SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Navajo-Hopi Little Colorado River Water Rights Settle-
ment Act of 2012’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Purposes. 
Sec. 4. Definitions. 
TITLE I—NAVAJO-HOPI LITTLE COLORADO RIVER WATER RIGHTS 
SETTLEMENT AGREEMENT 
Sec. 101. Ratification and execution of the Navajo-Hopi Little Colorado River 
water rights settlement agreement. 
Sec. 102. Water rights. 
Sec. 103. Authorization for construction of municipal, domestic, commercial, 
and industrial water projects. 
Sec. 104. Funding. 
Sec. 105. Waivers, releases, and retentions of claims. 
Sec. 106. Satisfaction of water rights and other benefits. 
Sec. 107. After-acquired trust land. 
Sec. 108. Enforceability date. 
Sec. 109. Administration. 
Sec. 110. Environmental compliance. 
TITLE II—CENTRAL ARIZONA PROJECT WATER 
Sec. 201. Conditions for reallocation of CAP NIA priority water. 
Sec. 202. Reallocation of CAP NIA priority water, firming, water delivery con-
tract. 
Sec. 203. Colorado River accounting. 
Sec. 204. No modification of existing laws. 
Sec. 205. Amendments. 
Sec. 206. Retention of Lower Colorado River water for future Lower Colorado 
River settlement. 
Sec. 207. Authorization of appropriations for feasibility study. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) it is the policy of the United States, in 
keeping with the trust responsibility of the United 
States to Indian tribes, to settle Indian water rights 
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claims whenever possible without lengthy and costly 
litigation; 
(2) the water rights settlements described in 
paragraph (1) typically require congressional review 
and approval; 
(3) the Navajo Nation and the United States, 
acting as trustee for the Navajo Nation and allottees 
of the Navajo Nation, claim the right to an 
unquantified amount of water from the Little Colo-
rado River system and source; 
(4) the Navajo Nation claims the right to an 
unquantified amount of water from the lower basin 
of the Colorado River and has challenged the legality 
of the Colorado River Interim Surplus Guidelines, 
the Colorado River Quantification Settlement Agree-
ment of the State of California, interstate water 
banking regulations, and Central Arizona Project 
water deliveries; 
(5) the defendants in the action described in 
paragraph (4) include— 
(A) the Department of the Interior, includ-
ing the Bureau of Reclamation and the Bureau 
of Indian Affairs, and 
(B) intervenor-defendants, including— 
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(i) the Southern Nevada Water Au-
thority; 
(ii) the Colorado River Commission of 
Nevada; 
(iii) the State of Arizona; 
(iv) the State of Nevada; 
(v) the Central Arizona Water Con-
servation District; 
(vi) the Southern California Metro-
politan Water District; 
(vii) the Imperial Irrigation District; 
(viii) the Coachella Valley Water Dis-
trict; 
(ix) the Arizona Power Authority; 
(x) the Salt River Project Agricultural 
Improvement and Power District; and 
(xi) the Salt River Valley Water Users 
Association; 
(6) the Hopi Tribe and the United States, act-
ing as trustee for the Hopi Tribe and allottees of the 
Hopi Tribe, claim the right to an unquantified 
amount of water from the Little Colorado River sys-
tem and source; and 
(7) consistent with the policy of the United 
States, this Act settles the water rights claims of the 
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Navajo Nation, allottees of the Navajo Nation, the 
Hopi Tribe, and allottees of the Hopi Tribe by pro-
viding drinking water infrastructure to the Navajo 
Nation and the Hopi Tribe in exchange for limiting 
the legal exposure and litigation expenses of the 
United States, the States of Arizona and Nevada, 
and agricultural, municipal, and industrial water 
users in the States of Arizona, Nevada, and Cali-
fornia. 
SEC. 3. PURPOSES. 
The purposes of this Act are— 
(1) to resolve, fully and finally— 
(A) any and all claims to the Little Colo-
rado River system and source in the State of 
Arizona of— 
(i) the Navajo Nation, on behalf of 
itself and the members of the Navajo Na-
tion; 
(ii) the United States, acting as trust-
ee for the Navajo Nation, the members of 
the Navajo Nation, and allottees of the 
Navajo Nation; 
(iii) the Hopi Tribe, on behalf of itself 
and the members of the Hopi Tribe; and 
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(iv) the United States, acting as 
trustee for the Hopi Tribe, the members of 
the Hopi Tribe, and allottees of the Hopi 
Tribe; and 
(B) any and all claims to the Gila River 
system and source in the State of Arizona of 
the Navajo Nation, on behalf of itself and the 
members of the Navajo Nation; 
(2) to approve, ratify, and confirm the settle-
ment agreement entered into among the Navajo Na-
tion, the Hopi Tribe, the United States, the State of 
Arizona, and any other party; 
(3) to authorize and direct the Secretary to exe-
cute and perform the duties and obligations of the 
Secretary under the settlement agreement and this 
Act; and 
(4) to authorize any actions and appropriations 
necessary for the United States to fulfill the duties 
and obligations of the United States to the Navajo 
Nation, allottees of the Navajo Nation, the Hopi 
Tribe, and allottees of the Hopi Tribe, as provided 
in the settlement agreement and this Act. 
SEC. 4. DEFINITIONS. 
In this Act: 
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(1) 1934 ACT
CASE.—The term ‘‘1934 Act 
case’’ means the litigation styled Honyoama v. Shir-
ley, Case No. CIV 74–842–PHX–EHC (D. Ariz. 
2006). 
(2) ABSTRACT.—The term ‘‘abstract’’ means a 
summary of water rights or uses held or owned by 
any person, as represented in a form substantially 
similar to the form attached as exhibit 3.1.4 to the 
settlement agreement. 
(3) AFY.—The term ‘‘afy’’ means acre-feet per 
year. 
(4) ALLOTMENT.—The term ‘‘allotment’’ means 
an allotment that— 
(A) was originally allotted to an individual 
identified as a Navajo or Hopi Indian in the al-
lotting document; 
(B) is located— 
(i) within the exterior boundaries of 
the Navajo Reservation; 
(ii) within the exterior boundaries of 
the Hopi Reservation; or 
(iii) on land that is— 
(I) off-reservation land; and 
(II) within Apache, Coconino, or 
Navajo County, in the State; and 
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(C) is held in trust by the United States 
for the benefit of an allottee. 
(5) ALLOTTEE.—The term ‘‘allottee’’ means a 
person who holds a beneficial real property interest 
in an allotment. 
(6) AVAILABLE CAP SUPPLY.—The term ‘‘avail-
able CAP supply’’ means, for any given year— 
(A) all fourth priority Colorado River 
water available for delivery through the CAP 
system; 
(B) water available from CAP dams and 
reservoirs other than Modified Roosevelt Dam; 
and 
(C) return flows captured by the Secretary 
for CAP use. 
(7) CAP CONTRACT.—The term ‘‘CAP con-
tract’’ means a long-term contract or subcontract, as 
those terms are used in the CAP repayment stipula-
tion, for delivery of CAP water. 
(8) CAP CONTRACTOR.—The term ‘‘CAP con-
tractor’’ means a person or entity that has entered 
into a long-term contract or subcontract (as those 
terms are used in the CAP repayment stipulation) 
with the United States or the United States and the 
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ing Energy Charge’’, as that term is defined in the 
CAP repayment stipulation. 
(14) CAP REPAYMENT CONTRACT.—The term 
‘‘CAP repayment contract’’ has the meaning given 
the term in section 2 of the Arizona Water Settle-
ments Act (Public Law 108–451; 118 Stat. 3478). 
