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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4998 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 665
118th CONGRESS
  2d Session
                                S. 4998

                          [Report No. 118-263]

 To approve the settlement of water rights claims of the Navajo Nation 
 in the Rio San Jose Stream System in the State of New Mexico, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 9, 2024

Mr. Heinrich (for himself and Mr. Lujan) introduced the following bill; 
  which was read twice and referred to the Committee on Indian Affairs

                            December 4, 2024

               Reported by Mr. Schatz, without amendment

_______________________________________________________________________

                                 A BILL

 
 To approve the settlement of water rights claims of the Navajo Nation 
 in the Rio San Jose Stream System in the State of New Mexico, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Navajo Nation Rio 
San Jose Stream System Water Rights Settlement Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. Ratification of Agreement.
Sec. 5. Navajo Nation's Water Rights.
Sec. 6. Navajo Nation Rio San Jose Settlement Trust Fund.
Sec. 7. Funding.
Sec. 8. Enforceability Date.
Sec. 9. Waivers and releases of claims.
Sec. 10. Satisfaction of claims.
Sec. 11. Consent of United States to jurisdiction for judicial review 
                            of a Navajo Nation Water Use Permit 
                            decision.
Sec. 12. Miscellaneous provisions.
Sec. 13. Relation to Allottees.
Sec. 14. Expansion of Navajo-Gallup Water Supply Project service area.
Sec. 15. Antideficiency.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to achieve a fair, equitable, and final settlement of 
        all claims to water rights in the general stream adjudication 
        of the Rio San Jose Stream System captioned ``State of New 
        Mexico, ex rel. State Engineer v. Kerr-McGee, et al.'', No. D-
        1333-CV-1983-00190 and No. D-1333-CV-1983-00220 (consolidated), 
        pending in the Thirteenth Judicial District Court for the State 
        of New Mexico, for--
                    (A) the Navajo Nation; and
                    (B) the United States, acting as trustee for the 
                Navajo Nation;
            (2) to authorize, ratify, and confirm the agreement entered 
        into by the Navajo Nation, the State, and various other parties 
        to the Agreement, to the extent that the Agreement is 
        consistent with this Act;
            (3) to authorize and direct the Secretary--
                    (A) to execute the Agreement; and
                    (B) to take any other actions necessary to carry 
                out the Agreement in accordance with this Act; and
            (4) to authorize funds necessary for the implementation of 
        the Agreement and this Act.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Acequia.--The term ``Acequia'' means each of the 
        Bluewater Toltec Irrigation District, La Acequia Madre del Ojo 
        del Gallo, Moquino Water Users Association II, Murray Acres 
        Irrigation Association, San Mateo Irrigation Association, 
        Seboyeta Community Irrigation Association, Cubero Acequia 
        Association, Cebolletita Acequia Association, and Community 
        Ditch of Rio San Jose de la Cienega.
            (2) Adjudication.--The term ``Adjudication'' means the 
        general adjudication of water rights entitled ``State of New 
        Mexico, ex rel. State Engineer v. Kerr-McGee, et al.'', No. D-
        1333-CV-1983-00190 and No. D-1333-CV-1983-00220 (consolidated) 
        pending, as of the date of enactment of this Act, in the Decree 
        Court.
            (3) Agreement.--The term ``Agreement'' means--
                    (A) the addendum dated June 11, 2024, to, and as 
                provided in Article 17 of, the document entitled ``Rio 
                San Jose Stream System Water Rights Local Settlement 
                Agreement Among the Pueblo of Acoma, the Pueblo of 
                Laguna, the Navajo Nation, the State of New Mexico, the 
                City of Grants, the Village of Milan, the Association 
                of Community Ditches of the Rio San Jose and Nine 
                Individual Acequias and Community Ditches'' and dated 
                May 13, 2022, and the attachments thereto and to the 
                addendum; and
                    (B) any amendment to the documents referred to in 
                subparagraph (A) (including an amendment to an 
                attachment) that is executed to ensure that the 
                Agreement is consistent with this Act.
            (4) Allotment.--The term ``Allotment'' means a parcel of 
        land that is--
                    (A) located within--
                            (i) the Rio Puerco Basin; or
                            (ii) the Rio San Jose Stream System; and
                    (B) held in trust by the United States for the 
                benefit of--
                            (i) 1 or more individual Indians; or
                            (ii) an Indian Tribe holding an undivided 
                        fractional beneficial interest.
            (5) Allottee.--The term ``Allottee'' means--
                    (A) an individual Indian holding a beneficial 
                interest in an Allotment; or
                    (B) an Indian Tribe holding an undivided fractional 
                beneficial interest in an Allotment.
            (6) Decree court.--The term ``Decree Court'' means the 
        Thirteenth Judicial District Court of the State of New Mexico.
            (7) Enforceability date.--The term ``Enforceability Date'' 
        means the date described in section 8.
            (8) Navajo nation; navajo; nation.--
                    (A) In general.--The terms ``Navajo Nation'', 
                ``Navajo'', and ``Nation'' mean the body politic and 
                federally recognized Indian nation, as published on the 
                list required under section 104(a) of the Federally 
