[Senate Report 108-360]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 719
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-360
======================================================================
 
                     ARIZONA WATER SETTLEMENTS ACT

                                _______
                                

               September 28, 2004.--Ordered to be printed

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 437]

    The Committee on Energy and Natural Resources, to which was 
referred the 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, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

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. 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 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.
          (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.
          (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 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.
  (b) 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 (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 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);
                  ``(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, 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 the Arizona Water Settlements 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; and
                          ``(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;
                  ``(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)'';
          (2) by striking ``clause'' each other place it appears and 
        inserting ``paragraph'';
          (3) by striking ``clauses'' each place it appears and 
        inserting ``paragraphs''; and
          (4) 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.

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) No major federal action.--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 of 1969 (42 U.S.C. 4321 et seq.).
          (2) Environmental compliance activities.--The Secretary shall 
        promptly carry out the environmental compliance activities 
        necessary to implement the Gila River agreement, including 
        activities under the National Environmental Policy Act of 1969 
        and the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).
          (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, the San Carlos 
                        Irrigation and Drainage District may use 
                        locally accepted engineering standards and the 
                        labor and contracting authorities that are 
                        available to the District under State law;
                          (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.
          (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 or the United States 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 
        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.
                  (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;
                                  (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; 
                        and
                          (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.
                  (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 
                        water rights for land within the exterior 
                        boundaries of the Reservation or the San Carlos 
                        Irrigation Project arising from time immemorial 
                        and, thereafter, forever;
                          (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 
                        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 
                        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 
                the extent the United States holds legal title to the 
                water rights as described in article V or VI 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 
                        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;
                  (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 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 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) No major federal action.--Execution of the New Mexico 
        Consumptive Use and Forbearance Agreement and of the New Mexico 
        Unit Agreement shall not constitute a major Federal action 
        under the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.).
          (2) Environmental compliance activities.--Upon execution of 
        the New Mexico Unit Agreement, the Secretary shall promptly 
        carry out the environmental compliance activities necessary to 
        implement such agreement, including activities under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) and the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).
          (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 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 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-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 09361 (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--
                  ``(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--
                          ``(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 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 Novermber 
                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
                                  ``(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 XavierReservation, 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 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) In general.--Execution of an agreement 
                described in paragraph (2) shall not constitute major 
                Federal action under the National Environmental Policy 
                Act of 1969 (42 U.S.C. 4321 et seq.).
                  ``(B) Environmental compliance activities.--The 
                Secretary shall carry out all necessary environmental 
                compliance activities during the implementation of the 
                agreements described in paragraph (2), including 
                activities under--
                          ``(i) the National Environmental Policy Act 
                        of 1969 (42 U.S.C. 4321 et seq.); and
                          ``(ii) the Endangered Species Act of 1973 (16 
                        U.S.C. 1531 et seq.).
                  ``(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--
                  ``(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.
          ``(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
          ``(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 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 shall be construed to 
amend, alter, or limit the authority of--
          (1) 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
          (2) 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).

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.

                                Purpose

    The purpose of S. 437, as ordered reported, is to provide 
for adjustments to the Central Arizona Project, 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.

                          Background and Need

    S. 437 authorizes and funds the settlement of a number of 
water issues in central and southern Arizona. These issues 
involve, to a large extent, the Central Arizona Project (CAP), 
a federally-developed water project authorized in 1968 to 
deliver approximately 1.5 million acre-feet of Colorado River 
water annually to central Arizona. The resolution of these CAP-
related issues also directly facilitates two Indian water 
rights settlements which are authorized by this bill. Those 
settlements will benefit the Gila River Indian Community and 
the Tohono O'odham Nation.
    The CAP settlement and the two Indian water rights 
settlements are contained in Titles I-III of S. 437. They are 
inextricably linked. These matters have involved years of 
litigation between a large number of parties in Arizona. S. 437 
will benefit a large portion of the population in Arizona by 
alleviating the water supply uncertainties that currently exist 
for several communities as a result of the ongoing litigation.
    In addition to the three settlements authorized in this 
bill, S. 437 contains a fourth title which recognizes the need 
to complete a fourth settlement, that of the San Carlos Apache 
Tribe for its water rights claims in the Gila River. Titles I-
IV are described in more detail below.

                                TITLE I

    The Arizona Water Settlements Act is based on a stipulation 
between the United States and the Central Arizona Water 
Conservation District (CAWCD), originally approved by the 
federal district court on May 9, 2000, that would resolve 
litigation concerning repayment and operational issues 
associated with the CAP. A revised Stipulation Regarding a Stay 
and for Ultimate Judgment Upon the Satisfaction of Conditions 
was filed in United States District Court, in Central Arizona 
Water Conservation District v. United States (No. CIV 95-625-
TUC-WDB (EHC), No. CIV 95-1720-OHX-EHC (Consolidated Action)) 
on April 24, 2003. The stipulation was revised to reflect a 
realistic timetable for passing legislation and completing 
conditions which are a prerequisite to finalizing the 
settlements. Those conditions include enacting federal 
legislation that would:
          (a) Fix a final allocation of CAP water supplies 
        between the federal government and local water users 
        (47% to US/Indian tribes and 53% to non-Indian users), 
        including a final additional allocation of 197,500 
        acre-feet (af) of non-Indian agricultural priority 
        water to the United States for use in facilitating new 
        Indian water rights settlements;
          (b) Authorize a settlement of the Gila River Indian 
        Community's water rights claims (Title II);
          (c) Authorize amendments necessary to finalize the 
        1982 Southern Arizona Water Rights Settlement Act 
        (SAWRSA) involving the Tohono O'odham Nation (Title 
        III); and
          (d) Authorize the Secretary of the Interior to use 
        Lower Basin Development Fund (created by section 403 of 
        the 1968 Colorado River Basin Project Act) revenues, 
        without further appropriation, to pay fixed operation, 
        maintenance, and replacement (OM&R) costs associated 
        with the delivery of CAP water to Arizona Indian 
        tribes, fund Indian water rights settlement costs, fund 
        water delivery systems to allow Indian tribes to 
        utilize their CAP water allocation, and fund future 
        Indian water rights settlements.
    The stipulation's conditions must be satisfied by April 
2012 or it will expire and the underlying litigation will 
continue. Title I of S. 437 addresses conditions (a) and (d) as 
set forth above.

                                TITLE II

    Title II of S. 437 is the ``Gila River Indian Community 
Water Rights Settlement Act of 2004.'' This part of the bill is 
particularly noteworthy because the certainty associated with 
resolving the Community's water rights claims is key to 
ensuring that Title I's allocation of 197,500 acre-feet of CAP 
water for Arizona Indian tribes is a sufficient amount of 
water, not only for the Community, but to provide an additional 
supply available to resolve other Indian water rights claims in 
Arizona.
    The Gila River Indian Reservation (known today as the Gila 
River Indian Community) was created by an Act of Congress in 
1859 and enlarged by seven separate Executive Orders from 1876 
to 1915. Currently, the Reservation encompasses approximately 
377,000 acres of land in central Arizona. Most of these lands 
are located in the Gila River watershed.
    The Community's settlement would fully resolve its water 
rights claims in the Gila River adjudication--a case currently 
pending before the state district court in Arizona. The claims, 
in terms of water quantity, are among the largest filed by the 
United States on behalf of an Indian tribe in a water rights 
adjudication. Resolution of these claims, in addition to 
providing the Community with a long-term water supply 
consistent with its claims, will help provide certainty for 
those non-Indian water users whose use of water is at risk due 
to the Community's water rights claims. The Community's 
settlement water budget totals 653,500 acre-feet per year 
(including approximately 328,000 acre-feet of CAP water) and it 
will receive a direct federal contribution of $200 million to 
assist the Community in putting its water to beneficial use. 
The Community will also benefit from the use of the Lower 
Colorado River Basin Development Fund to pay fixed OM&R costs 
associated with the delivery of the Community's CAP water.
    The Settlement also resolves a number of long-standing 
issues associated with a federal court decree concerning water 
use in the upper Gila River in Arizona and the Virden Valley in 
New Mexico. The 1935 decree, issued in a suit known as the 
Globe Equity case, has been the basis for ongoing litigation 
concerning its interpretation. Title II will resolve a number 
of the issues in Globe Equity litigation and will therefore 
benefit a number of the upper Gila River water users. The 
Settlement also resolves a number of issues concerning the 
rights of New Mexico water users to divert additional water in 
the upper Gila River system as authorized in the 1968 Colorado 
River Basin Project Act.

                               TITLE III

    Title III of S. 437 is the Southern Arizona Water Rights 
Settlement Amendments Act of 2004. This Act provides a 
substitute amendment to the original Southern Arizona Water 
RightsSettlement Act (SAWRSA) that was enacted by Congress in 
1982. SAWRSA settled a suit filed in 1975 by the United States, on 
behalf of the Papago Tribe (now the Tohono O'odham Nation) and two 
individual Indian allottees representing a class of Indian trust 
allotment landowners, against several major water users in the upper 
Santa Cruz Basin, including the City of Tucson and other major mining 
and farming interests, claiming damages and seeking to enjoin 
groundwater pumping (United States v. Tucson).
    The terms of the original settlement called for the Tohono 
O'odham Nation (Nation) to receive, without charge, 66,000 
acre-feet of water annually, the right to pump 10,000 acre-feet 
of groundwater annually at San Xavier, farm improvements, and a 
$15 million trust fund. Of the 66,000 acre-feet, 37,800 acre-
feet was to be the Nation's contracted CAP water for the San 
Xavier district and the eastern Schuk Toak district. An 
additional 28,200 acre feet was to be acquired by the Secretary 
and delivered after United States v. Tucson was dismissed. This 
28,200 acre-feet was to be effluent water transferred from the 
City to the United States. Additionally, the City along with 
other State and local entities was to contribute a total of 
$5.25 million to a cooperative fund. The fund was to help the 
United States pay the on-going costs of implementing the 
settlement.
    The City, State and local interests timely performed all of 
their obligations under the settlement and the Nation agreed to 
dismiss the case. However, a dispute between the Nation and the 
San Xavier allottees concerning ownership of the settlement 
water and entitlement to financial benefits prevented final 
dismissal of the lawsuit and implementation of the settlement. 
In 1993, the allottees filed a new lawsuit (Alvarez v. City of 
Tucson) in which they sought, among other things, to enjoin 
groundwater pumping by the City and others. Motions to dismiss 
the lawsuits on the basis of SAWRSA have been pending before 
the court for some time.
    For many years, the City and State worked with the Nation, 
the San Xavier District, and a San Xavier allottee group to 
help them achieve a resolution of their dispute. As a result, 
the Nation, the San Xavier District, the Schuk Toak District, 
the allottees, the City of Tucson, the State, and other parties 
negotiated the amendments to SAWRSA which constitute Title III.
    Title III incorporates the elements of the agreement 
between the Nation and the allottees concerning the division of 
water and financial resources. It would allow the Nation 
greater flexibility in putting its water resources to 
beneficial use, and would assure implementation of the basic 
elements of the 1982 settlement. Title III would resolve 
asserted ambiguities in the existing law and assure dismissal 
of the pending lawsuits. It spells out specific benefits for 
the San Xavier allottee interests. The obligations of the U.S. 
to rehabilitate the existing Cooperative Farm at San Xavier for 
the allottees and to expand the Farm to 2,200 acres are also 
clarified. Rehabilitation will include bank protection on the 
Santa Cruz and the elimination of sink holes. The United 
States' obligation to build a new farm in the San Xavier 
District is clarified, with the District having the option to 
receive cash in lieu of the new farm improvements. In addition, 
CAP water is identified as the source of the 28,200 acre feet 
the Nation is to receive when the lawsuits have been dismissed.

                                TITLE IV

    Title IV of S. 437 does not settle or resolve the San 
Carlos Apache Tribe's water rights claims in the Gila River 
adjudication. In the absence of a settlement, Title IV simply 
makes clear that Titles I-III do not limit the ability of the 
San Carlos Apache Tribe, or the United States as its trustee, 
from pursuing any claims. The Secretary is also charged with 
reporting to Congress on the status of any water rights 
settlement negotiations with the Tribe.

                          Legislative History

    S. 437 was introduced by Senator Kyl on February 12, 2003 
and referred to the Energy and Natural Resources Committee. 
Senator McCain is an original co-sponsor. Senator Johnson is 
also a co-sponsor. The Committee on Indian Affairs and the 
Committee on Energy and Natural Resources Subcommittee on Water 
and Power held a joint hearing on S. 437 on September 30, 2003 
(S. Hrg. 108-216). At the business meeting on September 15, 
2004, the Committee on Energy and Natural Resources ordered S. 
437 favorably reported with an amendment in the nature of a 
substitute.
    During the 107th Congress, a similar measure, S. 2992, was 
introduced by Senator Kyl and referred to the Committee on 
Energy and Natural Resources on September 24, 2002, but the 
Committee took no further action.
    During the 106th Congress, a similar measure, S. 3231, was 
introduced by Senator Kyl and referred to the Committee on 
Energy and Natural Resources on October 24, 2000, but the 
Committee took no further action.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in an 
open business session on September 15, 2004, by a unanimous 
voice vote of a quorum present, recommends that the Senate pass 
S. 437, if amended as described herein.

                          Committee Amendment

    The amendment in the nature of a substitute makes the 
following changes to S. 437 as introduced:
    1. Provides definitions of the NM Cap Entity, the New 
Mexico Unit, New Mexico Unit Agreement, and New Mexico 
Consumptive Use and Forbearance Agreement which is an exhibit 
to the UVD Agreement.
    2. Defines the UV impact zone according to its definition 
in the UVD Agreement.
    3. Clarifies the viability of decisions reached by 
arbitration irrespective of United States participation.
    4. Protects the United States from claims of not 
implementing the Arizona Water Settlements Act if funds in the 
Lower Basin Development Act or appropriations are insufficient 
to carry out all activities authorized.
    5. Changes the name of the Central Arizona Project 
Settlement Act of 2003 to the Central Arizona Project 
Settlement Act of 2004.
    6. Revises the allocation of entitlements under long-term 
contracts for CAP water decreasing the allocation to Indians to 
650,724 acre-feet with the balance allocated to other parties.
    7. Allows up to 17,000 acre-feet of CAP municipal and 
industrial water under contract to Asarco to be exchanged with 
the Gila River Indian Community.
    8. Removes the restriction on amended contracts from the 
Central Arizona Project requiring them to conform to the 
shortage sharing provisions of the Gila River Agreement.
    9. Provides that the Arizona Water Settlements Act 
supersedes any provisions in the Master agreement, Gila River 
Agreement, Joint Control Board Agreement, Amended and Restated 
Community CAP Water Delivery Contract, leases of Community CAP 
water, Reclaimed Water Exchange Agreement, Community Repayment 
Contract, the New Mexico Consumptive Use and Forbearance 
Agreement, Tohono O'odham Settlement Agreement, the Tucson 
Agreement, Asarco Agreement, and lease number H54-0916-0972 
should there be any conflicts between the agreements and the 
Act and allows amendments to these agreements to be authorized, 
ratified, and confirmed to the degree that they make the 
agreements consistent with the Act.
    10. Specifies conditions of debt collection for contractors 
that do not relinquish their agriculture priority water under 
the master agreement.
    11. Provides authority to the Secretary to extend the 
repayment schedule by CAP contractors.
    12. Specifies the priority of funds allocated by the 
Secretary from the Lower Basin Development Fund.
    13. Specifies the amounts and conditions for payments from 
the Lower Colorado Basin Development Fund to the New Mexico 
Unit Fund.
    14. Specifies the amount, annual limits, and indexing of 
funds allocated from the Lower Colorado Basin Development Fund 
for the San Carlos Irrigation Project rehabilitation.
    15. Creates a Future Indian Water Settlement Subaccount in 
the Lower Colorado Basin Development Fund, specifies the limits 
and conditions on allocation of funds to that subaccount, and 
ties the dispersal of those funds to Congressionally authorized 
water rights settlements.
    16. Allows the U.S. Treasury to invest portions of the 
Lower Colorado Basin Development Fund in an array of government 
investment vehicles.
    17. Restricts the Secretary from using funds in the Lower 
Colorado Basin Development Fund for Ak-Chin OM&R charges.
    18. Restricts payments from the Lower Colorado Basin 
Development Fund until January 1, 2010.
    19. Modifies the purposes, removes the findings, and 
changes the title of the Gila River Indian Community Water 
Rights Settlement Act of 2004.
    20. Authorizes the Secretary to execute the New Mexico 
Consumptive Use and Forbearance Agreement .
    21. Modifies Secretarial authority to rehabilitate the San 
Carlos Irrigation Project including providing electric power at 
direct cost. Modifies and articulates the responsibilities and 
authority of the Joint Control Board and the financial 
responsibilities of the Secretary. Specifies responsibilities 
for continued operations of certain elements of the project. 
Allows local engineering standards to be applied, and specifies 
the allocation of conserved water pursuant to the terms of the 
Gila River Agreement.
    22. Specifies the manner in which allottee benefits related 
to water rights and water infrastructure will be managed by the 
Gila River Indian Community with United States involvement and 
the authority and restrictions on the authority of the 
Community to lease, distribute, exchange, or allocate CAP water 
and eliminates United States responsibility for financial 
management and funds associated with these transactions. It 
also specifies methods for allottees to seek remedy.
    23. Requires that the Gila River Indian Community develop 
and enact a water code within 18 months and lays out conditions 
that must be met by the code, by allottees who bring claims, 
and by the Community in implementing the code.
    24. Significantly modifies the waiver conditions for most 
parties related to water quality claims.
    25. Rewrites the waivers and conditions of claims by the 
Gila River Indian Community and the United States against the 
Salt River Project.
    26. Reiterates that nothing in the Gila River Indian Water 
Rights Settlement affects the rights of the United States or 
the State of Arizona to take action under laws governing human 
health, safety, or the environment.
    27. Specifies waiver conditions for claims against the 
Upper Valley Diverters with special emphasis on the newly 
defined UV impact zone consistent with the UVD Agreement.
    28. Authorizes the Gila River Indian Community in 
performance of its obligations under the Gila River Agreement 
to agree to never adopt water quality standards that are more 
stringent than the State of Arizona.
    29. Specifies the meaning of the concept of land within the 
exterior boundaries of the Reservation and the ability to 
allocate water rights to various subsets of that land including 
for lands acquired by fee title.
    30. Modifies the creation and conditions of management and 
investment of the Gila River Indian Community Water OM&R Trust 
Fund.
    31. Authorizes the Secretary to contract with the Gila 
Valley Irrigation District and the Franklin Irrigation District 
and provide funds for these districts to acquire land and 
associated UV decreed water rights in order to reduce the total 
water demand on the Gila River. The Districts take 
responsibility to acquire the lands. The methods for 
determining value of the lands, amount of land and schedules 
are articulated and the responsibility to the San Carlos 
Irrigation District for lack of land acquisition is clarified.
    32. Specifies the conditions of the New Mexico Unit. 
Authorizes, ratifies and confirms the New Mexico Consumptive 
Use and Forbearance Agreement and authorizes the Secretary to 
execute the NM Consumptive Use and Forbearance Agreement, and 
the NM Unit Agreement.
    33. Directs that $15 million be provided to the UV 
irrigation districts to comply with the New Mexico Consumptive 
Use and Forbearance Agreement, such funding to be indexed 
according to the referenced standard.
    34. Authorizes the Secretary to accept transfer of title 
from the Salt River Project Agriculture Improvement and Power 
District a transfer of the Blue Ridge Project and to modify the 
availability of the water for municipal and domestic uses, 
rename the reservoir, provide for the long-term care, operation 
and maintenance, specify court of jurisdiction for 
interpretation of legislation and remove the facilities from 
licensing and regulatory responsibility of the Federal Energy 
Regulatory Commission.
    35. Removes the findings for the Southern Arizona Water 
Rights Settlement and replaces them with purposes.

