H. R. 146—384 
‘‘(C) An annual normal diversion demand of 135,000 acre- 
feet for the initial stage of the San Juan-Chama Project author-
ized by section 8, which shall be the amount to which any 
shortage is applied. 
‘‘(2) The Secretary shall not include in the normal diversion 
requirements— 
‘‘(A) the quantity of water that reliably can be anticipated 
to be diverted or delivered under a contract from inflows to 
the San Juan River arising below Navajo Dam under New 
Mexico State Engineer File No. 3215; or 
‘‘(B) the quantity of water anticipated to be supplied 
through reuse. 
‘‘(e)(1) If the Secretary determines that there is a shortage 
of water under subsection (a), the Secretary shall respond to the 
shortage in the Navajo Reservoir water supply by curtailing releases 
and deliveries in the following order: 
‘‘(A) The demand for delivery for uses in the State of 
Arizona under the Navajo-Gallup Water Supply Project author-
ized by section 10603 of the Northwestern New Mexico Rural 
Water Projects Act, excluding the quantity of water anticipated 
to be diverted for the uses from inflows to the San Juan 
River that arise below Navajo Dam in accordance with New 
Mexico State Engineer File No. 3215. 
‘‘(B) The demand for delivery for uses allocated under para-
graph 8.2 of the agreement executed under section 10701(a)(2) 
of the Northwestern New Mexico Rural Water Projects Act, 
excluding the quantity of water anticipated to be diverted for 
such uses under State Engineer File No. 3215. 
‘‘(C) The uses in the State of New Mexico that are deter-
mined under subsection (d), in accordance with the procedure 
for apportioning the water supply under subsection (a). 
‘‘(2) For any year for which the Secretary determines and 
responds to a shortage in the Navajo Reservoir water supply, the 
Secretary shall not deliver, and contractors of the water supply 
shall not divert, any of the water supply for placement into aquifer 
storage for future recovery and use. 
‘‘(3) To determine the occurrence and amount of any shortage 
to contracts entered into under this section, the Secretary shall 
not include as available storage any water stored in a top water 
bank in Navajo Reservoir established under section 16(a) of the 
Act of April 11, 1956 (commonly known as the ‘Colorado River 
Storage Project Act’). 
‘‘(f) The Secretary of the Interior shall apportion water under 
subsections (a), (d), and (e) on an annual volume basis. 
‘‘(g) The Secretary of the Interior may revise a determination 
of shortages, apportionments, or allocations of water under sub-
sections (a), (d), and (e) on the basis of information relating to 
water supply conditions that was not available at the time at 
which the determination was made. 
‘‘(h) Nothing in this section prohibits the distribution of water 
in accordance with cooperative water agreements between water 
users providing for a sharing of water supplies. 
‘‘(i) Diversions under New Mexico State Engineer File No. 3215 
shall be distributed, to the maximum extent water is available, 
in proportionate amounts to the diversion demands of contractors 
and subcontractors of the Navajo Reservoir water supply that are 
diverting water below Navajo Dam.’’.
H. R. 146—385 
SEC. 10403. EFFECT ON FEDERAL WATER LAW. 
Unless expressly provided in this subtitle, nothing in this sub-
title modifies, conflicts with, preempts, or otherwise affects— 
(1) the Boulder Canyon Project Act (43 U.S.C. 617 et seq.); 
(2) the Boulder Canyon Project Adjustment Act (54 Stat. 
774, chapter 643); 
(3) the Act of April 11, 1956 (commonly known as the 
‘‘Colorado River Storage Project Act’’) (43 U.S.C. 620 et seq.); 
(4) the Act of September 30, 1968 (commonly known as 
the ‘‘Colorado River Basin Project Act’’) (82 Stat. 885); 
(5) Public Law 87–483 (76 Stat. 96); 
(6) the Treaty between the United States of America and 
Mexico respecting utilization of waters of the Colorado and 
Tijuana Rivers and of the Rio Grande, signed at Washington 
February 3, 1944 (59 Stat. 1219); 
(7) the Colorado River Compact of 1922, as approved by 
the Presidential Proclamation of June 25, 1929 (46 Stat. 3000); 
(8) the Compact; 
(9) the Act of April 6, 1949 (63 Stat. 31, chapter 48); 
(10) the Jicarilla Apache Tribe Water Rights Settlement 
Act (106 Stat. 2237); or 
(11) section 205 of the Energy and Water Development 
Appropriations Act, 2005 (118 Stat. 2949). 
PART II—RECLAMATION WATER 
SETTLEMENTS FUND 
SEC. 10501. RECLAMATION WATER SETTLEMENTS FUND. 
(a) ESTABLISHMENT.—There is established in the Treasury of 
the United States a fund, to be known as the ‘‘Reclamation Water 
Settlements Fund’’, consisting of— 
(1) such amounts as are deposited to the Fund under 
subsection (b); and 
(2) any interest earned on investment of amounts in the 
Fund under subsection (d). 
