‘‘(i) by reason of changes since Octo-
ber 2022 in construction cost changes in 
applicable regulatory standards, as indi-
cated by engineering cost indices applicable 
to the types of construction involved; and 
‘‘(ii) to address construction cost 
changes necessary to account for unfore-
seen market volatility that may not other-
wise be captured by engineering cost indi-
ces described in clause (i), as determined 
by the Secretary, including repricing appli-
cable to the types of construction and cur-
rent industry standards involved. 
‘‘(B) DEFERRED CONSTRUCTION FUND.— 
Amounts deposited in the Deferred Construc-
tion Fund shall not be adjusted pursuant to 
this paragraph.’’; and 
(C) in paragraph (4)(B), by striking ‘‘10 
years’’ and inserting ‘‘15 years’’; and 
(2) in subsection (b)— 
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘$30,000,000, as adjusted under paragraph 
(3), for the period of fiscal years 2009 through 
2019’’ and inserting ‘‘$37,500,000, as adjusted 
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under paragraph (4), for the period of fiscal 
years 2009 through 2032’’; 
(B) in paragraph (2), by striking ‘‘2024’’ 
and inserting ‘‘2032’’; and 
(C) in paragraph (3), by striking ‘‘The 
amount under paragraph (1)’’ and inserting 
‘‘The amount under paragraphs (1) and (2)’’. 
(e) TAXATION OF CONSTRUCTION, OPERATION, AND 
MAINTENANCE OF PROJECT FACILITIES.—Part III of the 
Northwestern New Mexico Rural Water Projects Act 
(Public Law 111–11; 123 Stat. 1379) is amended by add-
ing at the end the following: 
‘‘SEC. 10610. TAXATION OF CONSTRUCTION, OPERATION, 
AND MAINTENANCE OF PROJECT FACILITIES. 
‘‘(a) NATION LAND.—Any activity constituting the 
construction, operation, or maintenance of Project facili-
ties— 
‘‘(1) shall, if the activity takes place on land 
that is held in trust by the United States for the 
benefit of the Nation, be subject to taxation by the 
Nation; and 
‘‘(2) shall not be subject to any fee, tax, assess-
ment, levy, or other charge imposed by any State or 
political subdivision of a State. 
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‘‘(b) OTHER LAND.—Any activity constituting the 
construction, operation, or maintenance of Project facili-
ties— 
‘‘(1) shall, if the activity takes place on land 
other than the land described in subsection (a)(1), 
be subject to taxation by the State in which the land 
is located, or by a political subdivision of that State 
to the extent authorized by the laws of that State; 
and 
‘‘(2) shall not be subject to any fee, tax, assess-
ment, levy, or other charge imposed by the Nation.’’. 
SEC. 4. NAVAJO NATION WATER RIGHTS. 
(a) AGREEMENT.—Section 10701(e) of the North-
western New Mexico Rural Water Projects Act (Public 
Law 111–11; 123 Stat. 1400; 129 Stat. 528) is amend-
ed— 
(1) in paragraph (1)(A)— 
(A) by striking clause (vii) and inserting 
the following: 
‘‘(vii) NAVAJO
NATION
WATER
RE-
SOURCES DEVELOPMENT TRUST FUND.— 
Not later than December 31, 2019, the 
United States shall make all deposits into 
the Navajo Nation Water Resources Devel-
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opment Trust Fund established by section 
10702(a)(1).’’; 
(B) in clause (ix), by striking ‘‘2024’’ and 
inserting ‘‘2029’’; and 
(C) by adding at the end the following: 
‘‘(x) 
DEFERRED
CONSTRUCTION 
FUND.— 
‘‘(I) IN
GENERAL.—Not later 
than December 31, 2029, the United 
States shall make all deposits into the 
Deferred Construction Fund in ac-
cordance with section 10602(i)(3). 
‘‘(II) PROJECT
DEADLINE.—On 
deposit of the amounts into the De-
ferred Construction Fund under sub-
clause (I), even if certain Project fa-
cilities have not yet been constructed, 
the Secretary shall be deemed to have 
met the deadline described in clause 
(ix).’’; and 
(2) in paragraph (2)(B)— 
(A) in clause (i), by striking ‘‘Trust Fund’’ 
and inserting ‘‘Settlement Trust Funds’’; and 
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(B) in clause (ii), by striking ‘‘Trust 
Fund’’ 
and 
inserting 
‘‘Settlement 
Trust 
Funds’’. 
(b) SETTLEMENT TRUST FUNDS.—Section 10702 of 
the Northwestern New Mexico Rural Water Projects Act 
(Public Law 111–11; 123 Stat. 1402) is amended to read 
as follows: 
‘‘SEC. 10702. SETTLEMENT TRUST FUNDS. 
