[Congressional Record (Bound Edition), Volume 150 (2004), Part 17]
[Senate]
[Pages 23775-23804]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     ARIZONA WATER SETTLEMENTS ACT

  Mr. HAYWORTH. Mr. Speaker, I move to suspend the rules and pass the 
Senate bill (S. 437) to provide for adjustments to the Central Arizona 
Project in Arizona, to authorize the Gila River Indian Community water 
rights settlement, to reauthorize and amend the Southern Arizona Water 
Rights Settlement Act of 1982, and for other purposes.
  The Clerk read as follows:

                                 S. 437

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Arbitration.
Sec. 4. Antideficiency.

              TITLE I--CENTRAL ARIZONA PROJECT SETTLEMENT

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. General permissible uses of the Central Arizona Project.
Sec. 104. Allocation of Central Arizona Project water.
Sec. 105. Firming of Central Arizona Project Indian water.
Sec. 106. Acquisition of agricultural priority water.
Sec. 107. Lower Colorado River Basin Development Fund.
Sec. 108. Effect.
Sec. 109. Repeal.
Sec. 110. Authorization of appropriations.
Sec. 111. Repeal on failure of enforceability date under title II.

     TITLE II--GILA RIVER INDIAN COMMUNITY WATER RIGHTS SETTLEMENT

Sec. 201. Short title.
Sec. 202. Purposes.
Sec. 203. Approval of the Gila River Indian Community Water Rights 
              Settlement Agreement.
Sec. 204. Water rights.
Sec. 205. Community water delivery contract amendments.
Sec. 206. Satisfaction of claims.
Sec. 207. Waiver and release of claims.
Sec. 208. Gila River Indian Community Water OM&R Trust Fund.
Sec. 209. Subsidence remediation program.
Sec. 210. After-acquired trust land.
Sec. 211. Reduction of water rights.
Sec. 212. New Mexico Unit of the Central Arizona Project.
Sec. 213. Miscellaneous provisions.
Sec. 214. Authorization of appropriations.
Sec. 215. Repeal on failure of enforceability date.

          TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

Sec. 301. Southern Arizona water rights settlement.
Sec. 302. Southern Arizona water rights settlement effective date.

       TITLE IV--SAN CARLOS APACHE TRIBE WATER RIGHTS SETTLEMENT

Sec. 401. Effect of titles I, II, and III.
Sec. 402. Annual report. 
Sec. 403. Authorization of appropriations.

     SEC. 2. DEFINITIONS.

       In titles I and II:
       (1) Acre-feet.--The term ``acre-feet'' means acre-feet per 
     year.
       (2) After-acquired trust land.--The term ``after-acquired 
     trust land'' means land that--
       (A) is located--
       (i) within the State; but
       (ii) outside the exterior boundaries of the Reservation; 
     and
       (B) is taken into trust by the United States for the 
     benefit of the Community after the enforceability date.
       (3) Agricultural priority water.--The term ``agricultural 
     priority water'' means Central Arizona Project non-Indian 
     agricultural priority water, as defined in the Gila River 
     agreement.
       (4) Allottee.--The term ``allottee'' means a person who 
     holds a beneficial real property interest in an Indian 
     allotment that is--
       (A) located within the Reservation; and
       (B) held in trust by the United States.
       (5) Arizona indian tribe.--The term ``Arizona Indian 
     tribe'' means an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)) that is located in the State.
       (6) Asarco.--The term ``Asarco'' means Asarco Incorporated, 
     a New Jersey corporation of that name, and its subsidiaries 
     operating mining operations in the State.
       (7) CAP contractor.--The term ``CAP contractor'' means a 
     person or entity that has entered into a long-term contract 
     (as that term is used in the repayment stipulation) with the 
     United States for delivery of water through the CAP system.
       (8) CAP operating agency.--The term ``CAP operating 
     agency'' means the entity or entities authorized to assume 
     responsibility for the care, operation, maintenance, and 
     replacement of the CAP system.
       (9) CAP repayment contract.--
       (A) In general.--The term ``CAP repayment contract'' means 
     the contract dated December 1, 1988 (Contract No. 14-0906-
     09W-09245, Amendment No. 1) between the United States and the 
     Central Arizona Water Conservation District for the delivery 
     of water and the repayment of costs of the Central Arizona 
     Project.
       (B) Inclusions.--The term ``CAP repayment contract'' 
     includes all amendments to and revisions of that contract.
       (10) CAP subcontractor.--The term ``CAP subcontractor'' 
     means a person or entity that has entered into a long-term 
     subcontract (as that term is used in the repayment 
     stipulation) with the United States and the Central Arizona 
     Water Conservation District for the delivery of water through 
     the CAP system.
       (11) CAP system.--The term ``CAP system'' means--
       (A) the Mark Wilmer Pumping Plant;
       (B) the Hayden-Rhodes Aqueduct;
       (C) the Fannin-McFarland Aqueduct;
       (D) the Tucson Aqueduct;
       (E) the pumping plants and appurtenant works of the Central 
     Arizona Project aqueduct system that are associated with the 
     features described in subparagraphs (A) through (D); and
       (F) any extensions of, additions to, or replacements for 
     the features described in subparagraphs (A) through (E).
       (12) Central arizona project.--The term ``Central Arizona 
     Project'' means the reclamation project authorized and 
     constructed by the United States in accordance with title III 
     of the Colorado River Basin Project Act (43 U.S.C. 1521 et 
     seq.).
       (13) Central arizona water conservation district.--The term 
     ``Central Arizona Water Conservation District'' means the 
     political subdivision of the State that is the contractor 
     under the CAP repayment contract.
       (14) Cities.--The term ``Cities'' means the cities of 
     Chandler, Glendale, Goodyear, Mesa, Peoria, Phoenix, and 
     Scottsdale, Arizona.
       (15) Community.--The term ``Community'' means the Gila 
     River Indian Community, a

[[Page 23776]]

     government composed of members of the Pima Tribe and the 
     Maricopa Tribe and organized under section 16 of the Act of 
     June 18, 1934 (25 U.S.C. 476).
       (16) Community cap water.--The term ``Community CAP water'' 
     means water to which the Community is entitled under the 
     Community water delivery contract.
       (17) Community repayment contract.--
       (A) In general.--The term ``Community repayment contract'' 
     means Contract No. 6-0907-0903-09W0345 between the United 
     States and the Community dated July 20, 1998, providing for 
     the construction of water delivery facilities on the 
     Reservation.
       (B) Inclusions.--The term ``Community repayment contract'' 
     includes any amendments to the contract described in 
     subparagraph (A).
       (18) Community water delivery contract.--
       (A) In general.--The term ``Community water delivery 
     contract'' means Contract No. 3-0907-0930-09W0284 between the 
     Community and the United States dated October 22, 1992.
       (B) Inclusions.--The term ``Community water delivery 
     contract'' includes any amendments to the contract described 
     in subparagraph (A).
       (19) CRR project works.--
       (A) In general.--The term ``CRR project works'' means the 
     portions of the San Carlos Irrigation Project located on the 
     Reservation.
       (B) Inclusion.--The term ``CRR Project works'' includes the 
     portion of the San Carlos Irrigation Project known as the 
     ``Southside Canal'', from the point at which the Southside 
     Canal connects with the Pima Canal to the boundary of the 
     Reservation.
       (20) Director.--The term ``Director'' means--
       (A) the Director of the Arizona Department of Water 
     Resources; or
       (B) with respect to an action to be carried out under this 
     title, a State official or agency designated by the Governor 
     or the State legislature.
       (21) Enforceability date.--The term ``enforceability date'' 
     means the date on which the Secretary publishes in the 
     Federal Register the statement of findings described in 
     section 207(c).
       (22) Fee land.--The term ``fee land'' means land, other 
     than off-Reservation trust land, owned by the Community 
     outside the exterior boundaries of the Reservation as of 
     December 31, 2002.
       (23) Fixed om&r charge.--The term ``fixed OM&R charge'' has 
     the meaning given the term in the repayment stipulation.
       (24) Franklin irrigation district.--The term ``Franklin 
     Irrigation District'' means the entity of that name that is a 
     political subdivision of the State and organized under the 
     laws of the State.
       (25) Gila river adjudication proceedings.--The term ``Gila 
     River adjudication proceedings'' means the action pending in 
     the Superior Court of the State of Arizona in and for the 
     County of Maricopa styled ``In Re the General Adjudication of 
     All Rights To Use Water In The Gila River System and Source'' 
     W-091 (Salt), W-092 (Verde), W-093 (Upper Gila), W-094 (San 
     Pedro) (Consolidated).
       (26) Gila river agreement.--
       (A) In general.--The term ``Gila River agreement'' means 
     the agreement entitled the ``Gila River Indian Community 
     Water Rights Settlement Agreement'', dated February 4, 2003.
       (B) Inclusions.--The term ``Gila River agreement'' 
     includes--
       (i) all exhibits to that agreement (including the New 
     Mexico Risk Allocation Agreement, which is also an exhibit to 
     the UVD Agreement); and
       (ii) any amendment to that agreement or to an exhibit to 
     that agreement made or added pursuant to that agreement 
     consistent with section 203(a) or as approved by the 
     Secretary.
       (27) Gila valley irrigation district.--The term ``Gila 
     Valley Irrigation District'' means the entity of that name 
     that is a political subdivision of the State and organized 
     under the laws of the State.
       (28) Globe equity decree.--
       (A) In general.--The term ``Globe Equity Decree'' means the 
     decree dated June 29, 1935, entered in United States of 
     America v. Gila Valley Irrigation District, Globe Equity No. 
     59, et al., by the United States District Court for the 
     District of Arizona.
       (B) Inclusions.--The term ``Globe Equity Decree'' includes 
     all court orders and decisions supplemental to that decree.
       (29) Haggard decree.--
       (A) In general.--The term ``Haggard Decree'' means the 
     decree dated June 11, 1903, entered in United States of 
     America, as guardian of Chief Charley Juan Saul and Cyrus 
     Sam, Maricopa Indians and 400 other Maricopa Indians 
     similarly situated v. Haggard, et al., Cause No. 19, in the 
     District Court for the Third Judicial District of the 
     Territory of Arizona, in and for the County of Maricopa.
       (B) Inclusions.--The term ``Haggard Decree'' includes all 
     court orders and decisions supplemental to that decree.
       (30) Including.--The term ``including'' has the same 
     meaning as the term ``including, but not limited to''.
       (31) Injury to water quality.--The term ``injury to water 
     quality'' means any contamination, diminution, or deprivation 
     of water quality under Federal, State, or other law.
       (32) Injury to water rights.--
       (A) In general.--The term ``injury to water rights'' means 
     an interference with, diminution of, or deprivation of water 
     rights under Federal, State, or other law.
       (B) Inclusion.--The term ``injury to water rights'' 
     includes a change in the underground water table and any 
     effect of such a change.
       (C) Exclusion.--The term ``injury to water rights'' does 
     not include subsidence damage or injury to water quality.
       (33) Lower colorado river basin development fund.--The term 
     ``Lower Colorado River Basin Development Fund'' means the 
     fund established by section 403 of the Colorado River Basin 
     Project Act (43 U.S.C. 1543).
       (34) Master agreement.--The term ``master agreement'' means 
     the agreement entitled ``Arizona Water Settlement Agreement'' 
     among the Director, the Central Arizona Water Conservation 
     District, and the Secretary, dated August 16, 2004.
       (35) NM cap entity.--The term ``NM CAP entity'' means the 
     entity or entities that the State of New Mexico may authorize 
     to assume responsibility for the design, construction, 
     operation, maintenance, and replacement of the New Mexico 
     Unit.
       (36) New mexico consumptive use and forbearance 
     agreement.--
       (A) In general.--The term ``New Mexico Consumptive Use and 
     Forbearance Agreement'' means that agreement entitled the 
     ``New Mexico Consumptive Use and Forbearance Agreement,'' 
     entered into by and among the United States, the Community, 
     the San Carlos Irrigation and Drainage District, and all of 
     the signatories to the UVD Agreement, and approved by the 
     State of New Mexico, and authorized, ratified, and approved 
     by section 212(b).
       (B) Inclusions.--The ``New Mexico Consumptive Use and 
     Forbearance Agreement'' includes--
       (i) all exhibits to that agreement (including the New 
     Mexico Risk Allocation agreement, which is also an exhibit to 
     the UVD agreement); and
       (ii) any amendment to that agreement made or added pursuant 
     to that agreement.
       (37) New mexico unit.--The term ``New Mexico Unit'' means 
     that unit or units of the Central Arizona Project authorized 
     by sections 301(a)(4) and 304 of the Colorado River Basin 
     Project Act (43 U.S.C. 1521(a)(4), 1524) (as amended by 
     section 212).
       (38) New mexico unit agreement.--
       (A) In general.--The term ``New Mexico Unit Agreement'' 
     means that agreement entitled the ``New Mexico Unit 
     Agreement,'' to be entered into by and between the United 
     States and the NM CAP entity upon notice to the Secretary 
     from the State of New Mexico that the State of New Mexico 
     intends to have the New Mexico Unit constructed or developed.
       (B) Inclusions.--The ``New Mexico Unit Agreement'' 
     includes--
       (i) all exhibits to that agreement; and
       (ii) any amendment to that agreement made or added pursuant 
     to that agreement.
       (39) Off-reservation trust land.--The term ``off-
     Reservation trust land'' means land outside the exterior 
     boundaries of the Reservation that is held in trust by the 
     United States for the benefit of the Community as of the 
     enforceability date.
       (40) Phelps dodge.--The term ``Phelps Dodge'' means the 
     Phelps Dodge Corporation, a New York corporation of that 
     name, and Phelps Dodge's subsidiaries (including Phelps Dodge 
     Morenci, Inc., a Delaware corporation of that name), and 
     Phelps Dodge's successors or assigns.
       (41) Repayment stipulation.--The term ``repayment 
     stipulation'' means the Revised Stipulation Regarding a Stay 
     of Litigation, Resolution of Issues During the Stay, and for 
     Ultimate Judgment Upon the Satisfaction of Conditions, filed 
     with the United States District Court for the District of 
     Arizona in Central Arizona Water Conservation District v. 
     United States, et al., No. CIV 95-09625-09TUC-09WDB(EHC), No. 
     CIV 95-091720-09PHX-09EHC (Consolidated Action), and that 
     court's order dated April 28, 2003, and any amendments or 
     revisions thereto.
       (42) Reservation.--
       (A) In general.--Except as provided in sections 207(d) and 
     210(d), the term ``Reservation'' means the land located 
     within the exterior boundaries of the reservation created 
     under sections 3 and 4 of the Act of February 28, 1859 (11 
     Stat. 401, chapter LXVI) and Executive Orders of August 31, 
     1876, June 14, 1879, May 5, 1882, November 15, 1883, July 31, 
     1911, June 2, 1913, August 27, 1914, and July 19, 1915.
       (B) Exclusion.--The term ``Reservation'' does not include 
     the land located in sections 16 and 36, Township 4 South, 
     Range 4 East, Salt and Gila River Base and Meridian.
       (43) Roosevelt habitat conservation plan.--The term 
     ``Roosevelt Habitat Conservation Plan'' means the habitat 
     conservation plan approved by the United States Fish and 
     Wildlife Service under section 10(a)(1)(B) of the Endangered 
     Species Act of 1973 (16 U.S.C. 1539(a)(1)(B)) for the 
     incidental taking of endangered, threatened, and candidate 
     species resulting from the continued operation by the Salt 
     River Project of Roosevelt Dam and Lake, near Phoenix, 
     Arizona.

[[Page 23777]]

       (44) Roosevelt water conservation district.--The term 
     ``Roosevelt Water Conservation District'' means the entity of 
     that name that is a political subdivision of the State and an 
     irrigation district organized under the law of the State.
       (45) Safford.--The term ``Safford'' means the city of 
     Safford, Arizona.
       (46) Salt river project.--The term ``Salt River Project'' 
     means the Salt River Project Agricultural Improvement and 
     Power District, a political subdivision of the State, and the 
     Salt River Valley Water Users' Association, an Arizona 
     Territorial corporation.
       (47) San carlos apache tribe.--The term ``San Carlos Apache 
     Tribe'' means the San Carlos Apache Tribe, a tribe of Apache 
     Indians organized under Section 16 of the Indian 
     Reorganization Act of June 18, 1934, 48 Stat. 987 (25 U.S.C. 
     476).
       (48) San carlos irrigation and drainage district.--The term 
     ``San Carlos Irrigation and Drainage District'' means the 
     entity of that name that is a political subdivision of the 
     State and an irrigation and drainage district organized under 
     the laws of the State.
       (49) San carlos irrigation project.--
       (A) In general.--The term ``San Carlos Irrigation Project'' 
     means the San Carlos irrigation project authorized under the 
     Act of June 7, 1924 (43 Stat. 475).
       (B) Inclusions.--The term ``San Carlos Irrigation Project'' 
     includes any amendments and supplements to the Act described 
     in subparagraph (A).
       (50) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (51) Special hot lands.--The term ``special hot lands'' has 
     the meaning given the term in subparagraph 2.34 of the UVD 
     agreement.
       (52) State.--The term ``State'' means the State of Arizona.
       (53) Subcontract.--
       (A) In general.--The term ``subcontract'' means a Central 
     Arizona Project water delivery subcontract.
       (B) Inclusion.--The term ``subcontract'' includes an 
     amendment to a subcontract.
       (54) Subsidence damage.--The term ``subsidence damage'' 
     means injury to land, water, or other real property resulting 
     from the settling of geologic strata or cracking in the 
     surface of the Earth of any length or depth, which settling 
     or cracking is caused by the pumping of underground water.
       (55) TBI eligible acres.--The term ``TBI eligible acres'' 
     has the meaning given the term in subparagraph 2.37 of the 
     UVD agreement.
       (56) Uncontracted municipal and industrial water.--The term 
     ``uncontracted municipal and industrial water'' means Central 
     Arizona Project municipal and industrial priority water that 
     is not subject to subcontract on the date of enactment of 
     this Act.
       (57) UV decreed acres.--
       (A) In general.--The term ``UV decreed acres'' means the 
     land located upstream and to the east of the Coolidge Dam for 
     which water may be diverted pursuant to the Globe Equity 
     Decree.
       (B) Exclusion.--The term ``UV decreed acres'' does not 
     include the reservation of the San Carlos Apache Tribe.
       (58) UV decreed water rights.--The term ``UV decreed water 
     rights'' means the right to divert water for use on UV 
     decreed acres in accordance with the Globe Equity Decree.
       (59) UV impact zone.--The term ``UV impact zone'' has the 
     meaning given the term in subparagraph 2.47 of the UVD 
     agreement.
       (60) UV subjugated land.--The term ``UV subjugated land'' 
     has the meaning given the term in subparagraph 2.50 of the 
     UVD agreement.
       (61) UVD agreement.--The term ``UVD agreement'' means the 
     agreement among the Community, the United States, the San 
     Carlos Irrigation and Drainage District, the Franklin 
     Irrigation District, the Gila Valley Irrigation District, 
     Phelps Dodge, and other parties located in the upper valley 
     of the Gila River, dated September 2, 2004.
       (62) UV signatories parties.--The term ``UV signatories'' 
     means the parties to the UVD agreement other than the United 
     States, the San Carlos Irrigation and Drainage District, and 
     the Community.
       (63) Water om&r fund.--The term ``Water OM&R Fund'' means 
     the Gila River Indian Community Water OM&R Trust Fund 
     established by section 208.
       (64) Water right.--The term ``water right'' means any right 
     in or to groundwater, surface water, or effluent under 
     Federal, State, or other law.
       (65) Water rights appurtenant to new mexico 381 acres.--The 
     term ``water rights appurtenant to New Mexico 381 acres'' 
     means the water rights--
       (A) appurtenant to the 380.81 acres described in the decree 
     in Arizona v. California, 376 U.S. 340, 349 (1964); and
       (B) appurtenant to other land, or for other uses, for which 
     the water rights described in subparagraph (A) may be 
     modified or used in accordance with that decree.
       (66) Water rights for new mexico domestic purposes.--The 
     term ``water rights for New Mexico domestic purposes'' means 
     the water rights for domestic purposes of not more than 265 
     acre-feet of water for consumptive use described in paragraph 
     IV(D)(2) of the decree in Arizona v. California, 376 U.S. 
     340, 350 (1964).
       (67) 1994 biological opinion.--The term ``1994 biological 
     opinion'' means the biological opinion, numbered 2-21-90-F-
     119, and dated April 15, 1994, relating to the transportation 
     and delivery of Central Arizona Project water to the Gila 
     River basin.
       (68) 1996 biological opinion.--The term ``1996 biological 
     opinion'' means the biological opinion, numbered 2-21-95-F-
     462 and dated July 23, 1996, relating to the impacts of 
     modifying Roosevelt Dam on the southwestern willow 
     flycatcher.
       (69) 1999 biological opinion.--The term ``1999 biological 
     opinion'' means the draft biological opinion numbered 2-21-
     91-F-706, and dated May 1999, relating to the impacts of the 
     Central Arizona Project on Gila Topminnow in the Santa Cruz 
     River basin through the introduction and spread of nonnative 
     aquatic species.

     SEC. 3. ARBITRATION.

       (a) No Participation by the United States.--
       (1) In general.--No arbitration decision rendered pursuant 
     to subparagraph 12.1 of the UVD agreement or exhibit 20.1 of 
     the Gila River agreement (including the joint control board 
     agreement attached to exhibit 20.1) shall be considered 
     invalid solely because the United States failed or refused to 
     participate in such arbitration proceedings that resulted in 
     such arbitration decision, so long as the matters in 
     arbitration under subparagraph 12.1 of the UVD agreement or 
     exhibit 20.1 of the Gila River Agreement concern aspects of 
     the water rights of the Community, the San Carlos Irrigation 
     Project, or the Miscellaneous Flow Lands (as defined in 
     subparagraph 2.18A of the UVD agreement) and not the water 
     rights of the United States in its own right, any other 
     rights of the United States, or the water rights or any other 
     rights of the United States acting on behalf of or for the 
     benefit of another tribe.
       (2) Arbitration ineffective.--If an issue otherwise subject 
     to arbitration under subparagraph 12.1 of the UVD agreement 
     or exhibit 20.1 of the Gila River Agreement cannot be 
     arbitrated or if an arbitration decision will not be 
     effective because the United States cannot or will not 
     participate in the arbitration, then the issue shall be 
     submitted for decision to a court of competent jurisdiction, 
     but not a court of the Community.
       (b) Participation by the Secretary.--Notwithstanding any 
     provision of any agreement, exhibit, attachment, or other 
     document ratified by this Act, if the Secretary is required 
     to enter arbitration pursuant to this Act or any such 
     document, the Secretary shall follow the procedures for 
     arbitration established by chapter 5 of title 5, United 
     States Code.

     SEC. 4. ANTIDEFICIENCY.

       The United States shall not be liable for failure to carry 
     out any obligation or activity required by this Act, 
     including all titles and all agreements or exhibits ratified 
     or confirmed by this Act, funded by--
       (1) the Lower Basin Development Fund established by section 
     403 of the Colorado River Basin Project Act (43 U.S.C. 1543), 
     if there are not enough monies in that fund to fulfill those 
     obligations or carry out those activities; or
       (2) appropriations, if appropriations are not provided by 
     Congress.

              TITLE I--CENTRAL ARIZONA PROJECT SETTLEMENT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Central Arizona Project 
     Settlement Act of 2004''.

     SEC. 102. FINDINGS.

       Congress finds that--
       (1) the water provided by the Central Arizona Project to 
     Maricopa, Pinal, and Pima Counties in the State of Arizona, 
     is vital to citizens of the State; and
       (2) an agreement on the allocation of Central Arizona 
     Project water among interested persons, including Federal and 
     State interests, would provide important benefits to the 
     Federal Government, the State of Arizona, Arizona Indian 
     Tribes, and the citizens of the State.

     SEC. 103. GENERAL PERMISSIBLE USES OF THE CENTRAL ARIZONA 
                   PROJECT.

       In accordance with the CAP repayment contract, the Central 
     Arizona Project may be used to transport nonproject water 
     for--
       (1) domestic, municipal, fish and wildlife, and industrial 
     purposes; and
       (2) any purpose authorized under the Colorado River Basin 
     Project Act (43 U.S.C. 1501 et seq.).

     SEC. 104. ALLOCATION OF CENTRAL ARIZONA PROJECT WATER.

       (a) Non-Indian Agricultural Priority Water.--
       (1) Reallocation to arizona indian tribes.--
       (A) In general.--The Secretary shall reallocate 197,500 
     acre-feet of agricultural priority water made available 
     pursuant to the master agreement for use by Arizona Indian 
     tribes, of which--
       (i) 102,000 acre-feet shall be reallocated to the Gila 
     River Indian Community;
       (ii) 28,200 acre-feet shall be reallocated to the Tohono 
     O'odham Nation; and
       (iii) subject to the conditions specified in subparagraph 
     (B), 67,300 acre-feet shall be reallocated to Arizona Indian 
     tribes.
       (B) Conditions.--The reallocation of agricultural priority 
     water under subparagraph

[[Page 23778]]

     (A)(iii) shall be subject to the conditions that--
       (i) such water shall be used to resolve Indian water claims 
     in Arizona, and may be allocated by the Secretary to Arizona 
     Indian Tribes in fulfillment of future Arizona Indian water 
     rights settlement agreements approved by an Act of Congress. 
     In the absence of an Arizona Indian water rights settlement 
     that is approved by an Act of Congress after the date of 
     enactment of this Act, the Secretary shall not allocate any 
     such water until December 31, 2030. Any allocations made by 
     the Secretary after such date shall be accompanied by a 
     certification that the Secretary is making the allocation in 
     order to assist in the resolution of an Arizona Indian water 
     right claim. Any such water allocated to an Arizona Indian 
     Tribe pursuant to a water delivery contract with the 
     Secretary under this clause shall be counted on an acre-foot 
     per acre-foot basis against any claim to water for that 
     Tribe's reservation;
       (ii) notwithstanding clause (i), the Secretary shall retain 
     6,411 acre-feet of water for use for a future water rights 
     settlement agreement approved by an Act of Congress that 
     settles the Navajo Nation's claims to water in Arizona. If 
     Congress does not approve this settlement before December 31, 
     2030, the 6,411 acre-feet of CAP water shall be available to 
     the Secretary under clause (i); and
       (iii) the agricultural priority water shall not, without 
     specific authorization by Act of Congress, be leased, 
     exchanged, forborne, or otherwise transferred by an Arizona 
     Indian tribe for any direct or indirect use outside the 
     reservation of the Arizona Indian tribe.
       (C) Report.--The Secretary, in consultation with Arizona 
     Indian tribes and the State, shall prepare a report for 
     Congress by December 31, 2016, that assesses whether the 
     potential benefits of subparagraph (A) are being conveyed to 
     Arizona Indian tribes pursuant to water rights settlements 
     enacted subsequent to this Act. For those Arizona Indian 
     tribes that have not yet settled water rights claims, the 
     Secretary shall describe whether any active negotiations are 
     taking place, and identify any critical water needs that 
     exist on the reservation of each such Arizona Indian tribe. 
     The Secretary shall also identify and report on the use of 
     unused quantities of agricultural priority water made 
     available to Arizona Indian tribes under subparagraph (A).
       (2) Reallocation to the arizona department of water 
     resources.--
       (A) In general.--Subject to subparagraph (B) and 
     subparagraph 9.3 of the master agreement, the Secretary shall 
     reallocate up to 96,295 acre-feet of agricultural priority 
     water made available pursuant to the master agreement to the 
     Arizona Department of Water Resources, to be held under 
     contract in trust for further allocation under subparagraph 
     (C).
       (B) Required documentation.--The reallocation of 
     agricultural priority water under subparagraph (A) is subject 
     to the condition that the Secretary execute any appropriate 
     documents to memorialize the reallocation, including--
       (i) an allocation decision; and
       (ii) a contract that prohibits the direct use of the 
     agricultural priority water by the Arizona Department of 
     Water Resources.
       (C) Further allocation.--With respect to the allocation of 
     agricultural priority water under subparagraph (A)--
       (i) before that water may be further allocated--

       (I) the Director shall submit to the Secretary, and the 
     Secretary shall receive, a recommendation for reallocation;
       (II) as soon as practicable after receiving the 
     recommendation, the Secretary shall carry out all necessary 
     reviews of the proposed reallocation, in accordance with 
     applicable Federal law; and
       (III) if the recommendation is rejected by the Secretary, 
     the Secretary shall--

       (aa) request a revised recommendation from the Director; 
     and
       (bb) proceed with any reviews required under subclause 
     (II); and
       (ii) as soon as practicable after the date on which 
     agricultural priority water is further allocated, the 
     Secretary shall offer to enter into a subcontract for that 
     water in accordance with paragraphs (1) and (2) of subsection 
     (d).
       (D) Master agreement.--The reallocation of agricultural 
     priority water under subparagraphs (A) and (C) is subject to 
     the master agreement, including certain rights provided by 
     the master agreement to water users in Pinal County, Arizona.
       (3) Priority.--The agricultural priority water reallocated 
     under paragraphs (1) and (2) shall be subject to the 
     condition that the water retain its non-Indian agricultural 
     delivery priority.
       (b) Uncontracted Central Arizona Project Municipal and 
     Industrial Priority Water.--
       (1) Reallocation.--The Secretary shall, on the 
     recommendation of the Director, reallocate 65,647 acre-feet 
     of uncontracted municipal and industrial water, of which--
       (A) 285 acre-feet shall be reallocated to the town of 
     Superior, Arizona;
       (B) 806 acre-feet shall be reallocated to the Cave Creek 
     Water Company;
       (C) 1,931 acre-feet shall be reallocated to the Chaparral 
     Water Company;
       (D) 508 acre-feet shall be reallocated to the town of El 
     Mirage, Arizona;
       (E) 7,211 acre-feet shall be reallocated to the city of 
     Goodyear, Arizona;
       (F) 147 acre-feet shall be reallocated to the H2O Water 
     Company;
       (G) 7,115 acre-feet shall be reallocated to the city of 
     Mesa, Arizona;
       (H) 5,527 acre-feet shall be reallocated to the city of 
     Peoria, Arizona;
       (I) 2,981 acre-feet shall be reallocated to the city of 
     Scottsdale, Arizona;
       (J) 808 acre-feet shall be reallocated to the AVRA 
     Cooperative;
       (K) 4,986 acre-feet shall be reallocated to the city of 
     Chandler, Arizona;
       (L) 1,071 acre-feet shall be reallocated to the Del Lago 
     (Vail) Water Company;
       (M) 3,053 acre-feet shall be reallocated to the city of 
     Glendale, Arizona;
       (N) 1,521 acre-feet shall be reallocated to the Community 
     Water Company of Green Valley, Arizona;
       (O) 4,602 acre-feet shall be reallocated to the 
     Metropolitan Domestic Water Improvement District;
       (P) 3,557 acre-feet shall be reallocated to the town of Oro 
     Valley, Arizona;
       (Q) 8,206 acre-feet shall be reallocated to the city of 
     Phoenix, Arizona;
       (R) 2,876 acre-feet shall be reallocated to the city of 
     Surprise, Arizona;
       (S) 8,206 acre-feet shall be reallocated to the city of 
     Tucson, Arizona; and
       (T) 250 acre-feet shall be reallocated to the Valley 
     Utilities Water Company.
       (2) Subcontracts.--
       (A) In general.--As soon as practicable after the date of 
     enactment of this Act, and in accordance with paragraphs (1) 
     and (2) of subsection (d) and any other applicable Federal 
     laws, the Secretary shall offer to enter into subcontracts 
     for the delivery of the uncontracted municipal and industrial 
     water reallocated under paragraph (1).
       (B) Revised recommendation.--If the Secretary is precluded 
     under applicable Federal law from entering into a subcontract 
     with an entity identified in paragraph (1), the Secretary 
     shall--
       (i) request a revised recommendation from the Director; and
       (ii) on receipt of a recommendation under clause (i), 
     reallocate and enter into a subcontract for the delivery of 
     the water in accordance with subparagraph (A).
       (c) Limitations.--
       (1) Amount.--
       (A) In general.--The total amount of entitlements under 
     long-term contracts (as defined in the repayment stipulation) 
     for the delivery of Central Arizona Project water in the 
     State shall not exceed 1,415,000 acre-feet, of which--
       (i) 650,724 acre-feet shall be--

       (I) under contract to Arizona Indian tribes; or
       (II) available to the Secretary for allocation to Arizona 
     Indian tribes; and

       (ii) 764,276 acre-feet shall be under contract or available 
     for allocation to--

       (I) non-Indian municipal and industrial entities;
       (II) the Arizona Department of Water Resources; and
       (III) non-Indian agricultural entities.