(b) DEPOSITS TO FUND.— 
(1) IN GENERAL.—For each of fiscal years 2020 through 
2029, the Secretary of the Treasury shall deposit in the Fund, 
if available, $120,000,000 of the revenues that would otherwise 
be deposited for the fiscal year in the fund established by 
the first section of the Act of June 17, 1902 (32 Stat. 388, 
chapter 1093). 
(2) AVAILABILITY OF AMOUNTS.—Amounts deposited in the 
Fund under paragraph (1) shall be made available pursuant 
to this section— 
(A) without further appropriation; and 
(B) in addition to amounts appropriated pursuant to 
any authorization contained in any other provision of law. 
(c) EXPENDITURES FROM FUND.— 
(1) IN GENERAL.— 
(A) EXPENDITURES.—Subject to subparagraph (B), for 
each of fiscal years 2020 through 2034, the Secretary may 
expend from the Fund an amount not to exceed 
$120,000,000, plus the interest accrued in the Fund, for 
the fiscal year in which expenditures are made pursuant 
to paragraphs (2) and (3).
H. R. 146—386 
(B) ADDITIONAL
EXPENDITURES.—The Secretary may 
expend more than $120,000,000 for any fiscal year if such 
amounts are available in the Fund due to expenditures 
not reaching $120,000,000 for prior fiscal years. 
(2) AUTHORITY.—The Secretary may expend money from 
the Fund to implement a settlement agreement approved by 
Congress that resolves, in whole or in part, litigation involving 
the United States, if the settlement agreement or implementing 
legislation requires the Bureau of Reclamation to provide finan-
cial assistance for, or plan, design, and construct— 
(A) water supply infrastructure; or 
(B) a project— 
(i) to rehabilitate a water delivery system to con-
serve water; or 
(ii) to restore fish and wildlife habitat or otherwise 
improve environmental conditions associated with or 
affected by, or located within the same river basin 
as, a Federal reclamation project that is in existence 
on the date of enactment of this Act. 
(3) USE FOR COMPLETION OF PROJECT AND OTHER SETTLE-
MENTS.— 
(A) PRIORITIES.— 
(i) FIRST PRIORITY.— 
(I) IN GENERAL.—The first priority for expendi-
ture of amounts in the Fund during the entire 
period in which the Fund is in existence shall 
be for the purposes described in, and in the order 
of, clauses (i) through (iv) of subparagraph (B). 
(II) RESERVED AMOUNTS.—The Secretary shall 
reserve and use amounts deposited into the Fund 
in accordance with subclause (I). 
(ii) OTHER PURPOSES.—Any amounts in the Fund 
that are not needed for the purposes described in 
subparagraph (B) may be used for other purposes 
authorized in paragraph (2). 
(B) COMPLETION OF PROJECT.— 
(i) NAVAJO-GALLUP WATER SUPPLY PROJECT.— 
(I) IN
GENERAL.—Subject to subclause (II), 
effective beginning January 1, 2020, if, in the judg-
ment of the Secretary on an annual basis the 
deadline described in section 10701(e)(1)(A)(ix) is 
unlikely to be met because a sufficient amount 
of funding is not otherwise available through 
appropriations made available pursuant to section 
10609(a), the Secretary shall expend from the 
Fund such amounts on an annual basis consistent 
with paragraphs (1) and (2), as are necessary to 
pay the Federal share of the costs, and substan-
tially complete as expeditiously as practicable, the 
construction of the water supply infrastructure 
authorized as part of the Project. 
(II) MAXIMUM AMOUNT.— 
(aa) IN
GENERAL.—Except as provided 
under item (bb), the amount expended under 
subclause (I) shall not exceed $500,000,000 
for the period of fiscal years 2020 through 
2029.
H. R. 146—387 
(bb) EXCEPTION.—The limitation on the 
expenditure amount under item (aa) may be 
exceeded during the entire period in which 
the Fund is in existence if such additional 
funds can be expended without limiting the 
amounts identified in clauses (ii) through (iv). 
(ii) OTHER NEW MEXICO SETTLEMENTS.— 
(I) IN
GENERAL.—Subject to subclause (II), 
effective beginning January 1, 2020, in addition 
to the funding made available under clause (i), 
if in the judgment of the Secretary on an annual 
basis a sufficient amount of funding is not other-
wise available through annual appropriations, the 
Secretary shall expend from the Fund such 
amounts on an annual basis consistent with para-
graphs (1) and (2), as are necessary to pay the 
Federal share of the remaining costs of imple-
menting the Indian water rights settlement agree-
ments entered into by the State of New Mexico 
in the Aamodt adjudication and the Abeyta adju-
dication, if such settlements are subsequently 
approved and authorized by an Act of Congress 
and the implementation period has not already 
expired. 
