1010 
† HR 146 EAS 
(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 limi-
tation 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 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 sub-
clause (II), effective beginning January 
1, 2020, in addition to funding made
1011 
† HR 146 EAS 
available pursuant to clauses (i), (ii), 
and (iii), if in the judgment of the Sec-
retary on an annual basis a sufficient 
amount of funding is not otherwise 
available through annual appropria-
tions, 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 Col-
orado River basin in Arizona, if a set-
tlement is subsequently approved and 
authorized by an Act of Congress and 
the implementation period has not al-
ready 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
1012 
† HR 146 EAS 
for the period of fiscal years 2020 
through 2029. 
(bb) EXCEPTION.—The limi-
tation 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 de-
scribed in clauses (ii) through (iv) of subpara-
graph (B) have not been approved and author-
ized by an Act of Congress by December 31, 
2019, the amounts reserved for the settlements 
shall no longer be reserved by the Secretary pur-
suant to subparagraph (A)(i) and shall revert to
1013 
† HR 146 EAS 
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 with-
drawals. 
(2) CREDITS TO FUND.—The interest on, and the 
proceeds from the sale or redemption of, any obliga-
tions 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 ex-
tent 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
1014 
† HR 146 EAS 
(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, oper-
ate, 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 Na-
tion; and 
(3) to authorize the Secretary to enter into 
Project repayment 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 
Commissioner of Reclamation, is authorized to design, con-
struct, operate, and maintain the Project in substantial ac-
cordance with the preferred alternative in the Draft Impact 
Statement. 
(b) PROJECT FACILITIES.—To provide for the delivery 
of San Juan River water to Project Participants, the Sec-
1015 
† HR 146 EAS 
retary may construct, operate, and maintain the Project fa-
cilities 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, power substation, power distribution 
works, or other appurtenant works (including a
1018 
† HR 146 EAS 
and proceed with Project construction if all other con-
ditions for construction have been satisfied. 
(3) EFFECT
OF
INDIAN
SELF-DETERMINATION 
AND EDUCATION ASSISTANCE ACT.—The Indian Self- 
Determination and Education Assistance Act (25 
U.S.C. 450 et seq.) shall not apply to the design, con-
struction, operation, maintenance, or replacement of 
the Project. 
(e) POWER.—The Secretary shall reserve, from existing 
reservations of Colorado River Storage Project power for 
Bureau of Reclamation projects, up to 26 megawatts of 
power for use by the Project. 
(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 subsection (b) (in-
cluding 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 delivering water; and
1019 
† HR 146 EAS 
(B) execution of a Project operations agree-
ment 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 Sec-
retary and the Project Participants for— 
(I) the distribution of water under 
the Project or section of a Project facil-
ity; and 
(II) the allocation and payment of 
annual operation, maintenance, and 
replacement costs of the Project or sec-
tion of a Project facility based on the 
proportionate uses of Project facilities; 
and 
(iii) conditions and requirements ac-
ceptable to the Secretary and the Project 
Participants for operating and maintaining 
each Project facility on completion of the
1020 
† HR 146 EAS 
conveyance of title, including the require-
ment 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, mainte-
nance, and replacement of each 
Project facility; and 
(bb) 
the 
accounting 
and 
management of water conveyance 
and Project finances, as necessary 
to administer and fulfill the con-
ditions 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 ap-
plication 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 conveyance authorized by this subsection, the 
United States shall not be held liable by any
1021 
† HR 146 EAS 
court for damages of any kind arising out of any 
act, omission, or occurrence relating to the land, 
buildings, or facilities conveyed under this sub-
section, 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. 
(B) TORT CLAIMS.—Nothing in this section 
increases the liability of the United States be-
yond the liability provided in chapter 171 of 
title 28, United States Code (commonly known 
as the ‘‘Federal Tort Claims Act’’). 
(4) NOTICE
OF
PROPOSED
CONVEYANCE.—Not 
later than 45 days before the date of a proposed con-
veyance of title to any Project facility, the Secretary 
shall submit to the Committee on Resources of the 
House of Representatives and to the Committee on 
Energy and Natural Resources of the Senate notice of 
the conveyance of each Project facility. 
(g) COLORADO RIVER STORAGE PROJECT POWER.— 
The conveyance 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.—
1022 
† HR 146 EAS 
(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, main-
tenance, and replacement costs assignable to 
the beneficiary for the use of the Project fa-
cilities; and 
(iii) agrees to pay an appropriate fee 
that may be established by the Secretary to 
assist in the recovery of any capital cost al-
locable 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 re-
quirements or the operation, maintenance, and re-
1023 
† HR 146 EAS 
placement payment requirements of the Project Par-
ticipants. 
