[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 925 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 925

 To amend the Colorado River Storage Project Act and Public Law 87-483 
       to authorize the construction and rehabilitation of water 
infrastructure in Northwestern New Mexico, to authorize the use of the 
  reclamation fund to fund the Reclamation Water Settlements Fund, to 
       authorize the conveyance of certain Reclamation land and 
infrastructure, to authorize the Commissioner of Reclamation to provide 
           for the delivery of water, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2009

  Mr. Lujan introduced the following bill; which was referred to the 
                     Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Colorado River Storage Project Act and Public Law 87-483 
       to authorize the construction and rehabilitation of water 
infrastructure in Northwestern New Mexico, to authorize the use of the 
  reclamation fund to fund the Reclamation Water Settlements Fund, to 
       authorize the conveyance of certain Reclamation land and 
infrastructure, to authorize the Commissioner of Reclamation to provide 
           for the delivery of water, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Northwestern New 
Mexico Rural Water Projects Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Compliance with environmental laws.
Sec. 4. No reallocation of costs.
Sec. 5. Interest rate.
   TITLE I--AMENDMENTS TO THE COLORADO RIVER STORAGE PROJECT ACT AND 
                           PUBLIC LAW 87-483

Sec. 101. Amendments to the Colorado River Storage Project Act.
Sec. 102. Amendments to Public Law 87-483.
Sec. 103. Effect on Federal water law.
              TITLE II--RECLAMATION WATER SETTLEMENTS FUND

Sec. 201. Reclamation Water Settlements Fund.
             TITLE III--NAVAJO-GALLUP WATER SUPPLY PROJECT

Sec. 301. Purposes.
Sec. 302. Authorization of Navajo-Gallup Water Supply Project.
Sec. 303. Delivery and use of Navajo-Gallup Water Supply Project water.
Sec. 304. Project contracts.
Sec. 305. Navajo Nation Municipal Pipeline.
Sec. 306. Authorization of conjunctive use wells.
Sec. 307. San Juan River Navajo Irrigation Projects.
Sec. 308. Other irrigation projects.
Sec. 309. Authorization of appropriations.
                  TITLE IV--NAVAJO NATION WATER RIGHTS

Sec. 401. Agreement.
Sec. 402. Trust Fund.
Sec. 403. Waivers and releases.
Sec. 404. Water rights held in trust.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Aamodt adjudication.--The term ``Aamodt adjudication'' 
        means the general stream adjudication that is the subject of 
        the civil action entitled ``State of New Mexico, ex rel. State 
        Engineer and United States of America, Pueblo de Nambe, Pueblo 
        de Pojoaque, Pueblo de San Ildefonso, and Pueblo de Tesuque v. 
        R. Lee Aamodt, et al.'', No. 66 CV 6639 MV/LCS (D.N.M.).
            (2) Abeyta adjudication.--The term ``Abeyta adjudication'' 
        means the general stream adjudication that is the subject of 
        the civil actions entitled ``State of New Mexico v. Abeyta and 
        State of New Mexico v. Arrellano'', Civil Nos. 7896-BB (D.N.M.) 
        and 7939-BB (D.N.M.) (consolidated).
            (3) Acre-feet.--The term ``acre-feet'' means acre-feet per 
        year.
            (4) Agreement.--The term ``Agreement'' means the agreement 
        among the State of New Mexico, the Nation, and the United 
        States setting forth a stipulated and binding agreement signed 
        by the State of New Mexico and the Nation on April 19, 2005.
            (5) Allottee.--The ``allottee'' means a person that holds a 
        beneficial real property interest in a Navajo allotment that--
                    (A) is located within the Navajo Reservation or the 
                State of New Mexico;
                    (B) is held in trust by the United States; and
                    (C) was originally granted to an individual member 
                of the Nation by public land order or otherwise.
            (6) Animas-la plata project.--The term ``Animas-La Plata 
        Project'' has the meaning given the term in section 3 of Public 
        Law 100-585 (102 Stat. 2973), including Ridges Basin Dam, Lake 
        Nighthorse, the Navajo Nation Municipal Pipeline, and any other 
        features or modifications made pursuant to the Colorado Ute 
        Settlement Act Amendments of 2000 (Public Law 106-554; 114 
        Stat. 2763A-258).
            (7) City.--The term ``City'' means the city of Gallup, New 
        Mexico, or a designee of the City, with authority to provide 
        water to the Gallup, New Mexico service area.
            (8) Compact.--The term ``Compact'' means the Upper Colorado 
        River Basin Compact as consented to by the Act of April 6, 1949 
        (63 Stat. 31, chapter 48).
            (9) Contract.--The term ``Contract'' means the contract 
        between the United States and the Nation setting forth certain 
        commitments, rights, and obligations of the United States and 
        the Nation, as described in paragraph 6.0 of the Agreement.
            (10) Depletion.--The term ``depletion'' means the depletion 
        of the flow of the San Juan River stream system in the State of 
        New Mexico by a particular use of water (including any 
        depletion incident to the use) and represents the diversion 
        from the stream system by the use, less return flows to the 
        stream system from the use.
            (11) Draft impact statement.--The term ``Draft Impact 
        Statement'' means the draft environmental impact statement 
        prepared by the Bureau of Reclamation for the Project dated 
        March 2007.
            (12) Fund.--The term ``Fund'' means the Reclamation Waters 
        Settlements Fund established by section 201(a).
            (13) Hydrologic determination.--The term ``hydrologic 
        determination'' means the hydrologic determination entitled 
        ``Water Availability from Navajo Reservoir and the Upper 
        Colorado River Basin for Use in New Mexico'', prepared by the 
        Bureau of Reclamation pursuant to section 11 of the Act of June 
        13, 1962 (Public Law 87-483; 76 Stat. 99), and dated May 23, 
        2007.
            (14) Nation.--The term ``Nation'' means the Navajo Nation, 
        a body politic and federally recognized Indian nation as 
        provided for in section 101(2) of the Federally Recognized 
        Indian Tribe List of 1994 (25 U.S.C. 497a(2)), also known 
        variously as the ``Navajo Tribe'', the ``Navajo Tribe of 
        Arizona, New Mexico & Utah'', and the ``Navajo Tribe of 
        Indians'' and other similar names, and includes all bands of 
        Navajo Indians and chapters of the Navajo Nation.
            (15) Navajo-gallup water supply project; project.--The term 
        ``Navajo-Gallup Water Supply Project'' or ``Project'' means the 
        Navajo-Gallup Water Supply Project authorized under section 
        302(a), as described as the preferred alternative in the Draft 
        Impact Statement.
            (16) Navajo indian irrigation project.--The term ``Navajo 
        Indian Irrigation Project'' means the Navajo Indian irrigation 
        project authorized by section 2 of Public Law 87-483 (76 Stat. 
        96).
            (17) Navajo reservoir.--The term ``Navajo Reservoir'' means 
        the reservoir created by the impoundment of the San Juan River 
        at Navajo Dam, as authorized by the Act of April 11, 1956 
        (commonly known as the ``Colorado River Storage Project Act'') 
        (43 U.S.C. 620 et seq.).
            (18) Navajo nation municipal pipeline; pipeline.--The term 
        ``Navajo Nation Municipal Pipeline'' or ``Pipeline'' means the 
        pipeline used to convey the water of the Animas-La Plata 
        Project of the Navajo Nation from the City of Farmington, New 
        Mexico, to communities of the Navajo Nation located in close 
        proximity to the San Juan River Valley in the State of New 
        Mexico (including the City of Shiprock), as authorized by 
        section 15(b) of the Colorado Ute Indian Water Rights 
        Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2973; 114 
        Stat. 2763A-263).
            (19) Non-navajo irrigation districts.--The term ``Non-
        Navajo Irrigation Districts'' means--
                    (A) the Hammond Conservancy District;
                    (B) the Bloomfield Irrigation District; and
                    (C) any other community ditch organization in the 
                San Juan River basin in the State of New Mexico.
            (20) Partial final decree.--The term ``Partial Final 
        Decree'' means a final and binding judgement and decree entered 
        by a court in the stream adjudication, setting forth the rights 
        of the Nation to use and administer waters of the San Juan 
        River Basin in New Mexico, as set forth in appendix 1 of the 
        Agreement.
            (21) Project participants.--The term ``Project 
        Participants'' means the City, the Nation, and the Jicarilla 
        Apache Nation.
            (22) San juan river basin recovery implementation 
        program.--The term ``San Juan River Basin Recovery 
        Implementation Program'' means the intergovernmental program 
        established pursuant to the cooperative agreement dated October 
        21, 1992 (including any amendments to the program).
            (23) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Commissioner of Reclamation 
        or any other designee.
            (24) Stream adjudication.--The term ``stream adjudication'' 
        means the general stream adjudication that is the subject of 
        New Mexico v. United States, et al., No. 75-185 (11th Jud. 
        Dist., San Juan County, New Mexico) (involving claims to waters 
        of the San Juan River and the tributaries of that river).
            (25) Supplemental partial final decree.--The term 
        ``Supplemental Partial Final Decree'' means a final and binding 
        judgement and decree entered by a court in the stream 
        adjudication, setting forth certain water rights of the Nation, 
        as set forth in appendix 2 of the Agreement.
            (26) Trust fund.--The term ``Trust Fund'' means the Navajo 
        Nation Water Resources Development Trust Fund established by 
        section 402(a).

