I 
108TH CONGRESS 
1ST SESSION 
H. R. 885
To provide for adjustments to the Central Arizona Project in Arizona, to 
authorize the Gila River Indian Community water rights settlement, 
to reauthorize and amend the Southern Arizona Water Rights Settlement 
Act of 1982, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2003
Mr. HAYWORTH (for himself, Mr. KOLBE, Mr. FRANKS of Arizona, Mr. 
GRIJALVA, and Mr. PASTOR) introduced the following bill; which was re-
ferred to the Committee on Resources 
A BILL 
To provide for adjustments to the Central Arizona Project 
in Arizona, to authorize the Gila River Indian Commu-
nity water rights settlement, to reauthorize and amend 
the Southern Arizona Water Rights Settlement Act of 
1982, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Arizona Water Settlements Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
TITLE I—CENTRAL ARIZONA PROJECT SETTLEMENT 
Sec. 101. Short title. 
Sec. 102. Findings. 
Sec. 103. General permissible uses of the Central Arizona Project. 
Sec. 104. Allocation of Central Arizona Project water. 
Sec. 105. Firming of Central Arizona Project Indian water. 
Sec. 106. Acquisition of agricultural priority water. 
Sec. 107. Lower Colorado River Basin Development Fund. 
Sec. 108. Effect. 
Sec. 109. Repeal. 
Sec. 110. Authorization of appropriations. 
Sec. 111. Repeal on failure of enforceability date under title II. 
TITLE II—GILA RIVER INDIAN COMMUNITY WATER RIGHTS 
SETTLEMENT 
Sec. 201. Short title. 
Sec. 202. Findings and purposes. 
Sec. 203. Approval of the Gila River Indian Community water rights settlement 
agreement. 
Sec. 204. Water rights. 
Sec. 205. Community water delivery contract amendments. 
Sec. 206. Extinguishment of claims. 
Sec. 207. Waiver and release of claims. 
Sec. 208. Gila River Indian Community Water OM&R Trust Fund. 
Sec. 209. Subsidence remediation program. 
Sec. 210. After-acquired trust land. 
Sec. 211. Reduction of water rights. 
Sec. 212. Miscellaneous provisions. 
Sec. 213. Authorization of appropriations. 
Sec. 214. Repeal on failure of enforceability date. 
TITLE III—SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT 
Sec. 301. Southern Arizona water rights settlement. 
Sec. 302. Southern Arizona water rights settlement effective date. 
TITLE IV—SAN CARLOS APACHE TRIBE WATER RIGHTS 
SETTLEMENT
SEC. 2. DEFINITIONS. 
In titles I and II: 
(1) ACRE-FEET.—The term ‘‘acre-feet’’ means 
acre-feet per year. 
(2) AFTER-ACQUIRED TRUST LAND.—The term 
‘‘after-acquired trust land’’ means land that—
(A) is located—
(i) within the State; but 
(ii) outside the exterior boundaries of 
the Reservation; and 
(B) is taken into trust by the United 
States for the benefit of the Community after 
the enforceability date. 
(3) AGRICULTURAL
PRIORITY
WATER.—The 
term ‘‘agricultural priority water’’ means Central 
Arizona Project non-Indian agricultural priority 
water, as defined in the Gila River agreement. 
(4) ALLOTTEE.—The term ‘‘allottee’’ means a 
person that holds a beneficial real property interest 
in an Indian allotment that is—
(A) located within the Reservation; and 
(B) held in trust by the United States. 
(5) ARIZONA INDIAN TRIBE.—The term ‘‘Ari-
zona Indian tribe’’ means an Indian tribe (as de-
fined in section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b)) 
that is located in the State. 
(6) 
ASARCO.—The 
term 
‘‘Asarco’’ 
means 
Asarco Incorporated, a New Jersey corporation of 
that name, and its subsidiaries operating mining op-
erations in the State.
(7) CAP CONTRACTOR.—The term ‘‘CAP con-
tractor’’ means a person or entity that has entered 
into a long-term contract (as that term is used in 
the repayment stipulation) with the United States 
for delivery of water through the CAP system. 
(8) CAP 
OPERATING
AGENCY.—The term 
‘‘CAP operating agency’’ means the entity or entities 
authorized to assume responsibility for the care, op-
eration, maintenance, and replacement of the CAP 
system. 
