Navajo-Gallup Water Supply Project Amendments Act of 2022
Bill: H.R.9371 | Sponsor: Rep. Leger Fernandez, Teresa (D-NM)
Policy area: Native Americans

Summary:
Navajo-Gallup Water Supply Project Amendments Act of 2022
This bill revises the Navajo-Gallup Water Supply Project (a water infrastructure project in New Mexico), including by extending through December 31, 2029, the deadline for constructing project facilities and allowing for additional project service areas.

To amend the Northwestern New Mexico Rural Water Projects Act to make 
           improvements to that Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Navajo-Gallup Water Supply Project 
Amendments Act of 2022''.

SEC. 2. DEFINITIONS.

    Section 10302 of the Northwestern New Mexico Rural Water Projects 
Act (43 U.S.C. 407 note; Public Law 111-11) is amended--
            (1) by redesignating paragraphs (12), (13), (14), (15), 
        (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), 
        (26), (27), (28), (29), and (30) as paragraphs (13), (14), 
        (15), (16), (17), (18), (19), (20), (21), (22), (23), (24), 
        (25), (28), (29), (30), (31), (32), and (33), respectively;
            (2) by inserting after paragraph (11) the following:
            ``(12) Deferred construction fund.--The term `Deferred 
        Construction Fund' means the Navajo Nation's Navajo-Gallup 
        Water Supply Project Deferred Construction Fund established by 
        section 10602(i)(1)(A).'';
            (3) in paragraph (14) (as so redesignated)--
                    (A) in the paragraph heading, by striking ``Draft'' 
                and inserting ``Final environmental'';
                    (B) by striking ``Draft Impact'' and inserting 
                ``Final Environmental'';
                    (C) by striking ``draft environmental'' and 
                inserting ``final environmental''; and
                    (D) by striking ``March 2007'' and inserting ``July 
                6, 2009'';
            (4) in paragraph (19) (as so redesignated), by striking 
        ``Draft'' and inserting ``Final Environmental'';
            (5) by inserting after paragraph (25) (as so redesignated) 
        the following:
            ``(26) Project service area.--The term `Project Service 
        Area' means the area that encompasses the 43 Nation chapters, 
        the southwest portion of the Jicarilla Apache Reservation, and 
        the City that is identified to be served by the Project, as 
        illustrated in figure IV-5 (Drawing No. 1695-406-49) of the 
        Final Environmental Impact Statement.
            ``(27) San juan generating station.--The term `San Juan 
        Generating Station' means the coal-fired, 4-unit electric power 
        plant and ancillary features located by the San Juan Mine near 
        Waterflow, New Mexico.''; and
            (6) by adding at the end the following:
            ``(34) Working cost estimate.--The term `Working Cost 
        Estimate' means the Bureau of Reclamation document entitled 
        `NGWSP October 2020 WCE' and dated May 20, 2021, that details 
        the costs totaling $1,705,174,000, at the October 2020 price 
        level, of the Project, as configured on that date.''.

SEC. 3. NAVAJO-GALLUP WATER SUPPLY PROJECT.

    (a) Authorization of Navajo-Gallup Water Supply Project.--Section 
10602 of the Northwestern New Mexico Rural Water Projects Act (Public 
Law 111-11; 123 Stat. 1379) is amended--
            (1) in subsection (a)--
                    (A) in the subsection heading, by striking ``In 
                General'' and inserting ``Authorization'';
                    (B) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--The Secretary'';
                    (C) in paragraph (1) (as so designated), by 
                striking ``Draft Impact Statement'' and inserting 
                ``Final Environmental Impact Statement, as further 
                refined in, and including the facilities identified in, 
                the Working Cost Estimate and any subsequent 
                supplemental documents prepared in accordance with the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.).''; and
                    (D) by adding at the end the following:
            ``(2) Additional service areas.--
                    ``(A) Findings.--Congress finds that--
                            ``(i) expanding the Project Service Area 
                        would create opportunities to increase service 
                        for additional Nation Tribal members and would 
                        not increase the cost of the Project beyond 
                        authorization levels described in section 
                        10609(a); and
                            ``(ii) the unit operations and maintenance 
                        costs of the Project would be reduced by adding 
                        more customers to the Project.