SEC. 3. COMPLIANCE WITH ENVIRONMENTAL LAWS.

    (a) Effect of Execution of Agreement.--The execution of the 
Agreement under section 401(a)(2) shall not constitute a major Federal 
action under the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.).
    (b) Compliance With Environmental Laws.--In carrying out this Act, 
the Secretary shall comply with each law of the Federal Government 
relating to the protection of the environment, including--
            (1) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.); and
            (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).

SEC. 4. NO REALLOCATION OF COSTS.

    (a) Effect of Act.--Notwithstanding any other provision of law, the 
Secretary shall not reallocate or reassign any costs of projects that 
have been authorized under the Act of April 11, 1956 (commonly known as 
the ``Colorado River Storage Project Act'') (43 U.S.C. 620 et seq.), as 
of the date of enactment of this Act because of--
            (1) the authorization of the Navajo-Gallup Water Supply 
        Project under this Act; or
            (2) the changes in the uses of the water diverted by the 
        Navajo Indian Irrigation Project or the waters stored in the 
        Navajo Reservoir authorized under this Act.
    (b) Use of Power Revenues.--Notwithstanding any other provision of 
law, no power revenues under the Act of April 11, 1956 (commonly known 
as the ``Colorado River Storage Project Act'') (43 U.S.C. 620 et seq.), 
shall be used to pay or reimburse any costs of the Navajo Indian 
Irrigation Project or Navajo-Gallup Water Supply Project.

SEC. 5. INTEREST RATE.

    Notwithstanding any other provision of law, the interest rate 
applicable to any repayment contract entered into under section 304 
shall be equal to the discount rate for Federal water resources 
planning, as determined by the Secretary.

   TITLE I--AMENDMENTS TO THE COLORADO RIVER STORAGE PROJECT ACT AND 
                           PUBLIC LAW 87-483

SEC. 101. AMENDMENTS TO THE COLORADO RIVER STORAGE PROJECT ACT.

    (a) Participating Projects.--Paragraph (2) of the first section of 
the Act of April 11, 1956 (commonly known as the ``Colorado River 
Storage Project Act'') (43 U.S.C. 620(2)) is amended by inserting ``the 
Navajo-Gallup Water Supply Project,'' after ``Fruitland Mesa,''.
    (b) Navajo Reservoir Water Bank.--The Act of April 11, 1956 
(commonly known as the ``Colorado River Storage Project Act'') is 
amended--
            (1) by redesignating section 16 (43 U.S.C. 620o) as section 
        17; and
            (2) by inserting after section 15 (43 U.S.C. 620n) the 
        following:
    ``Sec. 16. (a) The Secretary of the Interior may create and operate 
within the available capacity of Navajo Reservoir a top water bank.
    ``(b) Water made available for the top water bank in accordance 
with subsections (c) and (d) shall not be subject to section 11 of 
Public Law 87-483 (76 Stat. 99).
    ``(c) The top water bank authorized under subsection (a) shall be 
operated in a manner that--
            ``(1) is consistent with applicable law, except that, 
        notwithstanding any other provision of law, water for purposes 
        other than irrigation may be stored in the Navajo Reservoir 
        pursuant to the rules governing the top water bank established 
        under this section; and
            ``(2) does not impair the ability of the Secretary of the 
        Interior to deliver water under contracts entered into under--
                    ``(A) Public Law 87-483 (76 Stat. 96); and
                    ``(B) New Mexico State Engineer File Nos. 2847, 
                2848, 2849, and 2917.
    ``(d)(1) The Secretary of the Interior, in cooperation with the 
State of New Mexico (acting through the Interstate Stream Commission), 
shall develop any terms and procedures for the storage, accounting, and 
release of water in the top water bank that are necessary to comply 
with subsection (c).
    ``(2) The terms and procedures developed under paragraph (1) shall 
include provisions requiring that--
            ``(A) the storage of banked water shall be subject to 
        approval under State law by the New Mexico State Engineer to 
        ensure that impairment of any existing water right does not 
        occur, including storage of water under New Mexico State 
        Engineer File No. 2849;
            ``(B) water in the top water bank be subject to evaporation 
        and other losses during storage;
            ``(C) water in the top water bank be released for delivery 
        to the owner or assigns of the banked water on request of the 
        owner, subject to reasonable scheduling requirements for making 
        the release;
            ``(D) water in the top water bank be the first water 
        spilled or released for flood control purposes in anticipation 
        of a spill, on the condition that top water bank water shall 
        not be released or included for purposes of calculating whether 
        a release should occur for purposes of satisfying the flow 
        recommendations of the San Juan River Basin Recovery 
        Implementation Program; and
            ``(E) water eligible for banking in the top water bank 
        shall be water that otherwise would have been diverted and 
        beneficially used in New Mexico that year.
    ``(e) The Secretary of the Interior may charge fees to water users 
that use the top water bank in amounts sufficient to cover the costs 
incurred by the United States in administering the water bank.''.

SEC. 102. AMENDMENTS TO PUBLIC LAW 87-483.

