[Congressional Record Volume 153, Number 63 (Thursday, April 19, 2007)]
[Senate]
[Pages S4769-S4777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself and Mr. Domenici):
  S. 1171. 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; to the Committee on 
Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, on behalf of myself and Senator 
Domenici, I am pleased today to introduce a bill which attempts to 
promote good stewardship of our limited water supplies in the San Juan 
River basin in New Mexico. The bill is entitled the ``Northwestern New 
Mexico Rural Water Projects Act''. Within its scope are a number of 
provisions relating to and amending Federal statutes that relate to the 
Bureau of Reclamation and the use of water in the Colorado River basin. 
There are also new authorizations for the Bureau of Reclamation. 
Finally, there are provisions that will resolve the Navajo Nation's 
water rights claims in the San Juan River in New Mexico. This bill is 
critical for New Mexico's future. I look forward to working with my 
colleagues in the Senate to see that it gets enacted into law.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1171

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

     SECTION 1. SHORT TITLE.

       (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.
Sec. 2. Definitions.
Sec. 3. Compliance with environmental laws.

   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--NORTHWESTERN NEW MEXICO RURAL WATER SUPPLY PROJECT

Sec. 301. Purposes.
Sec. 302. Authorization of Northwestern New Mexico Rural Water Supply 
              Project.
Sec. 303. Delivery and use of Northwestern New Mexico Rural Water 
              Supply Project water.
Sec. 304. Project contracts.
Sec. 305. Use of 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. 2. DEFINITIONS.

       In this Act:
       (1) Acre-feet.--The term ``acre-feet'' means acre-feet per 
     year.
       (2) 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.
       (3) 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 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).
       (4) City.--The term ``City'' means the city of Gallup, New 
     Mexico.
       (5) 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).
       (6) 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.
       (7) Depletion.--The term ``depletion'' means the depletion 
     of the flow of the San Juan River stream system in 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.
       (8) Draft impact statement.--The term ``Draft Impact 
     Statement'' means the draft

[[Page S4770]]

     environmental impact statement prepared by the Bureau of 
     Reclamation for the Project dated March 2007.
       (9) Fund.--The term ``Fund'' means the Reclamation Waters 
     Settlements Fund established by section 201(a).
       (10) Hydrologic determination.--The term ``hydrologic 
     determination'' means the draft 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 2006.
       (11) 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.
       (12) 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).
       (13) 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.).
       (14) Navajo nation municipal pipeline.--The term ``Navajo 
     Nation Municipal 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 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).
       (15) Non-navajo irrigation district.--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 State of New Mexico.
       (16) Project.--The term ``Project'' means the Northwestern 
     New Mexico Rural Water Supply Project (commonly known as the 
     ``Navajo-Gallup Pipeline Project'') authorized under section 
     302(a), as substantially described as the preferred 
     alternative in the Draft Impact Statement.
       (17) Project participants.--The term ``Project 
     Participants'' means the City, the Nation, and the Jicarilla 
     Apache Nation.
       (18) Resolution.--The term ``Resolution'' means the 
     Resolution of the Upper Colorado River Commission entitled 
     ``Use and Accounting of Upper Basin Water Supplied to the 
     Lower Basin in New Mexico by the Proposed Project'' and dated 
     June 17, 2003.
       (19) San juan river recovery implementation program.--The 
     term ``San Juan River Recovery Implementation Program'' means 
     the intergovernmental program established pursuant to the 
     cooperative agreement dated October 21, 1992 (including any 
     amendments to the program).
       (20) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Commissioner of 
     Reclamation or any other designee.
       (21) 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).
       (22) 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.).

