(i) the operation of, and the diversion 
and conveyance of water by, the Regional 
Water System is in accordance with the 
Settlement Agreement; 
(ii) the wells in the Regional Water 
System are used in conjunction with the 
surface water supply of the Regional 
Water System to ensure a reliable firm 
supply of water to all users of the Regional 
Water System, consistent with the intent 
of the Settlement Agreement that surface 
supplies will be used to the maximum ex-
tent feasible; 
(iii) the respective obligations regard-
ing delivery, payment, operation, and man-
agement are enforceable; and 
(iv) the County has the right to serve 
any new water users located on non-Pueblo 
land in the Pojoaque Basin; and 
(B) allow for any aquifer storage and re-
covery projects that are approved by the Office 
of the New Mexico State Engineer. 
(d) EFFECT.—Nothing in this Act precludes the Op-
erating Agreement from authorizing phased or interim op-
erations if the Regional Water System is constructed in 
phases. 
SEC. 103. ACQUISITION OF PUEBLO WATER SUPPLY FOR 
THE REGIONAL WATER SYSTEM. 
(a) IN GENERAL.—For the purpose of providing a 
reliable firm supply of water from the Regional Water Sys-
tem for the Pueblos in accordance with the Settlement 
Agreement, the Secretary, on behalf of the Pueblos, 
shall— 
(1) acquire water rights to— 
(A) 302 acre-feet of Nambe reserved water 
described in section 2.6.2 of the Settlement 
Agreement pursuant to section 107(c)(1)(C); 
and 
(B) 1141 acre-feet from water acquired by 
the County for water rights commonly referred 
to as ‘‘Top of the World’’ rights in the Aamodt 
Case; 
(2) enter into a contract with the Pueblos for 
1,079 acre-feet in accordance with section 11 of the 
San Juan-Chama Project Act; and 
(3) by application to the State Engineer, seek 
approval to divert the water acquired and made 
available under paragraphs (1) and (2) at the points 
of diversion for the Regional Water System, con-
sistent with the Settlement Agreement and the Cost- 
Sharing and System Integration Agreement. 
(b) FORFEITURE.—The nonuse of the water supply 
secured by the Secretary for the Pueblos under subsection 
(a) shall in no event result in forfeiture, abandonment, re-
linquishment, or other loss thereof. 
(c) TRUST.—The Pueblo water supply secured under 
subsection (a) shall be held by the United States in trust 
for the Pueblos. 
(d) APPLICABLE LAW.—The water supply made 
available pursuant to subsection (a)(2) shall be subject to 
the San Juan-Chama Project Act, and no preference shall 
be provided to the Pueblos as a result of subsection (c) 
with regard to the delivery or distribution of San Juan- 
Chama Project water or the management or operation of 
the San Juan-Chama Project. 
(e) CONTRACT
FOR SAN JUAN-CHAMA PROJECT 
WATER SUPPLY.—With respect to the contract for the 
water supply required by subsection (a)(2), such San 
Juan-Chama Project contract shall be pursuant to the fol-
lowing terms: 
(1) WAIVERS.—Notwithstanding the provisions 
of the San Juan-Chama Project Act, or any other 
provision of law—
(A) the Secretary shall waive the entirety 
of the Pueblos’ share of the construction costs 
for the San Juan-Chama Project, and pursuant 
to that waiver, the Pueblos’ share of all con-
struction costs for the San Juan-Chama 
Project, inclusive of both principal and interest, 
due from 1972 to the execution of the contract 
required by subsection (a)(2), shall be nonreim-
bursable; 
(B) the Secretary’s waiver of each Pueblo’s 
share of the construction costs for the San 
Juan-Chama Project will not result in an in-
crease in the pro rata shares of other San 
Juan-Chama Project water contractors, but 
such costs shall be absorbed by the United 
States Treasury or otherwise appropriated to 
the Department of the Interior; and 
(C) the costs associated with any water 
made available from the San Juan-Chama 
Project which were determined nonreimbursable 
and nonreturnable pursuant to Public Law No. 
88–293, 78 Stat. 171 (March 26, 1964), shall 
remain nonreimbursable and nonreturnable.