(II) 
MAXIMUM
AMOUNT.—The 
amount 
expended under subclause (I) shall not exceed 
$250,000,000. 
(iii) MONTANA SETTLEMENTS.— 
(I) IN
GENERAL.—Subject to subclause (II), 
effective beginning January 1, 2020, in addition 
to funding made available pursuant to clauses (i) 
and (ii), if in the judgment of the Secretary on 
an annual basis a sufficient amount of funding 
is not otherwise available through annual appro-
priations, the Secretary shall expend from the 
Fund such amounts on an annual basis consistent 
with paragraphs (1) and (2), as are necessary to 
pay the Federal share of the remaining costs of 
implementing Indian water rights settlement 
agreements entered into by the State of Montana 
with the Blackfeet Tribe, the Crow Tribe, or the 
Gros Ventre and Assiniboine Tribes of the Fort 
Belknap Indian Reservation in the judicial pro-
ceeding entitled ‘‘In re the General Adjudication 
of All the Rights to Use Surface and Groundwater 
in the State of Montana’’, if a settlement or settle-
ments are subsequently approved and authorized 
by an Act of Congress and the implementation 
period has not already expired. 
(II) MAXIMUM AMOUNT.— 
(aa) IN
GENERAL.—Except as provided 
under item (bb), the amount expended under 
subclause (I) shall not exceed $350,000,000 
for the period of fiscal years 2020 through 
2029. 
(bb) EXCEPTION.—The limitation on the 
expenditure amount under item (aa) may be
H. R. 146—388 
exceeded during the entire period in which 
the Fund is in existence if such additional 
funds can be expended without limiting the 
amounts identified in clause (i), (ii), and (iv). 
(cc) OTHER FUNDING.—The Secretary shall 
ensure that any funding under this clause 
shall be provided in a manner that does not 
limit the funding available pursuant to clauses 
(i) and (ii). 
(iv) ARIZONA SETTLEMENT.— 
(I) IN
GENERAL.—Subject to subclause (II), 
effective beginning January 1, 2020, in addition 
to funding made available pursuant to clauses (i), 
(ii), and (iii), if in the judgment of the Secretary 
on an annual basis a sufficient amount of funding 
is not otherwise available through annual appro-
priations, the Secretary shall expend from the 
Fund such amounts on an annual basis consistent 
with paragraphs (1) and (2), as are necessary to 
pay the Federal share of the remaining costs of 
implementing an Indian water rights settlement 
agreement entered into by the State of Arizona 
with the Navajo Nation to resolve the water rights 
claims of the Nation in the Lower Colorado River 
basin in Arizona, if a settlement is subsequently 
approved and authorized by an Act of Congress 
and the implementation period has not already 
expired. 
(II) MAXIMUM AMOUNT.— 
(aa) IN
GENERAL.—Except as provided 
under item (bb), the amount expended under 
subclause (I) shall not exceed $100,000,000 
for the period of fiscal years 2020 through 
2029. 
(bb) EXCEPTION.—The limitation on the 
expenditure amount under item (aa) may be 
exceeded during the entire period in which 
the Fund is in existence if such additional 
funds can be expended without limiting the 
amounts identified in clauses (i) through (iii). 
(cc) OTHER FUNDING.—The Secretary shall 
ensure that any funding under this clause 
shall be provided in a manner that does not 
limit the funding available pursuant to clauses 
(i) and (ii). 
(C) REVERSION.—If the settlements described in clauses 
(ii) through (iv) of subparagraph (B) have not been 
approved and authorized by an Act of Congress by 
December 31, 2019, the amounts reserved for the settle-
ments shall no longer be reserved by the Secretary pursu-
ant to subparagraph (A)(i) and shall revert to the Fund 
for any authorized use, as determined by the Secretary. 
(d) INVESTMENT OF AMOUNTS.— 
(1) IN GENERAL.—The Secretary shall invest such portion 
of the Fund as is not, in the judgment of the Secretary, required 
to meet current withdrawals.
H. R. 146—389 
(2) CREDITS TO FUND.—The interest on, and the proceeds 
from the sale or redemption of, any obligations held in the 
Fund shall be credited to, and form a part of, the Fund. 
(e) TRANSFERS OF AMOUNTS.— 
(1) IN GENERAL.—The amounts required to be transferred 
to the Fund under this section shall be transferred at least 
monthly from the general fund of the Treasury to the Fund 
on the basis of estimates made by the Secretary of the Treasury. 
(2) ADJUSTMENTS.—Proper adjustment shall be made in 
amounts subsequently transferred to the extent prior estimates 
were in excess of or less than the amounts required to be 
transferred. 