       (B) Exception.--Subparagraph (A) shall not apply to Central 
     Arizona Project water delivered to water users in Arizona in 
     exchange for Gila River water used in New Mexico as provided 
     in section 304 of the Colorado River Basin Project Act (43 
     U.S.C. 1524) (as amended by section 212).
       (2) Transfer.--
       (A) In general.--Except pursuant to the master agreement, 
     Central Arizona Project water may not be transferred from--
       (i) a use authorized under paragraph (1)(A)(i) to a use 
     authorized under paragraph (1)(A)(ii); or
       (ii) a use authorized under paragraph (1)(A)(ii) to a use 
     authorized under paragraph (1)(A)(i).
       (B) Exceptions.--
       (i) Leases.--A lease of Central Arizona Project water by an 
     Arizona Indian tribe to an entity described in paragraph 
     (1)(A)(ii) under an Indian water rights settlement approved 
     by an Act of Congress shall not be considered to be a 
     transfer for purposes of subparagraph (A).
       (ii) Exchanges.--An exchange of Central Arizona Project 
     water by an Arizona Indian tribe to an entity described in 
     paragraph (1)(A)(ii) shall not be considered to be a transfer 
     for purposes of subparagraph (A).
       (iii) Notwithstanding subparagraph (A), up to 17,000 acre-
     feet of CAP municipal and industrial water under the 
     subcontract among the United States, the Central Arizona 
     Water Conservation District, and Asarco, subcontract No. 3-
     07-30-W0307, dated November 7, 1993, may be reallocated to 
     the Community on execution of an exchange and lease agreement 
     among the Community, the United States, and Asarco.
       (d) Central Arizona Project Contracts and Subcontracts.--
       (1) In general.--Notwithstanding section 6 of the 
     Reclamation Project Act of 1939 (43 U.S.C. 485e), and 
     paragraphs (2) and (3) of section 304(b) of the Colorado 
     River Basin Project Act (43 U.S.C. 1524(b)), as soon as 
     practicable after the date of enactment of

[[Page 23779]]

     this Act, the Secretary shall offer to enter into 
     subcontracts or to amend all Central Arizona Project 
     contracts and subcontracts in effect as of that date in 
     accordance with paragraph (2).
       (2) Requirements.--All subcontracts and amendments to 
     Central Arizona Project contracts and subcontracts under 
     paragraph (1)--
       (A) shall be for permanent service (within the meaning of 
     section 5 of the Boulder Canyon Project Act of 1928 (43 
     U.S.C. 617d));
       (B) shall have an initial delivery term that is the greater 
     of--
       (i) 100 years; or
       (ii) a term--

       (I) authorized by Congress; or
       (II) provided under the appropriate Central Arizona Project 
     contract or subcontract in existence on the date of enactment 
     of this Act;

       (C) shall conform to the shortage sharing criteria 
     described in paragraph 5.3 of the Tohono O'odham settlement 
     agreement;
       (D) shall include the prohibition and exception described 
     in subsection (e); and
       (E) shall not require--
       (i) that any Central Arizona Project water received in 
     exchange for effluent be deducted from the contractual 
     entitlement of the CAP contractor or CAP subcontractor; or
       (ii) that any additional modification of the Central 
     Arizona Project contracts or subcontracts be made as a 
     condition of acceptance of the subcontract or amendments.
       (3) Applicability.--This subsection does not apply to--
       (A) a subcontract for non-Indian agricultural use; or
       (B) a contract executed under paragraph 5(d) of the 
     repayment stipulation.
       (e) Prohibition on Transfer.--
       (1) In general.--Except as provided in paragraph (2), no 
     Central Arizona Project water shall be leased, exchanged, 
     forborne, or otherwise transferred in any way for use 
     directly or indirectly outside the State.
       (2) Exceptions.--Central Arizona Project water may be--
       (A) leased, exchanged, forborne, or otherwise transferred 
     under an agreement with the Arizona Water Banking Authority 
     that is in accordance with part 414 of title 43, Code of 
     Federal Regulations; and
       (B) delivered to users in Arizona in exchange for Gila 
     River water used in New Mexico as provided in section 304 of 
     the Colorado River Basin Project Act (43 U.S.C. 1524) (as 
     amended by section 212).
       (3) Effect of subsection.--Nothing in this subsection 
     prohibits any entity from entering into a contract with the 
     Arizona Water Banking Authority or a successor of the 
     Authority under State law.

     SEC. 105. FIRMING OF CENTRAL ARIZONA PROJECT INDIAN WATER.

       (a) Firming Program.--The Secretary and the State shall 
     develop a firming program to ensure that 60,648 acre-feet of 
     the agricultural priority water made available pursuant to 
     the master agreement and reallocated to Arizona Indian tribes 
     under section 104(a)(1), shall, for a 100-year period, be 
     delivered during water shortages in the same manner as water 
     with a municipal and industrial delivery priority in the 
     Central Arizona Project system is delivered during water 
     shortages.
       (b) Duties.--
       (1) Secretary.--The Secretary shall--
       (A) firm 28,200 acre-feet of agricultural priority water 
     reallocated to the Tohono O'odham Nation under section 
     104(a)(1)(A)(ii); and
       (B) firm 8,724 acre-feet of agricultural priority water 
     reallocated to Arizona Indian tribes under section 
     104(a)(1)(A)(iii).
       (2) State.--The State shall--
       (A) firm 15,000 acre-feet of agricultural priority water 
     reallocated to the Community under section 104(a)(1)(A)(i);
       (B) firm 8,724 acre-feet of agricultural priority water 
     reallocated to Arizona Indian tribes under section 
     104(a)(1)(A)(iii); and
       (C) assist the Secretary in carrying out obligations of the 
     Secretary under paragraph (1)(A) in accordance with section 
     306 of the Southern Arizona Water Rights Settlement 
     Amendments Act (as added by section 301).
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as are 
     necessary to carry out the duties of the Secretary under 
     subsection (b)(1).

     SEC. 106. ACQUISITION OF AGRICULTURAL PRIORITY WATER.

       (a) Approval of Agreement.--
       (1) In general.--Except to the extent that any provision of 
     the master agreement conflicts with any provision of this 
     title, the master agreement is authorized, ratified, and 
     confirmed. To the extent that amendments are executed to make 
     the master agreement consistent with this title, such 
     amendments are also authorized, ratified, and confirmed.
       (2) Exhibits.--The Secretary is directed to and shall 
     execute the master agreement and any of the exhibits to the 
     master agreement that have not been executed as of the date 
     of enactment of this Act.
       (3) Debt collection.--For any agricultural priority water 
     that is not relinquished under the master agreement, the 
     subcontractor shall continue to pay, consistent with the 
     master agreement, the portion of the debt associated with any 
     retained water under section 9(d) of the Reclamation Project 
     Act of 1939 (43 U.S.C. 485h(d)), and the Secretary shall 
     apply such revenues toward the reimbursable section 9(d) debt 
     of that subcontractor.
       (4) Effective date.--The provisions of subsections (b) and 
     (c) shall take effect on the date of enactment of this Act.
       (b) Nonreimbursable Debt.--
       (1) In general.--In accordance with the master agreement, 
     the portion of debt incurred under section 9(d) of the 
     Reclamation Project Act of 1939 (43 U.S.C. 485h(d)), and 
     identified in the master agreement as nonreimbursable to the 
     United States, shall be nonreimbursable and nonreturnable to 
     the United States in an amount not to exceed $73,561,337.
       (2) Extension.--In accordance with the master agreement, 
     the Secretary may extend, on an annual basis, the repayment 
     schedule of debt incurred under section 9(d) of the 
     Reclamation Project Act of 1939 (43 U.S.C. 485h(d)) by CAP 
     subcontractors.
       (c) Exemption.--The Reclamation Reform Act of 1982 (43 
     U.S.C. 390aa et seq.) and any other acreage limitation or 
     full cost pricing provisions of Federal law shall not apply 
     to--
       (1) land within the exterior boundaries of the Central 
     Arizona Water Conservation District or served by Central 
     Arizona Project water;
       (2) land within the exterior boundaries of the Salt River 
     Reservoir District;
       (3) land held in trust by the United States for an Arizona 
     Indian tribe that is--
       (A) within the exterior boundaries of the Central Arizona 
     Water Conservation District; or
       (B) served by Central Arizona Project water; or
       (4) any person, entity, or land, solely on the basis of--
       (A) receipt of any benefits under this Act;
       (B) execution or performance of the Gila River agreement; 
     or
       (C) the use, storage, delivery, lease, or exchange of 
     Central Arizona Project water.

     SEC. 107. LOWER COLORADO RIVER BASIN DEVELOPMENT FUND.

       (a) In General.--Section 403 of the Colorado River Basin 
     Project Act (43 U.S.C. 1543) is amended by striking 
     subsection (f) and inserting the following:
       ``(f) Additional Uses of Revenue Funds.--
       ``(1) Crediting against central arizona water conservation 
     district payments.--Funds credited to the development fund 
     pursuant to subsection (b) and paragraphs (1) and (3) of 
     subsection (c), the portion of revenues derived from the sale 
     of power and energy for use in the State of Arizona pursuant 
     to subsection (c)(2) in excess of the amount necessary to 
     meet the requirements of paragraphs (1) and (2) of subsection 
     (d), and any annual payment by the Central Arizona Water 
     Conservation District to effect repayment of reimbursable 
     Central Arizona Project construction costs, shall be credited 
     annually against the annual payment owed by the Central 
     Arizona Water Conservation District to the United States for 
     the Central Arizona Project.
       ``(2) Further use of revenue funds credited against 
     payments of central arizona water conservation district.--
     After being credited in accordance with paragraph (1), the 
     funds and portion of revenues described in that paragraph 
     shall be available annually, without further appropriation, 
     in order of priority--
       ``(A) to pay annually the fixed operation, maintenance, and 
     replacement charges associated with the delivery of Central 
     Arizona Project water held under long-term contracts for use 
     by Arizona Indian tribes (as defined in section 2 of the 
     Arizona Water Settlements Act) in accordance with clause 
     8(d)(i)(1)(i) of the Repayment Stipulation (as defined in 
     section 2 of the Arizona Water Settlements Act);
       ``(B) to make deposits, totaling $53,000,000 in the 
     aggregate, in the Gila River Indian Community Water OM&R 
     Trust Fund established by section 208 of the Arizona Water 
     Settlements Act;
       ``(C) to pay $147,000,000 for the rehabilitation of the San 
     Carlos Irrigation Project, of which not more than $25,000,000 
     shall be available annually consistent with attachment 6.5.1 
     of exhibit 20.1 of the Gila River agreement, except that the 
     total amount of $147,000,000 shall be increased or decreased, 
     as appropriate, based on ordinary fluctuations since January 
     1, 2000, in construction cost indices applicable to the types 
     of construction involved in the rehabilitation;
       ``(D) in addition to amounts made available for the purpose 
     through annual appropriations, as reasonably allocated by the 
     Secretary without regard to any trust obligation on the part 
     of the Secretary to allocate the funding under any particular 
     priority and without regard to priority (except that payments 
     required by clause (i) shall be made first)--
       ``(i) to make deposits totaling $66,000,000, adjusted to 
     reflect changes since January 1, 2004, in the construction 
     cost indices applicable to the types of construction involved 
     in construction of the New Mexico Unit, into the New Mexico 
     Unit Fund as provided by section 212(i) of the Arizona Water 
     Settlements Act in 10 equal annual payments beginning in 
     2012;
       ``(ii) upon satisfaction of the conditions set forth in 
     subsections (j) and (k) of section 212,

[[Page 23780]]

     to pay certain of the costs associated with construction of 
     the New Mexico Unit, in addition to any amounts that may be 
     expended from the New Mexico Unit Fund, in a minimum amount 
     of $34,000,000 and a maximum amount of $62,000,000, as 
     provided in section 212 of the Arizona Water Settlements Act, 
     as adjusted to reflect changes since January 1, 2004, in the 
     construction cost indices applicable to the types of 
     construction involved in construction of the New Mexico Unit;
       ``(iii) to pay the costs associated with the construction 
     of distribution systems required to implement the provisions 
     of--

       ``(I) the contract entered into between the United States 
     and the Gila River Indian Community, numbered 6-07-03-W0345, 
     and dated July 20, 1998;
       ``(II) section 3707(a)(1) of the San Carlos Apache Tribe 
     Water Rights Settlement Act of 1992 (106 Stat. 4747); and
       ``(III) section 304 of the Southern Arizona Water Rights 
     Settlement Amendments Act of 2004;

       ``(iv) to pay $52,396,000 for the rehabilitation of the San 
     Carlos Irrigation Project as provided in section 203(d)(4) of 
     the Arizona Water Settlements Act, of which not more than 
     $9,000,000 shall be available annually, except that the total 
     amount of $52,396,000 shall be increased or decreased, as 
     appropriate, based on ordinary fluctuations since January 1, 
     2000, in construction cost indices applicable to the types of 
     construction involved in the rehabilitation;
       ``(v) to pay other costs specifically identified under--

       ``(I) sections 213(g)(1) and 214 of the Arizona Water 
     Settlements Act; and
       ``(II) the Southern Arizona Water Rights Settlement 
     Amendments Act of 2004;

       ``(vi) to pay a total of not more than $250,000,000 to the 
     credit of the Future Indian Water Settlement Subaccount of 
     the Lower Colorado Basin Development Fund, for use for Indian 
     water rights settlements in Arizona approved by Congress 
     after the date of enactment of this Act, subject to the 
     requirement that, notwithstanding any other provision of this 
     Act, any funds credited to the Future Indian Water Settlement 
     Subaccount that are not used in furtherance of a 
     congressionally approved Indian water rights settlement in 
     Arizona by December 31, 2030, shall be returned to the main 
     Lower Colorado Basin Development Fund for expenditure on 
     authorized uses pursuant to this Act, provided that any 
     interest earned on funds held in the Future Indian Water 
     Settlement Subaccount shall remain in such subaccount until 
     disbursed or returned in accordance with this section;
       ``(vii) to pay costs associated with the installation of 
     gages on the Gila River and its tributaries to measure the 
     water level of the Gila River and its tributaries for 
     purposes of the New Mexico Consumptive Use and Forbearance 
     Agreement in an amount not to exceed $500,000; and
       ``(viii) to pay the Secretary's costs of implementing the 
     Central Arizona Project Settlement Act of 2004;
       ``(E) in addition to amounts made available for the purpose 
     through annual appropriations--
       ``(i) to pay the costs associated with the construction of 
     on-reservation Central Arizona Project distribution systems 
     for the Yavapai Apache (Camp Verde), Tohono O'odham Nation 
     (Sif Oidak District), Pascua Yaqui, and Tonto Apache tribes; 
     and
       ``(ii) to make payments to those tribes in accordance with 
     paragraph 8(d)(i)(1)(iv) of the repayment stipulation (as 
     defined in section 2 of the Arizona Water Settlements Act), 
     except that if a water rights settlement Act of Congress 
     authorizes such construction, payments to those tribes shall 
     be made from funds in the Future Indian Water Settlement 
     Subaccount; and
       ``(F) if any amounts remain in the development fund at the 
     end of a fiscal year, to be carried over to the following 
     fiscal year for use for the purposes described in 
     subparagraphs (A) through (E).
       ``(3) Revenue funds in excess of revenue funds credited 
     against Central Arizona water conservation district 
     payments.--The funds and portion of revenues described in 
     paragraph (1) that are in excess of amounts credited under 
     paragraph (1) shall be available, on an annual basis, without 
     further appropriation, in order of priority--
       ``(A) to pay annually the fixed operation, maintenance and 
     replacement charges associated with the delivery of Central 
     Arizona Project water under long-term contracts held by 
     Arizona Indian tribes (as defined in section 2 of the Arizona 
     Water Settlements Act);
       ``(B) to make the final outstanding annual payment for the 
     costs of each unit of the projects authorized under title III 
     that are to be repaid by the Central Arizona Water 
     Conservation District;
       ``(C) to reimburse the general fund of the Treasury for 
     fixed operation, maintenance, and replacement charges 
     previously paid under paragraph (2)(A);
       ``(D) to reimburse the general fund of the Treasury for 
     costs previously paid under subparagraphs (B) through (E) of 
     paragraph (2);
       ``(E) to pay to the general fund of the Treasury the annual 
     installment on any debt relating to the Central Arizona 
     Project under section 9(d) of the Reclamation Project Act of 
     1939 (43 U.S.C. 485h(d)), made nonreimbursable under section 
     106(b) of the Arizona Water Settlements Act;
       ``(F) to pay to the general fund of the Treasury the 
     difference between--
       ``(i) the costs of each unit of the projects authorized 
     under title III that are repayable by the Central Arizona 
     Water Conservation District; and
       ``(ii) any costs allocated to reimbursable functions under 
     any Central Arizona Project cost allocation undertaken by the 
     United States; and
       ``(G) for deposit in the general fund of the Treasury.
       ``(4) Investment of amounts.--
       ``(A) In general.--The Secretary of the Treasury shall 
     invest such portion of the development fund as is not, in the 
     judgment of the Secretary of the Interior, required to meet 
     current needs of the development fund.
       ``(B) Permitted investments.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, including any provision requiring the consent or 
     concurrence of any party, the investments referred to in 
     subparagraph (A) shall include 1 or more of the following:

       ``(I) Any investments referred to in the Act of June 24, 
     1938 (25 U.S.C. 162a).
       ``(II) Investments in obligations of government 
     corporations and government-sponsored entities whose charter 
     statutes provide that their obligations are lawful 
     investments for federally managed funds.
       ``(III) The obligations referred to in section 201 of the 
     Social Security Act (42 U.S.C. 401).

       ``(ii) Lawful investments.--For purposes of clause (i), 
     obligations of government corporations and government-
     sponsored entities whose charter statutes provide that their 
     obligations are lawful investments for federally managed 
     funds includes any of the following securities or securities 
     with comparable language concerning the investment of 
     federally managed funds:

       ``(I) Obligations of the United States Postal Service as 
     authorized by section 2005 of title 39, United States Code.
       ``(II) Bonds and other obligations of the Tennessee Valley 
     Authority as authorized by section 15d of the Tennessee 
     Valley Authority Act of 1933 (16 U.S.C. 831n-4).
       ``(III) Mortgages, obligations, or other securities of the 
     Federal Home Loan Mortgage Corporation as authorized by 
     section 303 of the Federal Home Loan Mortgage Corporation Act 
     (12 U.S.C. 1452).
       ``(IV) Bonds, notes, or debentures of the Commodity Credit 
     Corporation as authorized by section 4 of the Act of March 4, 
     1939 (15 U.S.C. 713a-4).

       ``(C) Acquisition of obligations.--For the purpose of 
     investments under subparagraph (A), obligations may be 
     acquired--
       ``(i) on original issue at the issue price; or
       ``(ii) by purchase of outstanding obligations at the market 
     price.
       ``(D) Sale of obligations.--Any obligation acquired by the 
     development fund may be sold by the Secretary of the Treasury 
     at the market price.
       ``(E) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     development fund shall be credited to and form a part of the 
     development fund.
       ``(5) Amounts not available for certain federal 
     obligations.--None of the provisions of this section, 
     including paragraphs (2)(A) and (3)(A), shall be construed to 
     make any of the funds referred to in this section available 
     for the fulfillment of any Federal obligation relating to the 
     payment of OM&R charges if such obligation is undertaken 
     pursuant to Public Law 95-328, Public Law 98-530, or any 
     settlement agreement with the United States (or amendments 
     thereto) approved by or pursuant to either of those acts.''.
       (b) Limitation.--Amounts made available under the amendment 
     made by subsection (a)--
       (1) shall be identified and retained in the Lower Colorado 
     River Basin Development Fund established by section 403 of 
     the Colorado River Basin Project Act (43 U.S.C. 1543); and
       (2) shall not be expended or withdrawn from that fund until 
     the later of--
       (A) the date on which the findings described in section 
     207(c) are published in the Federal Register; or
       (B) January 1, 2010.
       (c) Technical Amendments.--The Colorado River Basin Project 
     Act (43 U.S.C. 1501 et seq.) is amended--
       (1) in section 403(g), by striking ``clause (c)(2)'' and 
     inserting ``subsection (c)(2)''; and
       (2) in section 403(e), by deleting the first word and 
     inserting ``Except as provided in subsection (f), revenues''.

     SEC. 108. EFFECT.

       Except for provisions relating to the allocation of Central 
     Arizona Project water and the Reclamation Reform Act of 1982 
     (43 U.S.C. 390aa et seq.), nothing in this title affects--
       (1) any treaty, law, or agreement governing the use of 
     water from the Colorado River; or
       (2) any rights to use Colorado River water existing on the 
     date of enactment of this Act.

[[Page 23781]]



     SEC. 109. REPEAL.

       Section 11(h) of the Salt River Pima-Maricopa Indian 
     Community Water Rights Settlement Act of 1988 (102 Stat. 
     2559) is repealed.

     SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as are necessary to comply with--
       (1) the 1994 biological opinion, including any funding 
     transfers required by the opinion;
       (2) the 1996 biological opinion, including any funding 
     transfers required by the opinion; and
       (3) any final biological opinion resulting from the 1999 
     biological opinion, including any funding transfers required 
     by the opinion.
       (b) Construction Costs.--Amounts made available under 
     subsection (a) shall be treated as Central Arizona Project 
     construction costs.
       (c) Agreements.--
       (1) In general.--Any amounts made available under 
     subsection (a) may be used to carry out agreements to 
     permanently fund long-term reasonable and prudent 
     alternatives in accepted biological opinions relating to the 
     Central Arizona Project.
       (2) Requirements.--To ensure that long-term environmental 
     compliance may be met without further appropriations, an 
     agreement under paragraph (1) shall include a provision 
     requiring that the contractor manage the funds through 
     interest-bearing investments.

     SEC. 111. REPEAL ON FAILURE OF ENFORCEABILITY DATE UNDER 
                   TITLE II.

       (a) In General.--Except as provided in subsection (b), if 
     the Secretary does not publish a statement of findings under 
     section 207(c) by December 31, 2007--
       (1) this title is repealed effective January 1, 2008, and 
     any action taken by the Secretary and any contract entered 
     under any provision of this title shall be void; and
       (2) any amounts appropriated under section 110 that remain 
     unexpended shall immediately revert to the general fund of 
     the Treasury.
       (b) Exception.--No subcontract amendment executed by the 
     Secretary under the notice of June 18, 2003 (67 Fed. Reg. 
     36578), shall be considered to be a contract entered into by 
     the Secretary for purposes of subsection (a)(1).

     TITLE II--GILA RIVER INDIAN COMMUNITY WATER RIGHTS SETTLEMENT

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Gila River Indian 
     Community Water Rights Settlement Act of 2004''.

     SEC. 202. PURPOSES.

       The purposes of this title are--
       (1) to resolve permanently certain damage claims and all 
     water rights claims among the United States on behalf of the 
     Community, its members, and allottees, and the Community and 
     its neighbors;
       (2) to authorize, ratify, and confirm the Gila River 
     agreement;
       (3) to authorize and direct the Secretary to execute and 
     perform all obligations of the Secretary under the Gila River 
     agreement;
       (4) to authorize the actions and appropriations necessary 
     for the United States to meet obligations of the United 
     States under the Gila River agreement and this title; and
       (5) to authorize and direct the Secretary to execute the 
     New Mexico Consumptive Use and Forbearance Agreement to allow 
     the Secretary to exercise the rights authorized by 
     subsections (d) and (f) of section 304 of the Colorado River 
     Basin Project Act (43 U.S.C. 1524).

     SEC. 203. APPROVAL OF THE GILA RIVER INDIAN COMMUNITY WATER 
                   RIGHTS SETTLEMENT AGREEMENT.

       (a) In General.--Except to the extent that any provision of 
     the Gila River agreement conflicts with any provision of this 
     title, the Gila River agreement is authorized, ratified, and 
     confirmed. To the extent amendments are executed to make the 
     Gila River agreement consistent with this title, such 
     amendments are also authorized, ratified, and confirmed.
       (b) Execution of Agreement.--To the extent that the Gila 
     River agreement does not conflict with this title, the 
     Secretary is directed to and shall execute the Gila River 
     agreement, including all exhibits to the Gila River agreement 
     requiring the signature of the Secretary and any amendments 
     necessary to make the Gila River agreement consistent with 
     this title, after the Community has executed the Gila River 
     agreement and any such amendments.
       (c) National Environmental Policy Act.--
       (1) Environmental compliance.--In implementing the Gila 
     River agreement, the Secretary shall promptly comply with all 
     aspects of the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.), the Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.), and all other applicable environmental 
     Acts and regulations.
       (2) Execution of the gila river agreement.--Execution of 
     the Gila River agreement by the Secretary under this section 
     shall not constitute a major Federal action under the 
     National Environmental Policy Act (42 U.S.C. 4321 et seq.). 
     The Secretary is directed to carry out all necessary 
     environmental compliance required by Federal law in 
     implementing the Gila River agreement.
       (3) Lead agency.--The Bureau of Reclamation shall be 
     designated as the lead agency with respect to environmental 
     compliance.
       (d) Rehabilitation and Operation, Maintenance, and 
     Replacement of Certain Water Works.--
       (1) In general.--In addition to any obligations of the 
     Secretary with respect to the San Carlos Irrigation Project, 
     including any operation or maintenance responsibility 
     existing on the date of enactment of this Act, the Secretary 
     shall--
       (A) in accordance with exhibit 20.1 to the Gila River 
     agreement, provide for the rehabilitation of the San Carlos 
     Irrigation Project water diversion and delivery works with 
     the funds provided for under section 403(f)(2) of the 
     Colorado River Basin Project Act; and
       (B) provide electric power for San Carlos Irrigation 
     Project wells and irrigation pumps at the Secretary's direct 
     cost of transmission, distribution, and administration, using 
     the least expensive source of power available.
       (2) Joint control board agreement.--
       (A) In general.--Except to the extent that it is in 
     conflict with this title, the Secretary shall execute the 
     joint control board agreement described in exhibit 20.1 to 
     the Gila River agreement, including all exhibits to the joint 
     control board agreement requiring the signature of the 
     Secretary and any amendments necessary to the joint control 
     board agreement consistent with this title.
       (B) Controls.--The joint control board agreement shall 
     contain the following provisions, among others:
       (i) The Secretary, acting through the Bureau of Indian 
     Affairs, shall continue to be responsible for the operation 
     and maintenance of Picacho Dam and Coolidge Dam and 
     Reservoir, and for scheduling and delivering water to the 
     Community and the District through the San Carlos Irrigation 
     Project joint works.
       (ii) The actions and decisions of the joint control board 
     that pertain to construction and maintenance of those San 
     Carlos Irrigation Project joint works that are the subject of 
     the joint control board agreement shall be subject to the 
     approval of the Secretary, acting through the Bureau of 
     Indian Affairs within 30 days thereof, or sooner in emergency 
     situations, which approval shall not be unreasonably 
     withheld. Should a required decision of the Bureau of Indian 
     Affairs not be received by the joint control board within 60 
     days following an action or decision of the joint control 
     board, the joint control board action or decision shall be 
     deemed to have been approved by the Secretary.
       (3) Rehabilitation costs allocable to the community.--The 
     rehabilitation costs allocable to the Community under exhibit 
     20.1 to the Gila River agreement shall be paid from the funds 
     available under paragraph (2)(C) of section 403(f) of the 
     Colorado River Basin Project Act (43 U.S.C. 1543(f)) (as 
     amended by section 107(a)).
       (4) Rehabilitation costs not allocable to the community.--
       (A) In general.--The rehabilitation costs not allocable to 
     the Community under exhibit 20.1 to the Gila River agreement 
     shall be provided from funds available under paragraph 
     (2)(D)(iv) of section 403(f) of the Colorado River Basin 
     Project Act (43 U.S.C. 1543(f)) (as amended by section 
     107(a)).
       (B) Supplementary repayment contract.--Prior to the advance 
     of any funds made available to the San Carlos Irrigation and 
     Drainage District pursuant to the provisions of this Act, the 
     Secretary shall execute a supplementary repayment contract 
     with the San Carlos Irrigation and Drainage District in the 
     form provided for in exhibit 20.1 to the Gila River agreement 
     which shall, among other things, provide that--
       (i) in accomplishing the work under the supplemental 
     repayment contract--

       (I) the San Carlos Irrigation and Drainage District--

       (aa) may use locally accepted engineering standards and the 
     labor and contracting authorities that are available to the 
     District under State law; and
       (bb) shall be subject to the value engineering program of 
     the Bureau of Reclamation established pursuant to OMB 
     Circular A-131; and

       (II) in accordance with FAR Part 48.101(b), the incentive 
     returned to the contractor through this ``Incentive Clause'' 
     shall be 55 percent after the Contractor is reimbursed for 
     the allowable costs of developing and implementing the 
     proposal and the Government shall retain 45 percent of such 
     savings in the form of reduced expenditures;

       (ii) up to 18,000 acre-feet annually of conserved water 
     will be made available by the San Carlos Irrigation and 
     Drainage District to the United States pursuant to the terms 
     of exhibit 20.1 to the Gila River agreement; and
       (iii) a portion of the San Carlos Irrigation and Drainage 
     District's share of the rehabilitation costs specified in 
     exhibit 20.1 to the Gila River agreement shall be 
     nonreimbursable.
       (5) Lead agency.--The Bureau of Reclamation shall be 
     designated as the lead agency for oversight of the 
     construction and rehabilitation of the San Carlos Irrigation 
     Project authorized by this section.

[[Page 23782]]

       (6) Financial responsibility.--Except as expressly provided 
     by this section, nothing in this Act shall affect--
       (A) any responsibility of the Secretary under the 
     provisions of the Act of June 7, 1924 (commonly known as the 
     ``San Carlos Irrigation Project Act of 1924'') (43 Stat. 
     475); or
       (B) any other financial responsibility of the Secretary 
     relating to operation and maintenance of the San Carlos 
     Irrigation Project existing on the date of enactment of this 
     Act.

     SEC. 204. WATER RIGHTS.

