[House Report 111-390]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-390
======================================================================
 
                    AAMODT LITIGATION SETTLEMENT ACT

                                _______
                                

January 12, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3342]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 3342) to authorize the Secretary of the Interior, 
acting through the Commissioner of Reclamation, to develop 
water infrastructure in the Rio Grande Basin, and to approve 
the settlement of the water rights claims of the Pueblos of 
Nambe, Pojoaque, San Ildefonso, and Tesuque, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Aamodt Litigation 
Settlement 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.

             TITLE I--POJOAQUE BASIN REGIONAL WATER SYSTEM

Sec. 101. Authorization of Regional Water System.
Sec. 102. Operating Agreement.
Sec. 103. Acquisition of Pueblo water supply for the Regional Water 
System.
Sec. 104. Delivery and allocation of Regional Water System capacity and 
water.
Sec. 105. Aamodt Settlement Pueblos' Fund.
Sec. 106. Environmental compliance.
Sec. 107. Authorization of appropriations.

        TITLE II--POJOAQUE BASIN INDIAN WATER RIGHTS SETTLEMENT

Sec. 201. Settlement Agreement and contract approval.
Sec. 202. Environmental compliance.
Sec. 203. Conditions precedent and enforcement date.
Sec. 204. Waivers and releases.
Sec. 205. Effect.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Aamodt case.--The term ``Aamodt Case'' means the civil 
        action entitled State of New Mexico, ex rel. State Engineer and 
        United States of America, Pueblo de Nambe, Pueblo de Pojoaque, 
        Pueblo de San Ildefonso, and Pueblo de Tesuque v. R. Lee 
        Aamodt, et al., No. 66 CV 6639 MV/LCS (D.N.M.).
          (2) Acre-feet.--The term ``acre-feet'' means acre-feet of 
        water per year.
          (3) Authority.--The term ``Authority'' means the Pojoaque 
        Basin Regional Water Authority described in section 9.5 of the 
        Settlement Agreement or an alternate entity acceptable to the 
        Pueblos and the County to operate and maintain the diversion 
        and treatment facilities, certain transmission pipelines, and 
        other facilities of the Regional Water System.
          (4) City.--The term ``City'' means the city of Santa Fe, New 
        Mexico.
          (5) Cost-sharing and system integration agreement.--The term 
        ``Cost-Sharing and System Integration Agreement'' means the 
        agreement to be executed by the United States, the State, the 
        Pueblos, the County, and the City that--
                  (A) describes the location, capacity, and management 
                (including the distribution of water to customers) of 
                the Regional Water System; and
                  (B) allocates the costs of the Regional Water System 
                with respect to--
                          (i) the construction, operation, maintenance, 
                        and repair of the Regional Water System;
                          (ii) rights-of-way for the Regional Water 
                        System; and
                          (iii) the acquisition of water rights.
          (6) County.--The term ``County'' means Santa Fe County, New 
        Mexico.
          (7) County distribution system.--The term ``County 
        Distribution System'' means the portion of the Regional Water 
        System that serves water customers on non-Pueblo land in the 
        Pojoaque Basin.
          (8) County water utility.--The term ``County Water Utility'' 
        means the water utility organized by the County to--
                  (A) receive water distributed by the Authority; and
                  (B) provide the water received under subparagraph (A) 
                to customers on non-Pueblo land in the Pojoaque Basin.
          (9) Engineering report.--The term ``Engineering Report'' 
        means the report entitled ``Pojoaque Regional Water System 
        Engineering Report'' dated September 2008 and any amendments 
        thereto, including any modifications which may be required by 
        section 101(d)(2).
          (10) Fund.--The term ``Fund'' means the Aamodt Settlement 
        Pueblos' Fund established by section 105(a).
          (11) Operating agreement.--The term ``Operating Agreement'' 
        means the agreement between the Pueblos and the County executed 
        under section 102(a).
          (12) Operations, maintenance, and replacement costs.--
                  (A) In general.--The term ``operations, maintenance, 
                and replacement costs'' means all costs for the 
                operation of the Regional Water System that are 
                necessary for the safe, efficient, and continued 
                functioning of the Regional Water System to produce the 
                benefits described in the Settlement Agreement.
                  (B) Exclusion.--The term ``operations, maintenance, 
                and replacement costs'' does not include construction 
                costs or costs related to construction design and 
                planning.
          (13) Pojoaque basin.--
                  (A) In general.--The term ``Pojoaque Basin'' means 
                the geographic area limited by a surface water divide 
                (which can be drawn on a topographic map), within which 
