[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3977 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 3977

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 2023

  Ms. Leger Fernandez (for herself and Ms. Stansbury) introduced the 
    following bill; which was referred to the Committee on Natural 
                               Resources

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Navajo-Gallup Water Supply Project 
Amendments Act of 2023''.

SEC. 2. DEFINITIONS.

    Section 10302 of the Northwestern New Mexico Rural Water Projects 
Act (43 U.S.C. 407 note; Public Law 111-11) is amended--
            (1) by striking paragraph (29);
            (2) by redesignating paragraphs (12), (13), (14), (15), 
        (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), 
        (26), (27), (28), and (30) as paragraphs (13), (14), (15), 
        (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), 
        (27), (28), (30), (31), and (32), respectively;
            (3) by inserting after paragraph (11) the following:
            ``(12) Deferred construction fund.--The term `Deferred 
        Construction Fund' means the Navajo Nation's Navajo-Gallup 
        Water Supply Project Deferred Construction Fund established by 
        section 10602(i)(1)(A).'';
            (4) in paragraph (14) (as so redesignated)--
                    (A) in the paragraph heading, by striking ``Draft'' 
                and inserting ``Final environmental'';
                    (B) by striking ``Draft Impact'' and inserting 
                ``Final Environmental'';
                    (C) by striking ``draft environmental'' and 
                inserting ``final environmental''; and
                    (D) by striking ``March 2007'' and inserting ``July 
                6, 2009'';
            (5) in paragraph (19) (as so redesignated), by striking 
        ``Draft'' and inserting ``Final Environmental'';
            (6) by inserting after paragraph (25) (as so redesignated) 
        the following:
            ``(26) Project service area.--The term `Project Service 
        Area' means the area that encompasses the 43 Nation chapters, 
        the southwest portion of the Jicarilla Apache Reservation, and 
        the City that is identified to be served by the Project, as 
        illustrated in figure IV-5 (Drawing No. 1695-406-49) of the 
        Final Environmental Impact Statement.'';
            (7) by inserting after paragraph (28) (as so redesignated) 
        the following:
            ``(29) Settlement trust funds.--The term `Settlement Trust 
        Funds' means--
                    ``(A) the Navajo Nation Water Resources Development 
                Trust Fund established by subsection (a)(1) of section 
                10702;
                    ``(B) the Navajo Nation Operations, Maintenance, 
                and Replacement Trust Fund established under subsection 
                (b)(1) of that section; and
                    ``(C) the Jicarilla Apache Nation Operations, 
                Maintenance, and Replacement Trust Fund established 
                under subsection (c)(2) of that section.''; and
            (8) by adding at the end the following:
            ``(33) Working cost estimate.--The term `Working Cost 
        Estimate' means the Bureau of Reclamation document entitled 
        `NGWSP October 2022 WCE' and dated February 26, 2023, that 
        details the costs totaling $2,138,387,000, at the October 2022 
        price level, of the Project, as configured on that date.''.

SEC. 3. NAVAJO-GALLUP WATER SUPPLY PROJECT.

    (a) Authorization of Navajo-Gallup Water Supply Project.--Section 
10602 of the Northwestern New Mexico Rural Water Projects Act (Public 
Law 111-11; 123 Stat. 1379) is amended--
            (1) in subsection (a)--
                    (A) in the subsection heading, by striking ``In 
                General'' and inserting ``Authorization'';
                    (B) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--The Secretary'';
                    (C) in paragraph (1) (as so designated), by 
                striking ``Draft Impact Statement'' and inserting 
                ``Final Environmental Impact Statement, as further 
                refined in, and including the facilities identified in, 
                the Working Cost Estimate and any subsequent 
                supplemental documents prepared in accordance with the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.).''; and
                    (D) by adding at the end the following:
            ``(2) Additional service areas.--
                    ``(A) Findings.--Congress finds that--
                            ``(i) expanding the Project Service Area 
                        would create opportunities to increase service 
                        for additional Nation Tribal members and would 
                        not increase the cost of the Project beyond 
                        authorization levels described in section 
                        10609(a); and
                            ``(ii) the unit operations and maintenance 
                        costs of the Project would be reduced by adding 
                        more customers to the Project.