                      Section-by-Section Analysis

    Section 1 contains the short title and table of contents.
    Section 2 defines terms used in Titles I and II.
    Section 3 addresses the effect of the United States non-
participation in any arbitration proceeding conducted pursuant 
to certain specified provisions. The procedures for the United 
States participation in arbitration are also specified. It is 
the Committee's understanding that any arbitration proceeding 
referred to in subsection (a) will concern only certain aspects 
of the water rights of the Community, the San Carlos Irrigation 
Project or the Miscellaneous Flow Lands, 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. This understanding is important because the San 
Carlos Irrigation Project is a unique entity in which the 
United States hold title to water rights but each of the San 
Carlos Irrigation Project parties have the rights to the 
benefits of those water rights.
    Section 4 limits the liability of the United States for 
failure to carry out any obligation or activity required by the 
Act.

Title I--Central Arizona Project Settlement

    Section 101 contains the short title.
    Section 102 contains findings for the Act.
    Section 103 clarifies that, notwithstanding any other law, 
the CAP system may be used to transport non-project water for 
any purpose for which the project was authorized, including 
municipal and industrial uses.
    Section 104 provides for the reallocation of CAP water in 
accordance with the Master Agreement among the United States, 
the Arizona Department of Water Resources, and CAWCD.
    Subsection 104(a) directs the Secretary to reallocate water 
relinquished by CAP non-Indian agricultural subcontractors 
under the Master Agreement for use by Arizona Indian tribes. 
Section 104(a)(1) specifies that 197,500 acre-feet of the 
relinquished CAP agricultural water will be available for the 
reallocation. Of that total, 102,000 acre-feet will be 
reallocated to the Gila River Indian Community and 28,200 acre-
feet to the Tohono O'odham Nation to complete the settlements 
approved under Titles II and III of this Act. The remaining 
67,300 acre-feet will be held by the Secretary and used in the 
future to resolve other Indian water claims in Arizona. To 
encourage Indian water rights settlements, until December 31, 
2030, the Secretary may only reallocate the remaining tribal 
water pursuant to a settlement approved by Congress. After that 
time, if any tribal CAP water remains, the Secretary may 
allocate such water without a congressionally-enacted 
settlement to help ensure that Arizona Indian tribes receive 
the benefit of the water made available in this subsection. Any 
water so allocated, will be credited against any tribal water 
rights claim. The Committee has also included in this 
subsection, a provision requiring the Secretary to report to 
Congress on the status of Indian water rights settlements and 
other tribal water needs in Arizona so that the Congress can 
evaluate whether Arizona Indian tribes are receiving the 
benefits intended.
    Subsection 104(a) also specifically directs the Secretary 
to retain 6,411 acre-feet of this water until December 31, 
2030, for use in a future water rights settlement agreement 
approved by an Act of Congress that settles the Navajo Nation's 
claims to water in Arizona. The 6,411 af of reserved CAP water 
is for possible use by the Navajo Nation in association with a 
water supply project projected to deliver water to the Navajo 
Reservation in eastern Arizona. It is not the Committee's 
intent that the 6,411 af be interpreted to limit additional 
allocations of tribal CAP water to the Navajo Nation to address 
water needs elsewhere on its reservation in Arizona. The 
Committee recognizes that any use of Colorado River water, 
including CAP water reserved for future tribal settlements, can 
only be utilized if consistent with the United States Supreme 
Court Decree in Arizona v. California, and the 1922 Colorado 
River Compact. The Committee recommends that the parties to any 
tribal settlement that proposes using Colorado River water in a 
different manner seek appropriate amendments or stipulations to 
change the aforementioned Decree and Compact.
    Section 104(a)(2) directs the Secretary to reallocate up to 
96,295 acre-feet to the Arizona Department of Water Resources 
to be held in trust for future allocation to non-Indian 
municipal and industrial water users in Arizona.
    Subsection 104(b) directs the Secretary, in accordance with 
applicable law, to reallocate 65,647 acre-feet of currently 
uncontracted CAP municipal and industrial water to various M&I 
water providers based on the recommendation of the Arizona 
Department of Water Resources.
    Subsection 104(c) limits the total amount of CAP water 
entitlements under long-term contracts to 1.415 million acre-
feet. Of that total, up to 47 percent will be available for use 
by Arizona Indian tribes or their lessees and at least 53 
percent will be available for use by non-Indian water users in 
Arizona. Section 104(c) fixes this division of the CAP water 
supply between Indian and non-Indian uses in accordance with 
the Master Agreement.
    Section 104(d) directs the Secretary of the Interior to 
offer amendments to CAP Indian and M&I water service contracts. 
The contract amendments would allow amendment of current CAP 
Indian and M&I contracts allowing them to be permanent with an 
initial delivery term of 100 years (or longer, if a longer term 
is authorized by Congress or provided by existing agreements). 
Under section 104(d), all CAP Indian and M&I contract 
amendments wouldconform to shortage sharing agreements 
contained in the Tohono O'odham settlement agreement approved under 
Title III that have been agreed to among the United States, the State 
of Arizona, CAWCD and other CAP water users.
    Subsection 104(e) clarifies that CAP water may not be 
leased, exchanged, forborne or otherwise transferred in any way 
for use directly or indirectly outside the State of Arizona, 
except pursuant to an agreement with the Arizona Water Banking 
Authority as part of a recognized interstate water banking 
program or to effect an exchange with New Mexico under the New 
Mexico Consumptive Use and Forbearance Agreement ratified by 
section 212 of this Act.
    Subsection 105(a) provides that the Secretary of the 
Interior and the State of Arizona will jointly develop a 
program to ``firm'' 60,648 acre-feet of the CAP non-Indian 
agricultural priority water that is to be reallocated to Indian 
tribes under section 104. When the amount of water available 
for delivery through the CAP in any year is insufficient to 
meet all long-term contract entitlements, non-Indian 
agricultural priority water deliveries are the first to be cut. 
The purpose of the firming program is to insure that the non-
Indian agricultural priority water in question is available for 
delivery with the same degree of reliability as municipal and 
industrial priority CAP water.
    Subsection 105(b) directs the Secretary to firm 28,200 
acre-feet of CAP non-Indian agricultural priority water that is 
to be reallocated to the Tohono O'odham Nation and 8,724 acre-
feet to be reallocated to other Indian tribes. The State of 
Arizona is to firm 15,000 acre-feet of CAP non-Indian 
agricultural priority water that is to be reallocated to the 
Gila River Indian Community.
    Subsection 105(c) authorizes appropriation of the funds 
necessary to carry out the Secretary's firming duties under 
section 105(b).
    Section 106(a) authorizes, ratifies and confirms the Master 
Agreement, under which non-Indian agricultural water service 
subcontractors will relinquish some or all of their long-term 
CAP contract entitlements. The CAP water entitlements 
relinquished under the Master Agreement will be reallocated as 
prescribed in subsections 104(a) and (b). For any such water 
not relinquished, the subcontractor shall continue to be 
responsible for debt owed to the United States as set forth in 
the Master Agreement.
    Subsection 106(b) specifies that debt incurred by CAP non-
Indian agriculture subcontractors under section 9(d) under the 
Reclamation Project Act of August 4, 1939, is nonreimbursable 
and nonrefundable in return for, and as a condition of, 
relinquishing long-term CAP contract entitlements as provided 
in the Master Agreement. Collectively, that 9(d) debt totals 
more than $158 million. Under the Master Agreement, CAWCD has 
agreed to pay about $85 million of that debt and the United 
States has agreed to debt relief in an amount not to exceed 
$73,561,337. Section 106(b) makes the 9(d) debt that the United 
States has agreed to relieve, non-reimbursable and non-
returnable.
    Subsection 106(c) exempts the CAP service area and other 
specified land from the Reclamation Reform Act and any other 
acreage limitation or full cost pricing provisions of federal 
law. One of the purposes of the Central Arizona Project is to 
provide a renewable water supply to agriculture to alleviate 
the significant groundwater overdraft in central Arizona. The 
Reclamation Reform Act limits the agricultural lands that may 
receive CAP water, and therefore has the effect of increasing 
groundwater pumping in central Arizona. The exemption in 
section 106 is consistent with the purpose of the CAP.
    Subsection 107(a) amends section 403(f) of the Colorado 
River Basin Project Act of 1968 (Basin Project Act) to 
authorize new uses for certain funds deposited into the Lower 
Colorado River Basin Development Fund (Fund). Instead of being 
returned to the general fund of the Treasury, the revenues, 
after being credited against the annual payment owed by CAWCD, 
would be made available annually, without further 
appropriation, as described below. Section 107(a) does not 
affect the collection and deposit of revenues to the 
Development Fund, nor does it alter CAWCD's obligation to make 
cash payments sufficient to meet its annual repayment 
obligation for the CAP.
    Subsection 403(f)(1) provides that the Development Fund 
revenues in question, as well as CAWCD's annual payments, will 
continue to be credited against the annual payment owed by 
CAWCD for the CAP. This provision is consistent with the 
current version of section 403(f) and with the CAP repayment 
contract between CAWCD and the United States.
    Subsection 403(f)(2) provides that the monies from the Fund 
that are credited against CAWCD's annual payment under 
subsection (1) may thereafter be used annually, without further 
appropriation for payment of fixed operation, maintenance and 
replacement (OM&R) charges associated with the delivery of CAP 
water to Indian tribes; payment of $53 million to the Gila 
River Indian Community Water OM&R Trust Fund established by 
section 207 of this Act; payment of $147 million (indexed from 
January 1, 2000) for rehabilitation of the San Carlos 
Irrigation Project; payment of the following amounts, as 
reasonably allocated by the Secretary without regard to any 
trust obligation and without regard to priority, except that 
payments to the New Mexico Unit Fund shall be made first: $66 
million (indexed from January 1, 2004) into the New Mexico Unit 
Fund to be made in ten equal annual payments beginning in 2012; 
a minimum of $34 million and a maximum of $62 million (indexed 
from January 1, 2004) as provided in section 212, for payment 
of costs associated with construction of the New Mexico Unit 
upon satisfaction of the conditions set forth in subsections 
(j) and (k) of section 212; costs of constructing water 
distribution systems for the Gila River Indian Community, the 
San Carlos Apache Tribe and the Tohono O'odham Nation; 
$52,396,000 (indexed from January 1, 2000) for rehabilitation 
of the San Carlos Irrigation Project as provided in section 
203(d)(4); other costs specifically identified under sections 
213 and 214 or Title III; up to $250 million to the Future 
Indian Water Settlement Subaccount within the Development Fund 
to pay the costs of Indian water rights settlements in Arizona 
approved by the Congress; up to $500,000 for installation of 
gauges on the Gila River and its tributaries to measure water 
levels for purposes of the New Mexico Consumptive Use and 
Forbearance Agreement; and payment of the costs of constructing 
on-reservation CAP distribution systems for the Yavapai Apache 
(Camp Verde), Pasqua Yaqui and Tonto Apache tribes and the Sif 
Oidak District of the Tohono O'odham Nation. Any funds not used 
in the year they become available are carried over to the 
following fiscal year and are again available for the purposes 
outlined above.
    Subsection 403(f)(3) deals with revenues to the Development 
Fund that are in excess of the amount required to make CAWCD's 
annual payment for the CAP. Development Fund revenues that fall 
under new subsection 403(f)(3) may be used by the Bureau of 
Reclamation for the following, in order of priority: payment of 
fixed OM&R charges associated with the delivery of CAP water to 
Indian tribes; payment of the final outstanding annual payment 
due from CAWCD under its CAP repayment contract with the United 
States; payment to the general fundof the Treasury in 
reimbursement of Indian fixed OM&R charges previously paid from the 
Development Fund under 403(f)(2)(A); payment to the general fund of the 
Treasury in reimbursement of Indian water rights settlement costs 
previously paid from the Development Fund under 403(f)(2)(B) through 
(E); payment to the general fund of the Treasury in reimbursement of 
any federal 9(d) debt made non-reimbursable under section 106(b); and 
payment to the general fund of the Treasury to return CAP construction 
costs, if any, deemed by the Bureau of Reclamation to be reimbursable 
but not covered under the CAP repayment contract between CAWCD and the 
United States. Any funds left over under subsection 403(f)(3) will be 
deposited in the general fund of the Treasury. Subsection 403(f)(4) 
provides for the investment of Development Fund revenues not needed to 
meet current requirements, which will generate additional interest 
income that may be used for the purposes described in 403(f)(2) and 
(3). Subsection 403(f)(5) provides that Development Fund revenues may 
not be used to fulfill any federal obligation to pay OM&R charges 
pursuant to P.L. 95-328, P.L. 98-530, or any settlement agreement or 
amendment approved by or pursuant to either of those acts.
    The Committee recognizes that numerous parties have 
benefits that are to be funded through the Fund. Section 107(a) 
as amended by the Committee substitute, amends section 
403(f)(2)(D) of the 1968 Act to provide that the Secretary will 
reasonably allocate funds among this defined group of projects 
and beneficiaries. The allocation process could create a 
competition of interests for the Secretary to consider when 
allocating available funds among this defined group. To address 
this issues, the Committee recognizes that the Gila Settlement 
Agreement Parties intend to limit their requests for Fund 
moneys in a manner that would not require the Secretary to 
divide available Fund moneys among the Gila Settlement 
Agreement Parties. The Committee expects that the Secretary 
will accept the agreement among the Gila Settlement Parties to 
limit their requests for funding, will fully fund those limited 
requests and will adequately fund all of the projects and 
beneficiaries in a time-frame that meets the expectations of 
such projects and beneficiaries.
    To guide the Secretary, the Committee has included in this 
report a schedule of payments that reasonably and fairly 
accommodates the expectations of all parties as to the timing 
of benefits to be funded under the bill. To the extent funds 
are available in the Fund, the Secretary should make every 
effort to allocate these funds in accordance with this 
schedule.
    Of special note, section 403(f)(2)(D)(vi) provides that the 
Secretary will allocate up to $250 million from the Fund to a 
special subaccount that will accrue for future congressionally 
approved Arizona Indian water rights settlements. The Committee 
recognizes that the Secretary's timely allocation of these 
revenues, together with the accrual of interest thereon, is of 
critical importance to Arizona Tribes with unsettled water 
rights claims to the Gila, the Little Colorado, and the 
Colorado river systems. The Tribes' interest is shared by the 
State and the litigants opposing these tribal claims since the 
intent of section 403(f)(2)(D)(iv) is to aid in reaching 
appropriate settlements of such claims.
    Finally, the Committee expects that the Secretary will 
provide to all beneficiaries under 403(f)(2) of the 1968 Act, 
as amended, an annual report of the funds allocated pursuant to 
that section. Such report shall include, among other things, 
the basis for the allocations made in that year.
    Subsection 107(b) provides that no monies will be expended 
or withdrawn from the Development Fund pursuant to the amended 
section 403(f) until the date on which the Secretary publishes 
the findings necessary to complete the Gila River Indian 
Community water rights settlement or January 1, 2010, whichever 
is later. The required findings are set forth in section 207(c) 
of Title 2. Until then, funds will be identified for the 
purposes described in amended section 403(f), but retained in 
the Development Fund.
    Section 107(c) makes certain technical amendments to the 
Basin Project Act.
    Section 108 makes clear that Title 1 is not intended to 
alter the Law of the Colorado River or affect any existing 
rights to use Colorado River water except insofar as section 
104 directs a reallocation of CAP water and section 106(c) 
amends the Reclamation Reform Act.
    Section 109 repeals section 11(h) of the Salt River Pima-
Maricopa Indian Community Water Rights Settlement Act of 1988. 
The repealed section required the Secretary of the Interior to 
reallocate certain CAP non-Indian agricultural water to non-
Indian agricultural water users. That requirement is 
inconsistent with the Master Agreement and the reallocation 
prescribed in section 104.
    Subection 110(a) authorizes appropriations needed to comply 
with various biological opinions issued by the U.S. Fish and 
Wildlife Service in connection with CAP features and 
operations. Adherence to these biological opinions is required 
for the Project to remain in compliance with the Endangered 
Species Act.
    Subsection 110(b) provides that the amounts made available 
under section 110(a) will be treated as CAP construction costs.
    Subsection 110(c) provides that reasonable and prudent 
alternatives in the biological opinions identified in section 
110(a) may be permanently funded through agreements that 
require the contractor to manage funds through interest-bearing 
investments.
    Section 111(a) repeals Title 1 effective January 1, 2008, 
if the Gila River Indian Community water rights settlement in 
Title 2 is not fully enforceable by that date. Upon repeal, any 
actions taken by the Secretary under Title 1--for example, the 
reallocation of CAP water--shall be voided and any amounts 
appropriated under section 110 that remain unexpended shall be 
returned to the general fund of the Treasury.
    Section 111(b) provides that certain CAP subcontract 
amendments entered into pursuant to a June 18, 2003 Federal 
Register notice (67 Fed. Reg. 36578) are not voided by a repeal 
of Title I.

