I 
117TH CONGRESS 
2D SESSION 
H. R. 9633 
To authorize Arizona Tribes to enter into lease or exchange agreements 
and storage agreements relating to their decreed water entitlements as 
a long-term source of water supply, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 20, 2022 
Mr. O’HALLERAN introduced the following bill; which was referred to the 
Committee on Natural Resources 
A BILL 
To authorize Arizona Tribes to enter into lease or exchange 
agreements and storage agreements relating to their de-
creed water entitlements as a long-term source of water 
supply, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Arizona Tribes Water 
Marketing Act of 2022’’. 
SEC. 2. FINDINGS. 
Congress finds as follows: 
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(1) The entire American West and Southwest 
are facing forecasts of prolonged droughts that will 
leave States and Tribes facing major water short-
ages. 
(2) Recent periods of drought in the American 
West have also occurred with higher temperatures 
and reduced snowpack and led to what climate sci-
entists recently concluded was possibly the most se-
vere drought in over 1,200 years. 
(3) The Colorado River has been under drought 
conditions since 2000, most recently denoted as the 
most endangered river in the United States, and the 
State of Arizona is in a ‘‘mega-drought’’ according 
to climate scientists. 
(4) The Secretary manages the lower Colorado 
River system in accordance with Federal law includ-
ing— 
(A) the Boulder Canyon Project Act of 
1928; 
(B) the 1963 Decision of the U.S. Su-
preme Court in Arizona v. California; 
(C) the 2006 Consolidated Decree of the 
U.S. Supreme Court in Arizona v. California; 
(D) the Colorado River Basin Project Act 
of 1968; 
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(E) the Criteria for Coordinated Long- 
Range Operation of Colorado River Reservoirs 
Pursuant to the Colorado River Basin Project 
Act of September 30, 1968; 
(F) the Grand Canyon Protection Act of 
1992; 
(G) the 2007 Interim Guidelines; and 
(H) other applicable provisions of Federal 
law. 
(5) The 2007 Interim Guidelines will expire in 
2026. The 7 States that are within the Colorado 
River basin are re-negotiating these guidelines with 
the Federal Government to take account of current 
forecasts of available supply from the Colorado 
River, which is dramatically reduced from what it 
had been when the guidelines were adopted in 2007. 
(6) Colorado River water that had been stored 
in Lake Powell and Lake Mead has been gradually 
used up as the drought has continued. Conservation 
of water supplies is for the foreseeable future the 
only viable way to address water shortage and water 
supplies from the Colorado River. 
(7) While conservation is the current focus to 
address the ‘‘mega-drought’’ in the State of Arizona, 
additional efforts should be made now to identify fu-
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should be considered and implemented as part of a 
long-term strategy for addressing the mega-drought 
in the Southwest, and should be considered as part 
of the ongoing basin State re-negotiation of the 
2007 Interim Guidelines. 
(11) In the meantime, to address the current 
crisis, all parties with excess supplies of water 
should consider ways of conserving those supplies 
through existing Federal and State programs that 
provide for the conservation of such supplies for the 
benefit of both Lake Mead and Lake Powell. 
SEC. 3. PURPOSES. 
The purposes of this Act are— 
(1) to authorize Arizona Tribes to enter into 
Lease or Exchange Agreements and Storage Agree-
ments to make their judicially decreed Tribal water 
entitlements available for use off of their respective 
Reservations for their economic well-being and for 
the benefit of their surrounding jurisdictions as 
water supplies in Arizona become more scarce; and 
(2) to authorize the Secretary to approve any 
Lease or Exchange Agreements or Storage Agree-
ments entered into by Arizona Tribes pursuant to 
paragraph (1). 
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SEC. 4. DEFINITIONS. 
In this Act: 
(1) 2007 INTERIM
GUIDELINES.—The term 
‘‘2007 Interim Guidelines’’ means The Final Envi-
ronmental Impact Statement—Colorado River In-
terim Guidelines for Lower Basin Shortages and Co-
ordinated Operations for Lake Powell and Lake 
Mead, dated October 2007, prepared pursuant to the 
National Environmental Policy Act of 1969, the 
Council on Environmental Quality’s Regulations for 
Implementing the Procedural Provisions of NEPA 
(40 C.F.R. Parts 1500 through 1508), Department 
of the Interior Policies, and the Bureau of Reclama-
tion’s NEPA Handbook. 