(15) CAP 
REPAYMENT
STIPULATION.—The 
term ‘‘CAP repayment stipulation’’ means the Stipu-
lated Judgment and the Stipulation for Judgment 
(including exhibits), entered on November 21, 2007, 
in the case styled Central Arizona Water Conserva-
tion District v. United States, et al., No. CIV 95– 
625–TUC–WDB (EHC), No. CIV 95–1720–PHX– 
EHC (Consolidated Action), United States District 
Court for the District of Arizona (including any 
amendments or revisions). 
(16) CAP SYSTEM.—The term ‘‘CAP system’’ 
has the meaning given the term in section 2 of the 
Arizona Water Settlements Act (Public Law 108– 
451; 118 Stat. 3478). 
(17) CAP WATER.—The term ‘‘CAP water’’ 
means ‘‘Project Water’’, as that term is defined in 
the CAP repayment stipulation. 
(18) CENTRAL
ARIZONA
PROJECT
OR
CAP.— 
The term ‘‘Central Arizona Project’’ or ‘‘CAP’’ 
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means the Federal reclamation project authorized 
and constructed by the United States in accordance 
with title III of the Colorado River Basin Project 
Act (43 U.S.C. 1521 et seq.). 
(19) CENTRAL ARIZONA WATER CONSERVATION 
DISTRICT.—The term ‘‘Central Arizona Water Con-
servation District’’ means the political subdivision of 
the State that is the contractor under the CAP re-
payment contract. 
(20) COLORADO
RIVER
COMPACT.—The term 
‘‘Colorado River Compact’’ means the Colorado 
River Compact of 1922, as ratified and reprinted in 
article 2 of chapter 7 of title 45, Arizona Revised 
Statutes. 
(21) COLORADO
RIVER
SYSTEM.—The term 
‘‘Colorado River system’’ has the meaning given the 
term in article II(a) of the Colorado River Compact. 
(22) COMMISSIONER.—The term ‘‘Commis-
sioner’’ means the Commissioner of Reclamation. 
(23) DECREE.—The term ‘‘decree’’, when used 
without a modifying adjective, means— 
(A) the decree of the Supreme Court in the 
case styled Arizona v. California (376 U.S. 340 
(1964)); 
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(B) the Consolidated Decree entered on 
March 27, 2006 (547 U.S. 150), in the case de-
scribed in subparagraph (A); and 
(C) any modifications to the decrees de-
scribed in subparagraphs (A) and (B). 
(24) DIVERT.—The term ‘‘divert’’ means to re-
ceive, withdraw, develop, produce, or capture 
groundwater, surface water, Navajo Nation CAP 
water, or effluent by means of a ditch, canal, flume, 
bypass, pipeline, pit, collection or infiltration gallery, 
conduit, well, pump, turnout, other mechanical de-
vice, or any other human act, including the initial 
impoundment of that water. 
(25) EFFLUENT.— 
(A) IN
GENERAL.—The term ‘‘effluent’’ 
means water that— 
(i) has been used in the State for do-
mestic, municipal, or industrial purposes; 
and 
(ii) is available for use for any pur-
pose. 
(B) EXCLUSION.—The term ‘‘effluent’’ 
does not include water that has been used solely 
for hydropower generation. 
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(26) FOURTH
PRIORITY
COLORADO
RIVER 
WATER.—The term ‘‘fourth priority Colorado River 
water’’ means Colorado River water that is available 
for delivery in the State for satisfaction of entitle-
ments— 
(A) pursuant to contracts, Secretarial res-
ervations, perfected rights, and other arrange-
ments between the United States and water 
users in the State entered into or established 
subsequent to September 30, 1968, for use on 
Federal, State, or privately owned land in the 
State, in a total quantity that does not exceed 
164,652 afy of diversions; and 
(B) after first providing for the delivery of 
water under section 304(e) of the Colorado 
River Basin Project Act (43 U.S.C. 1524(e)), 
pursuant to the CAP repayment contract for 
the delivery of Colorado River water for the 
CAP, including use of Colorado River water on 
Indian land. 
(27) GILA
RIVER
ADJUDICATION.—The term 
‘‘Gila River adjudication’’ means the action pending 
in the Superior Court of the State of Arizona in and 
for the County of Maricopa styled In Re the General 
Adjudication of All Rights To Use Water In The 
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Gila River System and Source, W–1 (Salt), W–2 
(Verde), W–3 (Upper Gila), W–4 (San Pedro) (Con-
solidated). 
(28) GILA RIVER ADJUDICATION COURT.—The 
term ‘‘Gila River adjudication court’’ means the Su-
perior Court of the State of Arizona in and for the 
County of Maricopa, exercising jurisdiction over the 
Gila River adjudication. 
(29) GILA RIVER ADJUDICATION DECREE.—The 
term ‘‘Gila River adjudication decree’’ means the 
judgment or decree entered by the Gila River adju-
dication court, which shall be in substantially the 
same form as the form of judgment attached to the 
settlement agreement as exhibit 3.1.49. 
(30) 
GROUNDWATER.—The 
term 
‘‘ground-
water’’ means all water beneath the surface of the 
earth within the State that is not— 
(A) surface water; 
(B) underground water within the Upper 
Basin; 
(C) Lower Colorado River water; or 
(D) effluent. 
(31) HOPI FEE LAND.—The term ‘‘Hopi fee 
land’’ means land, other than Hopi trust land, 
that— 
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(A) is located in the State; 
(B) is located outside the exterior bound-
aries of the Hopi Reservation; and 
(C) as of the LCR enforceability date, is 
owned by the Hopi Tribe, including ownership 
through a related entity. 
(32) 
HOPI
GROUNDWATER
PROJECT.—The 
term ‘‘Hopi Groundwater Project’’ means the project 
carried out in accordance with section 103(b). 
(33) 
HOPI
GROUNDWATER
PROJECT
AC-
COUNT.—The term ‘‘Hopi Groundwater Project Ac-
count’’ means the account created in the Treasury 
of the United States pursuant to section 104(c). 
(34) HOPI
LAND.—The term ‘‘Hopi land’’ 
means— 
(A) the Hopi Reservation; 
(B) Hopi trust land; and 
(C) Hopi fee land. 
(35) HOPI OM&R TRUST ACCOUNT.—The term 
‘‘Hopi OM&R Trust Account’’ means the account 
created in the Treasury of the United States pursu-
ant to section 104(d). 
(36) HOPI RESERVATION.— 
(A) IN GENERAL.—The term ‘‘Hopi Res-
ervation’’ means the land within the exterior 
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boundaries of the Hopi Reservation, includ-
ing— 
(i) all land withdrawn by the Execu-
tive Order dated December 16, 1882, and 
in which the Hopi Tribe is recognized as 
having an exclusive interest in the case 
styled Healing v. Jones, Case No. CIV– 
579 (D. Ariz. September 28, 1962), or 
that was partitioned to the Hopi Tribe in 
accordance with section 4 of the Act of De-
cember 22, 1974 (Public Law 93–531; 88 
Stat. 1713), and codified in the Navajo- 
Hopi Land Dispute Settlement Act of 
1996 (25 U.S.C. 640d note; Public Law 
104–301); 
(ii) all land partitioned to the Hopi 
Tribe by Judgment of Partition, dated 
February 10, 1977, in the case styled 
Sekaquaptewa v. MacDonald, Case No. 
CIV–579–PCT–JAW (D. Ariz.); 
(iii) all land recognized as part of the 
Hopi Reservation in the 1934 Act case; 
and 
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(iv) all individual allotments made to 
members of the Hopi Tribe within the 
boundaries of the Hopi Reservation. 