(2) TERMINATION.—The contract shall provide 
that it shall terminate only upon the following condi-
tions— 
(A) failure of the United States District 
Court for the District of New Mexico to enter 
a final decree for the Aamodt Case by Decem-
ber 15, 2012, or within the time period of any 
extension of that deadline granted by the court; 
or 
(B) entry of an order by the United States 
District Court for the District of New Mexico 
voiding the final decree and Settlement Agree-
ment for the Aamodt Case pursuant to section 
10.3 of the Settlement Agreement. 
(f) LIMITATION.—The Secretary shall use the water 
supply secured under subsection (a) only for the purposes 
described in the Settlement Agreement. 
(g) FULFILLMENT OF WATER SUPPLY ACQUISITION 
OBLIGATIONS.—Compliance with subsections (a) through 
(f) shall satisfy any and all obligations of the Secretary 
to acquire or secure a water supply for the Pueblos pursu-
ant to the Settlement Agreement. 
(h) RIGHTS OF PUEBLOS IN SETTLEMENT AGREE-
MENT UNAFFECTED.—Notwithstanding the provisions of 
subsections (a) through (g), the Pueblos, the County or
the Regional Water Authority may acquire any additional 
water rights to ensure all parties to the Settlement Agree-
ment receive the full allocation of water provided by the 
Settlement Agreement and nothing in this Act amends or 
modifies the quantities of water allocated to the Pueblos 
thereunder. 
SEC. 104. DELIVERY AND ALLOCATION OF REGIONAL 
WATER SYSTEM CAPACITY AND WATER. 
(a) ALLOCATION OF REGIONAL WATER SYSTEM CA-
PACITY.— 
(1) IN GENERAL.—The Regional Water System 
shall have the capacity to divert from the Rio 
Grande a quantity of water sufficient to provide— 
(A) up to 4,000 acre-feet of consumptive 
use of water; and 
(B) the requisite peaking capacity de-
scribed in— 
(i) the Engineering Report; and 
(ii) the final project design. 
(2) ALLOCATION TO THE PUEBLOS AND COUN-
TY WATER UTILITY.—Of the capacity described in 
paragraph (1)— 
(A) there shall be allocated to the Pueb-
los—
(i) sufficient capacity for the convey-
ance of 2,500 acre-feet consumptive use; 
and 
(ii) the requisite peaking capacity for 
the quantity of water described in clause 
(i); and 
(B) there shall be allocated to the County 
Water Utility— 
(i) sufficient capacity for the convey-
ance of up to 1,500 acre-feet consumptive 
use; and 
(ii) the requisite peaking capacity for 
the quantity of water described in clause 
(i). 
(3) APPLICABLE
LAW.—Water shall be allo-
cated to the Pueblos and the County Water Utility 
under this subsection in accordance with— 
(A) this title; 
(B) the Settlement Agreement; and 
(C) the Operating Agreement. 
(b) DELIVERY
OF
REGIONAL
WATER
SYSTEM 
WATER.—The Authority shall deliver water from the Re-
gional Water System— 
(1) to the Pueblos water in a quantity sufficient 
to allow full consumptive use of up to 2,500 acre-
feet per year of water rights by the Pueblos in ac-
cordance with— 
(A) the Settlement Agreement; 
(B) the Operating Agreement; and 
(C) this title; and 
(2) to the County water in a quantity sufficient 
to allow full consumptive use of up to 1,500 acre- 
feet per year of water rights by the County Water 
Utility in accordance with— 
(A) the Settlement Agreement; 
(B) the Operating Agreement; and 
(C) this title. 