                Recognized Indian Tribe List Act of 1994 (25 U.S.C. 
                5131(a)), also known variously as the ``Navajo Nation 
                of Arizona, New Mexico, & Utah'', and the ``Navajo 
                Nation of Indians'' and other similar names.
                    (B) Inclusions.--The terms ``Navajo Nation'', 
                ``Navajo'', and ``Nation'' include all bands of Navajo 
                Indians and chapters of the Navajo Nation and all 
                divisions, agencies, officers, and agents thereof.
            (9) Navajo nation lands; navajo lands.--
                    (A) In general.--The terms ``Navajo Nation Lands'' 
                and ``Navajo Lands'' mean any real property--
                            (i) in the Rio San Jose Stream System that 
                        is held by the United States in trust for the 
                        Navajo Nation, or owned by the Navajo Nation, 
                        as of the Enforceability Date; or
                            (ii) in the Rio Puerco Basin that is held 
                        by the United States in trust for the Navajo 
                        Nation, or owned by the Navajo Nation, as of 
                        the Enforceability Date.
                    (B) Inclusions.--The terms ``Navajo Nation Lands'' 
                and ``Navajo Lands'' include land placed in trust with 
                the United States subsequent to the Enforceability Date 
                for the Navajo Nation in the Rio San Jose Stream System 
                and in the Rio Puerco Basin.
                    (C) Exclusion.--The terms ``Navajo Nation Lands'' 
                and ``Navajo Lands'' do not include Allotments.
            (10) Navajo nation water code.--The term ``Navajo Nation 
        Water Code'' means the water code enacted in 1984 by the Navajo 
        Nation Council through Resolution CAU-34-84. (22 N.N.C. 1101 et 
        seq.).
            (11) Navajo nation water use permit.--The term ``Navajo 
        Nation Water Use Permit'' means a document specifying terms and 
        conditions for diversion and use of water on Navajo Nation 
        Lands issued by the Navajo Nation within the scope of its 
        authority under the Navajo Nation Water Code and the Settlement 
        Agreement.
            (12) Navajo nation's water rights.--
                    (A) In general.--The term ``Navajo Nation's Water 
                Rights'' means--
                            (i) the water rights of the Navajo Nation 
                        in the Rio San Jose Stream System--
                                    (I) as identified in the Agreement 
                                and section 5; and
                                    (II) as confirmed in the Navajo 
                                Partial Final Judgment and Decree; and
                            (ii) the water rights of the Navajo Nation 
                        in the Rio Puerco Basin, as identified in the 
                        Agreement and section 5.
                    (B) Exclusions.--The term ``Navajo Nation's Water 
                Rights'' does not include--
                            (i) any interest that the Nation may have 
                        in an Allotment that is determined by the 
                        Secretary to be patented pursuant to section 1 
                        of the Act of February 8, 1887 (commonly known 
                        as the ``Indian General Allotment Act'') (24 
                        Stat. 388, chapter 119; 25 U.S.C. 331) (as in 
                        effect on the day before the date of enactment 
                        of the Indian Land Consolidation Act Amendments 
                        of 2000 (Public Law 106-462; 114 Stat. 1991)); 
                        or
                            (ii) any undivided interest that the Nation 
                        may have in an Allotment that is determined by 
                        the Secretary to be patented pursuant to an 
                        authority other than section 1 of the Act of 
                        February 8, 1887 (commonly known as the 
                        ``Indian General Allotment Act'') (24 Stat. 
                        388, chapter 119; 25 U.S.C. 331) (as in effect 
                        on the day before the date of enactment of the 
                        Indian Land Consolidation Act Amendments of 
                        2000 (Public Law 106-462; 114 Stat. 1991)).
            (13) Navajo partial final judgment and decree.--The term 
        ``Navajo Partial Final Judgment and Decree'' means a final or 
        interlocutory partial final judgment and decree entered by the 
        Decree Court with respect to the Navajo Nation's Water Rights--
                    (A) that is substantially in the form described in 
                article 17.14.7.2 of the Agreement, as amended to 
                ensure consistency with this Act; and
                    (B) from which no further appeal may be taken.
            (14) Navajo trust fund.--The term ``Navajo Trust Fund'' 
        means the Navajo Nation Rio San Jose Settlement Trust Fund 
        established under section 6(a).
            (15) Rio puerco basin.--The term ``Rio Puerco Basin'' means 
        the area defined by the United States Geological Survey 
        Hydrologic Unit Codes (HUC) 13020204 (Rio Puerco subbasin) and 
        13020205 (Arroyo Chico subbasin), including the hydrologically 
        connected groundwater.
            (16) Rio san jose stream system.--The term ``Rio San Jose 
        Stream System'' means the geographic extent of the area 
        involved in the Adjudication pursuant to the description filed 
        in the Decree Court on November 21, 1986.
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (18) Signatory acequia.--The term ``Signatory Acequia'' 
        means an acequia that is a signatory to the Agreement.
            (19) State.--The term ``State'' means the State of New 
        Mexico and all officers, agents, departments, and political 
        subdivisions of the State of New Mexico.

