991 
† HR 146 EAS 
each law of the Federal Government relating to the protec-
tion of the environment, including— 
(1) the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.); and 
(2) the Endangered Species Act of 1973 (16 
U.S.C. 1531 et seq.). 
SEC. 10304. NO REALLOCATION OF COSTS. 
(a) EFFECT OF ACT.—Notwithstanding any other pro-
vision of law, the Secretary shall not reallocate or reassign 
any costs of projects that have been authorized under the 
Act of April 11, 1956 (commonly known as the ‘‘Colorado 
River Storage Project Act’’) (43 U.S.C. 620 et seq.), as of 
the date of enactment of this Act because of— 
(1) the authorization of the Navajo-Gallup Water 
Supply Project under this subtitle; or 
(2) the changes in the uses of the water diverted 
by the Navajo Indian Irrigation Project or the waters 
stored in the Navajo Reservoir authorized under this 
subtitle. 
(b) USE
OF POWER REVENUES.—Notwithstanding 
any other provision of law, no power revenues under the 
Act of April 11, 1956 (commonly known as the ‘‘Colorado 
River Storage Project Act’’) (43 U.S.C. 620 et seq.), shall 
be used to pay or reimburse any costs of the Navajo Indian 
Irrigation Project or Navajo-Gallup Water Supply Project.
992 
† HR 146 EAS 
SEC. 10305. INTEREST RATE. 
Notwithstanding any other provision of law, the inter-
est rate applicable to any repayment contract entered into 
under section 10604 shall be equal to the discount rate for 
Federal water resources planning, as determined by the Sec-
retary. 
PART I—AMENDMENTS TO THE COLORADO RIVER 
STORAGE PROJECT ACT AND PUBLIC LAW 87–483 
SEC. 10401. AMENDMENTS TO THE COLORADO RIVER STOR-
AGE PROJECT ACT. 
(a) PARTICIPATING PROJECTS.—Paragraph (2) of the 
first section of the Act of April 11, 1956 (commonly known 
as the ‘‘Colorado River Storage Project Act’’) (43 U.S.C. 
620(2)) is amended by inserting ‘‘the Navajo-Gallup Water 
Supply Project,’’ after ‘‘Fruitland Mesa,’’. 
(b) NAVAJO RESERVOIR WATER BANK.—The Act of 
April 11, 1956 (commonly known as the ‘‘Colorado River 
Storage Project Act’’) is amended— 
(1) by redesignating section 16 (43 U.S.C. 620o) 
as section 17; and 
(2) by inserting after section 15 (43 U.S.C. 
620n) the following: 
‘‘SEC. 16. (a) The Secretary of the Interior may create 
and operate within the available capacity of Navajo Res-
ervoir a top water bank.
993 
† HR 146 EAS 
‘‘(b) Water made available for the top water bank in 
accordance with subsections (c) and (d) shall not be subject 
to section 11 of Public Law 87–483 (76 Stat. 99). 
‘‘(c) The top water bank authorized under subsection 
(a) shall be operated in a manner that— 
‘‘(1) is consistent with applicable law, except 
that, notwithstanding any other provision of law, 
water for purposes other than irrigation may be 
stored in the Navajo Reservoir pursuant to the rules 
governing the top water bank established under this 
section; and 
‘‘(2) does not impair the ability of the Secretary 
of the Interior to deliver water under contracts en-
tered into under— 
‘‘(A) Public Law 87–483 (76 Stat. 96); and 
‘‘(B) New Mexico State Engineer File Nos. 
2847, 2848, 2849, and 2917. 
‘‘(d)(1) The Secretary of the Interior, in cooperation 
with the State of New Mexico (acting through the Interstate 
Stream Commission), shall develop any terms and proce-
dures for the storage, accounting, and release of water in 
the top water bank that are necessary to comply with sub-
section (c). 
