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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1146 Referred in House (RFH)]

103d CONGRESS
  2d Session
                                S. 1146

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 1994

             Referred to the Committee on Natural Resources

_______________________________________________________________________

                                 AN ACT

 
    To provide for the settlement of the water rights claims of the 
Yavapai-Prescott Indian Tribe in Yavapai County, Arizona, 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.

    This Act may be cited as the ``Yavapai-Prescott Indian Tribe Water 
Rights Settlement Act of 1994''.

SEC. 2. CONGRESSIONAL FINDINGS AND DECLARATIONS.

    (a) Findings.--The Congress finds that--
            (1) it is the policy of the United States, in fulfillment 
        of its trust responsibility to the Indian tribes, to promote 
        Indian self-determination and economic self-sufficiency, and to 
        settle, wherever possible, the water rights claims of Indian 
        tribes without lengthy and costly litigation;
            (2) meaningful Indian self-determination and economic self-
        sufficiency depend on the development of viable Indian 
        reservation economies;
            (3) quantification of rights to water and development of 
        facilities needed to utilize tribal water supplies effectively 
        is essential to the development of viable Indian reservation 
        economies, particularly in arid western States;
            (4) on June 7, 1935, and by actions subsequent thereto, the 
        United States established a reservation for the Yavapai-
        Prescott Indian Tribe in Arizona adjacent to the city of 
        Prescott;
            (5) proceedings to determine the full extent of Yavapai-
        Prescott Tribe's water rights are currently pending before the 
        Superior Court of the State of Arizona in and for Maricopa 
        County, as part of the general adjudication of the Gila River 
        system and source;
            (6) recognizing that final resolution of the general 
        adjudication will take many years and entail great expense to 
        all parties, prolong uncertainty as to the full extent of the 
        Yavapai-Prescott Tribe's entitlement to water and the 
        availability of water supplies to fulfill that entitlement, and 
        impair orderly planning and development by the Tribe and the 
        city of Prescott; the Tribe, the city of Prescott, the Chino 
        Valley Irrigation District, the State of Arizona and the United 
        States have sought to settle all claims to water between and 
        among them;
            (7) representatives of the Yavapai-Prescott Tribe, the city 
        of Prescott, the Chino Valley Irrigation District, the State of 
        Arizona and the United States have negotiated a Settlement 
        Agreement to resolve all water rights claims between and among 
        them, and to provide the Tribe with long term, reliable water 
        supplies for the orderly development and maintenance of the 
        Tribe's reservation;
            (8) pursuant to the Settlement Agreement and the Water 
        Service Agreement, the quantity of water made available to the 
        Yavapai-Prescott Tribe by the city of Prescott and the Chino 
        Valley Irrigation District will be secured, such Agreements 
        will be continued in perpetuity, and the Tribe's continued on-
        reservation use of water for municipal and industrial, 
        recreational and agricultural purposes will be provided for;
            (9) to advance the goals of Federal Indian policy and to 
        fulfill the trust responsibility of the United States to the 
        Tribe, it is appropriate that the United States participate in 
        the implementation of the Settlement Agreement and assist in 
        firming up the long-term water supplies of the city of Prescott 
        and the Yavapai-Prescott Tribe so as to enable the Tribe to 
        utilize fully its water entitlements in developing a diverse, 
        efficient reservation economy; and