Title II--Gila River Indian Community Water Rights Settlement

    Section 201 contains the short title.
    Section 202 contains purposes for the Act.
    Section 203(a) authorizes, ratifies, and confirms the Gila 
River Agreement, except to the extent the Agreement conflicts 
with Title II. Any amendments executed to make the Agreement 
consistent with this title are also ratified.
    Section 203(b) directs the Secretary to execute the Gila 
River Agreement to the extent it does not conflict with Title 
II, including all exhibits thereto and any amendments that may 
be necessary to make the Agreement consistent with Title II.
    Section 203(c) provides the execution of the Agreement is 
not a major federal action under the National Environmental 
Policy Act (NEPA). The Bureau of Reclamation is designated the 
lead agency with respect to the environmental compliance 
activity that is to be carried out in implementing all aspects 
of the Gila River Agreement.
    Subsection 203(d) specifies certain actions required by the 
Secretary related to the San Carlos Irrigation Project. The 
Secretary is authorized to execute a joint control board 
agreement to the extent such agreement is consistent with this 
Act. The subsection also directs the use of certain resources 
from the Fund for Project rehabilitation costs that are both 
allocable and not allocable to the Community. In addition, the 
Secretary is to execute a supplemental repayment contract with 
the San Carlos Irrigation and Drainage District that addresses 
labor and contracting opportunities; the allocation of 
conserved water to the United States; and the portion of the 
District's share of rehabilitation costs that are 
nonreimbursable. With respect to the construction and 
rehabilitation responsibilities authorized by section 203, the 
Bureau of Reclamation (BoR) is to be designated as the lead 
agency.
    Section 204(a) provides that through the Settlement 
Agreement, Congress intends to provide allottees with benefits 
that equal or exceed the benefits presently available to them, 
taking several specified factors into consideration. The water 
rights described in the Agreement are held in trust for the 
Community and for allottees as provided for in section 204 of 
the Act. The protection afforded to allottees under this 
section includes a recognition that allotted lands with rights 
under the Globe Equity Decree are entitled to receive a similar 
quantity of water to the amount historically delivered and the 
benefit of the rehabilitation of the SCIP facilities. Allottees 
with land that have no rights under the Globe Equity Decree are 
entitled to a just and equitable allocation of water from the 
Community for irrigation purposes. These claims and any 
entitlements are to be satisfied from the water resources 
described in the Settlement Agreement. Before asserting certain 
claims against the United States, an allottee must exhaust 
remedies under Community law, including the Community's water 
code. Nothing in the Act authorizes a claim against any person, 
entity, corporation, or municipal corporation, nor against the 
Community or the United States except as are specified in 
subparagraphs (E) and (F) of paragraph (3) and (e)(2)(C).
    Subsection 204(b) directs the Secretary to reallocate 
certain CAP water previously acquired by the Secretary or 
acquired pursuant to S. 437. The Community's authority to 
lease, distribute, or exchange CAP water is set forth in the 
subsection.
    Subsection 204(c) provides that the Community shall not be 
responsible for water service capital charges for CAP water.
    Subsection 204(d) specifies that any new construction costs 
associated with delivery of the CAP water described in 
subsection 204(b) shall be nonreimbursable and excluded from 
CAWCD's repayment obligation.
    Subsection 204(e) provides that the water rights recognized 
and confirmed to the Community and allottees are subject to 25 
U.S.C. 381. The creation of a Community Water Code is also 
required within 18 months from the enactment of S. 437. The 
Water Code requirements are set forth in the subsection. The 
Water Code and any amendments affecting the rights of allottees 
is to be approved by the Secretary. The Secretary retains the 
responsibility for administering all Community water rights 
until the water code is approved.
    Subsection 205(a) directs the Secretary to amend the 
Community CAP water delivery contract to provide that the 
contract is for permanent service under 43 U.S.C. Sec. 617d of 
the Boulder Canyon Project Act and not limited as to its term. 
In addition, the Community CAP contract shall authorize the 
Community, with approval by the Secretary, to enter into lease 
or exchange its CAP water for terms not exceeding 100 years 
within specified Arizona counties. Such leases may include 
provisions for renegotiation, as long as the remaining term of 
such modified leases do not exceed 100 years. The United States 
will have no claim on the consideration due to the Community 
pursuant to such leases, nor shall the United States have a 
trust obligation related to such revenue. Community CAP water 
is to be delivered through the CAP system, except in specified 
circumstances, and the Community is authorized to use its CAP 
water on or off of the Reservation for Community purposes 
consistent with other provisions in the Act. Except for CAP 
water leased by the Community, the OM&R charges for Community 
CAP water shall be paid from the Basin Development Fund 
consistent with this Act. Further, no water service capital 
charges are due or payable for Community CAP water.
    Subsection 205(b) authorizes, ratifies, and confirms the 
Amended and Restated Community CAP Water Delivery Contract to 
the extent it is not in conflict with the Act, and directs the 
Secretary to execute the Contract.
    Subsection 205(c) authorizes, ratifies, and confirms 
certain CAP water lease agreements between the cities and 
specified parties to the extent they are not in conflict with 
the Act, and directs the Secretary to execute the agreements.
    Subsection 205(d) authorizes, ratifies, and confirms the 
reclaimed water exchange agreements between the cities and 
specified parties to the extent they do not conflict with the 
Act, and directs the Secretary to execute the agreements.
    Subsection 205(e) reiterates that the Community or its 
lease and exchange partners are not obligated to pay water 
service capital charges or other charges for CAP water.
    Subsection 205(f) prohibits exchange, lease or other action 
that moves Community CAP water outside the State of Arizona 
with listed exceptions.
    Subsection 206(a) is self explanatory.
    Subsection 206(b) provides that Title II is not intended to 
recognize or establish any individual or allottee right to 
water, except as otherwise provided in 204.
    Subsection 207(a) authorizes the United States to execute 
certain waivers of claims in either its own right, its capacity 
as trustee for the Community and Community members, or its 
capacity as trustee for allottees. The Community is authorized 
to execute waivers in its own capacity and for its members, but 
not in their capacity as allottees. In addition, the United 
States and the Community waive any claims related to the 
negotiation or execution of the Settlement Agreement or the 
negotiation or execution of Title I or II.
    Subsection 207(b) establishes the conditions and timing 
under which the waivers are effective.
    Subsection 207(c) ties the enforceability date to a 
requirement that the Secretary publish a statement of findings 
in the Federal Register concerning a number of listed 
conditions.
    Subsection 207(d) provides a detailed definition of ``land 
within the exterior boundary of the Reservation'' and ``off-
Reservation''.
    Subsection 207(e) establishes the extent of the water 
rights available for use on land held in trust for the 
Community, Community members and allottees.
    Section 208(a) establishes the Gila River Indian Community 
OM&R Fund within the Lower Colorado River Basin Fund and 
provides for $53 million to be deposited for the purposes 
stated.
    Section 208(b) directs the Secretary to invest the fund 
consistent with the American Indian Trust Fund Management 
Reform Act of 1994.
    Subsection 208(c) provides further instructions on 
investment management conditions.
    Subsection 208(d) establishes the conditions for 
expenditure and withdrawals of all or part of the Water O&R 
Fund; enforcement of those conditions; limitation on the 
liability of federal officials; and the requirements for an 
expenditure plan by the Community.
    Subsection 208(e) specifies that the OM&R Trust Fund is not 
to be distributed on a per capita basis.
    Subsection 208(f) establishes that the OM&R Trust Fund is 
not to be made available until the enforceability date or 
January 1, 2010, whichever is later.
    Subsection 209(a) requires the Secretary to establish a 
Bureau of Reclamation program to repair and remediate 
subsidence damage that occurs after the enforceability date 
consistent with subsection 107(a).
    Subsection 209(b) specifies that under the program, the 
Community, a member of the Community, or an allottee are 
authorized to submit a request for the repair of subsidence 
damage or damage to personal property caused by settling that 
results from underground water pumping.
    Subsection 209(c) directs the Secretary to provide the 
repair or remediation, if the Secretary determines that the 
Community has not exceeded its right to withdraw underground 
water under the Agreement and the party requesting the repair 
or remediation provides a waiver and release. The waiver and 
release will only become effective upon satisfactory completion 
of the relevant repair.
    Subsection 209(d) requires the Secretary to repair, 
remediate, and rehabilitate the subsidence damage specified in 
exhibit 30.21 to the Settlement Agreement.
    Subsection 210(a) and (b) provide that the Community may 
only obtain additional lands taken into trust by the United 
States through an act of Congress. Such after-acquired trust 
lands will not include federal reserved water rights.
    Subsection 210(c) provides the sense of Congress concerning 
the water rights associated with future acts of Congress 
authorizing land to be taken into trust for the Community.
    Subsection 210(d) provides that the Secretary will 
immediately hold land in trust for the Community if the 
Community acquires fee land within the Reservation and provides 
the Secretary with specified environmental and title 
documentation.
    Subsection 211(a) provides for the reduction of irrigation 
water demand in the upper Gila River valley through the 
acquisition of decreed water rights and extinguishing or 
severing those rights to the Project for the benefit of the 
Community and the San Carlos Irrigation and Drainage District 
and through the use of fallowing agreements. This subsection 
describes certain alternative arrangements the Secretary may 
pursue to achieve these objectives and limits the transfer of 
the water rights associated with 900 acres to the San Carlos 
Irrigation Project. A mechanism is established to determine 
whether the payment proposed by the upper valley Districts for 
the acquisition authorized by this program is appropriate. With 
respect to the San Carlos Apache Tribe, this subsection also 
provides for the additional reduction of the water rights 
associated with at least another 500 acres and as much as 3,000 
more acres if the San Carlos Apache Tribe (SCAT) reaches a 
comprehensive settlement that is approved by Congress. With 
respect to the water rights associated with 300 acres of these 
acres, the Secretary is to extinguish these rights. With 
respect to 200 acres, the Secretary is to transfer the water 
associated with those acres to the San Carlos Irrigation 
Project. Any remaining balance is to be transferred to the San 
Carlos Apache Tribe.
    As part of the Settlement, persons in the upper Gila River 
valleys will extinguish 1000 acres of water rights without 
financial compensation. The acquisition and extinguishment or 
severance and transfer of additional water rights in the upper 
Gila River Valley will benefit the Gila River Indian Community 
and other interests of the United States. The Committee 
recognizes, however, that the Gila Valley Irrigation District 
and the Franklin Irrigation District and other persons in the 
upper Gila River valleys do not have the financial ability to 
acquire and extinguish additional rights. Consequently, section 
211 directs that the Secretary will provide the Irrigation 
Districts with the funding to acquire and extinguish or sever 
and transfer 2000 acres of water rights in the upper Gila River 
Valley. If the Secretary does not provide any funding for 
acquisition as provided by section 211, the Irrigation 
Districts will not be required to acquire and extinguish or 
sever and transfer those rights. If the Secretary partially 
funds the acquisition, as provided in the UVD agreement, the 
Irrigation Districts will acquire and extinguish or sever and 
transfer water rights in proportion to the amounts actually 
funded.
    Subsection 211(b) directs the Secretary and the UVD 
settling parties to establish a program to extinguish the water 
rights associated with decreed lands that have not been 
recently irrigated. This program is to be carried out at no 
cost to the UVD settling parties.
    Subsection 212(a) requires the Secretary to refrain from 
executing the Settlement Agreement until all of the relevant 
parties have executed the New Mexico Consumptive Use and 
Forbearance Agreement and it has been approved by the State of 
New Mexico.
    Subsection 212(b) authorizes, ratifies, and confirms the 
New Mexico Consumptive Use and Forbearance Agreement except to 
the extent it is inconsistent with Title II. The Secretary is 
also authorized to execute the New Mexico Consumptive Use and 
Forbearance Agreement and any amendments needed to make it 
consistent with this title.
    Subsection 212(c) describes the New Mexico Unit Agreement 
and the provisions it must include. The Secretary is authorized 
to execute the New Mexico Unit Agreement in a time certain.
    Subsection 212(d) amends the Colorado Basin Project Act of 
1968 as set forth in the subsection.
    Subsection 212(e) specifies the costs allocable to, or 
payable by, the New Mexico CAP entity.
    Subsection 212(f) excludes costs associated with the New 
Mexico Unit and water delivered under the New Mexico 
Consumptive Use and Forbearance Agreement from the repayment 
obligation of the Central Arizona Water Conservation District.
    Subsection 212(g) reiterates that the Secretary is 
authorized to design, build, or operate the New Mexico Unit of 
the CAP and that this authority and responsibility may be 
transferred as specified. This provision is not a new 
authorization. It is a follow-up to, and consistent with, the 
authorization of the New Mexico Unit of the CAP (``Hooker Dam 
or suitable alternative''), contained in section 301(a)(4) of 
the Colorado River Basin Project Act (43 U.S.C. 1521(a)(4)).
    Subsection 212(h) provides that the execution of the New 
Mexico Consumptive Use and Forbearance Agreement and the New 
Mexico Unit Agreement are not major federal actions under NEPA. 
The Secretary, however, shall promptly carry out the 
environmental reviews necessary to evaluate and implement those 
agreements. The Committee expects that any consideration of 
water use under Section 212 will be accompanied by the 
consideration of a full range of alternatives that apply to 
address water supply needs in southwest New Mexico. 
Furthermore, the Committee recognizes the unique and valuable 
ecology of the Gila Basin. Accordingly, in conducting the 
environmental reviews, the Committee expects that the best 
available science will be used to fully assess and develop 
mitigation for the ecological impacts on Southwest New Mexico, 
the Gila River, its tributaries and associated riparian 
corridors. There must also be consideration given to the 
historic uses of and future demands for water in the Basin and 
the traditions, cultures and customs affecting those uses. The 
Bureau of Reclamation is designated as the lead agency for such 
review. The committee urges that upon request of the State of 
New Mexico, that the State be allowed to serve as a joint lead 
agency.
    Subsection 212(i) establishes the New Mexico Unit Fund to 
be funded from the Lower Colorado Basin Development Fund, as 
modified by Title I of the Act. It also establishes the 
authorized uses of this fund which include development of a New 
Mexico Unit or other water utilization alternatives that 
address water demands in the Southwest Water Planning Region of 
New Mexico.
    Subsection 212(j) provides that additional funding may be 
available for the New Mexico Unit if the State of New Mexico 
provides notice of its intent to construct certain facilities 
by December 31, 2014 and the Secretary issues a Record of 
Decision based on a review of the project pursuant to 
applicable federal law.
    Subsection 212(k) provides that additional funding may also 
be made available for construction of the New Mexico Unit if 
the rate of return accruing to the Lower Colorado Basin Fund 
exceeds 4%.
    Subsection 212(l) provides a disclaimer with respect to the 
Decree in Arizona v. California, (376 U.S. 340).
    Subsection 212(m) provides a limitation on the approval of 
other Gila River exchanges by the Secretary that would amend, 
alter, or conflict with the exchange authorized by the Colorado 
River Basin Project Act (43 U.S.C. 1524(f)).
    Subsection 213(a) waives the sovereign immunity of the 
United States and the Community for certain specified claims 
under the Settlement Agreement or the New Mexico Consumptive 
Use and Forbearance Agreement.
    Subsection 213(b) provides that this title does not 
quantify or otherwise affect the water rights or claims of any 
other Indian tribe other than the Community. Those tribes 
include the Ak-Chin Indian Community, Cocopah Tribe, Colorado 
River Indian Tribes, Fort McDowell Yavapai Nation, Fort Mojave 
Indian Tribe, Fort Yuma-Quechan Tribe, Gila River Indian 
Community, Navajo Nation, Pascua Yaqui Tribe, Salt River Pima-
Maricopa Indian Community, San Carlos Apache Tribe, San Juan 
Southern Paiute, Tohono O'odham Nation, Tonto Apache Tribe, 
Havasupai Tribe, The Hopi Nation, Hualapai Tribe, Kaibab-Paiute 
Tribe, White Mountain Apache Tribe, Yavapai-Apache Nation, 
Yavapai-Prescott Indian Tribe, and the Zuni Tribe. It is also 
the Committee's intent that nothing in Title II affects the 
water rights or any other rights or authorities of the United 
States in its own capacity or on behalf of, or as trustee for, 
any Indian tribe or individual Indian other than the Community 
and its members except to the extent expressly provided in the 
Gila River agreement or this title.
    Subsection 213(c) precludes the United States from 
obtaining reimbursement for the costs of the Agreement through 
assessments of Indian owned land.
    Subsection 213(d) provides that the lease or exchange of 
Community CAP water shall not affect any future allocation or 
reallocation of CAP water by the Secretary.
    Subsection 213(e) directs the Secretary to execute 
amendment No. 1 to the Community CAP repayment contract to 
provide that costs incurred under that contract are non-
reimbursable.
    Subsection 213(f) authorizes, ratifies, and confirms the 
September 6, 1917 agreement between the United States and the 
Salt River Valley Water Users' Association and the rights of 
the Salt River Project to store and deliver water from the Salt 
and Verde Rivers as specified.
    Subsection 213(g) directs that $15 million in funding be 
provided to the UV irrigation districts to comply with the New 
Mexico Consumptive Use and Forbearance Agreement, such funding 
to be indexed according to the referenced standard.
    Congress recognizes that the $15,000,000 paid to the UV 
irrigation districts may be applied to remedies other than the 
pipeline referenced, but the cost indexing should be scaled by 
reference to the pipeline as described.
    Subsection 213(h) provides a limitation on liability of the 
United States and directs the Community to indemnify the United 
States for the purposes stated.
    Subsection 213(i) authorizes the United States to acquire 
Blue Ridge Dam without cost to the United States to make water 
available to the Salt River Federal Reclamation Project.
    Subsection 213(j) provides that nothing in this Act will 
alter federal pre-enforcement review of environmental actions 
or provides jurisdiction on state courts to review specified 
portions of section 207.
    Subsection 214(a) authorizes appropriations for a number of 
activities that are related to the Settlement and are self-
explanatory.
    Subsection 214(b) designates some costs as identified costs 
for purposes of the Colorado River Basin Project Act.
    Section 215 repeals Title II if the Secretary does not 
publish the statement of findings under section 207(d) by 
December 31, 2007 effective January 1, 2008 and amounts 
appropriated under paragraphs (1)-(5) of section 213(a) and 
section 213(b) are to be returned to the Treasury along with 
any interest. And any amounts paid by the Salt River Project 
are also to be returned.