                    ``(B) Authorizations for additional project service 
                areas.--
                            ``(i) New mexico.--In addition to 
                        delivering water supply from the Project to the 
                        Nation communities in the San Juan River Basin, 
                        the Nation may expand the Project Service Area 
                        in order to deliver water supply from the 
                        Project to communities of the Nation within the 
                        Rio San Jose Basin, New Mexico.
                            ``(ii) Arizona.--In addition to delivering 
                        water supply from the Project to the Nation 
                        communities of Fort Defiance and Window Rock, 
                        Arizona, and subject to section 10603(c)(1), 
                        the Nation may expand the Project Service Area 
                        in order to deliver water supply from the 
                        Project to the Nation community of Lupton, 
                        Arizona, within the Little Colorado River 
                        Basin, Arizona.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by inserting ``acquire,'' before 
                        ``construct,''; and
                            (ii) by striking ``Draft Impact Statement'' 
                        and inserting ``Final Environmental Impact 
                        Statement, as further refined in, and including 
                        the facilities identified in, the Working Cost 
                        Estimate and any subsequent supplemental 
                        documents prepared in accordance with the 
                        National Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.)'';
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) San juan generating station.--
                    ``(A) In general.--The water conveyance and storage 
                facilities associated with the San Juan Generating 
                Station, including the diversion dam, the intake 
                structure, the river pumping plant, the pipeline from 
                the river to the reservoir, the dam and associated 
                reservoir, the power line between the river and 
                reservoir, and any associated land, rights-of-way, 
                easements, or ancillary features.
                    ``(B) Waiver of appraisal.--Notwithstanding any 
                other provision of law, the Secretary may waive an 
                appraisal relating to the acquisition of the water 
                conveyance and storage facilities associated with the 
                San Juan Generating Station described in subparagraph 
                (A).'';
                    (C) in paragraph (2)(A)--
                            (i) by striking ``River near Kirtland, New 
                        Mexico,'' and inserting ``Generating Station 
                        Reservoir''; and
                            (ii) by inserting ``generally'' before 
                        ``follows United States Highway 491'';
                    (D) in paragraph (3)(A), by inserting ``generally'' 
                before ``follows United States Highway 550''; and
                    (E) in paragraph (5), by inserting ``(including any 
                reservoir facility)'' after ``treatment facility'';
            (3) in subsection (c)--
                    (A) in the subsection heading, by inserting ``and 
                Facilities'' after ``Land'';
                    (B) in paragraph (1), by striking ``any land or 
                interest in land that is'' and inserting ``any land or 
                facilities, or interest in land or facilities, that 
                are''; and
                    (C) by adding at the end the following:
            ``(4) Land to be taken into trust.--
                    ``(A) In general.--On satisfaction of the 
                conditions described in paragraph (7) of the Agreement 
                and after the requirements of sections 10701(e) and 
                10703 are met, the Secretary shall take legal title to 
                the following land and, subject to subparagraph (D), 
                hold that land in trust for the benefit of the Nation:
                            ``(i) Fee land of the Nation, including--
                                    ``(I) the parcels of land on which 
                                the Tohlakai Pumping Plant, Reach 12A 
                                and Reach 12B, are located, including, 
                                in McKinley County, New Mexico--
                                            ``(aa) sec. 5, T. 16 N., R. 
                                        18 W., New Mexico Prime 
                                        Meridian; and
                                            ``(bb) sec. 33, T. 17 N., 
                                        R. 17 W., New Mexico Prime 
                                        Meridian (except lot 9 and the 
                                        NW\1/4\ of lot 4);
                                    ``(II) the parcel of land on which 
                                Reach 12.1 is located, including--
                                            ``(aa) NW\1/4\ and SW\1/4\ 
                                        sec. 5, T. 16 N., R. 18 W.;
                                            ``(bb) N\1/2\ sec. 11, T. 
                                        16 N., R. 19 W.; and
                                            ``(cc) sec. 12, T. 16 N., 
                                        R. 20 W.; and
                                    ``(III) the parcel of land on which 
                                Reach 12.2 is located, including NW\1/
                                4\. sec. 2, T. 16 N., R. 21 W.
                            ``(ii) Public domain land managed by the 
                        Bureau of Land Management, including--
                                    ``(I) the parcel of land on which 
                                the Cutter Lateral Water Treatment 
                                Plant is located, including S\1/2\ sec. 