SEC. 4. RATIFICATION OF AGREEMENT.

    (a) Ratification.--
            (1) In general.--Except as modified by this Act, and to the 
        extent that the Agreement does not conflict with this Act, the 
        Agreement is authorized, ratified, and confirmed.
            (2) Amendments.--If an amendment to the Agreement, or to 
        any attachment to the Agreement requiring the signature of the 
        Secretary, is executed in accordance with this Act to make the 
        Agreement consistent with this Act, the amendment is 
        authorized, ratified, and confirmed.
    (b) Execution.--
            (1) In general.--To the extent that the Agreement does not 
        conflict with this Act, the Secretary shall execute the 
        Agreement, including all attachments to, or parts of, the 
        Agreement requiring the signature of the Secretary.
            (2) Modifications.--Nothing in this Act prohibits the 
        Secretary, after execution of the Agreement, from approving any 
        modification to the Agreement, including an attachment to the 
        Agreement, that is consistent with this Act, to the extent that 
        the modification does not otherwise require congressional 
        approval under section 2116 of the Revised Statutes (25 U.S.C. 
        177) or any other applicable provision of Federal law.
    (c) Environmental Compliance.--
            (1) In general.--In implementing the Agreement and this 
        Act, the Secretary shall comply with--
                    (A) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.);
                    (B) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.), including the implementing 
                regulations of that Act; and
                    (C) all other applicable Federal environmental laws 
                and regulations.
            (2) Compliance.--
                    (A) In general.--In implementing the Agreement and 
                this Act, the Navajo Nation shall prepare any necessary 
                environmental documents, consistent with--
                            (i) the Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.);
                            (ii) the National Environmental Policy Act 
                        of 1969 (42 U.S.C. 4321 et seq.), including the 
                        implementing regulations of that Act; and
                            (iii) all other applicable Federal 
                        environmental laws and regulations.
                    (B) Authorizations.--The Secretary shall--
                            (i) independently evaluate the 
                        documentation required under subparagraph (A); 
                        and
                            (ii) be responsible for the accuracy, 
                        scope, and contents of that documentation.
            (3) Effect of execution.--The execution of the Agreement by 
        the Secretary under this section shall not constitute a major 
        Federal action under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.).
            (4) Costs.--Any costs associated with the performance of 
        the compliance activities under this subsection shall be paid 
        from funds deposited in the Navajo Trust Fund or other sources 
        of funding from the Navajo Nation, subject to the condition 
        that any costs associated with the performance of Federal 
        approval or other review of such compliance work or costs 
        associated with inherently Federal functions shall remain the 
        responsibility of the Secretary.

SEC. 5. NAVAJO NATION'S WATER RIGHTS.

    (a) Trust Status of Navajo Nation's Water Rights.--The Navajo 
Nation's Water Rights shall be held in trust by the United States on 
behalf of the Nation in accordance with the Agreement and this Act.
    (b) Forfeiture and Abandonment.--
            (1) In general.--The Navajo Nation's Water Rights shall not 
        be subject to loss through non-use, forfeiture, abandonment, or 
        other operation of law.
            (2) State-law based water rights.--State-law based water 
        rights acquired by the Navajo Nation, or by the United States 
        on behalf of the Nation, after the date for inclusion in the 
        Navajo Partial Final Judgment and Decree, shall not be subject 
        to forfeiture, abandonment, or permanent alienation from the 
        time they are acquired.
    (c) Use.--Any use of the Navajo Nation's Water Rights shall be 
subject to the terms and conditions of the Agreement and this Act.
    (d) Allotment Rights Not Included.--Consistent with section 13, the 
Navajo Nation's Water Rights shall not include any water rights for an 
Allotment, subject to the condition that the Navajo Nation may allow 
use of the Navajo Nation's Water Rights on an Allotment subject to the 
terms and conditions of the Agreement and this Act.
    (e) Allottees Not Adversely Affected.--Nothing in this Act 
quantifies or diminishes any water right, or any claim or entitlement 
to water, of an Allottee.
    (f) Allottee Water Rights.--The Nation shall not object in any 
general stream adjudication, including the Adjudication, to the 
quantification of reasonable domestic, stock, and irrigation water uses 
on an Allotment, and shall administer any water use in accordance with 
applicable Federal law, including recognition of--
            (1) any water use existing on an Allotment as of the date 
        of enactment of this Act;
            (2) reasonable domestic, stock, and irrigation water uses 
        on an Allotment; and
            (3) any water right decreed to the United States in trust 
        for an Allottee in a general stream adjudication, including the 
        Adjudication, for use on an Allotment.
    (g) Authority of the Navajo Nation.--
            (1) Use on navajo lands.--The Navajo Nation shall have the 
        authority to allocate, distribute, and lease the Navajo 
        Nation's Water Rights for use on Navajo Lands in accordance 
        with the Agreement, this Act, and applicable Federal law, 
        including the first section of the Act of August 9, 1955 (69 
        Stat. 539, chapter 615; 25 U.S.C. 415) (commonly known as the 
        ``Long-Term Leasing Act'').
            (2) Use off navajo lands.--
                    (A) In general.--The Navajo Nation may allocate, 
                distribute, and lease the Navajo Nation's Water Rights 
                for use off Navajo Lands in accordance with the 
                Agreement, this Act, and applicable Federal law, 
                subject to the approval of the Secretary.
                    (B) Maximum term.--The maximum term of any lease, 
                including all renewals, under this paragraph shall not 
                exceed 99 years.
    (h) Administration.--
            (1) No alienation.--The Navajo Nation shall not permanently 
        alienate any portion of the Navajo Nation's Water Rights.
            (2) Purchases or grants of land from indians.--An 
        authorization provided by this Act for the allocation, 
        distribution, leasing, or other arrangement entered into 
        pursuant to this Act shall be considered to satisfy any 
        requirement for authorization of the action required by Federal 
        law.
            (3) Prohibition on forfeiture.--The non-use of all or any 
        portion of the Navajo Nation's Water Rights by any water user 
        shall not result in the forfeiture, abandonment, 
        relinquishment, or other loss of all or any portion of the 
        Navajo Nation's Water Rights.
            (4) Forbearance by navajo nation for non-stock water rights 
        of certain allotments.--Forbearance by the Navajo Nation in 
        accordance with Article 17.13.4 of the Agreement--
                    (A) shall be considered non-use for purposes of 
                paragraph (3); and
                    (B) shall not result in the forfeiture, 
                abandonment, relinquishment, or other loss of any 
                portion of the Navajo Nation's Water Rights.