(f) TERMINATION.—On September 30, 2034— 
(1) the Fund shall terminate; and 
(2) the unexpended and unobligated balance of the Fund 
shall be transferred to the appropriate fund of the Treasury. 
PART III—NAVAJO-GALLUP WATER SUPPLY 
PROJECT 
SEC. 10601. PURPOSES. 
The purposes of this part are— 
(1) to authorize the Secretary to construct, operate, and 
maintain the Navajo-Gallup Water Supply Project; 
(2) to allocate the capacity of the Project among the Nation, 
the City, and the Jicarilla Apache Nation; and 
(3) to authorize the Secretary to enter into Project repay-
ment contracts with the City and the Jicarilla Apache Nation. 
SEC. 10602. AUTHORIZATION OF NAVAJO-GALLUP WATER SUPPLY 
PROJECT. 
(a) IN GENERAL.—The Secretary, acting through the Commis-
sioner of Reclamation, is authorized to design, construct, operate, 
and maintain the Project in substantial accordance with the pre-
ferred alternative in the Draft Impact Statement. 
(b) PROJECT FACILITIES.—To provide for the delivery of San 
Juan River water to Project Participants, the Secretary may con-
struct, operate, and maintain the Project facilities described in 
the preferred alternative in the Draft Impact Statement, including: 
(1) A pumping plant on the San Juan River in the vicinity 
of Kirtland, New Mexico. 
(2)(A) A main pipeline from the San Juan River near 
Kirtland, New Mexico, to Shiprock, New Mexico, and Gallup, 
New Mexico, which follows United States Highway 491. 
(B) Any pumping plants associated with the pipeline 
authorized under subparagraph (A). 
(3)(A) A main pipeline from Cutter Reservoir to Ojo Encino, 
New Mexico, which follows United States Highway 550. 
(B) Any pumping plants associated with the pipeline 
authorized under subparagraph (A). 
(4)(A) Lateral pipelines from the main pipelines to Nation 
communities in the States of New Mexico and Arizona. 
(B) Any pumping plants associated with the pipelines 
authorized under subparagraph (A). 
(5) Any water regulation, storage or treatment facility, 
service connection to an existing public water supply system,
H. R. 146—390 
power substation, power distribution works, or other appur-
tenant works (including a building or access road) that is 
related to the Project facilities authorized by paragraphs (1) 
through (4), including power transmission facilities and associ-
ated wheeling services to connect Project facilities to existing 
high-voltage transmission facilities and deliver power to the 
Project. 
(c) ACQUISITION OF LAND.— 
(1) IN GENERAL.—The Secretary is authorized to acquire 
any land or interest in land that is necessary to construct, 
operate, and maintain the Project facilities authorized under 
subsection (b). 
(2) LAND OF THE PROJECT PARTICIPANTS.—As a condition 
of construction of the facilities authorized under this part, 
the Project Participants shall provide all land or interest in 
land, as appropriate, that the Secretary identifies as necessary 
for acquisition under this subsection at no cost to the Secretary. 
(3) LIMITATION.—The Secretary may not condemn water 
rights for purposes of the Project. 
(d) CONDITIONS.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
Secretary shall not commence construction of the facilities 
authorized under subsection (b) until such time as— 
(A) the Secretary executes the Agreement and the Con-
tract; 
(B) the contracts authorized under section 10604 are 
executed; 
(C) the Secretary— 
(i) completes an environmental impact statement 
for the Project; and 
(ii) has issued a record of decision that provides 
for a preferred alternative; and 
(D) the Secretary has entered into an agreement with 
the State of New Mexico under which the State of New 
Mexico will provide a share of the construction costs of 
the Project of not less than $50,000,000, except that the 
State of New Mexico shall receive credit for funds the 
State has contributed to construct water conveyance facili-
ties to the Project Participants to the extent that the facili-
ties reduce the cost of the Project as estimated in the 
Draft Impact Statement. 
(2) EXCEPTION.—If the Jicarilla Apache Nation elects not 
to enter into a contract pursuant to section 10604, the Sec-
retary, after consulting with the Nation, the City, and the 
State of New Mexico acting through the Interstate Stream 
Commission, may make appropriate modifications to the scope 
of the Project and proceed with Project construction if all other 
conditions for construction have been satisfied. 
(3) EFFECT OF INDIAN SELF-DETERMINATION AND EDUCATION 
ASSISTANCE
ACT.—The Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450 et seq.) shall not apply 
to the design, construction, operation, maintenance, or replace-
ment of the Project. 
(e) POWER.—The Secretary shall reserve, from existing reserva-
tions of Colorado River Storage Project power for Bureau of Rec-
lamation projects, up to 26 megawatts of power for use by the 
Project.