                                9, T. 25 N., R. 9 W., New Mexico Prime 
                                Meridian; and
                                    ``(II) the parcel of land on which 
                                the Navajo Agricultural Products 
                                Industry turnout is located, including 
                                NW\1/4\ and NE\1/4\ sec. 34, T. 26 N., 
                                R. 9 W., New Mexico Prime Meridian.
                            ``(iii) Public domain land managed by the 
                        Bureau of Reclamation, including the land 
                        underlying the San Juan Generating Station 
                        facilities acquired by the United States.
                    ``(B) Part of navajo nation.--The land taken into 
                trust under subparagraph (A) shall be part of the 
                Navajo Reservation and administered in accordance with 
                the laws and regulations generally applicable to land 
                held in trust by the United States for the benefit of 
                an Indian Tribe.
                    ``(C) Limitations.--The land taken into trust under 
                subparagraph (A) shall be subject to valid existing 
                rights, contracts, and management agreements, including 
                easements and rights-of-way.
                    ``(D) Savings clause.--Nothing in this paragraph 
                affects any--
                            ``(i) water right of the Nation in 
                        existence on the day before the date of 
                        enactment of the Navajo-Gallup Water Supply 
                        Project Amendments Act of 2022; and
                            ``(ii) right or claim of the Nation to any 
                        land or interest in land in existence on the 
                        day before the date of enactment of the Navajo-
                        Gallup Water Supply Project Amendments Act of 
                        2022.'';
            (4) in subsection (d)(1)(D), by striking ``Draft'' and 
        inserting ``Final Environmental'';
            (5) in subsection (e)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Renewable energy and hydroelectric power.--
                    ``(A) Renewable energy.--For any portion of the 
                Project that does not have access to Colorado River 
                Storage Project power, the Secretary may use not more 
                than $6,250,000 of the amounts made available under 
                section 10609(a)(1) to develop renewable energy.
                    ``(B) Hydroelectric power.--Notwithstanding whether 
                a Project facility has access to Colorado River Storage 
                Project power, the Secretary may use not more than 
                $1,250,000 of the $6,250,000 authorized to be used to 
                develop renewable energy under subparagraph (A) to 
                develop hydroelectric power for any Project facility 
                that can use hydraulic head to produce electricity.'';
            (6) in subsection (h)(1), in the matter preceding 
        subparagraph (A), by inserting ``, store,'' after ``treat''; 
        and
            (7) by adding at the end the following:
    ``(i) Deferred Construction of Project Facilities.--
            ``(1) Deferred construction of project facilities.--On 
        mutual agreement between the Nation and the Secretary, and the 
        Jicarilla Apache Nation if the deferred Project facilities 
        benefit the Jicarilla Apache Nation, construction of selected 
        Project facilities may be deferred to save operation and 
        maintenance expenses associated with that construction.
            ``(2) Deferred construction fund.--
                    ``(A) Establishment.--There is established in the 
                Treasury a fund, to be known as the `Navajo Nation's 
                Navajo-Gallup Water Supply Project Deferred 
                Construction Fund', to consist of--
                            ``(i) amounts that correspond to portions 
                        of the Project that have been deferred under 
                        paragraph (1); and
                            ``(ii) any interest or other gains on 
                        amounts referred to in clause (i).
                    ``(B) Use of the deferred construction fund.--The 
                Nation may use amounts in the Deferred Construction 
                Fund--
                            ``(i) to construct Project facilities that 
                        have been deferred under paragraph (1); or
                            ``(ii) to construct alternate facilities 
                        agreed on under subparagraph (C).
                    ``(C) Alternate facilities consistent with the 
                purpose of the project.--On agreement between the 
                Nation and the Secretary, and the Jicarilla Apache 
                Nation if the deferred Project facilities benefit the 
                Jicarilla Apache Nation, and in compliance with all 
                applicable environmental and cultural resource 
                protection laws, facilities other than those previously 
                agreed to be deferred under paragraph (1) may be 
                constructed if those alternate facilities are 
                consistent with the purposes of the Project described 
                in section 10601.
            ``(3) Amounts to be deposited.--Funds allocated from the 
        amounts made available under section 10609(a)(1) to build 
        facilities referred to in paragraph (1) shall be deposited into 
        the Deferred Construction Fund.
            ``(4) Adjustments.--On deposit of amounts into the Deferred 
        Construction Fund under paragraph (3), the adjustments to 
        authorized appropriations under section 10609(a)(2) shall no 
        longer apply to those amounts.
