A bill to compromise and settle all claims in the case of Pueblo of Isleta v. United States, to restore, improve, and develop the valuable on-reservation land and natural resources of the Pueblo, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pueblo of Isleta Settlement and 
Natural Resources Restoration Act of 2006''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) there is pending before the United States Court of 
        Federal Claims a civil action filed by the Pueblo against the 
        United States in which the Pueblo seeks to recover damages 
        pursuant to the Isleta Jurisdictional Act;
            (2) the Pueblo and the United States, after a diligent 
        investigation of the Pueblo claims, have negotiated a 
        Settlement Agreement, the validity and effectiveness of which 
        is contingent on the enactment of enabling legislation;
            (3) certain land of the Pueblo is waterlogged, and it would 
        be to the benefit of the Pueblo and other water users to drain 
        the land and return water to the Rio Grande River; and
            (4) there is Pueblo forest land in need of remediation in 
        order to improve timber yields, reduce the threat of fire, 
        reduce erosion, and improve grazing conditions.
    (b) Purposes.--The purposes of this Act are--
            (1) to improve the drainage of the irrigated land, the 
        health of the forest land, and other natural resources of the 
        Pueblo; and
            (2) to settle all claims that were raised or could have 
        been raised by the Pueblo against the United States under the 
        Isleta Jurisdictional Act in accordance with section 5.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Isleta jurisdictional act.--The term ``Isleta 
        Jurisdictional Act'' means Public Law 104-198 (110 Stat. 2418).
            (2) Pueblo.--The term ``Pueblo'' means the Pueblo of 
        Isleta, a federally-recognized Indian tribe.
            (3) Restoration fund.--The term ``Restoration Fund'' means 
        the Pueblo of Isleta Natural Resources Restoration Fund 
        established by section 4(a).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (5) Settlement agreement.--The term ``Settlement 
        Agreement'' means the Agreement of Compromise and Settlement 
        entered into between the United States and the Pueblo dated 
        July 12, 2005, as modified by the Extension and Modification 
        Agreement executed by the United States and the Pueblo on June 
        22, 2006, to settle the claims of the Pueblo in Docket No. 98-
        166L, a case pending in the United States Court of Federal 
        Claims.