(B) MAP.— 
(i) IN
GENERAL.—The ‘‘Hopi Res-
ervation’’ is also depicted more particularly 
on the map attached to the settlement 
agreement as exhibit 3.1.100. 
(ii) APPLICABILITY.—In case of a 
conflict relating to the ‘‘Hopi Reservation’’ 
as depicted on the map under clause (i) 
and the definition in subparagraph (A), 
the definition under subparagraph (A) 
shall control. 
(C) EXCLUSION.—The term ‘‘Hopi Res-
ervation’’ does not include any land held in 
trust by the United States for the benefit of the 
Navajo Nation within the exterior boundaries of 
the Hopi Reservation. 
(37) HOPI
TRIBE.—The term ‘‘Hopi Tribe’’ 
means the Hopi Tribe, a Tribe of Hopi Indians or-
ganized under section 16 of the Act of June 18, 
1934 (25 U.S.C. 476) (commonly known as the ‘‘In-
dian Reorganization Act’’). 
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(38) HOPI
TRUST
LAND.—The term ‘‘Hopi 
trust land’’ means land that— 
(A) is located in the State; 
(B) is located outside the exterior bound-
aries of the Hopi Reservation; and 
(C) as of the LCR enforceability date, is 
held in trust by the United States for the ben-
efit of the Hopi Tribe. 
(39) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(40) INJURY TO QUALITY OF LOWER COLORADO 
RIVER
WATER.—The term ‘‘injury to quality of 
Lower Colorado River water’’ means— 
(A) any diminution or degradation of the 
quality of Lower Colorado River water due to a 
change in the salinity or concentration of natu-
rally occurring chemical constituents of Lower 
Colorado River water; and 
(B) any effect of a change described in 
subparagraph (A) if the change and effect of 
the change are due to the withdrawal, diversion, 
or use of Lower Colorado River water. 
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(41) INJURY TO RIGHTS TO LOWER COLORADO 
RIVER WATER.—The term ‘‘injury to rights to Lower 
Colorado River water’’ means any interference with, 
diminution of, or deprivation of the right of any en-
tity to Lower Colorado River water under applicable 
law. 
(42) INJURY TO WATER QUALITY.—The term 
‘‘injury to water quality’’ means— 
(A) any diminution or degradation of the 
quality of water due to a change in the salinity 
or concentration of naturally occurring chemical 
constituents of water; and 
(B) any effect of a change described in 
subparagraph (A) if the change and effect of 
the change are due to the withdrawal, diversion, 
or use of water. 
(43) INJURY
TO
WATER
RIGHTS.—The term 
‘‘injury to water rights’’ means an interference with, 
diminution of, or deprivation of, water rights under 
applicable law. 
(44) LCR.—The term ‘‘LCR’’ means the Little 
Colorado River, a tributary of the Colorado River in 
Arizona. 
(45) LCR ADJUDICATION.—The term ‘‘LCR 
adjudication’’ means the action pending in the Supe-
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rior Court of the State of Arizona in and for the 
County of Apache styled In Re the General Adju-
dication of All Rights To Use Water In The Little 
Colorado River System and Source, CIV No. 6417. 
(46) LCR ADJUDICATION
COURT.—The term 
‘‘LCR adjudication court’’ means the Superior Court 
of the State of Arizona in and for the County of 
Apache, exercising jurisdiction over the LCR adju-
dication. 
(47) LCR DECREE.—The term ‘‘LCR decree’’ 
means the judgment and decree entered by the LCR 
adjudication court, which shall be in substantially 
the same form as the form of judgment attached to 
the settlement agreement as exhibit 3.1.70. 
(48) LCR ENFORCEABILITY DATE.—The term 
‘‘LCR enforceability date’’ means the date on which 
the Secretary publishes in the Federal Register the 
statement of findings described in section 108(a). 
(49) LCR WATERSHED.—The term ‘‘LCR wa-
tershed’’ means all land located within the surface 
water drainage of the LCR and the tributaries of 
the LCR in the State. 
(50) LEE FERRY.—The term ‘‘Lee Ferry’’ has 
the meaning given the term in article II(e) of the 
Colorado River Compact. 
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(51) LOWER BASIN.—The term ‘‘lower basin’’ 
has the meaning given the term in article II(g) of 
the Colorado River Compact. 
(52) LOWER
COLORADO
RIVER.—The term 
‘‘Lower Colorado River’’ means the portion of the 
Colorado River that is in the United States and 
downstream from Lee Ferry, including any res-
ervoirs on that portion of the Colorado River. 
(53) LOWER COLORADO RIVER BASIN DEVELOP-
MENT
FUND.—The term ‘‘Lower Colorado River 
Basin Development Fund’’ means the fund estab-
lished by section 403 of the Colorado River Basin 
Project Act (43 U.S.C. 1543). 
(54) LOWER COLORADO RIVER WATER.— 
(A) IN GENERAL.—The term ‘‘Lower Colo-
rado River water’’ means the waters of the 
Lower Colorado River, including— 
(i) the waters of the reservoirs on the 
Lower Colorado River; 
(ii) the waters of the tributaries to the 
Lower Colorado River, other than— 
(I) tributaries located within the 
State; 
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(II) tributaries located within the 
Western 
Navajo 
Colorado 
River 
Basin; or 
(III) tributaries of the LCR in 
the State of New Mexico; 
(iii) all underground water that is hy-
draulically connected to the Lower Colo-
rado River; and 
(iv) all underground water that is hy-
draulically connected to tributaries to the 
Lower Colorado River, other than— 
(I) tributaries located within the 
State; 
(II) tributaries located within the 
Western 
Navajo 
Colorado 
River 
Basin; or 
(III) tributaries of the LCR in 
the State of New Mexico. 
(B) APPLICABILITY.—The definition of the 
term ‘‘Lower Colorado River water’’ in subpara-
graph (A) and any definition of the term in-
cluded in the settlement agreement— 
(i) shall apply only to this Act and the 
settlement agreement, as applicable; and 
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(ii) shall not be used in any interpre-
tation of— 
(I) the Colorado River Compact; 
(II) the Boulder Canyon Project 
Act (43 U.S.C. 617 et seq.); 
(III) the Colorado River Basin 
Project Act (43 U.S.C. 1501 et seq.); 
or 
(IV) any contract or agreement 
entered into pursuant to the docu-
ments described in subclauses (I) 
through (III). 
(55) NAVAJO FEE LAND.—The term ‘‘Navajo 
fee land’’ means land, other than Navajo trust land, 
that— 
(A) is located in the State; 
(B) is located outside the exterior bound-
aries of the Navajo Reservation; and 
(C) as of the LCR enforceability date, is 
owned by the Navajo Nation, including through 
a related entity. 
(56) 
NAVAJO-GALLUP
WATER
SUPPLY 
PROJECT.—The term ‘‘Navajo-Gallup water supply 
project’’ means the project authorized, constructed, 
and operated pursuant to the Northwestern New 
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Mexico Rural Water Projects Act (Public Law 111– 
11; 123 Stat. 1368). 
(57) 
NAVAJO
GENERATING
STATION.—The 
term ‘‘Navajo generating station’’ means the Navajo 
generating station, a steam electric generating sta-
tion located on the Navajo Reservation near Page, 
Arizona, and consisting of Units 1, 2, and 3, the 
switchyard facilities, and all facilities and structures 
used or related to the Navajo generating station. 