                area rainfall and runoff flow into arroyos, drainages, 
                and named tributaries that eventually drain to--
                          (i) the Rio Pojoaque; or
                          (ii) the 2 unnamed arroyos immediately south; 
                        and
                          (iii) 2 arroyos (including the Arroyo Alamo) 
                        that are north of the confluence of the Rio 
                        Pojoaque and the Rio Grande.
                  (B) Inclusion.--The term ``Pojoaque Basin'' includes 
                the San Ildefonso Eastern Reservation recognized by 
                section 8 of Public Law 87-231 (75 Stat. 505).
          (14) Pueblo.--The term ``Pueblo'' means each of the pueblos 
        of Nambe, Pojoaque, San Ildefonso, or Tesuque.
          (15) Pueblos.--The term ``Pueblos'' means collectively the 
        Pueblos of Nambe, Pojoaque, San Ildefonso, and Tesuque.
          (16) Pueblo land.--The term ``Pueblo land'' means any real 
        property that is--
                  (A) held by the United States in trust for a Pueblo 
                within the Pojoaque Basin;
                  (B)(i) owned by a Pueblo within the Pojoaque Basin 
                before the date on which a court approves the 
                Settlement Agreement; or
                  (ii) acquired by a Pueblo on or after the date on 
                which a court approves the Settlement Agreement, if the 
                real property is located--
                          (I) within the exterior boundaries of the 
                        Pueblo, as recognized and conformed by a patent 
                        issued under the Act of December 22, 1858 (11 
                        Stat. 374, chapter V); or
                          (II) within the exterior boundaries of any 
                        territory set aside for the Pueblo by law, 
                        executive order, or court decree;
                  (C) owned by a Pueblo or held by the United States in 
                trust for the benefit of a Pueblo outside the Pojoaque 
                Basin that is located within the exterior boundaries of 
                the Pueblo as recognized and confirmed by a patent 
                issued under the Act of December 22, 1858 (11 Stat. 
                374, chapter V); or
                  (D) within the exterior boundaries of any real 
                property located outside the Pojoaque Basin set aside 
                for a Pueblo by law, executive order, or court decree, 
                if the land is within or contiguous to land held by the 
                United States in trust for the Pueblo as of January 1, 
                2005.
          (17) Pueblo water facility.--
                  (A) In general.--The term ``Pueblo Water Facility'' 
                means--
                          (i) a portion of the Regional Water System 
                        that serves only water customers on Pueblo 
                        land; and
                          (ii) portions of a Pueblo water system in 
                        existence on the date of enactment of this Act 
                        that serve water customers on non-Pueblo land, 
                        also in existence on the date of enactment of 
                        this Act, or their successors, that are--
                                  (I) depicted in the final project 
                                design, as modified by the drawings 
                                reflecting the completed Regional Water 
                                System; and
                                  (II) described in the Operating 
                                Agreement.
                  (B) Inclusions.--The term ``Pueblo Water Facility'' 
                includes--
                          (i) the barrier dam and infiltration project 
                        on the Rio Pojoaque described in the 
                        Engineering Report; and
                          (ii) the Tesuque Pueblo infiltration pond 
                        described in the Engineering Report.
          (18) Regional water system.--
                  (A) In general.--The term ``Regional Water System'' 
                means the Regional Water System described in section 
                101(a).
                  (B) Exclusions.--The term ``Regional Water System'' 
                does not include the County or Pueblo water supply 
                delivered through the Regional Water System.
          (19) San juan-chama project.--The term ``San Juan-Chama 
        Project'' means the Project authorized by section 8 of the Act 
        of June 13, 1962 (76 Stat. 96, 97), and the Act of April 11, 
        1956 (70 Stat. 105).
          (20) San juan-chama project act.--The term ``San Juan-Chama 
        Project Act'' means sections 8 through 18 of the Act of June 
        13, 1962 (76 Stat. 96, 97).
          (21) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
          (22) Settlement agreement.--The term ``Settlement Agreement'' 
        means the stipulated and binding agreement among the State, the 
        Pueblos, the United States, the County, and the City dated 
        January 19, 2006, and signed by all of the government parties 
        to the Settlement Agreement (other than the United States) on 
        May 3, 2006, and as amended in conformity with this Act.
          (23) State.--The term ``State'' means the State of New 
        Mexico.