                    ``(B) Authorizations for additional project service 
                areas.--
                            ``(i) New mexico.--In addition to 
                        delivering water supply from the Project to the 
                        Nation communities in the San Juan River Basin, 
                        the Nation may expand the Project Service Area 
                        in order to deliver water supply from the 
                        Project to communities of the Nation within the 
                        Rio San Jose Basin, New Mexico.
                            ``(ii) Arizona.--In addition to delivering 
                        water supply from the Project to the Nation 
                        communities of Fort Defiance and Window Rock, 
                        Arizona, and subject to section 10603(c)(1), 
                        the Nation may expand the Project Service Area 
                        in order to deliver water supply from the 
                        Project to the Nation community of Lupton, 
                        Arizona, within the Little Colorado River 
                        Basin, Arizona.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by inserting ``acquire,'' before 
                        ``construct,''; and
                            (ii) by striking ``Draft Impact Statement'' 
                        and inserting ``Final Environmental Impact 
                        Statement, as further refined in, and including 
                        the facilities identified in, the Working Cost 
                        Estimate and any subsequent supplemental 
                        documents prepared in accordance with the 
                        National Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.)'';
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) The water conveyance and storage facilities 
        associated with the San Juan Generating Station (the coal-
        fired, 4-unit electric power plant and ancillary features 
        located by the San Juan Mine near Waterflow, New Mexico), 
        including the diversion dam, the intake structure, the river 
        pumping plant, the pipeline from the river to the reservoir, 
        the dam and associated reservoir, and any associated land, or 
        interest in land, or ancillary features.'';
                    (C) in paragraph (2)(A)--
                            (i) by striking ``River near Kirtland, New 
                        Mexico,'' and inserting ``Generating Station 
                        Reservoir''; and
                            (ii) by inserting ``generally'' before 
                        ``follows United States Highway 491'';
                    (D) in paragraph (3)(A), by inserting ``generally'' 
                before ``follows United States Highway 550''; and
                    (E) in paragraph (5), by inserting ``(including any 
                reservoir facility)'' after ``treatment facility'';
            (3) in subsection (c)--
                    (A) in the subsection heading, by inserting ``and 
                Facilities'' after ``Land'';
                    (B) in paragraph (1), by striking ``any land or 
                interest in land that is'' and inserting ``any land or 
                facilities, or interest in land or facilities, that 
                are''; and
                    (C) by adding at the end the following:
            ``(4) Land to be taken into trust.--
                    ``(A) In general.--On satisfaction of the 
                conditions described in paragraph (7) of the Agreement 
                and after the requirements of sections 10701(e) and 
                10703 are met, the Secretary shall take legal title to 
                the following land and, subject to subparagraph (D), 
                hold that land in trust for the benefit of the Nation:
                            ``(i) Fee land of the Nation, including--
                                    ``(I) the parcels of land on which 
                                the Tohlakai Pumping Plant, Reach 12A 
                                and Reach 12B, are located, including, 
                                in McKinley County, New Mexico--
                                            ``(aa) sec. 5, T. 16 N., R. 
                                        18 W., New Mexico Prime 
                                        Meridian; and
                                            ``(bb) sec. 33, T. 17 N., 
                                        R. 17 W., New Mexico Prime 
                                        Meridian (except lot 9 and the 
                                        NW\1/4\ of lot 4);
                                    ``(II) the parcel of land on which 
                                Reach 12.1 is located, including--
                                            ``(aa) NW\1/4\ and SW\1/4\ 
                                        sec. 5, T. 16 N., R. 18 W.;
                                            ``(bb) N\1/2\ sec. 11, T. 
                                        16 N., R. 19 W.; and
                                            ``(cc) sec. 12, T. 16 N., 
                                        R. 20 W.; and
                                    ``(III) the parcel of land on which 
                                Reach 12.2 is located, including NW\1/
                                4\. sec. 2, T. 16 N., R. 21 W.
                            ``(ii) Public domain land managed by the 
                        Bureau of Land Management, including--
                                    ``(I) the parcel of land on which 
                                the Cutter Lateral Water Treatment 
                                Plant is located, including S\1/2\ sec. 