            ``(5) Deadline to construct project facilities.--On deposit 
        of all amounts into the Deferred Construction Fund for 
        construction of Project facilities agreed on under paragraph 
        (1), the Secretary shall be deemed to have met the obligation 
        under section 10701(e)(1)(A)(ix).
            ``(6) Future construction of project facilities.--On 
        agreement between the Nation and the Secretary, and the 
        Jicarilla Apache Nation if the deferred Project facilities 
        benefit the Jicarilla Apache Nation, the Nation shall use 
        amounts deposited into the Deferred Construction Fund to 
        construct--
                    ``(A) Project facilities deferred under paragraph 
                (1); or
                    ``(B) alternate Project facilities described in 
                paragraph (2)(C).''.
    (b) Delivery and Use of Navajo-Gallup Water Supply Project Water.--
Section 10603(a)(3)(B) of the Northwestern New Mexico Rural Water 
Projects Act (Public Law 111-11; 123 Stat. 1383) is amended--
            (1) in clause (i), by inserting ``or, if generated on City-
        owned facilities, by the City'' after ``the Nation''; and
            (2) in clause (ii), by inserting ``, except that the City 
        shall retain all revenue from the sale of hydroelectric power 
        that is generated on City-owned facilities'' after 
        ``hydroelectric power''.
    (c) Project Contracts.--Section 10604 of the Northwestern New 
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1388) is 
amended--
            (1) in subsection (b)(3)--
                    (A) in subparagraph (A), by striking ``subparagraph 
                (B)'' and inserting ``subparagraphs (B) and (C)'';
                    (B) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        striking ``Minimum percentage'' and inserting 
                        ``Maximum percentage'';
                            (ii) by striking ``at least 25 percent'' 
                        and inserting ``not more than 25 percent''; and
                            (iii) by striking ``, but shall in no event 
                        exceed 35 percent''; and
                    (C) by adding at the end the following:
                    ``(C) Maximum repayment obligation.--The repayment 
                obligation of the City referred to in subparagraphs (A) 
                and (B) shall not exceed $76,000,000.'';
            (2) in subsection (c)(1)(B), by inserting ``subsection (f) 
        and'' before ``section 10603(g)'';
            (3) in subsection (d)(1), by striking ``Draft'' and 
        inserting ``Final Environmental'';
            (4) in subsection (e), by striking ``Draft'' and inserting 
        ``Final Environmental''; and
            (5) in subsection (f)--
                    (A) by redesignating paragraphs (1) through (5) as 
                subparagraphs (A) through (E), respectively, and 
                indenting appropriately;
                    (B) by inserting before subparagraph (A) (as so 
                designated) the following:
            ``(1) Navajo nation.--'';
                    (C) in paragraph (1) (as so designated)--
                            (i) in subparagraph (A) (as so 
                        redesignated), by striking ``may waive'' and 
                        all that follows through the period at the end 
                        and inserting ``shall waive, for a period of 15 
                        years, the operation, maintenance, and 
                        replacement costs allocable to the Nation.'';
                            (ii) in subparagraph (B) (as so 
                        redesignated)--
                                    (I) by striking ``paragraph (1)'' 
                                and inserting ``subparagraph (A) 
                                expires'';
                                    (II) by striking ``allocated''; and
                                    (III) by inserting ``that are 
                                allocated to the Nation'' after 
                                ``Project'';
                            (iii) in subparagraph (C) (as so 
                        redesignated), by striking ``paragraph (1)'' 
                        and inserting ``subparagraph (A)'';
                            (iv) by striking subparagraph (D) (as so 
                        redesignated) and inserting the following:
                    ``(D) Antideficiency.--The Secretary shall not be 
                liable for any failure to carry out any obligation or 
                activity authorized by this subsection if adequate 
                appropriations are not provided expressly by an Act of 
                Congress to carry out the purposes of this 
                subsection.''; and
                            (v) by striking subparagraph (E) (as so 
                        redesignated) and inserting the following:
                    ``(E) Termination of waiver.--The waiver authorized 
                under subparagraph (A) shall terminate with respect to 
                a section of the Project on the earlier of--
                            ``(i) the date on which that section of the 
                        Project is transferred to the Nation under 
                        section 10602(f); and
                            ``(ii) the date on which the waiver granted 
                        by the Secretary under that subparagraph has 
                        been in place for 15 years.''; and
                    (D) by adding at the end the following:
            ``(2) Jicarilla apache nation.--
                    ``(A) 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 Jicarilla Apache Nation, the Secretary shall 
                waive, for a period of 10 years, the operation, 
                maintenance, and replacement costs allocable to the 
                Jicarilla Apache Nation.