(9) CAP REPAYMENT CONTRACT.—
(A) IN GENERAL.—The term ‘‘CAP repay-
ment contract’’ means the contract dated De-
cember 1, 1988 (Contract No. 14–06–W–245, 
Amendment No. 1) between the United States 
and the Central Arizona Water Conservation 
District for the delivery of water and the repay-
ment of costs of the Central Arizona Project. 
(B) INCLUSIONS.—The term ‘‘CAP repay-
ment contract’’ includes all amendments to and 
revisions of that contract. 
(10) CAP SUBCONTRACTOR.—The term ‘‘CAP 
subcontractor’’ means a person or entity that has 
entered into a long-term subcontract (as that term 
is used in the repayment stipulation) with the
United States and the Central Arizona Water Con-
servation District for the delivery of water through 
the CAP system. 
(11) CAP SYSTEM.—The term ‘‘CAP system’’ 
means—
(A) the Mark Wilmer Pumping Plant; 
(B) the Hayden-Rhodes Aqueduct; 
(C) the Fannin-McFarland Aqueduct; 
(D) the Tucson Aqueduct; 
(E) the pumping plants and appurtenant 
works of the Central Arizona Project aqueduct 
system that are associated with the features de-
scribed in subparagraphs (A) through (D); and 
(F) any extensions of, additions to, or re-
placements for the features described in sub-
paragraphs (A) through (E). 
(12) CENTRAL ARIZONA PROJECT.—The term 
‘‘Central Arizona Project’’ means the 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.). 
(13) 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. 
(14) CITIES.—The term ‘‘Cities’’ means the cit-
ies of Chandler, Glendale, Goodyear, Mesa, Peoria, 
Phoenix, and Scottsdale, Arizona. 
(15) COMMUNITY.—The term ‘‘Community’’ 
means the Gila River Indian Community, a govern-
ment composed of members of the Pima Tribe and 
the Maricopa Tribe and organized under section 16 
of the Act of June 18, 1934 (25 U.S.C. 476). 
(16) COMMUNITY
CAP
WATER.—The term 
‘‘Community CAP water’’ means water to which the 
Community is entitled under the water delivery con-
tract. 
(17) COMMUNITY REPAYMENT CONTRACT.—
(A) IN GENERAL.—The term ‘‘Community 
repayment contract’’ means Contract No. 6–
07–03–W0345 between the United States and 
the Community dated May 4, 1998, providing 
for the construction of water delivery facilities 
on the Reservation. 
(B) INCLUSIONS.—The term ‘‘Community 
repayment contract’’ includes any amendments 
to the contract described in subparagraph (A).
(18) COMMUNITY
WATER
DELIVERY
CON-
TRACT.—
(A) IN GENERAL.—The term ‘‘Community 
water delivery contract’’ means Contract No. 3–
07–30–W0284 between the Community and the 
United States dated October 22, 1992. 
(B) INCLUSIONS.—The term ‘‘Community 
water delivery contract’’ includes any amend-
ments to the contract described in subpara-
graph (A). 
(19) CRR PROJECT WORKS.—
(A) 
IN
GENERAL.—The 
term 
‘‘CRR 
Project works’’ means the portions of the San 
Carlos Irrigation Project located on the Res-
ervation. 
(B) INCLUSION.—The term ‘‘CRR Project 
works’’ includes the portion of the San Carlos 
Irrigation Project known as the ‘‘Southside 
Canal’’, from the point at which the Southside 
Canal connects with the Pima Canal to the 
boundary of the Reservation. 
(20) 
DIRECTOR.—The 
term 
‘‘Director’’ 
means—
(A) the Director of the Arizona Depart-
ment of Water Resources; or
(B) with respect to an action to be carried 
out under this title, a State official or agency 
designated by the Governor or the State legisla-
ture. 
(21) ENFORCEABILITY DATE.—The term ‘‘en-
forceability date’’ means the date on which the Sec-
retary publishes in the Federal Register the state-
ment of findings described in section 207(d). 
(22) FEE LAND.—The term ‘‘fee land’’ means 
land, other than off-Reservation trust land, owned 
by the Community outside the exterior boundaries of 
the Reservation as of December 31, 2002. 
(23) FIXED OM&R CHARGE.—The term ‘‘fixed 
OM&R charge’’ has the meaning given the term in 
the repayment stipulation. 