                                9, T. 25 N., R. 9 W., New Mexico Prime 
                                Meridian; and
                                    ``(II) the parcel of land on which 
                                the Navajo Agricultural Products 
                                Industry turnout is located, including 
                                NW\1/4\ and NE\1/4\ sec. 34, T. 26 N., 
                                R. 9 W., New Mexico Prime Meridian.
                            ``(iii) The land underlying the San Juan 
                        Generating Station (the coal-fired, 4-unit 
                        electric power plant and ancillary features 
                        located by the San Juan Mine near Waterflow, 
                        New Mexico) acquired by the United States, as 
                        described in subsection (b)(1).
                    ``(B) Part of navajo nation.--The land taken into 
                trust under subparagraph (A) shall be part of the 
                Navajo Reservation and administered in accordance with 
                the laws and regulations generally applicable to land 
                held in trust by the United States for the benefit of 
                an Indian Tribe.
                    ``(C) Restrictions.--
                            ``(i) Fee land of the nation.--The fee land 
                        of the Nation taken into trust under 
                        subparagraph (A)(i) shall be subject to valid 
                        existing rights, contracts, and management 
                        agreements, including easements and rights-of-
                        way, unless the holder of the right, contract, 
                        lease, permit, or right-of-way requests an 
                        earlier termination in accordance with existing 
                        law.
                            ``(ii) Public domain land.--
                                    ``(I) In general.--The public 
                                domain land managed by the Bureau of 
                                Land Management taken into trust under 
                                subparagraph (A)(ii) shall be subject 
                                to valid existing rights, contracts, 
                                leases, permits, and rights-of-way, 
                                unless the holder of the right, 
                                contract, lease, permit, or right-of-
                                way requests an earlier termination in 
                                accordance with existing law.
                                    ``(II) BIA assumption of benefits 
                                and obligations.--The Bureau of Indian 
                                Affairs shall--
                                            ``(aa) assume all benefits 
                                        and obligations of the previous 
                                        land management agency under 
                                        the existing rights, contracts, 
                                        leases, permits, or rights-of-
                                        way described in subclause (I); 
                                        and
                                            ``(bb) disburse to the 
                                        Nation any amounts that accrue 
                                        to the United States from those 
                                        rights, contracts, leases, 
                                        permits, or rights-of-ways 
                                        after the date on which the 
                                        land described in clause (ii) 
                                        of subparagraph (A) is taken 
                                        into trust for the benefit of 
                                        the Nation from any sale, 
                                        bonus, royalty, or rental 
                                        relating to that land in the 
                                        same manner as amounts received 
                                        from other land held by the 
                                        Secretary in trust for the 
                                        Nation.
                            ``(iii) Land underlying the san juan 
                        generating station.--
                                    ``(I) In general.--The land 
                                underlying the San Juan Generating 
                                Station (the coal-fired, 4-unit 
                                electric power plant and ancillary 
                                features located by the San Juan Mine 
                                near Waterflow, New Mexico) taken into 
                                trust under subparagraph (A)(iii) shall 
                                be subject to a perpetual easement on 
                                and over all of the land underlying the 
                                San Juan Generating Station reserved to 
                                the United States for use by the Bureau 
                                of Reclamation and its contractors and 
                                assigns--
                                            ``(aa) for ingress and 
                                        egress;
                                            ``(bb) to continue 
                                        construction of the Project; 
                                        and
                                            ``(cc) for operation and 
                                        maintenance of Project 
                                        facilities located on that 
                                        land.
                                    ``(II) Reserved perpetual 
                                easement.--The reserved perpetual 
                                easement described in subclause (I) 
                                shall remain vested in the United 
                                States unless title to the Project 
                                facilities and appropriate interests in 
                                land are conveyed pursuant to 
                                subsection (f).
                    ``(D) Savings clause.--Nothing in this paragraph 
                affects any--
                            ``(i) water right of the Nation in 
                        existence on the day before the date of 
                        enactment of the Navajo-Gallup Water Supply 
                        Project Amendments Act of 2023; and
                            ``(ii) right or claim of the Nation to any 
                        land or interest in land in existence on the 
                        day before the date of enactment of the Navajo-
                        Gallup Water Supply Project Amendments Act of 
                        2023.'';
            (4) in subsection (d)(1)(D), by striking ``Draft'' and 
        inserting ``Final Environmental'';
            (5) in subsection (e)--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Renewable energy and hydroelectric power.--
                    ``(A) Renewable energy.--For any portion of the 
                Project that does not have access to Colorado River 
                Storage Project power, the Secretary may use not more 
                than $6,250,000 of the amounts made available under 
                section 10609(a)(1) to develop renewable energy.