   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 Northwestern New Mexico Rural 
     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; 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; and
       ``(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 releases required under the San Juan River 
     Recovery Implementation Program.
       ``(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 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 be more than 15 percent of the average diversion 
     determined under paragraph (1).
       ``(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) The generation of hydroelectric power as an incident 
     to the diversion of water by the Navajo Indian Irrigation 
     Project for authorized purposes.
       ``(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 
     the Northwestern New Mexico Rural Water Projects Act; and
       ``(3) any other applicable law.
       ``(e)(1) The Secretary may use the capacity of the Navajo 
     Indian Irrigation Project works to convey water supplies 
     for--
       ``(A) the Northwestern New Mexico Rural Water Supply 
     Project under section 302 of the Northwestern New Mexico 
     Rural Water Projects Act; or
       ``(B) other nonirrigation purposes authorized under 
     subsection (c) or (d).

[[Page S4771]]

       ``(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 under paragraph (1).''.
       (b) Runoff Above Navajo Dam.--Section 11 of Public Law 87-
     483 (76 Stat. 100) is amended by adding at the end the 
     following:
       ``(d)(1) For purposes of implementing in a year of 
     prospective shortage the water allocation procedures 
     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 the demand for delivery 
     for uses in the State of Arizona under the Northwestern New 
     Mexico Rural Water Supply Project authorized by section 
     302(a) of 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.
       ``(3) If the State of New Mexico determines that water uses 
     under Navajo Reservoir water supply contracts or diversions 
     by the San Juan-Chama Project need to be reduced in any 1 
     year for the State to comply with the Upper Colorado River 
     Basin Compact, as consented to by the Act of April 6, 1949 
     (63 Stat. 31, chapter 48), the Secretary shall reduce the 
     normal diversion requirements for the year to reflect the 
     water use or diversion limitations imposed by the State of 
     New Mexico.
       ``(e)(1) If the Secretary determines that there is a 
     shortage of water under subsection (a), the Secretary shall 
     allocate the shortage to the demands on the Navajo Reservoir 
     water supply in the following order of priority:
       ``(A) The demand for delivery for uses in the State of 
     Arizona under the Northwestern New Mexico Rural 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 
     allocates 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 apply the sharing 
     and apportionment of water determined under subsections (a), 
     (d), and (e) on an annual volume basis.
       ``(g) The Secretary of the Interior may revise a 
     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 Secretary from 
     reallocating water for any year, including a year in which a 
     shortage is determined under subsection (a), in accordance 
     with cooperative water agreements between water users 
     providing for a sharing of water supplies.
       ``(i) Any water available for diversion under New Mexico 
     State Engineer File No. 3215 shall be distributed, to the 
     maximum extent practicable, in proportionate amounts to the 
     diversion demands of all contractors and subcontractors of 
     the Navajo Reservoir water supply that are diverting water 
     below Navajo Dam.''.

     SEC. 103. EFFECT ON FEDERAL WATER LAW.

       Unless expressly provided in this Act, nothing in this Act 
     modifies, conflicts with, preempts, or otherwise 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 2018 through 
     2028, the Secretary of the Treasury shall deposit in the 
     Fund, if available, $100,000,000 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.--For each of fiscal years 2018 through 
     2030, on request by the Secretary pursuant to paragraphs (2) 
     and (3), the Secretary of the Treasury shall transfer from 
     the Fund to the Secretary an amount not to exceed 
     $100,000,000 for the fiscal year requested.
       (2) Requests.--The Secretary may request a transfer from 
     the Fund to implement a settlement agreement approved by 
     Congress that resolves, in whole or in part, litigation 
     involving the United States or any other agreement approved 
     by Congress that is entered into by the Secretary, if the 
     settlement or other agreement requires the Bureau of 
     Reclamation to 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 a reclamation project that is in existence on the date of 
     enactment of this Act.
       (3) Use for completion of project.--
       (A) Priorities.--
       (i) First priority.--The first priority for expenditure of 
     amounts in the Fund shall be for the purposes described in 
     subparagraph (B).
       (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.--Effective beginning January 1, 
     2018, if, in the judgment of the Secretary, the deadline 
     described in section 401(f)(1)(A)(ix) is unlikely to be met 
     because a sufficient amount of funding is not otherwise 
     available through appropriations made available pursuant to 
     section 309(a), the Secretary shall request the Secretary of 
     the Treasury to transfer from the Fund to the Secretary such 
     amounts on an annual basis pursuant to paragraph (1), not to 
     exceed a total of $500,000,000, 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.
       (C) Prohibited use of fund.--The Secretary shall not use 
     any amount transferred from the Fund under subparagraph (A) 
     to carry out any other feature or activity described in title 
     IV other than a feature or activity relating to the 
     construction of the water supply infrastructure authorized as 
     part of the Project.
       (d) Investment of Amounts.--
       (1) In general.--The Secretary of the Treasury shall invest 
     such portion of the Fund as is not, in the judgment of the 
     Secretary of the Treasury, required to meet current 
     withdrawals.
       (2) Interest-bearing obligations.--Investments may be made 
     only in interest-bearing obligations of the United States.
       (3) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       (A) on original issue at the issue price; or