(24) 
GILA
RIVER
ADJUDICATION
PRO-
CEEDINGS.—The term ‘‘Gila River adjudication pro-
ceedings’’ 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 Gila River Sys-
tem and Source’’ W–1 (Salt), W–2 (Verde), W–3 
(Upper Gila), W–4 (San Pedro) (Consolidated). 
(25) GILA RIVER AGREEMENT.—
(A) IN GENERAL.—The term ‘‘Gila River 
agreement’’ means the agreement entitled the 
‘‘Gila River Indian Community Water Rights 
Settlement Agreement’’, dated July 1, 2002. 
(B) INCLUSIONS.—The term ‘‘Gila River 
agreement’’ includes—
(i) all exhibits to that agreement; and 
(ii) any amendment to that agreement 
or to an exhibit to that agreement made or 
added pursuant to that agreement. 
(26) GLOBE EQUITY DECREE.—
(A) IN GENERAL.—The term ‘‘Globe Eq-
uity Decree’’ means the decree dated June 29, 
1935, entered in United States of America v. 
Gila Valley Irrigation District, Globe Equity 
No. 59, et al., by the United States District 
Court for the District of Arizona. 
(B) INCLUSIONS.—The term ‘‘Globe Eq-
uity Decree’’ includes all court orders and deci-
sions supplemental to that decree. 
(27) HAGGARD DECREE.—
(A) IN
GENERAL.—The term ‘‘Haggard 
Decree’’ means the decree dated June 11, 1903, 
entered in United States of America, as guard-
ian of Chief Charley Juan Saul and Cyrus Sam,
Maricopa Indians and 400 other Maricopa Indi-
ans similarly situated v. Haggard, et al., Cause 
No. 19, in the District Court for the Third Ju-
dicial District of the Territory of Arizona, in 
and for the County of Maricopa. 
(B) INCLUSIONS.—The term ‘‘Haggard 
Decree’’ includes all court orders and decisions 
supplemental to that decree. 
(28) INCLUDING.—The term ‘‘including’’ has 
the same meaning as the term ‘‘including, but not 
limited to’’. 
(29) INJURY TO WATER QUALITY.—The term 
‘‘injury to water quality’’ means any contamination, 
diminution, or deprivation of water quality under 
Federal, State, or other law. 
(30) INJURY TO WATER RIGHTS.—
(A) IN
GENERAL.—The term ‘‘injury to 
water rights’’ means an interference with, dimi-
nution of, or deprivation of water rights under 
Federal, State, or other law. 
(B) INCLUSION.—The term ‘‘injury to 
water rights’’ includes a change in the under-
ground water table and any effect of such a 
change.
(C) EXCLUSION.— The term ‘‘injury to 
water rights’’ does not include subsidence dam-
age or injury to water quality. 
(31) 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). 
(32) MASTER AGREEMENT.—The term ‘‘master 
agreement’’ means the agreement entitled ‘‘Arizona 
Water Settlement Agreement’’ entered into by the 
Director, the Central Arizona Water Conservation 
District, and the Secretary, dated July 1, 2002. 
(33) OFF-RESERVATION
TRUST
LAND.—The 
term ‘‘off-Reservation trust land’’ means land out-
side the exterior boundaries of the Reservation that 
is held in trust by the United States for the benefit 
of the Community and the Community members as 
of the enforceability date. 
(34) PHELPS
DODGE.—The term ‘‘Phelps 
Dodge’’ means the Phelps Dodge Corporation, a 
New York corporation of that name, and its subsidi-
aries, successors, or assigns. 
(35) REPAYMENT STIPULATION.—
(A) IN GENERAL.—The term ‘‘repayment 
stipulation’’ means the Stipulation Regarding a 
Stay of Litigation, Resolution of Issues During 
the Stay, and for Ultimate Judgment Upon the 
Satisfaction of Conditions, filed with the United 
States District Court for the District of Arizona 
on May 3, 2000, in Central Arizona Water Con-
servation District v. United States, et al., No. 
CIV 95–625–TUC–WDB(EHC), No. CIV 95–
1720–PHX–EHC (Consolidated Action). 
(B) INCLUSIONS.—The term ‘‘repayment 
stipulation’’ includes any amendment to or revi-
sion of the stipulation described in subpara-
graph (A). 