                    ``(B) Hydroelectric power.--Notwithstanding whether 
                a Project facility has access to Colorado River Storage 
                Project power, the Secretary may use not more than 
                $1,250,000 of the $6,250,000 authorized to be used to 
                develop renewable energy under subparagraph (A) to 
                develop hydroelectric power for any Project facility 
                that can use hydraulic head to produce electricity.'';
            (6) in subsection (h)(1), in the matter preceding 
        subparagraph (A), by inserting ``, store,'' after ``treat''; 
        and
            (7) by adding at the end the following:
    ``(i) Deferred Construction of Project Facilities.--
            ``(1) Deferred construction of project facilities.--On 
        mutual agreement between the Nation and the Secretary, and the 
        Jicarilla Apache Nation if the deferred Project facilities 
        benefit the Jicarilla Apache Nation, construction of selected 
        Project facilities may be deferred to save operation and 
        maintenance expenses associated with that construction.
            ``(2) Deferred construction fund.--
                    ``(A) Establishment.--There is established in the 
                Treasury a fund, to be known as the `Navajo Nation's 
                Navajo-Gallup Water Supply Project Deferred 
                Construction Fund', to consist of--
                            ``(i) amounts that correspond to portions 
                        of the Project that have been deferred under 
                        paragraph (1); and
                            ``(ii) any interest or other gains on 
                        amounts referred to in clause (i).
                    ``(B) Use of the deferred construction fund.--The 
                Nation may use amounts in the Deferred Construction 
                Fund--
                            ``(i) to construct Project facilities that 
                        have been deferred under paragraph (1); or
                            ``(ii) to construct alternate facilities 
                        agreed on under subparagraph (C).
                    ``(C) Alternate facilities consistent with the 
                purpose of the project.--On agreement between the 
                Nation and the Secretary, and the Jicarilla Apache 
                Nation if the deferred Project facilities benefit the 
                Jicarilla Apache Nation, and in compliance with all 
                applicable environmental and cultural resource 
                protection laws, facilities other than those previously 
                agreed to be deferred under paragraph (1) may be 
                constructed if those alternate facilities are 
                consistent with the purposes of the Project described 
                in section 10601.
            ``(3) Amounts to be deposited.--Funds allocated from the 
        amounts made available under section 10609(a)(1) to build 
        facilities referred to in paragraph (1) shall be deposited into 
        the Deferred Construction Fund.
            ``(4) Adjustments.--On deposit of amounts into the Deferred 
        Construction Fund under paragraph (3), the adjustments to 
        authorized appropriations under section 10609(a)(2) shall no 
        longer apply to those amounts.
            ``(5) Deadline to construct project facilities.--On deposit 
        of all amounts into the Deferred Construction Fund for 
        construction of Project facilities agreed on under paragraph 
        (1), the Secretary shall be deemed to have met the obligation 
        under section 10701(e)(1)(A)(ix).
            ``(6) Future construction of project facilities.--On 
        agreement between the Nation and the Secretary, and the 
        Jicarilla Apache Nation if the deferred Project facilities 
        benefit the Jicarilla Apache Nation, the Nation shall use 
        amounts deposited into the Deferred Construction Fund to 
        construct--
                    ``(A) Project facilities deferred under paragraph 
                (1); or
                    ``(B) alternate Project facilities described in 
                paragraph (2)(C).''.
    (b) Delivery and Use of Navajo-Gallup Water Supply Project Water.--
Section 10603 of the Northwestern New Mexico Rural Water Projects Act 
(Public Law 111-11; 123 Stat. 1382) is amended--
            (1) in subsection (a)(3)(B)--
                    (A) in clause (i), by inserting ``or, if generated 
                on City-owned facilities, by the City'' after ``the 
                Nation''; and
                    (B) in clause (ii), by inserting ``, except that 
                the City shall retain all revenue from the sale of 
                hydroelectric power that is generated on City-owned 
                facilities'' after ``hydroelectric power''; and
            (2) in subsection (g)(2), by striking ``, except as 
        provided in section 10604(f)''.