SEC. 4. PUEBLO OF ISLETA NATURAL RESOURCES RESTORATION TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund, to be known as the ``Pueblo of Isleta 
Natural Resources Restoration Fund'', consisting of--
            (1) such amounts as are transferred to the Restoration Fund 
        under subsection (b); and
            (2) any interest earned on investment of amounts in the 
        Restoration Fund under subsection (d).
    (b) Transfers to Restoration Fund.--Upon entry of the final 
judgment described in section 5(b), there shall be transferred to the 
Restoration Fund, in accordance with conditions specified in the 
Settlement Agreement and this Act--
            (1) $32,838,750 from the permanent judgment appropriation 
        established pursuant to section 1304 of title 31, United States 
        Code; and
            (2) in addition to the amounts transferred under paragraph 
        (1), at such times and in such amounts as are specified for 
        that purpose in the annual budget of the Department of the 
        Interior, authorized to be appropriated by subsection (f), and 
        made available by an Act of appropriation, a total of 
        $7,200,000.
    (c) Distribution of Amounts From Restoration Fund.--
            (1) Appropriated amounts.--
                    (A) In general.--Subject to paragraph (3), upon the 
                request of the Pueblo, the Secretary shall distribute 
                amounts deposited in the Restoration Fund pursuant to 
                section V of the Settlement Agreement and subsection 
                (b)(2), in accordance with the terms and conditions of 
                the Settlement Agreement and this Act, on the condition 
                that the Secretary, before any such distribution, 
                receives from the Pueblo such assurances as are 
                satisfactory to the Secretary that--
                            (i) the Pueblo shall deliver funds in the 
                        amount of $7,100,000 toward drainage and 
                        remediation of the agricultural land and 
                        rehabilitation of forest and range land of the 
                        Pueblo in accordance with section IV(C) and 
                        IV(D) of the Settlement Agreement; and
                            (ii) those funds shall be available for 
                        expenditure for drainage and remediation 
                        expenses as provided in sections IV(C) and 
                        IV(D) of the Settlement Agreement on the dates 
                        on which the Secretary makes distributions, and 
                        in amounts equal to the amounts so distributed, 
                        in accordance with sections IV(A) and IV(B) of 
                        the Settlement Agreement.
                    (B) Use of funds.--Of the amounts distributed by 
                the Secretary from the Restoration Fund under 
                subparagraph (A)--
                            (i) $5,700,000 shall be available to the 
                        Pueblo for use in carrying out the drainage and 
                        remediation of approximately 1,081 acres of 
                        waterlogged agricultural land, as described in 
                        section IV(A) of the Settlement Agreement; and
                            (ii) $1,500,000 shall be available to the 
                        Pueblo for use in carrying out the 
                        rehabilitation and remediation of forest and 
                        range land, as described in section IV(B) of 
                        the Settlement Agreement.
                    (C) Federal consultation.--Restoration work carried 
                out using funds distributed under this paragraph shall 
                be planned and performed in consultation with--
                            (i) the Bureau of Indian Affairs; and
                            (ii) such other Federal agencies as are 
                        necessary.
                    (D) Unused funds.--Any funds, including any 
                interest income, that are distributed under this 
                paragraph but that are not needed to carry out this 
                paragraph shall be available for use in accordance with 
                paragraph (2)(A).
            (2) Amounts from judgment fund.--
                    (A) In general.--Subject to paragraph (3), the 
                amount paid into the Restoration Fund under subsection 
                (b)(1), and interest income resulting from investment 
                of that amount, shall be available to the Pueblo for--
                            (i) the acquisition, restoration, 
                        improvement, development, and protection of 
                        land, natural resources, and cultural resources 
                        within the exterior boundaries of the Pueblo, 
                        including improvements to the water supply and 
                        sewage treatment facilities of the Pueblo; and
                            (ii) for the payment and reimbursement of 
                        attorney and expert witness fees and expenses 
                        incurred in connection with Docket No. 98-166L 
                        of the United States Court of Federal Claims, 
                        as provided in the Settlement Agreement.
                    (B) No contingency on provision of funds by 
                pueblo.--The receipt and use of funds by the Pueblo 
                under this paragraph shall not be contingent upon the 
                provision by the Pueblo of the funds described in 
                paragraph (1)(A)(i).
            (3) Expenditures and withdrawal.--
                    (A) Tribal management plan.--
                            (i) In general.--Subject to clause (ii), 
                        the Pueblo may withdraw all or part of the 
                        Restoration Fund on approval by the Secretary 
                        of a tribal management plan in accordance with 
                        section 202 of the American Indian Trust Fund 
                        Management Reform Act of 1994 (25 U.S.C. 4022).
                            (ii) Requirements.--In addition to the 
                        requirements under the American Indian Trust 
                        Fund Management Reform Act of 1994 (25 U.S.C. 
                        4001 et seq.), a tribal management plan 
                        described in clause (i) shall require that the 
                        Pueblo shall expend any funds withdrawn from 
                        the Restoration Fund under this paragraph in a 
                        manner consistent with the purposes described 
                        in the Settlement Agreement.
                    (B) Enforcement.--The Secretary may take judicial 
                or administrative action to enforce the provisions of 
                any tribal management plan described in subparagraph 
                (A)(i) to ensure that any funds withdrawn from the 
                Restoration Fund under this paragraph are used in 
                accordance with this Act.
                    (C) Liability.--If the Pueblo exercises the right 
                to withdraw funds from the Restoration Fund under this 
                paragraph, neither the Secretary nor the Secretary of 
                the Treasury shall retain any liability for the 
                accounting, disbursement, or investment of the funds 
                withdrawn.
                    (D) Expenditure plan.--
                            (i) In general.--The Pueblo shall submit to 
                        the Secretary for approval an expenditure plan 
                        for any portion of the funds in the Restoration 
                        Fund made available under this Act that the 
                        Pueblo does not withdraw under this paragraph.
                            (ii) Description.--The expenditure plan 
                        shall describe the manner in which, and the 
                        purposes for which, funds of the Pueblo 
                        remaining in the Restoration Fund will be used.
                            (iii) Approval.--On receipt of an 
                        expenditure plan under clause (i), the 
                        Secretary shall approve the plan if the 
                        Secretary determines that the plan is 
                        reasonable and consistent with this Act and the 
                        Settlement Agreement.
                    (E) Annual report.--The Pueblo shall submit to the 
                Secretary an annual report that describes expenditures 
                from the Restoration Fund during the year covered by 
                the report.
    (d) Maintenance and Investment of Restoration Fund.--
            (1) In general.--The Restoration Fund and amounts in the 
        Restoration Fund shall be maintained and invested by the 
        Secretary of the Interior pursuant to the first section of the 
        Act of June 24, 1938 (52 Stat. 1037, chapter 648).
            (2) Credits to restoration fund.--The interest on, and the 
        proceeds from the sale or redemption of, any obligations held 
        in the Restoration Fund shall be credited to, and form a part 
        of, the Restoration Fund.
    (e) Prohibition on Per-Capita Payments.--No portion of the amounts 
in the Restoration Fund shall be available for payment on a per-capita 
basis to members of the Pueblo.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Restoration Fund $7,200,000.