(c) ADDITIONAL USE
OF ALLOCATION QUANTITY 
AND UNUSED CAPACITY.—The Regional Water System 
may be used to— 
(1) provide for use of return flow credits to 
allow for full consumptive use of the water allocated 
in the Settlement Agreement to each of the Pueblos 
and to the County; and 
(2) convey water allocated to one of the Pueblos 
or the County Water Utility for the benefit of an-
other Pueblo or the County Water Utility or allow 
use of unused capacity by each other through the 
Regional Water System in accordance with an inter-
governmental agreement between the Pueblos, or be-
tween a Pueblo and County Water Utility, as appli-
cable, if— 
(A) such intergovernmental agreements are 
consistent with the Operating Agreement, the 
Settlement Agreement, and this Act; 
(B) capacity is available without reducing 
water delivery to any Pueblo or the County 
Water Utility in accordance with the Settlement 
Agreement, unless the County Water Utility or 
Pueblo contracts for a reduction in water deliv-
ery or Regional Water System capacity; 
(C) the Pueblo or County Water Utility 
contracting for use of the unused capacity or 
water has the right to use the water under ap-
plicable law; and 
(D) any agreement for the use of unused 
capacity or water provides for payment of the 
operation, maintenance, and replacement costs 
associated with the use of capacity or water. 
SEC. 105. AAMODT SETTLEMENT PUEBLOS’ FUND. 
(a) ESTABLISHMENT OF THE AAMODT SETTLEMENT 
PUEBLOS’ FUND.—There is established in the Treasury 
of the United States a fund, to be known as the ‘‘Aamodt 
Settlement Pueblos’ Fund,’’ consisting of—
(1) such amounts as are made available to the 
Fund under section 107(c) or other authorized 
sources; and 
(2) any interest earned from investment of 
amounts in the Fund under subsection (b). 
(b) MANAGEMENT OF THE FUND.—The Secretary 
shall manage the Fund, invest amounts in the Fund, and 
make amounts available from the Fund for distribution 
to the Pueblos in accordance with— 
(1) the American Indian Trust Fund Manage-
ment Reform Act of 1994 (25 U.S.C. 4001 et seq.); 
and 
(2) this Act. 
(c) INVESTMENT OF THE FUND.—On the date set 
forth in section 203(a)(1), the Secretary shall invest 
amounts in the Fund in accordance with— 
(1) the Act of April 1, 1880 (25 U.S.C. 161); 
(2) the first section of the Act of June 24, 
1938 (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) TRIBAL MANAGEMENT PLAN.— 
(1) IN GENERAL.—A Pueblo may withdraw all 
or part of the Pueblo’s portion of the Fund on ap-
proval by the Secretary of a tribal management plan
as described in the American Indian Trust Fund 
Management Reform Act of 1994 (25 U.S.C. 4001 
et seq.). 
(2) REQUIREMENTS.—In addition to the re-
quirements under the American Indian Trust Fund 
Management Reform Act of 1994 (25 U.S.C. 4001 
et seq.), the tribal management plan shall require 
that a Pueblo spend any amounts withdrawn from 
the Fund in accordance with the purposes described 
in section 107(c). 
(3) ENFORCEMENT.—The Secretary may take 
judicial or administrative action to enforce the provi-
sions of any tribal management plan to ensure that 
any amounts withdrawn from the Fund under an 
approved tribal management plan are used in ac-
cordance with this title. 
(4) LIABILITY.—If a Pueblo or the Pueblos ex-
ercise the right to withdraw amounts from the 
Fund, neither the Secretary nor the Secretary of the 
Treasury shall retain any liability for the expendi-
ture or investment of the amounts withdrawn. 
(5) EXPENDITURE PLAN.— 
(A) IN GENERAL.—The Pueblos shall sub-
mit to the Secretary for approval an expendi-
ture plan for any portion of the amounts in the
Fund that the Pueblos do not withdraw under 
this subsection. 
(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, the Settlement Agree-
ment, and the Cost-Sharing and System Inte-
gration Agreement. 
(D) ANNUAL REPORT.—The Pueblos shall 
submit to the Secretary an annual report that 
describes all expenditures from the Fund during 
the year covered by the report. 
(6) NO PER CAPITA PAYMENTS.—No part of 
the principal of the Fund, or the interest or income 
accruing on the principal shall be distributed to any 
member of a Pueblo on a per capita basis. 
