graph (1), the Nation shall assume responsibility for 
the operation, maintenance, and replacement of the 
well or related pipeline facility conveyed. 
(3) EFFECT OF CONVEYANCE.—The conveyance 
to the Nation of the conjunctive use wells under 
paragraph (1) shall not affect the application of the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et 
seq.). 
(g) USE OF PROJECT FACILITIES.—The capacities of 
the treatment facilities, main pipelines, and lateral pipe-
lines of the Project authorized by section 302(b) may be 
used to treat and convey groundwater to Nation commu-
nities if the Nation provides for payment of the operation, 
maintenance, and replacement costs associated with the 
use of the facilities or pipelines. 
(h) LIMITATIONS.—The diversion and use of ground-
water by wells constructed or rehabilitated under this sec-
tion shall be made in a manner consistent with applicable 
Federal and State law. 
SEC. 307. SAN JUAN RIVER NAVAJO IRRIGATION PROJECTS. 
(a) REHABILITATION.—Subject to subsection (b), the 
Secretary shall rehabilitate— 
(1) the Fruitland-Cambridge Irrigation Project 
to serve not more than 3,335 acres of land, which 
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shall be considered to be the total serviceable area 
of the Project; and 
(2) the Hogback-Cudei Irrigation Project to 
serve not more than 8,830 acres of land, which shall 
be considered to be the total serviceable area of the 
Project. 
(b) CONDITION.—The Secretary shall not commence 
any construction activity relating to the rehabilitation of 
the Fruitland-Cambridge Irrigation Project or the Hog-
back-Cudei Irrigation Project under subsection (a) until 
the Secretary executes the Agreement. 
(c) OPERATION, MAINTENANCE, AND REPLACEMENT 
OBLIGATION.—Upon the date of completion of the reha-
bilitation, the Nation shall assume the obligations for the 
operation, maintenance, and replacement of each facility 
rehabilitated under this section. 
SEC. 308. OTHER IRRIGATION PROJECTS. 
(a) IN GENERAL.—Not later than 2 years after the 
date of enactment of this Act, the Secretary, in consulta-
tion with the State of New Mexico (acting through the 
Interstate Stream Commission) and the Non-Navajo Irri-
gation Districts that elect to participate, shall— 
(1) conduct a study of Non-Navajo Irrigation 
District diversion and ditch facilities; and 
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(2) based on the study, identify and prioritize 
a list of projects, with associated cost estimates, that 
are recommended to be implemented to repair, reha-
bilitate, or reconstruct irrigation diversion and ditch 
facilities to improve water use efficiency. 
(b) GRANTS.—The Secretary may provide grants to, 
and enter into cooperative agreements with, the Non-Nav-
ajo Irrigation Districts to plan, design, or otherwise imple-
ment the projects identified under subsection (a)(2). 
(c) COST-SHARING.— 
(1) FEDERAL SHARE.—The Federal share of 
the total cost of carrying out a project under sub-
section (b) shall be not more than 50 percent. 
(2) FORM.—The non-Federal share required 
under paragraph (1) may be in the form of in-kind 
contributions, including the contribution of any valu-
able asset or service that the Secretary determines 
would substantially contribute to a project carried 
out under subsection (b). 
(3) STATE CONTRIBUTION.—The Secretary may 
accept from the State of New Mexico a partial or 
total contribution toward the non-Federal share for 
a project carried out under subsection (b). 
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