Title III Southern Arizona Water Rights Settlement

    Section 301 directs that the Southern Arizona Water Rights 
Settlement Act of 1982 (96 Stat. 1274) is amended in its 
entirety by Title III. The new sections are described below.
    Section 301 contains the new short title for the 1982 Act.
    Section 302 establishes the purposes of the Act.
    Section 303 contains definitions for the Act.
    Subsection 304(a) specifies that the Secretary is obligated 
to deliver 37,800 acre-feet of water annually, 27,000 to the 
San Xavier Reservation and 10,800 to the eastern Schuk Toak 
District; or the water may be otherwise used in accordance with 
Subsection 309(a).
    Subsection 304(b) specifies that the Secretary is obligated 
to construct, maintain and replace the delivery and 
distribution system necessary to deliver the water in 
Subsection (a).
    Subsection 304(c) provides that the Secretary is obligated 
to complete an irrigation system for the cooperative farm, 
extend the irrigation system of the cooperative farm to serve a 
total of 2,300 net irrigable acres, construct the irrigation 
system for a new farm within the San Xavier Reservation or, at 
the District's election, pay $18,300,000 (as adjusted), and 
complete an irrigation system for the Schuk Toak farm.
    Subsection 304(d) allows the Secretary to extend the time 
deadlines provided in subsection (c) if compliance is 
impracticable and the Secretary provides public notice.
    Subsection 304(e) authorizes the Secretary to enter onto 
the Nation's Reservation in order to construct works on the 
Reservation.
    Subsection 304(f) provides the condition that if the San 
Xavier District elects to be paid the $18,300,000 as adjusted, 
the District shall deposit the funds into interest bearing 
deposits and securities, and expend the principal and interest 
in accordance with a budget approved by the District and the 
Nation. The funds may be spent for subjugation of the land, 
governmental services, allottee benefits, costs of the 
Allottees Association, and administrative costs of the Nation 
or the District, but not for per capita distributions.
    Subsection 305(a) requires the Secretary to deliver the 
37,800 acre-feet of water described in subsection 304(a) and 
the 28,200 acre-feet of water described in subsection 306(a) at 
various points within the CAP delivery system as ordered by the 
Nation. The declaration of a water shortage on the Colorado 
River or other identified causes, does not excuse the delivery 
of CAP water or an equivalent quantity of water to meet the 
delivery obligations of 66,000 acre-feet of water annually.
    Subsection 305(b) specifies that in the event that the 
Secretary cannot deliver CAP water, the Secretary may acquire 
water from other sources subject to described limitations, 
including a prohibition on causing depletion of groundwater at 
San Xavier or eastern Schuk Toak, compliance with state water 
law, prohibition on taking of private rights, compliance with 
transfers within the Tucson basin, and from effluent only with 
the Nation's consent.
    Subsection 305(c) allows the Secretary to contract with the 
State, an irrigation district or other entities for the 
exchange of water and the use of water delivery infrastructure 
to deliver the water obtained in lieu of CAP water.
    Subsection 305(d) provides that if the Secretary cannot 
deliver either CAP water or equivalent water, or if the 
Secretary does not complete the construction of the irrigation 
systems, the Secretary shall compensate for the value of the 
water ordered but not delivered. Compensation shall be paid to 
the San Xavier Cooperative Association or the Nation, as 
applicable.
    Subsection 305(e) establishes that in satisfying the 
obligations of the Secretary under this Section, the Secretary 
may not acquire or affect the water rights of other Indian 
tribes.
    Subsection 306(a) obligates the Secretary to deliver 28,200 
acre-feet of water, 23,000 to the San Xavier Reservation and 
5,200 acre-feet of water to the eastern Schuk Toak District; or 
otherwise used in accordance with Subsection 309(a).
    Subsection 306(b) specifies that the State will contribute 
$3,000,000 in cash or in-kind goods and services to assist the 
Secretary in firming water.
    Subsection 307(a) specifies that the Secretary is obligated 
to carry out Subsection 304(c), Subsections 305(a), (b) and 
(d), and Section 306 only if certain specified conditions are 
met.
    Subsection 307(b) specifies that neither the United States 
nor the Tohono O'odham Nation is responsible for the operation, 
maintenance or replacement of irrigation systems constructed 
pursuant to Title III on allotted land.
    Subsection 307(c) specifies that the Nation shall not be 
responsible for payment of CAP capital charges for water 
ordered for delivery under Title III.
    Subsection 308(a) specifies that a portion of the water 
rights described in Title III are subject to a first beneficial 
right of the allottees.
    Subsection 308(b) requires the Nation to prepare an interim 
allottee water rights code to be incorporated into a 
comprehensive water code. The water codes shall include 
acknowledgement of the water rights described in Title III, a 
process for the just and equitable distribution of water 
resources and compensation shall be provided to allottees, 
provisions for the protection of due process, and a process for 
the provision of water resources to fee owners of allotted 
land.
    Subsection 308(c) requires that the Secretary shall approve 
the water code or provide notification and explanation of the 
nonconforming provisions. Until such time as the Secretary 
approves the water code, the Secretary retains authority under 
25 U.S.C. Sec. 381.
    Subsection 308(d) requires the Secretary to develop water 
management plans, which plans shall meet specified minimum 
requirements and shall be developed in accordance with 638 
contracts at a cost of $891,200 for the San Xavier plan and 
$237,200 for the Schuk Toak plan.
    Subsection 308(e) allows the Nation to establish 
underground storage and recovery projects in accordance with 
the Tohono O'odham Settlement Agreement. The Secretary shall 
not have responsibility to fund or administer such projects.
    Subsection 308(f) allows pumping of up to 10,000 acre-feet 
of groundwater at San Xavier and 3,200 acre-feet at eastern 
Schuk Toak; and allows for deferred pumping up to a maximum of 
50,000 acre-feet in a 10 year period at San Xavier and 16,000 
acre-feet for a 10 year period at Schuk Toak. The section 
clarifies that authorization to pump groundwater does not 
warrant or guarantee that groundwater exists or is recoverable. 
Title III may not serve as the basis of a claim by either the 
United States or the Nation against a person or entity 
withdrawing groundwater from a common water supply and the 
United States and the Nation are barred from asserting a claim 
for reserved water rights with respect to groundwater.
    Subsection 308(g) allows pumping from an exempt well to be 
exempt from the pumping limitations of this Title.
    Subsection 308(h) allows the Nation to pump additional 
groundwater in accordance with the requirements of the Tohono 
O'odham Settlement Agreement if the Secretary is unable to 
deliver water as specified in subsections 304(a) or 306(a).
    Subsection 308(i) specifies that nothing in Section 308 
affects the obligation of the Secretary to pay compensation 
pursuant to Subsection 305(d).
    Subsection 309(a) allows the Nation to use water supplies 
granted or confirmed by this Title for any use subject to the 
provisions of Title III.
    Subsection 309(b) establishes the geographical use area of 
the waters rights granted or confirmed by Title III.
    Subsection 309(c) establishes the parameters for exchanges 
and leases of CAP water under Sections 304(a) and 306(a) and 
storage credits under Section 308(e) including a contract 
validly agreed to by the Nation and approved by the United 
States with a term not to exceed 100 years, a prohibition 
against permanent alienation, and water delivery within the CAP 
service area.
    Subsection 309(d) specifies that the rights of the Nation 
to transfer water are conditioned on the Nation's obligation to 
ensure, to the maximum extent practicable, the availability of 
water supplies to satisfy the first right of beneficial use 
under Section 307(a)(1)(G)(i) to the allottees.
    Subsection 309(e) establishes that the transferee or lessee 
of CAP water from the Nation is not obligated to pay to CAWCD 
any water service capital charge.
    Subsection 309(f) specifies that the Nation's use or lack 
of use of water granted or confirmed under this Title shall not 
diminish or impair such water rights.
    Subsection 309(g) provides that the agreement of December 
11, 1980 between the Nation and the Secretary shall be amended 
in accordance with the terms of Title III and the Tohono 
O'odham settlement agreement.
    Subsection 309(h) authorizes the Secretary to execute the 
Tohono O'odham Settlement Agreement, the Tucson agreement, the 
Asarco agreement, an existing water well Asarco lease and any 
new water well leases with Asarco, and the FICO agreement and 
to the extent these agreements are not in conflict with this 
Act, they are authorized, ratified and confirmed.
    Subsection 309(i) directs the Secretary to disburse to the 
Nation all proceeds from the Tucson interim water lease.
    Subsection 309(j) entitles the Nation to all gross proceeds 
which are defined as the proceeds from the Tucson interim water 
lease, the Asarco agreement, and any agreement similar to the 
Asarco agreement limited by the proceeds from 20,000 acre-feet 
per year.
    Subsection 309(k) specifies that Title III does not 
establish the rights attached to reserved water rights.
    Subsection 310(a) reauthorizes the cooperative fund 
established by the 1982 Act, restates the funds previously 
contributed by the State parties, identifies interest accrued 
on all amounts in the cooperative fund since its inception on 
October 12, 1982 and revenues received from the sale or lease 
of effluent and storage credits from the storage of that 
effluent.
    Subsection 310(b) allows the Secretary to use the 
cooperative fund to pay variable costs for the delivery of 
water under section 304 and section 306; fixed OM&R costs for 
the delivery of the 37,800 acre-feet per year and the 28,200 
acre-feet per year to the extent funds are not available from 
the Lower Colorado River Basin Development Fund; costs of 
acquiring alternative water supplies; and any compensation 
provided in section 305(d). The Secretary may only expend 
interest income accruing to the cooperative fund and may expend 
such funds without further appropriation.
    Subsection 310(c) directs the Secretary of the Treasury to 
invest monies in the cooperative fund and the interest shall 
become a part of the cooperative fund.
    Subsection 310(d) requires funds to be transferred from the 
general fund of the Treasury to the cooperative fund as 
required.
    Subsection 310(e) limits the damages arising under Title 
III or any contract for the delivery of water recognized by 
Title III to the amounts available for expenditure in that year 
from the cooperative fund.
    Subsection 311(a) specifies that the Secretary's 
obligations are subject to the Indian Self-Determination and 
Education Assistance Act with certain exceptions.
    Subsection 311(b) defines the San Xavier District as an 
eligible contractor under the Indian Self-Determination and 
Education Assistance Act.
    Subsection 311(c) restates the Secretary's obligation to 
design and carry out a groundwater monitoring program for the 
San Xavier Reservation and the eastern Schuk Toak District not 
to exceed sums of $215,000 for San Xavier and $175,000 for 
Schuk Toak. The Secretary is obligated to consult with the 
Nation, the San Xavier and Schuk Toak Districts and State and 
local entities and shall have no continuing obligations beyond 
those specified in this subsection.
    Subsection 311(d) restates the Secretary's obligation to 
conduct a water resources study within the Nation's Reservation 
but outside the Tucson management area. Subsection 317(a) 
limits the amount of the Water Resources Study to $4,000,000.
    Subsection 311(e) restates the right of the Nation to 
benefit from funding and other assistance if a federal entity 
is established for arid land resources research.
    Subsection 311(f) establishes a new study by the Secretary 
at a sum not to exceed $250,000, on the feasibility of a land 
exchange between Asarco and the Nation.
    Subsection 312(a) specifies that the Nation shall waive 
certain claims for injuries to water rights; failure to 
protect, acquire and develop water rights; claims resulting 
from off-Reservation diversion; and claims related to 
negotiation or execution of the Tohono O'odham settlement.
    Subsection 312(b) specifies that the allottee classes shall 
waive certain claims for injuries to water rights, failure to 
protect, acquire and develop water rights; claims resulting 
from off-Reservation diversion; and claims related to 
negotiation or execution of the Tohono O'odham settlement.
    Subsection 312(c) specifies that the United States shall 
waive certain claims for water rights; claims for injuries to 
water rights; claims related to off-Reservation diversion; 
claims on behalf of the allottees for injuries to water rights 
against the Nation; and claims against Asarco on behalf of the 
allottee class for the fourth cause of action in the pending 
federal Alvarez litigation.
    Subsection 312(d) provides the Nation and the United States 
as Trustee the right to assert certain claims related to 
groundwater protection under State law.
    Subsection 312(e) provides that any party to the Tohono 
O'odham settlement agreement may waive and release additional 
claims on terms and conditions agreed to by the parties.
    Subsection 312(f) establishes the rights of and prohibits 
claims by allottees including the benefits granted to the 
allottees, entitlements to water, rights and limits to water 
rights and prohibitions.
    Subsection 312(g) authorizes the Nation and the San Xavier 
Cooperative Association to maintain a civil action against the 
United States to recover monetary damages for the breach of the 
Secretary's obligations. An award of damages shall be offset by 
funds made available by Congress or paid by the Secretary.
    Subsection 312(h) acknowledges and establishes that the 
State Gila River adjudication court has jurisdiction to enforce 
Title III, the Tohono O'odham settlement agreement, other 
agreements referred to in the settlement agreement, and claims 
by allottees and fee owners of allotted land not barred, waived 
and released by Title III and the settlement agreement. The 
sovereign immunity of the Nation and the United States are 
waived for declaratory judgment and injunctive relief, but not 
for monetary relief, and for claims and remedies prescribed in 
agreements authorized by Title III; but as to other parties 
with immunity to suit, only to the extent that such other party 
waives its immunity. The Nation shall be provided notice by an 
allottee of an intent to file litigation, accompanied by a 
request for consultation. The Nation shall be joined in such 
litigation.
    Subsection 312(i) clarifies that the Nation shall have 
regulatory jurisdiction to manage, control and administer the 
water resources of the Nation, its members, districts and 
allottees. Disputes regarding regulatory jurisdiction are 
vested in the Courts of the Nation.
    Subsection 312(j) establishes the concurrent jurisdiction 
of the federal court in claims brought under subsection (h).
    Subsection 313(a) allows the Nation to obtain additional 
lands taken into trust by the United States but only through an 
Act of Congress. Such after-acquired trust lands shall not 
include federal reserved water rights, nor is it the intent of 
Congress that any after-acquired lands include federal reserved 
water rights. After-acquired lands shall only include water 
rights consistent with state water law.
    Subsection 313(b) exempts land acquired pursuant to the 
Gila Bend Indian Reservation Lands Replacement Act (100 Stat. 
1798) from subsection (a).
    Subsection 314(a) makes costs associated with the delivery 
of the 37,800 acre-feet per year or the 28,200 acre-feet per 
year nonreimbursable and excluded from the repayment obligation 
of CAWCD.
    Subsection 314(b) specifies that the United States may make 
no claim for the Nation or allottees for reimbursement of the 
costs associated with the construction of facilities, the 
delivery of CAP water or the implementation of this Title and 
against the Nation for reimbursement of costs associated with 
the construction of facilities at the San Lucy Farm and at such 
other lands acquired pursuant to the Gila Bend Indian 
Reservation Lands Replacement Act or other trust or allotted 
land.
    Subsection 315(a) reauthorizes the $15,000,000 trust fund 
for use in carrying out this Title.
    Subsection 315(b) specifies that the Nation may use both 
principal and interest from the trust fund for any governmental 
purpose and may be invested by the Nation in accordance with 
policies the Nation may adopt.
    Subsection 315(c) establishes that the Secretary shall not 
be responsible for the review, approval or audit of the use and 
expenditure of the trust funds and shall not be liable for 
claims brought for use or expenditure related to this trust 
fund.
    Subsection 315(d) specifies that the Nation shall reserve 
from the trust fund the principal sum of $3,000,000 for the 
cost of land subjugation, plus interest on that amount for a 
period of 10 years from the enforceability date after which the 
restrictions on the fund terminate and the remaining funds may 
be used by the Nation under subsection (b)(1).
    Subsection 316(a) specifies that nothing in Title III 
supports or invalidates the doctrine of federal reserved water 
rights as applied to groundwater; limits the ability of the 
Nation to contract with the Arizona Water Banking Authority; 
prohibits the Nation, an allottee, or a fee owner of allotted 
land from acquiring water rights in addition to those granted 
in this Title III; abrogates rights or remedies under 28 U.S.C. 
Sec. 1346 or Sec. 1491; affects the rights of the United States 
and the Nation regarding the 8,000 af/annum of CAP water for 
Sif Oidak District; applies to exempt wells; or diminishes the 
right to use water under contracts in existence prior to the 
enforceability date, or the Asarco Agreement.
    Subsection 316(b) specifies that the receipt of an exchange 
of water or a lease pursuant to Title III does not affect a 
future allocation of CAP water by the Secretary.
    Subsection 316(c) requires that the United States shall not 
have any trust or other obligation regarding any funds 
monitored, funded or administered by Title III and the Nation 
agrees to indemnify the United States for claims arising out of 
receipts or expenditure of funds described in this subsection.
    Subsection 317(a) authorizes appropriations of $3,500,000 
plus adjustments for construction of the irrigation systems, 
$18,300,000 plus an adjustment from January 1, 2008 through the 
date on which the cash is paid to the San Xavier District, 
$891,200 for water management planning for San Xavier and 
$237,200 for water management planning for Schuk Toak, 
$4,000,000 for water resources study, $215,000 for groundwater 
monitoring for San Xavier and $175,000 for eastern Schuk Toak, 
and $250,000 for an Asarco land exchange study.
    Subsection 317(b) specifies that amounts made available 
under Subsection 317(a) shall be authorized costs for 
expenditure from the Lower Colorado River Basin Fund as 
provided in Subsection 107(a) of this Act.