(36) RESERVATION.—
(A) IN
GENERAL.—The term ‘‘Reserva-
tion’’ means the land located within the exterior 
boundaries of the reservation created under sec-
tions 3 and 4 of the Act of February 28, 1859 
(11 Stat. 401, chapter LXVI) and Executive 
Orders of August 31, 1876, June 14, 1879, 
May 5, 1882, November 15, 1883, July 31, 
1911, June 2, 1913, August 27, 1914, and July 
19, 1915.
(B) EXCLUSION.—The term ‘‘Reservation’’ 
does not include the land located in sections 16 
and 36, Township 4 South, Range 4 East, Salt 
and Gila River Base and Meridian. 
(37) 
ROOSEVELT
HABITAT
CONSERVATION 
PLAN.—The term ‘‘Roosevelt Habitat Conservation 
Plan’’ means the habitat conservation plan approved 
by the United States Fish and Wildlife Service 
under section 10(a)(1)(B) of the Endangered Spe-
cies Act of 1973 (16 U.S.C. 1539(a)(1)(B)) for the 
incidental taking of endangered, threatened, and 
candidate species resulting from the continued oper-
ation by the Salt River Project of Roosevelt Dam 
and Lake, near Phoenix, Arizona. 
(38) ROOSEVELT WATER CONSERVATION DIS-
TRICT.—The term ‘‘Roosevelt Water Conservation 
District’’ means the entity of that name that is a po-
litical subdivision of the State and an irrigation dis-
trict organized under the law of the State. 
(39) SAFFORD.—The term ‘‘Safford’’ means 
the city of Safford, Arizona. 
(40) SALT RIVER PROJECT.—The term ‘‘Salt 
River Project’’ means the Salt River Project Agricul-
tural Improvement and Power District, a political 
subdivision of the State, and the Salt River Valley
Water Users’ Association, an Arizona Territorial 
corporation. 
(41) SAN CARLOS APACHE TRIBE.—The term 
‘‘San Carlos Apache Tribe’’ means the San Carlos 
Apache Tribe, a tribe of Apache Indians organized 
under Section 16 of the Indian Reorganization Act 
of June 18, 1934, 48 Stat. 987 (25 U.S.C. 476). 
(42) SAN CARLOS IRRIGATION AND DRAINAGE 
DISTRICT.—The term ‘‘San Carlos Irrigation and 
Drainage District’’ means the entity of that name 
that is a political subdivision of the State and an ir-
rigation and drainage district organized under the 
laws of the State. 
(43) SAN CARLOS IRRIGATION PROJECT.—
(A) IN GENERAL.—The term ‘‘San Carlos 
Irrigation Project’’ means the San Carlos irri-
gation project authorized under the Act of June 
7, 1924 (43 Stat. 475). 
(B) INCLUSIONS.—The term ‘‘San Carlos 
Irrigation Project’’ includes any amendments 
and supplements to the Act described in sub-
paragraph (A). 
(44) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Interior.
(45) SPECIAL HOT LANDS.—The term ‘‘special 
hot lands’’ has the meaning given the term in sub-
paragraph 2.34 of the UVD agreement. 
(46) STATE.—The term ‘‘State’’ means the 
State of Arizona. 
(47) SUBCONTRACT.—
(A) 
IN
GENERAL.—The 
term 
‘‘sub-
contract’’ means a Central Arizona Project 
water delivery subcontract. 
(B) INCLUSION.—The term ‘‘subcontract’’ 
includes an amendment to a subcontract. 
(48) SUBSIDENCE DAMAGE.—The term ‘‘sub-
sidence damage’’ means injury to land, water, or 
other real property resulting from the settling of 
geologic strata or cracking in the surface of the 
Earth of any length or depth, which settling or 
cracking is caused by the pumping of underground 
water. 
(49) TBI ELIGIBLE ACRES.—The term ‘‘TBI 
eligible acres’’ has the meaning given the term in 
subparagraph 2.37 of the UVD agreement. 
(50) UNCONTRACTED MUNICIPAL AND INDUS-
TRIAL WATER.—The term ‘‘uncontracted municipal 
and industrial water’’ means Central Arizona 
Project municipal and industrial priority water that
is not subject to subcontract on the date of enact-
ment of this Act. 