       (a) Rights Held in Trust; Allottees.--
       (1) Intent of congress.--It is the intent of Congress to 
     provide allottees with benefits that are equal to or that 
     exceed the benefits that the allottees currently possess, 
     taking into account--
       (A) the potential risks, cost, and time delay associated 
     with the litigation that will be resolved by the Gila River 
     agreement;
       (B) the availability of funding under title I for the 
     rehabilitation of the San Carlos Irrigation Project and for 
     other benefits;
       (C) the availability of water from the CAP system and other 
     sources after the enforceability date, which will supplement 
     less secure existing water supplies; and
       (D) the applicability of section 7 of the Act of February 
     8, 1887 (25 U.S.C. 381), and this title to protect the 
     interests of allottees.
       (2) Holding in trust.--The water rights and resources 
     described in the Gila River agreement shall be held in trust 
     by the United States on behalf of the Community and the 
     allottees as described in this section.
       (3) Allotted land.--As specified in and provided for under 
     this Act--
       (A) agricultural allottees, other than allottees with 
     rights under the Globe Equity Decree, shall be entitled to a 
     just and equitable allocation of water from the Community for 
     irrigation purposes from the water resources described in the 
     Gila River agreement;
       (B) allotted land with rights under the Globe Equity Decree 
     shall be entitled to receive--
       (i) a similar quantity of water from the Community to the 
     quantity historically delivered under the Globe Equity 
     Decree; and
       (ii) the benefit of the rehabilitation of the San Carlos 
     Irrigation Project as provided in this Act, a more secure 
     source of water, and other benefits under this Act;
       (C) the water rights and resources and other benefits 
     provided by this Act are a complete substitution of any 
     rights that may have been held by, or any claims that may 
     have been asserted by, the allottees before the date of 
     enactment of this Act for land within the exterior boundaries 
     of the Reservation;
       (D) any entitlement to water of allottees for land located 
     within the exterior boundaries of the Reservation shall be 
     satisfied by the Community using the water resources 
     described in subparagraph 4.1 in the Gila River agreement;
       (E) before asserting any claim against the United States 
     under section 1491(a) of title 28, United States Code, or 
     under section 7 of the Act of February 8, 1887 (25 U.S.C. 
     381), an allottee shall first exhaust remedies available to 
     the allottee under the Community's water code and Community 
     law; and
       (F) following exhaustion of remedies on claims relating to 
     section 7 of the Act of February 8, 1887 (25 U.S.C. 381), a 
     claimant may petition the Secretary for relief.
       (4) Actions, claims, and lawsuits.--
       (A) In general.--Nothing in this Act authorizes any action, 
     claim, or lawsuit by an allottee against any person, entity, 
     corporation, or municipal corporation, under Federal, State, 
     or other law.
       (B) The community and the united states.--Except as 
     provided in subparagraphs (E) and (F) of paragraph (3) and 
     subsection (e)(2)(C), nothing in this Act either authorizes 
     any action, claim, or lawsuit by an allottee against the 
     Community under Federal, State, or other law, or alters 
     available actions pursuant to section 1491(a) of title 28, of 
     the United States Code, or section 381 of title 25, of the 
     United States Code.
       (b) Reallocation.--
       (1) In general.--In accordance with this title and the Gila 
     River agreement, the Secretary shall reallocate and contract 
     with the Community for the delivery in accordance with this 
     section of--
       (A) an annual entitlement to 18,600 acre-feet of CAP 
     agricultural priority water in accordance with the agreement 
     among the Secretary, the Community, and Roosevelt Water 
     Conservation District dated August 7, 1992;
       (B) an annual entitlement to 18,100 acre-feet of CAP Indian 
     priority water, which was permanently relinquished by 
     Harquahala Valley Irrigation District in accordance with 
     Contract No. 3-0907-0930-09W0290 among the Central Arizona 
     Water Conservation District, the Harquahala Valley Irrigation 
     District, and the United States, and converted to CAP Indian 
     priority water under the Fort McDowell Indian Community Water 
     Rights Settlement Act of 1990 (104 Stat. 4480);
       (C) on execution of an exchange and lease agreement among 
     the Community, the United States, and Asarco, an annual 
     entitlement of up to 17,000 acre-feet of CAP municipal and 
     industrial priority water under the subcontract among the 
     United States, the Central Arizona Water Conservation 
     District, and Asarco, Subcontract No. 3-07-30-W0307, dated 
     November 7, 1993; and
       (D) as provided in section 104(a)(1)(A)(i), an annual 
     entitlement to 102,000 acre-feet of CAP agricultural priority 
     water acquired pursuant to the master agreement.
       (2) Sole authority.--In accordance with this section, the 
     Community shall have the sole authority, subject to the 
     Secretary's approval pursuant to section 205(a)(2), to lease, 
     distribute, exchange, or allocate the CAP water described in 
     this subsection, except that this paragraph shall not impair 
     the right of an allottee to lease land of the allottee 
     together with the water rights appurtenant to the land. 
     Nothing in this paragraph shall affect the validity of any 
     lease or exchange ratified in section 205(c) or 205(d).
       (c) Water Service Capital Charges.--The Community shall not 
     be responsible for water service capital charges for CAP 
     water.
       (d) Allocation and Repayment.--For the purpose of 
     determining the allocation and repayment of costs of any 
     stages of the Central Arizona Project constructed after the 
     date of enactment of this Act, the costs associated with the 
     delivery of water described in subsection (b), whether that 
     water is delivered for use by the Community or in accordance 
     with any assignment, exchange, lease, option to lease, or 
     other agreement for the temporary disposition of water 
     entered into by the Community--
       (1) shall be nonreimbursable; and
       (2) shall be excluded from the repayment obligation of the 
     Central Arizona Water Conservation District.
       (e) Application of Provisions.--
       (1) In general.--The water rights recognized and confirmed 
     to the Community and allottees by the Gila River agreement 
     and this title shall be subject to section 7 of the Act of 
     February 8, 1887 (25 U.S.C. 381).
       (2) Water code.--
       (A) In general.--Not later than 18 months after the 
     enforceability date, the Community shall enact a water code, 
     subject to any applicable provision of law (including 
     subsection (a)(3)), that--
       (i) manages, regulates, and controls the water resources on 
     the Reservation;
       (ii) governs all of the water rights that are held in trust 
     by the United States; and
       (iii) provides that, subject to approval of the Secretary--

       (I) the Community shall manage, regulate, and control the 
     water resources described in the Gila River agreement and 
     allocate water to all water users on the Reservation pursuant 
     to the water code;
       (II) the Community shall establish conditions, limitations, 
     and permit requirements relating to the storage, recovery, 
     and use of the water resources described in the Gila River 
     agreement;
       (III) any allocation of water shall be from the pooled 
     water resources described in the Gila River agreement;
       (IV) charges for delivery of water for irrigation purposes 
     to water users on the Reservation (including water users on 
     allotted land) shall be assessed on a just and equitable 
     basis without regard to the status of the Reservation land on 
     which the water is used;
       (V) there is a process by which any user of or applicant to 
     use water for irrigation purposes (including water users on 
     allotted land) may request that the Community provide water 
     for irrigation use in accordance with this title;
       (VI) there is a due process system for the consideration 
     and determination by the Community of any request by any 
     water user on the Reservation (including water users on 
     allotted land), for an allocation of water, including a 
     process for appeal and adjudication of denied or disputed 
     distributions of water and for resolution of contested 
     administrative decisions; and
       (VII) there is a requirement that any allottee with a claim 
     relating to the enforcement of rights of the allottee under 
     the water code or relating to the amount of water allocated 
     to land of the allottee must first exhaust remedies available 
     to the allottee under Community law and the water code before 
     initiating an action against the United States or petitioning 
     the Secretary pursuant to subsection (a)(3)(F).

       (B) Approval.--Any provision of the water code and any 
     amendments to the water code that affect the rights of the 
     allottees shall be subject to the approval of the Secretary, 
     and no such provision or amendment shall be valid until 
     approved by the Secretary.
       (C) Inclusion of requirement in water code.--The Community 
     is authorized to and shall include in the water code the 
     requirement in subparagraph (A)(VII) that any allottee with a 
     claim relating to the enforcement of rights of the allottee 
     under the water code or relating to the amount of water 
     allocated to land of the allottee must first exhaust remedies 
     available to the allottee under Community law and the water 
     code before initiating an action against the United States.
       (3) Administration.--The Secretary shall administer all 
     rights to water granted or confirmed to the Community and 
     allottees by the Gila River agreement and this Act until such 
     date as the water code described in paragraph (2) has been 
     enacted and approved by the Secretary, at which time the

[[Page 23783]]

     Community shall have authority, subject to the Secretary's 
     authority under section 7 of the Act of February 8, 1887 (25 
     U.S.C. 381), to manage, regulate, and control the water 
     resources described in the Gila River agreement, subject to 
     paragraph (2), except that this paragraph shall not impair 
     the right of an allottee to lease land of the allottee 
     together with the water rights appurtenant to the land.

     SEC. 205. COMMUNITY WATER DELIVERY CONTRACT AMENDMENTS.

       (a) In General.--The Secretary shall amend the Community 
     water delivery contract to provide, among other things, in 
     accordance with the Gila River agreement, that--
       (1) the contract shall be--
       (A) for permanent service (as that term is used in section 
     5 of the Boulder Canyon Project Act (43 U.S.C. 617d)); and
       (B) without limit as to term;
       (2) the Community may, with the approval of the Secretary, 
     including approval as to the Secretary's authority under 
     section 7 of the Act of February 8, 1887 (25 U.S.C. 381)--
       (A) enter into contracts or options to lease (for a term 
     not to exceed 100 years) or contracts or options to exchange, 
     Community CAP water within Maricopa, Pinal, Pima, La Paz, 
     Yavapai, Gila, Graham, Greenlee, Santa Cruz, or Coconino 
     Counties, Arizona, providing for the temporary delivery to 
     others of any portion of the Community CAP water; and
       (B) renegotiate any lease at any time during the term of 
     the lease, so long as the term of the renegotiated lease does 
     not exceed 100 years;
       (3)(A) the Community, and not the United States, shall be 
     entitled to all consideration due to the Community under any 
     leases or options to lease and exchanges or options to 
     exchange Community CAP water entered into by the Community; 
     and
       (B) the United States shall have no trust obligation or 
     other obligation to monitor, administer, or account for--
       (i) any funds received by the Community as consideration 
     under any such leases or options to lease and exchanges or 
     options to exchange; or
       (ii) the expenditure of such funds;
       (4)(A) all Community CAP water shall be delivered through 
     the CAP system; and
       (B) if the delivery capacity of the CAP system is 
     significantly reduced or is anticipated to be significantly 
     reduced for an extended period of time, the Community shall 
     have the same CAP delivery rights as other CAP contractors 
     and CAP subcontractors, if such CAP contractors or CAP 
     subcontractors are allowed to take delivery of water other 
     than through the CAP system;
       (5) the Community may use Community CAP water on or off the 
     Reservation for Community purposes;
       (6) as authorized by subparagraph (A) of section 403(f)(2) 
     of the Colorado River Basin Project Act (43 U.S.C. 
     1543(f)(2)) (as amended by section 107(a)) and to the extent 
     that funds are available in the Lower Colorado River Basin 
     Development Fund established by section 403 of that Act (43 
     U.S.C. 1543), the United States shall pay to the CAP 
     operating agency the fixed OM&R charges associated with the 
     delivery of Community CAP water, except for Community CAP 
     water leased by others;
       (7) the costs associated with the construction of the CAP 
     system allocable to the Community--
       (A) shall be nonreimbursable; and
       (B) shall be excluded from any repayment obligation of the 
     Community; and
       (8) no CAP water service capital charges shall be due or 
     payable for Community CAP water, whether CAP water is 
     delivered for use by the Community or is delivered under any 
     leases, options to lease, exchanges or options to exchange 
     Community CAP water entered into by the Community.
       (b) Amended and Restated Community Water Delivery 
     Contract.--To the extent it is not in conflict with the 
     provisions of this Act, the Amended and Restated Community 
     CAP Water Delivery Contract set forth in exhibit 8.2 to the 
     Gila River agreement is authorized, ratified, and confirmed, 
     and the Secretary is directed to and shall execute the 
     contract. To the extent amendments are executed to make the 
     Amended and Restated Community CAP Water Delivery Contract 
     consistent with this title, such amendments are also 
     authorized, ratified, and confirmed.
       (c) Leases.--To the extent they are not in conflict with 
     the provisions of this Act, the leases of Community CAP water 
     by the Community to Phelps Dodge, and any of the Cities, 
     attached as exhibits to the Gila River agreement, are 
     authorized, ratified, and confirmed, and the Secretary is 
     directed to and shall execute the leases. To the extent 
     amendments are executed to make such leases consistent with 
     this title, such amendments are also authorized, ratified, 
     and confirmed.
       (d) Reclaimed Water Exchange Agreement.--To the extent it 
     is not in conflict with the provisions of this Act, the 
     Reclaimed Water Exchange Agreement among the cities of 
     Chandler and Mesa, Arizona, the Community, and the United 
     States, attached as exhibit 18.1 to the Gila River agreement, 
     is authorized, ratified, and confirmed, and the Secretary 
     shall execute the agreement. To the extent amendments are 
     executed to make the Reclaimed Water Exchange Agreement 
     consistent with this title, such amendments are also 
     authorized, ratified, and confirmed.
       (e) Payment of Charges.--Neither the Community nor any 
     recipient of Community CAP water through lease or exchange 
     shall be obligated to pay water service capital charges or 
     any other charges, payments, or fees for the CAP water, 
     except as provided in the lease or exchange agreement.
       (f) Prohibitions.--
       (1) Use outside the state.--None of the Community CAP water 
     shall be leased, exchanged, forborne, or otherwise 
     transferred in any way by the Community for use directly or 
     indirectly outside the State.
       (2) Use off reservation.--Except as authorized by this 
     section and subparagraph 4.7 of the Gila River agreement, no 
     water made available to the Community under the Gila River 
     agreement, the Globe Equity Decree, the Haggard Decree, or 
     this title may be sold, leased, transferred, or used off the 
     Reservation other than by exchange.
       (3) Agreements with the arizona water banking authority.--
     Nothing in this Act or the Gila River agreement limits the 
     right of the Community to enter into any agreement with the 
     Arizona Water Banking Authority, or any successor agency or 
     entity, in accordance with State law.

     SEC. 206. SATISFACTION OF CLAIMS.

       (a) In General.--The benefits realized by the Community, 
     Community members, and allottees under this title shall be in 
     complete replacement of and substitution for, and full 
     satisfaction of, all claims of the Community, Community 
     members, and allottees for water rights, injury to water 
     rights, injury to water quality and subsidence damage, except 
     as set forth in the Gila River agreement, under Federal, 
     State, or other law with respect to land within the exterior 
     boundaries of the Reservation, off-Reservation trust land, 
     and fee land.
       (b) No Recognition of Water Rights.--Notwithstanding 
     subsection (a) and except as provided in section 204(a), 
     nothing in this title has the effect of recognizing or 
     establishing any right of a Community member or allottee to 
     water on the Reservation.

     SEC. 207. WAIVER AND RELEASE OF CLAIMS.

       (a) In General.--
       (1) Claims against the state and others.--
       (A) Claims for water rights and injury to water rights by 
     the community and the united states on behalf of the 
     community.--Except as provided in subparagraph 25.12 of the 
     Gila River agreement, the Community, on behalf of the 
     Community and Community members (but not members in their 
     capacities as allottees), and the United States, on behalf of 
     the Community and Community members (but not members in their 
     capacities as allottees), as part of the performance of their 
     obligations under the Gila River agreement, are authorized to 
     execute a waiver and release of any claims against the State 
     (or any agency or political subdivision of the State) or any 
     other person, entity, corporation, or municipal corporation 
     under Federal, State, or other law for--
       (i)(I) past, present, and future claims for water rights 
     for land within the exterior boundaries of the Reservation, 
     off-Reservation trust land, and fee land arising from time 
     immemorial and, thereafter, forever; and
       (II) past, present, and future claims for water rights 
     arising from time immemorial and, thereafter, forever, that 
     are based on aboriginal occupancy of land by the Community 
     and Community members, or their predecessors;
       (ii)(I) past and present claims for injury to water rights 
     for land within the exterior boundaries of the Reservation, 
     off-Reservation trust land, and fee land arising from time 
     immemorial through the enforceability date;
       (II) past, present, and future claims for injury to water 
     rights arising from time immemorial and, thereafter, forever, 
     that are based on aboriginal occupancy of land by the 
     Community and Community members, or their predecessors; and
       (III) claims for injury to water rights arising after the 
     enforceability date for land within the exterior boundaries 
     of the Reservation, off-Reservation trust land, and fee land 
     resulting from the off-Reservation diversion or use of water 
     in a manner not in violation of the Gila River agreement or 
     State law;
       (iii) past, present, and future claims arising out of or 
     relating in any manner to the negotiation or execution of the 
     Gila River agreement or the negotiation or enactment of 
     titles I and II; and
       (iv)(I) past and present claims for subsidence damage 
     occurring to land within the exterior boundaries of the 
     Reservation, off-Reservation trust land, or fee land arising 
     from time immemorial through the enforceability date; and
       (II) claims for subsidence damage arising after the 
     enforceability date occurring to land within the exterior 
     boundaries of the Reservation, off-Reservation trust land, or 
     fee land resulting from the diversion of underground water in 
     a manner not in violation of the Gila River agreement or 
     State law.

[[Page 23784]]

       (B) Claims for water rights and injury to water rights by 
     the united states as trustee for the allottees.--Except as 
     provided in subparagraph 25.12 of the Gila River agreement, 
     the United States, as trustee for the allottees, as part of 
     the performance of its obligations under the Gila River 
     agreement, is authorized to execute a waiver and release of 
     any claims against the State (or any agency or political 
     subdivision of the State) or any other person, entity, 
     corporation, or municipal corporation under Federal, State, 
     or other law, for--
       (i)(I) past, present, and future claims for water rights 
     for land within the exterior boundaries of the Reservation 
     arising from time immemorial and, thereafter, forever; and
       (II) past, present, and future claims for water rights 
     arising from time immemorial and, thereafter, forever, that 
     are based on aboriginal occupancy of land by allottees, or 
     their predecessors;
       (ii)(I) past and present claims for injury to water rights 
     for land within the exterior boundaries of the Reservation 
     arising from time immemorial through the enforceability date;
       (II) past, present, and future claims for injury to water 
     rights arising from time immemorial and, thereafter, forever, 
     that are based on aboriginal occupancy of land by allottees 
     or their predecessors; and
       (III) claims for injury to water rights arising after the 
     enforceability date for land within the exterior boundaries 
     of the Reservation resulting from the off-Reservation 
     diversion or use of water in a manner not in violation of the 
     Gila River agreement or State law;
       (iii) past, present, and future claims arising out of or 
     relating in any manner to the negotiation or execution of the 
     Gila River agreement or the negotiation or enactment of 
     titles I and II; and
       (iv) past and present claims for subsidence damage 
     occurring to land within the exterior boundaries of the 
     Reservation arising from time immemorial through the 
     enforceability date.
       (C) Claims for injury to water quality by the community.--
     Except as provided in subparagraph 25.12 of the Gila River 
     agreement, the Community, on behalf of the Community and 
     Community members (but not members in their capacities as 
     allottees), as part of the performance of its obligations 
     under the Gila River agreement, is authorized to execute a 
     waiver and release of any claims, and to agree to waive its 
     right to request the United States to bring any claims, 
     against the State (or any agency or political subdivision of 
     the State) or any other person, entity, corporation, or 
     municipal corporation under Federal, State, or other law 
     for--
       (i) past and present claims for injury to water quality 
     (other than claims arising out of the actions that resulted 
     in the remediations described in exhibit 25.4.1.1 to the Gila 
     River agreement), including claims for trespass, nuisance, 
     and real property damage and claims under all current and 
     future Federal, State, and other environmental laws and 
     regulations, including claims under the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.) and the Arizona Water Quality 
     Assurance Revolving Fund (Ariz. Rev. Stat. 49-281 et seq. as 
     amended) arising from time immemorial through December 31, 
     2002, for land within the exterior boundaries of the 
     Reservation, off-Reservation trust land, and fee land;
       (ii) past, present, and future claims for injury to water 
     quality (other than claims arising out of actions that 
     resulted in the remediations described in exhibit 25.4.1.1 to 
     the Gila River agreement), including claims for trespass, 
     nuisance, and real property damage and claims under all 
     current and future Federal, State, and other environmental 
     laws and regulations, including claims under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the 
     Arizona Water Quality Assurance Revolving Fund (Ariz. Rev. 
     Stat. 49-281 et seq.), arising from time immemorial and, 
     thereafter, forever, that are based on aboriginal occupancy 
     of land by the Community and Community members, or their 
     predecessors;
       (iii) claims for injury to water quality (other than claims 
     arising out of actions that resulted in the remediations 
     described in exhibit 25.4.1.1 to the Gila River agreement) 
     arising after December 31, 2002, including claims for 
     trespass, nuisance, and real property damage and claims under 
     all current and future Federal, State, and other 
     environmental laws and regulations, including claims under 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the 
     Arizona Water Quality Assurance Revolving Fund (Ariz. Rev. 
     Stat. 49-9281 et seq.), that result from--

       (I) the delivery of water to the Community;
       (II) the off-Reservation diversion (other than pumping), or 
     ownership or operation of structures for the off-Reservation 
     diversion (other than pumping), of water;
       (III) the off-Reservation pumping, or ownership or 
     operation of structures for the off-Reservation pumping, of 
     water in a manner not in violation of the Gila River 
     agreement or of any applicable pumping limitations under 
     State law;
       (IV) the recharge, or ownership or operation of structures 
     for the recharge, of water under a State permit; and
       (V) the off-Reservation application of water to land for 
     irrigation,

     except that the waiver provided in this clause shall extend 
     only to the State (or any agency or political subdivision of 
     the State) or any other person, entity, or municipal or other 
     corporation to the extent that the person, entity, or 
     corporation is engaged in an activity specified in this 
     clause.
       (D) Past and present claims for injury to water quality by 
     the united states.--Except as provided in subparagraph 25.12 
     of the Gila River agreement and except for any claims arising 
     out of the actions that resulted in the remediations 
     described in exhibit 25.4.1.1 to the Gila River agreement, 
     the United States, acting as trustee for the Community, 
     Community members and allottees, and as part of the 
     performance of its obligations under the Gila River 
     agreement, to the extent consistent with this section, is 
     authorized to execute a waiver and release of any claims 
     arising from time immemorial through December 31, 2002, for 
     injury to water quality where all of the following conditions 
     are met:
       (i) The claims are brought solely on behalf of the 
     Community, members, or allottees.
       (ii) The claims are brought against the State (or any 
     agency or political subdivision of the State) or any person, 
     entity, corporation, or municipal corporation.
       (iii) The claims arise under Federal, State, or other law, 
     including claims, if any, for trespass, nuisance, and real 
     property damage, and claims, if any, under any current or 
     future Federal, State, or other environmental laws or 
     regulation, including under the Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601 et seq.) or the Arizona Water Quality Assurance 
     Revolving Fund (Ariz. Rev. Stat. 49-281 et seq.).
       (iv) The claimed injury is to land, water, or natural 
     resources located on trust land within the exterior 
     boundaries of the Reservation or on off-Reservation trust 
     land.
       (E) Future claims for injury to water quality by the united 
     states.--Except as provided in subparagraph 25.12 of the Gila 
     River agreement and except for any claims arising out of the 
     actions that resulted in the remediations described in 
     exhibit 25.4.1.1 to the Gila River agreement, the United 
     States, in its own right and as trustee for the Community, 
     its members and allottees, as part of the performance of its 
     obligations under the Gila River agreement, to the extent 
     consistent with this section, is authorized to execute a 
     waiver and release of the following claims for injury or 
     threat of injury to water quality arising after December 31, 
     2002, against the State (or any agency or political 
     subdivision of the State) or any other person, entity, 
     corporation, or municipal corporation under Federal, State, 
     or other law:
       (i) All common law claims for injury or threat of injury to 
     water quality where the injury or threat of injury asserted 
     is to the Community's, Community members' or allottees' 
     interests in trust land, water, or natural resources located 
     within the exterior boundaries of the Reservation or within 
     off-Reservation trust lands caused by--

       (I) the delivery of water to the Community;
       (II) the off-Reservation diversion (other than pumping), or 
     ownership or operation of structures for the off-Reservation 
     diversion (other than pumping), of water;
       (III) the off-Reservation pumping, or ownership or 
     operation of structures for the off-Reservation pumping, of 
     water in a manner not in violation of the Gila River 
     agreement or of any applicable pumping limitations under 
     State law;
       (IV) the recharge, or ownership or operation of structures 
     for the recharge, of water under a State permit; and
       (V) the off-Reservation application of water to land for 
     irrigation.

       (ii) All natural resource damage claims for injury or 
     threat of injury to water quality where the United States, 
     through the Secretary of the Interior or other designated 
     officials, would act on behalf of the Community, its members 
     or allottees as a natural resource trustee pursuant to the 
     National Contingency Plan, (as currently set forth in section 
     300.600(b)(2) of title 40, Code of Federal Regulations, or as 
     it may hereafter be amended), and where the claim is based on 
     injury to natural resources or threat of injury to natural 
     resources within the exterior boundaries of the Reservation 
     or off-Reservation trust lands, caused by--

       (I) the delivery of water to the Community;
       (II) the off-Reservation diversion (other than pumping), or 
     ownership or operation of structures for the off-Reservation 
     diversion (other than pumping), of water;
       (III) the off-Reservation pumping, or ownership or 
     operation of structures for the off-Reservation pumping, of 
     water in a manner not in violation of the Gila River 
     agreement or of any applicable pumping limitations under 
     State law;

[[Page 23785]]

       (IV) the recharge, or ownership or operation of structures 
     for the recharge, of water under a State permit; and
       (V) the off-Reservation application of water to land for 
     irrigation.

       (F) Claims by the community against the salt river 
     project.--
       (i) In general.--Except as provided in subparagraph 25.12 
     of the Gila River agreement, to the extent consistent with 
     this section, the Community, on behalf of the Community and 
     Community members (but not members in their capacities as 
     allottees), as part of the performance of its obligations 
     under the Gila River agreement, is authorized to execute a 
     waiver and release of claims against the Salt River Project 
     (or its successors or assigns or its officers, governors, 
     directors, employees, agents, or shareholders), where all of 
     the following conditions are met:

       (I) The claims are brought solely on behalf of the 
     Community or its, members.
       (II) The claims arise from the discharge, transportation, 
     seepage, or other movement of water in, through, or from 
     drains, canals, or other facilities or land in the Salt River 
     Reservoir District to trust land located within the exterior 
     boundaries of the Reservation.
       (III) The claims arise from time immemorial through the 
     enforceability date.
       (IV) The claims assert a past or present injury to water 
     rights, injury on the Reservation to water quality, or injury 
     to trust property located within the exterior boundaries of 
     the Reservation.

       (ii) Effect of waiver.--The waiver provided for in this 
     subparagraph is effective as of December 31, 2002, and shall 
     continue to preclude claims as they may arise until the 
     enforceability date, or until such time as the Salt River 
     Project alters its historical operations of the drains, 
     canals, or other facilities within the Salt River Reservoir 
     District in a manner that would cause significant harm to 
     trust lands within the exterior boundaries of the 
     Reservation, whichever occurs earlier.
       (G) Claims by the united states against the salt river 
     project.--
       (i) In general.--Except as provided in subparagraph 25.12 
     of the Gila River agreement, to the extent consistent with 
     this section, the United States, acting as trustee for the 
     Community, Community members and allottees, and as part of 
     the performance of its obligations under the Gila River 
     agreement, is authorized to execute a waiver and release of 
     claims against the Salt River Project (or its successors or 
     assigns or its officers, governors, directors, employees, 
     agents, or shareholders), where all of the following 
     conditions are met:

       (I) The claims are brought solely on behalf of the 
     Community, members, or allottees.
       (II) The claims arise from the discharge, transportation, 
     seepage, or other movement of water in, through, or from 
     drains, canals, or other facilities or land in the Salt River 
     Reservoir District to trust land located within the exterior 
     boundaries of the Reservation.
       (III) The claims arise from time immemorial through the 
     enforceability date.
       (IV) The claims assert a past or present injury to water 
     rights, injury on the Reservation to water quality, or injury 
     to trust property located within the exterior boundaries of 
     the Reservation.

       (ii) Effect of waiver.--The waiver provided for in this 
     subsection is effective as of December 31, 2002, and shall 
     continue to preclude claims as they may arise until the 
     enforceability date, or until such time as the Salt River 
     Project alters its historical operations of the drains, 
     canals, or other facilities within the Salt River Reservoir 
     District in a manner that would cause significant harm to 
     trust lands within the exterior boundaries of the 
     Reservation, whichever occurs earlier.
       (H) United states enforcement authority.--Except as 
     provided in subparagraphs (D), (E), and (G), nothing in this 
     Act or the Gila River agreement affects any right of the 
     United States, or the State, to take any action, including 
     environmental actions, under any laws (including regulations 
     and the common law) relating to human health, safety, or the 
     environment.
       (2) Claims for subsidence by the community, allottees, and 
     the united states on behalf of the community and allottees.--
     In accordance with the subsidence remediation program under 
     section 209, the Community, a Community member, or an 
     allottee, and the United States, on behalf of the Community, 
     a Community member, or an allottee, as part of the 
     performance of obligations under the Gila River agreement, 
     are authorized to execute a waiver and release of all claims 
     against the State (or any agency or political subdivision of 
     the State) or any other person, entity, corporation or 
     municipal corporation under Federal, State, or other law for 
     the damage claimed.
       (3) Claims against the community.--
       (A) In general.--Except as provided in subparagraph 25.12 
     of the Gila River agreement, to the extent consistent with 
     this Act, the United States, in all its capacities (except as 
     trustee for an Indian tribe other than the Community), as 
     part of the performance of obligations under the Gila River 
     agreement, is authorized to execute a waiver and release of 
     any and all claims against the Community, or any agency, 
     official, or employee of the Community, under Federal, State, 
     or any other law for--
       (i) past and present claims for subsidence damage to trust 
     land within the exterior boundaries of the Reservation, off-
     Reservation trust lands, and fee land arising from time 
     immemorial through the enforceability date; and
       (ii) past, present, and future claims arising out of or 
     relating in any manner to the negotiation or execution of the 
     Gila River agreement or the negotiation or enactment of 
     titles I and II.
       (4) Claims against the united states.--
       (A) In general.--Except as provided in subparagraph 25.12 
     of the Gila River agreement, the Community, on behalf of the 
     Community and Community members (but not members in their 
     capacities as allottees), as part of the performance of 
     obligations under the Gila River agreement, is authorized to 
     execute a waiver and release of any claim against the United 
     States (or agencies, officials, or employees of the United 
     States) under Federal, State, or other law for--
       (i)(I) past, present, and future claims for water rights 
     for land within the exterior boundaries of the Reservation, 
     off-Reservation trust land, and fee land arising from time 
     immemorial and, thereafter, forever; and
       (II) past, present, and future claims for water rights 
     arising from time immemorial and, thereafter, forever, that 
     are based on aboriginal occupancy of land by the Community 
     and Community members, or their predecessors;
       (ii)(I) past and present claims for injury to water rights 
     for land within the exterior boundaries of the Reservation, 
     off-Reservation trust land, and fee land arising from time 
     immemorial through the enforceability date;
       (II) past, present, and future claims for injury to water 
     rights arising from time immemorial and, thereafter, forever, 
     that are based on aboriginal occupancy of land by the 
     Community and Community members, or their predecessors; and
       (III) claims for injury to water rights arising after the 
     enforceability date for land within the exterior boundaries 
     of the Reservation, off-Reservation trust land, or fee land 
     resulting from the off-Reservation diversion or use of water 
     in a manner not in violation of the Gila River agreement or 
     applicable law;
       (iii) past, present, and future claims arising out of or 
     relating in any manner to the negotiation or execution of the 
     Gila River agreement or the negotiation or enactment of 
     titles I and II;
       (iv)(I) past and present claims for subsidence damage 
     occurring to land within the exterior boundaries of the 
     Reservation, off-Reservation trust land, or fee land arising 
     from time immemorial through the enforceability date; and
       (II) claims for subsidence damage arising after the 
     enforceability date occurring to land within the exterior 
     boundaries of the Reservation, off-Reservation trust land or 
     fee land resulting from the diversion of underground water in 
     a manner not in violation of the Gila River agreement or 
     applicable law;
       (v) past and present claims for failure to protect, 
     acquire, or develop water rights for or on behalf of the 
     Community and Community members arising before December 31, 
     2002; and
       (vi) past, present, and future claims relating to failure 
     to assert any claims expressly waived pursuant to section 
     207(a)(1) (C) through (E).
       (B) Exhaustion of remedies.--To the extent that members in 
     their capacity as allottees assert that this title impairs or 
     alters their present or future claims to water or constitutes 
     an injury to present or future water rights, the members 
     shall be required to exhaust their remedies pursuant to the 
     tribal water code prior to asserting claims against the 
     United States.
       (5) Claims against certain persons and entities in the 
     upper gila valley.--
       (A) By the community and the united states.--Except as 
     provided in the UVD agreement, the Community, on behalf of 
     the Community and Community members (but not members in their 
     capacities as allottees), and the United States on behalf of 
     the Community and Community members (but not members in their 
     capacities as allottees), are authorized, as part of the 
     performance of obligations under the UVD agreement, to 
     execute a waiver and release of the following claims against 
     the UV signatories and the UV Non-signatories (and the 
     predecessors in interest of each) for--
       (i)(I) past, present, and future claims for water rights 
     for land within the exterior boundaries of the Reservation 
     and the San Carlos Irrigation Project arising from time 
     immemorial and, thereafter, forever; and
       (II) past, present, and future claims for water rights 
     arising from time immemorial and, thereafter, forever, that 
     are based on aboriginal occupancy of land by the Community, 
     Community members, or predecessors of the Community or 
     Community members;
       (ii)(I) past, present, and future claims for injuries to 
     water rights for land within the exterior boundaries of the 
     Reservation or the San Carlos Irrigation Project arising from 
     time immemorial and, thereafter, forever;