Title IV--San Carlos Apache Tribe Settlement

    Section 401 expressly provides that none of the provisions 
of Titles I, II, or III limit the authority of the United 
States or the San Carlos Apache Tribe (SCAT or Tribe), or the 
United States in its capacity as trustee for the Tribe or its 
members or allottees to assert claims on their behalf, 
including any claim for water rights, injury to water rights, 
or injury to water quality.
    While this section confirms the Federal Government's and 
the Tribe's ability to pursue any and all legal remedies and 
claims available to them without any effect from this Act, it 
is the Committee's expectation, given the testimony and 
communications before it, that the Tribe and the parties to the 
settlements included in S. 437 are committed to negotiating a 
settlement of the Tribe's remaining water rights claims in the 
Gila River basin. The Committee encourages and supports this 
approach. Accordingly, S. 437 includes provisions intended to 
assist in facilitating a settlement. For example, much of the 
controversy associated with water use on the Gila River centers 
around the interpretation and enforcement of the Globe Equity 
Decree. While preserving the Tribe's claims, S. 437 establishes 
a program for the reduction of irrigated acreage within the 
upper valley irrigation districts which should reduce water use 
requirements in the upper Gila River. Under section 
211(a)(2)(C), the acreage reduction program will be expanded if 
the Tribe enters into a comprehensive water rights settlement. 
S. 437 also includes a provision that conserved water from the 
San Carlos Irrigation Project will be made available to 
maintain a permanent pool of water for fish and wildlife 
purposes in San Carlos Reservoir. Notwithstanding these 
provisions, the Committee recognizes that the Tribe itself will 
determine the range of benefits it needs to settle its 
remaining water rights claims.
    Section 402 directs the Secretary to provide up to three 
annual reports on the progress in reaching a settlement 
agreement covering the Tribe's claims to the Gila River.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 437. The bill is not a regulatory measure in 
the sense of imposing government-established standards or 
significant responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy. Little, if any, additional paperwork would result from 
the enactment of S. 437.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the Subcommittee hearing follows:

Statement of Bennett W. Raley, Assistant Secretary, Water and Science, 
                       Department of the Interior

    Good morning, Mr. Chairman and members of the Committee. I 
am Bennett W. Raley, Assistant Secretary for Water and Science 
at the Department of the Interior. I am accompanied by Aurene 
Martin, Acting Assistant Secretary for Indian Affairs. I 
appreciate the opportunity to appear before this Committee to 
discuss S. 437, a bill to authorize the Arizona Water Rights 
Settlement Act of 2003.
    S. 437 is the single most far-reaching piece of federal 
legislation regarding water use within Arizona since Congress 
authorized the Central Arizona Project thirty-five years ago. 
S. 437 is an impressive and complex bill, designed to provide a 
comprehensive resolution of critical water use issues facing 
the State of Arizona, and Arizona Indian tribes today. This 
legislation provides certainty regarding the use of water in 
Arizona in a number of ways: it provides water to settle 
outstanding water rights claims of certain Arizona tribes; 
provides financing of infrastructure so that all tribes can put 
CAP water to use; and it provides water for future water rights 
settlements. It also provides water necessary to accommodate 
the explosive population growth in the cities of central 
Arizona; it provides certainty for farmers who currently 
utilize imported water supplies from the Colorado River; and it 
also provides a mechanism to secure water to protect against 
future droughts. These arrangements, necessary to all users of 
Colorado River water in Arizona are accomplished utilizing 
local tax revenues to accomplish the financing of all 
undertakings under the global settlement embodied in the 
legislation.
    The Administration supports the core concepts of the 
settlements that are achieved through S. 437 and the 
overarching goal of resolving many important water challenges 
facing the State of Arizona, with the caveats discussed below. 
We believe that the comprehensive approach that is embodied in 
S. 437 is the right way to resolve these longstanding disputes 
regarding the use of the CAP and this portion of Arizona's 
allocation of the Colorado River.
    Before providing detailed comments on particular provisions 
of the bill, some of which will require addressing outstanding 
concerns, it is necessary to review the overall structure and 
goals of S. 437. As we move forward, this Administration 
remains committed to working with the Committee, Senator Kyl, 
and the settlement parties to reach mutually agreeable 
solutions to all remaining issues. The resolution of these 
outstanding issues is an extremely high priority for the 
Department of the Interior.