    (a) Navajo Indian Irrigation Project.--Public Law 87-483 (76 Stat. 
96) is amended by striking section 2 and inserting the following:
    ``Sec. 2. (a) In accordance with the Act of April 11, 1956 
(commonly known as the `Colorado River Storage Project Act') (43 U.S.C. 
620 et seq.), the Secretary of the Interior is authorized to construct, 
operate, and maintain the Navajo Indian Irrigation Project to provide 
irrigation water to a service area of not more than 110,630 acres of 
land.
    ``(b)(1) Subject to paragraph (2), the average annual diversion by 
the Navajo Indian Irrigation Project from the Navajo Reservoir over any 
consecutive 10-year period shall be the lesser of--
            ``(A) 508,000 acre-feet per year; or
            ``(B) the quantity of water necessary to supply an average 
        depletion of 270,000 acre-feet per year.
    ``(2) The quantity of water diverted for any 1 year shall not 
exceed the average annual diversion determined under paragraph (1) by 
more than 15 percent.
    ``(c) In addition to being used for irrigation, the water diverted 
by the Navajo Indian Irrigation Project under subsection (b) may be 
used within the area served by Navajo Indian Irrigation Project 
facilities for the following purposes:
            ``(1) Aquaculture purposes, including the rearing of fish 
        in support of the San Juan River Basin Recovery Implementation 
        Program authorized by Public Law 106-392 (114 Stat. 1602).
            ``(2) Domestic, industrial, or commercial purposes relating 
        to agricultural production and processing.
            ``(3)(A) The generation of hydroelectric power as an 
        incident to the diversion of water by the Navajo Indian 
        Irrigation Project for authorized purposes.
            ``(B) Notwithstanding any other provision of law--
                    ``(i) any hydroelectric power generated under this 
                paragraph shall be used or marketed by the Navajo 
                Nation;
                    ``(ii) the Navajo Nation shall retain any revenues 
                from the sale of the hydroelectric power; and
                    ``(iii) the United States shall have no trust 
                obligation to monitor, administer, or account for the 
                revenues received by the Navajo Nation, or the 
                expenditure of the revenues.
            ``(4) The implementation of the alternate water source 
        provisions described in subparagraph 9.2 of the agreement 
        executed under section 401(a)(2) of the Northwestern New Mexico 
        Rural Water Projects Act.
    ``(d) The Navajo Indian Irrigation Project water diverted under 
subsection (b) may be transferred to areas located within or outside 
the area served by Navajo Indian Irrigation Project facilities, and 
within or outside the boundaries of the Navajo Nation, for any 
beneficial use in accordance with--
            ``(1) the agreement executed under section 401(a)(2) of the 
        Northwestern New Mexico Rural Water Projects Act;
            ``(2) the contract executed under section 304(a)(2)(B) of 
        that Act; and
            ``(3) any other applicable law.
    ``(e) The Secretary may use the capacity of the Navajo Indian 
Irrigation Project works to convey water supplies for--
            ``(1) the Navajo-Gallup Water Supply Project under section 
        302 of the Northwestern New Mexico Rural Water Projects Act; or
            ``(2) other nonirrigation purposes authorized under 
        subsection (c) or (d).
    ``(f)(1) Repayment of the costs of construction of the project (as 
authorized in subsection (a)) shall be in accordance with the Act of 
April 11, 1956 (commonly known as the `Colorado River Storage Project 
Act') (43 U.S.C. 620 et seq.), including section 4(d) of that Act.
    ``(2) The Secretary shall not reallocate, or require repayment of, 
construction costs of the Navajo Indian Irrigation Project because of 
the conveyance of water supplies for nonirrigation purposes under 
subsection (e).''.
    (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 established by subsection (a), 
the Secretary of the Interior shall determine the quantity of any 
shortages and the appropriate apportionment of water using the normal 
diversion requirements on the flow of the San Juan River originating 
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 prepared by contractors.
            ``(B) The annual diversion or water delivery demands for 
        the current year anticipated for non-irrigation uses under 
        water delivery contracts, including contracts authorized by the 
        Northwestern New Mexico Rural Water 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 contract from 
        inflows to the San Juan River arising below Navajo Dam under 
        New Mexico State Engineer File No. 3215; or
            ``(B) the quantity of water anticipated to be supplied 
        through reuse.
    ``(e)(1) If the Secretary determines that there is a shortage of 
water under subsection (a), the Secretary shall respond to the shortage 
in the Navajo Reservoir water supply by curtailing releases and 
deliveries in the following order:
            ``(A) The demand for delivery for uses in the State of 
        Arizona under the Navajo-Gallup Water Supply Project authorized 
        by section 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 responds 
to a shortage in the Navajo Reservoir water 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 (commonly known as the `Colorado River Storage Project Act').
    ``(f) The Secretary of the Interior shall apportion water under 
subsections (a), (d), and (e) on an annual volume basis.
    ``(g) The Secretary of the Interior may revise a determination 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 distribution of water 
in accordance with cooperative water agreements between water users 
providing for a sharing of water supplies.
    ``(i) Diversions under New Mexico State Engineer File No. 3215 
shall be distributed, to the maximum extent water is available, in 
proportionate amounts to the diversion demands of 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 affects--
            (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 waters of the Colorado and 
        Tijuana Rivers and of the Rio Grande, signed at Washington 
        February 3, 1944 (59 Stat. 1219);
            (7) the Colorado River Compact of 1922, as approved by the 
        Presidential Proclamation of June 25, 1929 (46 Stat. 3000);
            (8) the Compact;
            (9) the Act of April 6, 1949 (63 Stat. 31, chapter 48);
            (10) the Jicarilla Apache Tribe Water Rights Settlement Act 
        (106 Stat. 2237); or
            (11) section 205 of the Energy and Water Development 
        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.--
            (1) In general.--For each of fiscal years 2009 through 
        2023, the Secretary of the Treasury shall deposit in the Fund, 
        if available, $120,000,000 of the revenues 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 deposited 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 contained in any other provision of 
                law.
    (c) Expenditures From Fund.--
            (1) In general.--
                    (A) Expenditures.--Subject to subparagraph (B), for 
                each of fiscal years 2009 through 2028, the Secretary 
                may expend from the Fund an amount not to exceed 
                $120,000,000, plus the interest accrued in the Fund, 
                for the fiscal year in which expenditures are made 
                pursuant to paragraphs (2) and (3).
                    (B) Additional expenditures.--The Secretary may 
                expend more than $120,000,000 for any fiscal year if 
                such amounts are available in the Fund due to 
                expenditures not reaching $120,000,000 for prior fiscal 
                years.
            (2) Authority.--The Secretary may expend money from the 
        Fund to implement a settlement agreement approved by Congress 
        that resolves, in whole or in part, litigation involving the 
        United States, if the settlement agreement or implementing 
        legislation requires the Bureau of Reclamation to provide 
        financial assistance for, or plan, design, and construct--
                    (A) water supply infrastructure; or
                    (B) a project--
                            (i) to rehabilitate a water delivery system 
                        to conserve water; or
                            (ii) to restore fish and wildlife habitat 
                        or otherwise improve environmental conditions 
                        associated with or affected by, or located 
                        within the same river basin as, a Federal 
                        reclamation project that is in existence on the 
                        date of enactment of this Act.
            (3) Use for completion of project and other settlements.--
                    (A) Priorities.--
                            (i) First priority.--
                                    (I) In general.--The first priority 
                                for expenditure of amounts in the Fund 
                                during the entire period in which the 
                                Fund is in existence shall be for the 
                                purposes described in, and in the order 
                                of, clauses (i) through (iv) of 
                                subparagraph (B).
                                    (II) Reserved amounts.--The 
                                Secretary shall reserve amounts 
                                deposited into the Fund in accordance 
                                with subclause (I).
                            (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) Completion of project.--
                            (i) Navajo-gallup water supply project.--
                                    (I) In general.--Subject to 
                                subclause (II), effective beginning 
                                January 1, 2009, if, in the judgment of 
