same and of the water areas created by these 
projects by such means as are consistent with the 
primary purposes of said projects; and (2) facilities 
to mitigate losses of, and improve conditions for, the 
propagation of fish and wildlife’, and the authoriza-
tion for the initial stage of the San Juan-Chama 
Project (Act of June 13, 1962, Public Law 87–483 
(76 Stat. 96)), directing the Secretary ‘to construct, 
operate, and maintain the initial stage of the San 
Juan-Chama Project, Colorado-New Mexico, for the 
principal purposes of furnishing water supplies . . . 
in the Rio Grande Basin and . . . in the existing 
Middle Rio Grande Conservancy District and for 
municipal, domestic, and industrial uses, and pro-
viding recreation and fish and wildlife benefits.’. 
‘‘SEC. 223. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) ELIGIBLE ENTITIES.—The term ‘eligible 
entities’ means organizations, municipalities, Indian 
Tribes or Pueblos, individuals, or other entities who 
use agricultural or municipal and industrial water 
from the Rio Grande River and its tributaries in
New Mexico, including water supplied directly or in-
directly from the Middle Rio Grande Project or the 
San Juan-Chama Project.
‘‘(2) PROGRAM.—The term ‘program’ means 
the Middle Rio Grande Water Supply Stabilization 
Program established under section 224. 
‘‘(3) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Interior, acting through the 
Commissioner of the Bureau of Reclamation. 
‘‘(4) STATE.—The term ‘State’ means the State 
of New Mexico. 
‘‘SEC. 224. WATER CONSERVATION. 
‘‘(a) ESTABLISHMENT
OF WATER SUPPLY STA-
BILIZATION PROGRAM.—
‘‘(1) The Secretary, in cooperation with the 
State and the Middle Rio Grande Endangered Spe-
cies Act Collaborative Program, shall establish a 
program to provide financial and technical assistance 
to promote and encourage the adoption and imple-
mentation of water conservation measures within the 
Rio Grande Basin in New Mexico, to be known as 
the Middle Rio Grande Water Supply Stabilization 
Program. 
‘‘(2) The Secretary shall—
‘‘(A) enter into cost sharing and other 
agreements with the State and other entities as 
may be necessary under the Program;
‘‘(B) contribute a share not to exceed 75 
percent of the costs of administering and imple-
menting the Program, subject to the provisions 
and limitations of subsection (b) of this section; 
and 
‘‘(C) provide water conservation technical 
assistance to the State and the Middle Rio 
Grande Conservancy District as may be appro-
priate in furtherance of the purposes of this 
subtitle. 
‘‘(3) The Program shall include, at a minimum, 
to accomplish the purposes of this subtitle—
‘‘(A) in accordance with subsection (b), ir-
rigation efficiency infrastructure improvements 
or other agricultural water conservation meas-
ures; 
‘‘(B) incentives or other measures to en-
courage conversions from production of water-
intensive crops to crops that require less water; 
‘‘(C) measures to improve and encourage 
municipal and industrial water conservation 
programs including programs specifically de-
signed to reduce consumptive water use from 
manufacturing processes;
‘‘(D) incentives or other measures to en-
courage the lease, purchase, dry-year optioning, 
or dedication of water or water rights to meet 
the purposes of this subtitle; 
‘‘(E) establishment of a State program 
under which the State holds and enforces water 
rights leased, purchased, dry-year optioned, or 
otherwise dedicated to provide water supplies to 
meet the purposes of this subtitle; 
‘‘(F) designation of a State agency to—
‘‘(i) administer the Program, and to 
receive 
Federal 
financial 
contributions 
which may be appropriated pursuant to 
this subtitle; 
‘‘(ii) establish guidelines and proce-
dures for approving and funding eligible 
water conservation projects or measures in 
a timely and cost-effective manner; and 
‘‘(iii) ensure that each lease, purchase, 
dry-year optioning, and dedication of water 
and water rights is consistent with State 
water law and the purposes of this subtitle; 
and 
‘‘(G) procedures to consider and incor-
porate the views and recommendations of the
Middle Rio Grande Endangered Species Act 
Collaborative Program, to the extent those 
views and recommendations are consistent with 
the purposes of this subtitle. 
‘‘(b) IRRIGATION EFFICIENCY INFRASTRUCTURE AND 
MEASURES.—
‘‘(1) IN GENERAL.—The following agricultural 
water conservation projects or measures are eligible 
to receive cost-shared Federal financial assistance 
under the Program: 
‘‘(A) The cost of converting from produc-
tion of a water-intensive crop to a crop that re-
quires less water. 