(51) UV DECREED ACRES.—
(A) IN GENERAL.—The term ‘‘UV decreed 
acres’’ means the land located upstream and to 
the east of the Coolidge Dam for which water 
may be diverted pursuant to the Globe Equity 
Decree. 
(B) EXCLUSION.—The term ‘‘UV decreed 
acres’’ does not include the reservation of the 
San Carlos Apache Tribe. 
(52) UV DECREED WATER RIGHTS.—The term 
‘‘UV decreed water rights’’ means the right to divert 
water for use on UV decreed acres in accordance 
with the Globe Equity Decree. 
(53) UV SUBJUGATED LAND.—The term ‘‘UV 
subjugated land’’ has the meaning given the term in 
subparagraph 2.50 of the UVD agreement. 
(54) UVD 
AGREEMENT.—The term ‘‘UVD 
agreement’’ means the agreement among the Com-
munity, the United States, the San Carlos Irrigation 
and Drainage District, the Franklin Irrigation Dis-
trict, the Gila Valley Irrigation District, and other 
parties located in the upper valley of the Gila River, 
dated July 1, 2002.
TITLE I—CENTRAL ARIZONA 
PROJECT SETTLEMENT 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Central Arizona 
Project Settlement Act of 2003’’. 
SEC. 102. FINDINGS. 
Congress finds that—
(1) the water provided by the Central Arizona 
Project to Maricopa, Pinal, and Pima Counties in 
the State of Arizona, is vital to citizens of the State; 
and 
(2) an agreement on the allocation of Central 
Arizona Project water among interested persons, in-
cluding Federal and State interests, would provide 
important benefits to the Federal Government, the 
State of Arizona, and the citizens of the State. 
SEC. 103. GENERAL PERMISSIBLE USES OF THE CENTRAL 
ARIZONA PROJECT. 
In accordance with the CAP repayment contract, the 
Central Arizona Project may be used to transport non-
project water for—
(1) domestic, municipal, fish and wildlife, and 
industrial purposes; and 
(2) any purpose authorized under the Colorado 
River Basin Project Act (43 U.S.C. 1501 et seq.).
SEC. 104. ALLOCATION OF CENTRAL ARIZONA PROJECT 
WATER. 
(a) 
NON-INDIAN
AGRICULTURAL
PRIORITY 
WATER.—
(1) REALLOCATION TO INDIAN TRIBES.—
(A) IN GENERAL.—The Secretary shall re-
allocate 197,500 acre-feet of agricultural pri-
ority water made available pursuant to the mas-
ter agreement for use by Arizona Indian tribes, 
of which—
(i) 102,000 acre-feet shall be reallo-
cated to the Gila River Indian Community; 
(ii) 28,200 acre-feet shall be reallo-
cated to the Tohono O’odham Nation; and 
(iii) subject to the conditions specified 
in subparagraph (B), 67,300 acre-feet 
shall be reallocated to Arizona Indian 
tribes. 
(B) CONDITIONS.—The reallocation of ag-
ricultural priority water under subparagraph 
(A)(iii) shall be subject to the conditions that—
(i) before the Secretary may reallocate 
the water to an Arizona Indian tribe, Con-
gress enacts a law approving an Indian 
water rights settlement for that Arizona
Indian tribe that provides for the realloca-
tion; and 
(ii) the agricultural priority water 
shall not, without specific authorization by 
Act of Congress, be leased, exchanged, 
forborne, or otherwise transferred by an 
Arizona Indian tribe for any direct or indi-
rect use outside the reservation of the Ari-
zona Indian tribe. 
(2) REALLOCATION TO THE ARIZONA DEPART-
MENT OF WATER RESOURCES.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall reallocate 96,295 
acre-feet of agricultural priority water made 
available pursuant to the master agreement to 
the Arizona Department of Water Resources, to 
be held under contract in trust for further allo-
cation under subparagraph (C). 
(B) REQUIRED DOCUMENTATION.—The re-
allocation of agricultural priority water under 
subparagraph (A) is subject to the condition 
that the Secretary execute any appropriate doc-
uments to memorialize the reallocation, includ-
ing—
(i) an allocation decision; and
(ii) a contract that prohibits the direct 
use of the agricultural priority water by 
the Arizona Department of Water Re-
sources. 