(58) NAVAJO GROUNDWATER PROJECTS.—The 
term ‘‘Navajo Groundwater Projects’’ means the 
projects carried out in accordance with section 
103(a). 
(59) NAVAJO
GROUNDWATER
PROJECTS
AC-
COUNT.—The term ‘‘Navajo Groundwater Projects 
Account’’ means the account created in the Treasury 
of the United States pursuant to section 104(a). 
(60) NAVAJO LAND.—The term ‘‘Navajo land’’ 
means— 
(A) the Navajo Reservation; 
(B) Navajo trust land; and 
(C) Navajo fee land. 
(61) NAVAJO NATION.— 
(A) IN GENERAL.—The term ‘‘Navajo Na-
tion’’ means the Navajo Nation, a body politic 
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and federally recognized Indian nation, as pro-
vided in the notice of the Department of the In-
terior entitled ‘‘Indian Entities Recognized and 
Eligible To Receive Services From The United 
States Bureau of Indian Affairs’’ (75 Fed. Reg. 
60810 (October 1, 2010)) published pursuant 
to section 104 of the Federally Recognized In-
dian Tribe List Act of 1994 (25 U.S.C. 479a– 
1). 
(B) INCLUSIONS.— 
(i) IN GENERAL.—The term ‘‘Navajo 
Nation’’ includes— 
(I) the Navajo Tribe; 
(II) the Navajo Tribe of Arizona, 
New Mexico & Utah; 
(III) the Navajo Tribe of Indi-
ans; and 
(IV) other similar names. 
(ii) BANDS
AND
CHAPTERS.—The 
term ‘‘Navajo Nation’’ includes all bands 
of Navajo Indians and chapters of the 
Navajo Nation. 
(62) NAVAJO NATION CAP WATER.—The term 
‘‘Navajo Nation CAP water’’ means the 6,411 afy of 
the CAP NIA priority water retained by the Sec-
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retary pursuant to section 104(a)(1)(B)(ii) of the 
Arizona Water Settlements Act of 2004 (Public Law 
108–451; 118 Stat. 3487) and reallocated to the 
Navajo Nation pursuant to section 202(a) of this 
Act. 
(63) NAVAJO NATION WATER DELIVERY CON-
TRACT.—The term ‘‘Navajo Nation water delivery 
contract’’ means the contract entered into pursuant 
to the settlement agreement and section 202(c) of 
this Act for the delivery of Navajo Nation CAP 
water. 
(64) NAVAJO
OM&R
TRUST
ACCOUNT.—The 
term ‘‘Navajo OM&R Trust Account’’ means the ac-
count created in the Treasury of the United States 
pursuant to section 104(b). 
(65) NAVAJO
PROJECT
LEASE.—The term 
‘‘Navajo Project lease’’ means the Indenture of 
Lease made and entered into on September 29, 
1969, between— 
(A) the Navajo Nation, as lessor; and 
(B) lessees— 
(i) the Arizona Public Service Com-
pany (including any successor or assignee); 
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(ii) the Department of Water and 
Power of the City of Los Angeles (includ-
ing any successor or assignee); 
(iii) the Nevada Power Company (in-
cluding any successor or assignee); 
(iv) the Salt River Project Agricul-
tural Improvement and Power District (in-
cluding any successor or assignee); and 
(v) the Tucson Gas & Electric Com-
pany (including any successor or assignee). 
(66) NAVAJO
PROJECT
LESSEES.—The term 
‘‘Navajo Project lessees’’ means the lessees described 
in paragraph (65)(B). 
(67) NAVAJO RESERVATION.— 
(A) IN GENERAL.—The term ‘‘Navajo Res-
ervation’’ means land that is within the exterior 
boundaries of the Navajo Reservation in the 
State, as defined by the Act of June 14, 1934 
(48 Stat. 960, chapter 521), including— 
(i) all land— 
(I) withdrawn by the Executive 
Order dated December 16, 1882, and 
partitioned to the Navajo Nation in 
accordance with the Act of December 
22, 1974 (Public Law 93–531; 88 
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Stat. 1713), and codified in the Nav-
ajo-Hopi Land Dispute Settlement 
Act of 1996 (25 U.S.C. 640d note; 
Public Law 104–301); and 
(II) partitioned to the Navajo 
Nation by Judgment of Partition, 
dated February 10, 1977, in the case 
styled Sekaquaptewa v. MacDonald, 
Case No. CIV–579–PCT–JAW (D. 
Ariz.); and 
(ii) all land taken into trust as a part 
of the Navajo Reservation pursuant to sec-
tion 11 of the Act of December 22, 1974 
(25 U.S.C. 640d–10) and codified in the 
Navajo-Hopi Land Dispute Settlement Act 
of 1996 (25 U.S.C. 640d note; Public Law 
104–301). 
(B) MAP.— 
(i) IN GENERAL.—The ‘‘Navajo Res-
ervation’’ is also depicted more particularly 
on the map attached to the settlement 
agreement as exhibit 3.1.100. 
(ii) APPLICABILITY.—In case of a 
conflict relating to the ‘‘Navajo Reserva-
tion’’ as depicted on the map under clause 
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(i) and the definition in subparagraph (A), 
the map under clause (i) shall control. 
(C) EXCLUSION.—Except as provided in 
paragraph (36)(C), the term ‘‘Navajo Reserva-
tion’’ does not include any land within the 
boundaries of the Hopi Reservation. 
(68) NAVAJO TRUST LAND.—The term ‘‘Navajo 
trust land’’ means land that— 
(A) is located in the State; 
(B) is located outside the exterior bound-
aries of the Navajo Reservation; and 
(C) as of the LCR enforceability date, is 
held in trust by the United States for the ben-
efit of the Navajo Nation. 
(69) NORVIEL
DECREE.—The term ‘‘Norviel 
Decree’’ means the final decree of the State of Ari-
zona Superior Court in and for the County of 
Apache in the case styled The St. John’s Irrigation 
Company and the Meadows Reservoir Irrigation 
Company, et al. v. Round Valley Water Storage & 
Ditch 
Company, 
Eagar 
Irrigation 
Company, 
Springerville Water Right and Ditch Company, et 
al., Case No. 569 (Apr. 29, 1918), including any 
modifications to the final decree. 
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(70) OM&R.—The term ‘‘OM&R’’ means oper-
ation, maintenance, and replacement. 
(71) PARTY.—The term ‘‘party’’ means a per-
son who is a signatory to the settlement agreement. 
(72) PEABODY.—The term ‘‘Peabody’’ means 
the Peabody Western Coal Company, including any 
affiliate or successor of the Peabody Western Coal 
Company. 
(73) PERSON.— 
(A) IN
GENERAL.—The term ‘‘person’’ 
means— 
(i) an individual; 
(ii) a public or private corporation; 
(iii) a company; 
(iv) a partnership; 
(v) a joint venture; 
(vi) a firm; 
(vii) an association; 
(viii) a society; 
(ix) an estate or trust; 
(x) a private organization or enter-
prise; 
(xi) the United States; 
(xii) an Indian tribe; 
(xiii) a State, territory, or country; 
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(xiv) a governmental entity; and 
(xv) a political subdivision or munic-
ipal corporation organized under or subject 
to the constitution and laws of the State. 
(B) INCLUSIONS.—The term ‘‘person’’ in-
cludes an officer, director, agent, insurer, rep-
resentative, employee, attorney, assign, sub-
sidiary, affiliate, enterprise, legal representative, 
any predecessor and successor in interest and 
any heir of a predecessor and successor in in-
terest of a person. 