                                the Secretary on an annual basis 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 section 309(a), the Secretary shall 
                                expend from the Fund such amounts on an 
                                annual basis consistent with paragraphs 
                                (1) and (2), as are necessary to pay 
                                the Federal share of the costs, and 
                                substantially complete as expeditiously 
                                as practicable, the construction of the 
                                water supply infrastructure authorized 
                                as part of the Project.
                                    (II) Maximum amount.--
                                            (aa) In general.--Except as 
                                        provided under item (bb), the 
                                        amount expended under subclause 
                                        (I) shall not exceed 
                                        $500,000,000 for the period of 
                                        fiscal years 2009 through 2018.
                                            (bb) Exception.--The 
                                        limitation on the expenditure 
                                        amount under item (aa) may be 
                                        exceeded during the entire 
                                        period in which the Fund is in 
                                        existence.
                            (ii) Other new mexico settlements.--
                                    (I) In general.--Subject to 
                                subclause (II), effective beginning 
                                January 1, 2009, in addition to the 
                                funding made available under clause 
                                (i), if in the judgment of the 
                                Secretary on an annual basis a 
                                sufficient amount of funding is not 
                                otherwise available through annual 
                                appropriations, the Secretary shall 
                                expend from the Fund such amounts on an 
                                annual basis consistent with paragraphs 
                                (1) and (2), as are necessary to pay 
                                the Federal share of the costs of 
                                implementing the Indian water rights 
                                settlement agreements entered into by 
                                the State of New Mexico in the Aamodt 
                                adjudication and the Abeyta 
                                adjudication, if such settlements are 
                                subsequently approved and authorized by 
                                an Act of Congress.
                                    (II) Maximum amount.--The amount 
                                expended under subclause (I) shall not 
                                exceed $250,000,000.
                            (iii) Montana settlements.--
                                    (I) In general.--Subject to 
                                subclause (II), effective beginning 
                                January 1, 2009, in addition to funding 
                                made available pursuant to clauses (i) 
                                and (ii), if in the judgment of the 
                                Secretary on an annual basis a 
                                sufficient amount of funding is not 
                                otherwise available through annual 
                                appropriations, the Secretary shall 
                                expend from the Fund such amounts on an 
                                annual basis consistent with paragraphs 
                                (1) and (2), as are necessary to pay 
                                the Federal share of the costs of 
                                implementing Indian water rights 
                                settlement agreements entered into by 
                                the State of Montana with the Blackfeet 
                                Tribe, the Crow Tribe, or the Gros 
                                Ventre and Assiniboine Tribes of the 
                                Fort Belknap Indian Reservation in the 
                                judicial proceeding entitled ``In re 
                                the General Adjudication of All the 
                                Rights to Use Surface and Groundwater 
                                in the State of Montana'', if a 
                                settlement or settlements are 
                                subsequently approved and authorized by 
                                an Act of Congress.
                                    (II) Maximum amount.--
                                            (aa) In general.--Except as 
                                        provided under item (bb), the 
                                        amount expended under subclause 
                                        (I) shall not exceed 
                                        $350,000,000 for the period of 
                                        fiscal years 2009 through 2018.
                                            (bb) Exception.--The 
                                        limitation on the expenditure 
                                        amount under item (aa) may be 
                                        exceeded during the entire 
                                        period in which the Fund is in 
                                        existence.
                                            (cc) Other funding.--The 
                                        Secretary shall ensure that any 
                                        such funding shall be provided 
                                        in a manner that does not limit 
                                        the funding available pursuant 
                                        to clauses (i) and (ii).
                            (iv) Arizona settlement.--
                                    (I) In general.--Subject to 
                                subclause (II), effective beginning 
                                January 1, 2009, in addition to funding 
                                made available pursuant to clauses (i), 
                                (ii), and (iii), if in the judgment of 
                                the Secretary on an annual basis a 
                                sufficient amount of funding is not 
                                otherwise available through annual 
                                appropriations, the Secretary shall 
                                expend from the Fund such amounts on an 
                                annual basis consistent with paragraphs 
                                (1) and (2), as are necessary to pay 
                                the Federal share of the costs of 
                                implementing an Indian water rights 
                                settlement agreement entered into by 
                                the State of Arizona with the Navajo 
                                Nation to resolve the water rights 
                                claims of the Nation in the Lower 
                                Colorado River basin in Arizona, if a 
                                settlement is subsequently approved and 
                                authorized by an Act of Congress.
                                    (II) Maximum amount.--
                                            (aa) In general.--Except as 
                                        provided under item (bb), the 
                                        amount expended under subclause 
                                        (I) shall not exceed 
                                        $100,000,000 for the period of 
                                        fiscal years 2009 through 2018.
                                            (bb) Exception.--The 
                                        limitation on the expenditure 
                                        amount under item (aa) may be 
                                        exceeded during the entire 
                                        period in which the Fund is in 
                                        existence.
                                            (cc) Other funding.--The 
                                        Secretary shall ensure that any 
                                        such funding shall be provided 
                                        in a manner that does not limit 
                                        the funding available pursuant 
                                        to clauses (i) and (ii).
                    (C) Reversion.--If the settlements described in 
                clauses (ii) through (iv) of subparagraph (B) have not 
                been approved and authorized by an Act of Congress by 
                December 31, 2014, the amounts reserved for the 
                settlements shall no longer be reserved by the 
                Secretary pursuant to subparagraph (A)(i) and shall 
                revert to the Fund for any authorized use, as 
                determined by the Secretary.
    (d) Investment of Amounts.--
            (1) In general.--The Secretary shall invest such portion of 
        the Fund as is not, in the judgment of the Secretary, required 
        to meet current withdrawals.
            (2) Credits to fund.--The interest on, and the proceeds 
        from the sale or redemption of, any obligations held in the 
        Fund shall be credited to, and form a part of, the Fund.
    (e) Transfers of Amounts.--
            (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 estimates 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, 2028--
            (1) the Fund shall terminate; and
            (2) the unexpended and unobligated balance of the Fund 
        shall be transferred to the appropriate fund of the Treasury.