(C) FURTHER ALLOCATION.—With respect 
to the allocation of agricultural priority water 
under subparagraph (A)—
(i) before that water may be further 
allocated—
(I) the Director shall submit to 
the Secretary, and the Secretary shall 
receive, a recommendation for re-
allocation; 
(II) as soon as practicable after 
receiving the recommendation, the 
Secretary shall carry out all necessary 
reviews of the proposed reallocation, 
in accordance with applicable Federal 
law; and 
(III) if the recommendation is re-
jected by the Secretary, the Secretary 
shall—
(aa) request a revised rec-
ommendation from the Director; 
and
(bb) proceed with any re-
views required under subclause 
(II); and 
(ii) as soon as practicable after the 
date on which agricultural priority water is 
further allocated, the Secretary shall offer 
to enter into a subcontract for that water 
in accordance with paragraphs (1) and (2) 
of subsection (d). 
(D) MASTER AGREEMENT.—The realloca-
tion of agricultural priority water under sub-
paragraphs (A) and (C) is subject to the master 
agreement, including certain rights provided by 
the master agreement to water users in Pinal 
County, Arizona. 
(3) PRIORITY.—The agricultural priority water 
reallocated under paragraphs (1) and (2) shall be 
subject to the condition that the water retain its 
non-Indian agricultural delivery priority. 
(b) UNCONTRACTED CENTRAL ARIZONA PROJECT 
MUNICIPAL AND INDUSTRIAL PRIORITY WATER.—
(1) REALLOCATION.—The Secretary shall, on 
the recommendation of the Director, reallocate 
65,647 acre-feet of uncontracted municipal and in-
dustrial water, of which—
(A) 285 acre-feet shall be reallocated to 
the town of Superior, Arizona; 
(B) 806 acre-feet shall be reallocated to 
the Cave Creek Water Company; 
(C) 1,931 acre-feet shall be reallocated to 
the Chaparral Water Company; 
(D) 508 acre-feet shall be reallocated to 
the town of El Mirage, Arizona; 
(E) 7,211 acre-feet shall be reallocated to 
the city of Goodyear, Arizona; 
(F) 147 acre-feet shall be reallocated to 
the H2O Water Company; 
(G) 7,115 acre-feet shall be reallocated to 
the city of Mesa, Arizona; 
(H) 5,527 acre-feet shall be reallocated to 
the city of Peoria, Arizona; 
(I) 2,981 acre-feet shall be reallocated to 
the city of Scottsdale, Arizona; 
(J) 808 acre-feet shall be reallocated to the 
AVRA Cooperative; 
(K) 4,986 acre-feet shall be reallocated to 
the city of Chandler, Arizona; 
(L) 1,071 acre-feet shall be reallocated to 
the Del Lago (Vail) Water Company;
(M) 3,053 acre-feet shall be reallocated to 
the city of Glendale, Arizona; 
(N) 1,521 acre-feet shall be reallocated to 
the Community Water Company of Green Val-
ley, Arizona; 
(O) 4,602 acre-feet shall be reallocated to 
the Metropolitan Domestic Water Improvement 
District; 
(P) 3,557 acre-feet shall be reallocated to 
the town of Oro Valley, Arizona; 
(Q) 8,206 acre-feet shall be reallocated to 
the city of Phoenix, Arizona; 
(R) 2,876 acre-feet shall be reallocated to 
the city of Surprise, Arizona; 
(S) 8,206 acre-feet shall be reallocated to 
the city of Tucson, Arizona; and 
(T) 250 acre-feet shall be reallocated to 
the Valley Utilities Water Company. 
(2) SUBCONTRACTS.—
(A) IN GENERAL.—As soon as practicable 
after the date of enactment of this Act, in ac-
cordance with paragraphs (1) and (2) of sub-
section (d) and any applicable Federal laws, the 
Secretary shall offer to enter into subcontracts 
for the delivery of the uncontracted municipal
and industrial water reallocated under para-
graph (1). 
(B) REVISED RECOMMENDATION.—If the 
Secretary is precluded under applicable Federal 
law from entering into a subcontract with an 
entity identified in paragraph (1), the Secretary 
shall—
(i) request a revised recommendation 
from the Director; and 
(ii) on receipt of a recommendation 
under clause (i), reallocate and enter into 
a subcontract for the delivery of the water 
in accordance with subparagraph (A). 