[[Page S4772]]

       (B) by purchase of outstanding obligations at the market 
     price.
       (4) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (5) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any 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, 2030--
       (1) the Fund shall terminate; and
       (2) the unexpended and unobligated balance of the Fund 
     shall be transferred to the general fund of the Treasury.

     TITLE III--NORTHWESTERN NEW MEXICO RURAL WATER SUPPLY PROJECT

     SEC. 301. PURPOSES.

       The purposes of this subtitle are--
       (1) to authorize the Secretary to construct the 
     Northwestern New Mexico Rural Water Supply Project;
       (2) to allocate the water supply for the Project among the 
     Nation, the city of Gallup, New Mexico, and the Jicarilla 
     Apache Nation; and
       (3) to authorize the Secretary to enter into Project 
     repayment contracts with the city of Gallup and the Jicarilla 
     Apache Nation.

     SEC. 302. AUTHORIZATION OF NORTHWESTERN NEW MEXICO RURAL 
                   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 to 
     connect Project facilities to existing high-voltage 
     transmission facilities.
       (c) 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 to construct, operate, and maintain the Project 
     facilities authorized under subsection (b).
       (2) Limitation.--The Secretary may not condemn water rights 
     for purposes of the Project.
       (d) Conditions.--
       (1) In general.--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 State of New Mexico has made arrangements with the 
     Secretary to contribute $25,000,000 toward the construction 
     costs of the Project.
       (2) Cost sharing.--State contributions required under 
     paragraph (1)(D) shall be in addition to amounts that the 
     State of New Mexico contributes for the planning and 
     construction of regional facilities to distribute Project 
     water to the City and surrounding Nation communities before 
     the date on which the City executes a repayment contract 
     under section 304(b).
       (3) Effect.--The design and construction of the Project 
     shall not be subject to the Indian Self-Determination and 
     Education Assistance Act (25 U.S.C. 450 et seq.).
       (e) Power Issues.--
       (1) Reservation.--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.
       (2) Reallocation of costs.--Notwithstanding the Act of 
     April 11, 1956 (commonly known as the ``Colorado River 
     Storage Project Act'') (43 U.S.C. 620 et seq.), the Secretary 
     shall not reallocate or reassign any cost associated with the 
     Project from an entity covered by this title to the power 
     function.
       (f) Conveyance of Project Facilities.--
       (1) In general.--The Secretary is authorized to enter into 
     separate agreements with the City and the Nation to convey 
     each Project facility authorized under subsection (b) to the 
     City and the Nation after--
       (A) completion of construction of the Project; and
       (B) execution of a Project operations agreement approved by 
     the Secretary and the Project Participants that sets forth--
       (i) any terms and conditions that the Secretary determines 
     are necessary--

       (I) to ensure the continuation of the intended benefits of 
     the Project; and
       (II) to fulfill the purposes of this subtitle;

       (ii) requirements acceptable to the Secretary and the 
     Project Participants for--

       (I) the distribution of water under the Project; and
       (II) the allocation and payment of annual operation, 
     maintenance, and replacement costs of the Project based on 
     the proportionate uses of Project facilities; and

       (iii) conditions and requirements acceptable to the 
     Secretary and the Project Participants for operating and 
     maintaining each Project facility on completion of the 
     conveyance, including the requirement that the City and the 
     Nation shall--