SEC. 5. RATIFICATION OF SETTLEMENT, DISMISSAL OF LITIGATION, AND 
              COMPENSATION TO PUEBLO.

    (a) Ratification of Settlement Agreement.--The Settlement Agreement 
is ratified.
    (b) Dismissal.--Not later than 90 days after the date of enactment 
of this Act, the Pueblo and the United States shall execute and file a 
joint stipulation for entry of final judgment in the case of Pueblo of 
Isleta v. United States, Docket 98-166L, in the United States Court of 
Federal Claims in such form and such manner as are acceptable to the 
Attorney General and the Pueblo.
    (c) Compensation.--After the date of enactment of this Act, in 
accordance with the Settlement Agreement, and upon entry of the final 
judgment described in subsection (b)--
            (1) compensation to the Pueblo shall be paid from the 
        permanent judgment appropriation established pursuant to 
        section 1304 of title 31, United States Code, in the total 
        amount of $32,838,750 for all monetary damages and attorney 
        fees, interest, and any other fees and costs of any kind that 
        were or could have been presented in connection with Docket No. 
        98-166L of the United States Court of Federal Claims; but
            (2) the Pueblo shall retain all rights, including the right 
        to bring civil actions based on causes of action, relating to 
        the removal of ordnance under--
                    (A) the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.);
                    (B) the Defense Environmental Restoration Program 
                under section 2701 of title 10, United States Code; and
                    (C) any contract entered into by the Pueblo for the 
                removal of ordnance.
    (d) Other Limitations on Use of Funds.--The Indian Tribal Judgment 
Funds Use or Distribution Act (25 U.S.C. 1401 et seq.) shall not apply 
to funds distributed or withdrawn from the Restoration Fund under this 
Act.
    (e) No Effect on Land, Resources, or Water Rights.--Nothing in this 
Act affects the status of land and natural resources of the Pueblo or 
any water right of the Pueblo.

Summary: Pueblo of Isleta Settlement and Natural Resources Restoration Act of 2006 - Establishes in the Treasury the Pueblo of Isleta Natural Resources Restoration Fund for: (1) settlement of the claims of the Pueblo of Isleta; and (2) the acquisition, restoration, improvement, development, and protection of land, natural resources, and cultural resources within the exterior boundaries of the Pueblo. Provides for the maintenance and investment of the restoration fund.

Ratifies the Agreement of Compromise and Settlement entered into between the United States and the Pueblo on July 12, 2005, as modified by the Extension and Modification Agreement executed by the United States and the Pueblo on June 22, 2006, to settle the claims in the case of Pueblo of Isleta v. United States, Docket No. 98-166L, pending in the U.S. Court of Federal Claims.

Directs the Pueblo and the United States to execute and file a joint stipulation for entry of final judgment in dismissal of such case.

Provides for the payment of compensation to the Pueblo from the permanent judgment appropriation for all monetary damages and attorney fees, interest, and other fees and costs of any kind that were or could have been presented in connection with Docket No. 98-166L.