(74) PRECONSTRUCTION ACTIVITY.— 
(A) 
IN
GENERAL.—The 
term 
‘‘preconstruction activity’’ means the work asso-
ciated with the preplanning, planning, and de-
sign phases of construction, as those terms are 
defined in paragraphs (1) through (3) of section 
900.112(a) of title 25, Code of Federal Regula-
tions (or successor regulation). 
(B) 
INCLUSION.—The 
term 
‘‘preconstruction activity’’ includes activities de-
scribed in section 900.112(b) of title 25, Code 
of Federal Regulations (or successor regula-
tion). 
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(75) RAILROAD
GRANTED
LAND.—The term 
‘‘Railroad granted land’’ means the land granted 
(including Federal rights-of-way and easements) to 
Navajo Project lessees in accordance with sections 
1.16 and 2 of the grant issued by the Secretary and 
dated January 19, 1971. 
(76) RIGHTS
TO
LOWER
COLORADO
RIVER 
WATER.—The term ‘‘rights to Lower Colorado River 
water’’ means any and all rights in or to Lower Col-
orado River water under applicable law. 
(77) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Interior (or the designee 
of the Secretary). 
(78) SETTLEMENT AGREEMENT.— 
(A) IN GENERAL.—The term ‘‘settlement 
agreement’’ means the 2012 agreement, includ-
ing exhibits, entitled the ‘‘Navajo-Hopi Little 
Colorado River Water Rights Settlement Agree-
ment’’. 
(B) INCLUSIONS.—The term ‘‘settlement 
agreement’’ includes— 
(i) any amendments necessary to 
make the settlement agreement consistent 
with this Act; and 
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(ii) any other amendments approved 
by the parties to the settlement agreement 
and the Secretary. 
(79) STATE.—The term ‘‘State’’ means the 
State of Arizona. 
(80) STATE
IMPLEMENTING
LAW.—The term 
‘‘State implementing law’’ means a law enacted by 
the State that includes terms that are substantially 
similar to the terms of the settlement agreement and 
attached to the settlement agreement as exhibit 
3.1.128. 
(81) SURFACE WATER.— 
(A) IN
GENERAL.—The term ‘‘surface 
water’’ means all water in the State that is ap-
propriable under State law. 
(B) EXCLUSIONS.—The term ‘‘surface 
water’’ does not include— 
(i) appropriable water that is located 
within the upper basin; or 
(ii) Lower Colorado River water. 
(82) UNDERGROUND WATER.— 
(A) IN
GENERAL.—The term ‘‘under-
ground water’’ means all water beneath the sur-
face of the earth within the boundaries of the 
State, regardless of the legal characterization of 
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that water as appropriable or nonappropriable 
under applicable law. 
(B) EXCLUSION.—The term ‘‘underground 
water’’ does not include effluent. 
(83) UPPER BASIN.—The term ‘‘upper basin’’ 
has the meaning given the term in article II(f) of 
the Colorado River Compact. 
(84) 
UPPER
BASIN
COMPACT.—The 
term 
‘‘Upper Basin Compact’’ means the Upper Colorado 
River Basin Compact of 1948, as ratified and re-
printed in article 3 of chapter 7 of title 45, Arizona 
Revised Statutes. 
(85) UPPER BASIN WATER.—The term ‘‘upper 
basin water’’ means the waters of the upper basin. 
(86) WATER.—The term ‘‘water’’, when used 
without a modifying adjective, means— 
(A) groundwater; 
(B) surface water; and 
(C) effluent. 
(87) WATER RIGHT.—The term ‘‘water right’’ 
means any right in or to water under Federal, State, 
or law. 
(88) WESTERN
NAVAJO
COLORADO
RIVER 
BASIN.—The term ‘‘Western Navajo Colorado River 
Basin’’ means the portions of the Navajo Reserva-
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(1) the settlement agreement, including all ex-
hibits to the settlement agreement requiring the sig-
nature of the Secretary; and 
(2) any amendments to the settlement agree-
ment, including any amendment to any exhibit to 
the settlement agreement requiring the signature of 
the Secretary, necessary to make the settlement 
agreement consistent with this Act. 
(d) DISCRETION
OF
THE SECRETARY.—The Sec-
retary may execute any other amendment to the settle-
ment agreement, including any amendment to any exhibit 
to the settlement agreement requiring the signature of the 
Secretary, that is not inconsistent with this Act if the 
amendment does not require congressional approval pur-
suant to the Trade and Intercourse Act (25 U.S.C. 177) 
or other applicable Federal law (including regulations). 
SEC. 102. WATER RIGHTS. 
(a) WATER RIGHTS TO BE HELD IN TRUST.— 
(1) NAVAJO NATION WATER RIGHTS.—All water 
rights of the Navajo Nation for the Navajo Reserva-
tion and land held in trust by the United States for 
the Navajo Nation and allottees of the Navajo Na-
tion and all Navajo Nation CAP water shall be held 
in trust by the United States for the benefit of the 
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Navajo Nation and allottees of the Navajo Nation, 
respectively. 
(2) HOPI
TRIBE
WATER
RIGHTS.—All water 
rights of the Hopi Tribe for the Hopi Reservation 
and land held in trust by the United States for the 
Hopi Tribe and allottees of the Hopi Tribe shall be 
held in trust by the United States for the benefit of 
the Hopi Tribe and allottees of the Hopi Tribe, re-
spectively. 
(b) FORFEITURE AND ABANDONMENT.—Any water 
right held in trust by the United States under subsection 
(a) shall not be subject to loss by nonuse, forfeiture, aban-
donment, or any other provision of law. 
(c) USE OF WATER DIVERTED FROM LCR WATER-
SHED.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, the Navajo Nation may— 
(A) divert surface water or groundwater 
described in paragraph 4.0 of the settlement 
agreement; and 
(B) subject to the condition that the water 
remain on the Navajo Reservation, move any 
water diverted under subparagraph (A) out of 
the LCR watershed for use by the Navajo Na-
tion. 
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(2) EFFECT
OF
DIVERSION.—Any water di-
verted and moved out of the LCR watershed pursu-
ant to paragraph (1)— 
(A) shall be considered to be a part of the 
LCR; and 
(B) shall not be considered to be part of, 
or charged against, the consumptive use appor-
tionment made— 
(i) to the State by article III(a)(1) of 
the Upper Basin Compact; or 
(ii) to the upper basin by article III(a) 
of the Colorado River Compact. 
(d) WATER RIGHTS OF ALLOTTEES.— 
(1) NAVAJO RESERVATION ALLOTMENTS.— 
(A) IN GENERAL.—The right of an allottee 
(and of the United States acting as trustee for 
an allottee), to use water on an allotment lo-
cated on the Navajo Reservation shall be— 
(i) satisfied solely from the water se-
cured to the Navajo Nation (and to the 
United States acting as trustee for the 
Navajo Nation) by the LCR decree; and 
(ii) subject to the terms of the LCR 
decree. 
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(B) ADMINISTRATION.—A right under sub-
paragraph (A) shall be enforceable only pursu-
ant to the Navajo Nation water code, which 
shall provide allottees a process to enforce such 
rights against the Navajo Nation. 
(2) HOPI RESERVATION ALLOTMENTS.— 
(A) IN GENERAL.—The right of an allottee 
(and of the United States acting as trustee for 
an allottee), to use water on an allotment lo-
cated on the Hopi Reservation shall be— 
(i) satisfied solely from the water se-
cured to the Hopi Tribe (and to the United 
States acting as trustee for the Hopi 
Tribe) by the LCR decree; and 
(ii) subject to the terms of the LCR 
decree. 