            (10) the assignment of the CAP contract of the Yavapai-
        Prescott Tribe and the CAP subcontract of the city of Prescott 
        is a cost-effective means to ensure reliable, long-term water 
        supplies for the Yavapai-Prescott Tribe and to promote 
        efficient, environmentally sound use of available water 
        supplies in the Verde River basin.
    (b) Declaration of Purposes.--The Congress declares that the 
purposes of this Act are--
            (1) to approve, ratify and confirm the Settlement Agreement 
        among the Yavapai-Prescott Tribe, the city of Prescott, the 
        Chino Valley Irrigation District, the State of Arizona and the 
        United States;
            (2) to authorize and direct the Secretary of the Interior 
        to execute and perform the Settlement Agreement;
            (3) to authorize the actions and appropriations necessary 
        for the United States to fulfill its legal and trust 
        obligations to the Yavapai-Prescott Tribe as provided in the 
        Settlement Agreement and this Act;
            (4) to require that expenditures of funds obtained through 
        the assignment of CAP contract entitlements by the Yavapai-
        Prescott Tribe and Prescott for the acquisition or development 
        of replacement water supplies in the Verde River basin shall 
        not be inconsistent with the goals of the Prescott Active 
        Management Area, preservation of riparian habitat, flows and 
        biota of the Verde River and its tributaries; and
            (5) to repeal section 406(k) of Public Law 101-628 which 
        authorizes $30,000,000 in appropriations for the acquisition of 
        land and water resources in the Verde River basin and for the 
        development thereof as an alternative source of water for the 
        Fort McDowell Indian Community.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``CAP'' means the Central Arizona Project, a 
        reclamation project authorized under title III of the Colorado 
        River Basin Project Act of 1968 (43 U.S.C. 1521 et seq.).
            (2) The term ``CAWCD'' means the Central Arizona Water 
        Conservation District, organized under the laws of the State of 
        Arizona, which is the contractor under a contract with the 
        United States, dated December 1, 1988, for the delivery of 
        water and repayment of costs of the Central Arizona Project.
            (3) The term ``CVID'' means the Chino Valley Irrigation 
        District, an irrigation district organized under the laws of 
        the State of Arizona.
            (4) The term ``Prescott AMA'' means the Active Management 
        Area, established pursuant to Arizona law and encompassing the 
        Prescott ground water basin, wherein the primary goal is to 
        achieve balance between annual ground water withdrawals and 
        natural and artificial recharge by the year 2025.
            (5) The term ``Prescott'' means the city of Prescott, an 
        Arizona municipal corporation.
            (6) The term ``Reservation'' means the reservation 
        established by the Act of June 7, 1935 (49 Stat. 332) and the 
        Act of May 18, 1956 (70 Stat. 157) for the Yavapai-Prescott 
        Tribe of Indians.
            (7) The term ``Secretary'' means the Secretary of the 
        United States Department of the Interior.
            (8) The term ``Settlement Agreement'' means that agreement 
        entered into by the city of Prescott, the Chino Valley 
        Irrigation District, the Yavapai-Prescott Indian Tribe, the 
        State of Arizona, and the United States, providing for the 
        settlement of all water claims between and among them.
            (9) The term ``Tribe'' means the Yavapai-Prescott Indian 
        Tribe, a tribe of Yavapai Indians duly recognized by the 
        Secretary.
            (10) The term ``Water Service Agreement'' means that 
        agreement between the Yavapai-Prescott Indian Tribe and the 
        city of Prescott, as approved by the Secretary, providing for 
        water, sewer, and effluent service from the city of Prescott to 
        the Yavapai-Prescott Tribe.