[[Page 23786]]

       (II) past, present, and future claims for injury to water 
     rights arising from time immemorial and, thereafter, forever, 
     that are based on aboriginal occupancy of land by the 
     Community, Community members, or predecessors of Community 
     members, for so long as and to the extent that any individual 
     beneficiary of such waiver is acting in a manner that is 
     consistent with and not in violation of or contrary to the 
     terms, conditions, requirements, limitations, or other 
     provisions of the UVD agreement;
       (III) claims for injury to water rights arising after the 
     enforceability date for land within the exterior boundaries 
     of the Reservation and the San Carlos Irrigation Project, 
     resulting from the diversion, pumping, or use of water in a 
     manner that is consistent with and not in violation of or 
     contrary to the terms, conditions, limitations, requirements, 
     or provisions of the UVD agreement; and
       (IV) claims for injury to water rights arising after the 
     enforceability date for water rights transferred to the 
     Project pursuant to section 211 resulting from the diversion, 
     pumping or use of water in a manner that is consistent with 
     and not in violation of or contrary to the terms, conditions, 
     limitations, requirements, or provisions of the UVD 
     agreement;
       (iii)(I) past, present, and future claims for injuries to 
     water rights arising out of or relating to the use of water 
     rights appurtenant to New Mexico 381 acres, on the conditions 
     that such water rights remain subject to the oversight and 
     reporting requirements set forth in the decree in Arizona v. 
     California, 376 U.S. 340 (1964), and that the State of New 
     Mexico shall make available on request a copy of any records 
     prepared pursuant to that decree; and
       (II) past, present, and future claims arising out of and 
     relating to the use of water rights for New Mexico domestic 
     purposes, on the conditions that such water rights remain 
     subject to the oversight and reporting requirements set forth 
     in the decree in Arizona v. California, 376 U.S. 340 (1964), 
     and that the State of New Mexico shall make available on 
     request a copy of any records prepared pursuant to that 
     decree; and
       (iv) past, present, and future claims arising out of or 
     relating to the negotiation or execution of the UVD 
     agreement, or the negotiation or enactment of titles I and 
     II.
       (B) By the united states on behalf of allottees.--Except as 
     provided in the UVD agreement, to the extent consistent with 
     this section, the United States as trustee for the allottees, 
     as part of the performance under the UVD agreement, is 
     authorized to execute a waiver and release of the following 
     claims under Federal, State, or other law against the UV 
     signatories and the UV Non-signatories (and the predecessors 
     in interest of each) for--
       (i)(I) past, present, and future claims for water rights 
     for land within the exterior boundaries of the Reservation 
     arising from time immemorial, and thereafter, forever; and
       (II) past, present, and future claims for water rights 
     arising from time immemorial and, thereafter, forever, that 
     are based on aboriginal occupancy of lands by allottees or 
     their predecessors;
       (ii)(I) past and present claims for injury to water rights 
     for lands within the exterior boundaries of the Reservation 
     arising from time immemorial, through the enforceability 
     date, for so long as and to the extent that any individual 
     beneficiary of such waiver is acting in a manner that is 
     consistent with and not in violation of or contrary to the 
     terms, conditions, requirements, limitations, or other 
     provisions of the UVD agreement;
       (II) past, present, and future claims for injury to water 
     rights arising from time immemorial and, thereafter, forever, 
     that are based on aboriginal occupancy of lands by allottees 
     or their predecessors, for so long as and to the extent that 
     any individual beneficiary of such waiver is acting in a 
     manner that is consistent with and not in violation of or 
     contrary to the terms, conditions, requirements, limitations, 
     or other provisions of the UVD agreement; and
       (III) claims for injury to water rights for land within the 
     exterior boundaries of the Reservation arising after the 
     enforceability date resulting from the diversion, pumping, or 
     use of water in a manner that is consistent with and not in 
     violation of or contrary to the terms, conditions, 
     limitations, requirements, or provisions of the UVD 
     agreement;
       (iii)(I) past, present, and future claims for injuries to 
     water rights arising out of or relating to the use of water 
     rights appurtenant to New Mexico 381 acres, on the conditions 
     that such water rights remain subject to the oversight and 
     reporting requirements set forth in the decree in Arizona v. 
     California, 376 U.S. 340 (1964), as supplemented, and that 
     the State of New Mexico shall make available on request a 
     copy of any records prepared pursuant to that decree; and
       (II) past, present, and future claims arising out of or 
     relating to the use of water rights for New Mexico domestic 
     purposes, on the conditions that such water rights remain 
     subject to the oversight and reporting requirements set forth 
     in the decree in Arizona v. California, 376 U.S. 340 (1964), 
     as supplemented, and that the State of New Mexico shall make 
     available on request a copy of any records prepared pursuant 
     to that decree; and
       (iv) past, present, and future claims arising out of or 
     relating to the negotiation or execution of the UVD 
     agreement, or the negotiation or enactment of titles I and 
     II.
       (C) Additional waiver of certain claims by the United 
     States.--Except as provided in the UVD Agreement, the United 
     States (to the extent the waiver and release authorized by 
     this subparagraph is not duplicative of the waiver and 
     release provided in subparagraph (B) and to the extent the 
     United States holds legal title to (but not the beneficial 
     interest in) the water rights as described in article V or VI 
     of the Globe Equity Decree (but not on behalf of the San 
     Carlos Apache Tribe pursuant to article VI(2) of the Globe 
     Equity Decree) on behalf of lands within the San Carlos 
     Irrigation and Drainage District and the Miscellaneous Flow 
     Lands) shall execute a waiver and release of the following 
     claims under Federal, State or other law against the UV 
     signatories and the UV Non-signatories (and the predecessors 
     of each) for--
       (i) past, present, and future claims for water rights for 
     land within the San Carlos Irrigation and Drainage District 
     and the Miscellaneous Flow Lands arising from time 
     immemorial, and thereafter, forever;
       (ii)(I) past and present claims for injury to water rights 
     for land within the San Carlos Irrigation and Drainage 
     District and the Miscellaneous Flow Lands arising from time 
     immemorial through the enforceability date, for so long as 
     and to the extent that any individual beneficiary of such 
     waiver is acting in a manner that is consistent with and not 
     in violation of or contrary to the terms, conditions, 
     requirements, limitations, or other provisions of the UVD 
     agreement;
       (II) claims for injury to water rights arising after the 
     enforceability date for land within the San Carlos Irrigation 
     and Drainage District and the Miscellaneous Flow Lands 
     resulting from the diversion, pumping, or use of water in a 
     manner that is consistent with and not in violation of or 
     contrary to the terms, conditions, limitations, requirements, 
     or provisions of the UVD agreement;
       (iii)(I) past, present, and future claims for injuries to 
     water rights arising out of or relating to the use of water 
     rights appurtenant to New Mexico 381 acres, on the conditions 
     that such water rights remain subject to the oversight and 
     reporting requirements set forth in the decree in Arizona v. 
     California, 376 U.S. 340 (1964), as supplemented, and that 
     the State of New Mexico shall make available on request a 
     copy of any records prepared pursuant to that decree; and
       (II) past, present, and future claims arising out of or 
     relating to the use of water rights for New Mexico domestic 
     purposes, on the conditions that such water rights remain 
     subject to the oversight and reporting requirements set forth 
     in the decree in Arizona v. California, 376 U.S. 340 (1964), 
     as supplemented, and that the State of New Mexico shall make 
     available on request a copy of any records prepared pursuant 
     to that decree; and
       (iv) past, present, and future claims arising out of or 
     relating to the negotiation or execution of the UVD 
     agreement, or the negotiation or enactment of titles I and 
     II.
       (6) Tribal water quality standards.--The Community, on 
     behalf of the Community and Community members, as part of the 
     performance of its obligations under the Gila River 
     agreement, is authorized to agree never to adopt any water 
     quality standards, or ask the United States to promulgate 
     such standards, that are more stringent than water quality 
     standards adopted by the State if the Community's adoption of 
     such standards could result in the imposition by the State or 
     the United States of more stringent water quality limitations 
     or requirements than those that would otherwise be imposed by 
     the State or the United States on--
       (A) any water delivery system used to deliver water to the 
     Community; or
       (B) the discharge of water into any such system.
       (b) Effectiveness of Waiver and Releases.--
       (1) In general.--The waivers under paragraphs (1) and (3) 
     through (5) of subsection (a) shall become effective on the 
     enforceability date.
       (2) Claims for subsidence damage.--The waiver under 
     subsection (a)(2) shall become effective on execution of the 
     waiver by--
       (A) the Community, a Community member, or an allottee; and
       (B) the United States, on behalf of the Community, a 
     Community member, or an allottee.
       (c) Enforceability Date.--
       (1) In general.--This section takes effect on the date on 
     which the Secretary publishes in the Federal Register a 
     statement of findings that--
       (A) to the extent the Gila River agreement conflicts with 
     this title, the Gila River agreement has been revised through 
     an amendment to eliminate the conflict and the Gila River 
     agreement, so revised, has been executed by the Secretary and 
     the Governor of the State;

[[Page 23787]]

       (B) the Secretary has fulfilled the requirements of--
       (i) paragraphs (1)(A)(i) and (2) of subsection (a) and 
     subsections (b) and (d) of section 104; and
       (ii) sections 204, 205, and 209(a);
       (C) the master agreement authorized, ratified, and 
     confirmed by section 106(a) has been executed by the parties 
     to the master agreement, and all conditions to the 
     enforceability of the master agreement have been satisfied;
       (D) $53,000,000 has been identified and retained in the 
     Lower Colorado River Basin Development Fund for the benefit 
     of the Community in accordance with section 107(b);
       (E) the State has appropriated and paid to the Community 
     any amount to be paid under paragraph 27.4 of the Gila River 
     agreement;
       (F) the Salt River Project has paid to the Community 
     $500,000 under subparagraph 16.9 of the Gila River agreement;
       (G) the judgments and decrees attached to the Gila River 
     agreement as exhibits 25.18A (Gila River adjudication 
     proceedings) and 25.18B (Globe Equity Decree proceedings) 
     have been approved by the respective courts;
       (H) the dismissals attached to the Gila River agreement as 
     exhibits 25.17.1A and B, 25.17.2, and 25.17.3A and B have 
     been filed with the respective courts and any necessary 
     dismissal orders entered;
       (I) legislation has been enacted by the State to--
       (i) implement the Southside Replenishment Program in 
     accordance with subparagraph 5.3 of the Gila River agreement;
       (ii) authorize the firming program required by section 105; 
     and
       (iii) establish the Upper Gila River Watershed Maintenance 
     Program in accordance with subparagraph 26.8.1 of the Gila 
     River agreement;
       (J) the State has entered into an agreement with the 
     Secretary to carry out the obligation of the State under 
     section 105(b)(2)(A); and
       (K) a final judgment has been entered in Central Arizona 
     Water Conservation District v. United States (No. CIV 95-625-
     TUC-WDB(EHC), No. CIV 95-1720PHX-EHC) (Consolidated Action) 
     in accordance with the repayment stipulation.
       (2) Failure of enforceability date to occur.--If, because 
     of the failure of the enforceability date to occur by 
     December 31, 2007, this section does not become effective, 
     the Community, Community members, and allottees, and the 
     United States on behalf of the San Carlos Irrigation and 
     Drainage District, the Community, Community members, and 
     allottees, shall retain the right to assert past, present, 
     and future water rights claims, claims for injury to water 
     rights, claims for injury to water quality, and claims for 
     subsidence damage as to all land within the exterior 
     boundaries of the Reservation, off-Reservation trust land, 
     and fee land.
       (d) All Land Within Exterior Boundaries of the 
     Reservation.--Notwithstanding section 2(42), for purposes of 
     this section, section 206, and section 210(d)--
       (1) the term ``land within the exterior boundaries of the 
     Reservation'' includes--
       (A) land within the Reservation created pursuant to the Act 
     of February 28, 1859, and modified by the executive orders of 
     August 31, 1876, June 14, 1879, May 5, 1882, November 15, 
     1883, July 31, 1911, June 2, 1913, August 27, 1914, and July 
     19, 1915; and
       (B) land located in sections 16 and 36, T. 4 S., R. 4 E., 
     Salt and Gila River Baseline and Meridian; and
       (2) the term ``off-Reservation'' refers to land located 
     outside the exterior boundaries of the Reservation (as 
     defined in paragraph (1)).
       (e) No Rights to Water.--Upon the occurrence of the 
     enforceability date--
       (1) all land held by the United States in trust for the 
     Community, Community members, and allottees and all land held 
     by the Community within the exterior boundaries of the 
     Reservation shall have no rights to water other than those 
     specifically granted to the Community and the United States 
     for the Reservation pursuant to paragraph 4.0 of the Gila 
     River agreement; and
       (2) all water usage on land within the exterior boundaries 
     of the Reservation, including the land located in sections 16 
     and 36, T. 4 S., R. 4 E., Salt and Gila River Baseline and 
     Meridian, upon acquisition by the Community or the United 
     States on behalf of the Community, shall be taken into 
     account in determining compliance by the Community and the 
     United States with the limitations on total diversions 
     specified in subparagraph 4.2 of the Gila River agreement.

     SEC. 208. GILA RIVER INDIAN COMMUNITY WATER OM&R TRUST FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Gila River 
     Indian Community Water OM&R Fund'', to be managed and 
     invested by the Secretary, consisting of $53,000,000, the 
     amount made available for this purpose under paragraph (2)(B) 
     of section 403(f) of the Colorado River Basin Project Act (43 
     U.S.C. 1543(f)) (as amended by section 107(a)).
       (b) Management.--The Secretary shall manage the Water OM&R 
     Fund, make investments from the Fund, and make monies 
     available from the Fund for distribution to the Community 
     consistent with the American Indian Trust Fund Management 
     Reform Act of 1994 (25 U.S.C. 4001 et seq.), hereafter 
     referred to in this section as the ``Trust Fund Reform Act''.
       (c) Investment of the Fund.--The Secretary shall invest 
     amounts in the Fund in accordance with--
       (1) the Act of April 1, 1880 (21 Stat. 70, chapter 41; 25 
     U.S.C. 161);
       (2) the first section of the Act of June 24, 1938 (52 Stat. 
     1037, chapter 648; 25 U.S.C. 162a); and
       (3) subsection (b).
       (d) Expenditures and Withdrawals.--
       (1) Tribal management plan.--
       (A) In general.--The Community may withdraw all or part of 
     the Water OM&R Fund on approval by the Secretary of a tribal 
     management plan as described in the Trust Fund Reform Act.
       (B) Requirements.--In addition to the requirements under 
     the Trust Fund Reform Act, the tribal management plan shall 
     require that the Community only spend any funds, as provided 
     in the Gila River agreement, to assist in paying operation, 
     maintenance, and replacement costs associated with the 
     delivery of CAP water for Community purposes.
       (2) Enforcement.--The Secretary may take judicial or 
     administrative action to enforce the provisions of any tribal 
     management plan to ensure that the monies withdrawn from the 
     Water OM&R Fund are used in accordance with this Act.
       (3) Liability.--If the Community exercises the right to 
     withdraw monies from the Water OM&R Fund, neither the 
     Secretary nor the Secretary of the Treasury shall retain any 
     liability for the expenditure or investment of the monies 
     withdrawn.
       (4) Expenditure plan.--
       (A) In general.--The Community shall submit to the 
     Secretary for approval an expenditure plan for any portion of 
     the funds made available under this section that the 
     Community 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 
     Community remaining in the Water OM&R 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 Community shall submit to the 
     Secretary an annual report that describes all expenditures 
     from the Water OM&R Fund during the year covered by the 
     report.
       (e) No Distribution to Members.--No part of the principal 
     of the Water OM&R Fund, or of the interest or income accruing 
     on the principal, shall be distributed to any Community 
     member on a per capita basis.
       (f) Funds Not Available Until Enforceability Date.--Amounts 
     in the Water OM&R Fund shall not be available for expenditure 
     or withdrawal by the Community until the enforceability date, 
     or until January 1, 2010, whichever is later.

     SEC. 209. SUBSIDENCE REMEDIATION PROGRAM.

       (a) In General.--Subject to the availability of funds and 
     consistent with the provisions of section 107(a), the 
     Secretary shall establish a program under which the Bureau of 
     Reclamation shall repair and remediate subsidence damage and 
     related damage that occurs after the enforceability date.
       (b) Damage.--Under the program, the Community, a Community 
     member, or an allottee may submit to the Secretary a request 
     for the repair or remediation of--
       (1) subsidence damage; and
       (2) damage to personal property caused by the settling of 
     geologic strata or cracking in the earth's surface of any 
     length or depth, which settling or cracking is caused by 
     pumping of underground water.
       (c) Repair or Remediation.--The Secretary shall perform the 
     requested repair or remediation if--
       (1) the Secretary determines that the Community has not 
     exceeded its right to withdraw underground water under the 
     Gila River agreement; and
       (2) the Community, Community member, or allottee, and the 
     Secretary as trustee for the Community, Community member, or 
     allottee, execute a waiver and release of claim in the form 
     specified in exhibit 25.9.1, 25.9.2, or 25.9.3 to the Gila 
     River agreement, as applicable, to become effective on 
     satisfactory completion of the requested repair or 
     remediation, as determined under the Gila River agreement.
       (d) Specific Subsidence Damage.--Subject to the 
     availability of funds, the Secretary, acting through the 
     Commissioner of Reclamation, shall repair, remediate, and 
     rehabilitate the subsidence damage that has occurred to land 
     before the enforceability date within the Reservation, as 
     specified in exhibit 30.21 to the Gila River agreement.

     SEC. 210. AFTER-ACQUIRED TRUST LAND.

       (a) Requirement of Act of Congress.--The Community may seek 
     to have legal title to additional land in the State located 
     outside the exterior boundaries of the Reservation taken into 
     trust by the United States for the benefit of the Community 
     pursuant only to an Act of Congress enacted after the

[[Page 23788]]

     date of enactment of this Act specifically authorizing the 
     transfer for the benefit of the Community.
       (b) Water Rights.--After-acquired trust land shall not 
     include federally reserved rights to surface water or 
     groundwater.
       (c) Sense of Congress.--It is the sense of Congress that 
     future Acts of Congress authorizing land to be taken into 
     trust under subsection (a) should provide that such land will 
     have only such water rights and water use privileges as would 
     be consistent with State water law and State water management 
     policy.
       (d) Acceptance of Land in Trust Status.--
       (1) In general.--If the Community acquires legal fee title 
     to land that is located within the exterior boundaries of the 
     Reservation (as defined in section 207(d)), the Secretary 
     shall accept the land in trust status for the benefit of the 
     Community upon receipt by the Secretary of a submission from 
     the Community that provides evidence that--
       (A) the land meets the Department of the Interior's minimum 
     environmental standards and requirements for real estate 
     acquisitions set forth in 602 DM 2.6, or any similar 
     successor standards or requirements for real estate 
     acquisitions in effect on the date of the Community's 
     submission; and
       (B) the title to the land meets applicable Federal title 
     standards in effect on the date of the Community's 
     submission.
       (2) Reservation status.--Land taken or held in trust by the 
     Secretary under paragraph (1) shall be deemed part of the 
     Community's reservation.

     SEC. 211. REDUCTION OF WATER RIGHTS.

       (a) Reduction of TBI Eligible Acres.--
       (1) In general.--Consistent with this title and as provided 
     in the UVD agreement to assist in reducing the total water 
     demand for irrigation use in the upper valley of the Gila 
     River, the Secretary shall provide funds to the Gila Valley 
     Irrigation District and the Franklin Irrigation District 
     (hereafter in this section referred to as ``the Districts'') 
     for the acquisition of UV decreed water rights and the 
     extinguishment of those rights to decrease demands on the 
     Gila River, or severance and transfer of those rights to the 
     San Carlos Irrigation Project for the benefit of the 
     Community and the San Carlos Irrigation and Drainage District 
     in accordance with applicable law.
       (2) Acquisitions.--
       (A) Required phase i acquisition.--Not later than December 
     31 of the third calendar year that begins after the 
     enforceability date (or December 31 of the first calendar 
     year that begins after the payment provided by subparagraph 
     (D)(iii), if later), the Districts shall acquire the UV 
     decreed water rights appurtenant to 1,000 acres of land 
     (other than special hot lands).
       (B) Required phase ii acquisition.--Not later than December 
     31 of the sixth calendar year that begins after the 
     enforceability date (or December 31 of the first calendar 
     year that begins after the payment provided by subparagraph 
     (D)(iii), if later), the Districts shall acquire the UV 
     decreed water rights appurtenant to 1,000 acres of land 
     (other than special hot lands). The reduction of TBI eligible 
     acres under this subparagraph shall be in addition to that 
     accomplished under subparagraph (A).
       (C) Additional acquisition in case of settlement.--If the 
     San Carlos Apache Tribe reaches a comprehensive settlement 
     that is approved by Congress and finally approved by all 
     courts the approval of which is required, the Secretary shall 
     offer to acquire for fair market value the UV decreed water 
     rights associated with not less than 500 nor more than 3,000 
     TBI eligible acres of land (other than special hot lands).
       (D) Methods of acquisition for rights acquired pursuant to 
     subparagraphs (a) and (b).--
       (i) Determination of value.--

       (I) Appraisals.--Not later than December 31 of the first 
     calendar year that begins after the enforceability date in 
     the case of the phase I acquisition, and not later than 
     December 31 of the fourth calendar year that begins after the 
     enforceability date in the case of the phase II acquisition, 
     the Districts shall submit to the Secretary an appraisal of 
     the average value of water rights appurtenant to 1,000 TBI 
     eligible acres.
       (II) Review.--The Secretary shall review the appraisal 
     submitted to ensure its consistency with the Uniform 
     Appraisal Standards for Federal Land Acquisition and notify 
     the Districts of the results of the review within 30 days of 
     submission of the appraisal. In the event that the Secretary 
     finds that the appraisal is not consistent with such 
     standards, the Secretary shall so notify the Districts with a 
     full explanation of the reasons for that finding. Within 60 
     days of being notified by the Secretary that the appraisal is 
     not consistent with such Standards, the Districts shall 
     resubmit an appraisal to the Secretary that is consistent 
     with such standards. The Secretary shall review the 
     resubmitted appraisal to ensure its consistency with 
     nationally approved standards and notify the Districts of the 
     results of the review within 30 days of resubmission.
       (III) Petition.--In the event that the Secretary finds that 
     such resubmitted appraisal is not consistent with those 
     Standards, either the Districts or the Secretary may petition 
     a Federal court in the District of Arizona for a 
     determination of whether the appraisal is consistent with 
     nationally approved Standards. If such court finds the 
     appraisal is so consistent, the value stated in the appraisal 
     shall be final for all purposes. If such court finds the 
     appraisal is not so consistent, the court shall determine the 
     average value of water rights appurtenant to 1,000 TBI 
     eligible acres.
       (IV) No objection.--If the Secretary does not object to an 
     appraisal within the time periods provided in this clause 
     (i), the value determined in the appraisal shall be final for 
     all purposes.

       (ii) Appraisal.--In determining the value of water rights 
     pursuant to this paragraph, any court, the Districts, the 
     Secretary, and any appraiser shall take into account the 
     obligations the owner of the land (to which the rights are 
     appurtenant) will have after acquisition for phreatophyle 
     control as provided in the UVD agreement and to comply with 
     environmental laws because of the acquisition and severance 
     and transfer or extinguishment of the water rights.
       (iii) Payment.--No more than 30 days after the average 
     value of water rights appurtenant to 1,000 acres of land has 
     been determined in accordance with clauses (i) and (ii), the 
     Secretary shall pay 125 percent of such values to the 
     Districts.
       (iv) Reduction of acreage.--No later than December 31 of 
     the first calendar year that begins after each such payment, 
     the Districts shall acquire the UV decreed water rights 
     appurtenant to one thousand (1,000) acres of lands that would 
     have been included in the calculation of TBI eligible acres 
     (other than special hot lands), if the calculation of TBI 
     eligible acres had been undertaken at the time of 
     acquisition. To the extent possible, the Districts shall 
     select the rights to be acquired in compliance with 
     subsection 5.3.7 of the UVD agreement.
       (3) Reduction of tbi eligible acres.--Simultaneously with 
     the acquisition of UV decreed water rights under paragraph 
     (2), the number of TBI eligible acres, but not the number of 
     acres of UV subjugated land, shall be reduced by the number 
     of acres associated with those UV decreed water rights.
       (4) Alternatives to acquisition.--
       (A) Special hot lands.--After the payments provided by 
     paragraph (2)(D)(iii), the Districts may fulfill the 
     requirements of paragraphs (2) and (3) in full or in part, by 
     entering into an agreement with an owner of special hot lands 
     to prohibit permanently future irrigation of the special hot 
     lands if the UVD settling parties simultaneously--
       (i) acquire UV decreed water rights associated with a like 
     number of UV decreed acres that are not TBI eligible acres; 
     and
       (ii) sever and transfer those rights to the San Carlos 
     Irrigation Project for the benefit of the Community and the 
     San Carlos Irrigation and Drainage District.
       (B) Fallowing agreement.--After the payment provided by 
     paragraph (2)(D)(iii), the Districts may fulfill the 
     requirements of paragraphs (2) and (3) in full or in part, by 
     entering into an agreement with 1 or more owners of UV 
     decreed acres and the UV irrigation district in which the 
     acres are located, if any, under which--
       (i) the number of TBI eligible acres is reduced; but
       (ii) the owner of the UV decreed acres subject to the 
     reduction is permitted to periodically irrigate the UV 
     decreed acres under a fallowing agreement authorized under 
     the UVD agreement.
       (5) Disposition of acquired water rights.--
       (A) In general.--Of the UV decreed water rights acquired by 
     the Districts pursuant to subparagraphs (A) and (B) of 
     paragraph (2), the Districts shall, in accordance with all 
     applicable law and the UVD agreement--
       (i) sever, and transfer to the San Carlos Irrigation 
     Project for the benefit of the Community and the San Carlos 
     Irrigation and Drainage District, the UV decreed water rights 
     associated with up to 900 UV decreed acres; and
       (ii) extinguish the balance of the UV decreed water rights 
     so acquired (except and only to the extent that those rights 
     are associated with a fallowing agreement authorized under 
     paragraph (4)(B)).
       (B) San carlos apache settlement.--With respect to water 
     rights acquired by the Secretary pursuant to paragraph 
     (2)(C), the Secretary shall, in accordance with applicable 
     law--
       (i) cause to be severed and transferred to the San Carlos 
     Irrigation Project, for the benefit of the Community and the 
     San Carlos Irrigation and Drainage District, the UV decreed 
     water rights associated with 200 UV decreed acres;
       (ii) cause to be extinguished the UV decreed water rights 
     associated with 300 UV decreed acres; and
       (iii) cause to be transferred the balance of those acquired 
     water rights to the San Carlos Apache Tribe pursuant to the 
     terms of the settlement described in paragraph (2)(C).
       (6) Mitigation.--To the extent the Districts, after the 
     payments provided by paragraph (2)(D)(iii), do not comply 
     with the acquisition requirements of paragraph (2) or 
     otherwise comply with the alternatives to acquisition 
     provided by paragraph (4), the

[[Page 23789]]

     Districts shall provide mitigation to the San Carlos 
     Irrigation Project as provided by the UVD agreement.
       (b) Additional Reductions.--
       (1) Cooperative program.--In addition to the reduction of 
     TBI eligible acres to be accomplished under subsection (a), 
     not later than 1 year after the enforceability date, the 
     Secretary and the UVD settling parties shall cooperatively 
     establish a program to purchase and extinguish UV decreed 
     water rights associated with UV decreed acres that have not 
     been recently irrigated.
       (2) Focus.--The primary focus of the program under 
     paragraph (1) shall be to prevent any land that contains 
     riparian habitat from being reclaimed for irrigation.
       (3) Funds and resources.--The program under this subsection 
     shall not require any expenditure of funds, or commitment of 
     resources, by the UVD signatories other than such incidental 
     expenditures of funds and commitments of resources as are 
     required to cooperatively participate in the program.

     SEC. 212. NEW MEXICO UNIT OF THE CENTRAL ARIZONA PROJECT.