             TITLE I--POJOAQUE BASIN REGIONAL WATER SYSTEM

SEC. 101. AUTHORIZATION OF REGIONAL WATER SYSTEM.

  (a) In General.--The Secretary, acting through the Commissioner of 
Reclamation, shall plan, design, and construct a regional water system 
in accordance with the Settlement Agreement, to be known as the 
``Regional Water System''--
          (1) to divert and distribute water to the Pueblos and to the 
        County Water Utility, in accordance with the Engineering 
        Report; and
          (2) that consists of--
                  (A) surface water diversion facilities at San 
                Ildefonso Pueblo on the Rio Grande; and
                  (B) any treatment, transmission, storage and 
                distribution facilities and wellfields for the County 
                Distribution System and Pueblo Water Facilities that 
                are necessary to supply 4,000 acre-feet of water within 
                the Pojoaque Basin, unless modified in accordance with 
                subsection (d)(2).
  (b) Final Project Design.--The Secretary shall issue a final project 
design within 90 days of completion of the environmental compliance 
described in section 106 for the Regional Water System that--
          (1) is consistent with the Engineering Report; and
          (2) includes a description of any Pueblo Water Facilities.
  (c) Acquisition of Land; Water Rights.--
          (1) Acquisition of land.--Upon request, and in exchange for 
        the funding which shall be provided in section 107(c), the 
        Pueblos shall consent to the grant of such easements and 
        rights-of-way as may be necessary for the construction of the 
        Regional Water System at no cost to the Secretary. To the 
        extent that the State or County own easements or rights-of-way 
        that may be used for construction of the Regional Water System, 
        the State or County shall provide that land or interest in land 
        as necessary for construction at no cost to the Secretary. The 
        Secretary shall acquire any other land or interest in land that 
        is necessary for the construction of the Regional Water System.
          (2) Water rights.--The Secretary shall not condemn water 
        rights for purposes of the Regional Water System.
  (d) Conditions for Construction.--
          (1) In general.--The Secretary shall not begin construction 
        of the Regional Water System facilities until the date on 
        which--
                  (A) the Secretary executes--
                          (i) the Settlement Agreement; and
                          (ii) the Cost-Sharing and System Integration 
                        Agreement; and
                  (B) the State and the County have entered into an 
                agreement with the Secretary to contribute the non-
                Federal share of the costs of the construction in 
                accordance with the Cost-Sharing and System Integration 
                Agreement.
          (2) Modifications to regional water system.--
                  (A) In general.--The State and the County, in 
                agreement with the Pueblos, the City, and other 
                signatories to the Cost-Sharing and System Integration 
                Agreement, may modify the extent, size, and capacity of 
                the County Distribution System as set forth in the 
                Cost-Sharing and System Integration Agreement.
                  (B) Effect.--A modification under subparagraph (A)--
                          (i) shall not affect implementation of the 
                        Settlement Agreement so long as the provisions 
                        in section 203 are satisfied; and
                          (ii) may result in an adjustment of the State 
                        and County cost-share allocation as set forth 
                        in the Cost-Sharing and System Integration 
                        Agreement.
  (e) Applicable Law.--The Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.) shall not apply to the design 
and construction of the Regional Water System.
  (f) Construction Costs.--
          (1) Pueblo water facilities.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the expenditures of the Secretary to construct the 
                Pueblo Water Facilities under this section shall not 
                exceed $106,400,000.
                  (B) Exception.--The amount described in subparagraph 
                (A) shall be increased or decreased, as appropriate, 
                based on ordinary fluctuations in construction costs 
                since October 1, 2006, as determined using applicable 
                engineering cost indices.
          (2) Costs to pueblo.--The costs incurred by the Secretary in 
        carrying out activities to construct the Pueblo Water 
        Facilities under this section shall not be reimbursable to the 
        United States.
          (3) County distribution system.--The costs of constructing 
        the County Distribution System shall be at State and local 
        expense.
  (g) State and Local Capital Obligations.--The State and local capital 
obligations for the Regional Water System described in the Cost-Sharing 
and System Integration Agreement shall be satisfied on the payment of 
the State and local capital obligations described in the Cost-Sharing 
and System Integration Agreement.
  (h) Conveyance of Regional Water System Facilities.--
          (1) In general.--Subject to paragraph (2), on completion of 
        the construction of the Regional Water System, the Secretary, 
        in accordance with the Operating Agreement, shall convey to--
                  (A) each Pueblo the portion of any Pueblo Water 
                Facility that is located within the boundaries of the 
                Pueblo, including any land or interest in land located 
                within the boundaries of the Pueblo that is acquired by 
                the United States for the construction of the Pueblo 
                Water Facility;
                  (B) the County the County Distribution System, 
                including any land or interest in land acquired by the 
                United States for the construction of the County 
                Distribution System; and
                  (C) the Authority any portions of the Regional Water 
                System that remain after making the conveyances under 
                subparagraphs (A) and (B), including any land or 
                interest in land acquired by the United States for the 
                construction of the portions of the Regional Water 
                System.
          (2) Conditions for conveyance.--The Secretary shall not 
        convey any portion of the Regional Water System facilities 
        under paragraph (1) until the date on which--
                  (A) construction of the Regional Water System is 
                complete; and
                  (B) the Operating Agreement is executed in accordance 
                with section 102.
          (3) Subsequent conveyance.--On conveyance by the Secretary 
        under paragraph (1), the Pueblos, the County, and the Authority 
        shall not reconvey any portion of the Regional Water System 
        conveyed to the Pueblos, the County, and the Authority, 
        respectively, unless the reconveyance is authorized by an Act 
        of Congress enacted after the date of enactment of this Act.
          (4) Interest of the united states.--On conveyance of a 
        portion of the Regional Water System under paragraph (1), the 
        United States shall have no further right, title, or interest 
        in and to the portion of the Regional Water System conveyed.
          (5) Additional construction.--On conveyance of a portion of 
        the Regional Water System under paragraph (1), the Pueblos, 
        County, or the Authority, as applicable, may, at the expense of 
        the Pueblos, County, or the Authority, construct any additional 
        infrastructure that is necessary to fully use the water 
        delivered by the Regional Water System.
          (6) Liability.--
                  (A) In general.--Effective on the date of conveyance 
                of any land or facility under this section, the United 
                States shall not be held liable by any court for 
                damages of any kind arising out of any act, omission, 
                or occurrence relating to the land and facilities 
                conveyed, other than damages caused by acts of 
                negligence by the United States, or by employees or 
                agents of the United States, prior to the date of 
                conveyance.
                  (B) Tort claims.--Nothing in this section increases 
                the liability of the United States beyond the liability 
                provided in chapter 171 of title 28, United States Code 
                (commonly known as the ``Federal Tort Claims Act'').
          (7) Effect.--Nothing in any transfer of ownership provided or 
        any conveyance thereto as provided in this section shall 
        extinguish the right of any Pueblo, the County, or the Regional 
        Water Authority to the continuous use and benefit of each 
        easement or right of way for the use, operation, maintenance, 
        repair, and replacement of Pueblo Water Facilities, the County 
        Distribution System or the Regional Water System or for 
        wastewater purposes as provided in the Cost-Sharing and System 
        Integration Agreement.