‘‘(2) The terms and procedures developed under para-
graph (1) shall include provisions requiring that—
994 
† HR 146 EAS 
‘‘(A) the storage of banked water shall be subject 
to approval under State law by the New Mexico State 
Engineer to ensure that impairment of any existing 
water right does not occur, including storage of water 
under New Mexico State Engineer File No. 2849; 
‘‘(B) water in the top water bank be subject to 
evaporation and other losses during storage; 
‘‘(C) water in the top water bank be released for 
delivery to the owner or assigns of the banked water 
on request of the owner, subject to reasonable sched-
uling requirements for making the release; 
‘‘(D) water in the top water bank be the first 
water spilled or released for flood control purposes in 
anticipation of a spill, on the condition that top 
water bank water shall not be released or included for 
purposes of calculating whether a release should occur 
for purposes of satisfying the flow recommendations of 
the San Juan River Basin Recovery Implementation 
Program; and 
‘‘(E) water eligible for banking in the top water 
bank shall be water that otherwise would have been 
diverted and beneficially used in New Mexico that 
year. 
‘‘(e) The Secretary of the Interior may charge fees to 
water users that use the top water bank in amounts suffi-
995 
† HR 146 EAS 
cient to cover the costs incurred by the United States in 
administering the water bank.’’. 
SEC. 10402. AMENDMENTS TO PUBLIC LAW 87–483. 
(a) NAVAJO INDIAN IRRIGATION PROJECT.—Public 
Law 87–483 (76 Stat. 96) is amended by striking section 
2 and inserting the following: 
‘‘SEC. 2. (a) In accordance with the Act of April 11, 
1956 (commonly known as the ‘Colorado River Storage 
Project Act’) (43 U.S.C. 620 et seq.), the Secretary of the 
Interior is authorized to construct, operate, and maintain 
the Navajo Indian Irrigation Project to provide irrigation 
water to a service area of not more than 110,630 acres of 
land. 
‘‘(b)(1) Subject to paragraph (2), the average annual 
diversion by the Navajo Indian Irrigation Project from the 
Navajo Reservoir over any consecutive 10-year period shall 
be the lesser of— 
‘‘(A) 508,000 acre-feet per year; or 
‘‘(B) the quantity of water necessary to supply 
an average depletion of 270,000 acre-feet per year. 
‘‘(2) The quantity of water diverted for any 1 year 
shall not exceed the average annual diversion determined 
under paragraph (1) by more than 15 percent. 
‘‘(c) In addition to being used for irrigation, the water 
diverted by the Navajo Indian Irrigation Project under sub-
996 
† HR 146 EAS 
section (b) may be used within the area served by Navajo 
Indian Irrigation Project facilities for the following pur-
poses: 
‘‘(1) Aquaculture purposes, including the rearing 
of fish in support of the San Juan River Basin Re-
covery Implementation Program authorized by Public 
Law 106–392 (114 Stat. 1602). 
‘‘(2) Domestic, industrial, or commercial pur-
poses relating to agricultural production and proc-
essing. 
‘‘(3)(A) The generation of hydroelectric power as 
an incident to the diversion of water by the Navajo 
Indian Irrigation Project for authorized purposes. 
‘‘(B) Notwithstanding any other provision of 
law— 
‘‘(i) any hydroelectric power generated 
under this paragraph shall be used or marketed 
by the Navajo Nation; 
‘‘(ii) the Navajo Nation shall retain any 
revenues from the sale of the hydroelectric power; 
and 
‘‘(iii) the United States shall have no trust 
obligation to monitor, administer, or account for 
the revenues received by the Navajo Nation, or 
the expenditure of the revenues.
997 
† HR 146 EAS 
‘‘(4) The implementation of the alternate water 
source provisions described in subparagraph 9.2 of the 
agreement executed under section 10701(a)(2) of the 
Northwestern New Mexico Rural Water Projects Act. 