(7) AVAILABILITY
OF
AMOUNTS
FROM
THE 
FUND.— 
(A) APPROVAL
OF
SETTLEMENT
AGREE-
MENT.—Amounts made available under sub-
paragraphs (A) and (C) of section 107(c)(1) or 
from other authorized sources shall be available 
for expenditure or withdrawal only after the 
date on which the United States District Court 
for the District of New Mexico issues an order 
approving the Settlement Agreement. 
(B) COMPLETION OF CERTAIN PORTIONS 
OF REGIONAL WATER SYSTEM.—Amounts made 
available under section 107(c)(1)(B) or from 
other authorized sources shall be available for 
expenditure or withdrawal only after those por-
tions of the Regional Water System described 
in section 1.5.24 of the Settlement Agreement 
have been declared substantially complete by 
the Secretary. 
(C) FAILURE
TO
FULFILL
CONDITIONS 
PRECEDENT.—If the conditions precedent in 
section 203 have not been fulfilled by Sep-
tember 15, 2017, the United States shall be en-
titled to set off any funds expended or with-
drawn from the amounts appropriated pursuant 
to section 107(c), together with any interest ac-
crued, against any claims asserted by the Pueb-
los against the United States relating to the 
water rights in the Pojoaque Basin.
SEC. 106. ENVIRONMENTAL COMPLIANCE. 
(a) IN GENERAL.—In carrying out this title, the Sec-
retary shall comply with each law of the Federal Govern-
ment relating to the protection of the environment, includ-
ing— 
(1) the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); and 
(2) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.). 
(b) NATIONAL
ENVIRONMENTAL
POLICY
ACT.— 
Nothing in this Act affects the outcome of any analysis 
conducted by the Secretary or any other Federal official 
under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). 
SEC. 107. AUTHORIZATION OF APPROPRIATIONS. 
(a) REGIONAL WATER SYSTEM.— 
(1) IN GENERAL.—Subject to paragraph (4), 
there is authorized to be appropriated to the Sec-
retary for the planning, design, and construction of 
the Regional Water System and the conduct of envi-
ronmental compliance activities under section 106 an 
amount not to exceed $106,400,000, as adjusted 
under paragraph (3), for the period of fiscal years 
2010 through 2022, to remain available until ex-
pended.
(2) PRIORITY OF FUNDING.—Of the amounts 
authorized under paragraph (1), the Secretary shall 
give priority to funding— 
(A) the construction of the San Ildefonso 
portion of the Regional Water System, con-
sisting of— 
(i) the surface water diversion, treat-
ment, and transmission facilities at San 
Ildefonso Pueblo; and 
(ii) the San Ildefonso Pueblo portion 
of the Pueblo Water Facilities; and 
(B) that part of the Regional Water Sys-
tem providing 475 acre-feet to Pojoaque Pueblo 
pursuant to section 2.2 of the Settlement 
Agreement. 
(3) ADJUSTMENT.—The amount authorized 
under paragraph (1) shall be adjusted annually to 
account for increases in construction costs since Oc-
tober 1, 2006, as determined using applicable engi-
neering cost indices. 
(4) LIMITATIONS.— 
(A) IN GENERAL.—No amounts shall be 
made available under paragraph (1) for the 
construction of the Regional Water System 
until the date on which the United States Dis-
trict Court for the District of New Mexico 
issues an order approving the Settlement Agree-
ment. 
(B) RECORD OF DECISION.—No amounts 
made available under paragraph (1) shall be ex-
pended unless the record of decision issued by 
the Secretary after completion of an environ-
mental impact statement provides for a pre-
ferred alternative that is in substantial compli-
ance with the proposed Regional Water System, 
as defined in the Engineering Report. 
(b) ACQUISITION OF WATER RIGHTS.—There is au-
thorized to be appropriated to the Secretary funds for the 
acquisition 
of 
the 
water 
rights 
under 
section 
103(a)(1)(B)— 
(1) in the amount of $5,400,000.00 if such ac-
quisition is completed by December 31, 2010; and 
(2) the amount authorized under paragraph 
(b)(1) shall be adjusted according to the CPI Urban 
Index commencing January 1, 2011. 
