—The Contract may be limited by 

21 a term of years, canceled, terminated, or rescinded 

22 only by an Act of Congress. 

23 (b) CITY OF GALLUP CONTRACT.— 

24 (1) CONTRACT AUTHORIZATION.—To the extent 

25 consistent with this Act, the Secretary is authorized 

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1 to enter into a repayment contract with the City 

2 that requires the City— 

3 (A) to repay, within a 50-year period, the 

4 share of any construction cost of the City relat5 ing to the Project; and 

6 (B) to pay the operation, maintenance, and 

7 replacement costs of the Project that are allo8 cable to the City. 

9 (2) SHARE OF CONSTRUCTION COSTS.— 

10 (A) IN GENERAL.—Subject to subpara11 graph (B), the Secretary shall determine the 

12 share of the construction costs of the City relat13 ing to the Project, based on the ability of the 

14 City to pay the construction costs of each facil15 ity of the Project that is allocable to the City. 

16 (B) MINIMUM PERCENTAGE.—The share 

17 of the construction costs of the City shall be at 

18 least 25 percent of the construction costs of the 

19 Project that are allocable to the City. 

20 (3) EXCESS CONSTRUCTION COSTS.—Any con21 struction costs of the Project allocable to providing 

22 capacity to deliver water to the City that are in ex23 cess of the share of the City of the construction 

24 costs of the Project, as determined under paragraph 

25 (2), shall be nonreimbursable. 

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1 (4) GRANT FUNDS.—A grant from any other 

2 Federal source shall not be credited toward the 

3 amount required to be repaid by the City under a 

4 repayment contract. 

5 (5) TITLE TRANSFER.—If title is transferred to 

6 the City prior to repayment under section 302(f), 

7 the City shall be required to provide assurances sat8 isfactory to the Secretary of fulfillment of the re9 maining repayment obligation of the City. 

10 (6) OPERATION, MAINTENANCE AND REPLACE11 MENT OBLIGATION.—The City shall pay the oper12 ation, maintenance, and replacement costs for each 

13 facility of the Project that is allocable to the City. 

14 (7) WATER DELIVERY SUBCONTRACT.— 

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (B), the Secretary shall not enter 

17 into a contract under paragraph (1) with the 

18 City until the City has secured a water supply 

19 for the portion of the Project for which the City 

20 is responsible by entering into, as approved by 

21 the Secretary, a water delivery subcontract for 

22 a period of not less than 40 years beginning on 

23 the date on which the construction of any facil24 ity of the Project serving the City is completed, 

25 but for a period not exceeding 99 years, with— 

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1 (i) the Nation, as authorized by the 

2 Contract; or 

3 (ii) the Jicarilla Apache Nation, as 

4 authorized by the settlement contract be5 tween the United States and the Jicarilla 

6 Apache Tribe, authorized by the Jicarilla 

7 Apache Tribe Water Rights Settlement Act 

8 (Public Law 102–441; 106 Stat. 2237). 

9 (B) EFFECT.—Nothing in this para10 graph— 

11 (i) prevents the City from obtaining 

12 an alternate source of water for the por13 tion of the Project for which the City is re14 sponsible, subject to approval of the Sec15 retary and the State of New Mexico, acting 

16 through the New Mexico Interstate Stream 

17 Commission and the New Mexico State 

18 Engineer; or 

19 (ii) obligates the Nation or the 

20 Jicarilla Apache Nation to enter into a 

21 water delivery subcontract with the City. 

22 (c) JICARILLA APACHE NATION CONTRACT.— 

23 (1) CONTRACT AUTHORIZATION.—To the extent 

24 consistent with this Act, the Secretary is authorized 

25 to enter into a repayment contract with the Jicarilla 

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1 Apache Nation that requires the Jicarilla Apache 

2 Nation— 

3 (A) to repay, within a 50-year period, the 

4 share of any construction cost of the Jicarilla 

5 Apache Nation relating to the Project; and 

6 (B) to pay the operation, maintenance, and 

7 replacement costs of the Project that are allo8 cable to the Jicarilla Apache Nation. 

9 (2) SHARE OF CONSTRUCTION COSTS.— 

10 (A) IN GENERAL.—Subject to subpara11 graph (B), the Secretary shall determine the 

12 share of the Jicarilla Apache Nation of the con13 struction costs of the Project, based on the abil14 ity of the Jicarilla Apache Nation to pay the 

15 construction costs of the Project facilities that 

16 are allocable to the Jicarilla Apache Nation. 

17 (B) MINIMUM PERCENTAGE.—The share 

18 of the Jicarilla Apache Nation under subpara19 graph (A) shall be at least 25 percent of the 

20 construction costs of the Project that are allo21 cable to the Jicarilla Apache Nation. 

22 (3) EXCESS CONSTRUCTION COSTS.—Any con23 struction costs of the Project allocable to providing 

24 capacity to deliver water to the Jicarilla Apache Na25 tion that are in excess of the share of the Jicarilla 

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1 Apache Nation of the construction costs of the 

2 Project, as determined under paragraph (2), shall be 

3 nonreimbursable. 

4 (4) GRANT FUNDS.—A grant from any other 

5 Federal source shall not be credited toward the 

6 share of the Jicarilla Apache Nation of construction 

7 costs. 