SEC. 6. NAVAJO NATION RIO SAN JOSE SETTLEMENT TRUST FUND.

    (a) Establishment.--The Secretary shall establish a trust fund, to 
be known as the ``Navajo Nation Rio San Jose Water Rights Settlement 
Trust Fund'', to be managed, invested, and distributed by the Secretary 
and to remain available until expended, withdrawn, or reverted to the 
general fund of the Treasury, consisting of the amounts deposited in 
the Navajo Trust Fund under subsection (c), together with any 
investment earnings, including interest, earned on those amounts, for 
the purpose of carrying out this Act.
    (b) Accounts.--The Secretary shall establish in the Navajo Trust 
Fund the following accounts:
            (1) The Navajo Nation Water Rights Settlement Account.
            (2) The Navajo Nation Operations and Maintenance Account.
    (c) Deposits.--The Secretary shall deposit in the Navajo Trust Fund 
the amounts made available pursuant to section 7(a).
    (d) Management and Interest.--
            (1) Management.--On receipt and deposit of funds into the 
        Navajo Trust Fund under subsection (c), the Secretary shall 
        manage, invest, and distribute all amounts in the Navajo Trust 
        Fund in a manner that is consistent with the investment 
        authority of the Secretary under--
                    (A) the first section of the Act of June 24, 1938 
                (25 U.S.C. 162a);
                    (B) the American Indian Trust Fund Management 
                Reform Act of 1994 (25 U.S.C. 4001 et seq.); and
                    (C) this subsection.
            (2) Investment earnings.--In addition to the deposits made 
        to the Navajo Trust Fund under subsection (c), any investment 
        earnings, including interest, earned on those amounts held in 
        the Navajo Trust Fund are authorized to be used in accordance 
        with subsections (f) and (h).
    (e) Availability of Amounts.--
            (1) In general.--Amounts appropriated to, and deposited in, 
        the Navajo Trust Fund, including any investment earnings, 
        including interest, earned on those amounts, shall be made 
        available to the Nation by the Secretary beginning on the 
        Enforceability Date, subject to the requirements of this 
        section, except for funds to be made available to the Nation 
        pursuant to paragraph (2).
            (2) Use of funds.--Notwithstanding paragraph (1), up to 
        $15,000,000 of the amounts deposited in the Navajo Nation Water 
        Rights Settlement Account, including any investment earnings, 
        including interest, earned on those amounts, shall be available 
        to the Nation on the date on which the amounts are deposited in 
        the Navajo Nation Water Rights Settlement Account for the 
        following uses:
                    (A) Feasibility studies, planning, engineering, 
                design, and related environmental, cultural, and 
                historical compliance, and obtaining rights-of-way or 
                permits for water supply infrastructure to serve Navajo 
                Nation needs consistent with subsection (h)(1)(B).
                    (B) Installing, on Navajo Lands, groundwater wells 
                and associated infrastructure to meet immediate 
                domestic, commercial, municipal and industrial water 
                needs, and associated environmental, cultural, and 
                historical compliance.
    (f) Withdrawals.--
            (1) Withdrawals under the american indian trust fund 
        management reform act of 1994.--
                    (A) In general.--The Navajo Nation may withdraw any 
                portion of the amounts in the Navajo Trust Fund on 
                approval by the Secretary of a Tribal management plan 
                submitted by the Nation in accordance with the American 
                Indian Trust Fund Management Reform Act of 1994 (25 
                U.S.C. 4001 et seq.).
                    (B) Requirements.--In addition to the requirements 
                under the American Indian Trust Fund Management Reform 
                Act of 1994 (25 U.S.C. 4001 et seq.), the Tribal 
                management plan under this paragraph shall require that 
                the Nation shall spend all amounts withdrawn from the 
                Navajo Trust Fund, and any investment earnings, 
                including interest, earned on those amounts, through 
                the investments under the Tribal management plan, in 
                accordance with this Act.
                    (C) Enforcement.--The Secretary may carry out such 
                judicial and administrative actions as the Secretary 
                determines to be necessary to enforce the Tribal 
                management plan under this paragraph to ensure that 
                amounts withdrawn by the Nation from the Navajo Trust 
                Fund under subparagraph (A) are used in accordance with 
                this Act.
            (2) Withdrawals under expenditure plan.--
                    (A) In general.--The Navajo Nation may submit to 
                the Secretary a request to withdraw funds from the 
                Navajo Trust Fund pursuant to an approved expenditure 
                plan.
                    (B) Requirements.--To be eligible to withdraw 
                amounts under an expenditure plan under subparagraph 
                (A), the Nation shall submit to the Secretary an 
                expenditure plan for any portion of the Navajo Trust 
                Fund that the Nation elects to withdraw pursuant to 
                that subparagraph, subject to the condition that the 
                amounts shall be used for the purposes described in 
                this Act.
                    (C) Inclusions.--An expenditure plan under this 
                paragraph shall include a description of the manner and 
                purpose for which the amounts proposed to be withdrawn 
                from the Navajo Trust Fund will be used by the Nation, 
                in accordance with this subsection and subsection (h).
                    (D) Approval.--The Secretary shall approve an 
                expenditure plan submitted under subparagraph (A) if 
                the Secretary determines that the plan--
                            (i) is reasonable; and
                            (ii) is consistent with, and will be used 
                        for, the purposes of this Act.
                    (E) Enforcement.--The Secretary may carry out such 
                judicial and administrative actions as the Secretary 
                determines to be necessary to enforce an expenditure 
                plan to ensure that amounts disbursed under this 
                paragraph are used in accordance with this Act.
    (g) Effect of Section.--Nothing in this section gives the Navajo 
Nation the right to judicial review of a determination of the Secretary 
relating to whether to approve a Tribal management plan under paragraph 
(1) of subsection (f) or an expenditure plan under paragraph (2) of 
that subsection except under subchapter II of chapter 5, and chapter 7, 
of title 5, United States Code (commonly known as the ``Administrative 
Procedure Act'').
    (h) Uses.--
            (1) Navajo nation water rights settlement account.--The 
        Navajo Nation Water Rights Settlement Account may only be used 
        for the following purposes:
                    (A) Acquiring water rights or water supply.
                    (B) Planning, permitting, designing, engineering, 
                constructing, reconstructing, replacing, 
                rehabilitating, operating, or repairing water 
                production, treatment, or delivery infrastructure, 
                including for domestic and municipal use, on-farm 
                improvements, or wastewater infrastructure.
                    (C) Navajo Nation's Water Rights management and 
                administration.
                    (D) Watershed protection and enhancement, support 
                of agriculture, water-related Navajo community welfare 
                and economic development, and costs relating to 
                implementation of the Agreement.
                    (E) Environmental compliance in the development and 
                construction of infrastructure under this Act.
            (2) Navajo nation operations and maintenance account.--The 
        Navajo Nation Water Infrastructure Operations and Maintenance 
        Account may only be used to pay costs for operation, 
        maintenance, and replacement of water infrastructure to serve 
        Navajo domestic, commercial, municipal, and industrial water 
        uses from any water source.
    (i) Liability.--The Secretary and the Secretary of the Treasury 
shall not be liable for the expenditure or investment of any amounts 
withdrawn from the Navajo Trust Fund by the Nation under paragraph (1) 
or (2) of subsection (f).
    (j) Expenditure Reports.--The Navajo Nation shall annually submit 
to the Secretary an expenditure report describing accomplishments and 
amounts spent from use of withdrawals under a Tribal management plan or 
an expenditure plan under paragraph (1) or (2) of subsection (f), as 
applicable.
    (k) No Per Capita Distributions.--No portion of the Navajo Trust 
Fund shall be distributed on a per capita basis to any member of Navajo 
Nation.
    (l) Title to Infrastructure.--Title to, control over, and operation 
of any project constructed using funds from the Navajo Trust Fund shall 
remain in the Navajo Nation.
    (m) Operation, Maintenance, and Replacement.--All operation, 
maintenance, and replacement costs of any project constructed using 
funds from the Navajo Trust Fund shall be the responsibility of the 
Nation.