(2) ALLOTTEE.—The term ‘‘allottee’’ means an 
individual who holds a beneficial real property inter-
est in an allotment of Indian land that is— 
(A) located within the exterior boundaries 
of a Reservation; and 
(B) held in trust by the United States. 
(3) ARIZONA
INDIAN
WATER
SETTLEMENT.— 
The term ‘‘Arizona Indian Water Settlement’’ means 
an Indian water settlement for an Indian Tribe lo-
cated within the State that— 
(A) has been approved and authorized by 
Congress; and 
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(B) includes as part of the Indian Tribe’s 
approved and authorized entitlement a judicially 
decreed entitlement to water for lands located 
within the boundaries of the State. 
(4) ARIZONA
TRIBE.—The term ‘‘Arizona 
Tribe’’ means an Indian Tribe with lands located 
within the State that has a decreed water right. 
(5) DECREED WATER RIGHT.—The term ‘‘de-
creed water right’’ means an entitlement to water in-
cluded in any final decree entered by a Federal court 
on behalf of an Arizona Tribe that is appurtenant 
to lands located within such Arizona Tribe’s Res-
ervation. 
(6) CONSUMPTIVE USE.—The term ‘‘Consump-
tive Use’’ means— 
(A) a portion of the decreed water right 
that has been consumptively used by an Arizona 
Tribe within the exterior boundary of its Res-
ervation for a minimum of 4 of the 5 calendar 
years immediately preceding the year of delivery 
of a portion of the decreed right according to 
a Lease or Exchange Agreement or Storage 
Agreement; and 
(B) any verified reduction in Consumptive 
Use pursuant to a System Conservation Agree-
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ment, a Lease or Exchange Agreement, or Stor-
age Agreement, or from the creation of Inten-
tionally Created Surplus, shall be deemed to be 
a Consumptive Use in the year in which the re-
duction occurred, if the reduction is reflected in 
the Water Accounting Report. 
(7) INTENTIONALLY
CREATED
SURPLUS
OR 
ICS.—The term ‘‘Intentionally Created Surplus’’ or 
‘‘ICS’’ means water that is conserved to Lake Mead 
for future use by a water user pursuant to the 2007 
Interim Guidelines. 
(8) LEASE OR EXCHANGE AGREEMENT.—The 
term ‘‘Lease or Exchange Agreement’’ means an 
agreement to lease or exchange, or an option to lease 
or exchange, a portion of the Consumptive Use off 
of a Reservation. 
(9) LOWER BASIN.—The term ‘‘Lower Basin’’ 
has the meaning given the term in article II(g) of 
the Colorado River Compact of 1922, as approved by 
Congress in section 13 of the Boulder Canyon 
Project Act (43 U.S.C. 617l), and by the Presi-
dential Proclamation of June 25, 1929 (46 Stat. 
3000). 
(10) PERSON.—The term ‘‘person’’ means an 
individual, a public or private corporation, a com-
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pany, a partnership, a joint venture, a firm, an asso-
ciation, a society, an estate or trust, a private orga-
nization or enterprise, the United States, any Indian 
Tribe, a governmental entity, or a political subdivi-
sion or municipal corporation organized under, or 
subject to, the constitution and laws of the State. 
(11) RESERVATION.—The term ‘‘Reservation’’ 
means the reservation established for each Arizona 
Tribe but only as to those reservation lands that are 
located in the State. 
(12) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Interior. 
(13) STATE.—The term ‘‘State’’ means the 
State of Arizona. 
(14) STORAGE.—The term ‘‘storage’’ means the 
underground storage, in accordance with State law, 
of a portion of the Consumptive Use off of the Res-
ervation within the Lower Basin in the State. 