‘‘(a) NAVAJO NATION WATER RESOURCES DEVELOP-
MENT TRUST FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury a fund, to be known as the ‘Navajo 
Nation Water Resources Development Trust Fund’, 
consisting of— 
‘‘(A) such amounts as are appropriated to 
the Navajo Nation Water Resources Develop-
ment Trust Fund under paragraph (5); and 
‘‘(B) any interest earned on investment of 
amounts in the Navajo Nation Water Resources 
Development Trust Fund under paragraph (3). 
‘‘(2) USE
OF
FUNDS.—The Nation may use 
amounts in the Navajo Nation Water Resources De-
velopment Trust Fund— 
‘‘(A) to investigate, construct, operate, 
maintain, or replace water project facilities, in-
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cluding facilities conveyed to the Nation under 
this subtitle and facilities owned by the United 
States for which the Nation is responsible for 
operation, maintenance, and replacement costs; 
and 
‘‘(B) to investigate, implement, or improve 
a water conservation measure (including a me-
tering or monitoring activity) necessary for the 
Nation to make use of a water right of the Na-
tion under the Agreement. 
‘‘(3) INVESTMENT.—Beginning on October 1, 
2019, the Secretary shall invest amounts in the Nav-
ajo Nation Water Resources Development Trust 
Fund in accordance with subsection (e). 
‘‘(4) INVESTMENT EARNINGS .—Any investment 
earnings, including interest, credited to amounts 
held in the Navajo Nation Water Resources Develop-
ment Trust Fund are authorized to be used in ac-
cordance with paragraph (2). 
‘‘(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated for deposit 
in the Navajo Nation Water Resources Development 
Trust Fund— 
‘‘(A) $6,000,000 for each of fiscal years 
2010 through 2014; and 
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‘‘(B) $4,000,000 for each of fiscal years 
2015 through 2019. 
‘‘(6) AVAILABILITY.—Any amount authorized to 
be appropriated to the Navajo Nation Water Re-
sources Development Trust Fund under paragraph 
(5) shall not be available for expenditure or with-
drawal— 
‘‘(A) before December 31, 2019; and 
‘‘(B) until the date on which the court in 
the stream adjudication has entered— 
‘‘(i) the Partial Final Decree; and 
‘‘(ii) the Supplemental Partial Final 
Decree. 
‘‘(7) MANAGEMENT.—The Secretary shall man-
age the Navajo Nation Water Resources Develop-
ment Trust Fund in accordance with subsection (d). 
‘‘(8) CONDITIONS
FOR
EXPENDITURE
AND 
WITHDRAWAL.—After the funds become available 
pursuant to paragraph (6), all expenditures and 
withdrawals by the Nation of funds in the Navajo 
Nation Water Resources Development Trust Fund 
must comply with the requirements of subsection (f). 
‘‘(b) NAVAJO NATION OPERATIONS, MAINTENANCE, 
AND REPLACEMENT TRUST FUND.— 
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‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a trust fund to be known as the ‘Navajo Na-
tion Operations, Maintenance, and Replacement 
Trust Fund’ for the purposes set forth in paragraph 
(2), to be managed, invested, and distributed by the 
Secretary, and to remain available until expended, 
withdrawn, or reverted to the general fund of the 
Treasury, consisting of the amounts deposited in the 
trust fund under paragraph (3), together with any 
interests earned on those amounts under paragraph 
(4). 
‘‘(2) USE
OF
FUNDS.—The Nation may use 
amounts in the Navajo Nation Operations, Mainte-
nance, and Replacement Trust Fund to pay oper-
ations, maintenance, and replacement costs of the 
Project allocable to the Nation under section 10604. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated for deposit 
in the Navajo Nation Operations, Maintenance, and 
Replacement Trust Fund $250,000,000. 
‘‘(4) INVESTMENT.—Upon deposit of funding 
into the Navajo Nation Operations, Maintenance, 
and Replacement Trust Fund pursuant to para-
graph (3), the Secretary shall invest amounts depos-
ited in accordance with subsection (e). 
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‘‘(5) INVESTMENT EARNINGS.—Any investment 
earnings, including interest, credited to amounts 
held in the Navajo Nation Operations, Maintenance, 
and Replacement Trust Fund are authorized to be 
used in accordance with paragraph (2). 
‘‘(6) AVAILABILITY.—Any amount authorized to 
be appropriated to the Navajo Nation Operations, 
Maintenance, and Replacement Trust Fund under 
paragraph (3) shall not be available for expenditure 
or withdrawal until the Nation is responsible for 
payment of operation, maintenance, and replacement 
costs as set forth in section 10603(g). 