SEC. 7. FUNDING.

    (a) Mandatory Appropriations.--Out of any money in the Treasury not 
otherwise appropriated, the Secretary of the Treasury shall transfer to 
the Secretary the following amounts for deposit in the following 
accounts:
            (1) The navajo nation water rights settlement account.--For 
        deposit in the Navajo Nation Water Rights Settlement Account 
        established under section 6(b)(1), $200,271,000, to remain 
        available until expended, withdrawn, or reverted to the general 
        fund of the Treasury.
            (2) The navajo nation operations and maintenance account.--
        For deposit in the Navajo Nation Operations and Maintenance 
        Account established under section 6(b)(2), $23,000,000, to 
        remain available until expended, withdrawn, or reverted to the 
        general fund of the Treasury.
    (b) Fluctuation in Costs.--
            (1) In general.--The amounts appropriated under subsection 
        (a) shall be increased or decreased, as appropriate, by such 
        amounts as may be justified by reason of ordinary fluctuations 
        in costs, as indicated by the Bureau of Reclamation 
        Construction Cost Index-Composite Trend.
            (2) Construction costs adjustment.--The amounts 
        appropriated under subsection (a) shall be adjusted to address 
        construction cost changes necessary to account for unforeseen 
        market volatility that may not otherwise be captured by 
        construction cost indices, as determined by the Secretary, 
        including repricing applicable to the types of construction and 
        current industry standards involved.
            (3) Repetition.--The adjustment process under this 
        subsection shall be repeated for each subsequent amount 
        appropriated until the applicable amount, as adjusted, has been 
        appropriated.
            (4) Period of indexing.--The period of indexing adjustment 
        under this subsection for any increment of funding shall start 
        on October 1, 2021, and end on the date on which funds are 
        deposited in the Navajo Trust Fund.
    (c) State Cost-Share.--Pursuant to the Agreement, the State shall 
contribute--
            (1) $3,000,000, as adjusted for inflation pursuant to the 
        Agreement, to the Bluewater Toltec Irrigation District and 
        Acequia Madre del Ojo del Gallo for purposes described in the 
        Agreement; and
            (2) if applicable, additional funding subject to the 
        provisions of Article 17.12.4 of the Agreement.

SEC. 8. ENFORCEABILITY DATE.

    The Enforceability Date shall be the date on which the Secretary 
publishes in the Federal Register a statement of findings that--
            (1) to the extent that the Agreement conflicts with this 
        Act, the Agreement has been amended to conform with this Act;
            (2) the Agreement, as amended, has been executed by all 
        parties to the Agreement, including the United States;
            (3) all of the amounts appropriated under section 7(a) have 
        been appropriated and deposited in the designated accounts of 
        the Navajo Trust Fund;
            (4) the State has--
                    (A) provided $3,000,000 of funding under section 
                7(c)(1) into the appropriate funding accounts or 
                entered into a funding agreement with the intended 
                beneficiaries for that funding; and
                    (B) enacted legislation to amend State law to 
                provide that a Navajo Nation Water Right may be leased 
                for a term not to exceed 99 years, including renewals;
            (5) the Decree Court has approved the Agreement and has 
        entered the Navajo Partial Final Judgment and Decree; and
            (6) the waivers and releases under section 9 have been 
        executed by the Navajo Nation and the Secretary.