(15) STORAGE AGREEMENT.—The term ‘‘Stor-
age Agreement’’ means an agreement, including with 
the Arizona Water Banking Authority (or successor 
agency or entity), for the storage of a portion of the 
Consumptive Use, or the water received under an ex-
change pursuant to an Lease or Exchange Agree-
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ment, or more underground storage facilities or 
groundwater savings facilities located in the State. 
(16) WATER ACCOUNTING REPORT.—The term 
‘‘Water Accounting Report’’ means the annual re-
port of the Bureau of Reclamation entitled the ‘‘Col-
orado River Accounting and Water Use Report: Ari-
zona, California, and Nevada’’. 
SEC. 5. LEASE OR EXCHANGE AGREEMENTS. 
(a) AUTHORIZATION.—Notwithstanding section 2116 
of the Revised Statutes (commonly known as the ‘‘Indian 
Trade and Intercourse Act’’; 25 U.S.C. 177) or any other 
provision of law, beginning on January 1, 2026, each Ari-
zona Tribe is authorized to, subject to the approval of the 
Secretary under section 7(a), and has the sole authority 
to, enter into, with any person, a Lease or Exchange 
Agreement, on the condition that the use off of the Res-
ervation is located in the Lower Basin in the State and 
is not in Navajo, Apache, or Cochise counties. 
(b) TERM OF LEASE OR EXCHANGE AGREEMENT.— 
The term of any Lease or Exchange Agreement entered 
into under subsection (a) shall be mutually agreed, except 
that the term shall not exceed 100 years. 
(c) MODIFICATIONS.—Any Lease or Exchange Agree-
ment entered into under subsection (a) may be renegoti-
ated or modified at any time during the term of the Lease 
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or Exchange Agreement, subject to the approval of the 
Secretary under section 7(a), on the condition that the 
term of the renegotiated Lease or Exchange Agreement 
and the term of the original Lease or Exchange Agree-
ment, in the aggregate, does not exceed 100 years. 
(d) APPLICABLE LAW.—Any person entering into a 
Lease or Exchange Agreement with an Arizona Tribe 
under this section shall use the water received under the 
Lease or Exchange Agreement in accordance with applica-
ble Federal and State law. 
(e) EFFECT ON ARIZONA INDIAN WATER SETTLE-
MENTS.— 
(1) IN GENERAL.—This Act shall not be con-
strued to amend any Arizona Indian Water Settle-
ment that prohibits off-Reservation Lease and Ex-
change Agreements. Before entering into a Lease or 
Exchange Agreement pursuant to the authority set 
forth in this Act, an Arizona Tribe with a restriction 
on its authority to lease or exchange its decreed 
water rights outside the exterior boundaries of its 
Reservation set forth in its Arizona Indian Water 
Settlement must first amend the settlement agree-
ment to modify such restrictions in a manner in ac-
cordance with its terms. 
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(2) AUTHORIZATION, RATIFICATION AND CON-
FIRMATION
OF
AMENDMENTS.—An amendment to 
an Arizona Indian Water Settlement to allow a 
Lease and Exchange Agreement is hereby deemed to 
be authorized, ratified, and confirmed in accordance 
with its terms without further need for congressional 
action. 
SEC. 6. STORAGE AGREEMENTS. 
(a) AUTHORIZATION.—Notwithstanding section 2116 
of the Revised Statutes (commonly known as the ‘‘Indian 
Trade and Intercourse Act’’; 25 U.S.C. 177) or any other 
provision of law, each Arizona Tribe is authorized to, sub-
ject to the approval of the Secretary under section 7(a), 
and has the sole authority to, enter into a Storage Agree-
ment, on the condition that the facility shall be located 
in the Lower Basin in the State and is not in Navajo, 
Apache, or Cochise counties. 
(b) APPLICABLE LAW.—Any Storage Agreement en-
tered into under this section shall be in accordance with 
applicable Federal and State law. 
(c) DELEGATION
OF RIGHTS.—An Arizona Tribe 
may assign or sell any long-term storage credits accrued 
as a result of a Storage Agreement, on the condition that 
the assignment or sale is in accordance with applicable 
State law. 