‘‘(7) FLUCTUATION IN COSTS.— 
‘‘(A) IN GENERAL.—The amounts author-
ized to be appropriated under paragraph (3) 
shall be increased or decreased, as appropriate, 
by such amounts as may be justified by reason 
of ordinary fluctuations in costs occurring after 
October 2022 as indicated by the Bureau of 
Reclamation Operation and Maintenance Cost 
Index. 
‘‘(B) REPETITION.—The adjustment proc-
ess under this subparagraph shall be repeated 
for each subsequent amount appropriated until 
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the amount authorized, as adjusted, has been 
appropriated. 
‘‘(C) PERIOD OF INDEXING.—The period 
of indexing adjustment under this subpara-
graph for any increment of funding shall end on 
the date on which the funds are deposited into 
the Navajo Nation Operations, Maintenance, 
and Replacement Trust Fund. 
‘‘(8) MANAGEMENT.—The Secretary shall man-
age the Navajo Nation Operations, Maintenance, 
and Replacement Trust Fund in accordance with 
subsection (d). 
‘‘(9) CONDITIONS
FOR
EXPENDITURE
AND 
WITHDRAWAL.—All expenditures and withdrawals by 
the Nation of funds in the Navajo Nation Oper-
ations, Maintenance, and Replacement Trust Fund 
must comply with the requirements of subsection (f). 
‘‘(c) JICARILLA
APACHE
NATION
OPERATIONS, 
MAINTENANCE, AND REPLACEMENT TRUST FUND.— 
‘‘(1) PREREQUISITE
TO
ESTABLISHMENT.— 
Prior to establishment of the trust fund under para-
graph (2), the Secretary shall conduct an Ability to 
Pay study to determine what operation, mainte-
nance, and replacement costs of that section of the 
Project serving the Jicarilla Apache Nation are in 
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excess of the ability of the Jicarilla Apache Nation 
to pay. 
‘‘(2) ESTABLISHMENT.—Upon completion of 
the Ability to Pay study as set forth in paragraph 
(1), the Secretary shall establish a trust fund to be 
known as the ‘Jicarilla Apache Nation Operations, 
Maintenance, and Replacement Trust Fund’ for the 
purposes set forth in paragraph (3), to be managed, 
invested, and distributed by the Secretary and to re-
main available until expended, withdrawn, or re-
verted to the general fund of the Treasury, con-
sisting of the amounts deposited in the trust fund 
under paragraph (4), together with any interests 
earned on those amounts under paragraph (5). 
‘‘(3) USE
OF
FUNDS.—The Jicarilla Apache 
Nation may use amounts in the Jicarilla Apache Na-
tion Operations, Maintenance, and Replacement 
Trust Fund to pay operations, maintenance, and re-
placement costs of the Project allocable to the 
Jicarilla Nation under section 10604. 
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated for deposit 
in the Jicarilla Apache Nation Operations, Mainte-
nance, and Replacement Trust Fund the amounts 
the Secretary has determined are in excess of the 
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ability of the Jicarilla Apache Nation to pay in the 
Ability to Pay study required under paragraph (1) 
up to a maximum of $10,000,000. 
‘‘(5) INVESTMENT.—Upon deposit of funding 
into the Jicarilla Apache Nation Operations, Mainte-
nance, and Replacement Trust Fund pursuant to 
paragraph (4), the Secretary shall invest amounts in 
the fund in accordance with subsection (e). 
‘‘(6) INVESTMENT EARNINGS.—Any investment 
earnings, including interest, credited to amounts 
held in the Jicarilla Apache Nation Operations, 
Maintenance, and Replacement Trust Fund are au-
thorized to be used in accordance with paragraph 
(3). 
‘‘(7) AVAILABILITY.—Any amount authorized to 
be appropriated to the Jicarilla Apache Nation Op-
erations, Maintenance, and Replacement Trust Fund 
under paragraph (4) shall not be available for ex-
penditure or withdrawal until the Jicarilla Apache 
Nation is responsible for payment of operation, 
maintenance, and replacement costs as set forth in 
section 10603(g). 
‘‘(8) FLUCTUATION IN COSTS.— 
‘‘(A) IN GENERAL.—The amounts author-
ized to be appropriated under paragraph (4) 
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shall be increased or decreased, as appropriate, 
by such amounts as may be justified by reason 
of ordinary fluctuations in costs occurring after 
October 2022 as indicated by the Bureau of 
Reclamation Operation and Maintenance Cost 
Index. 
‘‘(B) REPETITION.—The adjustment proc-
ess under this subparagraph shall be repeated 
for each subsequent amount appropriated until 
the amount authorized, as adjusted, has been 
appropriated. 
‘‘(C) PERIOD OF INDEXING.—The period 
of indexing adjustment under this subpara-
graph for any increment of funding shall end on 
the date on which the funds are deposited into 
the Jicarilla Apache Nation Operations, Mainte-
nance, and Replacement Trust Fund. 