    (c) Project Contracts.--Section 10604 of the Northwestern New 
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1388) is 
amended--
            (1) in subsection (a)(4), by striking ``Subject to 
        subsection (f), the'' and inserting ``The'';
            (2) in subsection (b)(3)--
                    (A) in subparagraph (A), by striking ``subparagraph 
                (B)'' and inserting ``subparagraphs (B) and (C)'';
                    (B) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        striking ``Minimum percentage'' and inserting 
                        ``Maximum percentage'';
                            (ii) by striking ``at least 25 percent'' 
                        and inserting ``not more than 25 percent''; and
                            (iii) by striking ``, but shall in no event 
                        exceed 35 percent''; and
                    (C) by adding at the end the following:
                    ``(C) Maximum repayment obligation.--The repayment 
                obligation of the City referred to in subparagraphs (A) 
                and (B) shall not exceed $76,000,000.'';
            (3) in subsection (c)(1)(B), by inserting ``subsection (f) 
        and'' before ``section 10603(g)'';
            (4) in subsection (d)(1), by striking ``Draft'' and 
        inserting ``Final Environmental'';
            (5) in subsection (e), by striking ``Draft'' and inserting 
        ``Final Environmental'';
            (6) by striking subsection (f); and
            (7) by redesignating subsection (g) as subsection (f).
    (d) Authorization of Appropriations.--Section 10609 of the 
Northwestern New Mexico Rural Water Projects Act (Public Law 111-11; 
123 Stat. 1395; 129 Stat. 528) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``$870,000,000 
                for the period of fiscal years 2009 through 2024'' and 
                inserting ``$2,175,000,000 for the period of fiscal 
                years 2009 through 2029'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Adjustments.--
                    ``(A) In general.--The amount under paragraph (1) 
                shall be adjusted by such amounts as may be required--
                            ``(i) by reason of changes since October 
                        2022 in construction cost changes in applicable 
                        regulatory standards, as indicated by 
                        engineering cost indices applicable to the 
                        types of construction involved; and
                            ``(ii) to address construction cost changes 
                        necessary to account for unforeseen market 
                        volatility that may not otherwise be captured 
                        by engineering cost indices described in clause 
                        (i), as determined by the Secretary, including 
                        repricing applicable to the types of 
                        construction and current industry standards 
                        involved.
                    ``(B) Deferred construction fund.--Amounts 
                deposited in the Deferred Construction Fund shall not 
                be adjusted pursuant to this paragraph.''; and
                    (C) in paragraph (4)(B), by striking ``10 years'' 
                and inserting ``15 years''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``$30,000,000, as 
                adjusted under paragraph (3), for the period of fiscal 
                years 2009 through 2019'' and inserting ``$37,500,000, 
                as adjusted under paragraph (4), for the period of 
                fiscal years 2009 through 2032'';
                    (B) in paragraph (2), by striking ``2024'' and 
                inserting ``2032''; and
                    (C) in paragraph (3), by striking ``The amount 
                under paragraph (1)'' and inserting ``The amount under 
                paragraphs (1) and (2)''.
    (e) Taxation of Construction, Operation, and Maintenance of Project 
Facilities.--Part III of the Northwestern New Mexico Rural Water 
Projects Act (Public Law 111-11; 123 Stat. 1379) is amended by adding 
at the end the following:

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

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

SEC. 4. NAVAJO NATION WATER RIGHTS.

    (a) Agreement.--Section 10701(e) of the Northwestern New Mexico 
Rural Water Projects Act (Public Law 111-11; 123 Stat. 1400; 129 Stat. 
528) is amended--
            (1) in paragraph (1)(A)--
                    (A) by striking clause (vii) and inserting the 
                following:
                            ``(vii) Navajo nation water resources 
                        development trust fund.--Not later than 
                        December 31, 2019, the United States shall make 
                        all deposits into the Navajo Nation Water 
                        Resources Development Trust Fund established by 
                        section 10702(a)(1).'';
                    (B) in clause (ix), by striking ``2024'' and 
                inserting ``2029''; and
                    (C) by adding at the end the following:
                            ``(x) Deferred construction fund.--
                                    ``(I) In general.--Not later than 
                                December 31, 2029, the United States 
                                shall make all deposits into the 
                                Deferred Construction Fund in 
                                accordance with section 10602(i)(3).