       (a) Required Approvals.--The Secretary shall not execute 
     the Gila River agreement pursuant to section 203(b), and the 
     agreement shall not become effective, unless and until the 
     New Mexico Consumptive Use and Forbearance Agreement has been 
     executed by all signatory parties and approved by the State 
     of New Mexico.
       (b) New Mexico Consumptive Use and Forbearance Agreement.--
       (1) In general.--Except to the extent a provision of the 
     New Mexico Consumptive Use and Forbearance Agreement 
     conflicts with a provision of this title, the New Mexico 
     Consumptive Use and Forbearance Agreement is authorized, 
     ratified, and confirmed. To the extent amendments are 
     executed to make the New Mexico Consumptive Use and 
     Forbearance Agreement consistent with this title, such 
     amendments are also authorized, ratified, and confirmed.
       (2) Execution.--To the extent the New Mexico Consumptive 
     Use and Forbearance Agreement does not conflict with this 
     title, the Secretary shall execute the New Mexico Consumptive 
     Use and Forbearance Agreement, including all exhibits to 
     which the Secretary is a party to the New Mexico Consumptive 
     Use and Forbearance Agreement and any amendments to the New 
     Mexico Consumptive Use and Forbearance necessary to make it 
     consistent with this title.
       (c) New Mexico Unit Agreement.--The Secretary is authorized 
     to execute the New Mexico Unit Agreement, which agreement 
     shall be executed within 1 year of receipt by the Secretary 
     of written notice from the State of New Mexico that the State 
     of New Mexico intends to build the New Mexico Unit, which 
     notice must be received not later than December 31, 2014. The 
     New Mexico Unit Agreement shall, among other things, provide 
     that--
       (1) all funds from the Lower Colorado River Basin 
     Development Fund disbursed in accordance with section 
     403(f)(2)(D) (i) and (ii) of the Colorado River Basin Project 
     Act (as amended by section 107(a)) shall be nonreimbursable 
     (and such costs shall be excluded from the repayment 
     obligation, if any, of the NM CAP entity under the New Mexico 
     Unit Agreement);
       (2) in determining payment for CAP water under the New 
     Mexico Unit Agreement, the NM CAP entity shall be responsible 
     only for its share of operations, maintenance, and 
     replacement costs (and no capital costs attendant to other 
     units or portions of the Central Arizona Project shall be 
     charged to the NM CAP entity);
       (3) upon request by the NM CAP entity, the Secretary shall 
     transfer to the NM CAP entity the responsibility to design, 
     build, or operate and maintain the New Mexico Unit, or all or 
     any combination of those responsibilities, provided that the 
     Secretary shall not transfer the authority to divert water 
     pursuant to the New Mexico Consumptive Use and Forbearance 
     Agreement, provided further that the Secretary, shall remain 
     responsible to the parties to the New Mexico Consumptive Use 
     and Forbearance Agreement for the NM CAP entity's compliance 
     with the terms and conditions of that agreement;
       (4) the Secretary shall divert water and otherwise exercise 
     her rights and authorities pursuant to the New Mexico 
     Consumptive Use and Forbearance Agreement solely for the 
     benefit of the NM CAP entity and for no other purpose;
       (5) the NM CAP entity shall own and hold title to all 
     portions of the New Mexico Unit constructed pursuant to the 
     New Mexico Unit Agreement; and
       (6) the Secretary shall provide a waiver of sovereign 
     immunity for the sole and exclusive purpose of resolving a 
     dispute in Federal court of any claim, dispute, or 
     disagreement arising under the New Mexico Unit Agreement.
       (d) Amendment to Section 304.--Section 304(f) of the 
     Colorado River Basin Project Act (43 U.S.C. 1524(f)) is 
     amended--
       (1) by striking paragraph (1) and inserting the following: 
     ``(1) In the operation of the Central Arizona Project, the 
     Secretary shall offer to contract with water users in the 
     State of New Mexico, with the approval of its Interstate 
     Stream Commission, or with the State of New Mexico, through 
     its Interstate Stream Commission, for water from the Gila 
     River, its tributaries and underground water sources in 
     amounts that will permit consumptive use of water in New 
     Mexico of not to exceed an annual average in any period of 10 
     consecutive years of 14,000 acre-feet, including reservoir 
     evaporation, over and above the consumptive uses provided for 
     by article IV of the decree of the Supreme Court of the 
     United States in Arizona v. California (376 U.S. 340). Such 
     increased consumptive uses shall continue only so long as 
     delivery of Colorado River water to downstream Gila River 
     users in Arizona is being accomplished in accordance with 
     this Act, in quantities sufficient to replace any diminution 
     of their supply resulting from such diversion from the Gila 
     River, its tributaries and underground water sources. In 
     determining the amount required for this purpose, full 
     consideration shall be given to any differences in the 
     quality of the water involved.'';
       (2) by striking paragraph (2); and
       (3) by redesignating paragraph (3) as paragraph (2).
       (e) Cost Limitation.--In determining payment for CAP water 
     under the New Mexico Consumptive Use and Forbearance 
     Agreement, the NM CAP entity shall be responsible only for 
     its share of operations, maintenance, and repair costs. No 
     capital costs attendant to other Units or portions of the 
     Central Arizona Project shall be charged to the NM CAP 
     entity.
       (f) Exclusion of Costs.--For the purpose of determining the 
     allocation and repayment of costs of the Central Arizona 
     Project under the CAP Repayment Contract, the costs 
     associated with the New Mexico Unit and the delivery of 
     Central Arizona Project water pursuant to the New Mexico 
     Consumptive Use and Forbearance Agreement shall be 
     nonreimbursable, and such costs shall be excluded from the 
     Central Arizona Water Conservation District's repayment 
     obligation.
       (g) New Mexico Unit Construction and Operations.--The 
     Secretary is authorized to design, build, and operate and 
     maintain the New Mexico Unit. Upon request by the State of 
     New Mexico, the Secretary shall transfer to the NM CAP entity 
     responsibility to design, build, or operate and maintain the 
     New Mexico Unit, or all or any combination of those 
     functions.
       (h) National Environmental Policy Act.--
       (1) Environmental compliance.--Upon execution of the New 
     Mexico Consumptive Use and Forbearance Agreement and the New 
     Mexico Unit Agreement, the Secretary shall promptly comply 
     with all aspects of the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.), the Endangered Species Act of 
     1973 (16 U.S.C. 1531 et seq.), and all other applicable 
     environmental Acts and regulations.
       (2) Execution of the new mexico consumptive use and 
     forbearance agreement and the new mexico unit agreement.--
     Execution of the New Mexico Consumptive Use and Forbearance 
     Agreement and the New Mexico Unit Agreement by the Secretary 
     under this section shall not constitute a major Federal 
     action under the National Environmental Policy Act (42 U.S.C. 
     4321 et seq.). The Secretary is directed to carry out all 
     necessary environmental compliance required by Federal law in 
     implementing the New Mexico Consumptive Use and Forbearance 
     Agreement and the New Mexico Unit Agreement.
       (3) Lead agency.--The Bureau of Reclamation shall be 
     designated as the lead agency with respect to environmental 
     compliance. Upon request by the State of New Mexico to the 
     Secretary, the State of New Mexico shall be designated as 
     joint lead agency with respect to environmental compliance.
       (i) New Mexico Unit Fund.--The Secretary shall deposit the 
     amounts made available under paragraph (2)(D)(i) of section 
     403(f) of the Colorado River Basin Project Act (43 U.S.C. 
     1543(f)) (as amended by section 107(a)) into the New Mexico 
     Unit Fund, a State of New Mexico Fund established and 
     administered by the New Mexico Interstate Stream Commission. 
     Withdrawals from the New Mexico Unit Fund shall be for the 
     purpose of paying costs of the New Mexico Unit or other water 
     utilization alternatives to meet water supply demands in the 
     Southwest Water Planning Region of New Mexico, as determined 
     by the New Mexico Interstate Stream Commission in 
     consultation with the Southwest New Mexico Water Study Group 
     or its successor, including costs associated with planning 
     and environmental compliance activities and environmental 
     mitigation and restoration.
       (j) Additional Funding for New Mexico Unit.--The Secretary 
     shall pay for an additional portion of the costs of 
     constructing the New Mexico Unit from funds made available 
     under paragraph (2)(D)(ii) of section 403(f) of the Colorado 
     River Basin Project Act (43 U.S.C. 1543(f)) (as amended by 
     section 107(a)) on a construction schedule basis, up to a 
     maximum amount under this subparagraph (j) of $34,000,000, as 
     adjusted to reflect changes since January 1, 2004, in the 
     construction cost indices applicable to the types of 
     construction involved in construction of the New Mexico Unit, 
     upon satisfaction of the conditions that--
       (1) the State of New Mexico must provide notice to the 
     Secretary in writing not later than December 31, 2014, that 
     the State of

[[Page 23790]]

     New Mexico intends to have constructed or developed the New 
     Mexico Unit; and
       (2) the Secretary must have issued in the Federal Register 
     not later than December 31, 2019, a Record of Decision 
     approving the project based on an environmental analysis 
     required pursuant to applicable Federal law and on a 
     demonstration that construction of a project for the New 
     Mexico Unit that would deliver an average annual safe yield, 
     based on a 50-year planning period, greater than 10,000 acre 
     feet per year, would not cost more per acre foot of water 
     diverted than a project sized to produce an average annual 
     safe yield of 10,000 acre feet per year. If New Mexico 
     exercises all reasonable efforts to obtain the issuance of 
     such Record of Decision, but the Secretary is not able to 
     issue such Record of Decision by December 31, 2019, for 
     reasons outside the control of the State of New Mexico, the 
     Secretary may extend the deadline for a reasonable period of 
     time, not to extend beyond December 31, 2030.
       (k) Rate of Return Exceeding 4 Percent.--If the rate of 
     return on carryover funds held in the Lower Colorado Basin 
     Development Fund on the date that construction of the New 
     Mexico Unit is initiated exceeds an average effective annual 
     rate of 4 percent for the period beginning on the date of 
     enactment of this Act through the date of initiation of 
     construction of the New Mexico Unit, the Secretary shall pay 
     an additional portion of the costs of the construction costs 
     associated with the New Mexico Unit, on a construction 
     schedule basis, using funds made available under paragraph 
     (2)(D)(ii) of section 403(f) of the Colorado River Basin 
     Project Act (43 U.S.C. 1543(f)) (as amended by section 
     107(a)). The amount of such additional payments shall be 
     equal to 25 percent of the total return on the carryover 
     funds earned during the period in question that is in excess 
     of a return on such funds at an annual average effective 
     return of 4 percent, up to a maximum total of not more than 
     $28,000,000, as adjusted to reflect changes since January 1, 
     2004, in the construction cost indices applicable to the 
     types of construction involved in construction of the New 
     Mexico Unit.
       (l) Disclaimer.--Nothing in this Act shall affect, alter, 
     or diminish rights to use of water of the Gila River within 
     New Mexico, or the authority of the State of New Mexico to 
     administer such rights for use within the State, as such 
     rights are quantified by article IV of the decree of the 
     United States Supreme Court in Arizona v. California (376 
     U.S. 340).
       (m) Priority of Other Exchanges.--The Secretary shall not 
     approve any exchange of Gila River water for water supplied 
     by the CAP that would amend, alter, or conflict with the 
     exchanges authorized by section 304(f) of the Colorado River 
     Basin Project Act (43 U.S.C. 1524(f)).

     SEC. 213. MISCELLANEOUS PROVISIONS.

       (a) Waiver of Sovereign Immunity.--If any party to the Gila 
     River agreement or signatory to an exhibit executed pursuant 
     to section 203(b) or to the New Mexico Consumptive Use and 
     Forbearance Agreement brings an action in any court of the 
     United States or any State court relating only and directly 
     to the interpretation or enforcement of this title or the 
     Gila River agreement (including enforcement of any indemnity 
     provisions contained in the Gila River agreement) or the New 
     Mexico Consumptive Use and Forbearance Agreement, and names 
     the United States or the Community as a party, or if any 
     other landowner or water user in the Gila River basin in 
     Arizona (except any party referred to in subparagraph 28.1.4 
     of the Gila River agreement) files a lawsuit relating only 
     and directly to the interpretation or enforcement of 
     subparagraph 6.2, subparagraph 6.3, paragraph 25, 
     subparagraph 26.2, subparagraph 26.8, and subparagraph 28.1.3 
     of the Gila River agreement, naming the United States or the 
     Community as a party--
       (1) the United States, the Community, or both, may be 
     joined in any such action; and
       (2) any claim by the United States or the Community to 
     sovereign immunity from the action is waived, but only for 
     the limited and sole purpose of such interpretation or 
     enforcement (including any indemnity provisions contained in 
     the Gila River agreement).
       (b) Effect of Act.--Nothing in this title quantifies or 
     otherwise affects the water rights, or claims or entitlements 
     to water, of any Indian tribe, band, or community, other than 
     the Community.
       (c) Limitation on Claims for Reimbursement.--The United 
     States shall not make a claim for reimbursement of costs 
     arising out of the implementation of this title or the Gila 
     River agreement against any Indian-owned land within the 
     Reservation, and no assessment shall be made in regard to 
     those costs against that land.
       (d) No Effect on Future Allocations.--Water received under 
     a lease or exchange of Community CAP water under this title 
     shall not affect any future allocation or reallocation of CAP 
     water by the Secretary.
       (e) Community Repayment Contract.--To the extent it is not 
     in conflict with this Act, the Secretary is directed to and 
     shall execute Amendment No. 1 to the Community repayment 
     contract, attached as exhibit 8.1 to the Gila River 
     agreement, to provide, among other things, that the costs 
     incurred under that contract shall be nonreimbursable by the 
     Community. To the extent amendments are executed to make 
     Amendment No. 1 consistent with this title, such amendments 
     are also authorized, ratified, and confirmed.
       (f) Salt River Project Rights and Contracts.--
       (1) In general.--Subject to paragraph (2), the agreement 
     between the United States and the Salt River Valley Water 
     Users' Association dated September 6, 1917, as amended, and 
     the rights of the Salt River Project to store water from the 
     Salt River and Verde River at Roosevelt Dam, Horse Mesa Dam, 
     Mormon Flat Dam, Stewart Mountain Dam, Horseshoe Dam, and 
     Bartlett Dam and to deliver the stored water to shareholders 
     of the Salt River Project and others for all beneficial uses 
     and purposes recognized under State law and to the Community 
     under the Gila River agreement, are authorized, ratified, and 
     confirmed.
       (2) Priority date; quantification.--The priority date and 
     quantification of rights described in paragraph (1) shall be 
     determined in an appropriate proceeding in State court.
       (3) Care, operation, and maintenance.--The Salt River 
     Project shall retain authority and responsibility existing on 
     the date of enactment of this Act for decisions relating to 
     the care, operation, and maintenance of the Salt River 
     Project water delivery system, including the Salt River 
     Project reservoirs on the Salt River and Verde River, vested 
     in Salt River Project under the 1917 agreement, as amended, 
     described in paragraph (1).
       (g) UV Irrigation Districts.--
       (1) In general.--As partial consideration for obligations 
     the UV irrigation districts shall be undertaking, the 
     obligation to comply with the terms and conditions of term 5 
     of exhibit 2.30 (New Mexico Risk Allocation Terms) to the New 
     Mexico Consumptive Use and Forbearance Agreement, the Gila 
     Valley Irrigation District, in 2010, shall receive funds from 
     the Secretary in an amount of $15,000,000 (adjusted to 
     reflect changes since the date of enactment of this Act in 
     the cost indices applicable to the type of design and 
     construction involved in the design and construction of a 
     pipeline at or upstream from the Ft. Thomas Diversion Dam to 
     the lands farmed by the San Carlos Apache Tribe, together 
     with canal connections upstream from the Ft. Thomas Diversion 
     Dam and connection devices appropriate to introduce pumped 
     water into the Pipeline).
       (2) Restriction.--The funds to be received by the Gila 
     Valley Irrigation District shall be used solely for the 
     purpose of developing programs or constructing facilities to 
     assist with mitigating the risks and costs associated with 
     compliance with the terms and conditions of term 5 of exhibit 
     2.30 (New Mexico Risk Allocation Terms) of the New Mexico 
     Consumptive and Forbearance Agreement, and for no other 
     purpose.
       (h) Limitation on Liability of United States.--
       (1) In general.--The United States shall have no trust or 
     other obligation--
       (A) to monitor, administer, or account for, in any manner, 
     any of the funds paid to the Community by any party to the 
     Gila River agreement; or
       (B) to review or approve the expenditure of those funds.
       (2) Indemnification.--The Community shall indemnify the 
     United States, and hold the United States harmless, with 
     respect to any and all claims (including claims for takings 
     or breach of trust) arising out of the receipt or expenditure 
     of funds described in paragraph (1)(A).
       (i) Blue Ridge Project Transfer Authorization.--
       (1) Definitions.--In this subsection:
       (A) Blue ridge project.--The term ``Blue Ridge Project'' 
     means the water storage reservoir known as ``Blue Ridge 
     Reservoir'' situated in Coconino and Gila Counties, Arizona, 
     consisting generally of--
       (i) Blue Ridge Dam and all pipelines, tunnels, buildings, 
     hydroelectric generating facilities, and other structures of 
     every kind, transmission, telephone and fiber optic lines, 
     pumps, machinery, tools, and appliances; and
       (ii) all real or personal property, appurtenant to or used, 
     or constructed or otherwise acquired to be used, in 
     connection with Blue Ridge Reservoir.
       (B) Salt river project agricultural improvement and power 
     district.--The term ``Salt River Project Agricultural 
     Improvement and Power District'' means the Salt River Project 
     Agricultural Improvement and Power District, a political 
     subdivision of the State of Arizona.
       (2) Transfer of title.--The United States, acting through 
     the Secretary of the Interior, shall accept from the Salt 
     River Project Agricultural Improvement and Power District the 
     transfer of title to the Blue Ridge Project. The transfer of 
     title to the Blue Ridge Project from the Salt River Project 
     Agricultural Improvement and Power District to the United 
     States shall be without cost to the United States. The 
     transfer, change of use or change of place of use of any 
     water rights associated with the Blue Ridge Project shall be 
     made in accordance with Arizona law.
       (3) Use and benefit of salt river federal reclamation 
     project.--
       (A) In general.--Subject to subparagraph (B), the United 
     States shall hold title to the

[[Page 23791]]

     Blue Ridge Project for the exclusive use and benefit of the 
     Salt River Federal Reclamation Project.
       (B) Availability of water.--Up to 3,500 acre-feet of water 
     per year may be made available from Blue Ridge Reservoir for 
     municipal and domestic uses in Northern Gila County, Arizona, 
     without cost to the Salt River Federal Reclamation Project.
       (4) Termination of jurisdiction.--
       (A) Licensing and regulatory authority.--Upon the transfer 
     of title of the Blue Ridge Project to the United States under 
     paragraph (2), the Federal Energy Regulatory Commission shall 
     have no further licensing and regulatory authority over 
     Project Number 2304, the Blue Ridge Project, located within 
     the State.
       (B) Environmental laws.--All other applicable Federal 
     environmental laws shall continue to apply to the Blue Ridge 
     Project, including the Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.) and the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.).
       (5) Care, operation, and maintenance.--Upon the transfer of 
     title of the Blue Ridge Project to the United States under 
     paragraph (2), the Salt River Valley Water Users' Association 
     and the Salt River Project Agricultural Improvement and Power 
     District shall be responsible for the care, operation, and 
     maintenance of the project pursuant to the contract between 
     the United States and the Salt River Valley Water Users' 
     Association, dated September 6, 1917, as amended.
       (6) C.C. cragin dam & reservoir.--Upon the transfer of 
     title of the Blue Ridge Project to the United States under 
     paragraph (2), Blue Ridge Dam and Reservoir shall thereafter 
     be known as the ``C.C. Cragin Dam and Reservoir''.
       (j) Effect on Current Law; Jurisdiction of Courts.--Nothing 
     in this section--
       (1) alters law in effect on the day before the date of 
     enactment of this Act with respect to pre-enforcement review 
     of Federal environmental enforcement actions; or
       (2) confers jurisdiction on any State court to interpret 
     subparagraphs (D), (E), and (G) of section 207(a)(1) where 
     such jurisdiction does not otherwise exist.

     SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--
       (1) Rehabilitation of irrigation works.--
       (A) In general.--There is authorized to be appropriated 
     $52,396,000, adjusted to reflect changes since January 1, 
     2000, under subparagraph (B) for the rehabilitation of 
     irrigation works under section 203(d)(4).
       (B) Adjustment.--The amount under subparagraph (A) shall be 
     adjusted by such amounts, if any, as may be required by 
     reason of changes in construction costs as indicated by 
     engineering cost indices applicable to the types of 
     construction required by the rehabilitation.
       (2) Bureau of reclamation construction oversight.--There 
     are authorized to be appropriated such sums as are necessary 
     for the Bureau of Reclamation to undertake the oversight of 
     the construction projects authorized under section 203.
       (3) Subsidence remediation program.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     the subsidence remediation program under section 209 
     (including such sums as are necessary, not to exceed 
     $4,000,000, to carry out the subsidence remediation and 
     repair required under section 209(d)).
       (4) Water rights reduction.--There are authorized to be 
     appropriated such sums as are necessary to carry out the 
     water rights reduction program under section 211.
       (5) Safford facility.--There are authorized to be 
     appropriated such sums as are necessary to--
       (A) retire $13,900,000, minus any amounts appropriated for 
     this purpose, of the debt incurred by Safford to pay costs 
     associated with the construction of the Safford facility as 
     identified in exhibit 26.1 to the Gila River agreement; and
       (B) pay the interest accrued on that amount.
       (6) Environmental compliance.--There are authorized to be 
     appropriated--
       (A) such sums as are necessary to carry out--
       (i) all necessary environmental compliance activities 
     undertaken by the Secretary associated with the Gila River 
     agreement and this title;
       (ii) any mitigation measures adopted by the Secretary that 
     are the responsibility of the Community associated with the 
     construction of the diversion and delivery facilities of the 
     water referred to in section 204 for use on the reservation; 
     and
       (iii) no more than 50 percent of the cost of any mitigation 
     measures adopted by the Secretary that are the responsibility 
     of the Community associated with the diversion or delivery of 
     the water referred to in section 204 for use on the 
     Reservation, other than any responsibility related to water 
     delivered to any other person by lease or exchange; and
       (B) to carry out the mitigation measures in the Roosevelt 
     Habitat Conservation Plan, not more than $10,000,000.
       (7) UV irrigation districts.--There are authorized to be 
     appropriated such sums as are necessary to pay the Gila 
     Valley Irrigation District an amount of $15,000,000 (adjusted 
     to reflect changes since the date of enactment of the Arizona 
     Water Settlements Act of 2004 in the cost indices applicable 
     to the type of design and construction involved in the design 
     and construction of a pipeline at or upstream from the Ft. 
     Thomas Diversion Dam to the lands farmed by the San Carlos 
     Apache Tribe, together with canal connections upstream from 
     the Ft. Thomas Diversion Dam and connection devices 
     appropriate to introduce pumped water into the Pipeline).
       (b) Identified Costs.--
       (1) In general.--Amounts made available under subsection 
     (a) shall be considered to be identified costs for purposes 
     of paragraph (2)(D)(v)(I) of section 403(f) of the Colorado 
     River Basin Project Act (43 U.S.C. 1543(f)) (as amended by 
     section 107(a)).
       (2) Exception.--Amounts made available under subsection 
     (a)(4) to carry out section 211(b) shall not be considered to 
     be identified costs for purposes of section 
     403(f)(2)(D)(v)(I) of the Colorado River Basin Project Act 
     (43 U.S.C. 1543(f)(2)(D)(v)(I)) (as amended by section 
     107(a)).

     SEC. 215. REPEAL ON FAILURE OF ENFORCEABILITY DATE.

       If the Secretary does not publish a statement of findings 
     under section 207(c) by December 31, 2007--
       (1) except for section 213(i), this title is repealed 
     effective January 1, 2008, and any action taken by the 
     Secretary and any contract entered under any provision of 
     this title shall be void;
       (2) any amounts appropriated under paragraphs (1) through 
     (7) of section 214(a), together with any interest on those 
     amounts, shall immediately revert to the general fund of the 
     Treasury;
       (3) any amounts made available under section 214(b) that 
     remain unexpended shall immediately revert to the general 
     fund of the Treasury; and
       (4) any amounts paid by the Salt River Project in 
     accordance with the Gila River agreement shall immediately be 
     returned to the Salt River Project.

          TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

     SEC. 301. SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT.

       The Southern Arizona Water Rights Settlement Act of 1982 
     (96 Stat. 1274) is amended to read as follows:

         ``TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

     ``SEC. 301. SHORT TITLE.

       ``This title may be cited as the `Southern Arizona Water 
     Rights Settlement Amendments Act of 2004'.

     ``SEC. 302. PURPOSES.

       ``The purposes of this title are--
       ``(1) to authorize, ratify, and confirm the agreements 
     referred to in section 309(h);
       ``(2) to authorize and direct the Secretary to execute and 
     perform all obligations of the Secretary under those 
     agreements; and
       ``(3) to authorize the actions and appropriations necessary 
     for the United States to meet obligations of the United 
     States under those agreements and this title.

     ``SEC. 303. DEFINITIONS.

       ``In this title:
       ``(1) Acre-foot.--The term `acre-foot' means the quantity 
     of water necessary to cover 1 acre of land to a depth of 1 
     foot.
       ``(2) After-acquired trust land.--The term `after-acquired 
     trust land' means land that--
       ``(A) is located--
       ``(i) within the State; but
       ``(ii) outside the exterior boundaries of the Nation's 
     Reservation; and
       ``(B) is taken into trust by the United States for the 
     benefit of the Nation after the enforceability date.
       ``(3) Agreement of december 11, 1980.--The term `agreement 
     of December 11, 1980' means the contract entered into by the 
     United States and the Nation on December 11, 1980.
       ``(4) Agreement of october 11, 1983.--The term `agreement 
     of October 11, 1983' means the contract entered into by the 
     United States and the Nation on October 11, 1983.
       ``(5) Allottee.--The term `allottee' means a person that 
     holds a beneficial real property interest in an Indian 
     allotment that is--
       ``(A) located within the Reservation; and
       ``(B) held in trust by the United States.
       ``(6) Allottee class.--The term `allottee class' means an 
     applicable plaintiff class certified by the court of 
     jurisdiction in--
       ``(A) the Alvarez case; or
       ``(B) the Tucson case.
       ``(7) Alvarez case.--The term `Alvarez case' means the 
     first through third causes of action of the third amended 
     complaint in Alvarez v. City of Tucson (Civ. No. 93-09039 TUC 
     FRZ (D. Ariz., filed April 21, 1993)).
       ``(8) Applicable law.--The term `applicable law' means any 
     applicable Federal, State, tribal, or local law.
       ``(9) Asarco.--The term `Asarco' means Asarco Incorporated, 
     a New Jersey corporation of that name, and its subsidiaries 
     operating mining operations in the State.
       ``(10) Asarco agreement.--The term `Asarco agreement' means 
     the agreement by that name attached to the Tohono O'odham 
     settlement agreement as exhibit 13.1.
       ``(11) CAP repayment contract.--
       ``(A) In general.--The term `CAP repayment contract' means 
     the contract dated December 1, 1988 (Contract No. 14-0906-
     09W-

[[Page 23792]]

     09245, Amendment No. 1) between the United States and the 
     Central Arizona Water Conservation District for the delivery 
     of water and the repayment of costs of the Central Arizona 
     Project.
       ``(B) Inclusions.--The term `CAP repayment contract' 
     includes all amendments to and revisions of that contract.
       ``(12) Central arizona project.--The term `Central Arizona 
     Project' means the reclamation project authorized and 
     constructed by the United States in accordance with title III 
     of the Colorado River Basin Project Act (43 U.S.C. 1521 et 
     seq.).
       ``(13) Central arizona project link pipeline.--The term 
     `Central Arizona Project link pipeline' means the pipeline 
     extending from the Tucson Aqueduct of the Central Arizona 
     Project to Station 293+36.
       ``(14) Central arizona project service area.--The term 
     `Central Arizona Project service area' means--
       ``(A) the geographical area comprised of Maricopa, Pinal, 
     and Pima Counties, Arizona, in which the Central Arizona 
     Water Conservation District delivers Central Arizona Project 
     water; and
       ``(B) any expansion of that area under applicable law.
       ``(15) Central arizona water conservation district.--The 
     term `Central Arizona Water Conservation District' means the 
     political subdivision of the State that is the contractor 
     under the CAP repayment contract.
       ``(16) Cooperative farm.--The term `cooperative farm' means 
     the farm on land served by an irrigation system and the 
     extension of the irrigation system provided for under 
     paragraphs (1) and (2) of section 304(c).
       ``(17) Cooperative fund.--The term `cooperative fund' means 
     the cooperative fund established by section 313 of the 1982 
     Act and reauthorized by section 310.
       ``(18) Delivery and distribution system.--
       ``(A) In general.--The term `delivery and distribution 
     system' means--
       ``(i) the Central Arizona Project aqueduct;
       ``(ii) the Central Arizona Project link pipeline; and
       ``(iii) the pipelines, canals, aqueducts, conduits, and 
     other necessary facilities for the delivery of water under 
     the Central Arizona Project.
       ``(B) Inclusions.--The term `delivery and distribution 
     system' includes pumping facilities, power plants, and 
     electric power transmission facilities external to the 
     boundaries of any farm to which the water is distributed.
       ``(19) Eastern schuk toak district.--The term `eastern 
     Schuk Toak District' means the portion of the Schuk Toak 
     District (1 of 11 political subdivisions of the Nation 
     established under the constitution of the Nation) that is 
     located within the Tucson management area.
       ``(20) Enforceability date.--The term `enforceability date' 
     means the date on which title III of the Arizona Water 
     Settlements Act takes effect (as described in section 302(b) 
     of the Arizona Water Settlements Act).
       ``(21) Exempt well.--The term `exempt well' means a water 
     well--
       ``(A) the maximum pumping capacity of which is not more 
     than 35 gallons per minute; and
       ``(B) the water from which is used for--
       ``(i) the supply, service, or activities of households or 
     private residences;
       ``(ii) landscaping;
       ``(iii) livestock watering; or
       ``(iv) the irrigation of not more than 2 acres of land for 
     the production of 1 or more agricultural or other commodities 
     for--

       ``(I) sale;
       ``(II) human consumption; or
       ``(III) use as feed for livestock or poultry.

       ``(22) Fee owner of allotted land.--The term `fee owner of 
     allotted land' means a person that holds fee simple title in 
     real property on the Reservation that, at any time before the 
     date on which the person acquired fee simple title, was held 
     in trust by the United States as an Indian allotment.
       ``(23) FICO.--The term `FICO' means collectively the 
     Farmers Investment Co., an Arizona corporation of that name, 
     and the Farmers Water Co., an Arizona corporation of that 
     name.
       ``(24) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(25) Injury to water quality.--The term `injury to water 
     quality' means any contamination, diminution, or deprivation 
     of water quality under applicable law.
       ``(26) Injury to water rights.--
       ``(A) In general.--The term `injury to water rights' means 
     an interference with, diminution of, or deprivation of water 
     rights under applicable law.
       ``(B) Inclusion.--The term `injury to water rights' 
     includes a change in the underground water table and any 
     effect of such a change.
       ``(C) Exclusion.--The term `injury to water rights' does 
     not include subsidence damage or injury to water quality.
       ``(27) Irrigation system.--
       ``(A) In general.--The term `irrigation system' means 
     canals, laterals, ditches, sprinklers, bubblers, and other 
     irrigation works used to distribute water within the 
     boundaries of a farm.
       ``(B) Inclusions.--The term `irrigation system', with 
     respect to the cooperative farm, includes activities, 
     procedures, works, and devices for--
       ``(i) rehabilitation of fields;
       ``(ii) remediation of sinkholes, sinks, depressions, and 
     fissures; and
       ``(iii) stabilization of the banks of the Santa Cruz River.
       ``(28) Lower colorado river basin development fund.--The 
     term `Lower Colorado River Basin Development Fund' means the 
     fund established by section 403 of the Colorado River Basin 
     Project Act (43 U.S.C. 1543).
       ``(29) M&I priority water.--The term `M&I priority water' 
     means Central Arizona Project water that has municipal and 
     industrial priority.
       ``(30) Nation.--The term `Nation' means the Tohono O'odham 
     Nation (formerly known as the Papago Tribe) organized under a 
     constitution approved in accordance with section 16 of the 
     Act of June 18, 1934 (25 U.S.C. 476).
       ``(31) Nation's reservation.--The term `Nation's 
     Reservation' means all land within the exterior boundaries 
     of--
       ``(A) the Sells Tohono O'odham Reservation established by 
     the Executive order of February 1, 1917, and the Act of 
     February 21, 1931 (46 Stat. 1202, chapter 267);
       ``(B) the San Xavier Reservation established by the 
     Executive order of July 1, 1874;
       ``(C) the Gila Bend Indian Reservation established by the 
     Executive order of December 12, 1882, and modified by the 
     Executive order of June 17, 1909;
       ``(D) the Florence Village established by Public Law 95-361 
     (92 Stat. 595);
       ``(E) all land acquired in accordance with the Gila Bend 
     Indian Reservation Lands Replacement Act (100 Stat. 1798), if 
     title to the land is held in trust by the Secretary for the 
     benefit of the Nation; and
       ``(F) all other land to which the United States holds legal 
     title in trust for the benefit of the Nation and that is 
     added to the Nation's Reservation or granted reservation 
     status in accordance with applicable Federal law before the 
     enforceability date.
       ``(32) Net irrigable acres.--The term `net irrigable acres' 
     means, with respect to a farm, the acreage of the farm that 
     is suitable for agriculture, as determined by the Nation and 
     the Secretary.
       ``(33) NIA priority water.--The term `NIA priority water' 
     means Central Arizona Project water that has non-Indian 
     agricultural priority.
       ``(34) San xavier allottees association.--The term `San 
     Xavier Allottees Association' means the nonprofit corporation 
     established under State law for the purpose of representing 
     and advocating the interests of allottees.
       ``(35) San xavier cooperative association.--The term `San 
     Xavier Cooperative Association' means the entity chartered 
     under the laws of the Nation (or a successor of that entity) 
     that is a lessee of land within the cooperative farm.
       ``(36) San xavier district.--The term `San Xavier District' 
     means the district of that name, 1 of 11 political 
     subdivisions of the Nation established under the constitution 
     of the Nation.
       ``(37) San xavier district council.--The term `San Xavier 
     District Council' means the governing body of the San Xavier 
     District, as established under the constitution of the 
     Nation.
       ``(38) San xavier reservation.--The term `San Xavier 
     Reservation' means the San Xavier Indian Reservation 
     established by the Executive order of July 1, 1874.
       ``(39) Schuk toak farm.--The term `Schuk Toak Farm' means a 
     farm constructed in the eastern Schuk Toak District served by 
     the irrigation system provided for under section 304(c)(4).
       ``(40) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.
       ``(41) State.--The term `State' means the State of Arizona.
       ``(42) Subjugate.--The term `subjugate' means to prepare 
     land for agricultural use through irrigation.
       ``(43) Subsidence damage.--The term `subsidence damage' 
     means injury to land, water, or other real property resulting 
     from the settling of geologic strata or cracking in the 
     surface of the earth of any length or depth, which settling 
     or cracking is caused by the pumping of water.
       ``(44) Surface water.--The term `surface water' means all 
     water that is appropriable under State law.
       ``(45) Tohono o'odham settlement agreement.--The term 
     `Tohono O'odham settlement agreement' means the agreement 
     dated April 30, 2003 (including all exhibits of and 
     attachments to the agreement).
       ``(46) Tucson case.--The term `Tucson case' means United 
     States et al. v. City of Tucson, et al. (Civ. No. 75-0939 TUC 
     consol. with Civ. No. 75-0951 TUC FRZ (D. Ariz., filed 
     February 20, 1975)).
       ``(47) Tucson interim water lease.--The term `Tucson 
     interim water lease' means the lease, and any pre-2004 
     amendments and extensions of the lease, approved by the 
     Secretary, between the city of Tucson, Arizona, and the 
     Nation, dated October 24, 1992.
       ``(48) Tucson management area.--The term `Tucson management 
     area' means the area in the State comprised of--

[[Page 23793]]

       ``(A) the area--
       ``(i) designated as the Tucson Active Management Area under 
     the Arizona Groundwater Management Act of 1980 (1980 Ariz. 
     Sess. Laws 1); and
       ``(ii) subsequently divided into the Tucson Active 
     Management Area and the Santa Cruz Active Management Area 
     (1994 Ariz. Sess. Laws 296); and
       ``(B) the portion of the Upper Santa Cruz Basin that is not 
     located within the area described in subparagraph (A)(i).
       ``(49) Turnout.--The term `turnout' means a point of water 
     delivery on the Central Arizona Project aqueduct.
       ``(50) Underground storage.--The term `underground storage' 
     means storage of water accomplished under a project 
     authorized under section 308(e).
       ``(51) United states as trustee.--The term `United States 
     as Trustee' means the United States, acting on behalf of the 
     Nation and allottees, but in no other capacity.
       ``(52) Value.--The term `value' means the value attributed 
     to water based on the greater of--
       ``(A) the anticipated or actual use of the water; or
       ``(B) the fair market value of the water.
       ``(53) Water right.--The term `water right' means any right 
     in or to groundwater, surface water, or effluent under 
     applicable law.
       ``(54) 1982 act.--The term `1982 Act' means the Southern 
     Arizona Water Rights Settlement Act of 1982 (96 Stat. 1274; 
     106 Stat. 3256), as in effect on the day before the 
     enforceability date.