SEC. 10603. DELIVERY AND USE OF NAVAJO-GALLUP WATER 
SUPPLY PROJECT WATER. 
(a) USE OF PROJECT WATER.— 
(1) IN GENERAL.—In accordance with this sub-
title and other applicable law, water supply from the 
Project shall be used for municipal, industrial, com-
mercial, domestic, and stock watering purposes. 
(2) USE ON CERTAIN LAND.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), the Nation may use Project water alloca-
tions on— 
(i) land held by the United States in 
trust for the Nation and members of the Na-
tion; 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 ap-
plicable law. 
(3) HYDROELECTRIC POWER.— 
(A) IN
GENERAL.—Hydroelectric power 
may be generated as an incident to the delivery
1024 
† HR 146 EAS 
of Project water for authorized purposes under 
paragraph (1). 
(B) 
ADMINISTRATION.—Notwithstanding 
any other provision of law— 
(i) any hydroelectric power generated 
under this paragraph shall be used or mar-
keted by the Nation; 
(ii) the Nation shall retain any reve-
nues from the sale of the hydroelectric 
power; and 
(iii) the United States shall have no 
trust obligation or other obligation to mon-
itor, 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—
1025 
† HR 146 EAS 
(i) approval by the State of New Mex-
ico under applicable provisions of State law 
relating to aquifer storage and recovery; 
and 
(ii) the provisions of the Agreement 
and this subtitle. 
(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 sup-
ply a depletion from the San Juan River of 
35,890 acre-feet. 
(2) PROJECT
DELIVERY
CAPACITY
ALLOCA-
TIONS.— 
(A) IN
GENERAL.—The capacity of the 
Project shall be allocated to the Project Partici-
pants in accordance with subparagraphs (B) 
through (E), other provisions of this subtitle, and 
other applicable law.
1026 
† HR 146 EAS 
(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 Mex-
ico, 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 Nav-
ajo 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 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.
1027 
† HR 146 EAS 
(E) DELIVERY
CAPACITY
ALLOCATION
TO 
JICARILLA
APACHE
NATION.—The Project may 
deliver at Navajo Reservoir 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 AL-
LOCATION QUANTITY.—Notwithstanding each delivery 
capacity allocation quantity limit described in sub-
paragraphs (B), (C), and (E) of paragraph (2), the 
Secretary may authorize a Project Participant to ex-
ceed 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;
1028 
† HR 146 EAS 
(ii) agrees to pay the operation, main-
tenance, and replacement costs relating to 
the additional use of any Project facility; 
and 
(iii) agrees, if the Project title is held 
by the Secretary, to pay a fee established by 
the Secretary to assist in recovering capital 
costs relating to that additional use. 
(c) CONDITIONS FOR USE IN ARIZONA.— 
(1) REQUIREMENTS.—Project water shall not be 
delivered for use by any community of the Nation lo-
cated 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 agree-
ment 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 sup-
ply delivery contract for the physical delivery 
and diversion of water via the Project from the
1029 
† HR 146 EAS 
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 notwithstanding 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 Ar-
izona 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 Ari-
zona (including depletion incidental to the diver-
sion, impounding, or conveyance of water in the 
State of New Mexico for uses in the State of Ari-
zona) 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
1030 
† HR 146 EAS 
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 consump-
tive use apportionment made to the Lower 
Basin by Article III(a) of the Colorado 
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 supplemented); 
(II) be credited as water reaching 
Lee Ferry pursuant to Article III(c) 
and III(d) of the Colorado River Com-
pact; and 
(III) be accounted as the water 
identified in section 104(a)(1)(B)(ii) of 
the Arizona Water Settlements Act, 
(118 Stat. 3478).