SEC. 4. RATIFICATION OF SETTLEMENT AGREEMENT.

    (a) Approval of Settlement Agreement.--To the extent the Settlement 
Agreement does not conflict with the provisions of this Act, such 
Agreement is approved, ratified and confirmed. The Secretary shall 
execute and perform such Agreement, and shall execute any amendments to 
the Agreement and perform any action required by any amendments to the 
Agreement which may be mutually agreed upon by the parties.
    (b) Perpetuity.--The Settlement Agreement and Water Service 
Agreement shall include provisions which will ensure that the benefits 
to the Tribe thereunder shall be secure in perpetuity. Notwithstanding 
the provisions of section 2103 of the Revised Statutes of the United 
States (25 U.S.C. 81) relating to the term of the Agreement, the 
Secretary is authorized and directed to approve the Water Service 
Agreement with a perpetual term.

SEC. 5. ASSIGNMENT OF CAP WATER.

    The Secretary is authorized and directed to arrange for the 
assignment of, or to purchase, the CAP contract of the Tribe and the 
CAP subcontract of the city of Prescott to provide funds for deposit 
into the Verde River Basin Water Fund established pursuant to section 
6.

SEC. 6. REPLACEMENT WATER FUND; CONTRACTS.

    (a) Fund.--The Secretary shall establish a fund to be known as the 
``Verde River Basin Water Fund'' (hereinafter called the ``Fund'') to 
provide replacement water for the CAP water relinquished by the Tribe 
and by Prescott. Moneys in the Fund shall be available without fiscal 
year limitations.
    (b) Content of Fund.--The Fund shall consist of moneys obtained 
through the assignment or purchase of the contract and subcontract 
referenced in section 5, appropriations as authorized in section 9, and 
any moneys returned to the Fund pursuant to subsection (d) of this 
section.
    (c) Payments From Fund.--The Secretary shall, subsequent to the 
publication of a statement of findings as provided in section 12(a), 
promptly cause to be paid from the Fund to the Tribe the amounts 
deposited to the Fund from the assignment or purchase of the Tribe's 
CAP contract, and, to the city of Prescott, the amounts deposited to 
the Fund from the assignment or purchase of the city's CAP subcontract.
    (d) Contracts.--The Secretary shall require, as a condition 
precedent to the payment of any moneys pursuant to subsection (c), that 
the Tribe and Prescott agree, by contract with the Secretary, to 
establish trust accounts into which the payments would be deposited and 
administered, to use such moneys consistent with the purpose and intent 
of section 7, to provide for audits of such accounts, and for the 
repayment to the Fund, with interest, any amount determined by the 
Secretary not to have been used within the purpose and intent of 
section 7.

SEC. 7. EXPENDITURES OF FUNDS.

    (a) By the City.--All moneys paid to Prescott for relinquishing its 
CAP subcontract and deposited into a trust account pursuant to section 
6(d), shall be used for the purposes of defraying expenses associated 
with the investigation, acquisition or development of alternative 
sources of water to replace the CAP water relinquished under this Act. 
Alternative sources shall be understood to include, but not be limited 
to, retirement of agricultural land and acquisition of associated water 
rights, development of ground water resources outside the Prescott 
Active Management Area established pursuant to the laws of the State of 
Arizona, and artificial recharge; except that none of the moneys paid 
to Prescott may be used for construction or renovation of the city's 
existing waterworks or water delivery system.
    (b) By the Tribe.--All funds paid to the Tribe for relinquishing 
its CAP contract and deposited into a trust account pursuant to section 
6(d), shall be used to defray its water service costs under the Water 
Service Agreement or to develop and maintain facilities for on-
reservation water or effluent use.
    (c) No Per Capita Payments.--No amount of the Tribe's portion of 
the Fund may be used to make per capita payments to any member of the 
Tribe, nor may any amount of any payment made pursuant to section 6(c) 
be distributed as a dividend or per capita payment to any constituent, 
member, shareholder, director or employee of Prescott.
    (d) Disclaimer.--Effective with the payment of funds pursuant to 
section 6(c), the United States shall not be liable for any claim or 
cause of action arising from the use of such funds by the Tribe or by 
Prescott.

SEC. 8. ENVIRONMENTAL COMPLIANCE.

    The Secretary, the Tribe and Prescott shall comply with all 
applicable Federal environmental and State environmental and water laws 
in developing alternative water sources pursuant to section 7(a). 
Development of such alternative water sources shall not be inconsistent 
with the goals of the Prescott Active Management Area, preservation of 
the riparian habitat, flows and biota of the Verde River and its 
tributaries.

SEC. 9. APPROPRIATIONS AUTHORIZATION AND REPEAL.