8 (5) NAVAJO INDIAN IRRIGATION PROJECT

9 COSTS.—The Jicarilla Apache Nation shall have no 

10 obligation to repay any Navajo Indian Irrigation 

11 Project construction costs that might otherwise be 

12 allocable to the Jicarilla Apache Nation for use of 

13 the Navajo Indian Irrigation Project facilities to 

14 convey water to the Jicarilla Apache Nation. 

15 (6) OPERATION, MAINTENANCE AND REPLACE16 MENT OBLIGATION.—The Jicarilla Apache Nation 

17 shall pay the operation, maintenance, and replace18 ment costs relating to each facility of the Project 

19 that are allocable to the Jicarilla Apache Nation. 

20 (d) CAPITAL COST ALLOCATIONS.—For purposes of 

21 determining the capital repayment requirements of the 

22 Project Participants under this section, the Secretary shall 

23 review and, as appropriate, update the report prepared by 

24 the Bureau of Reclamation in the Draft Impact Statement 

25 allocating capital construction costs for the Project. 

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1 (e) OPERATION, MAINTENANCE, AND REPLACEMENT

2 COST ALLOCATIONS.—For purposes of determining the 

3 operation, maintenance, and replacement obligations of 

4 the Project Participants under this section, the Secretary 

5 shall review and, as appropriate, update the report pre6 pared by the Bureau of Reclamation in the Draft Impact 

7 Statement that allocates operation, maintenance, and re8 placement costs for the Project. 

9 (f) TEMPORARY WAIVERS OF PAYMENTS.— 

10 (1) IN GENERAL.—On the date on which the 

11 Project is substantially complete and the Nation re12 ceives a delivery of water generated by the Project, 

13 the Secretary may waive, for a period of not more 

14 than 10 years, the operation, maintenance, and re15 placement costs of the Project allocable to the Na16 tion that the Secretary determines are in excess of 

17 the ability of the Nation to pay. 

18 (2) PAYMENT BY UNITED STATES.—Any oper19 ation, maintenance, or replacement costs waived by 

20 the Secretary under paragraph (1) shall be paid by 

21 the United States. 

22 (3) EFFECT ON CONTRACTS.—Failure of the 

23 Secretary to waive costs under paragraph (1) be24 cause of a lack of availability of Federal funding to 

25 pay the costs under paragraph (2) shall not alter the 

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1 obligations of the Nation or the United States under 

2 a repayment contract. 

3 (4) TERMINATION OF AUTHORITY.—The au4 thority of the Secretary to waive costs under para5 graph (1) with respect to a Project facility trans6 ferred to the Nation under section 302(f) shall ter7 minate on the date on which the Project facility is 

8 transferred. 

9 SEC. 305. USE OF NAVAJO NATION MUNICIPAL PIPELINE. 

10 In addition to use of the Navajo Nation Municipal 

11 Pipeline to convey the Animas-La Plata Project water of 

12 the Nation, the Nation may use the Navajo Nation Munic13 ipal Pipeline to convey water for other purposes (including 

14 purposes relating to the Project). 

15 SEC. 306. AUTHORIZATION OF CONJUNCTIVE USE WELLS. 

16 (a) CONJUNCTIVE GROUNDWATER DEVELOPMENT

17 PLAN.—Not later than 1 year after the date of enactment 

18 of this Act, the Nation, in consultation with the Secretary, 

19 shall complete a conjunctive groundwater development 

20 plan for the wells described in subsections (b) and (c). 

21 (b) WELLS IN THE SAN JUAN RIVER BASIN.—In ac22 cordance with the conjunctive groundwater development 

23 plan, the Secretary may construct or rehabilitate wells and 

24 related pipeline facilities to provide capacity for the diver25 sion and distribution of not more than 1,670 acre-feet of 

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1 groundwater in the San Juan River Basin in the State 

2 of New Mexico for municipal and domestic uses. 

3 (c) WELLS IN THE LITTLE COLORADO AND RIO

4 GRANDE BASINS.— 

5 (1) IN GENERAL.—In accordance with the 

6 Project and conjunctive groundwater development 

7 plan for the Nation, the Secretary may construct or 

8 rehabilitate wells and related pipeline facilities to 

9 provide capacity for the diversion and distribution 

10 of— 

11 (A) not more than 680 acre-feet of ground12 water in the Little Colorado River Basin in the 

13 State of New Mexico; 

14 (B) not more than 80 acre-feet of ground15 water in the Rio Grande Basin in the State of 

16 New Mexico; and 

17 (C) not more than 770 acre-feet of ground18 water in the Little Colorado River Basin in the 

19 State of Arizona. 

20 (2) USE.—Groundwater diverted and distrib21 uted under paragraph (1) shall be used for munic22 ipal and domestic uses. 

23 (d) ACQUISITION OF LAND.— 

24 (1) IN GENERAL.—Except as provided in para25 graph (2), the Secretary may acquire any land or inmstockstill on PROD1PC66 with BILLS

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1 terest in land that is necessary for the construction, 

2 operation, and maintenance of the wells and related 

3 pipeline facilities authorized under subsections (b) 

4 and (c). 

5 (2) LIMITATION.—Nothing in this subsection 

6 authorizes the Secretary to condemn water rights for 

7 the purposes described in paragraph (1). 