(c) LIMITATIONS.—
(1) AMOUNT.—
(A) IN
GENERAL.—The total amount of 
entitlements under long-term contracts (as de-
fined in the repayment stipulation) for the de-
livery of Central Arizona Project water in the 
State shall not exceed 1,415,000 acre-feet, of 
which—
(i) 667,724 acre-feet shall be—
(I) under contract to Arizona In-
dian tribes; or
(II) available to the Secretary for 
allocation to Arizona Indian tribes; 
and 
(ii) 747,276 acre-feet shall be under 
contract or available for allocation to—
(I) non-Indian municipal and in-
dustrial entities; 
(II) the Arizona Department of 
Water Resources; and 
(III) non-Indian agricultural en-
tities. 
(B) EXCEPTION.—Subparagraph (A) shall 
not apply to Central Arizona Project water de-
livered to water users in Arizona in exchange 
for Gila River water delivered to the State of 
New Mexico or to water users in New Mexico 
as provided in section 304 of the Colorado 
River Basin Project Act (43 U.S.C. 1524). 
(2) TRANSFER.—
(A) IN GENERAL.—Except pursuant to the 
master agreement, Central Arizona Project 
water may not be transferred from—
(i) a use authorized under paragraph 
(1)(A)(i) to a use authorized under para-
graph (1)(A)(ii); or
(ii) a use authorized under paragraph 
(1)(A)(ii) to a use authorized under para-
graph (1)(A)(i). 
(B) EXCEPTIONS.—
(i) LEASES.—A lease of Central Ari-
zona Project water by an Arizona Indian 
tribe to an entity described in paragraph 
(1)(A)(ii) under an Indian water rights 
settlement approved by an Act of Congress 
shall not be considered to be a transfer for 
purposes of subparagraph (A). 
(ii) EXCHANGES.—An exchange of 
Central Arizona Project water by an Ari-
zona Indian tribe to an entity described in 
paragraph (1)(A)(ii) shall not be consid-
ered to be a transfer for purposes of sub-
paragraph (A). 
(d) CENTRAL ARIZONA PROJECT CONTRACTS AND 
SUBCONTRACTS.—
(1) IN GENERAL.—Notwithstanding section 6 of 
the Act of August 4, 1939 (commonly known as the 
‘‘Reclamation Project Act of 1939’’) (43 U.S.C. 
485e), and paragraphs (2) and (3) of section 304(b) 
of the Colorado River Basin Project Act (43 U.S.C. 
1524(b)), as soon as practicable after the date of en-
actment of this Act, the Secretary shall offer to 
enter into subcontracts or to amend all Central Ari-
zona Project contracts and subcontracts in effect as 
of that date in accordance with paragraph (2). 
(2) REQUIREMENTS.—All subcontracts and 
amendments to Central Arizona Project contracts 
and subcontracts under paragraph (1)—
(A) shall be for permanent service (within 
the meaning of section 5 of the Boulder Canyon 
Project Act of 1928 (43 U.S.C. 617d)); 
(B) shall have an initial delivery term that 
is the greater of—
(i) 100 years; or 
(ii) a term—
(I) authorized by Congress; or 
(II) provided under the appro-
priate Central Arizona Project con-
tract or subcontract in existence on 
the date of enactment of this Act; 
(C) shall conform to the shortage sharing 
criteria described in paragraph 8.16 of the Gila 
River agreement and paragraph 5.3 of the 
Tohono O’odham settlement agreement; 
(D) shall include the prohibition and ex-
ception described in subsection (e); and
(E) shall not require—
(i) that any Central Arizona Project 
water received in exchange for effluent be 
deducted from the contractual entitlement 
of the CAP contractor or CAP subcon-
tractor; or 
(ii) that any additional modification of 
the Central Arizona Project contracts or 
subcontracts be made as a condition of ac-
ceptance of the subcontract or amend-
ments. 
(3) APPLICABILITY.—This subsection does not 
apply to—
(A) a subcontract for non-Indian agricul-
tural use; and 
(B) a contract executed under paragraph 
5(d) of the repayment stipulation. 
(e) PROHIBITION ON TRANSFER.—
(1) IN GENERAL.—Except as provided in para-
graph (2), no Central Arizona Project water shall be 
leased, exchanged, forborne, or otherwise transferred 
in any way for use directly or indirectly outside the 
State. 
(2) EXCEPTIONS.—Central Arizona Project 
water may be—