1031 
† HR 146 EAS 
(B) 
LIMITATION.—Notwithstanding 
sub-
paragraph (A)(ii), no water diverted by the 
Project shall be accounted for pursuant to sub-
paragraph (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’ Representa-
tives on Colorado River Operations from 
each State signatory to the Colorado River 
Compact, all operational and decisional cri-
teria, policies, contracts, guidelines or other 
documents that control the operations of the 
Colorado River System reservoirs and diver-
sion works, so as to adjust, account for, and 
offset the diversion of water apportioned to 
the State of Arizona, pursuant to the Boul-
der 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
1032 
† HR 146 EAS 
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 Ari-
zona 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 diver-
sions 
made 
pursuant 
to 
section 
10603(c)(2)(A)(ii) of this Act. This clause 
shall not affect, in any manner, the amount 
of water apportioned to Arizona pursuant 
to the Boulder Canyon Project Act (43 
U.S.C. 617 et seq.), or amend any provi-
sions 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
1033 
† HR 146 EAS 
with the provisions of section 5 of the ‘‘Prin-
ciples for Conducting Endangered Species Act 
Section 7 Consultations on Water Development 
and Water Management Activities Affecting En-
dangered Fish Species in the San Juan River 
Basin’’ as adopted by the Coordination Com-
mittee, San Juan River Basin Recovery Imple-
mentation 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 Sys-
tem under the Colorado River Compact and the 
Compact shall not be reduced or prejudiced 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 Colo-
rado River Commission. 
(d) FORBEARANCE.— 
(1) IN GENERAL.—Subject to paragraphs (2) and 
(3), during any year in which a shortage to the nor-
mal diversion requirement for any use relating to the 
Project within the State of Arizona occurs (as deter-
mined under section 11 of Public Law 87–483 (76
1034 
† HR 146 EAS 
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 appor-
tionments 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 forebear the delivery of water under paragraph 
(1) of a quantity not exceeding the quantity of the 
shortage to the normal diversion requirement for any 
use relating to the Project within the State of Ari-
zona. 
(3) EFFECT.—The forbearance of the delivery of 
water under paragraph (1) shall be subject to the re-
quirements 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
1035 
† HR 146 EAS 
other States other than as authorized under subsection 
(d). 
(f) COLORADO RIVER COMPACTS.—Notwithstanding 
any other provision of law— 
(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 consump-
tive use apportionment 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 Com-
pact. 
(g) PAYMENT OF OPERATION, MAINTENANCE, AND RE-
PLACEMENT COSTS.— 
(1) IN GENERAL.—The Secretary is authorized to 
pay the operation, maintenance, and replacement 
costs of the Project allocable to the Project Partici-
pants under section 10604 until the date on which the
1036 
† HR 146 EAS 
Secretary declares any section of the Project to be sub-
stantially complete and delivery of water generated 
by, and through, that section of the Project can be 
made to a Project participant. 
(2) PROJECT
PARTICIPANT
PAYMENTS.—Begin-
ning on the date described in paragraph (1), each 
Project Participant shall pay all allocated operation, 
maintenance, and replacement costs for that substan-
tially completed section of the Project, in accordance 
with contracts entered into pursuant to section 10604, 
except as provided in section 10604(f). 
(h) NO PRECEDENT.—Nothing in this Act shall be con-
strued 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;
1037 
† HR 146 EAS 
(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 developing a firm, sustainable supply of munic-
ipal 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 Com-
pact regarding the diversions authorized for the Project 
under this section. 
(k) EFFICIENT USE.—The diversions and uses author-
ized for the Project under this Section represent unique and 
efficient uses of Colorado River apportionments in a man-
ner that Congress has determined would be consistent with 
the obligations of the United States to the Navajo Nation.
1038 
† HR 146 EAS 
SEC. 10604. PROJECT CONTRACTS. 
(a) NAVAJO NATION CONTRACT.— 
(1) 
HYDROLOGIC
DETERMINATION.—Congress 
recognizes that the Hydrologic Determination nec-
essary to support approval of the Contract has been 
completed. 
(2) CONTRACT APPROVAL.— 
(A) APPROVAL.— 
(i) IN GENERAL.—Except to the extent 
that any provision of the Contract conflicts 
with this subtitle, Congress approves, rati-
fies, and confirms the Contract. 
(ii) AMENDMENTS.—To the extent any 
amendment is executed to make the Con-
tract consistent with this subtitle, that 
amendment is authorized, ratified, and con-
firmed. 
(B) EXECUTION OF CONTRACT.—The Sec-
retary, acting on behalf of the United States, 
shall enter into the Contract to the extent that 
the Contract does not conflict with this subtitle 
(including any amendment that is required to 
make the Contract consistent with this subtitle). 
(3) 
NONREIMBURSABILITY
OF
ALLOCATED 
COSTS.—The following costs shall be nonreimbursable
1039 
† HR 146 EAS 
and not subject to repayment by the Nation or any 
other Project beneficiary: 
(A) Any share of the construction costs of 
the Nation relating to the Project authorized by 
section 10602(a). 