SEC. 9. WAIVERS AND RELEASES OF CLAIMS.

    (a) Waivers and Releases of Claims by the Navajo Nation and United 
States as Trustee for the Nation.--Subject to the reservation of rights 
and retention of claims under subsection (d), as consideration for 
recognition of the Navajo Nation's Water Rights and other benefits 
described in the Agreement and this Act, the Navajo Nation, on behalf 
of the Nation and members of the Nation (other than members in their 
capacity as Allottees), and the United States, acting as trustee for 
the Nation and members of the Nation (other than members in their 
capacity as Allottees), shall execute a waiver and release of all 
claims for--
            (1) water rights within the Rio San Jose Stream System that 
        the Navajo Nation or the United States acting as trustee for 
        the Nation, asserted or could have asserted in any proceeding, 
        including the Adjudication, on or before the Enforceability 
        Date, except to the extent that such rights are recognized in 
        the Agreement and this Act; and
            (2) damages, losses, or injuries to water rights or claims 
        of interference with, diversion of, or taking of water rights 
        (including claims for injury to land resulting from such 
        damages, losses, injuries, interference with, diversion, or 
        taking of water rights) in the waters in the Rio San Jose 
        Stream System against any party to the Agreement, including the 
        members and parciantes of Signatory Acequias, that accrued at 
        any time up to and including the Enforceability Date.
    (b) Waivers and Releases of Claims by Navajo Nation Against United 
States.--Subject to the reservation of rights and retention of claims 
under subsection (d), the Navajo Nation, on behalf of the Nation 
(including in its capacity as an Allottee) and members of the Nation 
(other than members in their capacity as Allottees) shall execute a 
waiver and release of all claims against the United States (including 
any agency or employee of the United States) first arising before the 
Enforceability Date relating to--
            (1) water rights within the Rio San Jose Stream System that 
        the United States, acting as trustee for the Navajo Nation, 
        asserted or could have asserted in any proceeding, including 
        the Adjudication, except to the extent that such rights are 
        recognized as part of the Navajo Nation's Water Rights under 
        this Act;
            (2) foregone benefits from non-Navajo use of water, on and 
        off Navajo Lands, including water from all sources and for all 
        uses, within the Rio San Jose Stream System;
            (3) damage, loss, or injury to water, water rights, land, 
        or natural resources due to loss of water or water rights, 
        including damages, losses, or injuries to hunting, fishing, 
        gathering, or cultural rights due to loss of water or water 
        rights, claims relating to interference with, diversion of, or 
        taking of water, or claims relating to a failure to protect, 
        acquire, replace, or develop water, water rights, or water 
        infrastructure, within the Rio San Jose Stream System;
            (4) a failure to provide for operation, maintenance, or 
        deferred maintenance for any irrigation system or irrigation 
        project within the Rio San Jose Stream System;
            (5) a failure to establish or provide a municipal, rural, 
        or industrial water delivery system on Navajo Lands within the 
        Rio San Jose Stream System;
            (6) damage, loss, or injury to water, water rights, land, 
        or natural resources due to construction, operation, and 
        management of irrigation projects on Navajo Lands, including 
        damages, losses, or injuries to fish habitat, wildlife, and 
        wildlife habitat, within the Rio San Jose Stream System;
            (7) a failure to provide a dam safety improvement to a dam 
        on Navajo Lands within the Rio San Jose Stream System;
            (8) the litigation of claims relating to any water right of 
        the Nation within the Rio San Jose Stream System; and
            (9) the negotiation, execution, or adoption of the 
        Agreement, including attachments, and this Act.
    (c) Effective Date.--The waivers and releases described in 
subsections (a) and (b) shall take effect on the Enforceability Date.
    (d) Reservation of Rights and Retention of Claims.--Notwithstanding 
the waivers and releases under subsections (a) and (b), the Navajo 
Nation and the United States, acting as trustee for the Nation, shall 
retain all claims relating to--
            (1) the enforcement of, or claims accruing after the 
        Enforceability Date relating to water rights recognized under 
        the Agreement, this Act, or the Navajo Partial Final Judgment 
        and Decree entered in the Adjudication;
            (2) activities affecting the quality of water and the 
        environment, including claims under--
                    (A) the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.), including claims for damages to natural 
                resources;
                    (B) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.);
                    (C) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.) (commonly referred to as the 
                ``Clean Water Act''); and
                    (D) any regulations implementing the Acts described 
                in subparagraphs (A) through (C);
            (3) the right to use and protect water rights acquired 
        after the date of enactment of this Act;
            (4) damage, loss, or injury to land or natural resources 
        that is not due to loss of water or water rights, including 
        hunting, fishing, gathering, or cultural rights;
            (5) all claims for water rights, and claims for injury to 
        water rights, in basins other than the Rio San Jose Stream 
        System, subject to the Agreement with respect to the claims of 
        the Navajo Nation for water rights in the Rio Puerco Basin; and
            (6) all rights, remedies, privileges, immunities, powers, 
        and claims not specifically waived and released pursuant to 
        this Act or the Agreement.
    (e) Effect of Agreement and Act.--Nothing in the Agreement or this 
Act--
            (1) reduces or extends the sovereignty (including civil and 
        criminal jurisdiction) of any government entity, except as 
        provided in section 11;
            (2) affects the ability of the United States, as sovereign, 
        to carry out any activity authorized by law, including--
                    (A) the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.);
                    (B) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.);
                    (C) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.) (commonly referred to as the 
                ``Clean Water Act'');
                    (D) the Solid Waste Disposal Act (42 U.S.C. 6901 et 
                seq.); and
                    (E) any regulations implementing the Acts described 
                in subparagraphs (A) through (D);
            (3) affects the ability of the United States to act as 
        trustee for the Navajo Nation (consistent with this Act), any 
        other Indian Tribe, or an Allottee of any other Indian Tribe;
            (4) confers jurisdiction on any State court--
                    (A) to interpret Federal law relating to health, 
                safety, or the environment;
                    (B) to determine the duties of the United States or 
                any other party under Federal law regarding health, 
                safety, or the environment; or
                    (C) to conduct judicial review of any Federal 
                agency action; or
            (5) waives any claim of a member of the Navajo Nation in an 
        individual capacity that does not derive from a right of the 
        Navajo Nation.
    (f) Offset Relating to Rio Puerco.--The United States shall be 
entitled to offset $20,000,000 against--
            (1) any judgment against the United States for claims 
        relating to water rights in the Rio Puerco Basin, including 
        breach of trust and damage claims relating to water rights in 
        the Rio Puerco Basin, in a case brought by the Nation or any 
        user of the Navajo Nation's Water Rights; or
            (2) a Federal contribution to any future settlement of 
        water rights of the Navajo Nation in the Rio Puerco Basin.
    (g) Tolling of Claims.--
            (1) In general.--Each applicable period of limitation and 
        time-based equitable defense relating to a claim described in 
        this section shall be tolled for the period beginning on the 
        date of enactment of this Act and ending on the Enforceability 
        Date.
            (2) Effect of subsection.--Nothing in this subsection 
        revives any claim or tolls any period of limitation or time-
        based equitable defense that expired before the date of 
        enactment of this Act.
            (3) Limitation.--Nothing in this section precludes the 
        tolling of any period of limitation or any time-based equitable 
        defense under any other applicable law.
    (h) Expiration.--
            (1) In general.--This Act shall expire in any case in which 
        the Secretary fails to publish a statement of findings under 
        section 8 by not later than--
                    (A) July 1, 2030; or
                    (B) such alternative later date as is agreed to by 
                the Navajo Nation and the Secretary, after providing 
                reasonable notice to the State.
            (2) Consequences.--If this Act expires under paragraph 
        (1)--
                    (A) the waivers and releases under subsections (a) 
                and (b) shall--
                            (i) expire; and
                            (ii) have no further force or effect;
                    (B) the authorization, ratification, confirmation, 
                and execution of the Agreement under section 4 shall no 
                longer be effective;
                    (C) any action carried out by the Secretary, and 
                any contract or agreement entered into, pursuant to 
                this Act shall be void;
                    (D) any unexpended Federal funds appropriated or 
                made available to carry out the activities authorized 
                by this Act, together with any interest earned on those 
                funds, and any water rights or contracts to use water 
                and title to other property acquired or constructed 
                with Federal funds appropriated or made available to 
                carry out the activities authorized by this Act, shall 
                be returned to the Federal Government, unless otherwise 
                agreed to by Navajo Nation and the United States and 
                approved by Congress; and
                    (E) except for Federal funds used to acquire or 
                construct property that is returned to the Federal 
                Government under subparagraph (D), the United States 
                shall be entitled to offset any Federal funds made 
                available to carry out this Act that were expended or 
                withdrawn, or any funds made available to carry out 
                this Act from other Federal authorized sources, 
                together with any interest accrued on those funds, 
                against any claims against the United States--
                            (i) relating to water rights in the State 
                        asserted by--
                                    (I) the Nation or any user of the 
                                Navajo Nation's Water Rights; or
                                    (II) any other matter covered by 
                                subsection (b); or
                            (ii) in any future settlement of water 
                        rights of the Navajo Nation.