             TITLE III--NAVAJO-GALLUP WATER SUPPLY PROJECT

SEC. 301. PURPOSES.

    The purposes of this subtitle are--
            (1) to authorize the Secretary to construct, operate, and 
        maintain the Navajo-Gallup Water Supply Project;
            (2) to allocate the capacity of the Project among the 
        Nation, the City, and the Jicarilla Apache Nation; and
            (3) to authorize the Secretary to enter into Project 
        repayment contracts with the City and the Jicarilla Apache 
        Nation.

SEC. 302. AUTHORIZATION OF NAVAJO-GALLUP WATER SUPPLY PROJECT.

    (a) In General.--The Secretary, acting through the Commissioner of 
Reclamation, is authorized to design, construct, operate, and maintain 
the Project in substantial accordance with the preferred alternative in 
the Draft Impact Statement.
    (b) Project Facilities.--To provide for the delivery 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).
            (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 distribution works, or other 
        appurtenant works (including a building or access road) that is 
        related to the Project facilities authorized by paragraphs (1) 
        through (4), including power transmission facilities and 
        associated wheeling services to connect Project facilities to 
        existing high-voltage transmission facilities and deliver power 
        to the Project.
    (c) Acquisition of Land.--
            (1) In general.--The Secretary is authorized to acquire any 
        land or interest in land that is necessary to construct, 
        operate, and maintain the Project facilities authorized under 
        subsection (b).
            (2) Land of the project participants.--As a condition of 
        construction of the facilities authorized under this title, the 
        Project Participants shall provide all land or interest in 
        land, as appropriate, that the Secretary identifies as 
        necessary for acquisition under this subsection at no cost to 
        the Secretary.
            (3) Limitation.--The Secretary may not condemn water rights 
        for purposes of the Project.
    (d) Conditions.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall not commence 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 Secretary has entered into an agreement 
                with the State of New Mexico under which the State of 
                New Mexico will provide a share of the construction 
                costs of the Project of not less than $50,000,000, 
                except that the State of New Mexico shall receive 
                credit for funds the State has contributed to construct 
                water conveyance facilities to the Project Participants 
                to the extent that the facilities reduce the cost of 
                the Project as estimated in the Draft Impact Statement.
            (2) Exception.--If the Jicarilla Apache Nation elects not 
        to enter into a contract pursuant to section 304, the 
        Secretary, after consulting with the Nation, the City, and the 
        State of New Mexico acting through the Interstate Stream 
        Commission, may make appropriate modifications to the scope of 
        the Project and proceed with Project construction if all other 
        conditions for construction have been satisfied.
            (3) Effect of indian self-determination and education 
        assistance act.--The Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450 et seq.) shall not apply to the 
        design, construction, operation, maintenance, or replacement of 
        the Project.
    (e) Power.--The Secretary shall reserve, from existing reservations 
of Colorado River Storage Project power for Bureau of Reclamation 
projects, up to 26 megawatts of power for use by the Project.
    (f) Conveyance of Title to Project Facilities.--
            (1) In general.--The Secretary is authorized to enter into 
        separate agreements with the City and the Nation and, on 
        entering into the agreements, shall convey title to each 
        Project facility or section of a Project facility authorized 
        under subsection (b) (including any appropriate interests in 
        land) to the City and the Nation after--
                    (A) completion of construction of a Project 
                facility or a section of a Project facility that is 
                operating and delivering water; 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;
                            (ii) requirements acceptable to the 
                        Secretary and the Project Participants for--
                                    (I) the distribution of water under 
                                the Project or section of a Project 
                                facility; and
                                    (II) the allocation and payment of 
                                annual operation, maintenance, and 
                                replacement costs of the Project or 
                                section of a Project facility based on 
                                the proportionate uses of Project 
                                facilities; and
                            (iii) conditions and requirements 
                        acceptable to the Secretary and the Project 
                        Participants for operating and maintaining each 
                        Project facility on completion of the 
                        conveyance of title, 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, 
                                        maintenance, and replacement of 
                                        each Project facility; and
                                            (bb) the accounting and 
                                        management of water conveyance 
                                        and Project finances, as 
                                        necessary to administer and 
                                        fulfill the conditions of the 
                                        Contract executed under section 
                                        304(a)(2)(B).
            (2) Effect of conveyance.--The conveyance of title to each 
        Project facility shall not affect the application of the 
        Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) 
        relating to the use of the water associated with the Project.
            (3) Liability.--
                    (A) In general.--Effective on the date of the 
                conveyance 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 section increases 
                the liability of the United States beyond the liability 
                provided in chapter 171 of title 28, United States Code 
                (commonly known as the ``Federal Tort Claims Act'').
            (4) Notice of proposed conveyance.--Not later than 45 days 
        before the date of a proposed conveyance of title to any 
        Project facility, the Secretary shall submit to the Committee 
        on Resources of the House of Representatives and to the 
        Committee on Energy and Natural Resources of the Senate notice 
        of the conveyance of each Project facility.
    (g) Colorado River Storage Project Power.--The conveyance of 
Project facilities under subsection (f) shall not affect the 
availability of Colorado River Storage Project power to the Project 
under subsection (e).
    (h) Regional Use of Project Facilities.--
            (1) In general.--Subject to paragraph (2), Project 
        facilities constructed under subsection (b) may be used to 
        treat and convey non-Project water or water that is not 
        allocated by subsection 303(b) if--
                    (A) capacity is available without impairing any 
                water delivery to a Project Participant; and
                    (B) the unallocated or non-Project water 
                beneficiary--
                            (i) has the right to use the water;
                            (ii) agrees to pay the operation, 
                        maintenance, and replacement costs assignable 
                        to the beneficiary for the use of the Project 
                        facilities; and
                            (iii) agrees to pay an appropriate fee that 
                        may be established by the Secretary to assist 
                        in the recovery of any capital cost allocable 
                        to that use.
            (2) Effect of payments.--Any payments to the United States 
        or the Nation for the use of unused capacity under this 
        subsection or for water under any subcontract with the Nation 
        or the Jicarilla Apache Nation shall not alter the construction 
        repayment requirements or the operation, maintenance, and 
        replacement payment requirements of the Project Participants.

SEC. 303. DELIVERY AND USE OF NAVAJO-GALLUP WATER SUPPLY PROJECT WATER.