‘‘(9) MANAGEMENT.—The Secretary shall man-
age the Jicarilla Apache Nation Operations, Mainte-
nance, and Replacement Trust Fund in accordance 
with subsection (d). 
‘‘(10) CONDITIONS
FOR
EXPENDITURE
AND 
WITHDRAWAL.—All expenditures and withdrawals by 
the Jicarilla Apache Nation of funds in the Jicarilla 
Apache Nation Operations, Maintenance, and Re-
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placement Trust Fund must comply with the re-
quirements of subsection (f). 
‘‘(d) MANAGEMENT.—The Secretary shall manage 
the Settlement Trust Funds, invest amounts in the Settle-
ment Trust Funds pursuant to subsection (e), and make 
amounts available from the Settlement Trust Funds for 
distribution to the Nation and the Jicarilla Apache Nation 
in accordance with the American Indian Trust Fund Man-
agement Reform Act of 1994 (25 U.S.C. 4001 et seq.). 
‘‘(e) INVESTMENT OF THE TRUST FUNDS.—The Sec-
retary shall invest amounts in the Settlement Trust Funds 
in accordance with— 
‘‘(1) the Act of April 1, 1880 (25 U.S.C. 161); 
‘‘(2) the first section of the Act of June 24, 
1938 (25 U.S.C. 162a); and 
‘‘(3) the American Indian Trust Fund Manage-
ment Reform Act of 1994 (25 U.S.C. 4001 et seq.). 
‘‘(f) CONDITIONS FOR EXPENDITURES AND WITH-
DRAWALS.— 
‘‘(1) TRIBAL MANAGEMENT PLAN.— 
‘‘(A) IN GENERAL.—On approval by the 
Secretary of a Tribal management plan in ac-
cordance with the American Indian Trust Fund 
Management Reform Act of 1994 (25 U.S.C. 
4001 et seq.), the Nation and the Jicarilla 
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Apache Nation may withdraw all or a portion of 
the amounts in the Settlement Trust Funds. 
‘‘(B) REQUIREMENTS.—In addition to any 
requirements under the American Indian Trust 
Fund Management Reform Act of 1994 (25 
U.S.C. 4001 et seq.), a Tribal management 
plan shall require that the Nation and Jicarilla 
Apache Nation only use amounts in the Settle-
ment Trust Funds for the purposes described in 
subsection (a)(2), (b)(2), or (c)(3), as applica-
ble. 
‘‘(2) ENFORCEMENT.—The Secretary may take 
judicial or administrative action to enforce the provi-
sions of any Tribal management plan to ensure that 
any amounts withdrawn from the Settlement Trust 
Funds are used in accordance with this subtitle. 
‘‘(3) NO LIABILITY.—The Secretary or the Sec-
retary of the Treasury shall not be liable for the ex-
penditure or investment of any amounts withdrawn 
from the Settlement Trust Funds by the Nation or 
the Jicarilla Apache Nation. 
‘‘(4) EXPENDITURE PLAN.— 
‘‘(A) IN
GENERAL.—The Nation and 
Jicarilla Apache Nation shall submit to the Sec-
retary for approval an expenditure plan for any 
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portion of the amounts in the Settlement Trust 
Funds made available under this section that 
the Nation or the Jicarilla Apache Nation does 
not withdraw under this subsection. 
‘‘(B) DESCRIPTION.—An expenditure plan 
submitted under subparagraph (A) shall de-
scribe the manner in which, and the purposes 
for which, funds of the Nation or the Jicarilla 
Apache Nation remaining in the Settlement 
Trust Funds will be used. 
‘‘(C) APPROVAL.—On receipt of an ex-
penditure plan under subparagraph (A), the 
Secretary shall approve the plan if the Sec-
retary determines that the plan is reasonable 
and consistent with this subtitle. 
‘‘(5) 
ANNUAL
REPORT.—The 
Nation 
and 
Jicarilla Apache Nation shall submit to the Sec-
retary an annual report that describes any expendi-
tures from the Settlement Trust Funds during the 
year covered by the report. 
‘‘(6) LIMITATION.—No portion of the amounts 
in the Settlement Trust Funds shall be distributed 
to any Nation or Jicarilla Apache Nation member on 
a per capita basis.’’. 
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(c) WAIVERS AND RELEASES.—Section 10703 of the 
Northwestern New Mexico Rural Water Projects Act 
(Public Law 111–11; 123 Stat. 1403) is amended— 
(1) in subsection (d)(1)(A), by striking ‘‘2025’’ 
and inserting ‘‘2030’’; and 
(2) in subsection (e)(2), in the matter preceding 
subparagraph (A), by striking ‘‘2025’’ and inserting 
‘‘2030’’. 
Æ 
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