(B) ADMINISTRATION.—A right under sub-
paragraph (A) shall be enforceable only pursu-
ant to the Hopi Tribe water code, which shall 
provide allottees a process to enforce such 
rights against the Hopi Tribe. 
(3) 
OFF-RESERVATION
ALLOTMENTS.—The 
right of an allottee (and of the United States acting 
as trustee for an allottee), to use water on an allot-
ment located off the Navajo and Hopi Reservations 
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shall be as described in the abstracts attached to the 
settlement agreement as exhibit 4.7.3. 
SEC. 103. AUTHORIZATION FOR CONSTRUCTION OF MUNIC-
IPAL, DOMESTIC, COMMERCIAL, AND INDUS-
TRIAL WATER PROJECTS. 
(a) NAVAJO GROUNDWATER PROJECTS.— 
(1) IN GENERAL.—Subject to the availability of 
appropriations, the Secretary, acting through the 
Commissioner, shall plan, design, and construct the 
water diversion and delivery features of the Navajo 
Groundwater Projects. 
(2) LEAD AGENCY.—The Bureau of Reclama-
tion shall serve as the lead agency for any activity 
relating to the planning, design, and construction of 
the water diversion and delivery features of the Nav-
ajo Groundwater Projects. 
(3) SCOPE.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the scope of the planning, design, 
and construction activities for the Navajo 
Groundwater Projects shall be as generally de-
scribed in the documents prepared by Brown & 
Caldwell entitled— 
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(i) ‘‘Final Summary Report Leupp, 
Birdsprings, and Tolani Lake Water Dis-
tribution System Analysis (May 2008)’’; 
(ii) ‘‘Final Summary Report Dilkon 
and Teestoh Water Distribution System 
Analysis (May 2008)’’; 
(iii) ‘‘Raw Water Transmission Pipe-
line 
Alignment 
Alternative 
Evaluation 
Final Report (May 2008)’’; and 
(iv) ‘‘Ganado C-Aquifer Project Re-
port (October 2008)’’. 
(B) REVIEW.— 
(i) IN
GENERAL.—Before beginning 
construction activities for the Navajo 
Groundwater 
Projects, 
the 
Secretary 
shall— 
(I) review the proposed designs 
of the Navajo Groundwater Projects; 
and 
(II) carry out value engineering 
analyses of the proposed designs. 
(ii) NEGOTIATIONS WITH THE NAVAJO 
NATION.—As necessary, the Secretary shall 
periodically negotiate and reach agreement 
with the Navajo Nation regarding any 
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change to the proposed designs of the Nav-
ajo Groundwater Projects if, on the basis 
of the review under clause (i), the Sec-
retary determines that a change is nec-
essary— 
(I) to meet applicable industry 
standards; 
(II) 
to 
ensure 
the 
Navajo 
Groundwater Projects will be con-
structed for not more than the 
amount set forth in paragraph (4); 
and 
(III) to improve the cost-effec-
tiveness of the delivery of water. 
(4) FUNDING.— 
(A) IN
GENERAL.—The total amount of 
obligations incurred by the Secretary in car-
rying out this subsection shall not exceed 
$199,000,000, except that the total amount of 
obligations shall be increased or decreased, as 
appropriate, based on ordinary fluctuations 
from May 1, 2011, in construction cost indices 
applicable to the types of construction involved 
in the planning, design, and construction of the 
Navajo Groundwater Projects. 
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(B) NO REIMBURSEMENT.—The Secretary 
shall not be reimbursed by any entity, including 
the Navajo Nation, for any amounts expended 
by the Secretary in carrying out this subsection. 
(C) PROJECT EFFICIENCIES.—If the total 
cost of planning, design, and construction ac-
tivities of the Navajo Groundwater Projects re-
sults in cost savings and is less than the 
amounts authorized to be obligated under this 
paragraph, the Secretary, at the request of the 
Navajo Nation, may— 
(i) use those cost savings to carry out 
capital improvement projects associated 
with the Navajo Groundwater Projects; or 
(ii) transfer those cost savings to the 
Navajo OM&R Trust Account. 
(5) APPLICABILITY OF THE ISDEAA.— 
(A) IN GENERAL.—At the request of the 
Navajo Nation and in accordance with the In-
dian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450 et seq.), the Secretary 
shall enter into 1 or more agreements with the 
Navajo Nation to carry out this subsection. 
(B) ADMINISTRATION.—The Commissioner 
and the Navajo Nation shall negotiate the cost 
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of any oversight activity carried out by the Bu-
reau of Reclamation for an agreement entered 
into under subparagraph (A), subject to the 
condition that the total cost for the oversight 
shall not exceed 4.0 percent of the total costs 
of the Navajo Groundwater Projects. 
(6) 
TITLE
TO
NAVAJO
GROUNDWATER 
PROJECTS.— 
(A) IN
GENERAL.—The Secretary shall 
convey to the Navajo Nation title to each of the 
Navajo Groundwater Projects on the date on 
which the Secretary issues a notice of substan-
tial completion that— 
(i) the infrastructure constructed is 
capable of storing, diverting, treating, 
transmitting, and distributing a supply of 
water as generally set forth in the final 
project design described in paragraph (3); 
and 
(ii) the Secretary has consulted with 
the Navajo Nation regarding the proposed 
finding that the respective Navajo Ground-
water Project is substantially complete. 
(B) LIMITATION ON LIABILITY.—Effective 
beginning on the date on which the Secretary 
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transfers to the Navajo Nation title to the 
Leupp-Dilkon Groundwater Project or the 
Ganado Groundwater Project under subpara-
graph (A), the United States shall not be held 
liable by any court for damages arising out of 
any act, omission, or occurrence relating to the 
facilities transferred, other than damages 
caused by an intentional act or an act of neg-
ligence committed by the United States, or by 
employees or agents of the United States, prior 
to the date on which the Secretary transfers 
title to the Leupp-Dilkon Groundwater Project 
or the Ganado Groundwater Project to the Nav-
ajo Nation. 
(C) OM&R OBLIGATION OF THE UNITED 
STATES
AFTER
CONVEYANCE.—The United 
States shall have no obligation to pay for the 
OM&R costs of the Navajo Groundwater 
Projects beginning on the date on which— 
(i) title to the Navajo Groundwater 
Projects is transferred to the Navajo Na-
tion; and 
(ii) the amounts required to be depos-
ited in the Navajo OM&R Trust Account 
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pursuant to section 104(b) have been de-
posited in that account. 
(7) TECHNICAL
ASSISTANCE.—Subject to the 
availability of appropriations, the Secretary shall 
provide technical assistance, including operation and 
management training, to the Navajo Nation to pre-
pare the Navajo Nation for the operation of the 
Navajo Groundwater Projects. 
(8) PROJECT MANAGEMENT COMMITTEE.—The 
Secretary shall facilitate the formation of a project 
management committee composed of representatives 
from the Bureau of Reclamation, the Bureau of In-
dian Affairs, and the Navajo Nation— 
(A) to review cost factors and budgets for 
construction, operation, and maintenance activi-
ties for the Navajo Groundwater Projects; 
(B) to improve management of inherently 
governmental functions through enhanced com-
munication; and 
(C) to seek additional ways to reduce over-
all costs for the Navajo Groundwater Projects. 
(9) AUTHORIZATION TO CONSTRUCT.— 
(A) IN GENERAL.—The Secretary is au-
thorized to construct the Navajo Groundwater 
Projects beginning on the day after the date on 
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which the Secretary publishes in the Federal 
Register the statement of findings under section 
108(a). 