                               background


    Even in the days before statehood, Arizona's leaders saw 
the need to bring Colorado River water to the interior portions 
of the State. During the 1940's and 50's California developed 
facilities allowing the utilization of more than its 
apportionment from the Colorado River and quickly began full 
use of its share of the river, and more. During that same time, 
Arizona began developing its own plans for utilization of its 
2.8 maf apportionment. However, California effectively 
prevented Arizona from implementing its plan, arguing that 
development and use of water from Colorado River tributaries 
within Arizona counted against its apportionment and limited 
significant additional development and diversion from the 
mainstream by Arizona.
    Unable to reach resolution on this issue, in 1952 Arizona 
brought an original action in the U.S. Supreme Court, asking 
the Court to clarify and support Arizona's apportionment from 
the Colorado. After 12 years of fact finding by a Special 
Master and arguments by the two states, the Supreme Court 
issued a decision in 1963 affirming Arizona's 2.8 maf 
apportionment.
    Despite Arizona's victory in the Supreme Court, California 
was still able to extract a final concession from Arizona. In 
exchange for California's support of Congressional 
authorization in 1968 for the Central Arizona Project (CAP), 
Arizona was forced to allow its CAP water to have a subservient 
priority to California water use during times of shortage on 
the Colorado River system. This was a significant concession 
since CAP water use represents more than half of Arizona's 
Lower Basin apportionment--approximately 1.5 maf of its 2.8 
maf. The CAP brings this critical supply from the Colorado 
River through Phoenix, to Tucson, Arizona via a primary canal 
of more than 330 miles.
    After decades of fighting to get the CAP authorized and 
constructed, in the early 1990s, Arizona faced financial and 
water supply disputes over how the Project--and the State's 
allocation from the Colorado River--would be utilized.
    For most of the 1990s uncertainty existed for Arizona: 
uncertainty over who would receive water from the CAP, and 
uncertainty over the costs of the project and who would repay 
those costs. Perhaps most importantly to the State, uncertainty 
existed over the ability of the State to store water and 
protect against the eventual shortages on the Colorado--which 
have a unique impact on Arizona water users due to the junior 
status imposed by Congress in 1968.
    The uncertainty also involved complex and contentious 
litigation filed in 1995 between the Federal Government and the 
Central Arizona Water Conservation District, the political 
entity which operates the CAP and repays the local costs of the 
project. After years of litigation over the CAP, extensive 
negotiations were conducted to resolve the complicated CAP 
issues so that the needs of all project beneficiaries would be 
adequately addressed.
    During these discussions it became clear that financial 
repayment and other operational issues could not be resolved 
until there was a firm agreement on the amount of CAP water 
that would be allocated to Federal uses, i.e., allocations to 
Indian tribes in Arizona. When these discussions were 
initiated, 32 percent of the CAP water was allocated for 
Federal uses, 56 percent for non-Federal uses and 12 percent 
was un-contracted.
    Both the United States and the State of Arizona were 
interested in dedicating uncontracted water to allow settlement 
of outstanding Indian water rights claims and to meet emerging 
needs for municipal purposes. The amount of water needed for 
future Indian water rights settlements within Arizona turned in 
large part on consideration of the large pending claim of the 
Gila River Indian Community (Community) in the on-going general 
stream adjudication of the Gila River system. The Gila River 
Indian Reservation encompasses approximately 372,000 acres 
south of, and adjacent to, Phoenix, Arizona.
    The claim filed by the United States on behalf of the 
Community in the Gila River adjudication was for 1.5 million 
AFA. This represents the largest single Indian claim in 
Arizona--and one of the largest Indian claims in the West. If 
this claim were successful, the amount of water available to 
central Arizona cities, towns, utilities, industrial and 
commercial users, and major agricultural interests would be 
greatly reduced.
    Consequently, on-going negotiations of that claim were put 
on a parallel track with the CAP litigation negotiations, with 
the understanding that tandem resolution of the issues would be 
necessary. The underlying premise of the settlement that 
emerged--including the framework of this legislation--is to 
achieve a comprehensive resolution of all outstanding CAP 
issues. This, in turn, will allow sustainable operation of the 
CAP in a manner that provides benefits and equitable treatment 
to all intended project beneficiaries. The alternative, 
piecemeal and sequential resolution of all of the outstanding 
disputes on the CAP, would be doomed to fail.
    The linkage embodied in this legislation integrates U.S. 
obligations under Federal statutes and the trust relationship 
with Indian tribes. As with the initial authorization of the 
CAP in 1968, we are presented with a unique opportunity to 
provide a final settlement of many of the complex Federal, 
State, Local, Tribal and private water issues in the State.
    In May of 2000, the Department and CAWCD reached agreement 
on a stipulated settlement of the CAP litigation. This 
stipulation serves as a blueprint for a comprehensive 
resolution of the suite of CAP issues I have identified above. 
The stipulation requires that a number of conditions must occur 
before it is effective or final. Under the stipulation, these 
conditions must occur before December 2012 or the stipulation 
will terminate.
    The CAWCD v. U.S. settlement stipulation is contingent on 
Congressional enactment of a Gila River Indian Community 
Settlement; Amendment of the Southern Arizona Indian Water 
Rights Settlement (SAWRSA); and the identification of a firm 
funding mechanism for the CAP, GRIC and SAWRSA settlements.
Settlement Stipulation & S. 437: The Arizona Water Rights Settlement 
        Act of 2003
    S. 437 approves three separate and significant settlements: 
the settlement stipulation reached in the CAWCD v. U.S. 
litigation (addressing CAP operational and repayment issues), 
the Gila River settlement (addressing water rights claims of 
the Gila River Indian Community), and the SAWRSA settlement 
(addressing water rights claims of the Tohono O'Odham Nation).
    The basic structure of the stipulation developed in 2000 is 
preserved in S. 437, subject to certain conditions. The main 
components of the settlement contained in S. 437 are to 
provide: (1) additional water to resolve tribal claims; (2) 
certainty regarding allocation of available water supply; (3) 
additional water supplies for Arizona's growing cities; (4) 
financial and operational certainty for CAWCD (operator and 
repayment entity of CAP); (5) affordable water for non-Indian 
agriculture; (6) appropriate repayment of CAP costs; (7) 
structures and programs to bank water for Arizona's future; (8) 
and a firm funding mechanism to provide affordable water to 
tribes, while developing the infrastructure necessary to allow 
all of Arizona's tribes to fully utilize their CAP supplies.
    The structure of S. 437 represents Arizona's extensive 
efforts to resolve these contentious issues. The bill is 
strongly supported by the relevant Arizona State Agencies, 
Members of Congress with Arizona constituencies, the Gila River 
Community, the Tohono O'odham tribe, and a wide array of 
Arizona interests. In light of the diverse parties, competing 
interests and longstanding controversies involved, S. 437, if 
amended to address certain issues, represents the best prospect 
to restructure the CAP in a context that reconciles the Public, 
Tribal and Private interests--including statutory obligations 
of the United States.
    I will summarize each of the three titles contained in S. 
437 and comment on some of the provisions of each that are of 
concern to the Administration.
Title I--Central Arizona Project Settlement
    The critical components of the CAP stipulated settlement 
are set forth in Title I of S. 437. They include: (1) a final 
allocation of CAP water supplies so that 47% of Project water 
is dedicated to Arizona Indian tribes and 53% is dedicated to 
Arizona cities, industrial users and agriculture; (2) setting 
aside a final additional allocation pool of 197,500 acre-feet 
for use in facilitating the GRIC settlement and future Arizona 
Indian water rights settlements; (3) a final allocation of 
65,647 AFA of remaining high priority (M&I) water to Arizona 
cities and towns; (4) relief from debt incurred under section 
9(d) of the 1939 Reclamation Projects Act by agricultural water 
uses, which allows these users to relinquish their long term 
CAP water contracts so that the water can be used for the 
Indian water rights settlements and future municipal use; and 
(5) allowing the Colorado River Lower Basin Development Fund 
(LBDF), the Treasury fund where CAP repayment funds are 
deposited, to be used for the costs of Indian water rights 
settlements, completing tribal water delivery systems and 
reducing the cost of CAP water for tribes to affordable levels.
    S. 437's utilization of the Colorado River Lower 
Development Fund is intended to meet the terms of the 
stipulation by providing for, among other things, subsidizing 
fixed OM&R costs for Indian tribes, including OM&R costs for 
the Gila River Indian Community, rehabilitation of the San 
Carlos Irrigation Project (SCIP), construction of Indian 
Distribution Systems, and funds for future Indian water 
settlements.
    The financing mechanism assumed in S. 437 is complex, and 
operates outside of the normal appropriations process. Given 
this, the Administration is currently reviewing the funding 
provision to determine whether it is an appropriate way to 
satisfy the contingencies of the settlement. There may be other 
funding mechanisms that meet the firm funding requirement of 
the settlement. We look forward to working with the Committee 
on this issue.
Title II--Gila River Indian Community Water Rights Settlement
    Title II of S. 437 is the Gila River Indian Community 
Settlement. This settlement would resolve all of the 
Community's water rights claims in the general stream 
adjudication of the Gila River system, litigation that covers 
much of the water supply of central Arizona. This litigation 
has been the subject of negotiation and settlement talks for 
more than 13 years.
    The major components of the settlement are: (1) 
confirmation of existing, and dedication of additional, water 
supplies for the Community in satisfaction of its water rights 
claims; (2) use of existing facilities to deliver the 
additional water supplies; (3) funding for on-Reservation 
agricultural development; and (4) protection of the Reservation 
groundwater supplies.
    While the United States supports a settlement of the Gila 
River Community's water claims, and believes the majority of 
the provisions of the Settlement Act in this title are 
consistent with that objective, we do have concerns, detailed 
below, that we want to work on with the Committee, Senator Kyl 
and the various parties to promptly resolve.
            A. Inclusion of a settlement with the San Carlos Apache 
                    Tribe
    In resolving the water rights claims of the Gila River 
Indian Community, we must remain mindful not to place the 
United States in a position of having conflicting obligations 
to two Indian tribes. The Gila River Indian Community and the 
San Carlos Apache Tribe have reservations and existing decreed 
water rights in the same watershed. In litigation underlying 
the settlement, the United States has argued in favor of both 
the Gila River Indian Community's and the San Carlos Apache's 
water rights under the 1935 Globe Equity Decree. That Federal 
Consent Decree addresses the water rights of those tribes, as 
well as the rights of most non-Indian water users, in the 
mainstem of the Gila River above the confluence of the Gila and 
Salt rivers. The GRIC settlement will alter operations under 
the Gila Decree. These changes have the potential to impact the 
rights of the San Carlos Apache Tribe.
    We believe that additional efforts to resolve the concerns 
of the San Carlos Apache Tribe should be taken, and Interior 
has engaged in a serious effort to do that. The Department has 
taken a number of steps in this regard and is prepared to do 
more. Interior officials have met with the San Carlos Tribal 
leaders on numerous occasions, and our sincere hope is that we 
can reach resolution on a wide array of issues so that 
agreement on the San Carlos Apache Tribe's water rights can be 
added to this legislation as it proceeds. We look forward to 
working with the Committee and the Tribes on this matter.
            B. Waivers of the United States enforcement authorities
    S. 437, as introduced, also includes significant waivers of 
the United States ability to enforce environmental statutes 
relating to water quality in the Gila River basin. The settling 
parties seek to limit their exposure to environmental 
liability. However, the Administration believes the waivers, as 
currently drafted, may provide undue immunity from 
environmental liability and shift costs for cleanup to the 
Federal government. This could restrict the ability for the 
federal government to clean up the most contaminated waste 
sites in the Gila River Basin. For example, the legislation 
waives claims by the United States against both parties to the 
settlement as well as non-parties. As drafted, this legislation 
can also be interpreted to provide a waiver for future claims 
under certain environmental statutes, including those under the 
Superfund authority. This could restrict the ability for the 
federal government to cleanup the most serious hazardous waste 
sites in the Gila River Basin. These water quality waivers were 
not included in prior water rights settlements affecting Indian 
Tribes and are not necessary in this legislation.
    Following the introduction of S. 437, the Department of 
Justice entered into discussions with the settlement parties 
regarding the waivers. These discussions continue to progress. 
The Administration is committed to continuing these discussions 
to find a solution to these significant issues, as this 
legislation must maintain the Federal government's ability to 
protect human health and environnment.
            C. Overly broad waiver of the United States sovereign 
                    immunity
    The Administration also is concerned, as we believe that S. 
437 contains an overly-broad waiver of United States sovereign 
immunity. We believe that this provision is unnecessary, as 
sovereign immunity waivers in the McCarran Amendment allow a 
suit against the United States to administer its adjudicated 
water rights. Further, if such a waiver is retained, it should 
be narrowly drafted. The Administration also has some concern 
about the scope of certain waivers under Section 312 of the 
bill.
            D. Impacts of the intended water exchanges
    S. 437 authorizes several water exchanges between the 
Community and various parties in the State, including the 
Phelps Dodge Corporation, ASARCO and several municipalities in 
the Upper Gila River watershed. While we support the mechanism 
of water exchanges, we want to work with the committee to 
ensure that the current language adequately takes into account 
the water rights of the San Carlos Apache Tribe, parties 
affected in the State of New Mexico (under the Colorado River 
Basin Project Act), listed species and critical habitat under 
the Endangered Species Act (ESA), and rights to divert water in 
relation to the Globe Equity Decree. Previous analyses indicate 
that appurtenant structures and dams involved in this agreement 
could lead to more extensive and frequent Gila River drying, 
which, in turn, could lead to potential ESA conflicts.
            E. Fifth amendment takings concern
    Title II places the ownership of all settlement water in 
the hands of Gila River Indian Community, notwithstanding the 
fact that the Gila Decree (the 1935 Globe Equity Decree) framed 
its award under that Decree ``for the reclamation and 
irrigation of the irrigable Indian allotments on said 
reservation.'' We would like to refine the language of the bill 
to reduce the likelihood that an individual allottee may assert 
a ``takings'' claim based on the settlement. Both Interior and 
Justice are committed to working with the settlement parties 
and the proponents of S. 437 to reduce any risk of a Fifth 
Amendment taking and to assure that the rights of individual 
Indian allottees are protected.
            F. Costs associated
    Federal contributions to the proposed settlement within 
this Title include the fulfillment of existing statutory and 
programmatic responsibilities and the assumption of new 
obligations designed to put GRIC in a position to utilize the 
water resources confirmed or granted in the settlement. There 
are also numerous costs contained within this title, which the 
United States does not believe are reasonably related to the 
costs avoided and benefits received, and we look forward to 
working with the Committee and Senator Kyl prior to further 
consideration of this legislation to ensure the costs contained 
in the legislation are appropriate.
    For example, given the correlative benefits, we support the 
rehabilitation and completion of the Indian portion of the San 
Carlos Irrigation Project (SCIP)--an irrigation project that 
was initiated in the 1930's but never completed and which has 
fallen into significant disrepair. However, we believe that the 
language of S. 437, requiring the Secretary to provide for the 
``rehabilitation, operation, maintenance and replacement'' of 
the San Carlos Irrigation Project, needs to be refined. Our 
view is that both the cost control and indexing mechanisms for 
these expenditures need to be revisited.
    Similarly, when looking at the government's cost of 
addressing subsidence damages on the reservation, we recognize 
the settlement requires the United States to repair past and 
future subsidence damage. We believe that federal liability for 
such damages should be limited.
    Additionally, in some instances we believe that existing 
costs have been shifted from State parties to the United 
States, and those costs may be more appropriately addressed by 
other existing Federal programs. We believe disbursements from 
the Lower Basin Fund should be limited to those costs which 
have a direct relationship to the core concepts of the 
settlements addressed in S. 437.
    We also believe that a closer look should be given to some 
of the costs included in the provisions of Title II, dealing 
with the Upper Gila River. One example is the costs identified 
to line San Carlos Irrigation and Drainage District (the non-
Indian component of SCIP) canals so that water can be 
conserved. The Administration supports this concept but 
believes a greater share of the conserved water should be 
provided to the United States for possible use in settling the 
San Carlos Apache Tribe's water rights claims in the Gila 
River.
Title III--Amendments to the Southern Arizona Water Rights Settlement 
        Act (SAWRSA)
    The Southern Arizona Water Rights Settlement Act, known as 
``SAWRSA,'' Pub. L. 97-293, was enacted in 1982 to resolve 
Indian water rights claims arising within the San Xavier and 
Shuk Toak Districts of the Tohono O'odham Nation. SAWRSA did 
not settle all outstanding Tohono O'odham water rights claims. 
Claims for the Sif Oidak District and other Reservation lands 
remain to be settled.
    As originally enacted, SAWRSA allocated 37,000 AFA of CAP 
water to the San Xavier and Shuk Toak Districts of the Nation, 
together with another 28,200 AFA of water to be delivered from 
any source by the United States to the Districts. All of the 
water is to be delivered without cost to the Nation. The 
original settlement also requires the United States to 
rehabilitate and extend an historic allotee farming operation 
and design and construct irrigation facilities sufficient to 
put remaining settlement water to use.
    Construction of all irrigation facilities and the full 
implementation of SAWRSA has not occurred, principally because 
of a disagreement over proper allocation of settlement benefits 
between the Nation and allottees within the San Xavier 
District. Because of this disagreement, the allottees have 
refused to join in the dismissal of United States v. City of 
Tucson, CIV. 75-39 TUC-WDB (D. Ariz.), the litigation which 
lead to the enactment of the settlement. SAWRSA requires the 
United States, the Nation and the allottees to dismiss the 
litigation as a condition of full effectiveness of the 
settlement.
    For over ten years, the Department of the Interior, the 
City of Tucson and other state parties have been engaged in 
discussions with the Nation and the allottees in an attempt to 
agree on amendments that would resolve disputed issues. The 
Nation and the allottees have now agreed on how settlement 
water resources and funds should be distributed. The agreements 
between the Nation and the allottees are contained in Title III 
of S. 437. Essentially, the Nation and the allottees have 
agreed upon allocation of water resources, construction of new 
irrigation facilities and sharing of settlement funds.
    In general, the Administration supports these agreements 
and we look forward to working with the Committee to clarify or 
refine a few items we remain concerned about. Chief among these 
is the so called ``net proceeds'' issue that revolves around 
the United States ability to make the Cooperative Fund a self 
sustaining fund and potential federal liability if it is not 
self sustaining or is under-funded.


                               conclusion


    It is important to emphasize that the Administration 
fundamentally supports this important settlement effort if it 
is amended to address concerns discussed above, and we look 
forward to working with the Committee to revise specific 
provisions of the legislation so that we can support the bill 
without reservation.
    The Administration lauds the tremendous efforts dedicated 
by all parties to find a workable solution to this complex set 
of issues and supports the core settlement concepts and 
framework as set forth in S. 437. We recognize that this 
legislation will resolve long-standing and critical water 
challenges facing the State of Arizona. We look forward to 
working with the Committee, Senator Kyl, and the settlement 
parties to craft legislation that accomplishes these goals in a 
manner that comports with Federal financial policy and legal 
considerations.
    This concludes my testimony. I would be pleased to answer 
any questions that the members of the Committee may have.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing rules of the Senate, changes in existing law made by 
S. 437, as ordered reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                    COLORADO RIVER BASIN PROJECT ACT


                              P.L. 90-537


SEC. 101 * * *

           *       *       *       *       *       *       *


SEC. 304(F). NEW MEXICO USERS; WATER EXCHANGE CONTRACTS.

          [(1) In the operation of the Central Arizona Project, 
        the Secretary shall offer to contract with water users 
        in New Mexico for water from the Gila River, its 
        tributaries and underground water sources in amounts 
        that will permit consumptive user of water in New 
        Mexico of not to exceed an annual average in any period 
        of ten consecutive years of eighteen thousand 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 against California (376 U.S. 340). Such 
        increased consumptive uses shall not begin until, and 
        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 chapter, 
        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 waters involved.]
          (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) The Secretary shall further offer to contract 
        with water users in New Mexico for water from the Gila 
        River, its tributaries, and underground water sources 
        in amounts that will permit consumptive uses of water 
        in New Mexico of not to exceed an annual average in any 
        period of ten consecutive years of an additional thirty 
        thousand acre-feet, including reservoir evaporation. 
        Such further increases in consumptive use shall not 
        begin until, and shall continue only so long as, works 
        capable of augmenting the water supply of the Colorado 
        River system have been completed and water sufficiently 
        in excess of two million eight hundred thousand acre-
        feet per annum is available from the main stream of the 
        Colorado River for consumptive use in Arizona to 
        provide water for the exchanges herein authorized and 
        provided. In determining the amount required for this 
        purpose full consideration shall be given to any 
        differences in the quality of the waters involved.]
          [(3)](2) All additional consumptive uses provided for 
        in clauses (1) and (2) of this subsection shall be 
        subject to all rights in New Mexico and Arizona as 
        established by the decree entered by the United States 
        District Court for the District of Arizona on June 29, 
        1935, in United States against Gila Valley Irrigation 
        District and others (Globe Equity Numbered 59) and to 
        all other rights existing on September 30, 1968, in New 
        Mexico and Arizona to water from the Gila River, its 
        tributaries, and underground water sources, and shall 
        be junior thereto and shall be made only to the extend 
        possible without economic injury or cost to the holders 
        of such rights.

           *       *       *       *       *       *       *


SEC. 403. LOWER COLORADO RIVER BASIN DEVELOPMENT FUND.

    (a) Establishment.--There is hereby established a separate 
fund in the Treasury of the United States to be known as the 
Lower Colorado River Basin Development Fund (hereafter called 
the ``development fund''), which shall remain available until 
expended as hereafter provided.

           *       *       *       *       *       *       *

    (e) Appropriation by Congress Required for Construction of 
Works [Revenues] Except as provided in subsection (f), revenues 
credited to the development fund shall not be available for 
construction of the works comprised within any unit of the 
project herein or hereafter authorized except upon 
appropriation by the Congress.
    [(f) Return of Costs and Interest.--Moneys credited to the 
development fund pursuant to subsection (b) and clauses (1) and 
(3) of subsection (c) of this section and the portion of 
revenues derived from the sale of power and energy for use in 
Arizona pursuant to clause (2) of subsection (c) of this 
section in excess of the amount necessary to meet the 
requirements of clauses (1) and(2) of subsection (d) of this 
section shall be paid annually to the general fund of the 
Treasury to return--
        [(1) the costs of each unit of the projects or 
        separable feature thereof authorized pursuant to title 
        III of this Act which are allocated to irrigation, 
        commercial power, or municipal and industrial water 
        supply, pursuant to this Act within a period not 
        exceeding fifty years from the date of completion of 
        each such unit or separable feature, exclusive of any 
        development period authorized by law: Provided, That 
        return of the cost, if any, required by section 307 
        shall not be made until after the payout period of the 
        Central Arizona Project as authorized herein; and
        [(2) interest (including interest during construction) 
        on the unamortized balance of the investment in the 
        commercial power and municipal and industrial water 
        supply features of the project at a rate determined by 
        the Secretary of the Treasury in accordance with the 
        provisions of subsection (h) of this section, and 
        interest due shall be a first charge.]
  (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);
                  (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, 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 the Arizona Water 
                        Settlements 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; and
                          (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;
                  (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 Act of August 4, 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.
    (g) Repayment of Costs.--All revenues credited to the 
development fund in accordance with [clause (c)(2)] subsection 
(c)(2) of this section (excluding only those revenues derived 
from the sale of power and energy for use in Arizona during the 
payout period of the Central Arizona Project as authorized 
herein) and such other revenues as remain in the development 
fund after making the payments required by subsections (d) and 
(f) of this section shall be available (1) to make payments, if 
any, as required by sections 307 and 502 of this Act (2) for 
repayment to the general fund of the Treasury the costs of each 
salinity control unit or separable feature thereof[,] the costs 
of measures to replace incidental fish and wildlife values 
foregone, and the costs of on-farm measures payable from the 
Lower Colorado River Basin Development Fund in accordance with 
sections 205(a)(2), 205(a)(3), and 205(b)(1) of the Colorado 
River Salinity Control Act [(a)(2), (a)(3), and (b)(1)] and (3) 
upon appropriation by the Congress, to assist in the repayment 
of reimbursable costs incurred in connection with units 
hereafter constructed to provide for the augmentation of the 
water supplies of the Colorado River for use below Lee Ferry as 
may be authorized as a result of the investigations and 
recommendations made pursuant to section 201 and subsection 
203(a) of this Act.
                              ----------                              


                   Public Law 100-512, 100th Congress


AN ACT TO PROVIDE FOR THE SETTLEMENT OF THE WATER RIGHTS CLAIMS OF THE 
SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY IN MARICOPA COUNTY, ARIZONA, 
                         AND FOR OTHER PURPOSES

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Salt River Pima-Maricopa 
Indian Community Water Rights Settlement Act of 1988''.

           *       *       *       *       *       *       *


SEC. 11. MISCELLANEOUS PROVISIONS.

    (a) In the event any party to the Agreement should file a 
lawsuit in Federal District Court only relating directly to the 
interpretation or enforcement of the agreement, naming the 
United States of America or the Communities as parties, 
authorization is hereby granted to join the United States of 
America and/or the Community in any such litigation, and any 
claim by the United States of America or the Community to 
sovereign immunity from such suit is hereby waived.