8 (e) CONDITION.—The Secretary shall not commence 

9 any construction activity relating to the wells described in 

10 subsections (b) and (c) until the Secretary executes the 

11 Agreement. 

12 (f) CONVEYANCE OF WELLS.— 

13 (1) IN GENERAL.—The Secretary shall enter 

14 into an agreement with the Nation to convey to the 

15 Nation— 

16 (A) any well or related pipeline facility 

17 constructed or rehabilitated under subsections 

18 (a) and (b) after the wells and related facilities 

19 have been completed; and 

20 (B) any land or interest in land acquired 

21 by the United States for the construction, oper22 ation, and maintenance of the well or related 

23 pipeline facility. 

24 (2) OPERATION, MAINTENANCE, AND REPLACE25 MENT.—On completion of a conveyance under paramstockstill on PROD1PC66 with BILLS

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1 graph (1), the Nation shall assume responsibility for 

2 the operation, maintenance, and replacement of the 

3 well or related pipeline facility conveyed. 

4 (3) EFFECT OF CONVEYANCE.—The conveyance 

5 to the Nation of the conjunctive use wells under 

6 paragraph (1) shall not affect the application of the 

7 Endangered Species Act of 1973 (16 U.S.C. 1531 et 

8 seq.). 

9 (g) USE OF PROJECT FACILITIES.—The capacities of 

10 the treatment facilities, main pipelines, and lateral pipe11 lines of the Project authorized by section 302(b) may be 

12 used to treat and convey groundwater to Nation commu13 nities if the Nation provides for payment of the operation, 

14 maintenance, and replacement costs associated with the 

15 use of the facilities or pipelines. 

16 (h) LIMITATIONS.—The diversion and use of ground17 water by wells constructed or rehabilitated under this sec18 tion shall be made in a manner consistent with applicable 

19 Federal and State law. 

20 SEC. 307. SAN JUAN RIVER NAVAJO IRRIGATION PROJECTS. 

21 (a) REHABILITATION.—Subject to subsection (b), the 

22 Secretary shall rehabilitate— 

23 (1) the Fruitland-Cambridge Irrigation Project 

24 to serve not more than 3,335 acres of land, which 

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1 shall be considered to be the total serviceable area 

2 of the Project; and 

3 (2) the Hogback-Cudei Irrigation Project to 

4 serve not more than 8,830 acres of land, which shall 

5 be considered to be the total serviceable area of the 

6 Project. 

7 (b) CONDITION.—The Secretary shall not commence 

8 any construction activity relating to the rehabilitation of 

9 the Fruitland-Cambridge Irrigation Project or the Hog10 back-Cudei Irrigation Project under subsection (a) until 

11 the Secretary executes the Agreement. 

12 (c) OPERATION, MAINTENANCE, AND REPLACEMENT

13 OBLIGATION.—Upon the date of completion of the reha14 bilitation, the Nation shall assume the obligations for the 

15 operation, maintenance, and replacement of each facility 

16 rehabilitated under this section. 

17 SEC. 308. OTHER IRRIGATION PROJECTS. 

18 (a) IN GENERAL.—Not later than 2 years after the 

19 date of enactment of this Act, the Secretary, in consulta20 tion with the State of New Mexico (acting through the 

21 Interstate Stream Commission) and the Non-Navajo Irri22 gation Districts that elect to participate, shall— 

23 (1) conduct a study of Non-Navajo Irrigation 

24 District diversion and ditch facilities; and 

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1 (2) based on the study, identify and prioritize 

2 a list of projects, with associated cost estimates, that 

3 are recommended to be implemented to repair, reha4 bilitate, or reconstruct irrigation diversion and ditch 

5 facilities to improve water use efficiency. 

6 (b) GRANTS.—The Secretary may provide grants to, 

7 and enter into cooperative agreements with, the Non-Nav8 ajo Irrigation Districts to plan, design, or otherwise imple9 ment the projects identified under subsection (a)(2). 

10 (c) COST-SHARING.— 

11 (1) FEDERAL SHARE.—The Federal share of 

12 the total cost of carrying out a project under sub13 section (b) shall be not more than 50 percent. 

14 (2) FORM.—The non-Federal share required 

15 under paragraph (1) may be in the form of in-kind 

16 contributions, including the contribution of any valu17 able asset or service that the Secretary determines 

18 would substantially contribute to a project carried 

19 out under subsection (b). 

20 (3) STATE CONTRIBUTION.—The Secretary may 

21 accept from the State of New Mexico a partial or 

22 total contribution toward the non-Federal share for 

23 a project carried out under subsection (b). 

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1 SEC. 309. AUTHORIZATION OF APPROPRIATIONS. 

2 (a) AUTHORIZATION OF APPROPRIATIONS FOR

3 NORTHWESTERN NEW MEXICO RURAL WATER SUPPLY

4 PROJECT.— 

5 (1) IN GENERAL.—There is authorized to be 

6 appropriated to the Secretary to construct the 

7 Project such sums as are necessary for the period of 

8 fiscal years 2008 through 2022. 

9 (2) ADJUSTMENTS.—The amount under para10 graph (1) shall be adjusted by such amounts as may 

11 be required by reason of changes since 2005 in con12 struction costs, as indicated by engineering cost indi13 ces applicable to the types of construction involved. 

14 (3) USE.—In addition to the uses authorized 

15 under paragraph (1), amounts made available under 

16 that paragraph may be used for the conduct of re17 lated activities to comply with Federal environmental 

18 laws. 

