‘‘(2) The Secretary shall not reallocate, or require re-
payment of, construction costs of the Navajo Indian Irri-
gation Project because of the conveyance of water supplies 
under paragraph (1).’’. 
(b) RUNOFF ABOVE NAVAJO DAM.—Section 11 of 
Public 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 
prospective shortage the water allocation procedures es-
tablished by subsection (a), the Secretary of the Interior 
shall determine the quantity of any shortages and the ap-
propriate apportionment of water using the normal diver-
sion requirements on the flow of the San Juan River origi-
nating 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 
irrigate 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-
gation uses under water delivery contracts, including 
the demand for delivery for uses in the State of Ari-
zona under the Northwestern New Mexico Rural 
Water Supply Project authorized by section 302(a) 
of the Northwestern New Mexico Rural Water 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
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. 
‘‘(2) The Secretary shall not include in the normal 
diversion 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 Engi-
neer File No. 3215; or 
‘‘(B) the quantity of water anticipated to be 
supplied through reuse. 
‘‘(3) If the State of New Mexico determines that 
water uses under Navajo Reservoir water supply contracts 
or diversions by the San Juan-Chama Project need to be 
reduced in any 1 year for the State to comply with the 
Upper Colorado River Basin Compact, as consented to by 
the Act of April 6, 1949 (63 Stat. 31, chapter 48), the 
Secretary shall reduce the normal diversion requirements 
for the year to reflect the water use or diversion limita-
tions imposed by the State of New Mexico. 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
‘‘(e)(1) If the Secretary determines that there is a 
shortage of water under subsection (a), the Secretary shall 
allocate the shortage to the demands on the Navajo Res-
ervoir water supply in the following order of priority: 
‘‘(A) The demand for delivery for uses in the 
State of Arizona under the Northwestern New Mex-
ico Rural Water Supply Project authorized by sec-
tion 303 of the Northwestern New Mexico Rural 
Water Projects Act, excluding the quantity of water 
anticipated to be diverted 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 401(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 allocates a shortage in the Navajo Reservoir water 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
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 
stored in a top water bank in Navajo Reservoir established 
under section 16(a) of the Act of April 11, 1956 (com-
monly known as the ‘Colorado River Storage Project Act’). 
‘‘(f) The Secretary of the Interior shall apply the 
sharing and apportionment of water determined under 
subsections (a), (d), and (e) on an annual volume 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 Secretary 
from reallocating water for any year, including a year in 
which a shortage is determined under subsection (a), in 
accordance with cooperative water agreements between 
water users providing for a sharing of water supplies. 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
‘‘(i) Any water available for diversion under New 
Mexico State Engineer File No. 3215 shall be distributed, 
to the maximum extent practicable, in proportionate 
amounts to the diversion demands of all contractors and 
subcontractors of the Navajo Reservoir water supply that 
are diverting water below Navajo Dam.’’. 
SEC. 103. EFFECT ON FEDERAL WATER LAW. 
Unless expressly provided in this Act, nothing in this 
Act modifies, conflicts with, preempts, or otherwise af-
fects— 
(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 representing utilization of wa-
ters of the Colorado and Tijuana Rivers and of the 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
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, chap-
ter 48); 
(10) the Jicarilla Apache Tribe Water Rights 
Settlement Act (106 Stat. 2237); or 
(11) section 205 of the Energy and Water De-
velopment Appropriations Act, 2005 (118 Stat. 
2949). 
TITLE II—RECLAMATION WATER 
SETTLEMENTS FUND 
SEC. 201. 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.— 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(1) IN
GENERAL.—For each of fiscal years 
2018 through 2028, the Secretary of the Treasury 
shall deposit in the Fund $90,000,000 of the reve-
nues that would otherwise be deposited for the fiscal 
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— 
(A) without further appropriation; and 
(B) in addition to amounts appropriated 
pursuant to any authorization that is contained 
in— 
(i) any settlement that is approved by 
Congress; or 
(ii) any other provision of law. 
(c) EXPENDITURES FROM FUND.— 
(1) IN
GENERAL.—For each of fiscal years 
2018 through 2030, on request by the Secretary 
pursuant to paragraphs (2) and (3), the Secretary 
of the Treasury shall transfer from the Fund to the 
Secretary an amount not to exceed $90,000,000 for 
the fiscal year to implement water-related judicial 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
settlements or other agreements involving the Bu-
reau of Reclamation that are approved by Congress. 