           *       *       *       *       *       *       *

    [(h) Within thirty days after the date of enactment of this 
Act, the Secretary shall request the Arizona Department of 
Water Resources to recommend a reallocation of non-Indian 
agricultural CAP water that has been offered to but not 
contracted for by potential non-Indian agricultural 
subcontractors. Within one hundred and eighty days of receipt 
of such recommendations, the Secretary shall reallocate such 
water for non-Indian agricultural use, and the Secretary and 
CAWCD shall thereafter offer amendatory or new subcontracts for 
such water to non-Indian agricultural users.]
                              ----------                              


                    Public Law 97-293, 97th Congress


    AN ACT To authorize the Secretary of the Interior to construct, 
 operate, and maintain modifications of the existing Buffalo Bill Dam 
  and Reservoir, Shoshone project, Pick-Sloan Missouri Basin program, 
                    Wyoming, and for other purposes

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

                                TITLE I


                   CONSTRUCTION OF DAM MODIFICATIONS

    Sec. 101. The Secretary of the Interior, acting pursuant to 
Federal reclamation law (Act of June 17, 1902, 32 Stat. 388 and 
Acts amendatory thereof and supplemental thereto), is hereby 
authorized to construct, operate, and maintain modifications to 
the Buffalo Bill Dam and Reservoir, Shoshone project, Pick-
Sloan Missouri Basin program, Wyoming, for the purposes of 
providing approximately seventy-four thousand acre-feet of 
additional water annually for irrigation, municipal and 
industrial use, increased hydroelectric power generation, 
outdoor recreation, fish and wildlife conservation and 
development, environmental quality, and other purposes. The 
principal modifications to the Buffalo Bill Dam and Reservoir 
shall include raising the height of the existing Buffalo Bill 
Dam by twenty-five feet, enlarging the capacity of the existing 
Buffalo Bill Reservoir by approximately two hundred and 
seventy-one thousand acre-feet, replacing the existing Shoshone 
Powerplant, enlarging a spillway, construction of a visitor's 
center, dikes and impoundments, and necessary facilities to 
effect the aforesaid purposes of the modifications. These 
modifications are hereby authorized as part of the Pick-Sloan 
Missouri Basin program: Provided, That the powerplant 
authorized by this section shall be designed, constructed, and 
operated in such a manner as to not limit, restrict, or alter 
the release of water from any existing reservoir, impoundment, 
or canal adverse to the satisfaction of valid existing water 
rights or water delivery to the holder of any valid water 
service contract.

           *       *       *       *       *       *       *


                               [TITLE III


                        [CONGRESSIONAL FINDINGS

    [Sec. 301. The Congress finds that--
          [(1) water rights claims of the Papago Tribe with 
        respect to the San Xavier Reservation and the Schuk 
        Toak District of the Sells Papago Reservation are the 
        subject of existing and prospective lawsuits against 
        numerous parties in southern Arizona, including major 
        mining companies, agricultural interests, and the city 
        of Tucson;
          [(2) these lawsuits not only will prove expensive and 
        time consuming for all participants, but also could 
        have a profound adverse impact upon the health and 
        development of the Indian and non-Indian economies of 
        southern Arizona;
          [(3) the parties to the lawsuits and others 
        interested in the settlement of the water rights claims 
        of the Papago Indians within the Tucson Active 
        Management Area and that part of the Upper Santa Cruz 
        Basin not within that area have diligently attempted to 
        settle these claims and the Federal Government, by 
        providing the assistance specified in this title, will 
        make possible the execution and implementation of a 
        permanent settlement agreement;
          [(4) it is in the long-term interest of the United 
        States, the State of Arizona, its political 
        subdivisions, the Papago Indian Tribe, and the non-
        Indian community of southern Arizona that the United 
        States Government assist in the implementation of a 
        fair and equitable settlement of the water rights 
        claims of the Papago Indians respecting certain 
        portions of the Papago Reservation; and
          [(5) the settlement contained in this title will--
                  [(A) provide the necessary flexibility in the 
                management of water resources and will 
                encourage allocation of those resources to 
                their highest and best uses; and
                  [(B) insure conservation and management of 
                water resources in a manner consistent with the 
                goals and programs of the State of Arizona and 
                the Papago Tribe.

                              [DEFINITIONS

    [Sec. 302. For purposes of this title--
          [(1) The term ``acre-foot'' means the amount of water 
        necessary to cover one acre of land to a depth of one 
        foot.
          [(2) The term ``Central Arizona Project'' means the 
        project authorized under title III of the Colorado 
        River Basin Project Act (82 Stat. 887; 43 U.S.C. 1521, 
        et seq.).
          [(3) The term ``Papago Tribe'' means the Papago Tribe 
        of Arizona organized under section 16 of the Act of 
        June 18, 1934 (48 Stat. 987; 25 U.S.C. 476).
          [(4) The term ``Secretary'' means the Secretary of 
        the Interior.
          [(5) The term ``subjugate'' means to prepare land for 
        the growing of crops through irrigation.
          [(6) The term ``Tucson Active Management Area'' means 
        the area of land corresponding to the area initially 
        designated as the Tucson Active Management Area 
        pursuant to the Arizona Groundwater Management Act of 
        1980, laws 1980, fourth special session, chapter 1.
          [(7) The term ``December 11, 1980, agreement'' means 
        the Central Arizona Project water delivery contract 
        between the United States and the Papago Tribe.
          [(8) The term ``replacement costs'' means the 
        reasonable cost of acquiring and delivering water from 
        sources within the Tucson Active Management Area and 
        that part of the Upper Santa Cruz Basin not within that 
        area. Such costs shall include costs of necessary 
        construction amortized in accordance with standard 
        Bureau of Reclamation Procedures.
          [(9) The term ``value'' means the value attributed to 
        the water based on the Tribe's anticipated or actual 
        use of the water, or its fair market value, whichever 
        is greater.

 [WATER DELIVERIES TO TRIBE FROM CAP; MANAGEMENT PLAN; REPORT ON WATER 
                   AVAILABILITY; CONTRACT WITH TRIBE

    [Sec. 303. (a) As soon as is possible but not later than 
ten years after the enactment of this title, if the Papago 
Tribe has agreed to the conditions set forth in section 306, 
the Secretary, acting through the Bureau of Reclamation, 
shall--
          [(1) in the case of the San Xavier Reservation--
                  [(A) deliver annually from the main project 
                works of the Central Arizona Project twenty-
                seven thousand acre-feet of water suitable for 
                agricultural use to the reservation in 
                accordance with the provisions of section 
                304(a); and
                  [(B) improve and extend the existing 
                irrigation system on the San Xavier Reservation 
                and design and construct within the reservation 
                such additional canals, laterals, farm ditches, 
                and irrigation works as are necessary for the 
                efficient distribution for agricultural 
                purposes of the water referred to in 
                subparagraph (A); and
          [(2) in the case of the Schuk Toak District of the 
        Sells Papago Reservation--
                  [(A) deliver annually from the main project 
                works of the Central Arizona Project ten 
                thousand eight hundred acre-feet of water 
                suitable for agricultural use to the 
                reservation in accordance with the provisions 
                of section 304(a); and
                  [(B) design and construct an irrigation 
                system in the Eastern Schuk Toak District of 
                the Sells Papago Reservation, including such 
                canals, laterals, farm ditches, and irrigation 
                works, as are necessary for the efficient 
                distribution for agricultural purposes of the 
                water referred to in subparagraph (A); and
          [(3) establish a water management plan for the San 
        Xavier Reservation and the Schuk Toak District of the 
        Sells Papago Reservation which, except as is necessary 
        to be consistent with the provisions of this title, 
        will have the same effect as any management plan 
        developed under Arizona law.
          [(4) There are authorized to be appropriated up to 
        $3,500,000, plus or minus such amounts, if any, as may 
        be justified by reason of ordinary fluctuations in 
        construction costs as indicated by engineering cost 
        indices applicable to the type of construction involved 
        for those features of the irrigation system described 
        in paragraph (1)(B) or (2)(B) of section 303(a) which 
        are not authorized to be constructed under any other 
        provision of law.
    [(b)(1) In order to encourage the Papago Tribe to develop 
sources of water on the Sells Papago Reservation, the Secretary 
shall, if so requested by the tribe, carry out a study to 
determine the availability and suitability of water resources 
within the Sells Papago Reservation but outside the Tucson 
Active Management Area and that part of the Upper Santa Cruz 
Basin not within that area.
    [(2) The Secretary shall, in cooperation with the Secretary 
of Energy, or, with the appropriate agency or officials, carry 
out a study to determine--
          [(A) the availability of energy and the energy 
        requirements which result from the enactment of the 
        provisions of this title, and
          [(B) the feasibility of constructing a solar power 
        plant or other alternative energy producing facility to 
        meet such requirements.
    [(c) The Papago Tribe shall have the right to withdraw 
ground water from beneath the San Xavier Reservation subject to 
the limitations of section 306(a).
    [(d) Nothing contained in this title shall diminish or 
abrogate any obligations of the Secretary to the Papago Tribe 
under the December 11, 1980, agreement.
    [(e) Nothing contained in sections 303(c) and 306(c) shall 
be construed to establish whether or not the Federal reserved 
rights doctrine applies, or does not apply, to ground water.

   [DELIVERIES UNDER EXISTING CONTRACT; ALTERNATIVE WATER SUPPLIES; 
                       OPERATION AND MAINTENANCE

    [Sec. 304. (a) The water delivered from the main project 
works of the Central Arizona Project to the San Xavier 
Reservation and to the Schuk Toak District of the Sells Papago 
Reservation as providedin section 303(a), shall be delivered in 
such amounts, and according to such terms and conditions, as are set 
forth in the December 11, 1980, agreement, except as otherwise provided 
under this section.
    [(b) Where the Secretary, pursuant to the terms and 
conditions of the agreement referred to in subsection (a), is 
unable, during any year, to deliver from the main project works 
of the Central Arizona Project any portion of the full amount 
of water specified in section 303(a)(1)(A) and section 
303(a)(2)(A), the Secretary shall acquire and deliver an 
equivalent quantity of water from the following sources or any 
combination thereof:
          [(1) agricultural water from the Central Arizona 
        Project which has been contracted for but has been 
        released or will be unused by the contractor during the 
        period in which the Secretary will acquire the water;
          [(2) any water available for delivery through the 
        Central Arizona Project which exists by reason of the 
        augmentation of the water supply available for use and 
        distribution through the Central Arizona Project by 
        subsequent Acts of Congress; and
          [(3) water from any of the following sources or any 
        combination thereof within the Tucson Active Management 
        Area and that part of the Upper Santa Cruz Basin not 
        within that area in the State of Arizona;
                  [(A) private lands or interests therein 
                having rights in surface or ground water 
                recognized under State law; or
                  [(B) reclaimed water to which the seller has 
                a specific right.
        Deliveries of water from lands or interests referred to 
        in subparagraph (A) shall be made only to the extent 
        such water may be transported within the Tucson Active 
        Management Area pursuant to State law.
    [(c) If the Secretary is unable to acquire and deliver 
quantities of water adequate to fulfill his obligations under 
this section or paragraphs (1)(A) and (2)(A) of section 303(a), 
he shall pay damages in an amount equal to--
          [(1) the actual replacement costs of such quantities 
        of water as are not acquired and delivered, where a 
        delivery system has not been completed within ten years 
        after the day of enactment of this title, or
          [(2) the value of such quantities of water as are not 
        acquired and delivered, where the delivery system is 
        completed.
    [(d) No land, water, water rights, contract rights, or 
reclaimed water may be acquired under subsection (b) without 
the consent of the owner thereof. No private lands may be 
acquired under subsection (b)(3)(A) unless the lands have a 
recent history of receiving or being capable of actually 
receiving all or substantially all of the water right the use 
of which is recognized by State law. In acquiring any private 
lands under subsection (b)(3)(A), the Secretary shall give 
preference to the acquisition of lands upon which water has 
actually been put to beneficial use in any one of the five 
years preceding the date of acquisition. Nothing in this 
section shall authorize the Secretary to acquire or disturb the 
water rights of any Indian tribe, band, group, or community.
    [(e)(1) To meet the obligation referred to in paragraphs 
(1)(A) and (2)(A) of section 303(a), the Secretary shall, 
acting through the Bureau of Reclamation, as part of the main 
project works of the Central Arizona Project--
          [(A) design, construct and, without cost to the 
        Papago Tribe, operate, maintain, and replace such 
        facilities as are appropriate including any aqueduct 
        and appurtenant pumping facilities, powerplants, and 
        electric power transmission facilities which may be 
        necessary for such purposes; and
          [(B) deliver the water to the southern boundary of 
        the San Xavier Reservation, and to the boundary of the 
        Schuk Toak District of the Sells Papago Reservation, at 
        points agreed to by the Secretary and the tribe which 
        are suitable for delivery to the reservation 
        distribution systems.
    [(2) There is hereby authorized to be appropriated by this 
title in addition to other sums authorized to be appropriated 
by this title, a sum equal to that portion of the total costs 
of phase B of the Tucson Aqueduct of the Central Arizona 
Project which the Secretary determines to be properly allocable 
to construction of facilities for the delivery of water to 
Indian lands as described in subparagraphs (A) and (B) of 
paragraph (1). Sums allocable to the construction of such 
facilities shall be reimbursable as provided by the Act of July 
1, 1932 (Public Law 72-240; 25 U.S.C. 386(a)), as long as such 
water is used for irrigation of Indian lands.
    [(f) to facilitate the delivery of water to the San Xavier 
and the Schuk Toak District of the Sells Papago Reservation 
under this title, the Secretary is authorized--
          [(1) to enter into contracts or agreements for the 
        exchange of water, or for the use of aqueducts, canals, 
        conduits, and other facilities for water delivery, 
        including pumping plants, with the State of Arizona or 
        any of its subdivisions, with any irrigation district 
        or project, or with any authority, corporation, 
        partnership, individual, or other legal entity; and
          [(2) to use facilities constructed in whole or in 
        part with Federal funds.

              [RECLAIMED WATER; ALTERNATIVE WATER SUPPLIES

    [Sec. 305. (a) As soon as possible, but not later than ten 
years after the date of enactment of this title, the Secretary 
shall acquire reclaimed water in accordance with the agreement 
described in section 307(a)(1) and deliver annually twenty-
three thousand acre-feet of water suitable for agricultural use 
to the San Xavier Reservation and deliver annually five 
thousand two hundred acre-feet of water suitable for 
agricultural use to the Schuk Toak District of the Sells Papago 
Reservation.
    [(b)(1) The obligation of the Secretary referred to in 
subsection (a) to deliver water suitable for agricultural use 
may be fulfilled by voluntary exchange of that reclaimed water 
for any other water suitable for agricultural use or by other 
means. To make available and deliver such water, the Secretary 
acting through the Bureau of Reclamation shall design, 
construct, operate, maintain, and replace such facilities as 
are appropriate. The costs of design, construction, operation, 
maintenance, and replacement of on-reservation systems for the 
distribution of the water referred to in subsection (a) are the 
responsibility of the Papago Tribe.
    [(2) The Secretary shall not construct a separate delivery 
system to deliver reclaimed water referred to in subsection (a) 
to the San Xavier Reservation and the Schuk Toak District of 
the Sells Papago Reservation.
    [(3) To facilitate the delivery of water under this title, 
the Secretary shall, to the extent possible, utilize unused 
capacity of the main project works of the Central Arizona 
Project without reallocation of costs.
    [(c) The Secretary may, as an alternative to, and in 
satisfaction of the obligation to deliver the quantities of 
water to be delivered under subsection (a), acquire and deliver 
pursuant to agreements authorized in section 307(b), an 
equivalent quantity of water from the following sources or any 
combination thereof--
          [(1) agricultural water from the Central Arizona 
        Project which has been contracted for but has been 
        released or will be unused by the contractor during the 
        period in which the Secretary will acquire the water;
          [(2) any water available for delivery through the 
        Central Arizona Project which exists by reason of the 
        augmentation of the water supply available for use and 
        distribution through the Central Arizona Project by 
        subsequent Acts of Congress; and
          [(3) water from any of the following sources or any 
        combination thereof within the Tucson Active Management 
        Area in the State of Arizona and that part of the Upper 
        Santa Cruz Basin not within that area--
                  [(A) private lands or interests therein 
                having rights in surface or ground water 
                recognized under State law; or
                  [(B) reclaimed water to which the seller has 
                a specific right.
        Deliveries of water from lands referred to in 
        subparagraph (A) shall be made only to the extent such 
        water may be transported within the Tucson Active 
        Management Area pursuant to State law.
    [(d) If the Secretary is unable to acquire and deliver 
quantities of water adequate to fulfill his obligations under 
this section, he shall pay damages in an amount equal to--
          [(1) the actual replacement costs of such quantities 
        of water as are not acquired and delivered, where a 
        delivery system has not been completed within ten years 
        after the date of enactment of this title, or
          [(2) the value of such quantities of water as are not 
        acquired and delivered, where a delivery system is 
        completed.
    [(e) No land, water, water rights, contract rights, or 
reclaimed water may be acquired under subsection (c) without 
the consent of the owner thereof. No private lands may be 
acquired under subsection (c)(3)(A) unless the lands have a 
recent history of receiving or being capable of actually 
receiving all or substantially all of the water the right to 
the use of which is recognized by State law. In acquiring said 
private lands, the Secretary shall give preference to the 
acquisition of lands upon which water has actually been put to 
beneficial use in any one of the five years preceding the date 
of acquisition. Nothing in this section shall authorize the 
Secretary to acquire or disturb the water rights of any Indian 
tribe, band, group, or community.