SEC. 10. SATISFACTION OF CLAIMS.

    The benefits provided under this Act shall be in complete 
replacement of, complete substitution for, and full satisfaction of any 
claim of the Navajo Nation against the United States that are waived 
and released by the Nation pursuant to section 9(b).

SEC. 11. CONSENT OF UNITED STATES TO JURISDICTION FOR JUDICIAL REVIEW 
              OF A NAVAJO NATION WATER USE PERMIT DECISION.

    (a) Consent.--On the Enforceability Date, the consent of the United 
States is hereby given, with the consent of the Navajo Nation under 
Article 17.14.4 of the Agreement, to jurisdiction in the District Court 
for the Thirteenth Judicial District of the State of New Mexico, and in 
the New Mexico Court of Appeals and the New Mexico Supreme Court on 
appeal therefrom in the same manner as provided under New Mexico law, 
over an action filed in such District Court by any party to a Navajo 
Nation Water Use Permit administrative proceeding under Article 17.10.4 
of the Agreement for the limited and sole purpose of judicial review of 
a Navajo Nation Water Use Permit decision under article 17.10.5 of the 
Agreement.
    (b) Limitation.--The consent of the United States for review of a 
Navajo Nation Water Use Permit is limited to judicial review, based on 
the record developed through the administrative process of the Navajo 
Nation, under a standard of judicial review limited to determining 
whether the Navajo Nation decision on the application for the Navajo 
Nation Water Use Permit--
            (1) is supported by substantial evidence;
            (2) is not arbitrary, capricious, or contrary to law;
            (3) is not in accordance with the Agreement or the Navajo 
        Partial Final Judgment and Decree; or
            (4) shows that the Navajo Nation acted fraudulently or 
        outside the scope of its authority.
    (c) Navajo Nation Water Code and Interpretation.--
            (1) In general.--Navajo Nation Water Code or Navajo Water 
        Law provisions that meet the requirements of Article 17.10 of 
        the Agreement shall be given full faith and credit in any 
        proceeding described in this section.
            (2) Provisions of the navajo nation water code.--To the 
        extent that a State court conducting judicial review under this 
        section must interpret provisions of Navajo Nation law that are 
        not express provisions of the Navajo Nation Water Code or 
        Navajo Nation water law, the State court shall certify the 
        question of interpretation to the Navajo Nation court.
            (3) No certification.--Any issues of interpretation of 
        standards in article 17.10.6 of the Agreement are not subject 
        to certification.
            (4) Limitation.--Nothing in this section limits the 
        jurisdiction of the Decree Court to interpret and enforce the 
        Agreement.