19 (b) APPROPRIATIONS FOR CONJUNCTIVE USE

20 WELLS.— 

21 (1) SAN JUAN WELLS.—There is authorized to 

22 be appropriated to the Secretary for the construction 

23 or rehabilitation of conjunctive use wells under sec24 tion 306(b) $30,000,000, as adjusted under para25 graph (3), for the period of fiscal years 2008 

26 through 2018. 

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1 (2) WELLS IN THE LITTLE COLORADO AND RIO

2 GRANDE BASINS.—There is authorized to be appro3 priated to the Secretary for the construction or reha4 bilitation of conjunctive use wells under section 

5 306(c) such sums as are necessary for the period of 

6 fiscal years 2008 through 2024. 

7 (3) ADJUSTMENTS.—The amount under para8 graph (1) shall be adjusted by such amounts as may 

9 be required by reason of changes since 2004 in con10 struction costs, as indicated by engineering cost indi11 ces applicable to the types of construction or reha12 bilitation involved. 

13 (4) NONREIMBURSABLE EXPENDITURES.— 

14 Amounts made available under paragraphs (1) and 

15 (2) shall be nonreimbursable to the United States. 

16 (5) USE.—In addition to the uses authorized 

17 under paragraphs (1) and (2), amounts made avail18 able under that paragraph may be used for the con19 duct of related activities to comply with Federal en20 vironmental laws. 

21 (c) SAN JUAN RIVER IRRIGATION PROJECTS.— 

22 (1) IN GENERAL.—There are authorized to be 

23 appropriated to the Secretary— 

24 (A) to carry out section 307(a)(1), not 

25 more than $7,700,000, as adjusted under paramstockstill on PROD1PC66 with BILLS

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1 graph (2), for the period of fiscal years 2008 

2 through 2014; and 

3 (B) to carry out section 307(a)(2), not 

4 more than $15,400,000, as adjusted under 

5 paragraph (2), for the period of fiscal years 

6 2008 through 2017. 

7 (2) ADJUSTMENT.—The amounts made avail8 able under paragraph (1) shall be adjusted by such 

9 amounts as may be required by reason of changes 

10 since January 1, 2004, in construction costs, as in11 dicated by engineering cost indices applicable to the 

12 types of construction involved in the rehabilitation. 

13 (3) NONREIMBURSABLE EXPENDITURES.— 

14 Amounts made available under this subsection shall 

15 be nonreimbursable to the United States. 

16 (d) OTHER IRRIGATION PROJECTS.—There are au17 thorized to be appropriated to the Secretary to carry out 

18 section 308 $11,000,000 for the period of fiscal years 

19 2008 through 2017. 

20 (e) CULTURAL RESOURCES.— 

21 (1) IN GENERAL.—The Secretary may use not 

22 more than 4 percent of amounts made available 

23 under subsections (a) and (b) for the survey, recov24 ery, protection, preservation, and display of archaemstockstill on PROD1PC66 with BILLS

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1 ological resources in the area of a Project facility or 

2 conjunctive use well. 

3 (2) NONREIMBURSABLE EXPENDITURES.—Any 

4 amounts made available under paragraph (1) shall 

5 be nonreimbursable and nonreturnable to the United 

6 States. 

7 (f) FISH AND WILDLIFE FACILITIES.— 

8 (1) IN GENERAL.—In association with the de9 velopment of the Project, the Secretary may use not 

10 more than 4 percent of amounts made available 

11 under subsections (a) and (b) to purchase land and 

12 construct and maintain facilities to mitigate the loss 

13 of, and improve conditions for the propagation of, 

14 fish and wildlife if any such purchase, construction, 

15 or maintenance will not affect the operation of any 

16 water project or use of water. 

17 (2) NONREIMBURSABLE EXPENDITURES.—Any 

18 amounts expended under paragraph (1) shall be 

19 nonreimbursable and nonreturnable to the United 

20 States. 

21 TITLE IV—NAVAJO NATION 

22 WATER RIGHTS 

23 SEC. 401. AGREEMENT. 

24 (a) AGREEMENT APPROVAL.— 

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1 (1) APPROVAL BY CONGRESS.—Except to the 

2 extent that any provision of the Agreement conflicts 

3 with this Act, Congress approves, ratifies, and incor4 porates by reference the Agreement (including any 

5 amendments to the Agreement that are executed to 

6 make the Agreement consistent with this Act). 

7 (2) EXECUTION BY SECRETARY.—The Sec8 retary, acting on behalf of the United States, shall 

9 enter into the Agreement to the extent that the 

10 Agreement does not conflict with this Act, includ11 ing— 

12 (A) any exhibits to the Agreement requir13 ing the signature of the Secretary; and 

14 (B) any amendments to the Agreement 

15 necessary to make the Agreement consistent 

16 with this Act. 

17 (3) AUTHORITY OF SECRETARY.—The Sec18 retary may carry out any action that the Secretary 

19 determines is necessary or appropriate to implement 

20 the Agreement, the Contract, and this section. 

21 (4) ADMINISTRATION OF NAVAJO RESERVOIR

22 RELEASES.—The State of New Mexico may admin23 ister releases of stored water from Navajo Reservoir 

24 in accordance with subparagraph 9.1 of the Agree25 ment. 

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1 (b) WATER AVAILABLE UNDER CONTRACT.— 

2 (1) QUANTITIES OF WATER AVAILABLE.— 

3 (A) IN GENERAL.—Water shall be made 

4 available annually under the Contract for 

5 projects in the State of New Mexico supplied 

6 from the Navajo Reservoir and the San Juan 

7 River (including tributaries of the River) under 

8 New Mexico State Engineer File Numbers 

9 2849, 2883, and 3215 in the quantities de10 scribed in subparagraph (B). 