                    ``(B) Subsequent payment by jicarilla apache 
                nation.--After a waiver under subparagraph (A) expires, 
                the Jicarilla Apache Nation shall pay all operation, 
                maintenance, and replacement costs of that section of 
                the Project that are allocated to the Jicarilla Apache 
                Nation.
                    ``(C) Payment by united states.--Any operation, 
                maintenance, or replacement costs waived by the 
                Secretary under subparagraph (A) shall be paid by the 
                United States and shall be nonreimbursable.
                    ``(D) Antideficiency.--The Secretary shall not be 
                liable for any failure to carry out any obligation or 
                activity authorized by this subsection if adequate 
                appropriations are not provided expressly by an Act of 
                Congress to carry out the purposes of this subsection.
            ``(3) City of gallup.--
                    ``(A) 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 City, the Secretary shall waive, for a period of 
                10 years, the operation, maintenance, and replacement 
                costs allocable to the City.
                    ``(B) Subsequent payment by city of gallup.--After 
                a waiver under subparagraph (A) expires, the City shall 
                pay all operation, maintenance, and replacement costs 
                of that section of the Project that are allocated to 
                the City.
                    ``(C) Payment by united states.--Any operation, 
                maintenance, or replacement costs waived by the 
                Secretary under subparagraph (A) shall be paid by the 
                United States and shall be nonreimbursable.
                    ``(D) Antideficiency.--The Secretary shall not be 
                liable for any failure to carry out any obligation or 
                activity authorized by this subsection if adequate 
                appropriations are not provided expressly by an Act of 
                Congress to carry out the purposes of this 
                subsection.''.
    (d) Authorization of Conjunctive Use Wells.--Section 10606 of the 
Northwestern New Mexico Rural Water Projects Act (Public Law 111-11; 
123 Stat. 1392) is amended by adding at the end the following:
    ``(i) Wells Serving the City of Gallup Regional Water System.--
            ``(1) In general.--The Secretary shall enter into a 
        financial assistance agreement with the City to provide 
        funding, using amounts made available under section 
        10609(b)(3), for the construction or rehabilitation of wells 
        and related pipeline facilities to provide capacity for the 
        diversion and distribution by the City of not more than 1,500 
        acre feet of groundwater per year.
            ``(2) Water rights.--The water rights associated with any 
        wells constructed or rehabilitated under paragraph (1)--
                    ``(A) shall not be considered to be part of the 
                Agreement; and
                    ``(B) shall be considered to be already existing 
                water rights permitted by the New Mexico State Engineer 
                to the City for municipal and domestic uses.
            ``(3) Title to wells.--Title to the wells and related 
        pipeline facilities constructed or rehabilitated in accordance 
        with paragraph (1) shall remain with the City at all times.
            ``(4) Associated costs.--All operation, maintenance, and 
        replacement costs associated with wells and related pipeline 
        facilities constructed or rehabilitated in accordance with 
        paragraph (1) shall be the responsibility of the City.''.
    (e) Authorization of Appropriations.--Section 10609 of the 
Northwestern New Mexico Rural Water Projects Act (Public Law 111-11; 
123 Stat. 1395) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``$870,000,000 
                for the period of fiscal years 2009 through 2024'' and 
                inserting ``$1,923,200,000 for the period of fiscal 
                years 2009 through 2029'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Adjustments.--
                    ``(A) In general.--The amount under paragraph (1) 
                shall be adjusted by such amounts as may be required--
                            ``(i) by reason of changes since October 
                        2020 in construction cost changes in applicable 
                        regulatory standards, as indicated by 
                        engineering cost indices applicable to the 
                        types of construction involved; and
                            ``(ii) to address construction cost changes 
                        necessary to account for unforeseen market 
                        volatility that may not otherwise be captured 
                        by engineering cost indices described in clause 
                        (i), as determined by the Secretary, including 
                        repricing applicable to the types of 
                        construction and current industry standards 
                        involved.