H. R. 146—391 
(f) CONVEYANCE OF TITLE TO PROJECT FACILITIES.— 
(1) IN GENERAL.—The Secretary is authorized to enter into 
separate agreements with the City and the Nation and, on 
entering into the agreements, shall convey title to each Project 
facility or section of a Project facility authorized under sub-
section (b) (including any appropriate interests in land) to the 
City and the Nation after— 
(A) completion of construction of a Project facility or 
a section of a Project facility that is operating and deliv-
ering water; and 
(B) execution of a Project operations agreement 
approved by the Secretary and the Project Participants 
that sets forth— 
(i) any terms and conditions that the Secretary 
determines are necessary— 
(I) to ensure the continuation of the intended 
benefits of the Project; and 
(II) to fulfill the purposes of this part; 
(ii) requirements acceptable to the Secretary and 
the Project Participants for— 
(I) the distribution of water under the Project 
or section of a Project facility; and 
(II) the allocation and payment of annual oper-
ation, maintenance, and replacement costs of the 
Project or section of a Project facility based on 
the proportionate uses of Project facilities; and 
(iii) conditions and requirements acceptable to the 
Secretary and the Project Participants for operating 
and maintaining each Project facility on completion 
of the conveyance of title, including the requirement 
that the City and the Nation shall— 
(I) comply with— 
(aa) the Compact; and 
(bb) other applicable law; and 
(II) be responsible for— 
(aa) the operation, maintenance, and 
replacement of each Project facility; and 
(bb) the accounting and management of 
water conveyance and Project finances, as nec-
essary to administer and fulfill the conditions 
of 
the 
Contract 
executed 
under 
section 
10604(a)(2)(B). 
(2) EFFECT OF CONVEYANCE.—The conveyance of title to 
each Project facility shall not affect the application of the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) relating 
to the use of the water associated with the Project. 
(3) LIABILITY.— 
(A) IN GENERAL.—Effective on the date of the convey-
ance authorized by this subsection, the United States shall 
not be held liable by any court for damages of any kind 
arising out of any act, omission, or occurrence relating 
to the land, buildings, or facilities conveyed under this 
subsection, other than damages caused by acts of negligence 
committed by the United States, or by employees or agents 
of the United States, prior to the date of conveyance.
H. R. 146—392 
(B) TORT CLAIMS.—Nothing in this section increases 
the liability of the United States beyond the liability pro-
vided in chapter 171 of title 28, United States Code (com-
monly known as the ‘‘Federal Tort Claims Act’’). 
(4) NOTICE OF PROPOSED CONVEYANCE.—Not later than 45 
days before the date of a proposed conveyance of title to any 
Project facility, the Secretary shall submit to the Committee 
on Resources of the House of Representatives and to the Com-
mittee on Energy and Natural Resources of the Senate notice 
of the conveyance of each Project facility. 
(g) COLORADO RIVER STORAGE PROJECT POWER.—The convey-
ance of Project facilities under subsection (f) shall not affect the 
availability of Colorado River Storage Project power to the Project 
under subsection (e). 
(h) REGIONAL USE OF PROJECT FACILITIES.— 
(1) IN GENERAL.—Subject to paragraph (2), Project facilities 
constructed under subsection (b) may be used to treat and 
convey non-Project water or water that is not allocated by 
subsection 10603(b) if— 
(A) capacity is available without impairing any water 
delivery to a Project Participant; and 
(B) the unallocated or non-Project water beneficiary— 
(i) has the right to use the water; 
(ii) agrees to pay the operation, maintenance, and 
replacement costs assignable to the beneficiary for the 
use of the Project facilities; and 
(iii) agrees to pay an appropriate fee that may 
be established by the Secretary to assist in the recovery 
of any capital cost allocable to that use. 
(2) EFFECT OF PAYMENTS.—Any payments to the United 
States or the Nation for the use of unused capacity under 
this subsection or for water under any subcontract with the 
Nation or the Jicarilla Apache Nation shall not alter the 
construction repayment requirements or the operation, mainte-
nance, and replacement payment requirements of the Project 
Participants. 
SEC. 10603. DELIVERY AND USE OF NAVAJO-GALLUP WATER SUPPLY 
PROJECT WATER. 
(a) USE OF PROJECT WATER.— 
(1) IN GENERAL.—In accordance with this subtitle and other 
applicable law, water supply from the Project shall be used 
for municipal, industrial, commercial, domestic, and stock 
watering purposes. 
(2) USE ON CERTAIN LAND.— 
(A) IN
GENERAL.—Subject to subparagraph (B), the 
Nation may use Project water allocations on— 
(i) land held by the United States in trust for 
the Nation and members of the Nation; and 
(ii) land held in fee by the Nation. 
(B) TRANSFER.—The Nation may transfer the purposes 
and places of use of the allocated water in accordance 
with the Agreement and applicable law. 
(3) HYDROELECTRIC POWER.— 
(A) IN
GENERAL.—Hydroelectric power may be gen-
erated as an incident to the delivery of Project water for 
authorized purposes under paragraph (1).