    (a) Authorization.--There are authorized to be appropriated to the 
Fund established pursuant to section 6(a):
            (1) Such sums as may be necessary, but not to exceed 
        $200,000, to the Secretary for the Tribe's costs associated 
        with judicial confirmation of the settlement.
            (2) Such sums as may be necessary to establish, maintain 
        and operate the gauging station required under section 11(e).
    (b) State Contribution.--The State of Arizona shall contribute 
$200,000 to the trust account established by the Tribe pursuant to the 
Settlement Agreement and section 6(d) for uses consistent with section 
7(b).
    (c) Repeal.--Subsection 406(k) of the Act of November 28, 1990 
(Public Law 101-628; 104 Stat. 4487) is repealed.

SEC. 10. SATISFACTION OF CLAIMS.

    (a) Waiver.--The benefits realized by the Tribe or any of its 
members under the Settlement Agreement and this Act shall constitute 
full and complete satisfaction of all claims by the Tribe and all 
members' claims for water rights or injuries to water rights under 
Federal and State laws (including claims for water rights in ground 
water, surface water and effluent) from time immemorial to the 
effective date of this Act, and for any and all future claims of water 
rights (including claims for water rights in ground water, surface 
water, and effluent) from and after the effective date of this Act. 
Nothing in this Act shall be deemed to recognize or establish any right 
of a member of the Tribe to water on the Tribe's reservation.
    (b) Waiver and Release.--The Tribe, on behalf of itself and its 
members, and the Secretary on behalf of the United States, are 
authorized and required, as a condition to the implementation of this 
Act, to execute a waiver and release, except as provided in subsection 
(d) and the Settlement Agreement, of all claims of water rights or 
injuries to water rights (including water rights in ground water, 
surface water and effluent), from and after the effective date of this 
Act, which the Tribe and its members may have, against the United 
States, the State of Arizona or any agency or political subdivision 
thereof, or any other person, corporation, or municipal corporation, 
arising under the laws of the United States or the State of Arizona.
    (c) Waiver by United States.--Except as provided in subsection (d) 
and the Settlement Agreement, the United States, in its own right or on 
behalf of the Tribe, shall not assert any claim against the State of 
Arizona or any political subdivision thereof, or against any other 
person, corporation, or municipal corporation, arising under the laws 
of the United States or the State of Arizona based upon water rights or 
injuries to water rights of the Tribe and its members or based upon 
water rights or injuries to water rights held by the United States on 
behalf of the Tribe and its members.
    (d) Rights Retained.--In the event the waivers of claims authorized 
in subsection (b) of this section do not become effective pursuant to 
section 12(a), the Tribe, and the United States on behalf of the Tribe, 
shall retain the right to assert past and future water rights claims as 
to all reservation lands.
    (e) Jurisdiction.--The United States District Court for the 
District of Arizona shall have original jurisdiction of all actions 
arising under this Act, the Settlement Agreement and the Water Service 
Agreement, including review pursuant to title 9, United States Code, of 
any arbitration and award under the Water Service Agreement.
    (f) Claims.--Nothing in this Act shall be deemed to prohibit the 
Tribe, or the United States on behalf of the Tribe, from asserting or 
maintaining any claims for the breach or enforcement of the Settlement 
Agreement or the Water Service Agreement.
    (g) Disclaimer.--Nothing in this Act shall affect the water rights 
or claims related to any trust allotment located outside the exterior 
boundaries of the reservation of any member of the Tribe.
    (h) Full Satisfaction of Claims.--Payments made to Prescott under 
this Act shall be in full satisfaction for any claim that Prescott 
might have against the Secretary or the United States related to the 
allocation, reallocation, relinquishment or delivery of CAP water.

SEC. 11. MISCELLANEOUS PROVISIONS.