                                    ``(II) Project deadline.--On 
                                deposit of the amounts into the 
                                Deferred Construction Fund under 
                                subclause (I), even if certain Project 
                                facilities have not yet been 
                                constructed, the Secretary shall be 
                                deemed to have met the deadline 
                                described in clause (ix).''; and
            (2) in paragraph (2)(B)--
                    (A) in clause (i), by striking ``Trust Fund'' and 
                inserting ``Settlement Trust Funds''; and
                    (B) in clause (ii), by striking ``Trust Fund'' and 
                inserting ``Settlement Trust Funds''.
    (b) Settlement Trust Funds.--Section 10702 of the Northwestern New 
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1402) is 
amended to read as follows:

``SEC. 10702. SETTLEMENT TRUST FUNDS.

    ``(a) Navajo Nation Water Resources Development Trust Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        a fund, to be known as the `Navajo Nation Water Resources 
        Development Trust Fund', consisting of--
                    ``(A) such amounts as are appropriated to the 
                Navajo Nation Water Resources Development Trust Fund 
                under paragraph (5); and
                    ``(B) any interest earned on investment of amounts 
                in the Navajo Nation Water Resources Development Trust 
                Fund under paragraph (3).
            ``(2) Use of funds.--The Nation may use amounts in the 
        Navajo Nation Water Resources Development Trust Fund--
                    ``(A) to investigate, construct, operate, maintain, 
                or replace water project facilities, including 
                facilities conveyed to the Nation under this subtitle 
                and facilities owned by the United States for which the 
                Nation is responsible for operation, maintenance, and 
                replacement costs; and
                    ``(B) 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.
            ``(3) Investment.--Beginning on October 1, 2019, the 
        Secretary shall invest amounts in the Navajo Nation Water 
        Resources Development Trust Fund in accordance with subsection 
        (e).
            ``(4) Investment earnings.--Any investment earnings, 
        including interest, credited to amounts held in the Navajo 
        Nation Water Resources Development Trust Fund are authorized to 
        be used in accordance with paragraph (2).
            ``(5) Authorization of appropriations.--There are 
        authorized to be appropriated for deposit in the Navajo Nation 
        Water Resources Development Trust Fund--
                    ``(A) $6,000,000 for each of fiscal years 2010 
                through 2014; and
                    ``(B) $4,000,000 for each of fiscal years 2015 
                through 2019.
            ``(6) Availability.--Any amount authorized to be 
        appropriated to the Navajo Nation Water Resources Development 
        Trust Fund under paragraph (5) 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.
            ``(7) Management.--The Secretary shall manage the Navajo 
        Nation Water Resources Development Trust Fund in accordance 
        with subsection (d).
            ``(8) Conditions for expenditure and withdrawal.--After the 
        funds become available pursuant to paragraph (6), all 
        expenditures and withdrawals by the Nation of funds in the 
        Navajo Nation Water Resources Development Trust Fund must 
        comply with the requirements of subsection (f).
    ``(b) Navajo Nation Operations, Maintenance, and Replacement Trust 
Fund.--
            ``(1) Establishment.--The Secretary shall establish a trust 
        fund to be known as the `Navajo Nation Operations, Maintenance, 
        and Replacement Trust Fund' for the purposes set forth in 
        paragraph (2), to be managed, invested, and distributed by the 
        Secretary, and to remain available until expended, withdrawn, 
        or reverted to the general fund of the Treasury, consisting of 
        the amounts deposited in the trust fund under paragraph (3), 
        together with any interests earned on those amounts under 
        paragraph (4).
            ``(2) Use of funds.--The Nation may use amounts in the 
        Navajo Nation Operations, Maintenance, and Replacement Trust 
        Fund to pay operations, maintenance, and replacement costs of 
        the Project allocable to the Nation under section 10604.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated for deposit in the Navajo Nation 
        Operations, Maintenance, and Replacement Trust Fund 
        $250,000,000.
            ``(4) Investment.--Upon deposit of funding into the Navajo 
        Nation Operations, Maintenance, and Replacement Trust Fund 
        pursuant to paragraph (3), the Secretary shall invest amounts 
        deposited in accordance with subsection (e).