H. R. 146—393 
(B) 
ADMINISTRATION.—Notwithstanding 
any 
other 
provision of law— 
(i) any hydroelectric power generated under this 
paragraph shall be used or marketed by the Nation; 
(ii) the Nation shall retain any revenues from the 
sale of the hydroelectric power; and 
(iii) the United States shall have no trust obliga-
tion or other obligation to monitor, administer, or 
account for the revenues received by the Nation, or 
the expenditure of the revenues. 
(4) STORAGE.— 
(A) IN
GENERAL.—Subject to subparagraph (B), any 
water contracted for delivery under paragraph (1) that 
is not needed for current water demands or uses may 
be delivered by the Project for placement in underground 
storage in the State of New Mexico for future recovery 
and use. 
(B) 
STATE
APPROVAL.—Delivery 
of 
water 
under 
subparagraph (A) is subject to— 
(i) approval by the State of New Mexico under 
applicable provisions of State law relating to aquifer 
storage and recovery; and 
(ii) the provisions of the Agreement and this sub-
title. 
(b) PROJECT WATER AND CAPACITY ALLOCATIONS.— 
(1) DIVERSION.—Subject to availability and consistent with 
Federal and State law, the Project may divert from the Navajo 
Reservoir and the San Juan River a quantity of water to 
be allocated and used consistent with the Agreement and this 
subtitle, that does not exceed in any 1 year, the lesser of— 
(A) 37,760 acre-feet of water; or 
(B) the quantity of water necessary to supply a deple-
tion from the San Juan River of 35,890 acre-feet. 
(2) PROJECT DELIVERY CAPACITY ALLOCATIONS.— 
(A) IN
GENERAL.—The capacity of the Project shall 
be allocated to the Project Participants in accordance with 
subparagraphs (B) through (E), other provisions of this 
subtitle, and other applicable law. 
(B) DELIVERY
CAPACITY
ALLOCATION
TO
THE
CITY.— 
The Project may deliver at the point of diversion from 
the San Juan River not more than 7,500 acre-feet of water 
in any 1 year for which the City has secured rights for 
the use of the City. 
(C) DELIVERY CAPACITY ALLOCATION TO NAVAJO NATION 
COMMUNITIES IN NEW MEXICO.—For use by the Nation in 
the State of New Mexico, the Project may deliver water 
out of the water rights held by the Secretary for the Nation 
and confirmed under this subtitle, at the points of diversion 
from the San Juan River or at Navajo Reservoir in any 
1 year, the lesser of— 
(i) 22,650 acre-feet of water; or 
(ii) the quantity of water necessary to supply a 
depletion from the San Juan River of 20,780 acre- 
feet of water. 
(D) DELIVERY CAPACITY ALLOCATION TO NAVAJO NATION 
COMMUNITIES IN ARIZONA.—Subject to subsection (c), the 
Project may deliver at the point of diversion from the
H. R. 146—394 
San Juan River not more than 6,411 acre-feet of water 
in any 1 year for use by the Nation in the State of Arizona. 
(E) DELIVERY
CAPACITY
ALLOCATION
TO
JICARILLA 
APACHE NATION.—The Project may deliver at Navajo Res-
ervoir not more than 1,200 acre-feet of water in any 1 
year of the water rights of the Jicarilla Apache Nation, 
held by the Secretary and confirmed by the Jicarilla Apache 
Tribe Water Rights Settlement Act (Public Law 102–441; 
106 Stat. 2237), for use by the Jicarilla Apache Nation 
in the southern portion of the Jicarilla Apache Nation 
Reservation in the State of New Mexico. 
(3) USE
IN
EXCESS
OF
DELIVERY
CAPACITY
ALLOCATION 
QUANTITY.—Notwithstanding each delivery capacity allocation 
quantity limit described in subparagraphs (B), (C), and (E) 
of paragraph (2), the Secretary may authorize a Project Partici-
pant to exceed the delivery capacity allocation quantity limit 
of that Project Participant if— 
(A) delivery capacity is available without impairing 
any water delivery to any other Project Participant; and 
(B) the Project Participant benefitting from the 
increased allocation of delivery capacity— 
(i) has the right under applicable law to use the 
additional water; 
(ii) agrees to pay the operation, maintenance, and 
replacement costs relating to the additional use of any 
Project facility; and 
(iii) agrees, if the Project title is held by the Sec-
retary, to pay a fee established by the Secretary to 
assist in recovering capital costs relating to that addi-
tional use. 
