H. R. 146—376 
expected water supply impacts to Friant Division long-term 
contractors caused by the Interim or Restoration Flows author-
ized in part I of this subtitle, and such quantities have not 
already been reduced, avoided, or offset by other programs 
or projects. 
(2) Federal financial assistance shall only apply to the 
portion of a project that the local agency designates as reducing, 
avoiding, or offsetting the expected water supply impacts caused 
by the Interim or Restoration Flows authorized in part I of 
this subtitle, consistent with the methodology developed pursu-
ant to paragraph (3)(C). 
(3) No Federal financial assistance shall be provided by 
the Secretary under this part for construction of a project 
under subsection (a) unless the Secretary— 
(A) determines that appropriate planning, design, and 
environmental compliance activities associated with such 
a project have been completed, and that the Secretary 
has been offered the opportunity to participate in the 
project at a price that is no higher than the local agency’s 
own costs, in order to secure necessary storage, extraction, 
and conveyance rights for water that may be needed to 
meet the Restoration Goal as described in part I of this 
subtitle, where such project has capacity beyond that des-
ignated for the purposes in paragraph (2) or where it 
is feasible to expand such project to allow participation 
by the Secretary; 
(B) determines, based on information available at the 
time, that the local agency has the financial capability 
and willingness to fund its share of the project’s construc-
tion and all operation and maintenance costs on an annual 
basis; 
(C) determines that a method acceptable to the Sec-
retary has been developed for quantifying the benefit, in 
terms of reduction, avoidance, or offset of the water supply 
impacts expected to be caused by the Interim or Restoration 
Flows authorized in part I of this subtitle, that will result 
from the project, and for ensuring appropriate adjustment 
in the recovered water account pursuant to section 
10004(a)(5); and 
(D) has entered into a cost-sharing agreement with 
the local agency which commits the local agency to funding 
its share of the project’s construction costs on an annual 
basis. 
(c) GUIDELINES.—Within 1 year from the date of enactment 
of this part, the Secretary shall develop, in consultation with the 
Friant Division long-term contractors, proposed guidelines for the 
application of the criteria defined in subsection (b), and will make 
the proposed guidelines available for public comment. Such guide-
lines may consider prioritizing the distribution of available funds 
to projects that provide the broadest benefit within the affected 
area and the equitable allocation of funds. Upon adoption of such 
guidelines, the Secretary shall implement such assistance program, 
subject to the availability of funds appropriated for such purpose. 
(d) COST SHARING.—The Federal financial assistance provided 
to local agencies under subsection (a) shall not exceed—
H. R. 146—377 
(1) 50 percent of the costs associated with planning, design, 
and environmental compliance activities associated with such 
a project; and 
(2) 50 percent of the costs associated with construction 
of any such project. 
(e) PROJECT OWNERSHIP.— 
(1) Title to, control over, and operation of, projects funded 
under subsection (a) shall remain in one or more non-Federal 
local agencies. Nothing in this part authorizes the Secretary 
to operate a groundwater bank along or adjacent to the San 
Joaquin River upstream of the confluence with the Merced 
River, and any such groundwater bank shall be operated by 
a non-Federal entity. All projects funded pursuant to this sub-
section shall comply with all applicable Federal and State laws, 
including provisions of California water law. 
(2) All operation, maintenance, and replacement and 
rehabilitation costs of such projects shall be the responsibility 
of the local agency. The Secretary shall not provide funding 
for any operation, maintenance, or replacement and rehabilita-
tion costs of projects funded under subsection (a). 
SEC. 10203. AUTHORIZATION OF APPROPRIATIONS. 
(a) The Secretary is authorized and directed to use monies 
from the fund established under section 10009 to carry out the 
provisions of section 10201(a)(1), in an amount not to exceed 
$35,000,000. 
(b) In addition to the funds made available pursuant to sub-
section (a), the Secretary is also authorized to expend such addi-
tional funds from the fund established under section 10009 to 
carry out the purposes of section 10201(a)(2), if such facilities have 
not already been authorized and funded under the plan provided 
for pursuant to section 10004(a)(4), in an amount not to exceed 
$17,000,000, provided that the Secretary first determines that such 
expenditure will not conflict with or delay his implementation of 
actions required by part I of this subtitle. Notice of the Secretary’s 
determination shall be published not later than his submission 
of the report to Congress required by section 10009(f)(2). 
(c) In addition to funds made available in subsections (a) and 
(b), there are authorized to be appropriated $50,000,000 (October 
2008 price levels) to carry out the purposes of this part which 
shall be non-reimbursable. 
Subtitle B—Northwestern New Mexico 
Rural Water Projects 
SEC. 10301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Northwestern New Mexico 
Rural Water Projects Act’’. 
SEC. 10302. DEFINITIONS. 
In this subtitle: 
(1) AAMODT ADJUDICATION.—The term ‘‘Aamodt adjudica-
tion’’ means the general stream adjudication that is the subject 
of the civil action entitled ‘‘State of New Mexico, ex rel. State 
Engineer and United States of America, Pueblo de Nambe, 
Pueblo de Pojoaque, Pueblo de San Ildefonso, and Pueblo de
H. R. 146—378 
Tesuque v. R. Lee Aamodt, et al.’’, No. 66 CV 6639 MV/LCS 
(D.N.M.). 
(2) ABEYTA ADJUDICATION.—The term ‘‘Abeyta adjudication’’ 
means the general stream adjudication that is the subject of 
the civil actions entitled ‘‘State of New Mexico v. Abeyta and 
State of New Mexico v. Arrellano’’, Civil Nos. 7896–BB (D.N.M) 
and 7939–BB (D.N.M.) (consolidated). 
(3) ACRE-FEET.—The term ‘‘acre-feet’’ means acre-feet per 
year. 
(4) AGREEMENT.—The term ‘‘Agreement’’ means the agree-
ment among the State of New Mexico, the Nation, and the 
United States setting forth a stipulated and binding agreement 
signed by the State of New Mexico and the Nation on April 
19, 2005. 
(5) ALLOTTEE.—The term ‘‘allottee’’ means a person that 
holds a beneficial real property interest in a Navajo allotment 
that— 
(A) is located within the Navajo Reservation or the 
State of New Mexico; 
(B) is held in trust by the United States; and 
(C) was originally granted to an individual member 
of the Nation by public land order or otherwise. 
(6) ANIMAS-LA PLATA PROJECT.—The term ‘‘Animas-La Plata 
Project’’ has the meaning given the term in section 3 of Public 
Law 100–585 (102 Stat. 2973), including Ridges Basin Dam, 
Lake Nighthorse, the Navajo Nation Municipal Pipeline, and 
any other features or modifications made pursuant to the Colo-
rado Ute Settlement Act Amendments of 2000 (Public Law 
106–554; 114 Stat. 2763A–258). 
(7) CITY.—The term ‘‘City’’ means the city of Gallup, New 
Mexico, or a designee of the City, with authority to provide 
water to the Gallup, New Mexico service area. 
(8) COLORADO RIVER COMPACT.—The term ‘‘Colorado River 
Compact’’ means the Colorado River Compact of 1922 as 
approved by Congress in the Act of December 21, 1928 (45 
Stat. 1057) and by the Presidential Proclamation of June 25, 
1929 (46 Stat. 3000). 
(9) COLORADO RIVER SYSTEM.—The term ‘‘Colorado River 
System’’ has the same meaning given the term in Article II(a) 
of the Colorado River Compact. 
(10) COMPACT.—The term ‘‘Compact’’ means the Upper 
Colorado River Basin Compact as consented to by the Act 
of April 6, 1949 (63 Stat. 31, chapter 48). 
(11) CONTRACT.—The term ‘‘Contract’’ means the contract 
between the United States and the Nation setting forth certain 
commitments, rights, and obligations of the United States and 
the Nation, as described in paragraph 6.0 of the Agreement. 
(12) DEPLETION.—The term ‘‘depletion’’ means the depletion 
of the flow of the San Juan River stream system in the State 
of New Mexico by a particular use of water (including any 
depletion incident to the use) and represents the diversion 
from the stream system by the use, less return flows to the 
stream system from the use. 
(13) DRAFT IMPACT STATEMENT.—The term ‘‘Draft Impact 
Statement’’ means the draft environmental impact statement 
prepared by the Bureau of Reclamation for the Project dated 
March 2007.
H. R. 146—379 
(14) FUND.—The term ‘‘Fund’’ means the Reclamation 
Waters Settlements Fund established by section 10501(a). 
(15) HYDROLOGIC DETERMINATION.—The term ‘‘hydrologic 
determination’’ means the hydrologic determination entitled 
‘‘Water Availability from Navajo Reservoir and the Upper Colo-
rado River Basin for Use in New Mexico,’’ prepared by the 
Bureau of Reclamation pursuant to section 11 of the Act of 
June 13, 1962 (Public Law 87–483; 76 Stat. 99), and dated 
May 23, 2007. 
(16) LOWER BASIN.—The term ‘‘Lower Basin’’ has the same 
meaning given the term in Article II(g) of the Colorado River 
Compact. 
(17) NATION.—The term ‘‘Nation’’ means the Navajo Nation, 
a body politic and federally-recognized Indian nation as pro-
vided for in section 101(2) of the Federally Recognized Indian 
Tribe List of 1994 (25 U.S.C. 497a(2)), also known variously 
as the ‘‘Navajo Tribe,’’ the ‘‘Navajo Tribe of Arizona, New 
Mexico & Utah,’’ and the ‘‘Navajo Tribe of Indians’’ and other 
similar names, and includes all bands of Navajo Indians and 
chapters of the Navajo Nation. 
(18) NAVAJO-GALLUP WATER SUPPLY PROJECT; PROJECT.— 
The term ‘‘Navajo-Gallup Water Supply Project’’ or ‘‘Project’’ 
means the Navajo-Gallup Water Supply Project authorized 
under section 10602(a), as described as the preferred alternative 
in the Draft Impact Statement. 
(19) NAVAJO
INDIAN
IRRIGATION
PROJECT.—The term 
‘‘Navajo Indian Irrigation Project’’ means the Navajo Indian 
irrigation project authorized by section 2 of Public Law 87– 
483 (76 Stat. 96). 
(20) NAVAJO
RESERVOIR.—The term ‘‘Navajo Reservoir’’ 
means the reservoir created by the impoundment of the San 
Juan River at Navajo Dam, as authorized by the Act of April 
11, 1956 (commonly known as the ‘‘Colorado River Storage 
Project Act’’) (43 U.S.C. 620 et seq.). 
(21) NAVAJO NATION MUNICIPAL PIPELINE; PIPELINE.—The 
term ‘‘Navajo Nation Municipal Pipeline’’ or ‘‘Pipeline’’ means 
the pipeline used to convey the water of the Animas-La Plata 
Project of the Navajo Nation from the City of Farmington, 
New Mexico, to communities of the Navajo Nation located in 
close proximity to the San Juan River Valley in the State 
of New Mexico (including the City of Shiprock), as authorized 
by section 15(b) of the Colorado Ute Indian Water Rights Settle-
ment Act of 1988 (Public Law 100–585; 102 Stat. 2973; 114 
Stat. 2763A–263). 
(22) NON-NAVAJO IRRIGATION DISTRICTS.—The term ‘‘Non- 
Navajo Irrigation Districts’’ means— 
(A) the Hammond Conservancy District; 
(B) the Bloomfield Irrigation District; and 
(C) any other community ditch organization in the 
San Juan River basin in the State of New Mexico. 
(23) PARTIAL
FINAL
DECREE.—The term ‘‘Partial Final 
Decree’’ means a final and binding judgment and decree entered 
by a court in the stream adjudication, setting forth the rights 
of the Nation to use and administer waters of the San Juan 
River Basin in New Mexico, as set forth in Appendix 1 of 
the Agreement.