(c) AAMODT SETTLEMENT PUEBLOS’ FUND.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to the Fund the following amounts for 
the period of fiscal years 2010 through 2022:
(A) $15,000,000, which shall be allocated 
to the Pueblos, in accordance with section 2.7.1 
of the Settlement Agreement, for the rehabilita-
tion, improvement, operation, maintenance, and 
replacement of the agricultural delivery facili-
ties, waste water systems, and other water-re-
lated infrastructure of the applicable Pueblo. 
The amount authorized herein shall be adjusted 
according to the CPI Urban Index commencing 
October 1, 2006. 
(B) $37,500,000, which shall be allocated 
to an account, to be established not later than 
January 1, 2016, to assist the Pueblos in pay-
ing the Pueblos’ share of the cost of operating, 
maintaining, and replacing the Pueblo Water 
Facilities and the Regional Water System. 
(C) $5,000,000 and any interest thereon, 
which shall be allocated to the Pueblo of Nambe 
for the acquisition of the Nambe reserved water 
rights in accordance with section 103(a)(1)(A). 
The amount authorized herein shall be adjusted 
according to the CPI Urban Index commencing 
January 1, 2011. The funds provided under 
this section may be used by the Pueblo of 
Nambe only for the acquisition of land, other
real property interests, or economic develop-
ment. 
(2) OPERATION, MAINTENANCE, AND REPLACE-
MENT COSTS.— 
(A) IN GENERAL.—Prior to conveyance of 
the Regional Water System pursuant to section 
101, the Secretary is authorized to and shall 
pay any operation, maintenance or replacement 
costs associated with the Pueblo Water Facili-
ties or the Regional Water System up to an 
amount that does not exceed $5,000,000, which 
is authorized to be appropriated to the Sec-
retary. 
(B) OBLIGATION
OF
FEDERAL
GOVERN-
MENT AFTER COMPLETION.—The amount au-
thorized under subparagraph (A) shall expire 
after the date on which construction of the Re-
gional Water System is completed and the 
amounts required to be deposited in the account 
have been deposited under this section by the 
Federal Government.
TITLE II—POJOAQUE BASIN IN-
DIAN WATER RIGHTS SETTLE-
MENT 
SEC. 201. SETTLEMENT AGREEMENT AND CONTRACT AP-
PROVAL. 
(a) APPROVAL.—To the extent the Settlement Agree-
ment and the Cost-Sharing and System Integration Agree-
ment do not conflict with this Act, the Settlement Agree-
ment and the Cost-Sharing and System Integration Agree-
ment (including any amendments to the Settlement Agree-
ment and the Cost-Sharing and System Integration Agree-
ment that are executed to make the Settlement Agreement 
or the Cost-Sharing and System Integration Agreement 
consistent with this Act) are authorized, ratified, and con-
firmed. 
(b) EXECUTION.—To the extent the Settlement 
Agreement and the Cost-Sharing and System Integration 
Agreement do not conflict with this Act, the Secretary 
shall execute the Settlement Agreement and the Cost- 
Sharing and System Integration Agreement (including 
any amendments that are necessary to make the Settle-
ment Agreement or the Cost-Sharing and System Integra-
tion Agreement consistent with this Act). 
(c) AUTHORITIES OF THE PUEBLOS.—
(1) IN GENERAL.—Each of the Pueblos may 
enter into contracts to lease or exchange water 
rights or to forbear undertaking new or expanded 
water uses for water rights recognized in section 2.1 
of the Settlement Agreement for use within the 
Pojoaque Basin in accordance with the other limita-
tions of section 2.1.5 of the Settlement Agreement 
provided that section 2.1.5 is amended accordingly. 
(2) EXECUTION.—The Secretary shall not exe-
cute the Settlement Agreement until such amend-
ment is accomplished under paragraph (1). 
(3) APPROVAL
BY
SECRETARY.—Consistent 
with the Settlement Agreement as amended under 
paragraph (1), the Secretary shall approve or dis-
approve a lease entered into under paragraph (1). 
(4) PROHIBITION
ON
PERMANENT
ALIEN-
ATION.—No lease or contract under paragraph (1) 
shall be for a term exceeding 99 years, nor shall any 
such lease or contract provide for permanent alien-
ation of any portion of the water rights made avail-
able to the Pueblos under the Settlement Agreement. 
