erating the Northwestern New Mexico Rural Water Sup-
ply Project is anticipated to be in excess of 22 megawatts, 
the Secretary shall consult with the Navajo Nation and 
power users of the Colorado River Storage Project to de-
termine methods by which to minimize the impact of that 
use on third parties.’’. 
(c) 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 following: 
‘‘SEC. 16. (a) The Secretary of the Interior may cre-
ate 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 sub-
ject 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; and 
‘‘(2) does not impair the ability of the Secretary 
of the Interior to deliver water under contracts en-
tered into under— 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
‘‘(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 Inter-
state Stream Commission), 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 para-
graph (1) shall include provisions requiring that— 
‘‘(A) the storage of banked water shall be sub-
ject to approval under State law by the New Mexico 
State Engineer to ensure that impairment of any ex-
isting water right does 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; and 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
‘‘(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 releases required 
under the San Juan River Recovery Implementation 
Program. 
‘‘(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. 102. 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 may 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 diver-
sion by the Navajo Indian Irrigation Project from the 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
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 be more than 15 percent of the average diversion 
determined under paragraph (1). 
‘‘(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 fol-
lowing purposes: 
‘‘(1) 
Aquaculture 
purposes, 
including 
the 
rearing of fish in support of the San Juan River 
Basin Recovery Implementation Program authorized 
by Public Law 106–392 (114 Stat. 1602). 
‘‘(2) Domestic, industrial, or commercial pur-
poses relating to agricultural production and proc-
essing. 
‘‘(3) The generation of hydroelectric power as 
an incident to the diversion of water by the Navajo 
Indian Irrigation Project for authorized purposes. 
‘‘(4) The implementation of the alternate water 
source provisions described in subparagraph 9.2 of 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
the agreement executed under section 401(a)(2) of 
the Northwestern New Mexico Rural Water Projects 
Act. 
‘‘(d) The Navajo Indian Irrigation Project water di-
verted 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 
401(a)(2) of the Northwestern New Mexico Rural 
Water Projects Act; 
‘‘(2) the contract executed under section 
304(a)(2)(B) of the Northwestern New Mexico 
Rural Water Projects Act; and 
‘‘(3) any other applicable law. 
‘‘(e)(1) The Secretary may use the capacity of the 
Navajo Indian Irrigation Project works to convey water 
supplies for— 
‘‘(A) the Northwestern New Mexico Rural 
Water Supply Project under section 302 of the 
Northwestern New Mexico Rural Water Projects 
Act; or 
‘‘(B) other nonirrigation purposes authorized 
under subsection (c) or (d). 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS