H. R. 146—398 
(k) EFFICIENT USE.—The diversions and uses authorized for 
the Project under this Section represent unique and efficient uses 
of Colorado River apportionments in a manner that Congress has 
determined would be consistent with the obligations of the United 
States to the Navajo Nation. 
SEC. 10604. PROJECT CONTRACTS. 
(a) NAVAJO NATION CONTRACT.— 
(1) HYDROLOGIC
DETERMINATION.—Congress recognizes 
that the Hydrologic Determination necessary 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, ratifies, and confirms the Contract. 
(ii) AMENDMENTS.—To the extent any amendment 
is executed to make the Contract consistent with this 
subtitle, that amendment is authorized, ratified, and 
confirmed. 
(B) EXECUTION OF CONTRACT.—The Secretary, 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 fol-
lowing costs shall be nonreimbursable and not subject to repay-
ment 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 Contract. 
(4) OPERATION, MAINTENANCE, AND REPLACEMENT OBLIGA-
TION.—Subject to subsection (f), the Contract shall include 
provisions under which the Nation 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 RESCIS-
SION.—The Contract may be limited by a term of years, can-
celed, terminated, or rescinded only by an Act of Congress. 
(b) CITY OF GALLUP CONTRACT.— 
(1) CONTRACT AUTHORIZATION.—Consistent with this sub-
title, 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 relating to the Project, 
with interest as provided under section 10305; and 
(B) consistent with section 10603(g), to pay the oper-
ation, maintenance, and replacement costs of the Project 
that are allocable to the City. 
(2) CONTRACT PREPAYMENT.—
H. R. 146—399 
(A) IN GENERAL.—The contract authorized under para-
graph (1) may allow the City to satisfy the repayment 
obligation of the City for construction costs of the Project 
on the payment of the share of the City prior to the initi-
ation 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 repayment obliga-
tion established by the Secretary and the City pursuant 
to subparagraph (A) shall be subject to a final cost alloca-
tion 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 Sec-
retary shall determine the share of the construction costs 
of the Project allocable to the City and establish the 
percentage of the allocated construction costs that the City 
shall be required to repay pursuant to the contract entered 
into under paragraph (1), based on the ability of the City 
to pay. 
(B) MINIMUM PERCENTAGE.—Notwithstanding subpara-
graph (A), the repayment obligation of the City shall be 
at least 25 percent of the construction costs of the Project 
that are allocable to the City, but shall in no event exceed 
35 percent. 
(4) EXCESS CONSTRUCTION COSTS.—Any construction costs 
of the Project allocable to the City in excess of the repayment 
obligation of the City, as determined under paragraph (3), 
shall be nonreimbursable. 
(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 repayment 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 satisfactory to the Secretary 
of fulfillment of the remaining repayment obligation of the 
City. 
(7) WATER DELIVERY SUBCONTRACT.—The Secretary shall 
not enter into a contract under paragraph (1) with the City 
until the City has secured a water supply for the City’s portion 
of the Project described in section 10603(b)(2)(B), by entering 
into, as approved by the Secretary, a water delivery subcontract 
for a period of not less than 40 years beginning on the date 
on which the construction of any facility of the Project serving 
the City is completed, with— 
(A) the Nation, as authorized by the Contract; 
(B) the Jicarilla Apache Nation, as authorized by the 
settlement contract between the United States and the 
Jicarilla Apache Tribe, authorized by the Jicarilla Apache 
Tribe Water 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 Commis-
sion and the New Mexico State Engineer. 
(c) JICARILLA APACHE NATION CONTRACT.—
H. R. 146—400 
(1) CONTRACT AUTHORIZATION.—Consistent with this sub-
title, 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 interest as provided under 
section 10305; and 
(B) consistent with section 10603(g), to pay the oper-
ation, 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 para-
graph (1) may allow the Jicarilla Apache Nation to satisfy 
the repayment obligation of the Jicarilla Apache Nation 
for construction costs of the Project on the payment of 
the share of the Jicarilla Apache Nation prior to the initi-
ation of construction. 
(B) AMOUNT.—The amount of the share of Jicarilla 
Apache Nation described in subparagraph (A) shall be 
determined by agreement between the Secretary and the 
Jicarilla Apache Nation. 
(C) REPAYMENT OBLIGATION.—Any repayment obliga-
tion established by the Secretary and the Jicarilla Apache 
Nation 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 Sec-
retary 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. 
(B) MINIMUM PERCENTAGE.—Notwithstanding subpara-
graph (A), the repayment obligation 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 construction 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 allocable 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 Participants under this
H. R. 146—401 
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 deter-
mine the repayment obligation of the Project Participants based 
on the final cost allocation identifying reimbursable and non-
reimbursable capital costs of the Project consistent with this 
subtitle. 
(e) 
OPERATION, 
MAINTENANCE, 
AND
REPLACEMENT
COST 
ALLOCATIONS.—For purposes of determining the operation, mainte-
nance, and replacement obligations of the Project Participants under 
this section, the Secretary shall review and, as appropriate, update 
the Draft Impact Statement that allocates operation, maintenance, 
and replacement costs for the Project. 
(f) TEMPORARY WAIVERS OF PAYMENTS.— 
(1) IN
GENERAL.—On the date on which the Secretary 
declares a section of the Project to be substantially complete 
and delivery of water generated by and through that section 
of the Project can be made to the Nation, the Secretary may 
waive, for a period of not more than 10 years, the operation, 
maintenance, and replacement costs allocable to the Nation 
for that section of the Project that the Secretary determines 
are in excess of the ability of the Nation to pay. 
(2) SUBSEQUENT
PAYMENT
BY
NATION.—After a waiver 
under paragraph (1), the Nation shall pay all allocated oper-
ation, maintenance, and replacement costs of that section of 
the Project. 
(3) PAYMENT BY UNITED STATES.—Any operation, mainte-
nance, or replacement costs waived by the Secretary under 
paragraph (1) shall be paid by the United States and shall 
be nonreimbursable. 
(4) EFFECT ON CONTRACTS.—Failure of the Secretary to 
waive costs under paragraph (1) because of a lack of availability 
of Federal funding to pay the costs under paragraph (3) shall 
not alter the obligations of the Nation or the United States 
under a repayment contract. 
(5) TERMINATION OF AUTHORITY.—The authority of the Sec-
retary to waive costs under paragraph (1) with respect to a 
Project facility transferred to the Nation under section 10602(f) 
shall terminate on the date on which the Project facility is 
transferred. 
(g) PROJECT CONSTRUCTION COMMITTEE.—The Secretary shall 
facilitate the formation of a project construction committee with 
the Project Participants and the State of New Mexico— 
(1) to review cost factors and budgets for construction and 
operation and maintenance activities; 
(2) to improve construction management through enhanced 
communication; and 
(3) to seek additional ways to reduce overall Project costs.
H. R. 146—402 
SEC. 10605. NAVAJO NATION MUNICIPAL PIPELINE. 
(a) USE OF NAVAJO NATION PIPELINE.—In addition to use of 
the Navajo Nation Municipal Pipeline to convey the Animas-La 
Plata Project water of the Nation, the Nation may use the Navajo 
Nation Municipal Pipeline to convey non-Animas La Plata Project 
water for municipal and industrial purposes. 
(b) CONVEYANCE OF TITLE TO PIPELINE.— 
(1) IN
GENERAL.—On completion of the Navajo Nation 
Municipal Pipeline, the Secretary may enter into separate 
agreements with the City of Farmington, New Mexico and 
the Nation to convey title to each portion of the Navajo Nation 
Municipal Pipeline facility or section of the Pipeline to the 
City of Farmington and the Nation after execution of a Project 
operations agreement approved by the Secretary, the Nation, 
and the City of Farmington that sets forth any terms and 
conditions that the Secretary determines are necessary. 
(2) CONVEYANCE TO THE CITY OF FARMINGTON OR NAVAJO 
NATION.—In conveying title to the Navajo Nation Municipal 
Pipeline under this subsection, the Secretary shall convey— 
(A) to the City of Farmington, the facilities and any 
land or interest in land acquired by the United States 
for the construction, operation, and maintenance of the 
Pipeline that are located within the corporate boundaries 
of the City; and 
(B) to the Nation, the facilities and any land or 
interests in land acquired by the United States for the 
construction, operation, and maintenance of the Pipeline 
that are located outside the corporate boundaries of the 
City of Farmington. 
(3) EFFECT OF CONVEYANCE.—The conveyance of title to 
the Pipeline shall not affect the application of the Endangered 
Species Act of 1973 (16 U.S.C. 1531 et seq.) relating to the 
use of water associated with the Animas-La Plata Project. 
(4) 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. 
(B) TORT CLAIMS.—Nothing in this subsection increases 
the liability of the United States beyond the liability pro-
vided under chapter 171 of title 28, United States Code 
(commonly known as the ‘‘Federal Tort Claims Act’’). 
(5) NOTICE OF PROPOSED CONVEYANCE.—Not later than 45 
days before the date of a proposed conveyance of title to the 
Pipeline, the Secretary shall submit to the Committee on Nat-
ural Resources of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the Senate, notice 
of the conveyance of the Pipeline. 
SEC. 10606. AUTHORIZATION OF CONJUNCTIVE USE WELLS. 
(a) CONJUNCTIVE GROUNDWATER DEVELOPMENT PLAN.—Not 
later than 1 year after the date of enactment of this Act, the
H. R. 146—404 
(3) EFFECT OF CONVEYANCE.—The conveyance of title to 
the Nation of the conjunctive use wells under paragraph (1) 
shall not affect the application of the Endangered Species Act 
of 1973 (16 U.S.C. 1531 et seq.). 
(g) USE OF PROJECT FACILITIES.—The capacities of the treat-
ment facilities, main pipelines, and lateral pipelines of the Project 
authorized by section 10602(b) may be used to treat and convey 
groundwater to Nation communities if the Nation provides for pay-
ment of the operation, maintenance, and replacement costs associ-
ated with the use of the facilities or pipelines. 
(h) LIMITATIONS.—The diversion and use of groundwater by 
wells constructed or rehabilitated under this section shall be made 
in a manner consistent with applicable Federal and State law. 
SEC. 10607. SAN JUAN RIVER NAVAJO IRRIGATION PROJECTS. 
(a) REHABILITATION.—Subject to subsection (b), the Secretary 
shall rehabilitate— 
(1) the Fruitland-Cambridge Irrigation Project to serve not 
more than 3,335 acres of land, which shall be considered to 
be the total serviceable area of the project; and 
(2) the Hogback-Cudei Irrigation Project to serve not more 
than 8,830 acres of land, which shall be considered to be the 
total serviceable area of the project. 
(b) CONDITION.—The Secretary shall not commence any 
construction activity relating to the rehabilitation of the Fruitland- 
Cambridge Irrigation Project or the Hogback-Cudei Irrigation 
Project under subsection (a) until the Secretary executes the Agree-
ment. 
(c) OPERATION, MAINTENANCE, AND
REPLACEMENT
OBLIGA-
TION.—The Nation shall continue to be responsible for the operation, 
maintenance, and replacement of each facility rehabilitated under 
this section. 
SEC. 10608. OTHER IRRIGATION PROJECTS. 
(a) IN GENERAL.—Not later than 2 years after the date of 
enactment of this Act, the Secretary, in consultation with the State 
of New Mexico (acting through the Interstate Stream Commission) 
and the Non-Navajo Irrigation Districts that elect to participate, 
shall— 
(1) conduct a study of Non-Navajo Irrigation District diver-
sion and ditch facilities; and 
(2) based on the study, identify and prioritize a list of 
projects, with associated cost estimates, that are recommended 
to be implemented to repair, rehabilitate, or reconstruct irriga-
tion diversion and ditch facilities to improve water use effi-
ciency. 
(b) GRANTS.—The Secretary may provide grants to, and enter 
into cooperative agreements with, the Non-Navajo Irrigation Dis-
tricts to plan, design, or otherwise implement the projects identified 
under subsection (a)(2). 
(c) COST-SHARING.— 
(1) FEDERAL SHARE.—The Federal share of the total cost 
of carrying out a project under subsection (b) shall be not 
more than 50 percent, and shall be nonreimbursable. 
(2) FORM.—The non-Federal share required under para-
graph (1) may be in the form of in-kind contributions, including
H. R. 146—405 
the contribution of any valuable asset or service that the Sec-
retary determines would substantially contribute to a project 
carried out under subsection (b). 
(3) STATE CONTRIBUTION.—The Secretary may accept from 
the State of New Mexico a partial or total contribution toward 
the non-Federal share for a project carried out under subsection 
(b). 
SEC. 10609. AUTHORIZATION OF APPROPRIATIONS. 
(a) AUTHORIZATION
OF APPROPRIATIONS
FOR NAVAJO-GALLUP 
WATER SUPPLY PROJECT.— 
(1) IN GENERAL.—There is authorized to be appropriated 
to the Secretary to plan, design, and construct the Project 
$870,000,000 for the period of fiscal years 2009 through 2024, 
to remain available until expended. 
(2) ADJUSTMENTS.—The amount under paragraph (1) shall 
be adjusted by such amounts as may be required by reason 
of changes since 2007 in construction costs, as indicated by 
engineering cost indices applicable to the types of construction 
involved. 
(3) USE.—In addition to the uses authorized under para-
graph (1), amounts made available under that paragraph may 
be used for the conduct of related activities to comply with 
Federal environmental laws. 
(4) OPERATION AND MAINTENANCE.— 
(A) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to operate and maintain 
the Project consistent with this subtitle. 
(B) EXPIRATION.—The authorization under subpara-
graph (A) shall expire 10 years after the year the Secretary 
declares the Project to be substantially complete. 
(b) APPROPRIATIONS FOR CONJUNCTIVE USE WELLS.— 
(1) SAN JUAN WELLS.—There is authorized to be appro-
priated to the Secretary for the construction or rehabilitation 
and operation and maintenance of conjunctive use wells under 
section 10606(b) $30,000,000, as adjusted under paragraph (3), 
for the period of fiscal years 2009 through 2019. 
(2) WELLS
IN
THE
LITTLE
COLORADO
AND
RIO
GRANDE 
BASINS.—There are authorized to be appropriated to the Sec-
retary for the construction or rehabilitation and operation and 
maintenance of conjunctive use wells under section 10606(c) 
such sums as are necessary for the period of fiscal years 2009 
through 2024. 
(3) ADJUSTMENTS.—The amount under paragraph (1) shall 
be adjusted by such amounts as may be required by reason 
of changes since 2008 in construction costs, as indicated by 
engineering cost indices applicable to the types of construction 
or rehabilitation involved. 
(4) NONREIMBURSABLE
EXPENDITURES.—Amounts made 
available under paragraphs (1) and (2) shall be nonreimburs-
able to the United States. 
(5) USE.—In addition to the uses authorized under para-
graphs (1) and (2), amounts made available under that para-
graph may be used for the conduct of related activities to 
comply with Federal environmental laws. 
(6) LIMITATION.—Appropriations authorized under para-
graph (1) shall not be used for operation or maintenance of
H. R. 146—406 
any conjunctive use wells at a time in excess of 3 years after 
the well is declared substantially complete. 
(c) SAN JUAN RIVER IRRIGATION PROJECTS.— 
(1) IN GENERAL.—There are authorized to be appropriated 
to the Secretary— 
(A) to carry out section 10607(a)(1), not more than 
$7,700,000, as adjusted under paragraph (2), for the period 
of fiscal years 2009 through 2016, to remain available 
until expended; and 
(B) to carry out section 10607(a)(2), not more than 
$15,400,000, as adjusted under paragraph (2), for the period 
of fiscal years 2009 through 2019, to remain available 
until expended. 
(2) ADJUSTMENT.—The amounts made available under 
paragraph (1) shall be adjusted by such amounts as may be 
required by reason of changes since January 1, 2004, in 
construction costs, as indicated by engineering cost indices 
applicable to the types of construction involved in the rehabilita-
tion. 
(3) NONREIMBURSABLE
EXPENDITURES.—Amounts made 
available under this subsection shall be nonreimbursable to 
the United States. 
(d) OTHER IRRIGATION PROJECTS.—There are authorized to be 
appropriated to the Secretary to carry out section 10608 $11,000,000 
for the period of fiscal years 2009 through 2019. 
(e) CULTURAL RESOURCES.— 
(1) IN GENERAL.—The Secretary may use not more than 
2 percent of amounts made available under subsections (a), 
(b), and (c) for the survey, recovery, protection, preservation, 
and display of archaeological resources in the area of a Project 
facility or conjunctive use well. 
(2) NONREIMBURSABLE EXPENDITURES.—Any amounts made 
available under paragraph (1) shall be nonreimbursable. 
(f) FISH AND WILDLIFE FACILITIES.— 
(1) IN GENERAL.—In association with the development of 
the Project, the Secretary may use not more than 4 percent 
of amounts made available under subsections (a), (b), and (c) 
to purchase land and construct and maintain facilities to miti-
gate the loss of, and improve conditions for the propagation 
of, fish and wildlife if any such purchase, construction, or 
maintenance will not affect the operation of any water project 
or use of water. 
(2) 
NONREIMBURSABLE
EXPENDITURES.—Any 
amounts 
expended under paragraph (1) shall be nonreimbursable. 
PART IV—NAVAJO NATION WATER RIGHTS 
SEC. 10701. AGREEMENT. 
(a) AGREEMENT APPROVAL.— 
(1) APPROVAL
BY
CONGRESS.—Except to the extent that 
any provision of the Agreement conflicts with this subtitle, 
Congress approves, ratifies, and confirms the Agreement 
(including any amendments to the Agreement that are executed 
to make the Agreement consistent with this subtitle). 
(2) EXECUTION BY SECRETARY.—The Secretary shall enter 
into the Agreement to the extent that the Agreement does 
not conflict with this subtitle, including—
H. R. 146—407 
(A) any exhibits to the Agreement requiring the signa-
ture of the Secretary; and 
(B) any amendments to the Agreement necessary to 
make the Agreement consistent with this subtitle. 
(3) AUTHORITY OF SECRETARY.—The Secretary may carry 
out any action that the Secretary determines is necessary or 
appropriate to implement the Agreement, the Contract, and 
this section. 
(4) ADMINISTRATION OF NAVAJO RESERVOIR RELEASES.—The 
State of New Mexico may administer water that has been 
released from storage in Navajo Reservoir in accordance with 
subparagraph 9.1 of the Agreement. 
(b) WATER AVAILABLE UNDER CONTRACT.— 
(1) QUANTITIES OF WATER AVAILABLE.— 
(A) IN
GENERAL.—Water shall be made available 
annually under the Contract for projects in the State of 
New Mexico supplied from the Navajo Reservoir and the 
San Juan River (including tributaries of the River) under 
New Mexico State Engineer File Numbers 2849, 2883, and 
3215 in the quantities described in subparagraph (B). 
(B) WATER
QUANTITIES.—The quantities of water 
referred to in subparagraph (A) are as follows: 
Diver-
sion 
(acre- 
feet/ 
year) 
Deple-
tion 
(acre- 
feet/ 
year) 
Navajo Indian Irrigation Project 
508,000 
270,000 
Navajo-Gallup Water Supply Project 
22,650 
20,780 
Animas-La Plata Project 
4,680 
2,340 
Total 
535,330 
293,120 
(C) MAXIMUM QUANTITY.—A diversion of water to the 
Nation under the Contract for a project described in 
subparagraph (B) shall not exceed the quantity of water 
necessary to supply the amount of depletion for the project. 
(D) TERMS, CONDITIONS, AND LIMITATIONS.—The diver-
sion and use of water under the Contract shall be subject 
to and consistent with the terms, conditions, and limita-
tions of the Agreement, this subtitle, and any other 
applicable law. 
(2) AMENDMENTS TO CONTRACT.—The Secretary, with the 
consent of the Nation, may amend the Contract if the Secretary 
determines that the amendment is— 
(A) consistent with the Agreement; and 
(B) in the interest of conserving water or facilitating 
beneficial use by the Nation or a subcontractor of the 
Nation. 
(3) RIGHTS OF THE NATION.—The Nation may, under the 
Contract—
H. R. 146—408 
(A) use tail water, wastewater, and return flows attrib-
utable to a use of the water by the Nation or a subcon-
tractor of the Nation if— 
(i) the depletion of water does not exceed the quan-
tities described in paragraph (1); and 
(ii) the use of tail water, wastewater, or return 
flows is consistent with the terms, conditions, and 
limitations of the Agreement, and any other applicable 
law; and 
(B) change a point of diversion, change a purpose or 
place of use, and transfer a right for depletion under this 
subtitle (except for a point of diversion, purpose or place 
of use, or right for depletion for use in the State of Arizona 
under section 10603(b)(2)(D)), to another use, purpose, 
place, or depletion in the State of New Mexico to meet 
a water resource or economic need of the Nation if— 
(i) the change or transfer is subject to and con-
sistent with the terms of the Agreement, the Partial 
Final Decree described in paragraph 3.0 of the Agree-
ment, the Contract, and any other applicable law; and 
(ii) a change or transfer of water use by the Nation 
does not alter any obligation of the United States, 
the Nation, or another party to pay or repay project 
construction, operation, maintenance, or replacement 
costs under this subtitle and the Contract. 
(c) SUBCONTRACTS.— 
(1) IN GENERAL.— 
(A) SUBCONTRACTS BETWEEN NATION AND THIRD PAR-
TIES.—The Nation may enter into subcontracts for the 
delivery of Project water under the Contract to third parties 
for any beneficial use in the State of New Mexico (on 
or off land held by the United States in trust for the 
Nation or a member of the Nation or land held in fee 
by the Nation). 
(B) APPROVAL REQUIRED.—A subcontract entered into 
under subparagraph (A) shall not be effective until 
approved by the Secretary in accordance with this sub-
section and the Contract. 
(C) SUBMITTAL.—The Nation shall submit to the Sec-
retary for approval or disapproval any subcontract entered 
into under this subsection. 
(D) DEADLINE.—The Secretary shall approve or dis-
approve a subcontract submitted to the Secretary under 
subparagraph (C) not later than the later of— 
(i) the date that is 180 days after the date on 
which the subcontract is submitted to the Secretary; 
and 
(ii) the date that is 60 days after the date on 
which a subcontractor complies with— 
(I) section 102(2)(C) of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4332(2)(C)); 
and 
(II) any other requirement of Federal law. 
(E) ENFORCEMENT.—A party to a subcontract may 
enforce the deadline described in subparagraph (D) under 
section 1361 of title 28, United States Code.
H. R. 146—410 
or other detriment resulting from, a lease, contract, or other 
agreement entered into pursuant to this subsection. 
(4) NONINTERCOURSE ACT COMPLIANCE.—This subsection— 
(A) provides congressional authorization for the lease, 
contracting, and transfer of any water right described in 
paragraph (1)(A); and 
(B) is deemed to fulfill any requirement that may be 
imposed by the provisions of section 2116 of the Revised 
Statutes (25 U.S.C. 177). 
(5) FORFEITURE.—The nonuse of a water right of the Nation 
by a lessee or contractor to the Nation under this subsection 
shall not result in forfeiture, abandonment, relinquishment, 
or other loss of any part of a right decreed to the Nation 
under the Contract or this section. 
(e) NULLIFICATION.— 
(1) DEADLINES.— 
(A) IN GENERAL.—In carrying out this section, the fol-
lowing deadlines apply with respect to implementation of 
the Agreement: 
(i) AGREEMENT.—Not later than December 31, 
2010, the Secretary shall execute the Agreement. 
(ii) CONTRACT.—Not later than December 31, 2010, 
the Secretary and the Nation shall execute the Con-
tract. 
(iii) PARTIAL
FINAL
DECREE.—Not later than 
December 31, 2013, the court in the stream adjudica-
tion shall have entered the Partial Final Decree 
described in paragraph 3.0 of the Agreement. 
(iv) FRUITLAND-CAMBRIDGE IRRIGATION PROJECT.— 
Not later than December 31, 2016, the rehabilitation 
construction of the Fruitland-Cambridge Irrigation 
Project authorized under section 10607(a)(1) shall be 
completed. 
(v) SUPPLEMENTAL
PARTIAL
FINAL
DECREE.—Not 
later than December 31, 2016, the court in the stream 
adjudication shall enter the Supplemental Partial Final 
Decree described in subparagraph 4.0 of the Agree-
ment. 
(vi) HOGBACK-CUDEI
IRRIGATION
PROJECT.—Not 
later than December 31, 2019, the rehabilitation 
construction of the Hogback-Cudei Irrigation Project 
authorized under section 10607(a)(2) shall be com-
pleted. 
(vii) TRUST FUND.—Not later than December 31, 
2019, the United States shall make all deposits into 
the Trust Fund under section 10702. 
(viii) 
CONJUNCTIVE
WELLS.—Not 
later 
than 
December 31, 2019, the funds authorized to be appro-
priated under section 10609(b)(1) for the conjunctive 
use wells authorized under section 10606(b) should 
be appropriated. 
(ix) NAVAJO-GALLUP WATER SUPPLY PROJECT.—Not 
later than December 31, 2024, the construction of all 
Project facilities shall be completed. 
(B) EXTENSION.—A deadline described in subparagraph 
(A) may be extended if the Nation, the United States (acting 
through the Secretary), and the State of New Mexico (acting
H. R. 146—411 
through the New Mexico Interstate Stream Commission) 
agree that an extension is reasonably necessary. 
(2) 
REVOCABILITY
OF
AGREEMENT, 
CONTRACT
AND 
AUTHORIZATIONS.— 
(A) PETITION.—If the Nation determines that a dead-
line described in paragraph (1)(A) is not substantially met, 
the Nation may submit to the court in the stream adjudica-
tion a petition to enter an order terminating the Agreement 
and Contract. 
(B) TERMINATION.—On issuance of an order to termi-
nate the Agreement and Contract under subparagraph 
(A)— 
(i) the Trust Fund shall be terminated; 
(ii) the balance of the Trust Fund shall be depos-
ited in the general fund of the Treasury; 
(iii) the authorizations for construction and 
rehabilitation of water projects under this subtitle shall 
be revoked and any Federal activity related to that 
construction and rehabilitation shall be suspended; and 
(iv) this part and parts I and III shall be null 
and void. 
(3) CONDITIONS NOT CAUSING NULLIFICATION OF SETTLE-
MENT.— 
(A) IN GENERAL.—If a condition described in subpara-
graph (B) occurs, the Agreement and Contract shall not 
be nullified or terminated. 
(B) 
CONDITIONS.—The 
conditions 
referred 
to 
in 
subparagraph (A) are as follows: 
(i) A lack of right to divert at the capacities of 
conjunctive use wells constructed or rehabilitated 
under section 10606. 
(ii) A failure— 
(I) to determine or resolve an accounting of 
the use of water under this subtitle in the State 
of Arizona; 
(II) to obtain a necessary water right for the 
consumptive use of water in Arizona; 
(III) to contract for the delivery of water for 
use in Arizona; or 
(IV) to construct and operate a lateral facility 
to deliver water to a community of the Nation 
in Arizona, under the Project. 
(f) EFFECT ON RIGHTS OF INDIAN TRIBES.— 
(1) IN
GENERAL.—Except as provided in paragraph (2), 
nothing in the Agreement, the Contract, or this section quan-
tifies or adversely affects the land and water rights, or claims 
or entitlements to water, of any Indian tribe or community 
other than the rights, claims, or entitlements of the Nation 
in, to, and from the San Juan River Basin in the State of 
New Mexico. 
(2) EXCEPTION.—The right of the Nation to use water under 
water rights the Nation has in other river basins in the State 
of New Mexico shall be forborne to the extent that the Nation 
supplies the uses for which the water rights exist by diversions 
of water from the San Juan River Basin under the Project 
consistent with subparagraph 9.13 of the Agreement.
H. R. 146—412 
SEC. 10702. TRUST FUND. 
(a) ESTABLISHMENT.—There is established in the Treasury a 
fund to be known as the ‘‘Navajo Nation Water Resources Develop-
ment Trust Fund’’, consisting of— 
(1) such amounts as are appropriated to the Trust Fund 
under subsection (f); and 
(2) any interest earned on investment of amounts in the 
Trust Fund under subsection (d). 
(b) USE OF FUNDS.—The Nation may use amounts in the Trust 
Fund— 
(1) to investigate, construct, operate, maintain, or replace 
water project facilities, including facilities conveyed to the 
Nation under this subtitle and facilities owned by the United 
States for which the Nation is responsible for operation, mainte-
nance, and replacement costs; and 
(2) to investigate, implement, or improve a water conserva-
tion measure (including a metering or monitoring activity) nec-
essary for the Nation to make use of a water right of the 
Nation under the Agreement. 
(c) MANAGEMENT.—The Secretary shall manage the Trust Fund, 
invest amounts in the Trust Fund pursuant to subsection (d), and 
make amounts available from the Trust Fund for distribution to 
the Nation in accordance with the American Indian Trust Fund 
Management Reform Act of 1994 (25 U.S.C. 4001 et seq.). 
(d) INVESTMENT OF THE TRUST FUND.—Beginning on October 
1, 2019, the Secretary shall invest amounts in the Trust Fund 
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 Management Reform 
Act of 1994 (25 U.S.C. 4001 et seq.). 
(e) CONDITIONS FOR EXPENDITURES AND WITHDRAWALS.— 
(1) TRIBAL MANAGEMENT PLAN.— 
(A) IN GENERAL.—Subject to paragraph (7), on approval 
by the Secretary of a tribal management plan in accordance 
with the American Indian Trust Fund Management Reform 
Act of 1994 (25 U.S.C. 4001 et seq.), the Nation may 
withdraw all or a portion of the amounts in the Trust 
Fund. 
(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.), the tribal 
management plan shall require that the Nation only use 
amounts in the Trust Fund for the purposes described 
in subsection (b), including the identification of water con-
servation measures to be implemented in association with 
the agricultural water use of the Nation. 
(2) ENFORCEMENT.—The Secretary may take judicial or 
administrative action to enforce the provisions of any tribal 
management plan to ensure that any amounts withdrawn from 
the Trust Fund are used in accordance with this subtitle. 
(3) NO LIABILITY.—Neither the Secretary nor the Secretary 
of the Treasury shall be liable for the expenditure or investment 
of any amounts withdrawn from the Trust Fund by the Nation. 
(4) EXPENDITURE PLAN.—
H. R. 146—413 
(A) IN GENERAL.—The Nation shall submit to the Sec-
retary for approval an expenditure plan for any portion 
of the amounts in the Trust Fund made available under 
this section that the Nation does not withdraw under this 
subsection. 
(B) DESCRIPTION.—The expenditure plan shall describe 
the manner in which, and the purposes for which, funds 
of the Nation remaining in the Trust Fund will be used. 
(C) APPROVAL.—On receipt of an expenditure plan 
under subparagraph (A), the Secretary shall approve the 
plan if the Secretary determines that the plan is reasonable 
and consistent with this subtitle. 
(5) ANNUAL REPORT.—The Nation shall submit to the Sec-
retary an annual report that describes any expenditures from 
the Trust Fund during the year covered by the report. 
(6) LIMITATION.—No portion of the amounts in the Trust 
Fund shall be distributed to any Nation member on a per 
capita basis. 
(7) CONDITIONS.—Any amount authorized to be appro-
priated to the Trust Fund under subsection (f) shall not be 
available for expenditure or withdrawal— 
(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. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for deposit in the Trust Fund— 
(1) $6,000,000 for each of fiscal years 2010 through 2014; 
and 
(2) $4,000,000 for each of fiscal years 2015 through 2019. 
SEC. 10703. WAIVERS AND RELEASES. 
(a) CLAIMS BY THE NATION AND THE UNITED STATES.—In return 
for recognition of the Nation’s water rights and other benefits, 
including but not limited to the commitments by other parties, 
as set forth in the Agreement and this subtitle, the Nation, on 
behalf of itself and members of the Nation (other than members 
in the capacity of the members as allottees), and the United States 
acting in its capacity as trustee for the Nation, shall execute a 
waiver and release of— 
(1) all claims for water rights in, or for waters of, the 
San Juan River Basin in the State of New Mexico that the 
Nation, or the United States as trustee for the Nation, asserted, 
or could have asserted, in any proceeding, including but not 
limited to the stream adjudication, up to and including the 
effective date described in subsection (e), except to the extent 
that such rights are recognized in the Agreement or this sub-
title; 
(2) all claims for damages, losses, or injuries to water 
rights or claims of interference with, diversion, or taking of 
water (including but not limited to claims for injury to lands 
resulting from such damages, losses, injuries, interference with, 
diversion, or taking) in the San Juan River Basin in the State 
of New Mexico that accrued at any time up to and including 
the effective date described in subsection (e);