(B) Any costs relating to the construction of 
the Navajo Indian Irrigation Project that may 
otherwise be allocable to the Nation for use of 
any facility of the Navajo Indian Irrigation 
Project to convey water to each Navajo commu-
nity under the Project. 
(C) Any costs relating to the construction of 
Navajo Dam that may otherwise be allocable to 
the Nation for water deliveries under the Con-
tract. 
(4) OPERATION, MAINTENANCE, AND
REPLACE-
MENT
OBLIGATION.—Subject to subsection (f), the 
Contract shall include provisions under which the Na-
tion shall pay any costs relating to the operation, 
maintenance, and replacement of each facility of the 
Project that are allocable to the Nation. 
(5) LIMITATION, CANCELLATION, TERMINATION, 
AND RESCISSION.—The Contract may be limited by a 
term of years, canceled, terminated, or rescinded only 
by an Act of Congress.
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† HR 146 EAS 
(b) CITY OF GALLUP CONTRACT.— 
(1) 
CONTRACT
AUTHORIZATION.—Consistent 
with this subtitle, the Secretary is authorized to enter 
into a repayment contract with the City that requires 
the City— 
(A) to repay, within a 50-year period, the 
share of the construction costs of the City relat-
ing to the Project, with interest as provided 
under section 10305; and 
(B) consistent with section 10603(g), to pay 
the operation, maintenance, and replacement 
costs of the Project that are allocable to the City. 
(2) CONTRACT PREPAYMENT.— 
(A) IN GENERAL.—The contract authorized 
under paragraph (1) may allow the City to sat-
isfy the repayment obligation of the City for con-
struction costs of the Project on the payment of 
the share of the City prior to the initiation of 
construction. 
(B) AMOUNT.—The amount of the share of 
the City described in subparagraph (A) shall be 
determined by agreement between the Secretary 
and the City. 
(C) REPAYMENT OBLIGATION.—Any repay-
ment obligation established by the Secretary and
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† HR 146 EAS 
the City pursuant to subparagraph (A) shall be 
subject to a final cost allocation by the Secretary 
on project completion and to the limitations set 
forth in paragraph (3). 
(3) SHARE OF CONSTRUCTION COSTS.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), the Secretary shall determine the share of 
the construction costs of the Project allocable to 
the City and establish the percentage of the allo-
cated construction costs that the City shall be re-
quired to repay pursuant to the contract entered 
into under paragraph (1), based on the ability of 
the City to pay. 
(B) 
MINIMUM
PERCENTAGE.—Notwith-
standing subparagraph (A), the repayment obli-
gation of the City shall be at least 25 percent of 
the construction costs of the Project that are allo-
cable to the City, but shall in no event exceed 35 
percent. 
(4) EXCESS
CONSTRUCTION
COSTS.—Any con-
struction costs of the Project allocable to the City in 
excess of the repayment obligation of the City, as de-
termined under paragraph (3), shall be nonreimburs-
able.
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† HR 146 EAS 
(5) GRANT
FUNDS.—A grant from any other 
Federal source shall not be credited toward the 
amount required to be repaid by the City under a re-
payment contract. 
(6) TITLE TRANSFER.—If title is transferred to 
the City prior to repayment under section 10602(f), 
the City shall be required to provide assurances satis-
factory to the Secretary of fulfillment of the remain-
ing repayment obligation of the City. 
(7) WATER DELIVERY SUBCONTRACT.—The Sec-
retary shall not enter into a contract under para-
graph (1) with the City until the City has secured a 
water supply for the City’s portion of the Project de-
scribed in section 10603(b)(2)(B), by entering into, as 
approved by the Secretary, a water delivery sub-
contract for a period of not less than 40 years begin-
ning on the date on which the construction of any fa-
cility of the Project serving the City is completed, 
with— 
(A) the Nation, as authorized by the Con-
tract; 
(B) the Jicarilla Apache Nation, as author-
ized by the settlement contract between the 
United States and the Jicarilla Apache Tribe, 
authorized by the Jicarilla Apache Tribe Water
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† HR 146 EAS 
Rights Settlement Act (Public Law 102–441; 106 
Stat. 2237); or 
(C) an acquired alternate source of water, 
subject to approval of the Secretary and the 
State of New Mexico, acting through the New 
Mexico Interstate Stream Commission and the 
New Mexico State Engineer. 
