(1) ELIGIBLE
NON-PUEBLO
ENTITIES.—The 
term ‘‘Eligible Non-Pueblo Entities’’ means the 
Town of Taos, El Prado Water and Sanitation Dis-
trict (‘‘EPWSD’’), and the New Mexico Department 
of Finance and Administration Local Government 
Division on behalf of the Acequia Madre del Rio 
Lucero y del Arroyo Seco, the Acequia Madre del 
Prado, the Acequia del Monte, the Acequia Madre 
del Rio Chiquito, the Upper Ranchitos Mutual Do-
mestic Water Consumers Association, the Upper Ar-
royo Hondo Mutual Domestic Water Consumers As-
sociation, and the Llano Quemado Mutual Domestic 
Water Consumers Association. 
(2) ENFORCEMENT DATE.—The term ‘‘Enforce-
ment Date’’ means the date upon which the Sec-
retary publishes the notice required by section 
10(f)(1). 
(3) MUTUAL-BENEFIT
PROJECTS.—The term 
‘‘Mutual-Benefit Projects’’ means the projects de-
scribed and identified in articles 6 and 10.1 of the 
Settlement Agreement. 
(4) PARTIAL FINAL DECREE.—The term ‘‘Par-
tial Final Decree’’ means the Decree entered in New 
Mexico v. Abeyta and New Mexico v. Arellano, Civil 
Nos. 7896–BB (U.S.6 D.N.M.) and 7939–BB (U.S.
D.N.M.) (consolidated), for the resolution of the 
Pueblo’s water right claims and which is substan-
tially in the form agreed to by the Parties and at-
tached to the Settlement Agreement as Attachment 
5. 
(5) PARTIES.—The term ‘‘Parties’’ means the 
Parties to the Settlement Agreement, as identified in 
article 1 of the Settlement Agreement. 
(6) PUEBLO.—The term ‘‘Pueblo’’ means the 
Taos Pueblo, a sovereign Indian tribe duly recog-
nized by the United States of America. 
(7) PUEBLO LANDS.—The term ‘‘Pueblo lands’’ 
means those lands located within the Taos Valley to 
which the Pueblo, or the United States in its capac-
ity as trustee for the Pueblo, holds title subject to 
Federal law limitations on alienation. Such lands in-
clude Tracts A, B, and C, the Pueblo’s land grant, 
the Blue Lake Wilderness Area, and the Tenorio 
and Karavas Tracts and are generally depicted in 
Attachment 2 to the Settlement Agreement. 
(8) SAN
JUAN-CHAMA
PROJECT.—The term 
‘‘San Juan-Chama Project’’ means the Project au-
thorized by section 8 of the Act of June 13, 1962 
(76 Stat. 96 and 97), and the Act of April 11, 1956 
(70 Stat. 105).
(9) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
(10) SETTLEMENT
AGREEMENT.—The term 
‘‘Settlement Agreement’’ means the contract dated 
March 31, 2006, between and among— 
(A) the United States, acting solely in its 
capacity as trustee for Taos Pueblo; 
(B) the Taos Pueblo, on its own behalf; 
(C) the State of New Mexico; 
(D) the Taos Valley Acequia Association 
and its 55 member ditches (‘‘TVAA’’); 
(E) the Town of Taos; 
(F) EPWSD; and 
(G) the 12 Taos area Mutual Domestic 
Water Consumers Associations (‘‘MDWCAs’’), 
as amended to conform with this Act. 
(11) STATE ENGINEER.—The term ‘‘State En-
gineer’’ means the New Mexico State Engineer. 
(12) TAOS VALLEY.—The term ‘‘Taos Valley’’ 
means the geographic area depicted in Attachment 4 
of the Settlement Agreement. 
SEC. 4. PUEBLO RIGHTS. 
(a) IN GENERAL.—Those rights to which the Pueblo 
is entitled under the Partial Final Decree shall be held 
in trust by the United States on behalf of the Pueblo and
shall not be subject to forfeiture, abandonment, or perma-
nent alienation. 
(b) SUBSEQUENT ACT OF CONGRESS.—The Pueblo 
shall not be denied all or any part of its rights held in 
trust absent its consent unless such rights are explicitly 
abrogated by an Act of Congress hereafter enacted. 
SEC. 5. PUEBLO WATER INFRASTRUCTURE AND WATER-
SHED ENHANCEMENT. 