(c) CONDITIONS FOR USE IN ARIZONA.— 
(1) REQUIREMENTS.—Project water shall not be delivered 
for use by any community of the Nation located in the State 
of Arizona under subsection (b)(2)(D) until— 
(A) the Nation and the State of Arizona have entered 
into a water rights settlement agreement approved by an 
Act of Congress that settles and waives the Nation’s claims 
to water in the Lower Basin and the Little Colorado River 
Basin in the State of Arizona, including those of the United 
States on the Nation’s behalf; and 
(B) the Secretary and the Navajo Nation have entered 
into a Navajo Reservoir water supply delivery contract 
for the physical delivery and diversion of water via the 
Project from the San Juan River system to supply uses 
in the State of Arizona. 
(2) ACCOUNTING OF USES IN ARIZONA.— 
(A) IN GENERAL.—Pursuant to paragraph (1) and not-
withstanding any other provision of law, water may be 
diverted by the Project from the San Juan River in the 
State of New Mexico in accordance with an appropriate 
permit issued under New Mexico law for use in the State 
of Arizona within the Navajo Reservation in the Lower 
Basin; provided that any depletion of water that results 
from the diversion of water by the Project from the San 
Juan River in the State of New Mexico for uses within 
the State of Arizona (including depletion incidental to the 
diversion, impounding, or conveyance of water in the State
H. R. 146—395 
of New Mexico for uses in the State of Arizona) shall 
be administered and accounted for as either— 
(i) a part of, and charged against, the available 
consumptive use apportionment made to the State of 
Arizona by Article III(a) of the Compact and to the 
Upper Basin by Article III(a) of the Colorado River 
Compact, in which case any water so diverted by the 
Project into the Lower Basin for use within the State 
of Arizona shall not be credited as water reaching 
Lee Ferry pursuant to Article III(c) and III(d) of the 
Colorado River Compact; or 
(ii) subject to subparagraph (B), a part of, and 
charged against, the consumptive use apportionment 
made to the Lower Basin by Article III(a) of the Colo-
rado River Compact, in which case it shall— 
(I) be a part of the Colorado River water that 
is apportioned to the State of Arizona in Article 
II(B) of the Consolidated Decree of the Supreme 
Court of the United States in Arizona v. California 
(547 U.S. 150) (as may be amended or supple-
mented); 
(II) be credited as water reaching Lee Ferry 
pursuant to Article III(c) and III(d) of the Colorado 
River Compact; and 
(III) be accounted as the water identified in 
section 104(a)(1)(B)(ii) of the Arizona Water Settle-
ments Act, (118 Stat. 3478). 
(B) 
LIMITATION.—Notwithstanding 
subparagraph 
(A)(ii), no water diverted by the Project shall be accounted 
for pursuant to subparagraph (A)(ii) until such time that— 
(i) the Secretary has developed and, as necessary 
and appropriate, modified, in consultation with the 
Upper Colorado River Commission and the Governors’ 
Representatives on Colorado River Operations from 
each State signatory to the Colorado River Compact, 
all operational and decisional criteria, policies, con-
tracts, guidelines or other documents that control the 
operations of the Colorado River System reservoirs and 
diversion works, so as to adjust, account for, and offset 
the diversion of water apportioned to the State of 
Arizona, pursuant to the Boulder Canyon Project Act 
(43 U.S.C. 617 et seq.), from a point of diversion on 
the San Juan River in New Mexico; provided that 
all such modifications shall be consistent with the 
provisions of this Section, and the modifications made 
pursuant to this clause shall be applicable only for 
the duration of any such diversions pursuant to section 
10603(c)(2)(A)(ii); and 
(ii) Article II(B) of the Decree of the Supreme 
Court of the United States in Arizona v. California 
(547 U.S. 150 as may be amended or supplemented) 
is administered so that diversions from the main 
stream for the Central Arizona Project, as served under 
existing contracts with the United States by diversion 
works heretofore constructed, shall be limited and 
reduced to offset any diversions made pursuant to sec-
tion 10603(c)(2)(A)(ii) of this Act. This clause shall
H. R. 146—396 
not affect, in any manner, the amount of water appor-
tioned to Arizona pursuant to the Boulder Canyon 
Project Act (43 U.S.C. 617 et seq.), or amend any 
provisions of said decree or the Colorado River Basin 
Project Act (43 U.S.C. 1501 et. seq.). 
(3) UPPER BASIN PROTECTIONS.— 
(A) CONSULTATIONS.—Henceforth, in any consultation 
pursuant to 16 U.S.C. 1536(a) with respect to water 
development in the San Juan River Basin, the Secretary 
shall confer with the States of Colorado and New Mexico, 
consistent with the provisions of section 5 of the ‘‘Principles 
for Conducting Endangered Species Act Section 7 Consulta-
tions on Water Development and Water Management 
Activities Affecting Endangered Fish Species in the San 
Juan River Basin’’ as adopted by the Coordination Com-
mittee, San Juan River Basin Recovery Implementation 
Program, on June 19, 2001, and as may be amended or 
modified. 