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(d) EFFECT ON ARIZONA INDIAN WATER SETTLE-
MENTS.— 
(1) IN GENERAL.—This Act shall not be con-
strued to amend any Arizona Indian Water Settle-
ment that prohibits off-Reservation Storage Agree-
ments. Before entering into a Storage Agreement 
pursuant to the authority set forth in this Act, an 
Arizona Tribe with a restriction on its authority to 
store its decreed water rights outside the exterior 
boundaries of its Reservation set forth in its Arizona 
Indian Water Settlement must first amend the set-
tlement agreement to modify such restrictions in a 
manner in accordance with its terms. 
(2) AUTHORIZATION, RATIFICATION AND CON-
FIRMATION
OF
AMENDMENTS.—An amendment to 
an Arizona Indian Water Settlement Agreement to 
allow Storage Agreements, is hereby deemed to be 
authorized, ratified and confirmed in accordance 
with its terms without need for further congressional 
action. 
SEC. 7. APPROVAL BY THE SECRETARY. 
(a) AUTHORIZATION.—The Secretary shall approve 
or disapprove any— 
(1) Lease or Exchange Agreement; 
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(2) modification to a Lease or Exchange Agree-
ment; 
(3) Storage Agreement; or 
(4) modification to a Storage Agreement. 
(b) SECRETARIAL AGREEMENTS.—The Secretary is 
authorized to enter Lease or Exchange Agreements or 
Storage Agreements with an Arizona Tribe, provided the 
Secretary pays the fair market value for the Arizona 
Tribe’s reduced consumptive use. 
(c) REQUIREMENTS.— 
(1) IN GENERAL.—The Secretary shall not ap-
prove any Lease or Exchange Agreement, or any 
modification to a Lease or Exchange Agreement, 
any Storage Agreement, or any modification to a 
Storage Agreement that is not in compliance with— 
(A) this Act; and 
(B) the agreement entered into between 
the Arizona Tribe, the State, and the Secretary 
under section 10(a). 
(2) PERMANENT ALIENATION.—The Secretary 
shall not approve any Lease or Exchange Agree-
ment, any modification to a Lease or Exchange 
Agreement, or any Storage Agreement that perma-
nently alienates any portion of any Arizona Tribe 
decreed water right. 
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(d) OTHER REQUIREMENTS.—The requirement for 
Secretarial approval under subsection (a) shall satisfy the 
requirements of section 2116 of the Revised Statutes 
(commonly known as the ‘‘Indian Trade and Intercourse 
Act’’; 25 U.S.C. 177). 
(e) AUTHORITY OF THE SECRETARY.—Nothing in 
this Act, or any agreement entered into or approved by 
the Secretary under this Act, including any Lease or Ex-
change Agreement or Storage Agreement, shall diminish 
or abrogate the authority of the Secretary to act under 
applicable Federal law or regulation. 
SEC. 8. RESPONSIBILITIES OF THE SECRETARY. 
(a) COMPLIANCE.—The Secretary, when approving a 
Lease or Exchange Agreement or a Storage Agreement 
under this Act, shall ensure such agreement complies 
with— 
(1) the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); 
(2) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.); and 
(3) all other applicable Federal environmental 
laws. 
(b) DOCUMENTATION.—The Secretary shall docu-
ment any Lease or Exchange Agreement or Storage 
Agreement in the Water Accounting Report. 
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(b) NEPA.—The execution of the agreement under 
subsection (a) shall not constitute a major Federal action 
for purposes of the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.). 
(c) EFFECT.—Nothing in this Act shall prohibit the 
Secretary from agreeing with the Arizona Tribe and the 
State to a modification to an agreement entered into 
under subsection (a) (including an appendix or exhibit to 
the agreement) on the condition that the modification— 
(1) is in compliance with this Act; and 
(2) does not otherwise require congressional ap-
proval under section 2116 of the Revised Statutes 
(commonly known as the ‘‘Indian Trade and Inter-
course Act’’) (25 U.S.C. 177) or any other provision 
of law. 
SEC. 11. NO EFFECT ON ARIZONA TRIBE DECREED WATER 
RIGHTS. 
(a) TEMPORARY USE.—A Lease or Exchange Agree-
ment or Storage Agreement— 
(1) shall provide for the temporary use or stor-
age of a portion of the Consumptive Use off of the 
Arizona Tribe’s Reservation; and 
(2) shall not permanently alienate the decreed 
water right. 