     ``SEC. 304. WATER DELIVERY AND CONSTRUCTION OBLIGATIONS.

       ``(a) Water Delivery.--The Secretary shall deliver annually 
     from the main project works of the Central Arizona Project, a 
     total of 37,800 acre-feet of water suitable for agricultural 
     use, of which--
       ``(1) 27,000 acre-feet shall--
       ``(A) be deliverable for use to the San Xavier Reservation; 
     or
       ``(B) otherwise be used in accordance with section 309; and
       ``(2) 10,800 acre-feet shall--
       ``(A) be deliverable for use to the eastern Schuk Toak 
     District; or
       ``(B) otherwise be used in accordance with section 309.
       ``(b) Delivery and Distribution Systems.--The Secretary 
     shall (without cost to the Nation, any allottee, the San 
     Xavier Cooperative Association, or the San Xavier Allottees 
     Association), as part of the main project works of the 
     Central Arizona Project, design, construct, operate, 
     maintain, and replace the delivery and distribution systems 
     necessary to deliver the water described in subsection (a).
       ``(c) Duties of the Secretary.--
       ``(1) Completion of delivery and distribution system and 
     improvement to existing irrigation system.--Except as 
     provided in subsection (d), not later than 8 years after the 
     enforceability date, the Secretary shall complete the design 
     and construction of improvements to the irrigation system 
     that serves the cooperative farm.
       ``(2) Extension of existing irrigation system within the 
     san xavier reservation.--
       ``(A) In general.--Except as provided in subsection (d), 
     not later than 8 years after the enforceability date, in 
     addition to the improvements described in paragraph (1), the 
     Secretary shall complete the design and construction of the 
     extension of the irrigation system for the cooperative farm.
       ``(B) Capacity.--On completion of the extension, the 
     extended cooperative farm irrigation system shall serve 2,300 
     net irrigable acres on the San Xavier Reservation, unless the 
     Secretary and the San Xavier Cooperative Association agree on 
     fewer net irrigable acres.
       ``(3) Construction of new farm.--
       ``(A) In general.--Except as provided in subsection (d), 
     not later than 8 years after the enforceability date, the 
     Secretary shall--
       ``(i) design and construct within the San Xavier 
     Reservation such additional canals, laterals, farm ditches, 
     and irrigation works as are necessary for the efficient 
     distribution for agricultural purposes of that portion of the 
     27,000 acre-feet annually of water described in subsection 
     (a)(1) that is not required for the irrigation systems 
     described in paragraphs (1) and (2) of subsection (c); or
       ``(ii) in lieu of the actions described in clause (i), pay 
     to the San Xavier District $18,300,000 (adjusted as provided 
     in section 317(a)(2)) in full satisfaction of the obligations 
     of the United States described in clause (i).
       ``(B) Election.--
       ``(i) In general.--The San Xavier District Council may make 
     a nonrevocable election whether to receive the benefits 
     described under clause (i) or (ii) of subparagraph (A) by 
     notifying the Secretary by not later than 180 days after the 
     enforceability date or January 1, 2010, whichever is later, 
     by written and certified resolution of the San Xavier 
     District Council.
       ``(ii) No resolution.--If the Secretary does not receive 
     such a resolution by the deadline specified in clause (i), 
     the Secretary shall pay $18,300,000 (adjusted as provided in 
     section 317(a)(2)) to the San Xavier District in lieu of 
     carrying out the obligations of the United States under 
     subparagraph (A)(i).
       ``(C) Source of funds and time of payment.--
       ``(i) In general.--Payment of $18,300,000 (adjusted as 
     provided in section 317(a)(2)) under this paragraph shall be 
     made by the Secretary from the Lower Colorado River Basin 
     Development Fund--

       ``(I) not later than 60 days after an election described in 
     subparagraph (B) is made (if such an election is made), but 
     in no event earlier than the enforceability date or January 
     1, 2010, whichever is later; or
       ``(II) not later than 240 days after the enforceability 
     date or January 1, 2010, whichever is later, if no timely 
     election is made.

       ``(ii) Payment for additional structures.--Payment of 
     amounts necessary to design and construct such additional 
     canals, laterals, farm ditches, and irrigation works as are 
     described in subparagraph (A)(i) shall be made by the 
     Secretary from the Lower Colorado River Basin Development 
     Fund, if an election is made to receive the benefits under 
     subparagraph (A)(i).
       ``(4) Irrigation and delivery and distribution systems in 
     the eastern schuk toak district.--Except as provided in 
     subsection (d), not later than 1 year after the 
     enforceability date, the Secretary shall complete the design 
     and construction of an irrigation system and delivery and 
     distribution system to serve the farm that is constructed in 
     the eastern Schuk Toak District.
       ``(d) Extension of Deadlines.--
       ``(1) In general.--The Secretary may extend a deadline 
     under subsection (c) if the Secretary determines that 
     compliance with the deadline is impracticable by reason of--
       ``(A) a material breach by a contractor of a contract that 
     is relevant to carrying out a project or activity described 
     in subsection (c);
       ``(B) the inability of such a contractor, under such a 
     contract, to carry out the contract by reason of force 
     majeure, as defined by the Secretary in the contract;
       ``(C) unavoidable delay in compliance with applicable 
     Federal and tribal laws, as determined by the Secretary, 
     including--
       ``(i) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.); and
       ``(ii) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.); or
       ``(D) stoppage in work resulting from the assessment of a 
     tax or fee that is alleged in any court of jurisdiction to be 
     confiscatory or discriminatory.
       ``(2) Notice of finding.--If the Secretary extends a 
     deadline under paragraph (1), the Secretary shall--
       ``(A) publish a notice of the extension in the Federal 
     Register; and
       ``(B)(i) include in the notice an estimate of such 
     additional period of time as is necessary to complete the 
     project or activity that is the subject of the extension; and
       ``(ii) specify a deadline that provides for a period for 
     completion of the project before the end of the period 
     described in clause (i).
       ``(e) Authority of Secretary.--
       ``(1) In general.--In carrying out this title, after 
     providing reasonable notice to the Nation, the Secretary, in 
     compliance with all applicable law, may enter, construct 
     works on, and take such other actions as are related to the 
     entry or construction on land within the San Xavier District 
     and the eastern Schuk Toak District.
       ``(2) Effect on federal activity.--Nothing in this 
     subsection affects the authority of the United States, or any 
     Federal officer, agent, employee, or contractor, to conduct 
     official Federal business or carry out any Federal duty 
     (including any Federal business or duty under this title) on 
     land within the eastern Schuk Toak District or the San Xavier 
     District.
       ``(f) Use of Funds.--
       ``(1) In general.--With respect to any funds received under 
     subsection (c)(3)(A), the San Xavier District--
       ``(A) shall hold the funds in trust, and invest the funds 
     in interest-bearing deposits and securities, until expended;
       ``(B) may expend the principal of the funds, and any 
     interest and dividends that accrue on the principal, only in 
     accordance with a budget that is--
       ``(i) authorized by the San Xavier District Council; and
       ``(ii) approved by resolution of the Legislative Council of 
     the Nation; and
       ``(C) shall expend the funds--
       ``(i) for any subjugation of land, development of water 
     resources, or construction, operation, maintenance, or 
     replacement of facilities within the San Xavier Reservation 
     that is not required to be carried out by the United States 
     under this title or any other provision of law;
       ``(ii) to provide governmental services, including--

       ``(I) programs for senior citizens;
       ``(II) health care services;
       ``(III) education;
       ``(IV) economic development loans and assistance; and
       ``(V) legal assistance programs;

       ``(iii) to provide benefits to allottees;
       ``(iv) to pay the costs of activities of the San Xavier 
     Allottees Association; or
       ``(v) to pay any administrative costs incurred by the 
     Nation or the San Xavier District in conjunction with any of 
     the activities described in clauses (i) through (iv).
       ``(2) No liability of secretary; limitation.--
       ``(A) In general.--The Secretary shall not--

[[Page 23794]]

       ``(i) be responsible for any review, approval, or audit of 
     the use and expenditure of the funds described in paragraph 
     (1); or
       ``(ii) be subject to liability for any claim or cause of 
     action arising from the use or expenditure, by the Nation or 
     the San Xavier District, of those funds.
       ``(B) Limitation.--No portion of any funds described in 
     paragraph (1) shall be used for per capita payments to any 
     individual member of the Nation or any allottee.

     ``SEC. 305. DELIVERIES UNDER EXISTING CONTRACT; ALTERNATIVE 
                   WATER SUPPLIES.

       ``(a) Delivery of Water.--
       ``(1) In general.--The Secretary shall deliver water from 
     the main project works of the Central Arizona Project, in 
     such quantities, and in accordance with such terms and 
     conditions, as are contained in the agreement of December 11, 
     1980, the 1982 Act, the agreement of October 11, 1983, and 
     the Tohono O'odham settlement agreement (to the extent that 
     the settlement agreement does not conflict with this Act), to 
     1 or more of--
       ``(A) the cooperative farm;
       ``(B) the eastern Schuk Toak District;
       ``(C) turnouts existing on the enforceability date; and
       ``(D) any other point of delivery on the Central Arizona 
     Project main aqueduct that is agreed to by--
       ``(i) the Secretary;
       ``(ii) the operator of the Central Arizona Project; and
       ``(iii) the Nation.
       ``(2) Delivery.--The Secretary shall deliver the water 
     covered by sections 304(a) and 306(a), or an equivalent 
     quantity of water from a source identified under subsection 
     (b)(1), notwithstanding--
       ``(A) any declaration by the Secretary of a water shortage 
     on the Colorado River; or
       ``(B) any other occurrence affecting water delivery caused 
     by an act or omission of--
       ``(i) the Secretary;
       ``(ii) the United States; or
       ``(iii) any officer, employee, contractor, or agent of the 
     Secretary or United States.
       ``(b) Acquisition of Land and Water.--
       ``(1) Delivery.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     if the Secretary, under the terms and conditions of the 
     agreements referred to in subsection (a)(1), is unable, 
     during any year, to deliver annually from the main project 
     works of the Central Arizona Project any portion of the 
     quantity of water covered by sections 304(a) and 306(a), the 
     Secretary shall identify, acquire and deliver an equivalent 
     quantity of water from, any appropriate source.
       ``(B) Exception.--The Secretary shall not acquire any water 
     under subparagraph (A) through any transaction that would 
     cause depletion of groundwater supplies or aquifers in the 
     San Xavier District or the eastern Schuk Toak District.
       ``(2) Private land and interests.--
       ``(A) Acquisition.--
       ``(i) In general.--Subject to subparagraph (B), the 
     Secretary may acquire, for not more than market value, such 
     private land, or interests in private land, that include 
     rights in surface or groundwater recognized under State law, 
     as are necessary for the acquisition and delivery of water 
     under this subsection.
       ``(ii) Compliance.--In acquiring rights in surface water 
     under clause (i), the Secretary shall comply with all 
     applicable severance and transfer requirements under State 
     law.
       ``(B) Prohibition on taking.--The Secretary shall not 
     acquire any land, water, water rights, or contract rights 
     under subparagraph (A) without the consent of the owner of 
     the land, water, water rights, or contract rights.
       ``(C) Priority.--In acquiring any private land or interest 
     in private land under this paragraph, the Secretary shall 
     give priority to the acquisition of land on which water has 
     been put to beneficial use during any 1-year period during 
     the 5-year period preceding the date of acquisition of the 
     land by the Secretary.
       ``(3) Deliveries from acquired land.--Deliveries of water 
     from land acquired under paragraph (2) shall be made only to 
     the extent that the water may be transported within the 
     Tucson management area under applicable law.
       ``(4) Delivery of effluent.--
       ``(A) In general.--Except on receipt of prior written 
     consent of the Nation, the Secretary shall not deliver 
     effluent directly to the Nation under this subsection.
       ``(B) No separate delivery system.--The Secretary shall not 
     construct a separate delivery system to deliver effluent to 
     the San Xavier Reservation or the eastern Schuk Toak 
     District.
       ``(C) No imposition of obligation.--Nothing in this 
     paragraph imposes any obligation on the United States to 
     deliver effluent to the Nation.
       ``(c) Agreements and Contracts.--To facilitate the delivery 
     of water to the San Xavier Reservation and the eastern Schuk 
     Toak District under this title, the Secretary may enter into 
     a contract or agreement with the State, an irrigation 
     district or project, or entity--
       ``(1) for--
       ``(A) the exchange of water; or
       ``(B) the use of aqueducts, canals, conduits, and other 
     facilities (including pumping plants) for water delivery; or
       ``(2) to use facilities constructed, in whole or in part, 
     with Federal funds.
       ``(d) Compensation and Disbursements.--
       ``(1) Compensation.--If the Secretary is unable to acquire 
     and deliver sufficient quantities of water under section 
     304(a), this section, or section 306(a), the Secretary shall 
     provide compensation in accordance with paragraph (2) in 
     amounts equal to--
       ``(A)(i) the value of such quantities of water as are not 
     acquired and delivered, if the delivery and distribution 
     system for, and the improvements to, the irrigation system 
     for the cooperative farm have not been completed by the 
     deadline required under section 304(c)(1); or
       ``(ii) the value of such quantities of water as--
       ``(I) are ordered by the Nation for use by the San Xavier 
     Cooperative Association in the irrigation system; but
       ``(II) are not delivered in any calendar year;
       ``(B)(i) the value of such quantities of water as are not 
     acquired and delivered, if the extension of the irrigation 
     system is not completed by the deadline required under 
     section 304(c)(2); or
       ``(ii) the value of such quantities of water as--
       ``(I) are ordered by the Nation for use by the San Xavier 
     Cooperative Association in the extension to the irrigation 
     system; but
       ``(II) are not delivered in any calendar year; and
       ``(C)(i) the value of such quantities of water as are not 
     acquired and delivered, if the irrigation system is not 
     completed by the deadline required under section 304(c)(4); 
     or
       ``(ii) except as provided in clause (i), the value of such 
     quantities of water as--
       ``(I) are ordered by the Nation for use in the irrigation 
     system, or for use by any person or entity (other than the 
     San Xavier Cooperative Association); but
       ``(II) are not delivered in any calendar year.
       ``(2) Disbursement.--Any compensation payable under 
     paragraph (1) shall be disbursed--
       ``(A) with respect to compensation payable under 
     subparagraphs (A) and (B) of paragraph (1), to the San Xavier 
     Cooperative Association; and
       ``(B) with respect to compensation payable under paragraph 
     (1)(C), to the Nation for retention by the Nation or 
     disbursement to water users, under the provisions of the 
     water code or other applicable laws of the Nation.
       ``(e) No Effect on Water Rights.--Nothing in this section 
     authorizes the Secretary to acquire or otherwise affect the 
     water rights of any Indian tribe.

     ``SEC. 306. ADDITIONAL WATER DELIVERY.

       ``(a) In General.--In addition to the delivery of water 
     described in section 304(a), the Secretary shall deliver 
     annually from the main project works of the Central Arizona 
     Project, a total of 28,200 acre-feet of NIA priority water 
     suitable for agricultural use, of which--
       ``(1) 23,000 acre-feet shall--
       ``(A) be delivered to, and used by, the San Xavier 
     Reservation; or
       ``(B) otherwise be used by the Nation in accordance with 
     section 309; and
       ``(2) 5,200 acre-feet shall--
       ``(A) be delivered to, and used by, the eastern Schuk Toak 
     District; or
       ``(B) otherwise be used by the Nation in accordance with 
     section 309.
       ``(b) State Contribution.--To assist the Secretary in 
     firming water under section 105(b)(1)(A) of the Arizona Water 
     Settlements Act, the State shall contribute $3,000,000--
       ``(1) in accordance with a schedule that is acceptable to 
     the Secretary and the State; and
       ``(2) in the form of cash or in-kind goods and services.

     ``SEC. 307. CONDITIONS ON CONSTRUCTION, WATER DELIVERY, 
                   REVENUE SHARING.

       ``(a) Conditions on Actions of Secretary.--The Secretary 
     shall carry out section 304(c), subsections (a), (b), and (d) 
     of section 305, and section 306, only if--
       ``(1) the Nation agrees--
       ``(A) except as provided in section 308(f)(1), to limit the 
     quantity of groundwater withdrawn by nonexempt wells from 
     beneath the San Xavier Reservation to not more than 10,000 
     acre-feet;
       ``(B) except as provided in section 308(f)(2), to limit the 
     quantity of groundwater withdrawn by nonexempt wells from 
     beneath the eastern Schuk Toak District to not more than 
     3,200 acre-feet;
       ``(C) to comply with water management plans established by 
     the Secretary under section 308(d);
       ``(D) to consent to the San Xavier District being deemed a 
     tribal organization (as defined in section 900.6 of title 25, 
     Code of Federal Regulations (or any successor regulations)) 
     for purposes identified in subparagraph (E)(iii)(I), as 
     permitted with respect to tribal organizations under title I 
     of the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.);
       ``(E) subject to compliance by the Nation with other 
     applicable provisions of part 900

[[Page 23795]]

     of title 25, Code of Federal Regulations (or any successor 
     regulations), to consent to contracting by the San Xavier 
     District under section 311(b), on the conditions that--
       ``(i)(I) the plaintiffs in the Alvarez case and Tucson case 
     have stipulated to the dismissal, with prejudice, of claims 
     in those cases; and
       ``(II) those cases have been dismissed with prejudice;
       ``(ii) the San Xavier Cooperative Association has agreed to 
     assume responsibility, after completion of each of the 
     irrigation systems described in paragraphs (1), (2), and (3) 
     of section 304(c) and on the delivery of water to those 
     systems, for the operation, maintenance, and replacement of 
     those systems in accordance with the first section of the Act 
     of August 1, 1914 (25 U.S.C. 385); and
       ``(iii) with respect to the consent of the Nation to 
     contracting--

       ``(I) the consent is limited solely to contracts for--

       ``(aa) the design and construction of the delivery and 
     distribution system and the rehabilitation of the irrigation 
     system for the cooperative farm;
       ``(bb) the extension of the irrigation system for the 
     cooperative farm;
       ``(cc) the subjugation of land to be served by the 
     extension of the irrigation system;
       ``(dd) the design and construction of storage facilities 
     solely for water deliverable for use within the San Xavier 
     Reservation; and
       ``(ee) the completion by the Secretary of a water resources 
     study of the San Xavier Reservation and subsequent 
     preparation of a water management plan under section 308(d);

       ``(II) the Nation shall reserve the right to seek 
     retrocession or reassumption of contracts described in 
     subclause (I), and recontracting under subpart P and other 
     applicable provisions of part 900 of title 25, Code of 
     Federal Regulations (or any successor regulations);
       ``(III) the Nation, on granting consent to such 
     contracting, shall be released from any responsibility, 
     liability, claim, or cost from and after the date on which 
     consent is given, with respect to past action or inaction by 
     the Nation, and subsequent action or inaction by the San 
     Xavier District, relating to the design and construction of 
     irrigation systems for the cooperative farm or the Central 
     Arizona Project link pipeline; and
       ``(IV) the Secretary shall, on the request of the Nation, 
     execute a waiver and release to carry out subclause (III);

       ``(F) to subjugate, at no cost to the United States, the 
     land for which the irrigation systems under paragraphs (2) 
     and (3) of section 304(c) will be planned, designed, and 
     constructed by the Secretary, on the condition that--
       ``(i) the obligation of the Nation to subjugate the land in 
     the cooperative farm that is to be served by the extension of 
     the irrigation system under section 304(c)(2) shall be 
     determined by the Secretary, in consultation with the Nation 
     and the San Xavier Cooperative Association; and
       ``(ii) subject to approval by the Secretary of a contract 
     with the San Xavier District executed under section 311, to 
     perform that subjugation, a determination by the Secretary of 
     the subjugation costs under clause (i), and the provision of 
     notice by the San Xavier District to the Nation at least 180 
     days before the date on which the San Xavier District Council 
     certifies by resolution that the subjugation is scheduled to 
     commence, the Nation pays to the San Xavier District, not 
     later than 90 days before the date on which the subjugation 
     is scheduled to commence, from the trust fund under section 
     315, or from other sources of funds held by the Nation, the 
     amount determined by the Secretary under clause (i); and
       ``(G) subject to business lease No. H54-16-72 dated April 
     26, 1972, of San Xavier Reservation land to Asarco and 
     approved by the United States on November 14, 1972, that the 
     Nation--
       ``(i) shall allocate as a first right of beneficial use by 
     allottees, the San Xavier District, and other persons within 
     the San Xavier Reservation--

       ``(I) 35,000 acre-feet of the 50,000 acre-feet of water 
     deliverable under sections 304(a)(1) and 306(a)(1), including 
     the use of the allocation--

       ``(aa) to fulfill the obligations prescribed in the Asarco 
     agreement; and
       ``(bb) for groundwater storage, maintenance of instream 
     flows, and maintenance of riparian vegetation and habitat;

       ``(II) the 10,000 acre-feet of groundwater identified in 
     subsection (a)(1)(A);
       ``(III) the groundwater withdrawn from exempt wells;
       ``(IV) the deferred pumping storage credits authorized by 
     section 308(f)(1)(B); and
       ``(V) the storage credits resulting from a project 
     authorized in section 308(e) that cannot be lawfully 
     transferred or otherwise disposed of to persons for recovery 
     outside the Nation's Reservation;

       ``(ii) subject to section 309(b)(2), has the right--

       ``(I) to use, or authorize other persons or entities to 
     use, any portion of the allocation of 35,000 acre-feet of 
     water deliverable under sections 304(a)(1) and 306(a)(1) 
     outside the San Xavier Reservation for any period during 
     which there is no identified actual use of the water within 
     the San Xavier Reservation;
       ``(II) as a first right of use, to use the remaining acre-
     feet of water deliverable under sections 304(a)(1) and 
     306(a)(1) for any purpose and duration authorized by this 
     title within or outside the Nation's Reservation; and
       ``(III) subject to section 308(e), as an exclusive right, 
     to transfer or otherwise dispose of the storage credits that 
     may be lawfully transferred or otherwise disposed of to 
     persons for recovery outside the Nation's Reservation;

       ``(iii) shall issue permits to persons or entities for use 
     of the water resources referred to in clause (i);
       ``(iv) shall, on timely receipt of an order for water by a 
     permittee under a permit for Central Arizona Project water 
     referred to in clause (i), submit the order to--

       ``(I) the Secretary; or
       ``(II) the operating agency for the Central Arizona 
     Project;

       ``(v) shall issue permits for water deliverable under 
     sections 304(a)(2) and 306(a)(2), including quantities of 
     water reasonably necessary for the irrigation system referred 
     to in section 304(c)(3);
       ``(vi) shall issue permits for groundwater that may be 
     withdrawn from nonexempt wells in the eastern Schuk Toak 
     District; and
       ``(vii) shall, on timely receipt of an order for water by a 
     permittee under a permit for water referred to in clause (v), 
     submit the order to--

       ``(I) the Secretary; or
       ``(II) the operating agency for the Central Arizona 
     Project; and

       ``(2) the Alvarez case and Tucson case have been dismissed 
     with prejudice.
       ``(b) Responsibilities on Completion.--On completion of an 
     irrigation system or extension of an irrigation system 
     described in paragraph (1) or (2) of section 304(c), or in 
     the case of the irrigation system described in section 
     304(c)(3), if such irrigation system is constructed on 
     individual Indian trust allotments, neither the United States 
     nor the Nation shall be responsible for the operation, 
     maintenance, or replacement of the system.
       ``(c) Payment of Charges.--The Nation shall not be 
     responsible for payment of any water service capital charge 
     for Central Arizona Project water delivered under section 
     304, subsection (a) or (b) of section 305, or section 306.

     ``SEC. 308. WATER CODE; WATER MANAGEMENT PLAN; STORAGE 
                   PROJECTS; STORAGE ACCOUNTS; GROUNDWATER.

       ``(a) Water Resources.--Water resources described in 
     clauses (i) and (ii) of section 307(a)(1)(G)--
       ``(1) shall be subject to section 7 of the Act of February 
     8, 1887 (25 U.S.C. 381); and
       ``(2) shall be apportioned pursuant to clauses (i) and (ii) 
     of section 307(a)(1)(G).
       ``(b) Water Code.--Subject to this title and any other 
     applicable law, the Nation shall--
       ``(1) manage, regulate, and control the water resources of 
     the Nation and the water resources granted or confirmed under 
     this title;
       ``(2) establish conditions, limitations, and permit 
     requirements, and promulgate regulations, relating to the 
     storage, recovery, and use of surface water and groundwater 
     within the Nation's Reservation;
       ``(3) enact and maintain--
       ``(A) an interim allottee water rights code that--
       ``(i) is consistent with subsection (a);
       ``(ii) prescribes the rights of allottees identified in 
     paragraph (4); and
       ``(iii) provides that the interim allottee water rights 
     code shall be incorporated in the comprehensive water code 
     referred to in subparagraph (B); and
       ``(B) not later than 3 years after the enforceability date, 
     a comprehensive water code applicable to the water resources 
     granted or confirmed under this title;
       ``(4) include in each of the water codes enacted under 
     subparagraphs (A) and (B) of paragraph (3)--
       ``(A) an acknowledgement of the rights described in 
     subsection (a);
       ``(B) a process by which a just and equitable distribution 
     of the water resources referred to in subsection (a), and any 
     compensation provided under section 305(d), shall be provided 
     to allottees;
       ``(C) a process by which an allottee may request and 
     receive a permit for the use of any water resources referred 
     to in subsection (a), except the water resources referred to 
     in section 307(a)(1)(G)(ii)(III) and subject to the Nation's 
     first right of use under section 307(a)(1)(G)(ii)(II);
       ``(D) provisions for the protection of due process, 
     including--
       ``(i) a fair procedure for consideration and determination 
     of any request by--

       ``(I) a member of the Nation, for a permit for use of 
     available water resources granted or confirmed by this title; 
     and
       ``(II) an allottee, for a permit for use of--

       ``(aa) the water resources identified in section 
     307(a)(1)(G)(i) that are subject to a first right of 
     beneficial use; or
       ``(bb) subject to the first right of use of the Nation, 
     available water resources identified in section 
     307(a)(1)(G)(i)(II);
       ``(ii) provisions for--

       ``(I) appeals and adjudications of denied or disputed 
     permits; and

[[Page 23796]]

       ``(II) resolution of contested administrative decisions; 
     and

       ``(iii) a waiver by the Nation of the sovereign immunity of 
     the Nation only with respect to proceedings described in 
     clause (ii) for claims of declaratory and injunctive relief; 
     and
       ``(E) a process for satisfying any entitlement to the water 
     resources referred to in section 307(a)(1)(G)(i) for which 
     fee owners of allotted land have received final 
     determinations under applicable law; and
       ``(5) submit to the Secretary the comprehensive water code, 
     for approval by the Secretary only of the provisions of the 
     water code (and any amendments to the water code), that 
     implement, with respect to the allottees, the standards 
     described in paragraph (4).
       ``(c) Water Code Approval.--
       ``(1) In general.--On receipt of a comprehensive water code 
     under subsection (b)(5), the Secretary shall--
       ``(A) issue a written approval of the water code; or
       ``(B) provide a written notification to the Nation that--
       ``(i) identifies such provisions of the water code that do 
     not conform to subsection (b) or other applicable Federal 
     law; and
       ``(ii) recommends specific corrective language for each 
     nonconforming provision.
       ``(2) Revision by nation.--If the Secretary identifies 
     nonconforming provisions in the water code under paragraph 
     (1)(B)(i), the Nation shall revise the water code in 
     accordance with the recommendations of the Secretary under 
     paragraph (1)(B)(ii).
       ``(3) Interim authority.--Until such time as the Nation 
     revises the water code of the Nation in accordance with 
     paragraph (2) and the Secretary subsequently approves the 
     water code, the Secretary may exercise any lawful authority 
     of the Secretary under section 7 of the Act of February 8, 
     1887 (25 U.S.C. 381).
       ``(4) Limitation.--Except as provided in this subsection, 
     nothing in this title requires the approval of the Secretary 
     of the water code of the Nation (or any amendment to that 
     water code).
       ``(d) Water Management Plans.--
       ``(1) In general.--The Secretary shall establish, for the 
     San Xavier Reservation and the eastern Schuk Toak District, 
     water management plans that meet the requirements described 
     in paragraph (2).
       ``(2) Requirements.--Water management plans established 
     under paragraph (1)--
       ``(A) shall be developed under contracts executed under 
     section 311 between the Secretary and the San Xavier District 
     for the San Xavier Reservation, and between the Secretary and 
     the Nation for the eastern Schuk Toak District, as 
     applicable, that permit expenditures, exclusive of 
     administrative expenses of the Secretary, of not more than--
       ``(i) with respect to a contract between the Secretary and 
     the San Xavier District, $891,200; and
       ``(ii) with respect to a contract between the Secretary and 
     the Nation, $237,200;
       ``(B) shall, at a minimum--
       ``(i) provide for the measurement of all groundwater 
     withdrawals, including withdrawals from each well that is not 
     an exempt well;
       ``(ii) provide for--

       ``(I) reasonable recordkeeping of water use, including the 
     quantities of water stored underground and recovered each 
     calendar year; and
       ``(II) a system for the reporting of withdrawals from each 
     well that is not an exempt well;

       ``(iii) provide for the direct storage and deferred storage 
     of water, including the implementation of underground storage 
     and recovery projects, in accordance with this section;
       ``(iv) provide for the annual exchange of information 
     collected under clauses (i) through (iii)--

       ``(I) between the Nation and the Arizona Department of 
     Water Resources; and
       ``(II) between the Nation and the city of Tucson, Arizona;

       ``(v) provide for--

       ``(I) the efficient use of water; and
       ``(II) the prevention of waste;

       ``(vi) except on approval of the district council for a 
     district in which a direct storage project is established 
     under subsection (e), provide that no direct storage credits 
     earned as a result of the project shall be recovered at any 
     location at which the recovery would adversely affect surface 
     or groundwater supplies, or lower the water table at any 
     location, within the district; and
       ``(vii) provide for amendments to the water plan in 
     accordance with this title;
       ``(C) shall authorize the establishment and maintenance of 
     1 or more underground storage and recovery projects in 
     accordance with subsection (e), as applicable, within--
       ``(i) the San Xavier Reservation; or
       ``(ii) the eastern Schuk Toak District; and
       ``(D) shall be implemented and maintained by the Nation, 
     with no obligation by the Secretary.
       ``(e) Underground Storage and Recovery Projects.--The 
     Nation is authorized to establish direct storage and recovery 
     projects in accordance with the Tohono O'odham settlement 
     agreement. The Secretary shall have no responsibility to fund 
     or otherwise administer such projects.
       ``(f) Groundwater.--
       ``(1) San xavier reservation.--
       ``(A) In general.--In accordance with section 307(a)(1)(A), 
     10,000 acre-feet of groundwater may be pumped annually within 
     the San Xavier Reservation.
       ``(B) Deferred pumping.--
       ``(i) In general.--Subject to clause (ii), all or any 
     portion of the 10,000 acre-feet of water not pumped under 
     subparagraph (A) in a year--

       ``(I) may be withdrawn in a subsequent year; and
       ``(II) if any of that water is withdrawn, shall be 
     accounted for in accordance with the Tohono O'odham 
     settlement agreement as a debit to the deferred pumping 
     storage account.

