H. R. 146—380 
(24) PROJECT
PARTICIPANTS.—The term ‘‘Project Partici-
pants’’ means the City, the Nation, and the Jicarilla Apache 
Nation. 
(25) SAN
JUAN
RIVER
BASIN
RECOVERY
IMPLEMENTATION 
PROGRAM.—The term ‘‘San Juan River Basin Recovery 
Implementation Program’’ means the intergovernmental pro-
gram established pursuant to the cooperative agreement dated 
October 21, 1992 (including any amendments to the program). 
(26) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of the Interior, acting through the Commissioner of 
Reclamation or any other designee. 
(27) STREAM ADJUDICATION.—The term ‘‘stream adjudica-
tion’’ means the general stream adjudication that is the subject 
of New Mexico v. United States, et al., No. 75–185 (11th Jud. 
Dist., San Juan County, New Mexico) (involving claims to 
waters of the San Juan River and the tributaries of that river). 
(28) SUPPLEMENTAL
PARTIAL
FINAL
DECREE.—The term 
‘‘Supplemental Partial Final Decree’’ means a final and binding 
judgment and decree entered by a court in the stream adjudica-
tion, setting forth certain water rights of the Nation, as set 
forth in Appendix 2 of the Agreement. 
(29) TRUST
FUND.—The term ‘‘Trust Fund’’ means the 
Navajo Nation Water Resources Development Trust Fund 
established by section 10702(a). 
(30) UPPER BASIN.—The term ‘‘Upper Basin’’ has the same 
meaning given the term in Article II(f) of the Colorado River 
Compact. 
SEC. 10303. COMPLIANCE WITH ENVIRONMENTAL LAWS. 
(a) EFFECT OF EXECUTION OF AGREEMENT.—The execution of 
the Agreement under section 10701(a)(2) shall not constitute a 
major Federal action under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.). 
(b) COMPLIANCE WITH ENVIRONMENTAL LAWS.—In carrying out 
this subtitle, the Secretary shall comply with each law of the 
Federal Government relating to the protection of the environment, 
including— 
(1) the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.); and 
(2) the Endangered Species Act of 1973 (16 U.S.C. 1531 
et seq.). 
SEC. 10304. NO REALLOCATION OF COSTS. 
(a) EFFECT OF ACT.—Notwithstanding any other provision of 
law, the Secretary shall not reallocate or reassign any costs of 
projects that have been authorized under the Act of April 11, 
1956 (commonly known as the ‘‘Colorado River Storage Project 
Act’’) (43 U.S.C. 620 et seq.), as of the date of enactment of this 
Act because of— 
(1) the authorization of the Navajo-Gallup Water Supply 
Project under this subtitle; or 
(2) the changes in the uses of the water diverted by the 
Navajo Indian Irrigation Project or the waters stored in the 
Navajo Reservoir authorized under this subtitle. 
(b) USE
OF POWER REVENUES.—Notwithstanding any other 
provision of law, no power revenues under the Act of April 11, 
1956 (commonly known as the ‘‘Colorado River Storage Project 
Act’’) (43 U.S.C. 620 et seq.), shall be used to pay or reimburse
H. R. 146—381 
any costs of the Navajo Indian Irrigation Project or Navajo-Gallup 
Water Supply Project. 
SEC. 10305. INTEREST RATE. 
Notwithstanding any other provision of law, the interest rate 
applicable to any repayment contract entered into under section 
10604 shall be equal to the discount rate for Federal water resources 
planning, as determined by the Secretary. 
PART I—AMENDMENTS TO THE COLORADO 
RIVER STORAGE PROJECT ACT AND PUBLIC 
LAW 87–483 
SEC. 10401. AMENDMENTS TO THE COLORADO RIVER STORAGE 
PROJECT ACT. 