11 (B) WATER QUANTITIES.—The quantities 

12 of water referred to in subparagraph (A) are as 

13 follows: 

Diversion 

(acrefeet/ 

year) 

Depletion 

(acrefeet/ 

year) 

Navajo Indian Irrigation Project 508,000 270,000 

Northwestern New Mexico Rural Water Supply Project 22,650 20,780 

Animas-La Plata Project 4,680 2,340 

Total 535,330 293,120 

14 (C) MAXIMUM QUANTITY.—A diversion of 

15 water to the Nation under the Contract for a 

16 project described in subparagraph (B) shall not 

17 exceed the quantity of water necessary to sup18 ply the amount of depletion for the project. 

19 (D) TERMS, CONDITIONS, AND LIMITA20 TIONS.—The diversion and use of water under 

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1 the Contract shall be subject to and consistent 

2 with the terms, conditions, and limitations of 

3 the Agreement, this Act, and any other applica4 ble law. 

5 (2) AMENDMENTS TO CONTRACT.—The Sec6 retary, with the consent of the Nation, may amend 

7 the Contract if the Secretary determines that the 

8 amendment is— 

9 (A) consistent with the Agreement; and 

10 (B) in the interest of conserving water or 

11 facilitating beneficial use by the Nation or a 

12 subcontractor of the Nation. 

13 (3) RIGHTS OF THE NATION.—The Nation may, 

14 under the Contract— 

15 (A) use tail water, wastewater, and return 

16 flows attributable to a use of the water by the 

17 Nation or a subcontractor of the Nation if— 

18 (i) the depletion of water does not ex19 ceed the quantities described in paragraph 

20 (1); and 

21 (ii) the use of tail water, wastewater, 

22 or return flows is consistent with the 

23 terms, conditions, and limitations of the 

24 Agreement, the Resolution, and any other 

25 applicable law; and 

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1 (B) change a point of diversion, change a 

2 purpose or place of use, and transfer a right for 

3 depletion under this Act (except for a point of 

4 diversion, purpose or place of use, or right for 

5 depletion for use in the State of Arizona under 

6 section 303(b)(2)(D)), to another use, purpose, 

7 place, or depletion in the State of New Mexico 

8 to meet a water resource or economic need of 

9 the Nation if— 

10 (i) the change or transfer is subject to 

11 and consistent with the terms of the 

12 Agreement, the Partial Final Decree de13 scribed in paragraph 3.0 of the Agreement, 

14 the Contract, and any other applicable law; 

15 and 

16 (ii) a change or transfer of water use 

17 by the Nation does not alter any obligation 

18 of the United States, the Nation, or an19 other party to pay or repay project con20 struction, operation, maintenance, or re21 placement costs under this Act and the 

22 Contract. 

23 (c) SUBCONTRACTS.— 

24 (1) IN GENERAL.— 

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1 (A) SUBCONTRACTS BETWEEN NATION

2 AND THIRD PARTIES.—The Nation may enter 

3 into subcontracts for the delivery of Project 

4 water under the Contract to third parties for 

5 any beneficial use in the State of New Mexico 

6 (on or off land held by the United States in 

7 trust for the Nation or a member of the Nation 

8 or land held in fee by the Nation). 

9 (B) APPROVAL REQUIRED.—A subcontract 

10 entered into under subparagraph (A) shall not 

11 be effective until approved by the Secretary in 

12 accordance with this subsection and the Con13 tract. 

14 (C) SUBMITTAL.—The Nation shall submit 

15 to the Secretary for approval or disapproval any 

16 subcontract entered into under this subsection. 

17 (D) DEADLINE.—The Secretary shall ap18 prove or disapprove a subcontract submitted to 

19 the Secretary under subparagraph (C) not later 

20 than the later of— 

21 (i) the date that is 180 days after the 

22 date on which the subcontract is submitted 

23 to the Secretary; and 

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1 (ii) the date that is 60 days after the 

2 date on which a subcontractor complies 

3 with— 

4 (I) section 102(2)(C) of the Na5 tional Environmental Policy Act of 

6 1969 (42 U.S.C. 4332(2)(C)); and 

7 (II) any other requirement of 

8 Federal law. 

9 (E) ENFORCEMENT.—A party to a sub10 contract may enforce the deadline described in 

11 subparagraph (D) under section 1361 of title 

12 28, United States Code. 

13 (F) COMPLIANCE WITH OTHER LAW.—A 

14 subcontract described in subparagraph (A) shall 

15 comply with the Agreement, the Partial Final 

16 Decree described in paragraph 3.0 of the Agree17 ment, and any other applicable law. 

18 (2) ALIENATION.— 

19 (A) PERMANENT ALIENATION.—The Na20 tion shall not permanently alienate any right 

21 granted to the Nation under the Contract. 

22 (B) MAXIMUM TERM.—The term of any 

23 water use subcontract (including a renewal) 

24 under this subsection shall be not more than 99 

25 years. 

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1 (3) NONINTERCOURSE ACT COMPLIANCE.—This 

2 subsection— 

3 (A) provides congressional authorization 

4 for the subcontracting rights of the Nation; and 

5 (B) is deemed to fulfill any requirement 

6 that may be imposed by section 2116 of the Re7 vised Statutes (25 U.S.C. 177). 