            ``(5) Investment earnings.--Any investment earnings, 
        including interest, credited to amounts held in the Navajo 
        Nation Operations, Maintenance, and Replacement Trust Fund are 
        authorized to be used in accordance with paragraph (2).
            ``(6) Availability.--Any amount authorized to be 
        appropriated to the Navajo Nation Operations, Maintenance, and 
        Replacement Trust Fund under paragraph (3) shall not be 
        available for expenditure or withdrawal until the Nation is 
        responsible for payment of operation, maintenance, and 
        replacement costs as set forth in section 10603(g).
            ``(7) Fluctuation in costs.--
                    ``(A) In general.--The amounts authorized to be 
                appropriated under paragraph (3) shall be increased or 
                decreased, as appropriate, by such amounts as may be 
                justified by reason of ordinary fluctuations in costs 
                occurring after October 2022 as indicated by the Bureau 
                of Reclamation Operation and Maintenance Cost Index.
                    ``(B) Repetition.--The adjustment process under 
                this subparagraph shall be repeated for each subsequent 
                amount appropriated until the amount authorized, as 
                adjusted, has been appropriated.
                    ``(C) Period of indexing.--The period of indexing 
                adjustment under this subparagraph for any increment of 
                funding shall end on the date on which the funds are 
                deposited into the Navajo Nation Operations, 
                Maintenance, and Replacement Trust Fund.
            ``(8) Management.--The Secretary shall manage the Navajo 
        Nation Operations, Maintenance, and Replacement Trust Fund in 
        accordance with subsection (d).
            ``(9) Conditions for expenditure and withdrawal.--All 
        expenditures and withdrawals by the Nation of funds in the 
        Navajo Nation Operations, Maintenance, and Replacement Trust 
        Fund must comply with the requirements of subsection (f).
    ``(c) Jicarilla Apache Nation Operations, Maintenance, and 
Replacement Trust Fund.--
            ``(1) Prerequisite to establishment.--Prior to 
        establishment of the trust fund under paragraph (2), the 
        Secretary shall conduct an Ability to Pay study to determine 
        what operation, maintenance, and replacement costs of that 
        section of the Project serving the Jicarilla Apache Nation are 
        in excess of the ability of the Jicarilla Apache Nation to pay.
            ``(2) Establishment.--Upon completion of the Ability to Pay 
        study as set forth in paragraph (1), the Secretary shall 
        establish a trust fund to be known as the `Jicarilla Apache 
        Nation Operations, Maintenance, and Replacement Trust Fund' for 
        the purposes set forth in paragraph (3), to be managed, 
        invested, and distributed by the Secretary and to remain 
        available until expended, withdrawn, or reverted to the general 
        fund of the Treasury, consisting of the amounts deposited in 
        the trust fund under paragraph (4), together with any interests 
        earned on those amounts under paragraph (5).
            ``(3) Use of funds.--The Jicarilla Apache Nation may use 
        amounts in the Jicarilla Apache Nation Operations, Maintenance, 
        and Replacement Trust Fund to pay operations, maintenance, and 
        replacement costs of the Project allocable to the Jicarilla 
        Nation under section 10604.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated for deposit in the Jicarilla 
        Apache Nation Operations, Maintenance, and Replacement Trust 
        Fund the amounts the Secretary has determined are in excess of 
        the ability of the Jicarilla Apache Nation to pay in the 
        Ability to Pay study required under paragraph (1) up to a 
        maximum of $10,000,000.
            ``(5) Investment.--Upon deposit of funding into the 
        Jicarilla Apache Nation Operations, Maintenance, and 
        Replacement Trust Fund pursuant to paragraph (4), the Secretary 
        shall invest amounts in the fund in accordance with subsection 
        (e).
            ``(6) Investment earnings.--Any investment earnings, 
        including interest, credited to amounts held in the Jicarilla 
        Apache Nation Operations, Maintenance, and Replacement Trust 
        Fund are authorized to be used in accordance with paragraph 
        (3).