       (I) comply with--

       (aa) the Compact; and
       (bb) other applicable law; and

       (II) be responsible for--

       (aa) the operation, 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) Conveyance to the city of gallup or navajo nation.--In 
     conveying a Project facility under this subsection, the 
     Secretary shall convey to--
       (A) the City the facilities and any land or interest in 
     land acquired by the United States for the construction, 
     operation, and maintenance of the Project that are located 
     within the corporate boundaries of the City; and
       (B) the Nation the facilities and any land or interests in 
     land acquired by the United States for the construction, 
     operation, and maintenance of the Project that are located 
     outside the corporate boundaries of the City.
       (3) Effect of conveyance.--The conveyance of 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.
       (4) Notice of proposed conveyance.--Not later than 45 days 
     before the date of a proposed conveyance of 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 a fee established by the Secretary to 
     assist in the recovery of any capital cost relating 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 NORTHWESTERN NEW MEXICO RURAL 
                   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.

[[Page S4773]]

       (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.--Hydroelectric power may be 
     generated as an incident to the delivery of Project water 
     under paragraph (1).
       (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.--The Project shall divert from the Navajo 
     Reservoir and the San Juan River a quantity of water that 
     does not exceed 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) Allocation.--
       (A) In general.--Water diverted under paragraph (1) shall 
     be allocated to the Project Participants in accordance with 
     subparagraphs (B) through (E), other provisions of this Act, 
     and other applicable law.
       (B) Allocation to the city of gallup.--The Project shall 
     deliver at the point of diversion from the San Juan River not 
     more than 7,500 acre-feet of water for use by the City.
       (C) Allocation to navajo nation communities in new 
     mexico.--For use by the Nation in the State of New Mexico, 
     the Project shall deliver at the points of diversion from the 
     San Juan River or at Navajo Reservoir 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) Allocation to navajo nation communities in arizona.--In 
     accordance with subsection (d), the Project may deliver at 
     the point of diversion from the San Juan River not more than 
     6,411 acre-feet of water for use by the Nation in the State 
     of Arizona.
       (E) Allocation to jicarilla apache nation.--The Project 
     shall deliver at Navajo Reservoir not more than 1,200 acre-
     feet of water 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 allocation quantity.--Notwithstanding 
     each allocation quantity limit described in subparagraphs 
     (B), (C), and (E) of paragraph (2), the Secretary may 
     authorize a Project Participant to exceed the allocation 
     quantity limit of that Project Participant if--
       (A) capacity is available without impairing any water 
     delivery to any other Project Participant; and
       (B) the Project Participant benefitting from the increased 
     allocation quantity--
       (i) has the right to use the additional water;
       (ii) agrees to pay the operation, maintenance, and 
     replacement costs relating to the additional use any Project 
     facility; and
       (iii) agrees to pay a fee established by the Secretary to 
     assist in recovering capital costs relating to that 
     additional use.
       (c) Sources of Water.--The sources of water for the Project 
     allocated by subsection (b) shall be water originating in--
       (1) drainage of the San Juan River above Navajo Dam, to be 
     supplied under New Mexico State Engineer File No. 2849; and
       (2) inflow to the San Juan River arising below Navajo Dam, 
     to be supplied under New Mexico State Engineer File No. 3215.
       (d) Conditions for Use in Arizona.--
       (1) Requirements.--Project water shall not be delivered for 
     use by any community of the Nation in the State of Arizona 
     under subsection (b)(2)(D) until the date on which--
       (A) the Secretary determines by hydrologic investigation 
     that sufficient water is reasonably likely to be available to 
     supply uses from water of the Colorado River system allocated 
     to the State of Arizona;
       (B) the Secretary submits to Congress the determination 
     described in subparagraph (A);
       (C) the Secretary determines that the uses in the State of 
     Arizona are within the apportionment of the water of the 
     Colorado River made to the State of Arizona through compact, 
     statute, or court decree;
       (D) Congress has approved a Navajo Reservoir supply 
     contract between the Nation and the United States to provide 
     for the delivery of Project water for the uses in Arizona;
       (E) the Navajo Nation and the State of Arizona have entered 
     into an agreement providing for delivery of water of the 
     Project for uses in Arizona; and
       (F) any other determination is made as may be required by 
     the Compact.
       (2) Accounting of uses in arizona.--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.
       (e) 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 relating 
     to accounting and water quantity described in subsection 
     (d)(2).
       (f) 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 (e).
       (g) Consistency With Upper Colorado River Basin Compact.--
     In accordance with the Resolution and 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 in the Lower 
     Colorado River Basin in the State of New Mexico; and
       (2) water diverted under paragraph (1) shall be a part of 
     the consumptive use apportionment made to the State of New 
     Mexico by Article III(a) of the Compact.