(2) REQUESTS.—The Secretary may request a 
transfer from the Fund to implement a settlement 
agreement approved by Congress that resolves, in 
whole or in part, litigation involving the United 
States or any other agreement approved by Congress 
that is entered into by the Secretary, if the agree-
ment requires the Bureau of Reclamation to plan, 
design, and construct— 
(A) water supply infrastructure; or 
(B) a project— 
(i) to rehabilitate a water delivery sys-
tem to conserve water; or 
(ii) to restore fish or wildlife habitat 
or otherwise improve environmental condi-
tions associated with or affected by a rec-
lamation project that is in existence on the 
date of enactment of this Act. 
(3) USE FOR COMPLETION OF PROJECT.— 
(A) PRIORITIES.— 
(i) FIRST
PRIORITY.—The first pri-
ority for expenditure of amounts in the 
Fund shall be for the purposes described in 
subparagraph (B). 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(ii) OTHER PURPOSES.—Any amounts 
in the Fund that are not needed for the 
purposes described in subparagraph (B) 
may be used for other purposes authorized 
in paragraph (2). 
(B) 
EXPEDITED
COMPLETION
OF 
PROJECT.—Effective 
beginning 
January 
1, 
2018, if, in the judgment of the Secretary, the 
deadline described in section 401(f)(1)(A)(ix) is 
unlikely to be met because a sufficient amount 
of funding is not otherwise available through 
appropriations made available pursuant to sec-
tion 308(a), the Secretary shall request the Sec-
retary of the Treasury to transfer from the 
Fund to the Secretary such amounts (subject to 
paragraph (1)) as are necessary to pay the Fed-
eral share of the costs, and substantially com-
plete as expeditiously as practicable, the con-
struction of the water supply infrastructure au-
thorized as part of the Project. 
(C) PROHIBITED USE OF FUND.—The Sec-
retary shall not use any amount transferred 
from the Fund under subparagraph (A) to 
carry out any other feature or activity described 
in title IV other than a feature or activity relat-
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
ing to the construction of the water supply in-
frastructure authorized as part of the Project. 
(d) INVESTMENT OF AMOUNTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall invest such portion of the Fund as is not, 
in the judgment of the Secretary of the Treasury, 
required to meet current withdrawals. 
(2) INTEREST-BEARING OBLIGATIONS.—Invest-
ments may be made only in interest-bearing obliga-
tions of the United States. 
(3) ACQUISITION
OF
OBLIGATIONS.—For the 
purpose of investments under paragraph (1), obliga-
tions may be acquired— 
(A) on original issue at the issue price; or 
(B) by purchase of outstanding obligations 
at the market price. 
(4) SALE OF OBLIGATIONS.—Any obligation ac-
quired by the Fund may be sold by the Secretary of 
the Treasury at the market price. 
(5) CREDITS TO FUND.—The interest on, and 
the proceeds from the sale or redemption of, any ob-
ligations held in the Fund shall be credited to, and 
form a part of, the Fund. 
(e) TRANSFERS OF AMOUNTS.— 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(1) IN GENERAL.—The amounts required to be 
transferred to the Fund under this section shall be 
transferred at least monthly from the general fund 
of the Treasury to the Fund on the basis of esti-
mates made by the Secretary of the Treasury. 
(2) ADJUSTMENTS.—Proper adjustment shall 
be made in amounts subsequently transferred to the 
extent prior estimates were in excess of or less than 
the amounts required to be transferred. 
(f) TERMINATION.—On September 30, 2030— 
(1) the Fund shall terminate; and 
(2) the unexpended and unobligated balance of 
the Fund shall be transferred to the general fund of 
the Treasury. 
TITLE III—NORTHWESTERN NEW 
MEXICO RURAL WATER SUP-
PLY PROJECT 
SEC. 301. PURPOSES. 
The purposes of this subtitle are— 
(1) to authorize the Secretary to construct the 
Northwestern New Mexico Rural Water Supply 
Project; 
(2) to allocate the water supply for the Project 
among the Nation, the city of Gallup, New Mexico, 
and the Jicarilla Apache Nation; and 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(3) to authorize the Secretary to enter into 
Project repayment contracts with the city of Gallup 
and the Jicarilla Apache Nation. 
SEC. 302. AUTHORIZATION OF NORTHWESTERN NEW MEX-
ICO RURAL WATER SUPPLY PROJECT. 
(a) IN GENERAL.—The Secretary, acting through the 
Commissioner of Reclamation, may design, construct, op-
erate, and maintain the Project in substantial accordance 
with the preferred alternative in the Draft Impact State-
ment. 
(b) PROJECT FACILITIES.—To provide for the deliv-
ery of San Juan River water to Project Participants, the 
Secretary may construct, operate, and maintain the 
Project facilities described in the preferred alternative in 
the Draft Impact Statement, including: 
(1) A pumping plant on the San Juan River in 
the vicinity of Kirtland, New Mexico. 