SEC. 102. OPERATING AGREEMENT.

  (a) In General.--The Pueblos and the County shall submit to the 
Secretary an executed Operating Agreement for the Regional Water System 
that is consistent with this Act, the Settlement Agreement, and the 
Cost-Sharing and System Integration Agreement not later than 180 days 
after the later of--
          (1) the date of completion of environmental compliance and 
        permitting; or
          (2) the date of issuance of a final project design for the 
        Regional Water System under section 101(b).
  (b) Approval.--Not later than 180 days after receipt of the operating 
agreement described in subsection (a), the Secretary shall approve the 
Operating Agreement upon determination that the Operating Agreement is 
consistent with this Act, the Settlement Agreement, and the Cost-
Sharing and System Integration Agreement.
  (c) Contents.--The Operating Agreement shall include--
          (1) provisions consistent with the Settlement Agreement and 
        the Cost-Sharing and System Integration Agreement and necessary 
        to implement the intended benefits of the Regional Water System 
        described in those documents;
          (2) provisions for--
                  (A) the distribution of water conveyed through the 
                Regional Water System, including a delineation of--
                          (i) distribution lines for the County 
                        Distribution System;
                          (ii) distribution lines for the Pueblo Water 
                        Facilities; and
                          (iii) distribution lines that serve both--
                                  (I) the County Distribution System; 
                                and
                                  (II) the Pueblo Water Facilities;
                  (B) the allocation of the Regional Water System 
                capacity;
                  (C) the terms of use of unused water capacity in the 
                Regional Water System;
                  (D) the construction of additional infrastructure and 
                the acquisition of associated rights-of-way or 
                easements necessary to enable any of the Pueblos or the 
                County to fully use water allocated to the Pueblos or 
                the County from the Regional Water System, including 
                provisions addressing when the construction of such 
                additional infrastructure requires approval by the 
                Authority;
                  (E) the allocation and payment of annual operation, 
                maintenance, and replacement costs for the Regional 
                Water System, including the portions of the Regional 
                Water System that are used to treat, transmit, and 
                distribute water to both the Pueblo Water Facilities 
                and the County Water Utility;
                  (F) the operation of wellfields located on Pueblo 
                land;
                  (G) the transfer of any water rights necessary to 
                provide the Pueblo water supply described in section 
                103(a);
                  (H) the operation of the Regional Water System with 
                respect to the water supply, including the allocation 
                of the water supply in accordance with section 
                3.1.8.4.2 of the Settlement Agreement so that, in the 
                event of a shortage of supply to the Regional Water 
                System, the supply to each of the Pueblos' and to the 
                County's distribution system shall be reduced on a 
                prorata basis, in proportion to each distribution 
                system's most current annual use; and
                  (I) dispute resolution; and
          (3) provisions for operating and maintaining the Regional 
        Water System facilities before and after conveyance under 
        section 101(h), including provisions to--
                  (A) ensure that--
                          (i) the operation of, and the diversion and 
                        conveyance of water by, the Regional Water 
                        System is in accordance with the Settlement 
                        Agreement;
                          (ii) the wells in the Regional Water System 
                        are used in conjunction with the surface water 
                        supply of the Regional Water System to ensure a 
                        reliable firm supply of water to all users of 
                        the Regional Water System, consistent with the 
                        intent of the Settlement Agreement that surface 
                        supplies will be used to the maximum extent 
                        feasible;
                          (iii) the respective obligations regarding 
                        delivery, payment, operation, and management 
                        are enforceable; and
                          (iv) the County has the right to serve any 
                        new water users located on non-Pueblo land in 
                        the Pojoaque Basin; and
                  (B) allow for any aquifer storage and recovery 
                projects that are approved by the Office of the New 
                Mexico State Engineer.
  (d) Effect.--Nothing in this Act precludes the Operating Agreement 
from authorizing phased or interim operations if the Regional Water 
System is constructed in phases.

SEC. 103. ACQUISITION OF PUEBLO WATER SUPPLY FOR THE REGIONAL WATER 
                    SYSTEM.