(a) IN GENERAL.—The Secretary, acting through the 
Commissioner of Reclamation, shall provide grants and 
technical assistance to the Pueblo on a nonreimbursable 
basis to— 
(1) plan, permit, design, engineer, construct, re-
construct, replace, or rehabilitate water production, 
treatment, and delivery infrastructure; 
(2) restore, preserve, and protect the environ-
ment associated with the Buffalo Pasture area; and 
(3) protect and enhance watershed conditions. 
(b) AVAILABILITY OF GRANTS.—Upon the Enforce-
ment Date, all amounts appropriated pursuant to section 
10(c)(1) or made available from other authorized sources, 
shall be available in grants to the Pueblo after the require-
ments of subsection (c) have been met. 
(c) PLAN.—The Secretary shall provide financial as-
sistance pursuant to subsection (a) upon the Pueblo’s sub-
mittal of a plan that identifies the projects to be imple-
mented consistent with the purposes of this section and 
describes how such projects are consistent with the Settle-
ment Agreement. 
(d) EARLY FUNDS.—Notwithstanding subsection (b), 
$10,000,000 of the monies authorized to be appropriated 
pursuant to section 10(c)(1)— 
(1) shall be made available in grants to the 
Pueblo by the Secretary upon appropriation or avail-
ability of the funds from other authorized sources; 
and 
(2) shall be distributed by the Secretary to the 
Pueblo on receipt by the Secretary from the Pueblo 
of a written notice, a Tribal Council resolution that 
describes the purposes under subsection (a) for 
which the monies will be used, and a plan under 
subsection (c) for this portion of the funding. 
SEC. 6. TAOS PUEBLO WATER DEVELOPMENT FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a fund to be known as the 
‘‘Taos Pueblo Water Development Fund’’ (hereinafter, 
‘‘Fund’’) to be used to pay or reimburse costs incurred 
by the Pueblo for— 
(1) acquiring water rights;
(2) planning, permitting, designing, engineer-
ing, constructing, reconstructing, replacing, rehabili-
tating, operating, or repairing water production, 
treatment or delivery infrastructure, on-farm im-
provements, or wastewater infrastructure; 
(3) restoring, preserving and protecting the 
Buffalo Pasture, including planning, permitting, de-
signing, engineering, constructing, operating, man-
aging and replacing the Buffalo Pasture Recharge 
Project; 
(4) administering the Pueblo’s water rights ac-
quisition program and water management and ad-
ministration system; and 
(5) for watershed protection and enhancement, 
support of agriculture, water-related Pueblo commu-
nity welfare and economic development, and costs 
related to the negotiation, authorization, and imple-
mentation of the Settlement Agreement. 
(b) MANAGEMENT OF THE FUND.—The Secretary 
shall manage the Fund, invest amounts in the Fund, and 
make monies available from the Fund for distribution to 
the Pueblo consistent with the American Indian Trust 
Fund Management Reform Act of 1994 (25 U.S.C. 4001 
et seq.) (hereinafter, ‘‘Trust Fund Reform Act’’), this Act, 
and the Settlement Agreement.
(c) INVESTMENT OF THE FUND.—Upon the Enforce-
ment Date, the Secretary shall invest amounts in the 
Fund in accordance with— 
(1) the Act of April 1, 1880 (21 Stat. 70, ch. 
41, 25 U.S.C. 161); 
(2) the first section of the Act of June 24, 
1938 (52 Stat. 1037, ch. 648, 25 U.S.C. 162a); and 
(3) the American Indian Trust Fund Manage-
ment Reform Act of 1994 (25 U.S.C. 4001 et seq.). 
(d) AVAILABILITY OF AMOUNTS FROM THE FUND.— 
Upon the Enforcement Date, all monies deposited in the 
Fund pursuant to section 10(c)(2) or made available from 
other authorized sources shall be available to the Pueblo 
for expenditure or withdrawal after the requirements of 
subsection (e) have been met. 
(e) EXPENDITURES AND WITHDRAWAL.— 
(1) TRIBAL MANAGEMENT PLAN.— 
(A) IN GENERAL.—The Pueblo may with-
draw all or part of the Fund on approval by the 
Secretary of a tribal management plan as de-
scribed in the Trust Fund Reform Act. 
(B) REQUIREMENTS.—In addition to the 
requirements under the Trust Fund Reform 
Act, the tribal management plan shall require
that the Pueblo spend any funds in accordance 
with the purposes described in subsection (a). 