8 (4) FORFEITURE.—The nonuse of the water 

9 supply secured by a subcontractor of the Nation 

10 under this subsection shall not result in forfeiture, 

11 abandonment, relinquishment, or other loss of any 

12 part of a right decreed to the Nation under the Con13 tract or this section. 

14 (5) NO PER CAPITA PAYMENTS.—No part of 

15 the revenue from a water use subcontract under this 

16 subsection shall be distributed to any member of the 

17 Nation on a per capita basis. 

18 (d) WATER LEASES NOT REQUIRING SUB19 CONTRACTS.— 

20 (1) AUTHORITY OF NATION.— 

21 (A) IN GENERAL.—The Nation may lease, 

22 contract, or otherwise transfer to another party 

23 or to another purpose or place of use in the 

24 State of New Mexico (on or off land that is held 

25 by the United States in trust for the Nation or 

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1 a member of the Nation or held in fee by the 

2 Nation) a water right that— 

3 (i) is decreed to the Nation under the 

4 Agreement; and 

5 (ii) is not subject to the Contract. 

6 (B) COMPLIANCE WITH OTHER LAW.—In 

7 carrying out an action under this subsection, 

8 the Nation shall comply with the Agreement, 

9 the Partial Final Decree described in paragraph 

10 3.0 of the Agreement, the Supplemental Partial 

11 Final Decree described in paragraph 4.0 of the 

12 Agreement, and any other applicable law. 

13 (2) ALIENATION; MAXIMUM TERM.— 

14 (A) ALIENATION.—The Nation shall not 

15 permanently alienate any right granted to the 

16 Nation under the Agreement. 

17 (B) MAXIMUM TERM.—The term of any 

18 water use lease, contract, or other arrangement 

19 (including a renewal) under this subsection 

20 shall be not more than 99 years. 

21 (3) NONINTERCOURSE ACT COMPLIANCE.—This 

22 subsection— 

23 (A) provides congressional authorization 

24 for the lease, contracting, and transfer of any 

25 water right described in paragraph (1)(A); and 

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1 (B) is deemed to fulfill any requirement 

2 that may be imposed by the provisions of sec3 tion 2116 of the Revised Statutes (25 U.S.C. 

4 177). 

5 (4) FORFEITURE.—The nonuse of a water right 

6 of the Nation by a lessee or contractor to the Nation 

7 under this subsection shall not result in forfeiture, 

8 abandonment, relinquishment, or other loss of any 

9 part of a right decreed to the Nation under the Con10 tract or this section. 

11 (e) HYDROGRAPHIC SURVEY.— 

12 (1) PREPARATION.—The Secretary, on behalf of 

13 the United States, shall prepare a hydrographic sur14 vey under the joint supervision of the Secretary and 

15 the State of New Mexico (acting through the New 

16 Mexico State Engineer) to identify and quantify any 

17 historic or existing diversion or use of water (includ18 ing from surface water and underground water 

19 sources) by the Nation or a member of the Nation 

20 from the San Juan River Basin in the State of New 

21 Mexico, as described in subparagraph 4.2 of the 

22 Agreement. 

23 (2) AUTHORIZATION OF APPROPRIATIONS.— 

24 (A) IN GENERAL.—Subject to subpara25 graph (B), there is authorized to be appromstockstill on PROD1PC66 with BILLS

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1 priated to the Bureau of Indian Affairs to carry 

2 out paragraph (1) $5,000,000 for the period of 

3 fiscal years 2008 through 2013. 

4 (B) ADJUSTMENT.—The amounts made 

5 available under subparagraph (A) shall be ad6 justed by such amounts as are necessary to ac7 count for increases in the costs of preparing a 

8 hydrographic survey after January 1, 2004, as 

9 determined using cost indices applicable to the 

10 types of technical and engineering work in11 volved in preparing the hydrographic survey. 

12 (C) NONREIMBURSABLE EXPENDI13 TURES.—Any amounts made available under 

14 this paragraph shall be nonreimbursable to the 

15 United States. 

16 (f) NULLIFICATION.— 

17 (1) DEADLINES.— 

18 (A) IN GENERAL.—In carrying out this 

19 section, the following deadlines apply with re20 spect to implementation of the Agreement: 

21 (i) AGREEMENT.—Not later than De22 cember 31, 2008, the Secretary shall exe23 cute the Agreement. 

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1 (ii) CONTRACT.—Not later than De2 cember 31, 2009, the Secretary and the 

3 Nation shall execute the Contract. 

4 (iii) PARTIAL FINAL DECREE.—Not 

5 later than December 31, 2012, the court in 

6 the stream adjudication shall have entered 

7 the Partial Final Decree described in para8 graph 3.0 of the Agreement. 

9 (iv) HYDROGRAPHIC SURVEY.—Not 

10 later than December 31, 2013, the Sec11 retary shall complete the hydrographic sur12 vey described in subsection (e). 

13 (v) FRUITLAND-CAMBRIDGE IRRIGA14 TION PROJECT.—Not later than December 

15 31, 2014, the rehabilitation construction of 

16 the Fruitland-Cambridge Irrigation Project 

17 authorized under section 307(a)(1) shall be 

18 completed. 

19 (vi) SUPPLEMENTAL PARTIAL FINAL

20 DECREE.—Not later than December 31, 

21 2015, the court in the stream adjudication 

22 shall enter the Supplemental Partial Final 

23 Decree described in subparagraph 4.0 of 

24 the Agreement. 

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1 (vii) HOGBACK-CUDEI IRRIGATION

2 PROJECT.—Not later than December 31, 

3 2017, the rehabilitation construction of the 

4 Hogback-Cudei Irrigation Project author5 ized under section 307(a)(2) shall be com6 pleted. 

7 (viii) TRUST FUND.—Not later than 

8 December 31, 2018, the United States 

9 shall make all deposits into the Trust 

10 Fund under section 402. 

11 (ix) CONJUNCTIVE WELLS.—Not later 

12 than December 31, 2018, the funds au13 thorized to be appropriated under section 

14 309(b)(1) for the conjunctive use wells au15 thorized under section 306(b) should be 

16 appropriated. 

17 (x) NORTHWESTERN NEW MEXICO

18 RURAL WATER SUPPLY PROJECT.—Not 

19 later than December 31, 2022, the con20 struction of all Project facilities shall be 

21 completed. 

22 (B) EXTENSION.—A deadline described in 

23 subparagraph (A) may be extended if the Na24 tion, the United States (acting through the Sec25 retary), and the State of New Mexico (acting 

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1 through the New Mexico Interstate Stream 

2 Commission) agree that an extension is reason3 ably necessary. 

4 (2) REVOCABILITY OF AGREEMENT, CONTRACT

5 AND AUTHORIZATIONS.— 

6 (A) PETITION.—If the Nation determines 

7 that a deadline described in paragraph (1)(A) is 

8 not substantially met, the Nation may submit 

9 to the court in the stream adjudication a peti10 tion to enter an order terminating the Agree11 ment and Contract. 

12 (B) TERMINATION.—On issuance of an 

13 order to terminate the Agreement and Contract 

14 under subparagraph (A)— 

15 (i) the Trust Fund shall be termi16 nated; 

17 (ii) the balance of the Trust Fund 

18 shall be deposited in the general fund of 

19 the Treasury; 

20 (iii) the authorizations for construc21 tion and rehabilitation of water projects 

22 under this Act shall be revoked and any 

23 Federal activity related to that construc24 tion and rehabilitation shall be suspended; 

25 and 

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1 (iv) this title and titles I and III shall 

2 be null and void. 

3 (3) CONDITIONS NOT CAUSING NULLIFICATION

4 OF SETTLEMENT.— 

5 (A) IN GENERAL.—If a condition described 

6 in subparagraph (B) occurs, the Agreement and 

7 Contract shall not be nullified or terminated. 

8 (B) CONDITIONS.—The conditions referred 

9 to in subparagraph (A) are as follows: 

10 (i) A lack of right to divert at the ca11 pacities of conjunctive use wells con12 structed or rehabilitated under section 

13 306. 

14 (ii) A failure— 

15 (I) to determine or resolve an ac16 counting of the use of water under 

17 this Act in the State of Arizona; 

18 (II) to obtain a necessary water 

19 right for the consumptive use of water 

20 in Arizona; 

21 (III) to contract for the delivery 

22 of water for use in Arizona; or 

23 (IV) to construct and operate a 

24 lateral facility to deliver water to a 

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1 community of the Nation in Arizona, 

2 under the Project. 

3 (4) RIGHTS OF THE NATION.—A tribal right 

4 under the Contract, a water right adjudicated con5 sistent with the Contract in the stream adjudication 

6 by the Partial Final Decree described in paragraph 

7 3.0 of the Agreement, and any other tribal water 

8 right stipulated, adjudicated, or decreed as described 

9 in the Agreement and this Act shall be held in trust 

10 by the United States in perpetuity for the benefit of 

11 the Nation. 

12 (g) EFFECT ON RIGHTS OF INDIAN TRIBES.— 

13 (1) IN GENERAL.—Except as provided in para14 graph (2), nothing in the Agreement, the Contract, 

15 or this section quantifies or adversely affects the 

16 land and water rights, or claims or entitlements to 

17 water, of any Indian tribe or community other than 

18 the rights, claims, or entitlements of the Nation in, 

19 to, and from the San Juan River Basin in the State 

20 of New Mexico. 

21 (2) EXCEPTION.—The right of the Nation to 

22 use water under water rights the Nation has in 

23 other river basins in the State of New Mexico shall 

24 be forborne to the extent that the Nation supplies 

25 the uses for which the water rights exist by divermstockstill on PROD1PC66 with BILLS

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1 sions of water from the San Juan River Basin under 

2 the Project consistent with subparagraph 9.13 of the 

3 Agreement. 

4 SEC. 402. TRUST FUND. 

5 (a) ESTABLISHMENT.—There is established in the 

6 Treasury a fund to be known as the ‘‘Navajo Nation 

7 Water Resources Development Trust Fund’’, consisting 

8 of— 

9 (1) such amounts as are appropriated to the 

10 Trust Fund under subsection (f); and 

11 (2) any interest earned on investment of 

12 amounts in the Trust Fund under subsection (d). 

13 (b) USE OF FUNDS.—The Nation may use amounts 

14 in the Trust Fund— 

15 (1) to investigate, construct, operate, maintain, 

16 or replace water project facilities, including facilities 

17 conveyed to the Nation under this Act; and 

18 (2) to investigate, implement, or improve a 

19 water conservation measure (including a metering or 

20 monitoring activity) necessary for the Nation to 

21 make use of a water right of the Nation under the 

22 Agreement. 

23 (c) MANAGEMENT.—The Secretary shall manage the 

24 Trust Fund, invest amounts in the Trust Fund, and make 

25 amounts available from the Trust Fund for distribution 

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1 to the Nation in accordance with the American Indian 

2 Trust Fund Management Reform Act of 1994 (25 U.S.C. 

3 4001 et seq.). 