‘‘(B) The cost of eligible on-farm and off-
farm irrigation efficiency infrastructure and 
measures described in paragraph (2) if not less 
than 70 percent of the water conserved as a re-
sult of the irrigation efficiency infrastructure 
and measures is permanently allocated, directly 
or indirectly, to storage in the conservation pool 
referred to in section 226 or otherwise made 
available for release into the Rio Grande River 
to support a living river environment for the 
Middle Rio Grande River and to provide con-
servation, recreation, and other public benefits.
‘‘(2) ELIGIBLE IRRIGATION EFFICIENCY INFRA-
STRUCTURE AND MEASURES.—Eligible irrigation ef-
ficiency infrastructure and measures referred to in 
paragraph (1) are—
‘‘(A) lining of canals and ditches, insula-
tion of piping, and installation of ditch portals 
or gates; 
‘‘(B) tail water return systems; 
‘‘(C) low-energy precision applications; 
‘‘(D) low-flow irrigation systems, including 
drip and trickle systems and micro-sprinkler 
systems; 
‘‘(E) spray jets or nozzles that improve 
water distribution efficiency; 
‘‘(F) surge valves; 
‘‘(G) conversion from gravity or flood irri-
gation to low-flow sprinkler or drip irrigation 
systems; 
‘‘(H) intake screens, fish passages, and 
conversion of diversions to pumps; 
‘‘(I) alternate furrow wetting, irrigation 
scheduling, and similar measures; 
‘‘(J) water measuring devices; and 
‘‘(K) such other irrigation efficiency infra-
structure and measures as the Secretary deter-
mines to be appropriate to carry out the pro-
gram. 
‘‘(c) CONTROL OF PHREATIC VEGETATION.—
‘‘(1) The Secretary shall, immediately upon en-
actment of this Act, cooperate with the State of New 
Mexico, water user organizations, and affected land-
owners to develop and implement a comprehensive 
and cost-effective program to identify, remove, and 
control phreatic vegetation in the floodplain of the 
Rio Grande River and its principal tributaries above 
Caballo Reservoir within the State of New Mexico, 
and to replant and reestablish native vegetation as 
appropriate. 
‘‘(2) In carrying out the requirements of para-
graph 1, the Secretary shall—
‘‘(A) ensure that state-of-the-art and sci-
entifically defensible methods to remove, con-
trol, and dispose of phreatic vegetation are 
used; 
‘‘(B) ensure that labor forces from local 
communities and Pueblos are, to the extent pos-
sible, employed to implement this section; and 
‘‘(C) enter into cost-sharing agreement 
with the State of New Mexico as may be re-
quired to carry out the purposes of this section.
‘‘(3) The Secretary is prohibited from removing 
vegetation unless the Secretary has entered into 
agreements with private landowners providing for 
permission to enter private lands to remove and con-
trol phreatic vegetation and to reestablish native 
vegetation. 
‘‘(4) The Secretary shall, in cooperation with 
the Secretary of Agriculture, the State of New Mex-
ico, and water users within the floodplain of the Rio 
Grande River and its tributaries within the State of 
New Mexico, quantify water salvaged by removal 
and control of phreatic vegetation under this section. 
‘‘(5) The Secretary is authorized to enter into 
agreements for the long-term lease or purchase of 
water salvaged by the control and elimination of 
phreatic vegetation, such water to remain available 
to meet the purposes of this Act. 
‘‘SEC. 225. COST SHARING. 
‘‘(a) NON-FEDERAL SHARE.—The non-Federal share 
of the cost of implementing municipal and industrial water 
conservation programs and projects for converting from 
production of a water-intensive crop to a crop that re-
quires less water, or of an irrigation efficiency infrastruc-
ture measure assisted under section 224(b)—
‘‘(1) shall be not less than 25 percent; and
‘‘(2) shall be paid by—
‘‘(A) the State; 
‘‘(B) an owner or operator of a farm or 
ranch (including an Indian tribe); 
‘‘(C) a nonprofit organization; or 
‘‘(D) and other appropriate entity, as de-
termined by the State. 
‘‘(b) INCREASED
NON-FEDERAL
SHARE.—If an 
owner or operator of a farm or ranch pays 50 percent or 
more of the cost of converting from production of a water-
intensive crop to a crop that requires less water, or of an 
irrigation efficiency infrastructure or measure, the owner 
or operator shall retain the right to use 50 percent of the 
water conserved by the conversion, infrastructure, or 
measure, as determined by the State.
‘‘SEC. 226. PERMANENT CONSERVATION POOL. 