  (a) In General.--For the purpose of providing a reliable firm supply 
of water from the Regional Water System for the Pueblos in accordance 
with the Settlement Agreement, the Secretary, on behalf of the Pueblos, 
shall--
          (1) acquire water rights to--
                  (A) 302 acre-feet of Nambe reserved water described 
                in section 2.6.2 of the Settlement Agreement pursuant 
                to section 107(c)(1)(C); and
                  (B) 1141 acre-feet from water acquired by the County 
                for water rights commonly referred to as ``Top of the 
                World'' rights in the Aamodt Case;
          (2) enter into a contract with the Pueblos for 1,079 acre-
        feet in accordance with section 11 of the San Juan-Chama 
        Project Act; and
          (3) by application to the State Engineer, seek approval to 
        divert the water acquired and made available under paragraphs 
        (1) and (2) at the points of diversion for the Regional Water 
        System, consistent with the Settlement Agreement and the Cost-
        Sharing and System Integration Agreement.
  (b) Forfeiture.--The nonuse of the water supply secured by the 
Secretary for the Pueblos under subsection (a) shall in no event result 
in forfeiture, abandonment, relinquishment, or other loss thereof.
  (c) Trust.--The Pueblo water supply secured under subsection (a) 
shall be held by the United States in trust for the Pueblos.
  (d) Applicable Law.--The water supply made available pursuant to 
subsection (a)(2) shall be subject to the San Juan-Chama Project Act, 
and no preference shall be provided to the Pueblos as a result of 
subsection (c) with regard to the delivery or distribution of San Juan-
Chama Project water or the management or operation of the San Juan-
Chama Project.
  (e) Contract for San Juan-Chama Project Water Supply.--With respect 
to the contract for the water supply required by subsection (a)(2), 
such San Juan-Chama Project contract shall be pursuant to the following 
terms:
          (1) Waivers.--Notwithstanding the provisions of the San Juan-
        Chama Project Act, or any other provision of law--
                  (A) the Secretary shall waive the entirety of the 
                Pueblos' share of the construction costs for the San 
                Juan-Chama Project, and pursuant to that waiver, the 
                Pueblos' share of all construction costs for the San 
                Juan-Chama Project, inclusive of both principal and 
                interest, due from 1972 to the execution of the 
                contract required by subsection (a)(2), shall be 
                nonreimbursable;
                  (B) the Secretary's waiver of each Pueblo's share of 
                the construction costs for the San Juan-Chama Project 
                will not result in an increase in the pro rata shares 
                of other San Juan-Chama Project water contractors, but 
                such costs shall be absorbed by the United States 
                Treasury or otherwise appropriated to the Department of 
                the Interior; and
                  (C) the costs associated with any water made 
                available from the San Juan-Chama Project which were 
                determined nonreimbursable and nonreturnable pursuant 
                to Public Law No. 88-293, 78 Stat. 171 (March 26, 
                1964), shall remain nonreimbursable and nonreturnable.
          (2) Termination.--The contract shall provide that it shall 
        terminate only upon the following conditions--
                  (A) failure of the United States District Court for 
                the District of New Mexico to enter a final decree for 
                the Aamodt Case by December 15, 2012, or within the 
                time period of any extension of that deadline granted 
                by the court; or
                  (B) entry of an order by the United States District 
                Court for the District of New Mexico voiding the final 
                decree and Settlement Agreement for the Aamodt Case 
                pursuant to section 10.3 of the Settlement Agreement.
  (f) Limitation.--The Secretary shall use the water supply secured 
under subsection (a) only for the purposes described in the Settlement 
Agreement.
  (g) Fulfillment of Water Supply Acquisition Obligations.--Compliance 
with subsections (a) through (f) shall satisfy any and all obligations 
of the Secretary to acquire or secure a water supply for the Pueblos 
pursuant to the Settlement Agreement.