(B) PRECONSTRUCTION ACTIVITIES.—Not-
withstanding subparagraph (A), the Secretary 
is authorized to use amounts appropriated to 
the Navajo Groundwater Projects Account pur-
suant to section 104(a) to carry out prior to the 
LCR enforceability date preconstruction activi-
ties for the Navajo Groundwater Projects. 
(b) HOPI GROUNDWATER PROJECT.— 
(1) IN GENERAL.—Subject to the availability of 
appropriations, the Secretary, acting through the 
Commissioner, shall plan, design, and construct the 
water diversion and delivery features of the Hopi 
Groundwater Project. 
(2) LEAD AGENCY.—The Bureau of Reclama-
tion shall serve as the lead agency for any activity 
relating to the planning, design, and construction of 
the water diversion and delivery features of the Hopi 
Groundwater Project. 
(3) SCOPE.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the scope of the planning, design, 
and 
construction 
activities 
for 
the 
Hopi 
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Groundwater Project shall be as generally de-
scribed in the document entitled ‘‘Hopi Tribe 
2012 Little Colorado River Adjudication Settle-
ment Domestic, Commercial, Municipal and In-
dustrial Water System Memorandum (February 
2012)’’ by Dowl HKM. 
(B) REVIEW.— 
(i) IN
GENERAL.—Before beginning 
construction 
activities, 
the 
Secretary 
shall— 
(I) review the proposed design of 
the Hopi Groundwater Project; and 
(II) carry out value engineering 
analyses of the proposed design. 
(ii) NEGOTIATIONS
WITH
THE
HOPI 
TRIBE.—As necessary, the Secretary shall 
periodically negotiate and reach agreement 
with the Hopi Tribe regarding any change 
to the proposed design of the Hopi 
Groundwater Project if, on the basis of the 
review under clause (i), the Secretary de-
termines that a change is necessary— 
(I) to meet applicable industry 
standards; 
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(II) to ensure that the Hopi 
Groundwater Project will be con-
structed for not more than the 
amount set forth in paragraph (4); 
and 
(III) to improve the cost-effec-
tiveness of the delivery of water. 
(4) FUNDING.— 
(A) IN
GENERAL.—The total amount of 
obligations incurred by the Secretary in car-
rying out this subsection shall not exceed 
$113,000,000, except that the total amount of 
obligations shall be increased or decreased, as 
appropriate, based on ordinary fluctuations 
from May 1, 2011, in construction cost indices 
applicable to the types of construction involved 
in the planning, design, and construction of the 
Hopi Groundwater Project. 
(B) NO REIMBURSEMENT.—The Secretary 
shall not be reimbursed by any entity, including 
the Hopi Tribe, for any amounts expended by 
the Secretary in carrying out this subsection. 
(C) PROJECT EFFICIENCIES.—If the total 
cost of planning, design, and construction ac-
tivities of the Hopi Groundwater Project results 
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in cost savings and is less than the amounts au-
thorized to be obligated under this paragraph, 
the Secretary, at the request of the Hopi Tribe, 
may— 
(i) use those cost savings to carry out 
capital improvement projects associated 
with the Hopi Groundwater Project; or 
(ii) transfer those cost savings to the 
Hopi OM&R Trust Account. 
(5) APPLICABILITY OF THE ISDEAA.— 
(A) IN GENERAL.—At the request of the 
Hopi Tribe and in accordance with the Indian 
Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.), the Secretary shall 
enter into 1 or more agreements with the Hopi 
Tribe to carry out this subsection. 
(B) ADMINISTRATION.—The Commissioner 
and the Hopi Tribe shall negotiate the cost of 
any oversight activity carried out by the Bureau 
of Reclamation for an agreement entered into 
under subparagraph (A), subject to the condi-
tion that the total cost for the oversight shall 
not exceed 4.0 percent of the total costs of the 
Hopi Groundwater Project. 
(6) TITLE TO HOPI GROUNDWATER PROJECT.— 
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(A) IN
GENERAL.—The Secretary shall 
convey to the Hopi Tribe title to the Hopi 
Groundwater Project on the date on which the 
Secretary issues a notice of substantial comple-
tion that— 
(i) the infrastructure constructed is 
capable of storing, diverting, treating, 
transmitting, and distributing a supply of 
water as generally set forth in the final 
project design described in paragraph (3); 
and 
(ii) the Secretary has consulted with 
the Hopi Tribe regarding the proposed 
finding that the Hopi Groundwater Project 
is substantially complete. 
(B) LIMITATION ON LIABILITY.—Effective 
beginning on the date on which the Secretary 
transfers to the Hopi Tribe title to the Hopi 
Groundwater Project under subparagraph (A), 
the United States shall not be held liable by 
any court for damages arising out of any act, 
omission, or occurrence relating to the facilities 
transferred, other than damages caused by an 
intentional act or an act of negligence com-
mitted by the United States, or by employees or 
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agents of the United States, prior to the date 
on which the Secretary transfers title to the 
Hopi Groundwater Project to the Hopi Tribe. 
(C) OM&R OBLIGATION OF THE UNITED 
STATES
AFTER
CONVEYANCE.—The United 
States shall have no obligation to pay for the 
OM&R costs of the Hopi Groundwater Project 
beginning on the date on which— 
(i) title to the Hopi Groundwater 
Project is transferred to the Hopi Tribe; 
and 
(ii) the amounts required to be depos-
ited in the Hopi OM&R Trust Account 
pursuant to section 104(d) have been de-
posited in that account. 
(7) TECHNICAL
ASSISTANCE.—Subject to the 
availability of appropriations, the Secretary shall 
provide technical assistance, including operation and 
management training, to the Hopi Tribe to prepare 
the Hopi Tribe for the operation of the Hopi 
Groundwater Project. 
(8) PROJECT MANAGEMENT COMMITTEE.—The 
Secretary shall facilitate the formation of a project 
management committee composed of representatives 
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from the Bureau of Reclamation, the Bureau of In-
dian Affairs, and the Hopi Tribe— 
(A) to review cost factors and budgets for 
construction, operation, and maintenance activi-
ties for the Hopi Groundwater Project; 
(B) to improve management of inherently 
governmental activities through enhanced com-
munication; and 
(C) to seek additional ways to reduce over-
all costs for the Hopi Groundwater Project. 
(9) AUTHORIZATION TO CONSTRUCT.— 
(A) IN GENERAL.—The Secretary is au-
thorized to construct the Hopi Groundwater 
Project beginning on the day after the date on 
which the Secretary publishes in the Federal 
Register the statement of findings under section 
108(a). 
(B) PRECONSTRUCTION ACTIVITIES.—Not-
withstanding subparagraph (A), the Secretary 
is authorized to use amounts appropriated to 
the Hopi Groundwater Project Account pursu-
ant to section 104(c) to carry out prior to the 
LCR enforceability date preconstruction activi-
ties for the Hopi Groundwater Project. 
(c) N-AQUIFER MANAGEMENT PLAN.— 
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(1) IN GENERAL.—Prior to the LCR enforce-
ability date, the Secretary, acting through the Direc-
tor of the United States Geological Survey and in 
consultation with the Navajo Nation and the Hopi 
Tribe, is authorized to use amounts appropriated to 
the N-Aquifer Account pursuant to section 104(e) to 
conduct modeling and monitoring activities of the N- 
Aquifer as provided for in paragraph 6.2 of the set-
tlement agreement. 