    (a) Use of Project Water.--
            (1) In general.--In accordance with this Act and other 
        applicable law, water supply from the Project shall be used for 
        municipal, industrial, commercial, domestic, and stock watering 
        purposes.
            (2) Use on certain land.--
                    (A) In general.--Subject to subparagraph (B), the 
                Nation may use Project water allocations on--
                            (i) land held by the United States in trust 
                        for the Nation and members of the Nation; and
                            (ii) land held in fee by the Nation.
                    (B) Transfer.--The Nation may transfer the purposes 
                and places of use of the allocated water in accordance 
                with the Agreement and applicable law.
            (3) Hydroelectric power.--
                    (A) In general.--Hydroelectric power may be 
                generated as an incident to the delivery of Project 
                water for authorized purposes under paragraph (1).
                    (B) Administration.--Notwithstanding any other 
                provision of law--
                            (i) any hydroelectric power generated under 
                        this paragraph shall be used or marketed by the 
                        Nation;
                            (ii) the Nation shall retain any revenues 
                        from the sale of the hydroelectric power; and
                            (iii) the United States shall have no trust 
                        obligation or other obligation to monitor, 
                        administer, or account for the revenues 
                        received by the Nation, or the expenditure of 
                        the revenues.
            (4) Storage.--
                    (A) In general.--Subject to subparagraph (B), any 
                water contracted for delivery under paragraph (1) that 
                is not needed for current water demands or uses may be 
                delivered by the Project for placement in underground 
                storage in the State of New Mexico for future recovery 
                and use.
                    (B) State approval.--Delivery of water under 
                subparagraph (A) is subject to--
                            (i) approval by the State of New Mexico 
                        under applicable provisions of State law 
                        relating to aquifer storage and recovery; and
                            (ii) the provisions of the Agreement and 
                        this Act.
    (b) Project Water and Capacity Allocations.--
            (1) Diversion.--Subject to availability and consistent with 
        Federal and State law, the Project may divert from the Navajo 
        Reservoir and the San Juan River a quantity of water to be 
        allocated and used consistent with the Agreement and this Act, 
        that does not exceed in any 1 year, the lesser of--
                    (A) 37,760 acre-feet of water; or
                    (B) the quantity of water necessary to supply a 
                depletion from the San Juan River of 35,890 acre-feet.
            (2) Project delivery capacity allocations.--
                    (A) In general.--The capacity of the Project shall 
                be allocated to the Project Participants in accordance 
                with subparagraphs (B) through (E), other provisions of 
                this Act, and other applicable law.
                    (B) Delivery capacity allocation to the city.--The 
                Project may deliver at the point of diversion from the 
                San Juan River not more than 7,500 acre-feet of water 
                in any 1 year for which the City has secured rights for 
                the use of the City.
                    (C) Delivery capacity allocation to navajo nation 
                communities in new mexico.--For use by the Nation in 
                the State of New Mexico, the Project may deliver water 
                out of the water rights held by the Secretary for the 
                Nation and confirmed under this Act, at the points of 
                diversion from the San Juan River or at Navajo 
                Reservoir in any 1 year, the lesser of--
                            (i) 22,650 acre-feet of water; or
                            (ii) the quantity of water necessary to 
                        supply a depletion from the San Juan River of 
                        20,780 acre-feet of water.
                    (D) Delivery capacity allocation to navajo nation 
                communities in arizona.--Subject to subsection (c), the 
                Project may deliver at the point of diversion from the 
                San Juan River not more than 6,411 acre-feet of water 
                in any 1 year for use by the Nation in the State of 
                Arizona.
                    (E) Delivery capacity allocation to jicarilla 
                apache nation.--The Project may deliver at Navajo 
                Reservoir not more than 1,200 acre-feet of water in any 
                1 year of the water rights of the Jicarilla Apache 
                Nation, held by the Secretary and confirmed by the 
                Jicarilla Apache Tribe Water Rights Settlement Act 
                (Public Law 102-441; 106 Stat. 2237), for use by the 
                Jicarilla Apache Nation in the southern portion of the 
                Jicarilla Apache Nation Reservation in the State of New 
                Mexico.
            (3) Use in excess of delivery capacity allocation 
        quantity.--Notwithstanding each delivery capacity allocation 
        quantity limit described in subparagraphs (B), (C), and (E) of 
        paragraph (2), the Secretary may authorize a Project 
        Participant to exceed the delivery capacity allocation quantity 
        limit of that Project Participant if--
                    (A) delivery capacity is available without 
                impairing any water delivery to any other Project 
                Participant; and
                    (B) the Project Participant benefitting from the 
                increased allocation of delivery capacity--
                            (i) has the right under applicable law to 
                        use the additional water;
                            (ii) agrees to pay the operation, 
                        maintenance, and replacement costs relating to 
                        the additional use of any Project facility; and
                            (iii) agrees, if the Project title is held 
                        by the Secretary, to pay a fee established by 
                        the Secretary to assist in recovering capital 
                        costs relating to that additional use.
    (c) Conditions for Use in Arizona.--
            (1) Requirements.--Project water shall not be delivered for 
        use by any community of the Nation located in the State of 
        Arizona under subsection (b)(2)(D) until--
                    (A) the Nation and the State of Arizona have 
                entered into a water rights settlement agreement 
                approved by an Act of Congress that specifies the 
                allocation of Colorado River System water to which the 
                use in Arizona will be charged; and
                    (B) the Secretary has determined by hydrologic 
                investigation that sufficient water is reasonably 
                likely to be available to supply the use in the State 
                of Arizona from water of the Colorado River system 
                allocated to the State.
            (2) Accounting of uses in arizona.--Pursuant to paragraph 
        (1), any depletion of water from the San Juan River stream 
        system in the State of New Mexico that results from the 
        diversion of water by the Project for uses within the State of 
        Arizona (including depletion incidental to the diversion, 
        impounding, or conveyance of water in the State of New Mexico 
        for uses in the State of Arizona)--
                    (A) shall be accounted for as a part of the 
                Colorado River System apportionments to the State of 
                Arizona; and
                    (B) shall not increase the total quantity of water 
                to which the State of Arizona is entitled to use under 
                any compact, statute, or court decree.
    (d) Forbearance.--
            (1) In general.--Subject to paragraphs (2) and (3), during 
        any year in which a shortage to the normal diversion 
        requirement for any use relating to the Project within the 
        State of Arizona occurs (as determined under section 11 of 
        Public Law 87-483 (76 Stat. 99)), the Nation may temporarily 
        forbear the delivery of the water supply of the Navajo 
        Reservoir for uses in the State of New Mexico under the 
        apportionments of water to the Navajo Indian Irrigation Project 
        and the normal diversion requirements of the Project to allow 
        an equivalent quantity of water to be delivered from the Navajo 
        Reservoir water supply for municipal and domestic uses of the 
        Nation in the State of Arizona under the Project.
            (2) Limitation of forbearance.--The Nation may forebear the 
        delivery of water under paragraph (1) of a quantity not 
        exceeding the quantity of the shortage to the normal diversion 
        requirement for any use relating to the Project within the 
        State of Arizona.
            (3) Effect.--The forbearance of the delivery of water under 
        paragraph (1) shall be subject to the requirements in 
        subsection (c).
    (e) Effect.--Nothing in this Act--
            (1) authorizes the marketing, leasing, or transfer of the 
        water supplies made available to the Nation under the Contract 
        to non-Navajo water users in States other than the State of New 
        Mexico; or
            (2) authorizes the forbearance of water uses in the State 
        of New Mexico to allow uses of water in other States other than 
        as authorized under subsection (d).
    (f) Colorado River Compacts.--Notwithstanding any other provision 
of law--
            (1) water may be diverted by the Project from the San Juan 
        River in the State of New Mexico for use within New Mexico in 
        the lower basin, as that term is used in the Colorado River 
        Compact;
            (2) any water diverted under paragraph (1) shall be a part 
        of, and charged against, the consumptive use apportionment made 
        to the State of New Mexico by article III(a) of the Compact and 
        to the upper basin by article III(a) of the Colorado River 
        Compact; and
            (3) any water so diverted by the Project into the lower 
        basin within the State of New Mexico shall not be credited as 
        water reaching Lee Ferry pursuant to articles III(c) and III(d) 
        of the Colorado River Compact.
    (g) Payment of Operation, Maintenance, and Replacement Costs.--
            (1) In general.--The Secretary is authorized to pay the 
        operation, maintenance, and replacement costs of the Project 
        allocable to the Project Participants under section 304 until 
        the date on which the Secretary declares any 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 a Project participant.
            (2) Project participant payments.--Beginning on the date 
        described in paragraph (1), each Project Participant shall pay 
        all allocated operation, maintenance, and replacement costs for 
        that substantially completed section of the Project, in 
        accordance with contracts entered into pursuant to section 304, 
        except as provided in section 304(f).

SEC. 304. 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 Act, Congress approves, ratifies, and 
                        confirms the Contract.
                            (ii) Amendments.--To the extent any 
                        amendment is executed to make the Contract 
                        consistent with this Act, 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 Act (including any amendment that is 
                required to make the Contract consistent with this 
                Act).
            (3) Nonreimbursability of allocated costs.--The following 
        costs shall be nonreimbursable and not subject to repayment 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 
                302(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 community 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 obligation.--
        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 
        rescission.--The Contract may be limited by a term of years, 
        canceled, terminated, or rescinded only by an Act of Congress.
    (b) City of Gallup Contract.--
            (1) Contract authorization.--Consistent with this Act, 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 5; and
                    (B) consistent with section 303(g), to pay the 
                operation, maintenance, and replacement costs of the 
                Project that are allocable to the City.
            (2) Contract prepayment.--
                    (A) In general.--The contract authorized under 
                paragraph (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 initiation 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 obligation 
                established by the Secretary and the City 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 
                Secretary 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 
                subparagraph (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 302(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 303(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 
                Commission and the New Mexico State Engineer.
    (c) Jicarilla Apache Nation Contract.--
            (1) Contract authorization.--Consistent with this Act, 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 5; and
                    (B) consistent with section 303(g), to pay the 
                operation, 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 
                paragraph (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 initiation 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 obligation 
                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 
                Secretary 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 
                subparagraph (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 
        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 determine 
        the repayment obligation of the Project Participants based on 
        the final cost allocation identifying reimbursable and 
        nonreimbursable capital costs of the Project consistent with 
        this Act.
    (e) Operation, Maintenance, and Replacement Cost Allocations.--For 
purposes of determining the operation, maintenance, 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 operation, 
        maintenance, and replacement costs of that section of the 
        Project.
            (3) Payment by united states.--Any operation, maintenance, 
        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 
        Secretary to waive costs under paragraph (1) with respect to a 
        Project facility transferred to the Nation under section 302(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.

SEC. 305. 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 
                conveyance 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 provided 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 
        Natural Resources of the House of Representatives and the 
        Committee on Energy and Natural Resources of the Senate, notice 
        of the conveyance of the Pipeline.

SEC. 306. AUTHORIZATION OF CONJUNCTIVE USE WELLS.