  (h) Rights of Pueblos in Settlement Agreement Unaffected.--
Notwithstanding the provisions of subsections (a) through (g), the 
Pueblos, the County or the Regional Water Authority may acquire any 
additional water rights to ensure all parties to the Settlement 
Agreement receive the full allocation of water provided by the 
Settlement Agreement and nothing in this Act amends or modifies the 
quantities of water allocated to the Pueblos thereunder.

SEC. 104. DELIVERY AND ALLOCATION OF REGIONAL WATER SYSTEM CAPACITY AND 
                    WATER.

  (a) Allocation of Regional Water System Capacity.--
          (1) In general.--The Regional Water System shall have the 
        capacity to divert from the Rio Grande a quantity of water 
        sufficient to provide--
                  (A) up to 4,000 acre-feet of consumptive use of 
                water; and
                  (B) the requisite peaking capacity described in--
                          (i) the Engineering Report; and
                          (ii) the final project design.
          (2) Allocation to the pueblos and county water utility.--Of 
        the capacity described in paragraph (1)--
                  (A) there shall be allocated to the Pueblos--
                          (i) sufficient capacity for the conveyance of 
                        2,500 acre-feet consumptive use; and
                          (ii) the requisite peaking capacity for the 
                        quantity of water described in clause (i); and
                  (B) there shall be allocated to the County Water 
                Utility--
                          (i) sufficient capacity for the conveyance of 
                        up to 1,500 acre-feet consumptive use; and
                          (ii) the requisite peaking capacity for the 
                        quantity of water described in clause (i).
          (3) Applicable law.--Water shall be allocated to the Pueblos 
        and the County Water Utility under this subsection in 
        accordance with--
                  (A) this title;
                  (B) the Settlement Agreement; and
                  (C) the Operating Agreement.
  (b) Delivery of Regional Water System Water.--The Authority shall 
deliver water from the Regional Water System--
          (1) to the Pueblos water in a quantity sufficient to allow 
        full consumptive use of up to 2,500 acre-feet per year of water 
        rights by the Pueblos in accordance with--
                  (A) the Settlement Agreement;
                  (B) the Operating Agreement; and
                  (C) this title; and
          (2) to the County water in a quantity sufficient to allow 
        full consumptive use of up to 1,500 acre-feet per year of water 
        rights by the County Water Utility in accordance with--
                  (A) the Settlement Agreement;
                  (B) the Operating Agreement; and
                  (C) this title.
  (c) Additional Use of Allocation Quantity and Unused Capacity.--The 
Regional Water System may be used to--
          (1) provide for use of return flow credits to allow for full 
        consumptive use of the water allocated in the Settlement 
        Agreement to each of the Pueblos and to the County; and
          (2) convey water allocated to one of the Pueblos or the 
        County Water Utility for the benefit of another Pueblo or the 
        County Water Utility or allow use of unused capacity by each 
        other through the Regional Water System in accordance with an 
        intergovernmental agreement between the Pueblos, or between a 
        Pueblo and County Water Utility, as applicable, if--
                  (A) such intergovernmental agreements are consistent 
                with the Operating Agreement, the Settlement Agreement, 
                and this Act;
                  (B) capacity is available without reducing water 
                delivery to any Pueblo or the County Water Utility in 
                accordance with the Settlement Agreement, unless the 
                County Water Utility or Pueblo contracts for a 
                reduction in water delivery or Regional Water System 
                capacity;
                  (C) the Pueblo or County Water Utility contracting 
                for use of the unused capacity or water has the right 
                to use the water under applicable law; and
                  (D) any agreement for the use of unused capacity or 
                water provides for payment of the operation, 
                maintenance, and replacement costs associated with the 
                use of capacity or water.