(2) ENFORCEMENT.—The Secretary may take 
judicial or administrative action to enforce the re-
quirement that monies withdrawn from the Fund 
are used for the purposes specified in subsection (a). 
(3) LIABILITY.—If the Pueblo exercises the 
right to withdraw monies from the Fund, neither the 
Secretary nor the Secretary of the Treasury shall re-
tain any liability for the expenditure or investment 
of the monies withdrawn. 
(4) EXPENDITURE PLAN.— 
(A) IN GENERAL.—The Pueblo shall sub-
mit to the Secretary for approval an expendi-
ture plan for any portions of the funds made 
available under this Act that the Pueblo does 
not withdraw under paragraph (1)(A). 
(B) DESCRIPTION.—The expenditure plan 
shall describe the manner in which, and the 
purposes for which, amounts remaining in the 
Fund will be used. 
(C) APPROVAL.—On receipt of an expendi-
ture plan under subparagraph (A), the Sec-
retary shall approve the plan if the Secretary
determines that the plan is reasonable and con-
sistent with this Act. 
(5) ANNUAL REPORT.—The Pueblo shall submit 
to the Secretary an annual report that describes all 
expenditures from the Fund during the year covered 
by the report. 
(f) FUNDS AVAILABLE UPON APPROPRIATION.—Not-
withstanding subsection (d), $15,000,000 of the monies 
authorized to be appropriated pursuant to section 
10(c)(2)— 
(1) shall be available upon appropriation or 
made available from other authorized sources for the 
Pueblo’s acquisition of water rights pursuant to Ar-
ticle 5.1.1.2.3 of the Settlement Agreement, the Buf-
falo Pasture Recharge Project, implementation of 
the Pueblo’s water rights acquisition program and 
water management and administration system, the 
design, planning, and permitting of water or waste-
water infrastructure eligible for funding under sec-
tion 5 or 6, or costs related to the negotiation, au-
thorization, and implementation of the Settlement 
Agreement; and 
(2) shall be distributed by the Secretary to the 
Pueblo on receipt by the Secretary from the Pueblo 
of a written notice and a Tribal Council resolution
that describes the purposes under paragraph (1) for 
which the monies will be used. 
(g) NO PER CAPITA DISTRIBUTIONS.—No part of the 
Fund shall be distributed on a per capita basis to members 
of the Pueblo. 
SEC. 7. MARKETING. 
(a) PUEBLO WATER RIGHTS.—Subject to the ap-
proval of the Secretary in accordance with subsection (e), 
the Pueblo may market water rights secured to it under 
the Settlement Agreement and Partial Final Decree, pro-
vided that such marketing is in accordance with this sec-
tion. 
(b) PUEBLO CONTRACT RIGHTS
TO SAN JUAN- 
CHAMA PROJECT WATER.—Subject to the approval of the 
Secretary in accordance with subsection (e), the Pueblo 
may subcontract water made available to the Pueblo under 
the contract authorized under section 9(b)(1)(A) to third 
parties to supply water for use within or without the Taos 
Valley, provided that the delivery obligations under such 
subcontract are not inconsistent with the Secretary’s exist-
ing San Juan-Chama Project obligations and such sub-
contract is in accordance with this section. 
(c) LIMITATION.— 
(1) IN GENERAL.—Diversion or use of water off 
Pueblo lands pursuant to Pueblo water rights or
Pueblo contract rights to San Juan-Chama Project 
water shall be subject to and not inconsistent with 
the same requirements and conditions of State law, 
any applicable Federal law, and any applicable inter-
state compact as apply to the exercise of water 
rights or contract rights to San Juan-Chama Project 
water held by non-Federal, non-Indian entities, in-
cluding all applicable State Engineer permitting and 
reporting requirements. 
(2) EFFECT ON WATER RIGHTS.—Such diver-
sion or use off Pueblo lands under paragraph (1) 
shall not impair water rights or increase surface 
water depletions within the Taos Valley. 
(d) MAXIMUM TERM.— 
(1) IN GENERAL.—The maximum term of any 
water use lease or subcontract, including all renew-
als, shall not exceed 99 years in duration. 
(2) ALIENATION OF RIGHTS.—The Pueblo shall 
not permanently alienate any rights it has under the 
Settlement Agreement, the Partial Final Decree, 
and this Act. 
(e) APPROVAL OF SECRETARY.—The Secretary shall 
approve or disapprove any lease or subcontract submitted 
by the Pueblo for approval not later than— 
(1) 180 days after submission; or