     SEC. 304. PROJECT CONTRACTS.

       (a) Navajo Nation Contract.--
       (1) Hydrologic determination.--Congress recognizes that the 
     Hydrologic Determination satisfactory 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 incorporates by reference 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) No repayment obligation.--The Nation is not obligated 
     to repay--
       (A) any share of the construction costs of the Nation 
     relating to the Project authorized by section 302(a); or
       (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.
       (4) Operation, maintenance, and replacement obligation.--
     Subject to subsection (f), 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.--To the extent 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 any 
     construction cost of the City relating to the Project; and
       (B) to pay the operation, maintenance, and replacement 
     costs of the Project that are allocable to the City.
       (2) Share of construction costs.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     shall determine the share of the construction costs of the 
     City relating to the Project, based on the ability of the 
     City to pay the construction costs of each facility of the 
     Project that is allocable to the City.
       (B) Minimum percentage.--The share of the construction 
     costs of the City shall be at least 25 percent of the 
     construction costs of the Project that are allocable to the 
     City.
       (3) Excess construction costs.--Any construction costs of 
     the Project allocable to

[[Page S4774]]

     providing capacity to deliver water to the City that are in 
     excess of the share of the City of the construction costs of 
     the Project, as determined under paragraph (2), shall be 
     nonreimbursable.
       (4) 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.
       (5) 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.
       (6) Operation, maintenance and replacement obligation.--The 
     City shall pay the operation, maintenance, and replacement 
     costs for each facility of the Project that is allocable to 
     the City.
       (7) Water delivery subcontract.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall not enter into a contract under paragraph 
     (1) with the City until the City has secured a water supply 
     for the portion of the Project for which the City is 
     responsible 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, but 
     for a period not exceeding 99 years, with--
       (i) the Nation, as authorized by the Contract; or
       (ii) 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).
       (B) Effect.--Nothing in this paragraph--
       (i) prevents the City from obtaining an alternate source of 
     water for the portion of the Project for which the City is 
     responsible, 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; or
       (ii) obligates the Nation or the Jicarilla Apache Nation to 
     enter into a water delivery subcontract with the City.
       (c) Jicarilla Apache Nation Contract.--
       (1) Contract authorization.--To the extent 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; and
       (B) to pay the operation, maintenance, and replacement 
     costs of the Project that are allocable to the Jicarilla 
     Apache Nation.
       (2) Share of construction costs.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     shall determine the share of the Jicarilla Apache Nation of 
     the construction costs of the Project, based on the ability 
     of the Jicarilla Apache Nation to pay the construction costs 
     of the Project facilities that are allocable to the Jicarilla 
     Apache Nation.
       (B) Minimum percentage.--The share of the Jicarilla Apache 
     Nation under subparagraph (A) shall be at least 25 percent of 
     the construction costs of the Project that are allocable to 
     the Jicarilla Apache Nation.
       (3) Excess construction costs.--Any construction costs of 
     the Project allocable to providing capacity to deliver water 
     to the Jicarilla Apache Nation that are in excess of the 
     share of the Jicarilla Apache Nation of the construction 
     costs of the Project, as determined under paragraph (2), 
     shall be nonreimbursable.
       (4) Grant funds.--A grant from any other Federal source 
     shall not be credited toward the share of the Jicarilla 
     Apache Nation of construction costs.
       (5) 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.
       (6) Operation, maintenance and replacement obligation.--The 
     Jicarilla Apache Nation shall pay the operation, maintenance, 
     and replacement costs relating to each facility of the 
     Project that are allocable to the Jicarilla Apache Nation.
       (d) Capital Cost Allocations.--For purposes of determining 
     the capital repayment requirements of the Project 
     Participants under this section, the Secretary shall review 
     and, as appropriate, update the report prepared by the Bureau 
     of Reclamation in the Draft Impact Statement allocating 
     capital construction costs for the Project.
       (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 report prepared by the Bureau 
     of Reclamation in 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 Project is 
     substantially complete and the Nation receives a delivery of 
     water generated by the Project, the Secretary may waive, for 
     a period of not more than 10 years, the operation, 
     maintenance, and replacement costs of the Project allocable 
     to the Nation that the Secretary determines are in excess of 
     the ability of the Nation to pay.
       (2) Payment by united states.--Any operation, maintenance, 
     or replacement costs waived by the Secretary under paragraph 
     (1) shall be paid by the United States.
       (3) 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 (2) shall 
     not alter the obligations of the Nation or the United States 
     under a repayment contract.
       (4) 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.