SEC. 12. MISCELLANEOUS PROVISIONS.

    (a) No Waiver of Sovereign Immunity by the United States.--Nothing 
in this Act waives the sovereign immunity of the United States.
    (b) Other Tribes Not Adversely Affected.--Nothing in this Act 
quantifies or diminishes any land or water right, or any claim or 
entitlement to land or water, of an Indian Tribe, band, Pueblo, or 
community other than the Navajo Nation.
    (c) Effect on Current Law.--Nothing in this Act affects any 
provision of law (including regulations) in effect on the day before 
the date of enactment of this Act with respect to pre-enforcement 
review of any Federal environmental enforcement action.
    (d) Conflict.--In the event of a conflict between the Agreement and 
this Act, this Act shall control.

SEC. 13. RELATION TO ALLOTTEES.

    (a) No Effect on Claims of Allottees.--Nothing in this Act or the 
Agreement shall affect the rights or claims of Allottees, or the United 
States, acting in its capacity as trustee for or on behalf of 
Allottees, for water rights or damages relating to land allotted by the 
United States to Allottees.
    (b) Relationship of Decree to Allottees.--
            (1) Separate adjudication.--Notwithstanding whether an 
        Allotment is patented pursuant to section 1 of the Act of 
        February 8, 1887 (commonly known as the ``Indian General 
        Allotment Act'') (24 Stat. 388, chapter 119; 25 U.S.C. 331) (as 
        in effect on the day before the date of enactment of the Indian 
        Land Consolidation Act Amendments of 2000 (Public Law 106-462; 
        114 Stat. 1991)) or section 4 of that Act (24 Stat. 389, 
        chapter 119; 25 U.S.C. 334), as determined by the Secretary, 
        when adjudicated--
                    (A) water rights for Allotments shall be separate 
                from the Navajo Nation's Water Rights; and
                    (B) no water rights for Allotments shall be 
                included in the Navajo Partial Final Judgment and 
                Decree.
            (2) Allotment water rights.--The Allotment water rights 
        adjudicated separately pursuant to paragraph (1) shall not be 
        subject to the restrictions or conditions that apply to the use 
        of the Navajo Nation's Water Rights, subject to the condition 
        that if an Allotment governed by the Act of February 8, 1887 
        (commonly known as the ``Indian General Allotment Act'') (24 
        Stat. 388, chapter 119) becomes Navajo Nation Lands, the water 
        rights associated with that Allotment shall be subject to the 
        restrictions and conditions on the Navajo Nation's Water Rights 
        set forth in this Act and the Agreement.
            (3) Allottee water rights to be adjudicated.--Allottees, or 
        the United States, acting in its capacity as trustee for 
        Allottees, may make water rights claims, and those claims may 
        be adjudicated in the Rio San Jose Stream System or the Rio 
        Puerco Basin.

SEC. 14. EXPANSION OF NAVAJO-GALLUP WATER SUPPLY PROJECT SERVICE AREA.

    (a) Definition of Project.--In this section, the term ``Project'' 
means the Navajo-Gallup Water Supply Project authorized under section 
10602 of the Northwestern New Mexico Rural Water Projects Act (Public 
Law 111-11; 123 Stat. 1379).
    (b) Expansion of Project Service Area Authorized.--The Nation may 
expand the service area for the Project in order to deliver water 
supply from the Project to communities of the Nation within the Rio San 
Jose Basin in the State.
    (c) Approval of Final Design for Expansion.--If water will be 
supplied from facilities of the Project to the Rio San Jose Basin at a 
time when the Bureau of Reclamation still holds title to those 
facilities, the Navajo Nation shall--
            (1) obtain approval, in writing, from the Commissioner of 
        Reclamation for the final design of the connection and related 
        facilities needed to connect the extension into the Rio San 
        Jose area from those facilities; and
            (2) coordinate construction of the connection and related 
        facilities with the Commissioner of Reclamation.

SEC. 15. ANTIDEFICIENCY.

    The United States shall not be liable for any failure to carry out 
any obligation or activity authorized by this Act, including any 
obligation or activity under the Agreement, if adequate appropriations 
are not provided expressly by Congress to carry out the purposes of 
this Act.
                                                       Calendar No. 665

118th CONGRESS

  2d Session

                                S. 4998

                          [Report No. 118-263]

_______________________________________________________________________

                                 A BILL

 To approve the settlement of water rights claims of the Navajo Nation 
 in the Rio San Jose Stream System in the State of New Mexico, and for 
                            other purposes.

_______________________________________________________________________

                            December 4, 2024

                       Reported without amendment
```