(5) APPLICABLE LAW.—Section 2116 of the Re-
vised Statutes (25 U.S.C. 177) shall not apply to 
any lease or contract entered into under paragraph 
(1).
(6) LEASING OR MARKETING OF WATER SUP-
PLY.—The water supply provided on behalf of the 
Pueblos pursuant to section 103(a)(1) may only be 
leased or marketed by any of the Pueblos pursuant 
to the intergovernmental agreements described in 
section 104(c)(2). 
(d) AMENDMENTS TO CONTRACTS.—The Secretary 
shall amend the contracts relating to the Nambe Falls 
Dam and Reservoir that are necessary to use water sup-
plied from the Nambe Falls Dam and Reservoir in accord-
ance with the Settlement Agreement. 
SEC. 202. ENVIRONMENTAL COMPLIANCE. 
(a) EFFECT
OF
EXECUTION
OF
SETTLEMENT 
AGREEMENT.—The execution of the Settlement Agree-
ment under section 201(b) shall not constitute a major 
Federal action under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.). 
(b) COMPLIANCE WITH ENVIRONMENTAL LAWS.—In 
carrying out this Act, the Secretary shall comply with each 
law of the Federal Government relating to the protection 
of the environment, including— 
(1) the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); and 
(2) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.).
SEC. 203. CONDITIONS PRECEDENT AND ENFORCEMENT 
DATE. 
(a) CONDITIONS PRECEDENT.— 
(1) IN GENERAL.—Upon the fulfillment of the 
conditions precedent described in paragraph (2), the 
Secretary shall publish in the Federal Register by 
September 15, 2017, a statement of finding that the 
conditions have been fulfilled. 
(2) REQUIREMENTS.—The conditions precedent 
referred to in paragraph (1) are the conditions 
that— 
(A) to the extent that the Settlement 
Agreement conflicts with this title, the Settle-
ment Agreement has been revised to conform 
with this title; 
(B) the Settlement Agreement, so revised, 
including waivers and releases pursuant to sec-
tion 204, has been executed by the appropriate 
parties and the Secretary; 
(C) Congress has fully appropriated, or the 
Secretary has provided from other authorized 
sources, all funds authorized by section 107, 
with the exception of subsection (a)(1) of that 
section, by December 15, 2016;
(D) the Secretary has acquired and en-
tered into appropriate contracts for the water 
rights described in section 103(a); 
(E) for purposes of section 103(a), permits 
have been issued by the New Mexico State En-
gineer to the Regional Water Authority to 
change the points of diversion to the mainstem 
of the Rio Grande for the diversion and con-
sumptive use of at least 2,381 acre-feet by the 
Pueblos as part of the water supply for the Re-
gional Water System, subject to the conditions 
that— 
(i) the permits shall be free of any 
condition that materially adversely affects 
the ability of the Pueblos or the Regional 
Water Authority to divert or use the Pueb-
lo water supply described in section 
103(a), including water rights acquired in 
addition to those described in section 
103(a), in accordance with section 103(g); 
and 
(ii) the Settlement Agreement shall 
establish the means to address any permit 
conditions to ensure the ability of the 
Pueblos to fully divert and consume at
least 2,381 acre-feet as part of the water 
supply for the Regional Water System, in-
cluding defining the conditions that will 
not constitute a material adverse affect; 
(F) the State has enacted any necessary 
legislation and provided any funding that may 
be required under the Settlement Agreement; 
(G) a partial final decree that sets forth 
the water rights and other rights to water to 
which the Pueblos are entitled under the Settle-
ment Agreement and this title and that sub-
stantially conforms to the Settlement Agree-
ment has been approved by the United States 
District Court for the District of New Mexico; 
and 
(H) a final decree that sets forth the water 
rights for all parties to the Aamodt Case and 
that substantially conforms to the Settlement 
Agreement has been approved by the United 
States District Court for the District of New 
Mexico by June 15, 2017. 
(b) EXPIRATION DATE.—If all the conditions prece-
dent described in subsection (a)(2) have not been fulfilled 
by September 15, 2017—