    (a) Conjunctive Groundwater Development Plan.--Not later than 1 
year after the date of enactment of this Act, the Nation, in 
consultation with the Secretary, shall complete a conjunctive 
groundwater development plan for the wells described in subsections (b) 
and (c).
    (b) Wells in the San Juan River Basin.--In accordance with the 
conjunctive groundwater development plan, the Secretary may construct 
or rehabilitate wells and related pipeline facilities to provide 
capacity for the diversion and distribution of not more than 1,670 
acre-feet of groundwater in the San Juan River Basin in the State of 
New Mexico for municipal and domestic uses.
    (c) Wells in the Little Colorado and Rio Grande Basins.--
            (1) In general.--In accordance with the Project and 
        conjunctive groundwater development plan for the Nation, the 
        Secretary may construct or rehabilitate wells and related 
        pipeline facilities to provide capacity for the diversion and 
        distribution of--
                    (A) not more than 680 acre-feet of groundwater in 
                the Little Colorado River Basin in the State of New 
                Mexico;
                    (B) not more than 80 acre-feet of groundwater in 
                the Rio Grande Basin in the State of New Mexico; and
                    (C) not more than 770 acre-feet of groundwater in 
                the Little Colorado River Basin in the State of 
                Arizona.
            (2) Use.--Groundwater diverted and distributed under 
        paragraph (1) shall be used for municipal and domestic uses.
    (d) Acquisition of Land.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary may acquire any land or interest in land that is 
        necessary for the construction, operation, and maintenance of 
        the wells and related pipeline facilities authorized under 
        subsections (b) and (c).
            (2) Limitation.--Nothing in this subsection authorizes the 
        Secretary to condemn water rights for the purposes described in 
        paragraph (1).
    (e) Condition.--The Secretary shall not commence any construction 
activity relating to the wells described in subsections (b) and (c) 
until the Secretary executes the Agreement.
    (f) Conveyance of Wells.--
            (1) In general.--On the determination of the Secretary that 
        the wells and related facilities are substantially complete and 
        delivery of water generated by the wells can be made to the 
        Nation, an agreement with the Nation shall be entered into, to 
        convey to the Nation title to--
                    (A) any well or related pipeline facility 
                constructed or rehabilitated under subsections (a) and 
                (b) after the wells and related facilities have been 
                completed; and
                    (B) any land or interest in land acquired by the 
                United States for the construction, operation, and 
                maintenance of the well or related pipeline facility.
            (2) Operation, maintenance, and replacement.--
                    (A) In general.--The Secretary is authorized to pay 
                operation and maintenance costs for the wells and 
                related pipeline facilities authorized under this 
                subsection until title to the facilities is conveyed to 
                the Nation.
                    (B) Subsequent assumption by nation.--On completion 
                of a conveyance of title under paragraph (1), the 
                Nation shall assume all responsibility for the 
                operation and maintenance of the well or related 
                pipeline facility conveyed.
            (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 treatment 
facilities, main pipelines, and lateral pipelines of the Project 
authorized by section 302(b) may be used to treat and convey 
groundwater to Nation communities if the Nation provides for payment of 
the operation, maintenance, and replacement costs associated 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. 307. 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 Agreement.
    (c) Operation, Maintenance, and Replacement Obligation.--The Nation 
shall continue to be responsible for the operation, maintenance, and 
replacement of each facility rehabilitated under this section.

SEC. 308. 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 
        diversion 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 
        irrigation diversion and ditch facilities to improve water use 
        efficiency.
    (b) Grants.--The Secretary may provide grants to, and enter into 
cooperative agreements with, the Non-Navajo Irrigation Districts 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 paragraph 
        (1) may be in the form of in-kind contributions, including the 
        contribution of any valuable asset or service that the 
        Secretary 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. 309. 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 
        paragraph (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 
                appropriated such sums as are necessary to operate and 
                maintain the Project consistent with this Act.
                    (B) Expiration.--The authorization under 
                subparagraph (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 appropriated 
        to the Secretary for the construction or rehabilitation and 
        operation and maintenance of conjunctive use wells under 
        section 306(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 Secretary for 
        the construction or rehabilitation and operation and 
        maintenance of conjunctive use wells under section 306(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 nonreimbursable to the 
        United States.
            (5) Use.--In addition to the uses authorized under 
        paragraphs (1) and (2), amounts made available under that 
        paragraph may be used for the conduct of related activities to 
        comply with Federal environmental laws.
            (6) Limitation.--Appropriations authorized under paragraph 
        (1) shall not be used for operation or maintenance of 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 307(a)(1), not more than 
                $7,700,000, as adjusted under paragraph (2), for the 
                period of fiscal years 2009 through 2015, to remain 
                available until expended; and
                    (B) to carry out section 307(a)(2), not more than 
                $15,400,000, as adjusted under paragraph (2), for the 
                period of fiscal years 2009 through 2018, 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 rehabilitation.
            (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 308 $11,000,000 for 
the period of fiscal years 2009 through 2018.
    (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 mitigate 
        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.

                  TITLE IV--NAVAJO NATION WATER RIGHTS

SEC. 401. AGREEMENT.

    (a) Agreement Approval.--
            (1) Approval by congress.--Except to the extent that any 
        provision of the Agreement conflicts with this Act, Congress 
        approves, ratifies, and confirms the Agreement (including any 
        amendments to the Agreement that are executed to make the 
        Agreement consistent with this Act).
            (2) Execution by secretary.--The Secretary shall enter into 
        the Agreement to the extent that the Agreement does not 
        conflict with this Act, including--
                    (A) any exhibits to the Agreement requiring the 
                signature of the Secretary; and
                    (B) any amendments to the Agreement necessary to 
                make the Agreement consistent with this Act.
            (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:


 
------------------------------------------------------------------------
                                                    Diversion  Depletion
                                                      (acre-     (acre-
                                                      feet/      feet/
                                                      year)      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 
                diversion and use of water under the Contract shall be 
                subject to and consistent with the terms, conditions, 
                and limitations of the Agreement, this Act, 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--
                    (A) use tail water, wastewater, and return flows 
                attributable to a use of the water by the Nation or a 
                subcontractor of the Nation if--
                            (i) the depletion of water does not exceed 
                        the quantities 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 Act (except for a point of diversion, 
                purpose or place of use, or right for depletion for use 
                in the State of Arizona under section 303(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 consistent with the terms of the Agreement, 
                        the Partial Final Decree described in paragraph 
                        3.0 of the Agreement, 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 
                        Act and the Contract.
    (c) Subcontracts.--
            (1) In general.--
                    (A) Subcontracts between nation and third 
                parties.--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 
                subsection and the Contract.
                    (C) Submittal.--The Nation shall submit to the 
                Secretary for approval or disapproval any subcontract 
                entered into under this subsection.
                    (D) Deadline.--The Secretary shall approve or 
                disapprove 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 Environmental 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.
                    (F) Compliance with other law.--A subcontract 
                described in subparagraph (A) shall comply with the 
                Agreement, the Partial Final Decree described in 
                paragraph 3.0 of the Agreement, and any other 
                applicable law.
                    (G) No liability.--The Secretary shall not be 
                liable to any party, including the Nation, for any term 
                of, or any loss or other detriment resulting from, a 
                lease, contract, or other agreement entered into 
                pursuant to this subsection.
            (2) Alienation.--
                    (A) Permanent alienation.--The Nation shall not 
                permanently alienate any right granted to the Nation 
                under the Contract.
                    (B) Maximum term.--The term of any water use 
                subcontract (including a renewal) under this subsection 
                shall be not more than 99 years.
            (3) Nonintercourse act compliance.--This subsection--
                    (A) provides congressional authorization for the 
                subcontracting rights of the Nation; and
                    (B) is deemed to fulfill any requirement that may 
                be imposed by section 2116 of the Revised Statutes (25 
                U.S.C. 177).
            (4) Forfeiture.--The nonuse of the water supply secured by 
        a subcontractor of 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.
            (5) No per capita payments.--No part of the revenue from a 
        water use subcontract under this subsection shall be 
        distributed to any member of the Nation on a per capita basis.
    (d) Water Leases Not Requiring Subcontracts.--
            (1) Authority of nation.--
                    (A) In general.--The Nation may lease, contract, or 
                otherwise transfer to another party or to another 
                purpose or place of use in the State of New Mexico (on 
                or off land that is held by the United States in trust 
                for the Nation or a member of the Nation or held in fee 
                by the Nation) a water right that--
                            (i) is decreed to the Nation under the 
                        Agreement; and
                            (ii) is not subject to the Contract.
                    (B) Compliance with other law.--In carrying out an 
                action under this subsection, the Nation shall comply 
                with the Agreement, the Partial Final Decree described 
                in paragraph 3.0 of the Agreement, the Supplemental 
                Partial Final Decree described in paragraph 4.0 of the 
                Agreement, and any other applicable law.
            (2) Alienation; maximum term.--
                    (A) Alienation.--The Nation shall not permanently 
                alienate any right granted to the Nation under the 
                Agreement.
                    (B) Maximum term.--The term of any water use lease, 
                contract, or other arrangement (including a renewal) 
                under this subsection shall be not more than 99 years.
            (3) No liability.--The Secretary shall not be liable to any 
        party, including the Nation, for any term of, or any loss 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 
                following deadlines apply with respect to 
                implementation of the Agreement:
                            (i) Agreement.--Not later than December 31, 
                        2009, the Secretary shall execute the 
                        Agreement.
                            (ii) Contract.--Not later than December 31, 
                        2009, the Secretary and the Nation shall 
                        execute the Contract.
                            (iii) Partial final decree.--Not later than 
                        December 31, 2012, the court in the stream 
                        adjudication 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, 2015, the 
                        rehabilitation construction of the Fruitland-
                        Cambridge Irrigation Project authorized under 
                        section 307(a)(1) shall be completed.
                            (v) Supplemental partial final decree.--Not 
                        later than December 31, 2015, the court in the 
                        stream adjudication shall enter the 
                        Supplemental Partial Final Decree described in 
                        subparagraph 4.0 of the Agreement.
                            (vi) Hogback-cudei irrigation project.--Not 
                        later than December 31, 2018, the 
                        rehabilitation construction of the Hogback-
                        Cudei Irrigation Project authorized under 
                        section 307(a)(2) shall be completed.
                            (vii) Trust fund.--Not later than December 
                        31, 2019, the United States shall make all 
                        deposits into the Trust Fund under section 402.
                            (viii) Conjunctive wells.--Not later than 
                        December 31, 2019, the funds authorized to be 
                        appropriated under section 309(b)(1) for the 
                        conjunctive use wells authorized under section 
                        306(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 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 
                deadline described in paragraph (1)(A) is not 
                substantially met, the Nation may submit to the court 
                in the stream adjudication a petition to enter an order 
                terminating the Agreement and Contract.
                    (B) Termination.--On issuance of an order to 
                terminate the Agreement and Contract under subparagraph 
                (A)--
                            (i) the Trust Fund shall be terminated;
                            (ii) the balance of the Trust Fund shall be 
                        deposited in the general fund of the Treasury;
                            (iii) the authorizations for construction 
                        and rehabilitation of water projects under this 
                        Act shall be revoked and any Federal activity 
                        related to that construction and rehabilitation 
                        shall be suspended; and
                            (iv) this title and titles I and III shall 
                        be null and void.
            (3) Conditions not causing nullification of settlement.--
                    (A) In general.--If a condition described in 
                subparagraph (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 306.
                            (ii) A failure--
                                    (I) to determine or resolve an 
                                accounting of the use of water under 
                                this Act 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 
        quantifies 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.