     SEC. 305. USE OF NAVAJO NATION MUNICIPAL 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 water for other purposes (including purposes relating 
     to the Project).

     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.--The Secretary shall enter into an 
     agreement with the Nation to convey to the Nation--
       (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.--On completion 
     of a conveyance under paragraph (1), the Nation shall assume 
     responsibility for the operation, maintenance, and 
     replacement of the well or related pipeline facility 
     conveyed.
       (3) Effect of conveyance.--The conveyance 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.

[[Page S4775]]

       (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.--
     Upon the date of completion of the rehabilitation, the Nation 
     shall assume the obligations 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.
       (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 Northwestern New 
     Mexico Rural Water Supply Project.--
       (1) In general.--There is authorized to be appropriated to 
     the Secretary to construct the Project such sums as are 
     necessary for the period of fiscal years 2008 through 2022.
       (2) Adjustments.--The amount under paragraph (1) shall be 
     adjusted by such amounts as may be required by reason of 
     changes since 2005 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.
       (b) Appropriations for Conjunctive Use Wells.--
       (1) San juan wells.--There is authorized to be appropriated 
     to the Secretary for the construction or rehabilitation of 
     conjunctive use wells under section 306(b) $30,000,000, as 
     adjusted under paragraph (3), for the period of fiscal years 
     2008 through 2018.
       (2) Wells in the little colorado and rio grande basins.--
     There is authorized to be appropriated to the Secretary for 
     the construction or rehabilitation of conjunctive use wells 
     under section 306(c) such sums as are necessary for the 
     period of fiscal years 2008 through 2024.
       (3) Adjustments.--The amount under paragraph (1) shall be 
     adjusted by such amounts as may be required by reason of 
     changes since 2004 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.
       (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 2008 through 2014; 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 2008 through 2017.
       (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 2008 through 2017.
       (e) Cultural Resources.--
       (1) In general.--The Secretary may use not more than 4 
     percent of amounts made available under subsections (a) and 
     (b) 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 and 
     nonreturnable to the United States.
       (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) and (b) 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 and 
     nonreturnable to the United States.

                  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 incorporates by reference 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, acting on 
     behalf of the United States, 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 releases of stored water from 
     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-feet/  (acre-feet/
                                                   year)        year)
------------------------------------------------------------------------
Navajo Indian Irrigation Project                    508,000      270,000
Northwestern New Mexico Rural Water Supply           22,650       20,780
 Project
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, the Resolution, 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

[[Page S4776]]