    (a) Joining of Parties.--In the event any party to the Settlement 
Agreement should file a lawsuit in any United States district court 
relating only and directly to the interpretation or enforcement of the 
Settlement Agreement or this Act, naming the United States of America 
or the Tribe as parties, authorization is hereby granted to join the 
United States of America or the Tribe, or both, in any such litigation, 
and any claim by the United States of America or the Tribe to sovereign 
immunity from such suit is hereby waived. In the event Prescott submits 
a dispute under the Water Service Agreement to arbitration or seeks 
review by the United States District Court for the District of Arizona 
of an arbitration award under the Water Service Agreement, any claim by 
the Tribe to sovereign immunity from such arbitration or review is 
hereby waived.
    (b) No Reimbursement.--The United States of America shall make no 
claims for reimbursement of costs arising out of the implementation of 
the Settlement Agreement or this Act against any lands within the 
Yavapai-Prescott Indian Reservation, and no assessment shall be made 
with regard to such costs against such lands.
    (c) Water Management.--The Tribe shall establish a ground water 
management plan for the Reservation which, except to be consistent with 
the Water Service Agreement, the Settlement Agreement and this Act, 
will be compatible with the ground water management plan in effect for 
the Prescott Active Management Area and will include an annual 
information exchange with the Arizona Department of Water Resources. In 
establishing a ground water management plan pursuant to this section, 
the Tribe may enter into a Memorandum of Understanding with the Arizona 
Department of Water Resources for consultation. Notwithstanding any 
other law, the Tribe may establish a tribal water code, consistent with 
the above-described water management plan, under which the Tribe will 
manage, regulate, and control the water resources granted it in the 
Settlement Act, the Settlement Agreement, and the Water Service 
Agreement, except that such management, regulation and control shall 
not authorize any action inconsistent with the trust ownership of the 
Tribe's water resources.
    (d) Gauging Station.--The Secretary, acting through the Geological 
Survey, shall establish, maintain and operate a gauging station at the 
State Highway 89 bridge across Granite Creek adjacent to the 
reservation to assist the Tribe and the CVID in allocating the surface 
flows from Granite Creek as provided in the Settlement Agreement.

SEC. 12. EFFECTIVE DATE.

    (a) Waivers and Releases.--The waivers and releases required by 
section 10(b) of this Act shall become effective as of the date the 
Secretary causes to be published in the Federal Register a statement of 
findings that--
            (1)(A) the Secretary has determined that an acceptable 
        party, or parties, have executed contracts for the assignments 
        of the Tribe's CAP contract and the city of Prescott's CAP 
        subcontract, and the proceeds from the assignments have been 
        deposited into the Fund as provided in section 6(d); or,
            (B) the Secretary has executed contracts for the 
        acquisition of the Tribe's CAP contract and the city of 
        Prescott's CAP subcontract as provided in section 6(d);
            (2) the stipulation which is attached to the Settlement 
        Agreement as exhibit 9.5, has been approved in substantially 
        the form of such exhibit no later than December 31, 1994;
            (3) the Settlement Agreement has been modified to the 
        extent it is in conflict with this Act and has been executed by 
        the Secretary; and
            (4) the State of Arizona has appropriated and deposited 
        into the Tribe's trust account $200,000 as required by the 
        Settlement Agreement.
    (b) Deadline.--If the actions described in paragraphs (1), (2), 
(3), and (4) of subsection (a) have not occurred by December 31, 1995, 
any contract between Prescott and the United States entered into 
pursuant to section 6(d) shall not thereafter be effective, and any 
funds appropriated by the State of Arizona pursuant to the Settlement 
Agreement shall be returned by the Tribe to the State of Arizona.

SEC. 13. OTHER CLAIMS.

    (a) Other Tribes.--Nothing in the Settlement Agreement or this Act 
shall be construed in any way to quantify or otherwise adversely affect 
the land and water rights, claims or entitlements to water of any 
Arizona Indian tribe, band or community, other than the Tribe.
    (b) Federal Agencies.--Nothing in this Act shall be construed to 
affect the water rights or the water rights claims of any Federal 
agency, other than the Bureau of Indian Affairs on behalf of the Tribe.

            Passed the Senate July 26 (legislative day, July 20), 1994.

            Attest:

                                                MARTHA S. POPE,

                                                             Secretary.

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