 LIMITATION ON PUMPING FACILITIES FOR WATER DELIVERIES; DISPOSITION OF 
                                 WATER

    [Sec. 306. (a) The Secretary shall be required to carry out 
his obligation under subsections (b), (c), and (e) of section 
304 and under section 305 only if the Papago Tribe agrees to--
          [(1) limit pumping of ground water from beneath the 
        San Xavier Reservation to not more than ten thousand 
        acre-feet per year;
          [(2) limit the quantity of ground water pumped from 
        beneath the eastern Schuk Toak District of the Sells 
        Papago Reservation which lies within the Tucson Active 
        Management Area to those quantities being withdrawn on 
        January 1, 1981; and
          [(3) comply with the management plan established by 
        the Secretary under section 303(a)(3).
Nothing contained in paragraph (1) shall restrict the tribe 
from drilling wells and withdrawing ground water therefrom on 
the San Xavier Reservation if such wells have a capacity of 
less than thirty-five gallons per minute and are used only for 
domestic and livestock purposes. Nothing contained in paragraph 
(2) shall restrict the tribe from drilling wells and 
withdrawing ground water therefrom in the eastern Schuk Toak 
District of the Sells Papago Reservation which lies within the 
Tucson Active Management Area if such wells have a capacity of 
less than thirty-five gallons per minute and which are used 
only for domestic and livestock purposes.
    [(b) The Secretary shall be required to carry out his 
obligations with respect to distribution systems under 
paragraphs (1)(B) and (2)(B) of section 303(a) only if the 
Papago Tribe agrees to--
          [(1) subjugate, at no cost to the United States, the 
        land for which those distribution systems are to be 
        planned, designed, and constructed by the Secretary; 
        and
          [(2) assume responsibility, through the tribe or its 
        members or an entity designated by the tribe, as 
        appropriate, following completion of those distribution 
        systems and upon delivery of water under this title, 
        for the operation, maintenance, and replacement of 
        those systems in accordance with the first section of 
        the act of August 1, 1914 (38 Stat. 583; 25 U.S.C. 
        385).
    [(c)(1) The Papago Tribe shall have the right to devote all 
water supplies under this title, whether delivered by the 
Secretary or pumped by the tribe, to any use, including but not 
limited to agricultural, municipal, industrial, commercial, 
mining, or recreational use whether within or outside the 
Papago Reservation so long as such use is within the Tucson 
Active Management Area and that part of the Upper Santa Cruz 
Basin not within such area.
    [(2) The Papago Tribe may sell, exchange, or temporarily 
dispose of water, but the tribe may not permanently alienate 
any water right. In the event the tribe sells, exchanges, or 
temporarily disposes of water, such sale, exchange, or 
temporary disposition shall be pursuant to a contract which has 
been accepted and ratified by a resolution of the Papago Tribal 
Council and approved and executed by the Secretary as agent and 
trustee for the tribe. Such contract shall specifically provide 
that an action may be maintained by the contracting party 
against the United States and the Secretary for the breach 
thereof. The net proceeds from any sale, exchange, or 
disposition of water by the Papago Tribe shall be used for 
social or economic programs or for tribal administrative 
purposes which benefit the Papago Tribe.
    [(d) Nothing in section 306(c) shall be construed to 
establish whether or not reserved water may be put to use, or 
sold for use, off of any reservation to which reserved water 
rights attach.

 [OBLIGATION OF THE SECRETARY; CONTRACT FOR RECLAIMED WATER; DISMISSAL 
           AND WAIVER OR CLAIMS OF PAPAGO TRIBE AND ALLOTTEES

    [Sec. 307. (a) The Secretary shall be required to carry out 
his obligations under subsections (b), (c), and (e) of section 
304 and under section 305 only if--
          [(1) within one year of the date of enactment of this 
        title--
                  [(A) the city of Tucson and the Secretary 
                agree that the city will make immediately 
                available, without payment to the city, such 
                quantity of reclaimed water treated to 
                secondary standards as is adequate, after 
                evaporative losses, to deliver annually, as 
                contemplated in section 305(a), twenty-eight 
                thousand two hundred acre-feet of water for the 
                Secretary to dispose of as he sees fit; such 
                agreement may provide terms and conditions 
                under which the Secretary may relinquish to the 
                city of Tucson such quantities of water as are 
                not needed to satisfy the Secretary's 
                obligations under this title;
                  [(B) the Secretary and the city of Tucson, 
                the State of Arizona, the Anamax Mining 
                Company, the Cyprus-Pima Mining Company, the 
                American Smelting and Refining Company, the 
                Duval Corporation, and the Farmers Investment 
                Company agree that funds will be contributed, 
                in accordance with the paragraphs (1)(B) and 
                (2) of subsection (b) of section 313, to the 
                Cooperative Fund established under subsection 
                (a) of such section.
                  [(C) the Papago Tribe agrees to file with the 
                United States District Court for the District 
                of Arizona a stipulation for voluntary 
                dismissal with prejudice, in which the Attorney 
                General is authorized and directed to join on 
                behalf of the United States, and the allottee 
                class representatives' petition for dismissal 
                of the class action with prejudice in the 
                United States, the Papago Indian Tribe, and 
                others against the city of Tucson, and others, 
                civil numbered 75-39 TUC (JAW); and
                  [(D) the Papago Tribe executes a waiver and 
                release in a manner satisfactory to the 
                Secretary of--
                          [(i) any and all claims of water 
                        rights or injuries to water rights 
                        (including water rights in both ground 
                        water and surface water) within the 
                        Tucson Active Management Area and that 
                        part of the Upper Santa Cruz Basin not 
                        within said area, from time immemorial 
                        to the date of the execution by the 
                        tribe of such waiver, which the Papago 
                        Tribe has against the United States, 
                        the State of Arizona and any agency or 
                        political subdivision thereof, or any 
                        other person, corporation, or municipal 
                        corporation, arising under the laws of 
                        the United States or the State of 
                        Arizona; and
                          [(ii) any and all future claims of 
                        water rights (including water rights in 
                        both ground water and surface water) 
                        within the Tucson Active Management 
                        Area and that part of the Upper Santa 
                        Cruz Basin not within said area, from 
                        and after the date of execution of such 
                        waiver, which the Papago Tribe has 
                        against the United States, the State of 
                        Arizona and any agency or political 
                        subdivision thereof, or any other 
                        person, corporation,or municipal 
corporation, under the laws of the United States or the State of 
Arizona; and
          [(2) the suit referred to in paragraph (a)(C) is 
        finally dismissed;
    [(b) After the conditions referred to in subsection (a) 
have been met the Secretary shall be authorized and required, 
if necessary or desirable, to enter into agreements with other 
individuals or entities to acquire and deliver water from such 
sources set forth in section 305(c) if through such contracts 
as exercised in conjunction with the contract required in 
subsection (a)(1)(A) it is possible to deliver the quantities 
of water required in section 305(a).
    [(c) Nothing in this section shall be construed as a waiver 
or release by the Papago Tribe of any claim where such claim 
arises under this title.
    [(d) The waiver and release referred to in this section 
shall not take effect until such time as the trust fund 
referred to in section 309 is in existence, the conditions set 
forth in subsection (a) have been met, and the full amount 
authorized to be appropriated to the trust fund under section 
309 has been appropriated by the Congress.
    [(e) The settlement provided in this title shall be deemed 
to fully satisfy any and all claims of water rights or injuries 
to water rights (including water rights in both ground water 
and surface water) of all individual members of the Papago 
Tribe that have a legal interest in lands of the San Xavier 
Reservation and the Schuk Toak District of the Sells 
Reservation located within the Tucson Active Management Area 
and that part of the Upper Santa Cruz Basin not within said 
area, as of the date the waiver and release referred to in this 
section take effect. Any entitlement to water of any individual 
member of the Papago Tribe shall be satisfied out of the water 
resources provided in this title.

[STUDY OF LANDS WITHIN THE GILA BEND RESERVATION; EXCHANGE OF LANDS AND 
    ADDITION OF LANDS TO THE RESERVATION; AUTHORIZED APPROPRIATIONS

    [Sec. 308. (a) The Secretary is hereby authorized and 
directed to carry out such studies and analysis as he deems 
necessary to determine which lands, if any, within the Gila 
Bend Reservation have been rendered unsuitable for agriculture 
by reason of the operation of the Painted Rock Dam. Such study 
and analysis shall be completed within one year after the date 
of the enactment of this title.
    [(b) If, on the basis of the study and analysis conducted 
under subsection (a), the Secretary determines that lands have 
been rendered unsuitable for agriculture for the reasons set 
forth in subsection (a), and if the Papago Tribe consents, the 
Secretary is authorized to exchange such lands for an 
equivalent acreage of land under his jurisdiction which are 
within the Federal public domain and which, but for their 
suitability for agriculture, are of like quality.
    [(c) The lands exchanged under this section shall be held 
in trust for the Papago Tribe and shall be part of the Gila 
Bend Reservation for all purposes. Such lands shall be deemed 
to have been reserved as of the date of the reservation of the 
lands for which they are exchanged.
    [(d) Lands exchanged under this section which, prior to the 
exchange, were part of the Gila Bend Reservation, shall be 
managedby the Secretary of the Interior through the Bureau of 
Land Management.
    [(e) The Secretary may require the Papago Tribe to 
reimburse the United States for moneys paid, if any, by the 
Federal Government for flood easements on lands which the 
Secretary replaces by exchange under subsection (b).

          [ESTABLISHMENT OF TRUST FUND; EXPENDITURES FROM FUND

    [Sec. 309. (a) Pursuant to appropriations the Secretary of 
the Treasury shall pay to the authorized governing body of the 
Papago Tribe the sum of $15,000,000 to be held in trust for the 
benefit of such Tribe and invested in interest bearing deposits 
and securities including deposits and securities of the United 
States.
    [(b) The authorized governing body of the Papago Tribe, as 
trustee for such Tribe, may only spend each year the interest 
and dividends accruing on the sum held and invested pursuant to 
subsection (a). Such amount may only be used by the Papago 
Tribe for the subjugation of land, development of water 
resources, and the construction, operation, maintenance, and 
replacement of related facilities on the Papago Reservation 
which are not the obligation of the United States under this or 
any other Act of Congress.

 [APPLICATION OF INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT

    [Sec. 310. The functions of the Bureau of Reclamation under 
this title shall be subject to the provisions of the Indian 
Self-Determination and Education Assistance Act (88 Stat. 2203; 
25 U.S.C. 450) to the same extent as if performed by the Bureau 
of Indian Affairs.

                  [EXTENSION OF STATUTE OF LIMITATIONS

    [Sec. 311. Except as otherwise provided in section 107 of 
this title, notwithstanding section 2415 of title 28, United 
States Code, any action relating to water rights of the Papago 
Indian Tribe or any member of such tribe brought by the United 
States for, or on behalf of, such tribe or member of such 
tribe, or by such tribe on its own behalf, shall not be barred 
if the compliant is filed prior to January 1, 1985.

                [ARID LAND RENEWABLE RESOURCE ASSISTANCE

    [Sec. 312. If a Federal entity is established to provide 
financial assistance to undertake arid land renewable resources 
projects and to encourage and assure investment in the 
development of domestic sources of arid land renewable 
resources, such entity shall give first priority to the needs 
of the Papago Tribe in providing such assistance. Such entity 
shall make available to the Papago Tribe--
          [(1) price guarantees, loan guarantees, or purchase 
        agreements,
          [(2) loans, and
          [(3) joint venture projects, at a level to adequately 
        cultivate a minimum number of acres as determined by 
        such entity to be necessary to the economically 
        successful cultivation of arid land crops and a level 
        to contribute significantly to the economy of the 
        Papago Tribe.

                           COOPEERATIVE FUND

    [Sec. 313. (a) There is established in the Treasury of the 
United States a fund to be known as the ``Cooperative Fund'' 
for purposes of carrying out the obligations of the Secretary 
under sections 303, 304, and 305 of this title, including--
          [(A) operations, maintenance, and repair costs 
        related to the delivery of water under sections 303, 
        304, 305;
          [(B) any costs of acquisition an delivery of water 
        from alternative sources under section 304(b) and 
        305(c); and
          [(C) any damages payable by the Secretary under 
        section 304(c) or 305(d) of this title.
    [(b)(1) The Cooperative fund shall consist of--
          [(A) amounts appropriated to the Fund under paragraph 
        (3) of this subsection;
          [(B) $5,250,000 to be contributed as follows:
                  [(i) $2,750,000 (adjusted as provided in 
                paragraph (2)) contributed by the State of 
                Arizona;
                2  [(ii) $1,500,000 (adjusted as provided in 
                paragraph (2)) contributed by the City of 
                Tucson; and
                  [(iii) $1,000,000 (adjusted as provided in 
                paragraph (2)) contributed jointly by the 
                Anamax Mining Company, the Cyprus-Pine Mining 
                Company, the American Smelting and Refining 
                Company, the Duval Corporation, and the Farmers 
                Investment Company; and
          [(C) interest accruing to the fund under subsection 
        (a) which is not expended as provided in subsection 
        (c).
    [(2) The amounts referred to in subparagraph (B) of 
paragraph (1) shall be contributed before the expiration of the 
three-year period beginning on the date of the enactment of 
this title. To the extent that any portion of such amounts is 
contributed after the one-year period beginning on the date of 
the enactment of this title, the contribution shall include an 
adjustment representing the additional interest which would 
have been earned by the Cooperative Fund if that portion had 
been contributed before the end of the one-year period.
    [(3) There are hereby authorized to be appropriated to the 
Cooperative Fund the following:
          [(A) $5,250,000; and
          [(B) Such sums up to $16,000,000 (adjusted as 
        provided in paragraph 2) which the Secretary 
        determines, by notice to the Congress, are necessary to 
        meet his obligations under this title; and
          [(C) Such additional sums as may be provided by Act 
        of Congress.
    [(c)(1) Only interest accruing to the Cooperative Fund may 
be expended and no such interest may be expended prior to the 
earlier of--
          [(A) 10 years after the date of this enactment of 
        this title; or
          [(B) the date of completion of the main project works 
        of the Central Arizona Project.
    [(2) Interest accruing to the Fund during the twelve-month 
period before the date determined under paragraph (1) and 
interest accruing to Fund thereafter shall, without further 
appropriation, be available for expenditure after the date 
determined under paragraph (1).
    [(d) The Secretary of the Treasury shall be the trustee of 
the Cooperative Fund. It shall be the duty of the Secretary of 
the Treasury to invest such portion of the Fund as is not, in 
his judgment, required to meet current withdrawals. Such 
investments shall be in public debt securities with maturities 
suitable for the needs of such Fund and bearing interest at 
rates determined by the Secretary of the Treasury, taking into 
consideration current market yields on outstanding marketable 
obligations of the United States of comparable maturities.
    [(e) If, before the date three years after the date of the 
enactment of this title--
          [(1) the waiver and release referred to in section 
        307 does not take effect by reason of section 307(d); 
        or
          [(2) the suit referred to in section 307(a)(1)(C) is 
        not finally dismissed
the Cooperative Fund under this section shall be terminated and 
the Secretary of the Treasury shall return all amounts 
contributed to the Fund (together with a ratable share of 
accrued interest) to the respective contributors. Upon such 
termination, the share contributed by the United States under 
subsection (b)(3) shall be deposited in the General Fund of the 
Treasury.
    [(f) Payments for damages arising under 304(c) and 305(d) 
shall not exceed in any given year the amounts available for 
expenditure in any given year from the Cooperative Fund 
established under this section.

                      [COMPLIANCE WITH BUDGET ACT

    [Sec. 314. No authority under this title to enter into 
contracts or to make payments shall be effective except to the 
extent and in such amounts as provided in advance in 
appropriations Acts. Any provision of this title which, 
directly or indirectly, authorizes the enactment of new budget 
authority shall be effective only for fiscal years beginning 
after September 30, 1982.

                              [SHORT TITLE

    [Sec. 315. This title may be cited as the ``Southern 
Arizona Water Rights Settlement Act of 1982''.]

          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-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 09361 (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--
                  (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--
                          (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 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 Novermber 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
                                  (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 XavierReservation, 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 
                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) In general.--Execution of an agreement 
                described in paragraph (2) shall not constitute 
                major Federal action under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.).
                  (B) Environmental compliance activities.--The 
                Secretary shall carry out all necessary 
                environmental compliance activities during the 
                implementation of the agreements described in 
                paragraph (2), including activities under--
                          (i) the National Environmental Policy 
                        Act of 1969 (42 U.S.C. 4321 et seq.); 
                        and
                          (ii) the Endangered Species Act of 
                        1973 (16 U.S.C. 1531 et seq.).
                  (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--
                  (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.
          (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
          (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).


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