       (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.
       (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) 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).
       (4) 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) Hydrographic Survey.--
       (1) Preparation.--The Secretary, on behalf of the United 
     States, shall prepare a hydrographic survey under the joint 
     supervision of the Secretary and the State of New Mexico 
     (acting through the New Mexico State Engineer) to identify 
     and quantify any historic or existing diversion or use of 
     water (including from surface water and underground water 
     sources) by the Nation or a member of the Nation from the San 
     Juan River Basin in the State of New Mexico, as described in 
     subparagraph 4.2 of the Agreement.
       (2) Authorization of appropriations.--
       (A) In general.--Subject to subparagraph (B), there is 
     authorized to be appropriated to the Bureau of Indian Affairs 
     to carry out paragraph (1) $5,000,000 for the period of 
     fiscal years 2008 through 2013.
       (B) Adjustment.--The amounts made available under 
     subparagraph (A) shall be adjusted by such amounts as are 
     necessary to account for increases in the costs of preparing 
     a hydrographic survey after January 1, 2004, as determined 
     using cost indices applicable to the types of technical and 
     engineering work involved in preparing the hydrographic 
     survey.
       (C) Nonreimbursable expenditures.--Any amounts made 
     available under this paragraph shall be nonreimbursable to 
     the United States.
       (f) 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, 2008, 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) Hydrographic survey.--Not later than December 31, 
     2013, the Secretary shall complete the hydrographic survey 
     described in subsection (e).
       (v) Fruitland-cambridge irrigation project.--Not later than 
     December 31, 2014, the rehabilitation construction of the 
     Fruitland-Cambridge Irrigation Project authorized under 
     section 307(a)(1) shall be completed.
       (vi) 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.
       (vii) Hogback-cudei irrigation project.--Not later than 
     December 31, 2017, the rehabilitation construction of the 
     Hogback-Cudei Irrigation Project authorized under section 
     307(a)(2) shall be completed.
       (viii) Trust fund.--Not later than December 31, 2018, the 
     United States shall make all deposits into the Trust Fund 
     under section 402.
       (ix) Conjunctive wells.--Not later than December 31, 2018, 
     the funds authorized to be appropriated under section 
     309(b)(1) for the conjunctive use wells authorized under 
     section 306(b) should be appropriated.
       (x) Northwestern new mexico rural water supply project.--
     Not later than December 31, 2022, 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.

       (4) Rights of the nation.--A tribal right under the 
     Contract, a water right adjudicated consistent with the 
     Contract in the stream adjudication by the Partial Final 
     Decree described in paragraph 3.0 of the Agreement, and any 
     other tribal water right stipulated, adjudicated, or decreed 
     as described in the Agreement and this Act shall be held in

[[Page S4777]]

     trust by the United States in perpetuity for the benefit of 
     the Nation.
       (g) 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
       (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, 2018; and
       (B) until the date on which the court in the stream 
     adjudication has entered--
       (i) the Partial Final Decree described in paragraph 3.0 of 
     the Agreement; and
       (ii) the Supplemental Partial Final Decree described in 
     paragraph 4.0 of the Agreement.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated for deposit in the Trust Fund--
       (1) $6,000,000 for each of fiscal years 2008 through 2012; 
     and
       (2) $4,000,000 for each of fiscal years 2013 through 2017.

     SEC. 403. WAIVERS AND RELEASES.

       (a) Execution.--The Nation, on behalf of itself and members 
     of the Nation (other than members in their capacity as 
     allottees), and the United States, acting through the 
     Secretary and in its capacity as trustee for the Nation, 
     shall execute waivers and releases in accordance with 
     paragraph 7.0 of the Agreement.
       (b) Reservation.--Notwithstanding subsection (a), the 
     Nation and its members (including members in their capacity 
     as allottees) and the United States, as trustee for the 
     Nation and allottees, shall retain the rights and claims 
     specified in paragraph 7.0 of the Agreement.
       (c) 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(f)(1) have been met.
       (2) Deadline.--If the deadlines in section 401(f)(1)(A) 
     have not been met by the later of March 1, 2023, or the date 
     of any extension under section 401(f)(1)(B)--
       (A) the waivers and releases described in subsection (a) 
     shall be of no effect; and
       (B) section 401(f)(2)(B) shall apply.
                                 ______