SEC. 105. AAMODT SETTLEMENT PUEBLOS' FUND.

  (a) Establishment of the Aamodt Settlement Pueblos' Fund.--There is 
established in the Treasury of the United States a fund, to be known as 
the ``Aamodt Settlement Pueblos' Fund,'' consisting of--
          (1) such amounts as are made available to the Fund under 
        section 107(c) or other authorized sources; and
          (2) any interest earned from investment of amounts in the 
        Fund under subsection (b).
  (b) Management of the Fund.--The Secretary shall manage the Fund, 
invest amounts in the Fund, and make amounts available from the Fund 
for distribution to the Pueblos in accordance with--
          (1) the American Indian Trust Fund Management Reform Act of 
        1994 (25 U.S.C. 4001 et seq.); and
          (2) this Act.
  (c) Investment of the Fund.--On the date set forth in section 
203(a)(1), the Secretary shall invest amounts in the Fund in accordance 
with--
          (1) the Act of April 1, 1880 (25 U.S.C. 161);
          (2) the first section of the Act of June 24, 1938 (25 U.S.C. 
        162a); and
          (3) the American Indian Trust Fund Management Reform Act of 
        1994 (25 U.S.C. 4001 et seq.).
  (d) Tribal Management Plan.--
          (1) In general.--A Pueblo may withdraw all or part of the 
        Pueblo's portion of the Fund on approval by the Secretary of a 
        tribal management plan as described in the American Indian 
        Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et 
        seq.).
          (2) Requirements.--In addition to the requirements under the 
        American Indian Trust Fund Management Reform Act of 1994 (25 
        U.S.C. 4001 et seq.), the tribal management plan shall require 
        that a Pueblo spend any amounts withdrawn from the Fund in 
        accordance with the purposes described in section 107(c).
          (3) Enforcement.--The Secretary may take judicial or 
        administrative action to enforce the provisions of any tribal 
        management plan to ensure that any amounts withdrawn from the 
        Fund under an approved tribal management plan are used in 
        accordance with this title.
          (4) Liability.--If a Pueblo or the Pueblos exercise the right 
        to withdraw amounts from the Fund, neither the Secretary nor 
        the Secretary of the Treasury shall retain any liability for 
        the expenditure or investment of the amounts withdrawn.
          (5) Expenditure plan.--
                  (A) In general.--The Pueblos shall submit to the 
                Secretary for approval an expenditure plan for any 
                portion of the amounts in the Fund that the Pueblos do 
                not withdraw under this subsection.
                  (B) Description.--The expenditure plan shall describe 
                the manner in which, and the purposes for which, 
                amounts remaining in the 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, the Settlement 
                Agreement, and the Cost-Sharing and System Integration 
                Agreement.
                  (D) Annual report.--The Pueblos shall submit to the 
                Secretary an annual report that describes all 
                expenditures from the Fund during the year covered by 
                the report.
          (6) No per capita payments.--No part of the principal of the 
        Fund, or the interest or income accruing on the principal shall 
        be distributed to any member of a Pueblo on a per capita basis.
          (7) Availability of amounts from the fund.--
                  (A) Approval of settlement agreement.--Amounts made 
                available under subparagraphs (A) and (C) of section 
                107(c)(1) or from other authorized sources shall be 
                available for expenditure or withdrawal only after the 
                date on which the United States District Court for the 
                District of New Mexico issues an order approving the 
                Settlement Agreement.
                  (B) Completion of certain portions of regional water 
                system.--Amounts made available under section 
                107(c)(1)(B) or from other authorized sources shall be 
                available for expenditure or withdrawal only after 
                those portions of the Regional Water System described 
                in section 1.5.24 of the Settlement Agreement have been 
                declared substantially complete by the Secretary.
                  (C) Failure to fulfill conditions precedent.--If the 
                conditions precedent in section 203 have not been 
                fulfilled by September 15, 2017, the United States 
                shall be entitled to set off any funds expended or 
                withdrawn from the amounts appropriated pursuant to 
                section 107(c), together with any interest accrued, 
                against any claims asserted by the Pueblos against the 
                United States relating to the water rights in the 
                Pojoaque Basin.