‘‘(d) The Navajo Indian Irrigation Project water di-
verted under subsection (b) may be transferred to areas lo-
cated within or outside the area served by Navajo Indian 
Irrigation Project facilities, and within or outside the 
boundaries of the Navajo Nation, for any beneficial use in 
accordance with— 
‘‘(1) the agreement executed under section 
10701(a)(2) of the Northwestern New Mexico Rural 
Water Projects Act; 
‘‘(2) 
the 
contract 
executed 
under 
section 
10604(a)(2)(B) of that Act; and 
‘‘(3) any other applicable law. 
‘‘(e) The Secretary may use the capacity of the Navajo 
Indian Irrigation Project works to convey water supplies 
for— 
‘‘(1) the Navajo-Gallup Water Supply Project 
under section 10602 of the Northwestern New Mexico 
Rural Water Projects Act; or 
‘‘(2) other nonirrigation purposes authorized 
under subsection (c) or (d).
998 
† HR 146 EAS 
‘‘(f)(1) Repayment of the costs of construction of the 
project (as authorized in subsection (a)) shall be in accord-
ance with the Act of April 11, 1956 (commonly known as 
the ‘Colorado River Storage Project Act’) (43 U.S.C. 620 
et seq.), including section 4(d) of that Act. 
‘‘(2) The Secretary shall not reallocate, or require re-
payment of, construction costs of the Navajo Indian Irriga-
tion Project because of the conveyance of water supplies for 
nonirrigation purposes under subsection (e).’’. 
(b) RUNOFF ABOVE NAVAJO DAM.—Section 11 of Pub-
lic Law 87–483 (76 Stat. 100) is amended by adding at 
the end the following: 
‘‘(d)(1) For purposes of implementing in a year of pro-
spective shortage the water allocation procedures established 
by subsection (a), the Secretary of the Interior shall deter-
mine the quantity of any shortages and the appropriate ap-
portionment of water using the normal diversion require-
ments on the flow of the San Juan River originating above 
Navajo Dam based on the following criteria: 
‘‘(A) The quantity of diversion or water delivery 
for the current year anticipated to be necessary to ir-
rigate land in accordance with cropping plans pre-
pared by contractors. 
‘‘(B) The annual diversion or water delivery de-
mands for the current year anticipated for non-irri-
999 
† HR 146 EAS 
gation uses under water delivery contracts, including 
contracts authorized by the Northwestern New Mexico 
Rural Water Projects Act, but excluding any current 
demand for surface water for placement into aquifer 
storage for future recovery and use. 
‘‘(C) An annual normal diversion demand of 
135,000 acre-feet for the initial stage of the San 
Juan-Chama Project authorized by section 8, which 
shall be the amount to which any shortage is applied. 
‘‘(2) The Secretary shall not include in the normal di-
version requirements— 
‘‘(A) the quantity of water that reliably can be 
anticipated to be diverted or delivered under a con-
tract 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 sup-
plied 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 sup-
ply 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 Sup-
1000 
† HR 146 EAS 
ply Project authorized by section 10603 of the North-
western New Mexico Rural Water Projects Act, ex-
cluding the quantity of water anticipated to be di-
verted 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 paragraph 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 determined 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
1001 
† HR 146 EAS 
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 vol-
ume basis. 
‘‘(g) The Secretary of the Interior may revise a deter-
mination of shortages, apportionments, or allocations of 
water under subsections (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 sup-
plies. 
‘‘(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 de-
mands of contractors and subcontractors of the Navajo Res-
ervoir water supply that are diverting water below Navajo 
Dam.’’.
1002 
† HR 146 EAS 
SEC. 10403. EFFECT ON FEDERAL WATER LAW. 
Unless expressly provided in this subtitle, nothing in 
this subtitle 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 ap-
proved 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);
1003 
† HR 146 EAS 
(10) the Jicarilla Apache Tribe Water Rights 
Settlement Act (106 Stat. 2237); or 
(11) section 205 of the Energy and Water Devel-
opment 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 de-
posit in the Fund, if available, $120,000,000 of the 
revenues that would otherwise be deposited for the fis-
cal 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 de-
posited in the Fund under paragraph (1) shall be 
made available pursuant to this section—