4 (d) INVESTMENT OF THE TRUST FUND.—The Sec5 retary shall invest amounts in the Trust Fund in accord6 ance with— 

7 (1) the Act of April 1, 1880 (25 U.S.C. 161); 

8 (2) the first section of the Act of June 24, 

9 1938 (25 U.S.C. 162a); and 

10 (3) the American Indian Trust Fund Manage11 ment Reform Act of 1994 (25 U.S.C. 4001 et seq.). 

12 (e) CONDITIONS FOR EXPENDITURES AND WITH13 DRAWALS.— 

14 (1) TRIBAL MANAGEMENT PLAN.— 

15 (A) IN GENERAL.—Subject to paragraph 

16 (7), on approval by the Secretary of a tribal 

17 management plan in accordance with the Amer18 ican Indian Trust Fund Management Reform 

19 Act of 1994 (25 U.S.C. 4001 et seq.), the Na20 tion may withdraw all or a portion of the 

21 amounts in the Trust Fund. 

22 (B) REQUIREMENTS.—In addition to any 

23 requirements under the American Indian Trust 

24 Fund Management Reform Act of 1994 (25 

25 U.S.C. 4001 et seq.), the tribal management 

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1 plan shall require that the Nation only use 

2 amounts in the Trust Fund for the purposes 

3 described in subsection (b), including the identi4 fication of water conservation measures to be 

5 implemented in association with the agricultural 

6 water use of the Nation. 

7 (2) ENFORCEMENT.—The Secretary may take 

8 judicial or administrative action to enforce the provi9 sions of any tribal management plan to ensure that 

10 any amounts withdrawn from the Trust Fund are 

11 used in accordance with this Act. 

12 (3) NO LIABILITY.—Neither the Secretary nor 

13 the Secretary of the Treasury shall be liable for the 

14 expenditure or investment of any amounts with15 drawn from the Trust Fund by the Nation. 

16 (4) EXPENDITURE PLAN.— 

17 (A) IN GENERAL.—The Nation shall sub18 mit to the Secretary for approval an expendi19 ture plan for any portion of the amounts in the 

20 Trust Fund made available under this section 

21 that the Nation does not withdraw under this 

22 subsection. 

23 (B) DESCRIPTION.—The expenditure plan 

24 shall describe the manner in which, and the 

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1 purposes for which, funds of the Nation remain2 ing in the Trust Fund will be used. 

3 (C) APPROVAL.—On receipt of an expendi4 ture plan under subparagraph (A), the Sec5 retary shall approve the plan if the Secretary 

6 determines that the plan is reasonable and con7 sistent with this Act. 

8 (5) ANNUAL REPORT.—The Nation shall sub9 mit to the Secretary an annual report that describes 

10 any expenditures from the Trust Fund during the 

11 year covered by the report. 

12 (6) LIMITATION.—No portion of the amounts in 

13 the Trust Fund shall be distributed to any Nation 

14 member on a per capita basis. 

15 (7) CONDITIONS.—Any amount authorized to 

16 be appropriated to the Trust Fund under subsection 

17 (f) shall not be available for expenditure or with18 drawal— 

19 (A) before December 31, 2018; and 

20 (B) until the date on which the court in 

21 the stream adjudication has entered— 

22 (i) the Partial Final Decree described 

23 in paragraph 3.0 of the Agreement; and 

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1 (ii) the Supplemental Partial Final 

2 Decree described in paragraph 4.0 of the 

3 Agreement. 

4 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated for deposit in the Trust 

6 Fund— 

7 (1) $6,000,000 for each of fiscal years 2008 

8 through 2012; and 

9 (2) $4,000,000 for each of fiscal years 2013 

10 through 2017. 

11 SEC. 403. WAIVERS AND RELEASES. 

12 (a) EXECUTION.—The Nation, on behalf of itself and 

13 members of the Nation (other than members in their ca14 pacity as allottees), and the United States, acting through 

15 the Secretary and in its capacity as trustee for the Nation, 

16 shall execute waivers and releases in accordance with 

17 paragraph 7.0 of the Agreement. 

18 (b) RESERVATION.—Notwithstanding subsection (a), 

19 the Nation and its members (including members in their 

20 capacity as allottees) and the United States, as trustee 

21 for the Nation and allottees, shall retain the rights and 

22 claims specified in paragraph 7.0 of the Agreement. 

23 (c) EFFECTIVE DATE.— 

24 (1) IN GENERAL.—The waivers and releases de25 scribed in subsection (a) shall be effective on the 

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1 date on which the Secretary publishes in the Federal 

2 Register a statement of findings documenting that 

3 each of the deadlines described in section 401(f)(1) 

4 have been met. 

5 (2) DEADLINE.—If the deadlines in section 

6 401(f)(1)(A) have not been met by the later of 

7 March 1, 2023, or the date of any extension under 

8 section 401(f)(1)(B)— 

9 (A) the waivers and releases described in 

10 subsection (a) shall be of no effect; and 

11 (B) section 401(f)(2)(B) shall apply. 

Æ 

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