(2) CONTINUING ASSISTANCE.—After the LCR 
enforceability date, the Secretary, in consultation 
with the Navajo Nation and the Hopi Tribe, is au-
thorized to use amounts appropriated to the N-Aqui-
fer Account pursuant to section 104(e) to assist the 
Navajo Nation and the Hopi Tribe in implementing 
the N-Aquifer Management Plan and the Pasture 
Canyon Springs Protection Program Account pursu-
ant to section 104(f) to assist the Navajo Nation 
and the Hopi Tribe in implementing the Pasture 
Canyon Springs Protection Program, both as de-
scribed in paragraph 6.2 of the settlement agree-
ment. 
(3) LIMITED LIABILITY.—The Secretary shall 
have no liability with respect to the management of 
the N-Aquifer, subject to the condition that the Sec-
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retary complies with the responsibilities of the Sec-
retary, as set forth in the N-Aquifer Management 
Plan. 
SEC. 104. FUNDING. 
(a) NAVAJO GROUNDWATER PROJECTS ACCOUNT.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States an account, to be 
known as the ‘‘Navajo Groundwater Projects Ac-
count’’, to be administered by the Secretary, con-
sisting of the amounts deposited in the account 
under paragraph (2), together with any interest ac-
crued by those amounts, for use by the Navajo Na-
tion in constructing the Navajo Groundwater 
Projects. 
(2) TRANSFERS TO ACCOUNT.— 
(A) IN
GENERAL.—Subject to subpara-
graph (C), there are authorized to be appro-
priated to the Secretary for deposit in the Nav-
ajo Groundwater Projects Account— 
(i) $199,000,000, to remain available 
until expended; less 
(ii) the amounts deposited in the ac-
count under subparagraph (B). 
(B) TRANSFERS FROM OTHER SOURCES.— 
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(i) LOWER
COLORADO
RIVER
BASIN 
DEVELOPMENT FUND.— 
(I) IN GENERAL.—The Secretary 
of the Treasury shall transfer, without 
further appropriation, $25,000,000 to 
the Navajo Groundwater Projects Ac-
count from the Future Indian Water 
Settlement Subaccount of the Lower 
Colorado River Basin Development 
Fund established pursuant to section 
403(f)(2)(D)(vi) of the Colorado River 
Basin 
Project 
Act 
(43 
U.S.C. 
1543(f)(2)(D)(vi)). 
(II) 
AVAILABILITY.—The 
amounts transferred under subclause 
(I) shall not be available to the Sec-
retary for expenditure until the date 
on which the Secretary publishes in 
the Federal Register the statement of 
findings under section 108(a). 
(ii) RECLAMATION
WATER
SETTLE-
MENTS FUND.— 
(I) IN GENERAL.—If amounts re-
main available for expenditure in the 
Reclamation Water Settlements Fund 
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established by section 10501 of the 
Omnibus Public Land Management 
Act of 2009 (43 U.S.C. 407), the Sec-
retary of the Treasury shall transfer 
to the Navajo Groundwater Projects 
Account, without further appropria-
tion, not more than $50,000,000. 
(II) 
AVAILABILITY.—The 
amounts transferred under subclause 
(I) shall not be available to the Sec-
retary for expenditure until the date 
on which the Secretary publishes in 
the Federal Register the statement of 
findings under section 108(a). 
(iii) STATE
CONTRIBUTION.—Pursu-
ant to subparagraph 13.22 of the settle-
ment agreement, the State shall transfer to 
the Navajo Groundwater Projects Account 
$1,000,000. 
(C) 
FLUCTUATION
IN
DEVELOPMENT 
COSTS.—The amount authorized to be appro-
priated under subparagraph (A)(i) and depos-
ited in the Navajo Groundwater Projects Ac-
count shall be increased or decreased, as appro-
priate, by such amounts as may be justified by 
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reason of ordinary fluctuations in development 
costs occurring after May 1, 2011, as indicated 
by engineering cost indices applicable to the 
type of construction involved, until the Sec-
retary declares that the Navajo Groundwater 
Projects are substantially complete. 
(3) MANAGEMENT OF ACCOUNT.— 
(A) IN
GENERAL.—The Secretary shall 
manage the Navajo Groundwater Projects Ac-
count in a manner that is consistent with— 
(i) the American Indian Trust Fund 
Management Reform Act of 1994 (25 
U.S.C. 4001 et seq.); and 
(ii) this subsection. 
(B) INVESTMENTS.—The Secretary shall 
invest amounts in the Navajo Groundwater 
Projects Account in accordance with— 
(i) the Act of April 1, 1880 (25 
U.S.C. 161); 
(ii) the first section of the Act of June 
24, 1938 (25 U.S.C. 162a); and 
(iii) obligations of Federal corpora-
tions and Federal Government-sponsored 
entities, the charter documents of which 
provide that the obligations of the entities 
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are lawful investments for federally man-
aged funds, including— 
(I) obligations of the United 
States Postal Service described in sec-
tion 2005 of title 39, United States 
Code; 
(II) bonds and other obligations 
of the Tennessee Valley Authority de-
scribed in section 15d of the Ten-
nessee Valley Authority Act of 1933 
(16 U.S.C. 831n–4); 
(III) mortgages, obligations, or 
other securities of the Federal Home 
Loan Mortgage Corporation described 
in section 303 of the Federal Home 
Loan Mortgage Corporation Act (12 
U.S.C. 1452); and 
(IV) bonds, notes, or debentures 
of the Commodity Credit Corporation 
described in section 4 of the Act of 
March 8, 1938 (15 U.S.C. 713a–4). 
(C) CREDITS TO ACCOUNT.—The interest 
on, and the proceeds from, the sale or redemp-
tion of, any obligations held in the Navajo 
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Groundwater Projects Account shall be credited 
to, and form a part of, the account. 
(4) AVAILABILITY OF AMOUNTS AND INVEST-
MENT EARNINGS.— 
(A) IN GENERAL.—Except as provided in 
section 103(a)(9), amounts appropriated to and 
deposited in the Navajo Groundwater Projects 
Account shall not be available to the Secretary 
for expenditure until the date on which the Sec-
retary publishes in the Federal Register the 
statement of findings under section 108(a). 
(B) INVESTMENT EARNINGS.—Investment 
earnings on amounts deposited in the Navajo 
Groundwater Projects Account under paragraph 
(3) shall not be available to the Secretary for 
expenditure until the date on which the Sec-
retary publishes in the Federal Register the 
statement of findings under section 108(a). 
(b) NAVAJO OM&R TRUST ACCOUNT.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a trust account, 
to be known as the ‘‘Navajo OM&R Trust Account’’, 
to be administered by the Secretary and to be avail-
able until expended, consisting of the amounts de-
posited in the account under paragraph (2), together 
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subparagraph 5.4.1 of the settlement 
agreement; 
(ii) subject to subparagraphs 6.3 and 
13.8 of the settlement agreement, to assert 
claims for injuries to, and seek enforce-
ment of, the rights of the Hopi Tribe 
under the settlement agreement or this 
Act, in any Federal or State court of com-
petent jurisdiction; 
(iii) to assert claims for injuries to, 
and seek enforcement of, the rights of the 
Hopi Tribe under the LCR decree; 
(iv) to participate in the LCR adju-
dication to the extent provided in the set-
tlement agreement; 
(v) except as provided in the settle-
ment agreement, to object to any claims 
for water rights, injury to water rights, or 
injury to water quality by or for any In-
dian tribe or the United States on behalf 
of the Indian tribe; 
(vi) except as provided in the settle-
ment agreement, to assert past, present, or 
future claims for injury to water rights, in-
jury to water quality, or any other claims 
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