(c) JICARILLA APACHE NATION CONTRACT.— 
(1) 
CONTRACT
AUTHORIZATION.—Consistent 
with this subtitle, the Secretary is authorized to enter 
into a repayment contract with the Jicarilla Apache 
Nation that requires the Jicarilla Apache Nation— 
(A) to repay, within a 50-year period, the 
share of any construction cost of the Jicarilla 
Apache Nation relating to the Project, with in-
terest as provided under section 10305; and 
(B) consistent with section 10603(g), to pay 
the operation, maintenance, and replacement 
costs of the Project that are allocable to the 
Jicarilla Apache Nation. 
(2) CONTRACT PREPAYMENT.— 
(A) IN GENERAL.—The contract authorized 
under paragraph (1) may allow the Jicarilla 
Apache Nation to satisfy the repayment obliga-
tion of the Jicarilla Apache Nation for construc-
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† HR 146 EAS 
tion costs of the Project on the payment of the 
share of the Jicarilla Apache Nation prior to the 
initiation of construction. 
(B) AMOUNT.—The amount of the share of 
Jicarilla Apache Nation described in subpara-
graph (A) shall be determined by agreement be-
tween the Secretary and the Jicarilla Apache 
Nation. 
(C) REPAYMENT OBLIGATION.—Any repay-
ment obligation established by the Secretary and 
the Jicarilla Apache Nation pursuant to sub-
paragraph (A) shall be subject to a final cost al-
location by the Secretary on project completion 
and to the limitations set forth in paragraph (3). 
(3) SHARE OF CONSTRUCTION COSTS.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), the Secretary shall determine the share of 
the construction costs of the Project allocable to 
the Jicarilla Apache Nation and establish the 
percentage of the allocated construction costs of 
the Jicarilla Apache Nation that the Jicarilla 
Apache Nation shall be required to repay based 
on the ability of the Jicarilla Apache Nation to 
pay.
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† HR 146 EAS 
(B) 
MINIMUM
PERCENTAGE.—Notwith-
standing subparagraph (A), the repayment obli-
gation of the Jicarilla Apache Nation shall be at 
least 25 percent of the construction costs of the 
Project that are allocable to the Jicarilla Apache 
Nation, but shall in no event exceed 35 percent. 
(4) EXCESS
CONSTRUCTION
COSTS.—Any con-
struction costs of the Project allocable to the Jicarilla 
Apache Nation in excess of the repayment obligation 
of the Jicarilla Apache Nation as determined under 
paragraph (3), shall be nonreimbursable. 
(5) GRANT
FUNDS.—A grant from any other 
Federal source shall not be credited toward the share 
of the Jicarilla Apache Nation of construction costs. 
(6) 
NAVAJO
INDIAN
IRRIGATION
PROJECT 
COSTS.—The Jicarilla Apache Nation shall have no 
obligation to repay any Navajo Indian Irrigation 
Project construction costs that might otherwise be al-
locable to the Jicarilla Apache Nation for use of the 
Navajo Indian Irrigation Project facilities to convey 
water to the Jicarilla Apache Nation, and any such 
costs shall be nonreimbursable. 
(d) CAPITAL COST ALLOCATIONS.— 
(1) IN GENERAL.—For purposes of estimating 
the capital repayment requirements of the Project
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† HR 146 EAS 
Participants under this section, the Secretary shall 
review and, as appropriate, update the Draft Impact 
Statement allocating capital construction costs for the 
Project. 
(2) FINAL COST ALLOCATION.—The repayment 
contracts entered into with Project Participants 
under this section shall require that the Secretary 
perform a final cost allocation when construction of 
the Project is determined to be substantially complete. 
(3) REPAYMENT
OBLIGATION.—The Secretary 
shall determine the repayment obligation of the 
Project Participants based on the final cost allocation 
identifying reimbursable and nonreimbursable capital 
costs of the Project consistent with this subtitle. 
(e) OPERATION, MAINTENANCE, AND REPLACEMENT 
COST ALLOCATIONS.—For purposes of determining the op-
eration, maintenance, and replacement obligations of the 
Project Participants under this section, the Secretary shall 
review and, as appropriate, update the Draft Impact State-
ment that allocates operation, maintenance, and replace-
ment costs for the Project. 
(f) TEMPORARY WAIVERS OF PAYMENTS.— 
(1) IN GENERAL.—On the date on which the Sec-
retary declares a section of the Project to be substan-
tially complete and delivery of water generated by