(a) PARTICIPATING PROJECTS.—Paragraph (2) of the first section 
of the Act of April 11, 1956 (commonly known as the ‘‘Colorado 
River Storage Project Act’’) (43 U.S.C. 620(2)) is amended by 
inserting ‘‘the Navajo-Gallup Water Supply Project,’’ after ‘‘Fruit-
land Mesa,’’. 
(b) NAVAJO RESERVOIR WATER BANK.—The Act of April 11, 
1956 (commonly known as the ‘‘Colorado River Storage Project 
Act’’) is amended— 
(1) by redesignating section 16 (43 U.S.C. 620o) as section 
17; and 
(2) by inserting after section 15 (43 U.S.C. 620n) the fol-
lowing: 
‘‘SEC. 16. (a) The Secretary of the Interior may create and 
operate within the available capacity of Navajo Reservoir a top 
water bank. 
‘‘(b) Water made available for the top water bank in accordance 
with subsections (c) and (d) shall not be subject to section 11 
of Public Law 87–483 (76 Stat. 99). 
‘‘(c) The top water bank authorized under subsection (a) shall 
be operated in a manner that— 
‘‘(1) is consistent with applicable law, except that, notwith-
standing any other provision of law, water for purposes other 
than irrigation may be stored in the Navajo Reservoir pursuant 
to the rules governing the top water bank established under 
this section; and 
‘‘(2) does not impair the ability of the Secretary of the 
Interior to deliver water under contracts entered into under— 
‘‘(A) Public Law 87–483 (76 Stat. 96); and 
‘‘(B) New Mexico State Engineer File Nos. 2847, 2848, 
2849, and 2917. 
‘‘(d)(1) The Secretary of the Interior, in cooperation with the 
State of New Mexico (acting through the Interstate Stream Commis-
sion), shall develop any terms and procedures for the storage, 
accounting, and release of water in the top water bank that are 
necessary to comply with subsection (c). 
‘‘(2) The terms and procedures developed under paragraph (1) 
shall include provisions requiring that— 
‘‘(A) the storage of banked water shall be subject to 
approval under State law by the New Mexico State Engineer 
to ensure that impairment of any existing water right does
H. R. 146—382 
not occur, including storage of water under New Mexico State 
Engineer File No. 2849; 
‘‘(B) water in the top water bank be subject to evaporation 
and other losses during storage; 
‘‘(C) water in the top water bank be released for delivery 
to the owner or assigns of the banked water on request of 
the owner, subject to reasonable scheduling requirements for 
making the release; 
‘‘(D) water in the top water bank be the first water spilled 
or released for flood control purposes in anticipation of a spill, 
on the condition that top water bank water shall not be released 
or included for purposes of calculating whether a release should 
occur for purposes of satisfying the flow recommendations of 
the San Juan River Basin Recovery Implementation Program; 
and 
‘‘(E) water eligible for banking in the top water bank shall 
be water that otherwise would have been diverted and bene-
ficially used in New Mexico that year. 
‘‘(e) The Secretary of the Interior may charge fees to water 
users that use the top water bank in amounts sufficient to cover 
the costs incurred by the United States in administering the water 
bank.’’. 
SEC. 10402. AMENDMENTS TO PUBLIC LAW 87–483. 
(a) NAVAJO INDIAN IRRIGATION PROJECT.—Public Law 87–483 
(76 Stat. 96) is amended by striking section 2 and inserting the 
following: 
‘‘SEC. 2. (a) In accordance with the Act of April 11, 1956 
(commonly known as the ‘Colorado River Storage Project Act’) (43 
U.S.C. 620 et seq.), the Secretary of the Interior is authorized 
to construct, operate, and maintain the Navajo Indian Irrigation 
Project to provide irrigation water to a service area of not more 
than 110,630 acres of land. 
‘‘(b)(1) Subject to paragraph (2), the average annual diversion 
by the Navajo Indian Irrigation Project from the Navajo Reservoir 
over any consecutive 10-year period shall be the lesser of— 
‘‘(A) 508,000 acre-feet per year; or 
‘‘(B) the quantity of water necessary to supply an average 
depletion of 270,000 acre-feet per year. 