            ``(7) Availability.--Any amount authorized to be 
        appropriated to the Jicarilla Apache Nation Operations, 
        Maintenance, and Replacement Trust Fund under paragraph (4) 
        shall not be available for expenditure or withdrawal until the 
        Jicarilla Apache Nation is responsible for payment of 
        operation, maintenance, and replacement costs as set forth in 
        section 10603(g).
            ``(8) Fluctuation in costs.--
                    ``(A) In general.--The amounts authorized to be 
                appropriated under paragraph (4) shall be increased or 
                decreased, as appropriate, by such amounts as may be 
                justified by reason of ordinary fluctuations in costs 
                occurring after October 2022 as indicated by the Bureau 
                of Reclamation Operation and Maintenance Cost Index.
                    ``(B) Repetition.--The adjustment process under 
                this subparagraph shall be repeated for each subsequent 
                amount appropriated until the amount authorized, as 
                adjusted, has been appropriated.
                    ``(C) Period of indexing.--The period of indexing 
                adjustment under this subparagraph for any increment of 
                funding shall end on the date on which the funds are 
                deposited into the Jicarilla Apache Nation Operations, 
                Maintenance, and Replacement Trust Fund.
            ``(9) Management.--The Secretary shall manage the Jicarilla 
        Apache Nation Operations, Maintenance, and Replacement Trust 
        Fund in accordance with subsection (d).
            ``(10) Conditions for expenditure and withdrawal.--All 
        expenditures and withdrawals by the Jicarilla Apache Nation of 
        funds in the Jicarilla Apache Nation Operations, Maintenance, 
        and Replacement Trust Fund must comply with the requirements of 
        subsection (f).
    ``(d) Management.--The Secretary shall manage the Settlement Trust 
Funds, invest amounts in the Settlement Trust Funds pursuant to 
subsection (e), and make amounts available from the Settlement Trust 
Funds for distribution to the Nation and the Jicarilla Apache Nation in 
accordance with the American Indian Trust Fund Management Reform Act of 
1994 (25 U.S.C. 4001 et seq.).
    ``(e) Investment of the Trust Funds.--The Secretary shall invest 
amounts in the Settlement Trust Funds 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.).
    ``(f) Conditions for Expenditures and Withdrawals.--
            ``(1) Tribal management plan.--
                    ``(A) In general.--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 and the 
                Jicarilla Apache Nation may withdraw all or a portion 
                of the amounts in the Settlement Trust Funds.
                    ``(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.), 
                a Tribal management plan shall require that the Nation 
                and Jicarilla Apache Nation only use amounts in the 
                Settlement Trust Funds for the purposes described in 
                subsection (a)(2), (b)(2), or (c)(3), as applicable.
            ``(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 
        Settlement Trust Funds are used in accordance with this 
        subtitle.
            ``(3) No liability.--The Secretary or the Secretary of the 
        Treasury shall not be liable for the expenditure or investment 
        of any amounts withdrawn from the Settlement Trust Funds by the 
        Nation or the Jicarilla Apache Nation.
            ``(4) Expenditure plan.--
                    ``(A) In general.--The Nation and Jicarilla Apache 
                Nation shall submit to the Secretary for approval an 
                expenditure plan for any portion of the amounts in the 
                Settlement Trust Funds made available under this 
                section that the Nation or the Jicarilla Apache Nation 
                does not withdraw under this subsection.
                    ``(B) Description.--An expenditure plan submitted 
                under subparagraph (A) shall describe the manner in 
                which, and the purposes for which, funds of the Nation 
                or the Jicarilla Apache Nation remaining in the 
                Settlement Trust Funds 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 subtitle.
            ``(5) Annual report.--The Nation and Jicarilla Apache 
        Nation shall submit to the Secretary an annual report that 
        describes any expenditures from the Settlement Trust Funds 
        during the year covered by the report.
            ``(6) Limitation.--No portion of the amounts in the 
        Settlement Trust Funds shall be distributed to any Nation or 
        Jicarilla Apache Nation member on a per capita basis.''.
    (c) Waivers and Releases.--Section 10703 of the Northwestern New 
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1403) is 
amended--
            (1) in subsection (d)(1)(A), by striking ``2025'' and 
        inserting ``2030''; and
            (2) in subsection (e)(2), in the matter preceding 
        subparagraph (A), by striking ``2025'' and inserting ``2030''.
                                 <all>