       ``(ii) Limitation.--The quantity of water authorized to be 
     recovered as deferred pumping storage credits under this 
     subparagraph shall not exceed--

       ``(I) 50,000 acre-feet for any 10-year period; or
       ``(II) 10,000 acre-feet in any year.

       ``(C) Recovery of additional water.--In addition to the 
     quantity of groundwater authorized to be pumped under 
     subparagraphs (A) and (B), the Nation may annually recover 
     within the San Xavier Reservation all or a portion of the 
     credits for water stored under a project described in 
     subsection (e).
       ``(2) Eastern schuk toak district.--
       ``(A) In general.--In accordance with section 307(a)(1)(B), 
     3,200 acre-feet of groundwater may be pumped annually within 
     the eastern Schuk Toak District.
       ``(B) Deferred pumping.--
       ``(i) In general.--Subject to clause (ii), all or any 
     portion of the 3,200 acre-feet of water not pumped under 
     subparagraph (A) in a year--

       ``(I) may be withdrawn in a subsequent year; and
       ``(II) if any of that water is withdrawn, shall be 
     accounted for in accordance with the Tohono O'odham 
     settlement agreement as a debit to the deferred pumping 
     storage account.

       ``(ii) Limitation.--The quantity of water authorized to be 
     recovered as deferred pumping storage credits under this 
     subparagraph shall not exceed--

       ``(I) 16,000 acre-feet for any 10-year period; or
       ``(II) 3,200 acre-feet in any year.

       ``(C) Recovery of additional water.--In addition to the 
     quantity of groundwater authorized to be pumped under 
     subparagraphs (A) and (B), the Nation may annually recover 
     within the eastern Schuk Toak District all or a portion of 
     the credits for water stored under a project described in 
     subsection (e).
       ``(3) Inability to recover groundwater.--
       ``(A) In general.--The authorizations to pump groundwater 
     in paragraphs (1) and (2) neither warrant nor guarantee that 
     the groundwater--
       ``(i) physically exists; or
       ``(ii) is recoverable.
       ``(B) Claims.--With respect to groundwater described in 
     subparagraph (A)--
       ``(i) subject to paragraph 8.8 of the Tohono O'odham 
     settlement agreement, the inability of any person to pump or 
     recover that groundwater shall not be the basis for any claim 
     by the United States or the Nation against any person or 
     entity withdrawing or using the water from any common supply; 
     and
       ``(ii) the United States and the Nation shall be barred 
     from asserting any and all claims for reserved water rights 
     with respect to that groundwater.
       ``(g) Exempt Wells.--Any groundwater pumped from an exempt 
     well located within the San Xavier Reservation or the eastern 
     Schuk Toak District shall be exempt from all pumping 
     limitations under this title.
       ``(h) Inability of Secretary To Deliver Water.--The Nation 
     is authorized to pump additional groundwater in any year in 
     which the Secretary is unable to deliver water required to 
     carry out sections 304(a) and 306(a) in accordance with the 
     Tohono O'odham settlement agreement.
       ``(i) Payment of Compensation.--Nothing in this section 
     affects any obligation of the Secretary to pay compensation 
     in accordance with section 305(d).

     ``SEC. 309. USES OF WATER.

       ``(a) Permissible Uses.--Subject to other provisions of 
     this section and other applicable law, the Nation may devote 
     all water supplies granted or confirmed under this title, 
     whether delivered by the Secretary or pumped by the Nation, 
     to any use (including any agricultural, municipal, domestic, 
     industrial, commercial, mining, underground storage, instream 
     flow, riparian habitat maintenance, or recreational use).
       ``(b) Use Area.--
       ``(1) Use within nation's reservation.--Subject to 
     subsection (d), the Nation may use at any location within the 
     Nation's Reservation--
       ``(A) the water supplies acquired under sections 304(a) and 
     306(a);
       ``(B) groundwater supplies; and
       ``(C) storage credits acquired as a result of projects 
     authorized under section 308(e), or deferred storage credits 
     described in section 308(f), except to the extent that use of 
     those storage credits causes the withdrawal of

[[Page 23797]]

     groundwater in violation of applicable Federal law.
       ``(2) Use outside the nation's reservation.--
       ``(A) In general.--Water resources granted or confirmed 
     under this title may be sold, leased, transferred, or used by 
     the Nation outside of the Nation's Reservation only in 
     accordance with this title.
       ``(B) Use within certain area.--Subject to subsection (c), 
     the Nation may use the Central Arizona Project water supplies 
     acquired under sections 304(a) and 306(a) within the Central 
     Arizona Project service area.
       ``(C) State law.--With the exception of Central Arizona 
     Project water and groundwater withdrawals under the Asarco 
     agreement, the Nation may sell, lease, transfer, or use any 
     water supplies and storage credits acquired as a result of a 
     project authorized under section 308(e) at any location 
     outside of the Nation's Reservation, but within the State, 
     only in accordance with State law.
       ``(D) Limitation.--Deferred pumping storage credits 
     provided for in section 308(f) shall not be sold, leased, 
     transferred, or used outside the Nation's Reservation.
       ``(E) Prohibition on use outside the state.--No water 
     acquired under section 304(a) or 306(a) shall be leased, 
     exchanged, forborne, or otherwise transferred by the Nation 
     for any direct or indirect use outside the State.
       ``(c) Exchanges and Leases; Conditions on Exchanges and 
     Leases.--
       ``(1) In general.--With respect to users outside the 
     Nation's Reservation, the Nation may, for a term of not to 
     exceed 100 years, assign, exchange, lease, provide an option 
     to lease, or otherwise temporarily dispose of to the users, 
     Central Arizona Project water to which the Nation is entitled 
     under sections 304(a) and 306(a) or storage credits acquired 
     under section 308(e), if the assignment, exchange, lease, 
     option, or temporary disposal is carried out in accordance 
     with--
       ``(A) this subsection; and
       ``(B) subsection (b)(2).
       ``(2) Limitation on alienation.--The Nation shall not 
     permanently alienate any water right under paragraph (1).
       ``(3) Authorized uses.--The water described in paragraph 
     (1) shall be delivered within the Central Arizona Project 
     service area for any use authorized under applicable law.
       ``(4) Contract.--An assignment, exchange, lease, option, or 
     temporary disposal described in paragraph (1) shall be 
     executed only in accordance with a contract that--
       ``(A) is accepted by the Nation;
       ``(B) is ratified under a resolution of the Legislative 
     Council of the Nation;
       ``(C) is approved by the United States as Trustee; and
       ``(D) with respect to any contract to which the United 
     States or the Secretary is a party, provides that an action 
     may be maintained by the contracting party against the United 
     States and the Secretary for a breach of the contract by the 
     United States or Secretary, as appropriate.
       ``(5) Terms exceeding 25 years.--The terms and conditions 
     established in paragraph 11 of the Tohono O'odham settlement 
     agreement shall apply to any contract under paragraph (4) 
     that has a term of greater than 25 years.
       ``(d) Limitations on Use, Exchanges, and Leases.--The 
     rights of the Nation to use water supplies under subsection 
     (a), and to assign, exchange, lease, provide options to 
     lease, or temporarily dispose of the water supplies under 
     subsection (c), shall be exercised on conditions that ensure 
     the availability of water supplies to satisfy the first right 
     of beneficial use under section 307(a)(1)(G)(i).
       ``(e) Water Service Capital Charges.--In any transaction 
     entered into by the Nation and another person under 
     subsection (c) with respect to Central Arizona Project water 
     of the Nation, the person shall not be obligated to pay to 
     the United States or the Central Arizona Water Conservation 
     District any water service capital charge.
       ``(f) Water Rights Unaffected by Use or Nonuse.--The 
     failure of the Nation to make use of water provided under 
     this title, or the use of, or failure to make use of, that 
     water by any other person that enters into a contract with 
     the Nation under subsection (c) for the assignment, exchange, 
     lease, option for lease, or temporary disposal of water, 
     shall not diminish, reduce, or impair--
       ``(1) any water right of the Nation, as established under 
     this title or any other applicable law; or
       ``(2) any water use right recognized under this title, 
     including--
       ``(A) the first right of beneficial use referred to in 
     section 307(a)(1)(G)(i); or
       ``(B) the allottee use rights referred to in section 
     308(a).
       ``(g) Amendment to Agreement of December 11, 1980.--The 
     Secretary shall amend the agreement of December 11, 1980, to 
     provide that--
       ``(1) the contract shall be--
       ``(A) for permanent service (within the meaning of section 
     5 of the Boulder Canyon Project Act of 1928 (43 U.S.C. 
     617d)); and
       ``(B) without limit as to term;
       ``(2) the Nation may, with the approval of the Secretary--
       ``(A) in accordance with subsection (c), assign, exchange, 
     lease, enter into an option to lease, or otherwise 
     temporarily dispose of water to which the Nation is entitled 
     under sections 304(a) and 306(a); and
       ``(B) renegotiate any lease at any time during the term of 
     the lease if the term of the renegotiated lease does not 
     exceed 100 years;
       ``(3)(A) the Nation shall be entitled to all consideration 
     due to the Nation under any leases and any options to lease 
     or exchanges or options to exchange the Nation's Central 
     Arizona Project water entered into by the Nation; and
       ``(B) the United States shall have no trust obligation or 
     other obligation to monitor, administer, or account for any 
     consideration received by the Nation under those leases or 
     options to lease and exchanges or options to exchange;
       ``(4)(A) all of the Nation's Central Arizona Project water 
     shall be delivered through the Central Arizona Project 
     aqueduct; and
       ``(B) if the delivery capacity of the Central Arizona 
     Project aqueduct is significantly reduced or is anticipated 
     to be significantly reduced for an extended period of time, 
     the Nation shall have the same Central Arizona Project 
     delivery rights as other Central Arizona Project contractors 
     and Central Arizona Project subcontractors, if the Central 
     Arizona Project contractors or Central Arizona Project 
     subcontractors are allowed to take delivery of water other 
     than through the Central Arizona Project aqueduct;
       ``(5) the Nation may use the Nation's Central Arizona 
     Project water on or off of the Nation's Reservation for the 
     purposes of the Nation consistent with this title;
       ``(6) as authorized by subparagraph (A) of section 
     403(f)(2) of the Colorado River Basin Project Act (43 U.S.C. 
     1543(f)(2)) (as amended by section 107(a)) and to the extent 
     that funds are available in the Lower Colorado River Basin 
     Development Fund established by section 403 of that Act (43 
     U.S.C. 1543), the United States shall pay to the Central 
     Arizona Project operating agency the fixed operation, 
     maintenance, and replacement charges associated with the 
     delivery of the Nation's Central Arizona Project water, 
     except for the Nation's Central Arizona Project water leased 
     by others;
       ``(7) the allocated costs associated with the construction 
     of the delivery and distribution system--
       ``(A) shall be nonreimbursable; and
       ``(B) shall be excluded from any repayment obligation of 
     the Nation;
       ``(8) no water service capital charges shall be due or 
     payable for the Nation's Central Arizona Project water, 
     regardless of whether the Central Arizona Project water is 
     delivered for use by the Nation or is delivered pursuant to 
     any leases or options to lease or exchanges or options to 
     exchange the Nation's Central Arizona Project water entered 
     into by the Nation;
       ``(9) the agreement of December 11, 1980, conforms with 
     section 104(d) and section 306(a) of the Arizona Water 
     Settlements Act; and
       ``(10) the amendments required by this subsection shall not 
     apply to the 8,000 acre feet of Central Arizona Project water 
     contracted by the Nation in the agreement of December 11, 
     1980, for the Sif Oidak District.
       ``(h) Ratification of Agreements.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, each agreement described in paragraph (2), to the extent 
     that the agreement is not in conflict with this Act--
       ``(A) is authorized, ratified, and confirmed; and
       ``(B) shall be executed by the Secretary.
       ``(2) Agreements.--The agreements described in this 
     paragraph are--
       ``(A) the Tohono O'odham settlement agreement, to the 
     extent that--
       ``(i) the Tohono O'odham settlement agreement is consistent 
     with this title; and
       ``(ii) parties to the Tohono O'odham settlement agreement 
     other than the Secretary have executed that agreement;
       ``(B) the Tucson agreement (attached to the Tohono O'odham 
     settlement agreement as exhibit 12.1); and
       ``(C)(i) the Asarco agreement (attached to the Tohono 
     O'odham settlement agreement as exhibit 13.1 to the Tohono 
     O'odham settlement agreement);
       ``(ii) lease No. H54-0916-0972, dated April 26, 1972, and 
     approved by the United States on November 14, 1972; and
       ``(iii) any new well site lease as provided for in the 
     Asarco agreement; and
       ``(D) the FICO agreement (attached to the Tohono O'odham 
     settlement agreement as Exhibit 14.1).
       ``(3) Relation to other law.--
       ``(A) Environmental compliance.--In implementing an 
     agreement described in paragraph (2), the Secretary shall 
     promptly comply with all aspects of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
     the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), 
     and all other applicable environmental Acts and regulations.
       ``(B) Execution of agreement.--Execution of an agreement 
     described in paragraph (2) by the Secretary under this 
     section shall not constitute a major Federal action under the 
     National Environmental Policy Act (42 U.S.C. 4321 et seq.). 
     The Secretary is directed to carry out all necessary 
     environmental compliance required by Federal law in 
     implementing an agreement described in paragraph (2).

[[Page 23798]]

       ``(C) Lead agency.--The Bureau of Reclamation shall be the 
     lead agency with respect to environmental compliance under 
     the agreements described in paragraph (2).
       ``(i) Disbursements From Tucson Interim Water Lease.--The 
     Secretary shall disburse to the Nation, without condition, 
     all proceeds from the Tucson interim water lease.
       ``(j) Use of Gross Proceeds.--
       ``(1) Definition of gross proceeds.--In this subsection, 
     the term `gross proceeds' means all proceeds, without 
     reduction, received by the Nation from--
       ``(A) the Tucson interim water lease;
       ``(B) the Asarco agreement; and
       ``(C) any agreement similar to the Asarco agreement to 
     store Central Arizona Project water of the Nation, instead of 
     pumping groundwater, for the purpose of protecting water of 
     the Nation; provided, however, that gross proceeds shall not 
     include proceeds from the transfer of Central Arizona Project 
     water in excess of 20,000 acre feet annually pursuant to any 
     agreement under this subparagraph or under the Asarco 
     agreement referenced in subparagraph (B).
       ``(2) Entitlement.--The Nation shall be entitled to receive 
     all gross proceeds.
       ``(k) Statutory Construction.--Nothing in this title 
     establishes whether reserved water may be put to use, or sold 
     for use, off any reservation to which reserved water rights 
     attach.

     ``SEC. 310. COOPERATIVE FUND.

       ``(a) Reauthorization.--
       ``(1) In general.--Congress reauthorizes, for use in 
     carrying out this title, the cooperative fund established in 
     the Treasury of the United States by section 313 of the 1982 
     Act.
       ``(2) Amounts in cooperative fund.--The cooperative fund 
     shall consist of--
       ``(A)(i) $5,250,000, as appropriated to the cooperative 
     fund under section 313(b)(3)(A) of the 1982 Act; and
       ``(ii) such amount, not to exceed $32,000,000, as the 
     Secretary determines, after providing notice to Congress, is 
     necessary to carry out this title;
       ``(B) any additional Federal funds deposited to the 
     cooperative fund under Federal law;
       ``(C) $5,250,000, as deposited in the cooperative fund 
     under section 313(b)(1)(B) of the 1982 Act, of which--
       ``(i) $2,750,000 was contributed by the State;
       ``(ii) $1,500,000 was contributed by the city of Tucson; 
     and
       ``(iii) $1,000,000 was contributed by--

       ``(I) the Anamax Mining Company;
       ``(II) the Cyprus-Pima Mining Company;
       ``(III) the American Smelting and Refining Company;
       ``(IV) the Duval Corporation; and
       ``(V) the Farmers Investment Company;

       ``(D) all interest accrued on all amounts in the 
     cooperative fund beginning on October 12, 1982, less any 
     interest expended under subsection (b)(2); and
       ``(E) all revenues received from--
       ``(i) the sale or lease of effluent received by the 
     Secretary under the contract between the United States and 
     the city of Tucson to provide for delivery of reclaimed water 
     to the Secretary, dated October 11, 1983; and
       ``(ii) the sale or lease of storage credits derived from 
     the storage of that effluent.
       ``(b) Expenditures From Fund.--
       ``(1) In general.--Subject to paragraph (2), upon request 
     by the Secretary, the Secretary of the Treasury shall 
     transfer from the cooperative fund to the Secretary such 
     amounts as the Secretary determines are necessary to carry 
     out obligations of the Secretary under this title, including 
     to pay--
       ``(A) the variable costs relating to the delivery of water 
     under sections 304 through 306;
       ``(B) fixed operation maintenance and replacement costs 
     relating to the delivery of water under sections 304 through 
     306, to the extent that funds are not available from the 
     Lower Colorado River Basin Development Fund to pay those 
     costs;
       ``(C) the costs of acquisition and delivery of water from 
     alternative sources under section 305; and
       ``(D) any compensation provided by the Secretary under 
     section 305(d).
       ``(2) Expenditure of interest.--Except as provided in 
     paragraph (3), the Secretary may expend only interest income 
     accruing to the cooperative fund, and that interest income 
     may be expended by the Secretary, without further 
     appropriation.
       ``(3) Expenditure of revenues.--Revenues described in 
     subsection (a)(2)(E) shall be available for expenditure under 
     paragraph (1).
       ``(c) Investment of Amounts.--
       ``(1) In general.--The Secretary of the Treasury shall 
     invest such portion of the cooperative fund as is not, in the 
     judgment of the Secretary of the Treasury, required to meet 
     current withdrawals determined by the Secretary. Investments 
     may be made only in interest-bearing obligations of the 
     United States.
       ``(2) Credits to cooperative fund.--The interest on, and 
     the proceeds from the sale or redemption of, any obligations 
     held in the cooperative fund shall be credited to and form a 
     part of the cooperative fund.
       ``(d) Transfers of Amounts.--
       ``(1) In general.--The amounts required to be transferred 
     to the cooperative fund under this section shall be 
     transferred at least monthly from the general fund of the 
     Treasury to the cooperative 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.
       ``(e) Damages.--Damages arising under this title or any 
     contract for the delivery of water recognized by this title 
     shall not exceed, in any given year, the amounts available 
     for expenditure in that year from the cooperative fund.

     ``SEC. 311. CONTRACTING AUTHORITY; WATER QUALITY; STUDIES; 
                   ARID LAND ASSISTANCE.

       ``(a) Functions of Secretary.--Except as provided in 
     subsection (f), the functions of the Secretary (or the 
     Commissioner of Reclamation, acting on behalf of the 
     Secretary) under this title shall be subject to the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450 et seq.) to the same extent as if those functions were 
     carried out by the Assistant Secretary for Indian Affairs.
       ``(b) San Xavier District as Contractor.--
       ``(1) In general.--Subject to the consent of the Nation and 
     other requirements under section 307(a)(1)(E), the San Xavier 
     District shall be considered to be an eligible contractor for 
     purposes of this title.
       ``(2) Technical assistance.--The Secretary shall provide to 
     the San Xavier District technical assistance in carrying out 
     the contracting requirements under the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450 et 
     seq.).
       ``(c) Groundwater Monitoring Programs.--
       ``(1) San xavier indian reservation program.--
       ``(A) In general.--Not later than 180 days after the 
     enforceability date, the Secretary shall develop and initiate 
     a comprehensive groundwater monitoring program (including the 
     drilling of wells and other appropriate actions) to test, 
     assess, and provide for the long-term monitoring of the 
     quality of groundwater withdrawn from exempt wells and other 
     wells within the San Xavier Reservation.
       ``(B) Limitation on expenditures.--In carrying out this 
     paragraph, the Secretary shall expend not more than $215,000.
       ``(2) Eastern schuk toak district program.--
       ``(A) In general.--Not later than 180 days after the 
     enforceability date, the Secretary shall develop and initiate 
     a comprehensive groundwater monitoring program (including the 
     drilling of wells and other appropriate actions) to test, 
     assess, and provide for the long-term monitoring of the 
     quality of groundwater withdrawn from exempt wells and other 
     wells within the eastern Schuk Toak District.
       ``(B) Limitation on expenditures.--In carrying out this 
     paragraph, the Secretary shall expend not more than $175,000.
       ``(3) Duties of secretary.--
       ``(A) Consultation.--In carrying out paragraphs (1) and 
     (2), the Secretary shall consult with representatives of--
       ``(i) the Nation;
       ``(ii) the San Xavier District and Schuk Toak District, 
     respectively; and
       ``(iii) appropriate State and local entities.
       ``(B) Limitation on obligations of secretary.--With respect 
     to the groundwater monitoring programs described in 
     paragraphs (1) and (2), the Secretary shall have no 
     continuing obligation relating to those programs beyond the 
     obligations described in those paragraphs.
       ``(d) Water Resources Study.--To assist the Nation in 
     developing sources of water, the Secretary shall conduct a 
     study to determine the availability and suitability of water 
     resources that are located--
       ``(1) within the Nation's Reservation; but
       ``(2) outside the Tucson management area.
       ``(e) Arid Land Renewable Resources.--If a Federal entity 
     is established to provide financial assistance to carry out 
     arid land renewable resources projects and to encourage and 
     ensure investment in the development of domestic sources of 
     arid land renewable resources, the entity shall--
       ``(1) give first priority to the needs of the Nation in 
     providing that assistance; and
       ``(2) make available to the Nation, San Xavier District, 
     Schuk Toak District, and San Xavier Cooperative Association 
     price guarantees, loans, loan guarantees, purchase 
     agreements, and joint venture projects at a level that the 
     entity determines will--
       ``(A) facilitate the cultivation of such minimum number of 
     acres as is determined by the entity to be necessary to 
     ensure economically successful cultivation of arid land 
     crops; and
       ``(B) contribute significantly to the economy of the 
     Nation.
       ``(f) Asarco Land Exchange Study.--
       ``(1) In general.--Not later than 2 years after the 
     enforceability date, the Secretary, in consultation with the 
     Nation, the San Xavier District, the San Xavier Allottees' 
     Association, and Asarco, shall conduct and submit to Congress 
     a study on the feasibility of a land exchange or land 
     exchanges with Asarco to provide land for future use by--

[[Page 23799]]

       ``(A) beneficial landowners of the Mission Complex Mining 
     Leases of September 18, 1959; and
       ``(B) beneficial landowners of the Mission Complex Business 
     Leases of May 12, 1959.
       ``(2) Components.--The study under paragraph (1) shall 
     include--
       ``(A) an analysis of the manner in which land exchanges 
     could be accomplished to maintain a contiguous land base for 
     the San Xavier Reservation; and
       ``(B) a description of the legal status exchanged land 
     should have to maintain the political integrity of the San 
     Xavier Reservation.
       ``(3) Limitation on expenditures.--In carrying out this 
     subsection, the Secretary shall expend not more than 
     $250,000.

     ``SEC. 312. WAIVER AND RELEASE OF CLAIMS.

       ``(a) Waiver of Claims by the Nation.--Except as provided 
     in subsection (d), the Tohono O'odham settlement agreement 
     shall provide that the Nation waives and releases--
       ``(1) any and all past, present, and future claims for 
     water rights (including claims based on aboriginal occupancy) 
     arising from time immemorial and, thereafter, forever, and 
     claims for injuries to water rights arising from time 
     immemorial through the enforceability date, for land within 
     the Tucson management area, against--
       ``(A) the State (or any agency or political subdivision of 
     the State);
       ``(B) any municipal corporation; and
       ``(C) any other person or entity;
       ``(2) any and all claims for water rights arising from time 
     immemorial and, thereafter, forever, claims for injuries to 
     water rights arising from time immemorial through the 
     enforceability date, and claims for failure to protect, 
     acquire, or develop water rights for land within the San 
     Xavier Reservation and the eastern Schuk Toak District from 
     time immemorial through the enforceability date, against the 
     United States (including any agency, officer, and employee of 
     the United States);
       ``(3) any and all claims for injury to water rights arising 
     after the enforceability date for land within the San Xavier 
     Reservation and the eastern Schuk Toak District resulting 
     from the off-Reservation diversion or use of water in a 
     manner not in violation of the Tohono O'odham settlement 
     agreement or State law against--
       ``(A) the United States;
       ``(B) the State (or any agency or political subdivision of 
     the State);
       ``(C) any municipal corporation; and
       ``(D) any other person or entity; and
       ``(4) any and all past, present, and future claims arising 
     out of or relating to the negotiation or execution of the 
     Tohono O'odham settlement agreement or the negotiation or 
     enactment of this title, against--
       ``(A) the United States;
       ``(B) the State (or any agency or political subdivision of 
     the State);
       ``(C) any municipal corporation; and
       ``(D) any other person or entity.
       ``(b) Waiver of Claims by the Allottee Classes.--The Tohono 
     O'odham settlement agreement shall provide that each allottee 
     class waives and releases--
       ``(1) any and all past, present, and future claims for 
     water rights (including claims based on aboriginal occupancy) 
     arising from time immemorial and, thereafter, forever, claims 
     for injuries to water rights arising from time immemorial 
     through the enforceability date for land within the San 
     Xavier Reservation, against--
       ``(A) the State (or any agency or political subdivision of 
     the State);
       ``(B) any municipal corporation; and
       ``(C) any other person or entity (other than the Nation);
       ``(2) any and all claims for water rights arising from time 
     immemorial and, thereafter, forever, claims for injuries to 
     water rights arising from time immemorial through the 
     enforceability date, and claims for failure to protect, 
     acquire, or develop water rights for land within the San 
     Xavier Reservation from time immemorial through the 
     enforceability date, against the United States (including any 
     agency, officer, and employee of the United States);
       ``(3) any and all claims for injury to water rights arising 
     after the enforceability date for land within the San Xavier 
     Reservation resulting from the off-Reservation diversion or 
     use of water in a manner not in violation of the Tohono 
     O'odham settlement agreement or State law against--
       ``(A) the United States;
       ``(B) the State (or any agency or political subdivision of 
     the State);
       ``(C) any municipal corporation; and
       ``(D) any other person or entity;
       ``(4) any and all past, present, and future claims arising 
     out of or relating to the negotiation or execution of the 
     Tohono O'odham settlement agreement or the negotiation or 
     enactment of this title, against--
       ``(A) the United States;
       ``(B) the State (or any agency or political subdivision of 
     the State);
       ``(C) any municipal corporation; and
       ``(D) any other person or entity; and
       ``(5) any and all past, present, and future claims for 
     water rights arising from time immemorial and, thereafter, 
     forever, and claims for injuries to water rights arising from 
     time immemorial through the enforceability date, against the 
     Nation (except that under section 307(a)(1)(G) and 
     subsections (a) and (b) of section 308, the allottees and fee 
     owners of allotted land shall retain rights to share in the 
     water resources granted or confirmed under this title and the 
     Tohono O'odham settlement agreement with respect to uses 
     within the San Xavier Reservation).
       ``(c) Waiver of Claims by the United States.--Except as 
     provided in subsection (d), the Tohono O'odham settlement 
     agreement shall provide that the United States as Trustee 
     waives and releases--
       ``(1) any and all past, present, and future claims for 
     water rights (including claims based on aboriginal occupancy) 
     arising from time immemorial and, thereafter, forever, and 
     claims for injuries to water rights arising from time 
     immemorial through the enforceability date, for land within 
     the Tucson management area against--
       ``(A) the Nation;
       ``(B) the State (or any agency or political subdivision of 
     the State);
       ``(C) any municipal corporation; and
       ``(D) any other person or entity;
       ``(2) any and all claims for injury to water rights arising 
     after the enforceability date for land within the San Xavier 
     Reservation and the eastern Schuk Toak District resulting 
     from the off-Reservation diversion or use of water in a 
     manner not in violation of the Tohono O'odham settlement 
     agreement or State law against--
       ``(A) the Nation;
       ``(B) the State (or any agency or political subdivision of 
     the State);
       ``(C) any municipal corporation; and
       ``(D) any other person or entity;
       ``(3) on and after the enforceability date, any and all 
     claims on behalf of the allottees for injuries to water 
     rights against the Nation (except that under section 
     307(a)(1)(G) and subsections (a) and (b) of section 308, the 
     allottees shall retain rights to share in the water resources 
     granted or confirmed under this title and the Tohono O'odham 
     settlement agreement with respect to uses within the San 
     Xavier Reservation); and
       ``(4) claims against Asarco on behalf of the allottee class 
     for the fourth cause of action in Alvarez v. City of Tucson 
     (Civ. No. 93-039 TUC FRZ (D. Ariz., filed April 21, 1993)), 
     in accordance with the terms and conditions of the Asarco 
     agreement.
       ``(d) Claims Relating to Groundwater Protection Program.--
     The Nation and the United States as Trustee--
       ``(1) shall have the right to assert any claims granted by 
     a State law implementing the groundwater protection program 
     described in paragraph 8.8 of the Tohono O'odham settlement 
     agreement; and
       ``(2) if, after the enforceability date, the State law is 
     amended so as to have a material adverse effect on the 
     Nation, shall have a right to relief in the State court 
     having jurisdiction over Gila River adjudication proceedings 
     and decrees, against an owner of any nonexempt well drilled 
     after the effective date of the amendment (if the well 
     actually and substantially interferes with groundwater 
     pumping occurring on the San Xavier Reservation), from the 
     incremental effect of the groundwater pumping that exceeds 
     that which would have been allowable had the State law not 
     been amended.
       ``(e) Supplemental Waivers of Claims.--Any party to the 
     Tohono O'odham settlement agreement may waive and release, 
     prohibit the assertion of, or agree not to assert, any claims 
     (including claims for subsidence damage or injury to water 
     quality) in addition to claims for water rights and injuries 
     to water rights on such terms and conditions as may be agreed 
     to by the parties.
       ``(f) Rights of Allottees; Prohibition of Claims.--
       ``(1) In general.--As of the enforceability date--
       ``(A) the water rights and other benefits granted or 
     confirmed by this title and the Tohono O'odham settlement 
     agreement shall be in full satisfaction of--
       ``(i) all claims for water rights and claims for injuries 
     to water rights of the Nation; and
       ``(ii) all claims for water rights and injuries to water 
     rights of the allottees;
       ``(B) any entitlement to water within the Tucson management 
     area of the Nation, or of any allottee, shall be satisfied 
     out of the water resources granted or confirmed under this 
     title and the Tohono O'odham settlement agreement; and
       ``(C) any rights of the allottees to groundwater, surface 
     water, or effluent shall be limited to the water rights 
     granted or confirmed under this title and the Tohono O'odham 
     settlement agreement.
       ``(2) Limitation of certain claims by allottees.--No 
     allottee within the San Xavier Reservation may--
       ``(A) assert any past, present, or future claim for water 
     rights arising from time immemorial and, thereafter, forever, 
     or any claim for injury to water rights (including future 
     injury to water rights) arising from time immemorial and 
     thereafter, forever, against--
       ``(i) the United States;
       ``(ii) the State (or any agency or political subdivision of 
     the State);
       ``(iii) any municipal corporation; or
       ``(iv) any other person or entity; or
       ``(B) continue to assert a claim described in subparagraph 
     (A), if the claim was first asserted before the 
     enforceability date.