‘‘(2) The quantity of water diverted for any 1 year shall not 
exceed the average annual diversion determined under paragraph 
(1) by more than 15 percent. 
‘‘(c) In addition to being used for irrigation, the water diverted 
by the Navajo Indian Irrigation Project under subsection (b) may 
be used within the area served by Navajo Indian Irrigation Project 
facilities for the following purposes: 
‘‘(1) Aquaculture purposes, including the rearing of fish 
in support of the San Juan River Basin Recovery Implementa-
tion Program authorized by Public Law 106–392 (114 Stat. 
1602). 
‘‘(2) Domestic, industrial, or commercial purposes relating 
to agricultural production and processing. 
‘‘(3)(A) The generation of hydroelectric power as an incident 
to the diversion of water by the Navajo Indian Irrigation Project 
for authorized purposes. 
‘‘(B) Notwithstanding any other provision of law—
H. R. 146—383 
‘‘(i) any hydroelectric power generated under this para-
graph shall be used or marketed by the Navajo Nation; 
‘‘(ii) the Navajo Nation shall retain any revenues from 
the sale of the hydroelectric power; and 
‘‘(iii) the United States shall have no trust obligation 
to monitor, administer, or account for the revenues received 
by the Navajo Nation, or the expenditure of the revenues. 
‘‘(4) The implementation of the alternate water source 
provisions described in subparagraph 9.2 of the agreement 
executed under section 10701(a)(2) of the Northwestern New 
Mexico Rural Water Projects Act. 
‘‘(d) The Navajo Indian Irrigation Project water diverted under 
subsection (b) may be transferred to areas located within or outside 
the area served by Navajo Indian Irrigation Project facilities, and 
within or outside the boundaries of the Navajo Nation, for any 
beneficial use in accordance with— 
‘‘(1) the agreement executed under section 10701(a)(2) of 
the Northwestern New Mexico Rural Water Projects Act; 
‘‘(2) the contract executed under section 10604(a)(2)(B) of 
that Act; and 
‘‘(3) any other applicable law. 
‘‘(e) The Secretary may use the capacity of the Navajo Indian 
Irrigation Project works to convey water supplies for— 
‘‘(1) the Navajo-Gallup Water Supply Project under section 
10602 of the Northwestern New Mexico Rural Water Projects 
Act; or 
‘‘(2) other nonirrigation purposes authorized under sub-
section (c) or (d). 
‘‘(f)(1) Repayment of the costs of construction of the project 
(as authorized in subsection (a)) shall be in accordance with the 
Act of April 11, 1956 (commonly known as the ‘Colorado River 
Storage Project Act’) (43 U.S.C. 620 et seq.), including section 4(d) 
of that Act. 
‘‘(2) The Secretary shall not reallocate, or require repayment 
of, construction costs of the Navajo Indian Irrigation Project because 
of the conveyance of water supplies for nonirrigation purposes under 
subsection (e).’’. 
(b) RUNOFF ABOVE NAVAJO DAM.—Section 11 of Public Law 
87–483 (76 Stat. 100) is amended by adding at the end the following: 
‘‘(d)(1) For purposes of implementing in a year of prospective 
shortage the water allocation procedures established by subsection 
(a), the Secretary of the Interior shall determine the quantity of 
any shortages and the appropriate apportionment of water using 
the normal diversion requirements on the flow of the San Juan 
River originating above Navajo Dam based on the following criteria: 
‘‘(A) The quantity of diversion or water delivery for the 
current year anticipated to be necessary to irrigate land in 
accordance with cropping plans prepared by contractors. 
‘‘(B) The annual diversion or water delivery demands for 
the current year anticipated for non-irrigation uses under water 
delivery contracts, including contracts authorized by the North-
western New Mexico Rural Water Projects Act, but excluding 
any current demand for surface water for placement into aquifer 
storage for future recovery and use.