‘‘At the request of the State and to carry out the 
purposes of this subtitle, the Secretary is authorized to—
‘‘(1) establish a permanent conservation pool 
for storage of Rio Grande or San Juan-Chama 
water, to be established in one or more reservoirs 
operated by the Bureau of Reclamation or the U.S. 
Army Corps of Engineers, or to otherwise cooperate 
with the State in the establishment of such conserva-
tion pool; and
‘‘(2) store water salvaged from implementation 
of water conservation measures authorized by this 
subtitle in the pool referred to in subsection (a) for 
release to the Rio Grande River to meet the pur-
poses of this subtitle. 
‘‘SEC. 227. MIDDLE RIO GRANDE ENDANGERED SPECIES 
ACT COLLABORATIVE PROGRAM. 
‘‘The Secretary and the Secretary of the Army shall 
participate in the Middle Rio Grande Endangered Species 
Act Collaborative Program under the terms and conditions 
outlined in the Memorandum of Understanding signed by 
representatives of the Secretary and the Secretary of the 
Army on April 23, 2002, or as that agreement may be 
modified by future agreements of the signatory parties. 
‘‘SEC. 228. WATER RIGHTS OF INDIAN TRIBES AND PUEB-
LOS. 
‘‘(a) The Secretary shall, for the benefit of Indian 
Tribes and Pueblos with unquantified and unadjudicated 
water rights within the Middle Rio Grande Basin in New 
Mexico, provide direct financial assistance to such Tribes 
and Pueblos, for the purposes of determining and quanti-
fying Indian water rights and water requirements, and for 
conducting other water resource studies as may be nec-
essary for the benefit of Tribes and Pueblos.
‘‘(b) The financial assistance provided pursuant to 
subsection (a) of this section shall not be subject to the 
cost-sharing requirements of this subtitle, and shall not 
be reimbursable or returnable under the Federal reclama-
tion laws (Act of June 17, 1902, 32 Stat. 388, and the 
Acts amendatory thereof and supplementary thereto). 
‘‘SEC. 229. REAUTHORIZATION OF WATER DESALINATION 
ACT OF 1996. 
‘‘(a) Section 8 of Public Law 104–298 (the Water 
Desalination Act of 1996, as amended) is amended further 
by—
‘‘(1) in paragraph (a) by striking ‘2004’ and in-
serting in lieu thereof ‘2008’; and 
‘‘(2) in paragraph (b) by striking ‘2004’ and in-
serting in lieu thereof ‘2008’. 
‘‘(b) In carrying out the provisions of the Water De-
salination Act of 1996, as amended, the Secretary shall 
consult with the Middle Rio Grande Endangered Species 
Act Collaborative Program, and shall solicit proposals for 
research and project development, including demonstra-
tion projects and permanent projects, applicable to resolu-
tion of water supply concerns in the Middle Rio Grande 
Basin. 
‘‘SEC. 230. STATE WATER LAW AND OTHER REQUIREMENTS. 
‘‘Nothing in this subtitle—
‘‘(1) preempts any State water law or any inter-
state compact; 
‘‘(2) affects any litigation concerning the enti-
tlement to, or lack of entitlement to, water that is 
pending as of the date of enactment of this section; 
‘‘(3) expands, alters, or otherwise affects the 
existence or scope of any water right of any indi-
vidual (except to the extent that the individual 
agrees otherwise under the Program); or 
‘‘(4) authorizes or entitles the Federal Govern-
ment to hold or purchase any water right. 
‘‘SEC. 231. PROTECTION OF PRIVATE PROPERTY RIGHTS. 
‘‘(a) WILLING SELLERS AND LESSORS.—The Sec-
retary may enter into an agreement for the sale or lease 
of water pursuant to this subtitle only if each eligible enti-
ty that is a party to the agreement is a willing seller or 
willing lessor. 
‘‘(b) PROPERTY RIGHTS.—Nothing in this subtitle 
authorizes the condemnation of private property. 
‘‘SEC. 232. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) There is hereby authorized to be appropriated 
such sums as may be necessary to carry out the provisions 
of this subtitle. 
‘‘(b) The Federal share of costs associated with the 
studies authorized by paragraph (c) under the heading
‘RIO GRANDE BASIN’ in section 203 shall not be reim-
bursable or returnable under the Federal reclamation laws 
(Act of June 17, 1902, 32 Stat. 388, and the Acts amend-
atory thereof and supplementary thereto). The Federal 
share of costs associated with the administration and im-
plementation of the water supply stabilization program au-
thorized in section 224 shall not be reimbursable or re-
turnable under the Federal reclamation laws (Act of June 
17, 1902, 32 Stat. 388, and the Acts amendatory thereof 
and supplementary thereto).’’.
Æ