(B) PRESERVATION OF EXISTING RIGHTS.—Rights to the 
consumptive use of water available to the Upper Basin 
from the Colorado River System under the Colorado River 
Compact and the Compact shall not be reduced or preju-
diced by any use of water pursuant to subsection 10603(c). 
Nothing in this Act shall be construed so as to impair, 
conflict with, or otherwise change the duties and powers 
of the Upper Colorado River Commission. 
(d) FORBEARANCE.— 
(1) IN GENERAL.—Subject to paragraphs (2) and (3), during 
any year in which a shortage to the normal diversion require-
ment for any use relating to the Project within the State 
of Arizona occurs (as determined under section 11 of Public 
Law 87–483 (76 Stat. 99)), the Nation may temporarily forbear 
the delivery of the water supply of the Navajo Reservoir for 
uses in the State of New Mexico under the apportionments 
of water to the Navajo Indian Irrigation Project and the normal 
diversion requirements of the Project to allow an equivalent 
quantity of water to be delivered from the Navajo Reservoir 
water supply for municipal and domestic uses of the Nation 
in the State of Arizona under the Project. 
(2) LIMITATION OF FORBEARANCE.—The Nation may fore-
bear the delivery of water under paragraph (1) of a quantity 
not exceeding the quantity of the shortage to the normal diver-
sion requirement for any use relating to the Project within 
the State of Arizona. 
(3) EFFECT.—The forbearance of the delivery of water under 
paragraph (1) shall be subject to the requirements in subsection 
(c). 
(e) EFFECT.—Nothing in this subtitle— 
(1) authorizes the marketing, leasing, or transfer of the 
water supplies made available to the Nation under the Contract 
to non-Navajo water users in States other than the State of 
New Mexico; or 
(2) authorizes the forbearance of water uses in the State 
of New Mexico to allow uses of water in other States other 
than as authorized under subsection (d). 
(f) COLORADO RIVER COMPACTS.—Notwithstanding any other 
provision of law—
H. R. 146—397 
(1) water may be diverted by the Project from the San 
Juan River in the State of New Mexico for use within New 
Mexico in the lower basin, as that term is used in the Colorado 
River Compact; 
(2) any water diverted under paragraph (1) shall be a 
part of, and charged against, the consumptive use apportion-
ment made to the State of New Mexico by Article III(a) of 
the Compact and to the upper basin by Article III(a) of the 
Colorado River Compact; and 
(3) any water so diverted by the Project into the lower 
basin within the State of New Mexico shall not be credited 
as water reaching Lee Ferry pursuant to Articles III(c) and 
III(d) of the Colorado River Compact. 
(g) PAYMENT OF OPERATION, MAINTENANCE, AND REPLACEMENT 
COSTS.— 
(1) IN GENERAL.—The Secretary is authorized to pay the 
operation, maintenance, and replacement costs of the Project 
allocable to the Project Participants under section 10604 until 
the date on which the Secretary declares any section of the 
Project to be substantially complete and delivery of water gen-
erated by, and through, that section of the Project can be 
made to a Project participant. 
(2) PROJECT
PARTICIPANT
PAYMENTS.—Beginning on the 
date described in paragraph (1), each Project Participant shall 
pay all allocated operation, maintenance, and replacement costs 
for that substantially completed section of the Project, in accord-
ance with contracts entered into pursuant to section 10604, 
except as provided in section 10604(f). 
(h) NO PRECEDENT.—Nothing in this Act shall be construed 
as authorizing or establishing a precedent for any type of transfer 
of Colorado River System water between the Upper Basin and 
Lower Basin. Nor shall anything in this Act be construed as 
expanding the Secretary’s authority in the Upper Basin. 
(i) UNIQUE SITUATION.—Diversions by the Project consistent 
with this section address critical tribal and non-Indian water supply 
needs under unique circumstances, which include, among other 
things— 
(1) the intent to benefit an American Indian tribe; 
(2) the Navajo Nation’s location in both the Upper and 
Lower Basin; 
(3) the intent to address critical Indian water needs in 
the State of Arizona and Indian and non-Indian water needs 
in the State of New Mexico, 
(4) the location of the Navajo Nation’s capital city of 
Window Rock in the State of Arizona in close proximity to 
the border of the State of New Mexico and the pipeline route 
for the Project; 
(5) the lack of other reasonable options available for devel-
oping a firm, sustainable supply of municipal water for the 
Navajo Nation at Window Rock in the State of Arizona; and 
(6) the limited volume of water to be diverted by the 
Project to supply municipal uses in the Window Rock area 
in the State of Arizona. 
(j) CONSENSUS.—Congress notes the consensus of the Governors’ 
Representatives on Colorado River Operations of the States that 
are signatory to the Colorado River Compact regarding the diver-
sions authorized for the Project under this section.