[[Page 23800]]

       ``(3) Claims by fee owners of allotted land.--
       ``(A) In general.--No fee owner of allotted land within the 
     San Xavier Reservation may assert any claim to the extent 
     that--
       ``(i) the claim has been waived and released in the Tohono 
     O'odham settlement agreement; and
       ``(ii) the fee owner of allotted land asserting the claim 
     is a member of the applicable allottee class.
       ``(B) Offset.--Any benefits awarded to a fee owner of 
     allotted land as a result of a successful claim shall be 
     offset by benefits received by that fee owner of allotted 
     land under this title.
       ``(4) Limitation of claims against the nation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     no allottee may assert against the Nation any claims for 
     water rights arising from time immemorial and, thereafter, 
     forever, claims for injury to water rights arising from time 
     immemorial and thereafter forever.
       ``(B) Exception.--Under section 307(a)(1)(G) and 
     subsections (a) and (b) of section 308, the allottees shall 
     retain rights to share in the water resources granted or 
     confirmed under this title and the Tohono O'odham settlement 
     agreement.
       ``(g) Consent.--
       ``(1) Grant of consent.--Congress grants to the Nation and 
     the San Xavier Cooperative Association under section 305(d) 
     consent to maintain civil actions against the United States 
     in the courts of the United States under section 1346, 1491, 
     or 1505 of title 28, United States Code, respectively, to 
     recover damages, if any, for the breach of any obligation of 
     the Secretary under those sections.
       ``(2) Remedy.--
       ``(A) In general.--Subject to subparagraph (B), the 
     exclusive remedy for a civil action maintained under this 
     subsection shall be monetary damages.
       ``(B) Offset.--An award for damages for a claim under this 
     subsection shall be offset against the amount of funds--
       ``(i) made available by any Act of Congress; and
       ``(ii) paid to the claimant by the Secretary in partial or 
     complete satisfaction of the claim.
       ``(3) No claims established.--Except as provided in 
     paragraph (1), nothing in the subsection establishes any 
     claim against the United States.
       ``(h) Jurisdiction; Waiver of Immunity; Parties.--
       ``(1) Jurisdiction.--
       ``(A) In general.--Except as provided in subsection (i), 
     the State court having jurisdiction over Gila River 
     adjudication proceedings and decrees, shall have jurisdiction 
     over--
       ``(i) civil actions relating to the interpretation and 
     enforcement of--

       ``(I) this title;
       ``(II) the Tohono O'odham settlement agreement; and
       ``(III) agreements referred to in section 309(h)(2); and

       ``(ii) civil actions brought by or against the allottees or 
     fee owners of allotted land for the interpretation of, or 
     legal or equitable remedies with respect to, claims of the 
     allottees or fee owners of allotted land that are not claims 
     for water rights, injuries to water rights or other claims 
     that are barred or waived and released under this title or 
     the Tohono O'odham settlement agreement.
       ``(B) Limitation.--Except as provided in subparagraph (A), 
     no State court or court of the Nation shall have jurisdiction 
     over any civil action described in subparagraph (A).
       ``(2) Waiver.--
       ``(A) In general.--The United States and the Nation waive 
     sovereign immunity solely for claims for--
       ``(i) declaratory judgment or injunctive relief in any 
     civil action arising under this title; and
       ``(ii) such claims and remedies as may be prescribed in any 
     agreement authorized under this title.
       ``(B) Limitation on standing.--If a governmental entity not 
     described in subparagraph (A) asserts immunity in any civil 
     action that arises under this title (unless the entity waives 
     immunity for declaratory judgment or injunctive relief) or 
     any agreement authorized under this title (unless the entity 
     waives immunity for the claims and remedies prescribed in the 
     agreement)--
       ``(i) the governmental entity shall not have standing to 
     initiate or assert any claim, or seek any remedy against the 
     United States or the Nation, in the civil action; and
       ``(ii) the waivers of sovereign immunity under subparagraph 
     (A) shall have no effect in the civil action.
       ``(C) Monetary relief.--A waiver of immunity under this 
     paragraph shall not extend to any claim for damages, costs, 
     attorneys' fees, or other monetary relief.
       ``(3) Nation as a party.--
       ``(A) In general.--Not later than 60 days before the date 
     on which a civil action under paragraph (1)(A)(ii) is filed 
     by an allottee or fee owner of allotted land, the allottee or 
     fee owner, as the case may be, shall provide to the Nation a 
     notice of intent to file the civil action, accompanied by a 
     request for consultation.
       ``(B) Joinder.--If the Nation is not a party to a civil 
     action as originally commenced under paragraph (1)(A)(ii), 
     the Nation shall be joined as a party.
       ``(i) Regulation and Jurisdiction Over Dispute 
     Resolution.--
       ``(1) Regulation.--The Nation shall have jurisdiction to 
     manage, control, permit, administer, and otherwise regulate 
     the water resources granted or confirmed under this title and 
     the Tohono O'odham settlement agreement--
       ``(A) with respect to the use of those resources by--
       ``(i) the Nation;
       ``(ii) individual members of the Nation;
       ``(iii) districts of the Nation; and
       ``(iv) allottees; and
       ``(B) with respect to any entitlement to those resources 
     for which a fee owner of allotted land has received a final 
     determination under applicable law.
       ``(2) Jurisdiction.--Subject to a requirement of exhaustion 
     of any administrative or other remedies prescribed under the 
     laws of the Nation, jurisdiction over any disputes relating 
     to the matters described in paragraph (1) shall be vested in 
     the courts of the Nation.
       ``(3) Applicable law.--The regulatory and remedial 
     procedures referred to in paragraphs (1) and (2) shall be 
     subject to all applicable law.
       ``(j) Federal Jurisdiction.--The Federal Courts shall have 
     concurrent jurisdiction over actions described in subsection 
     312(h) to the extent otherwise provided in Federal law.

     ``SEC. 313. AFTER-ACQUIRED TRUST LAND.

       ``(a) In General.--Except as provided in subsection (b)--
       ``(1) the Nation may seek to have taken into trust by the 
     United States, for the benefit of the Nation, legal title to 
     additional land within the State and outside the exterior 
     boundaries of the Nation's Reservation only in accordance 
     with an Act of Congress specifically authorizing the transfer 
     for the benefit of the Nation;
       ``(2) lands taken into trust under paragraph (1) shall 
     include only such water rights and water use privileges as 
     are consistent with State water law and State water 
     management policy; and
       ``(3) after-acquired trust land shall not include Federal 
     reserved rights to surface water or groundwater.
       ``(b) Exception.--Subsection (a) shall not apply to land 
     acquired by the Nation under the Gila Bend Indian Reservation 
     Lands Replacement Act (100 Stat. 1798).

     ``SEC. 314. NONREIMBURSABLE COSTS.

       ``(a) Central Arizona Water Conservation District.--For the 
     purpose of determining the allocation and repayment of costs 
     of any stage of the Central Arizona Project, the costs 
     associated with the delivery of Central Arizona Project water 
     acquired under sections 304(a) and 306(a), whether that water 
     is delivered for use by the Nation or in accordance with any 
     assignment, exchange, lease, option to lease, or other 
     agreement for the temporary disposition of water entered into 
     by the Nation--
       ``(1) shall be nonreimbursable; and
       ``(2) shall be excluded from the repayment obligation of 
     the Central Arizona Water Conservation District.
       ``(b) Claims by United States.--The United States shall--
       ``(1) make no claim against the Nation or any allottee for 
     reimbursement or repayment of any cost associated with--
       ``(A) the construction of facilities under the Colorado 
     River Basin Project Act (43 U.S.C. 1501 et seq.);
       ``(B) the delivery of Central Arizona Project water for any 
     use authorized under this title; or
       ``(C) the implementation of this title;
       ``(2) make no claim against the Nation for reimbursement or 
     repayment of the costs associated with the construction of 
     facilities described in paragraph (1)(A) for the benefit of 
     and use on land that--
       ``(A) is known as the `San Lucy Farm'; and
       ``(B) was acquired by the Nation under the Gila Bend Indian 
     Reservation Lands Replacement Act (100 Stat. 1798); and
       ``(3) impose no assessment with respect to the costs 
     referred to in paragraphs (1) and (2) against--
       ``(A) trust or allotted land within the Nation's 
     Reservation; or
       ``(B) the land described in paragraph (2).

     ``SEC. 315. TRUST FUND.

       ``(a) Reauthorization.--Congress reauthorizes the trust 
     fund established by section 309 of the 1982 Act, containing 
     an initial deposit of $15,000,000 made under that section, 
     for use in carrying out this title.
       ``(b) Expenditure and Investment.--Subject to the 
     limitations of subsection (d), the principal and all accrued 
     interest and dividends in the trust fund established under 
     section 309 of the 1982 Act may be--
       ``(1) expended by the Nation for any governmental purpose; 
     and
       ``(2) invested by the Nation in accordance with such 
     policies as the Nation may adopt.
       ``(c) Responsibility of Secretary.--The Secretary shall 
     not--
       ``(1) be responsible for the review, approval, or audit of 
     the use and expenditure of any funds from the trust fund 
     reauthorized by subsection (a); or

[[Page 23801]]

       ``(2) be subject to liability for any claim or cause of 
     action arising from the use or expenditure by the Nation of 
     those funds.
       ``(d) Conditions of Trust.--
       ``(1) Reserve for the cost of subjugation.--The Nation 
     shall reserve in the trust fund reauthorized by subsection 
     (a)--
       ``(A) the principal amount of at least $3,000,000; and
       ``(B) interest on that amount that accrues during the 
     period beginning on the enforceability date and ending on the 
     earlier of--
       ``(i) the date on which full payment of such costs has been 
     made; or
       ``(ii) the date that is 10 years after the enforceability 
     date.
       ``(2) Payment.--The costs described in paragraph (1) shall 
     be paid in the amount, on the terms, and for the purposes 
     prescribed in section 307(a)(1)(F).
       ``(3) Limitation on restrictions.--On the occurrence of an 
     event described in clause (i) or (ii) of paragraph (1)(B)--
       ``(A) the restrictions imposed on funds from the trust fund 
     described in paragraph (1) shall terminate; and
       ``(B) any of those funds remaining that were reserved under 
     paragraph (1) may be used by the Nation under subsection 
     (b)(1).

     ``SEC. 316. MISCELLANEOUS PROVISIONS.

       ``(a) In General.--Nothing in this title--
       ``(1) establishes the applicability or inapplicability to 
     groundwater of any doctrine of Federal reserved rights;
       ``(2) limits the ability of the Nation to enter into any 
     agreement with the Arizona Water Banking Authority (or a 
     successor agency) in accordance with State law;
       ``(3) prohibits the Nation, any individual member of the 
     Nation, an allottee, or a fee owner of allotted land in the 
     San Xavier Reservation from lawfully acquiring water rights 
     for use in the Tucson management area in addition to the 
     water rights granted or confirmed under this title and the 
     Tohono O'odham settlement agreement;
       ``(4) abrogates any rights or remedies existing under 
     section 1346 or 1491 of title 28, United States Code;
       ``(5) affects the obligations of the parties under the 
     Agreement of December 11, 1980, with respect to the 8,000 
     acre feet of Central Arizona Project water contracted by the 
     Nation for the Sif Oidak District;
       ``(6)(A) applies to any exempt well;
       ``(B) prohibits or limits the drilling of any exempt well 
     within--
       ``(i) the San Xavier Reservation; or
       ``(ii) the eastern Schuk Toak District; or
       ``(C) subjects water from any exempt well to any pumping 
     limitation under this title; or
       ``(7) diminishes or abrogates rights to use water under--
       ``(A) contracts of the Nation in existence before the 
     enforceability date; or
       ``(B) the well site agreement referred to in the Asarco 
     agreement and any well site agreement entered into under the 
     Asarco agreement.
       ``(b) No Effect on Future Allocations.--Water received 
     under a lease or exchange of Central Arizona Project water 
     under this title does not affect any future allocation or 
     reallocation of Central Arizona Project water by the 
     Secretary.
       ``(c) Limitation on Liability of United States.--
       ``(1) In general.--The United States shall have no trust or 
     other obligation--
       ``(A) to monitor, administer, or account for, in any 
     manner, any of the funds paid to the Nation or the San Xavier 
     District under this Act; or
       ``(B) to review or approve the expenditure of those funds.
       ``(2) Indemnification.--The Nation shall indemnify the 
     United States, and hold the United States harmless, with 
     respect to any and all claims (including claims for takings 
     or breach of trust) arising out of the receipt or expenditure 
     of funds described in paragraph (1)(A).

     ``SEC. 317. AUTHORIZED COSTS.

       ``(a) In General.--There are authorized to be 
     appropriated--
       ``(1) to construct features of irrigation systems described 
     in paragraphs (1) through (4) of section 304(c) that are not 
     authorized to be constructed under any other provision of 
     law, an amount equal to the sum of--
       ``(A) $3,500,000; and
       ``(B) such additional amount as the Secretary determines to 
     be necessary to adjust the amount under subparagraph (A) to 
     account for ordinary fluctuations in the costs of 
     construction of irrigation features for the period beginning 
     on October 12, 1982, and ending on the date on which the 
     construction of the features described in this subparagraph 
     is initiated, as indicated by engineering cost indices 
     applicable to the type of construction involved;
       ``(2) $18,300,000 in lieu of construction to implement 
     section 304(c)(3)(B), including an adjustment representing 
     interest that would have been earned if this amount had been 
     deposited in the cooperative fund during the period beginning 
     on January 1, 2008, and ending on the date the amount is 
     actually paid to the San Xavier District;
       ``(3) $891,200 to develop and initiate a water management 
     plan for the San Xavier Reservation under section 308(d);
       ``(4) $237,200 to develop and initiate a water management 
     plan for the eastern Schuk Toak District under section 
     308(d);
       ``(5) $4,000,000 to complete the water resources study 
     under section 311(d);
       ``(6) $215,000 to develop and initiate a groundwater 
     monitoring program for the San Xavier Reservation under 
     section 311(c)(1);
       ``(7) $175,000 to develop and implement a groundwater 
     monitoring program for the eastern Schuk Toak District under 
     section 311(c)(2);
       ``(8) $250,000 to complete the Asarco land exchange study 
     under section 311(f); and
       ``(9) such additional sums as are necessary to carry out 
     the provisions of this title other than the provisions 
     referred to in paragraphs (1) through (8).
       ``(b) Treatment of Appropriated Amounts.--Amounts made 
     available under subsection (a) shall be considered to be 
     authorized costs for purposes of section 403(f)(2)(D)(iii) of 
     the Colorado River Basin Project Act (43 U.S.C. 
     1543(f)(2)(D)(iii)) (as amended by section 107(a) of the 
     Arizona Water Settlements Act).''.

     SEC. 302. SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT EFFECTIVE 
                   DATE.

       (a) Definitions.--The definitions under section 301 of the 
     Southern Arizona Water Rights Settlement Amendments Act of 
     2004 (as contained in the amendment made by section 301) 
     shall apply to this title.
       (b) Effective Date.--This title and the amendments made by 
     this title take effect as of the enforceability date, which 
     is the date the Secretary publishes in the Federal Register a 
     statement of findings that--
       (1)(A) to the extent that the Tohono O'odham settlement 
     agreement conflicts with this title or an amendment made by 
     this title, the Tohono O'odham settlement agreement has been 
     revised through an amendment to eliminate those conflicts; 
     and
       (B) the Tohono O'odham settlement agreement, as so revised, 
     has been executed by the parties and the Secretary;
       (2) the Secretary and other parties to the agreements 
     described in section 309(h)(2) of the Southern Arizona Water 
     Rights Settlement Amendments Act of 2004 (as contained in the 
     amendment made by section 301) have executed those 
     agreements;
       (3) the Secretary has approved the interim allottee water 
     rights code described in section 308(b)(3)(A) of the Southern 
     Arizona Water Rights Settlement Amendments Act of 2004 (as 
     contained in the amendment made by section 301);
       (4) final dismissal with prejudice has been entered in each 
     of the Alvarez case and the Tucson case on the sole condition 
     that the Secretary publishes the findings specified in this 
     section;
       (5) the judgment and decree attached to the Tohono O'odham 
     settlement agreement as exhibit 17.1 has been approved by the 
     State court having jurisdiction over the Gila River 
     adjudication proceedings, and that judgment and decree have 
     become final and nonappealable;
       (6) implementation costs have been identified and retained 
     in the Lower Colorado River Basin Development Fund, 
     specifically--
       (A) $18,300,000 to implement section 304(c)(3);
       (B) $891,200 to implement a water management plan for the 
     San Xavier Reservation under section 308(d) of the Southern 
     Arizona Water Rights Settlement Amendments Act of 2004 (as 
     contained in the amendment made by section 301);
       (C) $237,200 to implement a water management plan for the 
     eastern Schuk Toak District under section 308(d) of the 
     Southern Arizona Water Rights Settlement Amendments Act of 
     2004 (as contained in the amendment made by section 301);
       (D) $4,000,000 to complete the water resources study under 
     section 311(d) of the Southern Arizona Water Rights 
     Settlement Amendments Act of 2004 (as contained in the 
     amendment made by section 301);
       (E) $215,000 to develop and implement a groundwater 
     monitoring program for the San Xavier Reservation under 
     section 311(c)(1) of the Southern Arizona Water Rights 
     Settlement Amendments Act of 2004 (as contained in the 
     amendment made by section 301);
       (F) $175,000 to develop and implement a groundwater 
     monitoring program for the eastern Schuk Toak District under 
     section 311(c)(2) of the Southern Arizona Water Rights 
     Settlement Amendments Act of 2004 (as contained in the 
     amendment made by section 301); and
       (G) $250,000 to complete the Asarco land exchange study 
     under section 311(f) of the Southern Arizona Water Rights 
     Settlement Amendments Act of 2004 (as contained in the 
     amendment made by section 301);
       (7) the State has enacted legislation that--
       (A) qualifies the Nation to earn long-term storage credits 
     under the Asarco agreement;
       (B) implements the San Xavier groundwater protection 
     program in accordance with paragraph 8.8 of the Tohono 
     O'odham settlement agreement;
       (C) enables the State to carry out section 306(b); and
       (D) confirms the jurisdiction of the State court having 
     jurisdiction over Gila River adjudication proceedings and 
     decrees to carry out the provisions of sections 312(d) and 
     312(h) of the Southern Arizona Water Rights

[[Page 23802]]

     Settlement Amendments Act of 2004 (as contained in the 
     amendment made by section 301);
       (8) the Secretary and the State have agreed to an 
     acceptable firming schedule referred to in section 
     105(b)(2)(C); and
       (9) a final judgment has been entered in Central Arizona 
     Water Conservation District v. United States (No. CIV 95-625-
     TUC-WDB(EHC), No. CIV 95-1720-PHX-EHC) (Consolidated Action) 
     in accordance with the repayment stipulation as provided in 
     section 207.
       (c) Failure To Publish Statement of Findings.--If the 
     Secretary does not publish a statement of findings under 
     subsection (a) by December 31, 2007--
       (1) the 1982 Act shall remain in full force and effect;
       (2) this title shall not take effect; and
       (3) any funds made available by the State under this title 
     that are not expended, together with any interest on those 
     funds, shall immediately revert to the State.

       TITLE IV--SAN CARLOS APACHE TRIBE WATER RIGHTS SETTLEMENT

     SEC. 401. EFFECT OF TITLES I, II, AND III.

       None of the provisions of title I, II, or III or the 
     agreements, attachments, exhibits, or stipulations referenced 
     in those titles shall be construed to--
       (1) amend, alter, or limit the authority of--
       (A) the United States to assert any claim against any 
     party, including any claim for water rights, injury to water 
     rights, or injury to water quality in its capacity as trustee 
     for the San Carlos Apache Tribe, its members and allottees, 
     or in any other capacity on behalf of the San Carlos Apache 
     Tribe, its members, and allottees, in any judicial, 
     administrative, or legislative proceeding; or
       (B) the San Carlos Apache Tribe to assert any claim against 
     any party, including any claim for water rights, injury to 
     water rights, or injury to water quality in its own behalf or 
     on behalf of its members and allottees in any judicial, 
     administrative, or legislative proceeding consistent with 
     title XXXVII of Public Law 102-575 (106 Stat. 4600, 4740); or
       (2) amend or alter the CAP Contract for the San Carlos 
     Apache Tribe dated December 11, 1980, as amended April 29, 
     1999.

     SEC. 402. ANNUAL REPORT.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act and annually thereafter, the Secretary 
     shall submit to the Committee on Energy and Natural Resources 
     of the Senate and the Committee on Resources of the House of 
     Representatives a report that describes the status of efforts 
     to reach a negotiated agreement covering the Gila River water 
     rights claims of the San Carlos Apache Tribe.
       (b) Termination.--This section shall be of no effect after 
     the later of--
       (1) the date that is 3 years after the date of enactment of 
     this Act; or
       (2) the date on which the Secretary submits a third annual 
     report under this section.

     SEC. 403. AUTHORIZATION OF APPROPRIATIONS.

       (a) San Carlos Apache Tribe.--There is authorized to be 
     appropriated to assist the San Carlos Apache Tribe in 
     completing comprehensive water resources negotiations leading 
     to a comprehensive Gila River water settlement for the Tribe, 
     including soil and water technical analyses, legal, 
     paralegal, and other related efforts, $150,000 for fiscal 
     year 2006.
       (b) White Mountain Apache Tribe.--There is authorized to be 
     appropriated to assist the White Mountain Apache Tribe in 
     completing comprehensive water resources negotiations leading 
     to a comprehensive water settlement for the Tribe, including 
     soil and water technical analyses, legal, paralegal, and 
     other related efforts, $150,000 for fiscal year 2006.
       (c) Other Arizona Indian Tribes.--There is authorized to be 
     appropriated to the Secretary to assist Arizona Indian tribes 
     (other than those specified in subsections (a) and (b)) in 
     completing comprehensive water resources negotiations leading 
     to a comprehensive water settlement for the Arizona Indian 
     tribes, including soil and water technical analyses, legal, 
     paralegal, and other related efforts, $300,000 for fiscal 
     year 2006.
       (d) No Limitation on Other Funding.--Amounts made available 
     under subsections (a), (b), and (c) shall not limit, and 
     shall be in addition to, other amounts available for Arizona 
     tribal water rights negotiations leading to comprehensive 
     water settlements.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Arizona (Mr. Hayworth) and the gentlewoman from the Virgin Islands 
(Mrs. Christensen) each will control 20 minutes.
  The Chair recognizes the gentleman from Arizona (Mr. Hayworth).


                             General Leave

  Mr. HAYWORTH. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on S. 437, the Senate bill 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arizona?
  There was no objection.
  Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, S. 437, sponsored by Senator John Kyle and supported by 
a bipartisan group of our House colleagues in Arizona and New Mexico, 
represents years of negotiations among representatives of the Federal 
Government, the States of Arizona and New Mexico, the Gila River Indian 
community, as well as various communities in the region.
  This bill offers a comprehensive approach to resolving certain Indian 
water claims and settles long-standing litigation. It also provides 
long-term water use certainty for non-Indian water users and allows New 
Mexico to develop long-promised water supplies.
  I commend my colleague, Senator Kyl, the sponsor of this bill, and so 
many others for helping foster the historic agreements in this 
legislation.
  Mr. Speaker, this legislation offers most everyone something, but not 
everything to anyone. It represents hard-fought compromise that 
deserves passage. I would urge my colleagues to support this bipartisan 
bill.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. CHRISTENSEN. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, it is with pleasure that I join my colleagues in support 
of S. 437. The bill includes several important revisions, including new 
language in title 4 that will assist the San Carlos Apache Tribe, the 
White Mountain Apache Tribe, and other tribes in Arizona, as they work 
to complete their own comprehensive water settlements. I am grateful 
for the cooperation shown by everyone who participated in this effort.
  As I express my support for S. 437, I also wish to remind my 
colleagues that this legislation is the most significant and far-
reaching water settlement legislation ever considered by this House.

                              {time}  1545

  Certainly, the benefits to all parties including the United States 
will be significant. But this legislation will also be very expensive, 
and many of the costs will be off-budget, avoiding the annual 
appropriations process.
  The legislation, in effect, will settle claims of the Gila River 
Indian Community by dramatically restructuring the payments for the 
Central Arizona Project. However, I am satisfied that, on balance, the 
benefits of this legislation will significantly outweigh the costs on 
the taxpayers.
  We support the passage of S. 437.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Arizona (Mr. Grijalva).
  Mr. GRIJALVA. Mr. Speaker, I want to thank the ranking member, the 
gentleman from West Virginia (Mr. Rahall), and the chairman of the 
Committee on Resources, my esteemed colleague, the gentlewoman from the 
Virgin Islands (Mrs. Christensen) for her support on the Committee on 
Resources for assuring that we would have an opportunity to consider 
this legislation today.
  This important piece of legislation, S. 437, H.R. 885, will begin the 
process of settling major issues related to water in Arizona today. 
While I agree this legislation is not perfect, it does provide the 
opportunity to resolve Indian water rights claims in Arizona and secure 
water for their future use.
  But the benefits of this legislation are not restricted to Indian 
tribes. The bill will also provide certainty for municipal governments 
such as the City of Tucson and my district, which will now have 
assurances as to water supply.
  Under this legislation nearly half of the benefits provided by the 
Central Arizona Project will be available to support economic 
development within Indian reservations. Two tribes within my district, 
the Gila River Indian Community and the Tohono o'Odham, are among the 
beneficiaries of this enhanced opportunity.
  In Indian Country today, one of the most difficult hurdles to tribes 
utilizing their water rights is the high cost of water project 
development.

[[Page 23803]]

While the Federal government over the years has helped facilitate and 
pay for non-Indian water projects, Indian tribes have been left without 
such assistance. This legislation, however, provides a reliable funding 
source which will help pay the operation, maintenance and replacement 
costs associated with each acre foot of water.
  Funding will also be available to underwrite the cost of two tribal 
water settlements provided by this legislation, approved by this 
legislation. In addition, a new source of funding will be available to 
underwrite the costs of new Indian water rights settlements. By making 
the CAP water and unappropriated funding available, this legislation 
makes it much more likely that all the remaining Indian water right 
disputes in Arizona can and will be resolved in the near future.
  Finally, the sponsors and the Resources staff members have worked 
hard to include language in this bill to protect other tribes' future 
settlements, in particular, White Mountain Apache and San Carlos Apache 
Tribes. Title IV of this bill provides funding for these tribes and 
others to work on their own settlements and also makes it clear that 
the San Carlos Apache Tribe will not be prejudiced in settling their 
water claims. In addition, the Secretary of Interior is required to 
report to us annually on efforts to settle the Apache claims that were 
not settled by the partial San Carlos water settlement in 1992.
  I hope all of my colleagues will support this legislation and the 
innovative effort it represents to resolve some of the most difficult 
and pressing water management issues in Arizona.
  Mr. HAYWORTH. Mr. Speaker, I yield two minutes to the gentleman from 
New Mexico (Mr. Pearce).
  Mr. PEARCE. Mr. Speaker, I rise in support of S. 437. Mr. Speaker, I 
want to thank the gentleman from California (Mr. Pombo) and the ranking 
member, the gentleman from West Virginia (Mr. Rahall), along with the 
subcommittee chairman, the gentleman from California (Mr. Calvert), and 
the ranking member, the gentlewoman from California (Mrs. Napolitano), 
for their hard work in getting an agreement that allows us to vote on 
this important water settlement bill today.
  I would also like to pay tribute to the gentleman from Arizona (Mr. 
Hayworth) and the Arizona delegation in anticipation of receiving the 
same from them in this bill.
  In the 1968 Colorado River Basin Project Act, New Mexico was 
apportioned 18,000 acre feet of Gila River water. The Gila River's 
headwaters are in New Mexico and, therefore, New Mexicans always felt 
like they had claim to some of this water. However, we had not been 
able to use any of it, and it has simply been paper water.
  New Mexicans have long sought to develop this water and because of 
their willingness to negotiate in good faith and compromise with the 
State of Arizona and downstream water users, we have now reached an 
agreement. That agreement is a bipartisan solution which I feel 
represents the best interests of both States.
  This historic water bill will not only provide a settlement to long-
standing Indian water rights in Arizona, but it will also ensure 
Southwestern New Mexico gets the water it was apportioned in the 1968 
Act. New Mexico was not able to develop this water because the 1968 Act 
required New Mexico to keep whole senior water uses in Arizona. After 
many long months of negotiation, all the necessary agreements between 
Arizona and New Mexico are in place to allow this bill to move forward.
  It is Congress's role to codify agreed-upon settlements, especially 
where almost every part has been negotiated in good faith for a number 
of years on very difficult and contentious issues. Without the 
agreements negotiated between the two States and which are reflected in 
the amendments to the 2004 Arizona Water Settlements Act, the New 
Mexico unit could not be developed. However, with this agreement, after 
nearly 40 years New Mexico water users will be able to develop water 
that they were promised in 1968.
  Mr. Speaker, I urge all of my colleagues to support S. 437.
  Mrs. CHRISTENSEN. Mr. Speaker, I yield such time as he may consume to 
the gentleman from Arizona (Mr. Pastor).
  Mr. PASTOR. Mr. Speaker, I rise in support of this critical 
legislation, which is co-sponsored by the entire Arizona delegation.
  Since before the founding of Arizona as a State, we have, like most 
other Western States, struggled to meet the water demands of our 
inhabitants. It has not been easy. In 1968, in hopes of resolving these 
problems, the Central Arizona Project was authorized by the Federal 
Government and charged with distributing water from the Colorado River 
to communities and tribes in the central and southern parts of Arizona. 
However, for decades there have been disputes on the appropriate 
distribution of these waters, resulting in litigation.
  I believe this legislation will resolve most of these disputes. The 
entire Arizona delegation, both my Democratic and Republican colleagues 
as well as our two senators and our governor, all believe this is the 
best possible solution to this water issue. The people, municipalities, 
Native American tribes and nations and agricultural and environmental 
organizations within the State also agree.
  This legislation represents a significant step forward in Arizona's 
continuing effort to resolve Native American water rights claims for 
the benefit of all of the people of Arizona. This bill will resolve the 
claims of the Gila River Indian community and the remaining claims of 
the Tohono o'Odham Nation, while laying the groundwork for resolving 
the other outstanding water right claims of Arizona's Native American 
communities and nations.
  The bill approves and ratifies the Gila River Indian Community Water 
Rights Settlement Act, amends the Southern Arizona Water Rights 
Settlement Act of 1982, and affirms the right of the San Carlos Apache 
Tribe to make future claims for water rights. The Senate has approved 
this bill unanimously and has passed the House Committee on Resources, 
which I would like to thank the ranking member, the gentleman from West 
Virginia (Mr. Rahall), for bringing this bill to the floor.
  It is critical to our State that we approve it here today and move it 
forward to the President for enactment. I urge my colleagues to follow 
the lead of all eight Arizona representatives and support its passage.
  Mr. BACA. Mr. Speaker, today, I rise in support of S. 437, the 
Arizona Water Settlements Act.
  I am a cosponsor of H.R. 885, the House version of this landmark bill 
that resolves critical water issues facing Arizona and Arizona tribes 
today.
  Congress authorized the Central Arizona project 35 years ago.
  Today, S. 347 offers resolution for water use in Arizona, providing 
additional water supplies to resolve tribal claims and accommodate 
rapid population growth.
  Among other improvements, this bill designs a solid system and 
infrastructure to provide Arizona tribes with affordable water.
  After many years, tribes in this region, such as the Gila River 
Indian Community, will be able to retain and maintain their water 
rights without continuous years of court battles.
  Everyone has the right to clean, abundant and affordable water--and 
our first Americans are no exception.
  The Arizona Water Settlements Act will be considered the largest 
Indian water settlement in U.S. history, and this was obviously no 
small task.
  The bill is strongly supported by appropriate state agencies, the 
entire Arizona delegation, the Gila River Community, the Tohono O'odham 
tribe, and a number of diverse Arizona interests.
  I commend the Arizona delegation and the Democratic and Republican 
staff for working through their differences for a polished bill.
  I look forward to seeing this bill become law, and the positive 
changes it will make for Arizona's water supply in the future.
  Mr. HAYWORTH. Mr. Speaker, I would simply comment that I welcome the 
statements of my two colleagues from Arizona on the other side of the 
aisle. I thank my friend from the Virgin Islands for managing on the 
minority side.
  Mr. Speaker, we have no further requests for time, and I yield back 
the balance of my time.

[[Page 23804]]


  Mrs. CHRISTENSEN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Terry). The question is on the motion 
offered by the gentleman from Arizona (Mr. Hayworth) that the House 
suspend the rules and pass the Senate bill, S. 437.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________