(2)(A) A main pipeline from the San Juan 
River near Kirtland, New Mexico, to Shiprock, New 
Mexico, and Gallup, New Mexico, which follows 
United States Highway 491. 
(B) Any pumping plants associated with the 
pipeline authorized under subparagraph (A). 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(3)(A) A main pipeline from Cutter Reservoir 
to Ojo Encino, New Mexico, which follows United 
States Highway 550. 
(B) Any pumping plants associated with the 
pipeline authorized under subparagraph (A). 
(4)(A) Lateral pipelines from the main pipelines 
to Nation communities in the States of New Mexico 
and Arizona. 
(B) Any pumping plants associated with the 
pipelines authorized under subparagraph (A). 
(5) Any water regulation, storage or treatment 
facility, service connection to an existing public 
water supply system, power substation, power dis-
tribution works, or other appurtenant works (includ-
ing a building or access road) that is related to the 
Project facilities authorized by paragraphs (1) 
through (4), including power transmission facilities 
to connect Project facilities to existing high-voltage 
transmission facilities. 
(c) ACQUISITION OF LAND.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary may acquire any land or in-
terest in land that is necessary to construct, operate, 
and maintain the Project facilities authorized under 
subsection (b). 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(2) LIMITATION.—The Secretary may not con-
demn water rights for purposes of the Project. 
(d) CONDITIONS.— 
(1) IN GENERAL.—The Secretary shall not com-
mence construction of the facilities authorized under 
subsection (b) until such time as— 
(A) the Secretary executes the Agreement 
and the Contract; 
(B) the contracts authorized under section 
304 are executed; 
(C) the Secretary— 
(i) completes an environmental impact 
statement for the Project; and 
(ii) has issued a record of decision 
that provides for a preferred alternative; 
and 
(D) the State of New Mexico has made ar-
rangements with the Secretary to contribute 
$25,000,000 toward the construction costs of 
the Project. 
(2) COST
SHARING.—State contributions re-
quired under paragraph (1)(D) shall be in addition 
to amounts that the State of New Mexico contrib-
utes for the planning and construction of regional 
facilities to distribute Project water to the City and 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
surrounding Nation communities before the date on 
which the City executes a repayment contract under 
section 304(b). 
(3) EFFECT.—The design and construction of 
the Project shall not be subject to the Indian Self- 
Determination and Education Assistance Act (25 
U.S.C. 450 et seq.). 
(e) CONVEYANCE OF PROJECT FACILITIES.— 
(1) IN
GENERAL.—The Secretary may enter 
into separate agreements with the City and the Na-
tion to convey each Project facility authorized under 
subsection (b) to the City and the Nation after— 
(A) completion of construction of the 
Project; and 
(B) execution of a Project operations 
agreement approved by the Secretary and the 
Project Participants that sets forth— 
(i) any terms and conditions that the 
Secretary determines are necessary— 
(I) to ensure the continuation of 
the intended benefits of the Project; 
and 
(II) to fulfill the purposes of this 
subtitle; 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(ii) requirements acceptable to the 
Secretary and the Project Participants 
for— 
(I) the distribution of water 
under the Project; and 
(II) the allocation and payment 
of annual operation, maintenance, and 
replacement costs of the Project based 
on the proportionate uses of Project 
facilities; and 
(iii) conditions and requirements ac-
ceptable to the Secretary and the Project 
Participants for operating and maintaining 
each Project facility on completion of the 
conveyance, including the requirement that 
the City and the Nation shall— 
(I) comply with— 
(aa) the Compact; and 
(bb) other applicable law; 
and 
(II) be responsible for— 
(aa) the operation, mainte-
nance, and replacement of each 
Project facility; and 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS
(bb) the accounting and 
management of water conveyance 
and Project finances, as nec-
essary to administer and fulfill 
the conditions of the Contract ex-
ecuted 
under 
section 
304(a)(2)(B). 
(2) CONVEYANCE TO THE CITY OF GALLUP OR 
NAVAJO
NATION.—In conveying a Project facility 
under this subsection, the Secretary shall convey 
to— 
(A) the City the facilities and any land or 
interest in land acquired by the United States 
for the construction, operation, and mainte-
nance of the Project that are located within the 
corporate boundaries of the City; and 
(B) the Nation the facilities and any land 
or interests in land acquired by the United 
States for the construction, operation, and 
maintenance of the Project that are located out-
side the corporate boundaries of the City. 
(3) EFFECT OF CONVEYANCE.—The conveyance 
of each Project facility shall not affect the applica-
tion of the Endangered Species Act of 1973 (16 
VerDate Aug 31 2005 
03:11 Dec 14, 2006
Jkt 059196
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H6436.IH
H6436
jcorcoran on PRODPC62 with BILLS