                    ``(B) Deferred construction fund.--Amounts 
                deposited in the Deferred Construction Fund shall not 
                be adjusted pursuant to this paragraph.''; and
                    (C) in paragraph (4)(B), by striking ``10 years'' 
                and inserting ``15 years'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``$30,000,000, as 
                adjusted under paragraph (3), for the period of fiscal 
                years 2009 through 2019'' and inserting ``$37,500,000, 
                as adjusted under paragraph (4), for the period of 
                fiscal years 2009 through 2032'';
                    (B) in paragraph (2), by striking ``2024'' and 
                inserting ``2032'';
                    (C) by redesignating paragraphs (3) through (6) as 
                paragraphs (4) through (7), respectively;
                    (D) by inserting after paragraph (2) the following:
            ``(3) City of gallup wells.--There is authorized to be 
        appropriated for the construction or rehabilitation and 
        operation and maintenance of conjunctive use wells for the City 
        $18,000,000, as adjusted under paragraph (4), for the period of 
        fiscal years 2021 through 2029.'';
                    (E) in paragraph (4) (as so redesignated)--
                            (i) by striking ``The amount under 
                        paragraph (1)'' and inserting the following:
                    ``(A) San juan wells and wells in the little 
                colorado and rio grande basins.--The amount under 
                paragraphs (1) and (2)''; and
                            (ii) by adding at the end the following:
                    ``(B) City of gallup wells.--The amount under 
                paragraph (3) shall be adjusted by such amounts as may 
                be required by reason of changes since 2021 in 
                construction costs, as indicated by engineering cost 
                indices applicable to the types of construction or 
                rehabilitation involved.'';
                    (F) in paragraph (5) (as so redesignated), by 
                striking ``paragraphs (1) and (2)'' and inserting 
                ``paragraphs (1), (2), and (3)''; and
                    (G) in paragraph (6) (as so redesignated), by 
                striking ``paragraphs (1) and (2)'' and inserting 
                ``paragraphs (1), (2), and (3)''.
    (f) Taxation of Construction, Operation, and Maintenance of Project 
Facilities.--Part III of the Northwestern New Mexico Rural Water 
Projects Act (Public Law 111-11; 123 Stat. 1379) is amended by adding 
at the end the following:

``SEC. 10610. TAXATION OF CONSTRUCTION, OPERATION, AND MAINTENANCE OF 
              PROJECT FACILITIES.

    ``(a) Nation Land.--Any activity constituting the construction, 
operation, or maintenance of Project facilities--
            ``(1) shall, if the activity takes place on land that is 
        held in trust by the United States for the benefit of the 
        Nation, be subject to taxation by the Nation; and
            ``(2) shall not be subject to any fee, tax, assessment, 
        levy, or other charge imposed by any State or political 
        subdivision of a State.
    ``(b) Other Land.--Any activity constituting the construction, 
operation, or maintenance of Project facilities--
            ``(1) shall, if the activity takes place on land other than 
        the land described in subsection (a)(1), be subject to taxation 
        by the State in which the land is located, or by a political 
        subdivision of that State to the extent authorized by the laws 
        of that State; and
            ``(2) shall not be subject to any fee, tax, assessment, 
        levy, or other charge imposed by the Nation.''.

SEC. 4. NAVAJO NATION WATER RIGHTS.

    (a) Agreement.--Section 10701(e)(1)(A) of the Northwestern New 
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1400) is 
amended--
            (1) in clause (ix), by striking ``2024'' and inserting 
        ``2029''; and
            (2) by adding at the end the following:
                            ``(x) Deferred construction fund.--
                                    ``(I) In general.--Not later than 
                                December 31, 2029, the United States 
                                shall make all deposits into the 
                                Deferred Construction Fund in 
                                accordance with section 10602(i)(3).
                                    ``(II) Project deadline.--On 
                                deposit of the amounts into the 
                                Deferred Construction Fund under 
                                subclause (I), even if certain Project 
                                facilities have not yet been 
                                constructed, the Secretary shall be 
                                deemed to have met the deadline 
                                described in clause (ix).''.
    (b) Waivers and Releases.--Section 10703 of the Northwestern New 
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1403) is 
amended--
            (1) in subsection (d)(1)(A), by striking ``2025'' and 
        inserting ``2030''; and
            (2) in subsection (e)(2), in the matter preceding 
        subparagraph (A), by striking ``2025'' and inserting ``2030''.
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