(b) PRIORITY STATUS.— 
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(b) WATER RIGHTS OF ALLOTTEES.—The Secretary 
shall protect the rights of the allottees to a just and equi-
table distribution of water for irrigation purposes, pursu-
ant to section 7 of the Act of February 8, 1887 (commonly 
known as the ‘‘Indian General Allotment Act’’) (24 Stat. 
390, chapter 119; 25 U.S.C. 381) (referred to in this sec-
tion as the ‘‘Act’’). 
(c) RELIEF UNDER TRIBAL LAW.—Prior to asserting 
any claim against the United States pursuant to the Act, 
or any other applicable law, an allottee shall exhaust all 
remedies available under applicable Tribal law. 
(d) RELIEF UNDER THE INDIAN GENERAL ALLOT-
MENT ACT.—Following an exhaustion of remedies avail-
able under applicable Tribal law, an allottee may seek re-
lief under the Act, or any other applicable law. 
(e) RELIEF FROM THE SECRETARY.—Following ex-
haustion of remedies available under the Act, or any other 
applicable law, an allottee may petition the Secretary for 
relief. 
SEC. 13. CONSIDERATION PAID TO ARIZONA TRIBES. 
An Arizona Tribe, and not the United States in any 
capacity, shall be entitled to all consideration due to an 
Arizona Tribe under any Lease or Exchange Agreement 
or Storage Agreement. 
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SEC. 14. LIABILITY OF THE UNITED STATES. 
(a) LIMITATION OF LIABILITY.—The United States 
shall not be liable to an Arizona Tribe or to any party 
to a Lease or Exchange Agreement or Storage Agreement 
in any claim relating to the negotiation, execution, or ap-
proval of any Lease or Exchange Agreement or Storage 
Agreement, including any claim relating to the terms in-
cluded in such an agreement, except for claims related to 
section 8(a). 
(b) OBLIGATIONS.—The United States shall have no 
trust obligation or other obligation to monitor, administer, 
or account for— 
(1) any funds received by an Arizona Tribe as 
consideration under any Lease or Exchange Agree-
ment or Storage Agreement; or 
(2) the expenditure of such funds. 
SEC. 15. APPLICATION. 
(a) IN GENERAL.—This Act shall apply only to the 
portion of the decreed water right that is available for use 
in the State. 
(b) REQUIREMENT.—The portion of the decreed 
water right described in subsection (a) shall not be used, 
directly or indirectly, outside the Lower Basin in the State 
or in Navajo, Apache, or Cochise Counties, unless such 
use is otherwise authorized pursuant to a congressionally 
approved Indian water rights settlement. 
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(c) NO EFFECT ON NAVAJO-UTAH WATER RIGHTS 
SETTLEMENT.—This Act shall not affect any provisions 
in the Navajo-Utah Water Rights Settlement Act, Consoli-
dated Appropriations Act, section 1102 (Public Law 116– 
260, December 27, 2020), that authorize the Navajo Na-
tion to allocate, distribute, and lease the Navajo water 
rights for any use on the Reservation in accordance with 
the Navajo-Utah settlement agreement, and applicable 
Tribal and Federal law or allocate, distribute, and lease 
the Navajo water rights for off-Reservation use in accord-
ance with the Navajo-Utah settlement agreement, subject 
to the approval of the Secretary. 
SEC. 16. RULE OF CONSTRUCTION. 
(a) IN GENERAL.—Nothing in this Act establishes, 
or shall be considered to establish, a precedent in any liti-
gation involving, or alters, affects, or quantifies, any water 
right with respect to— 
(1) the United States; 
(2) any other Indian Tribe, band, or commu-
nity; 
(3) any State or political subdivision or district 
of a State; or 
(4) any person. 
(b) EFFECT.—Nothing in this Act exempts the imple-
mentation of a Lease or Exchange Agreement, or a Stor-
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age Agreement and the operation of applicable Colorado 
River System reservoirs from any requirements of applica-
ble Federal environmental laws. 
Æ 
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