SEC. 402. TRUST FUND.

    (a) Establishment.--There is established in the Treasury a fund to 
be known as the ``Navajo Nation Water Resources Development 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 Act and facilities owned by the United 
        States for which the Nation is responsible for operation, 
        maintenance, and replacement costs; and
            (2) to investigate, implement, or improve a water 
        conservation measure (including a metering or monitoring 
        activity) necessary 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, 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.--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 
                conservation 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 Act.
            (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.--
                    (A) In general.--The Nation shall submit to the 
                Secretary 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 Act.
            (5) Annual report.--The Nation shall submit to the 
        Secretary 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 appropriated 
        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 2009 through 2013; 
        and
            (2) $4,000,000 for each of fiscal years 2014 through 2018.

SEC. 403. WAIVERS AND RELEASES.

    (a) Claims by the Nation and the United States.--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 
through the Secretary and in the capacity of the United States as 
trustee for the Nation, shall each 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 the San Juan River 
        adjudication or in any other court proceeding;
            (2) all claims that the Nation, or the United States as 
        trustee for the Nation, has asserted or could assert for any 
        damage, loss, or injury to water rights or claims of 
        interference, diversion, or taking of water in the San Juan 
        Basin in the State of New Mexico that, regardless of whether 
        the damage, loss, or injury is unanticipated, unexpected, or 
        unknown--
                    (A) accrued at any time before or on the effective 
                date of the waiver and release under subsection (d); 
                and
                    (B) may or may not be more numerous or more serious 
                than is understood or expected; and
            (3) all claims of any damage, loss, or injury or for 
        injunctive or other relief because of the condition of or 
        changes in water quality related to, or arising out of, the 
        exercise of water rights.
    (b) Claims by the Nation Against the United States.--The Nation, on 
behalf of itself and its members (other than members in the capacity of 
the members as allottees), shall execute a waiver and release of--
            (1) all causes of action that the Nation or the members of 
        the Nation (other than members in the capacity of the members 
        as allottees) may have against the United States or any 
        agencies or employees of the United States, arising out of 
        claims for water rights in, or waters of, the San Juan River 
        Basin in the State of New Mexico that the United States 
        asserted, or could have asserted, in the stream adjudication or 
        other court proceeding;
            (2) all claims for any damage, loss, or injury to water 
        rights, claims of interference, diversion or taking of water, 
        or failure to protect, acquire, or develop water or water 
        rights for land within the San Juan Basin in the State of New 
        Mexico that, regardless whether the damage, loss, or injury is 
        unanticipated, unexpected, or unknown--
                    (A) accrued at any time before or on the effective 
                date of the waiver and release under subsection (d); 
                and
                    (B) may or may not be more numerous or more serious 
                than is understood or expected; and
            (3) all claims arising out of, resulting from, or relating 
        in any manner to the negotiation, execution or adoption of the 
        Agreement, the Contract, or this Act (including any specific 
        terms and provisions of the Agreement, the Contract, or this 
        Act) that the Nation may have against the United States or any 
        agencies or employees of the United States.
    (c) Reservation of Claims.--Notwithstanding subsections (a) and 
(b), the Nation and the members of the Nation (including members in the 
capacity of the members as allottees) and the United States, as trustee 
for the Nation and allottees, shall retain--
            (1) all claims for water rights or injuries to water rights 
        arising out of activities occurring outside the San Juan River 
        Basin in the State of New Mexico, subject to paragraphs 8.0, 
        9.3, 9.12, 9.13, and 13.9 of the Agreement;
            (2) all claims for enforcement of the Agreement, the 
        Contract, the Partial Final Decree, the Supplemental Partial 
        Final Decree, or this Act, through any legal and equitable 
        remedies available in any court of competent jurisdiction;
            (3) all rights to use and protect water rights acquired 
        pursuant to State law after the effective date of the waivers 
        and releases described in subsection (d);
            (4) all claims relating to activities affecting the quality 
        of water not related to the exercise of water rights; and
            (5) all rights, remedies, privileges, immunities, and 
        powers not specifically waived and released under the terms of 
        the Agreement or this Act.
    (d) Effective Date.--
            (1) In general.--The waivers and releases described in 
        subsection (a) shall be effective on the date on which the 
        Secretary publishes in the Federal Register a statement of 
        findings documenting that each of the deadlines described in 
        section 401(e)(1) have been met.
            (2) Deadline.--If the deadlines in section 401(e)(1)(A) 
        have not been met by the later of March 1, 2025, or the date of 
        any extension under section 401(e)(1)(B)--
                    (A) the waivers and releases described in 
                subsection (a) shall be of no effect; and
                    (B) section 401(e)(2)(B) shall apply.

SEC. 404. WATER RIGHTS HELD IN TRUST.

    A tribal water right adjudicated and described in paragraph 3.0 of 
the Partial Final Decree and in paragraph 3.0 of the Supplemental 
Partial Final Decree shall be held in trust by the United States on 
behalf of the Nation.
                                 <all>