SEC. 106. ENVIRONMENTAL COMPLIANCE.

  (a) In General.--In carrying out this title, the Secretary shall 
comply with each law of the Federal Government relating to the 
protection of the environment, including--
          (1) the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.); and
          (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).
  (b) National Environmental Policy Act.--Nothing in this Act affects 
the outcome of any analysis conducted by the Secretary or any other 
Federal official under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.).

SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

  (a) Regional Water System.--
          (1) In general.--Subject to paragraph (4), there is 
        authorized to be appropriated to the Secretary for the 
        planning, design, and construction of the Regional Water System 
        and the conduct of environmental compliance activities under 
        section 106 an amount not to exceed $106,400,000, as adjusted 
        under paragraph (3), for the period of fiscal years 2010 
        through 2022, to remain available until expended.
          (2) Priority of funding.--Of the amounts authorized under 
        paragraph (1), the Secretary shall give priority to funding--
                  (A) the construction of the San Ildefonso portion of 
                the Regional Water System, consisting of--
                          (i) the surface water diversion, treatment, 
                        and transmission facilities at San Ildefonso 
                        Pueblo; and
                          (ii) the San Ildefonso Pueblo portion of the 
                        Pueblo Water Facilities; and
                  (B) that part of the Regional Water System providing 
                475 acre-feet to Pojoaque Pueblo pursuant to section 
                2.2 of the Settlement Agreement.
          (3) Adjustment.--The amount authorized under paragraph (1) 
        shall be adjusted annually to account for increases in 
        construction costs since October 1, 2006, as determined using 
        applicable engineering cost indices.
          (4) Limitations.--
                  (A) In general.--No amounts shall be made available 
                under paragraph (1) for the construction of the 
                Regional Water System until the date on which the 
                United States District Court for the District of New 
                Mexico issues an order approving the Settlement 
                Agreement.
                  (B) Record of decision.--No amounts made available 
                under paragraph (1) shall be expended unless the record 
                of decision issued by the Secretary after completion of 
                an environmental impact statement provides for a 
                preferred alternative that is in substantial compliance 
                with the proposed Regional Water System, as defined in 
                the Engineering Report.
  (b) Acquisition of Water Rights.--There is authorized to be 
appropriated to the Secretary funds for the acquisition of the water 
rights under section 103(a)(1)(B)--
          (1) in the amount of $5,400,000.00 if such acquisition is 
        completed by December 31, 2010; and
          (2) the amount authorized under paragraph (b)(1) shall be 
        adjusted according to the CPI Urban Index commencing January 1, 
        2011.
  (c) Aamodt Settlement Pueblos' Fund.--
          (1) In general.--There is authorized to be appropriated to 
        the Fund the following amounts for the period of fiscal years 
        2010 through 2022:
                  (A) $15,000,000, which shall be allocated to the 
                Pueblos, in accordance with section 2.7.1 of the 
                Settlement Agreement, for the rehabilitation, 
                improvement, operation, maintenance, and replacement of 
                the agricultural delivery facilities, waste water 
                systems, and other water-related infrastructure of the 
                applicable Pueblo. The amount authorized herein shall 
                be adjusted according to the CPI Urban Index commencing 
                October 1, 2006.
                  (B) $37,500,000, which shall be allocated to an 
                account, to be established not later than January 1, 
                2016, to assist the Pueblos in paying the Pueblos' 
                share of the cost of operating, maintaining, and 
                replacing the Pueblo Water Facilities and the Regional 
                Water System.
                  (C) $5,000,000 and any interest thereon, which shall 
                be allocated to the Pueblo of Nambe for the acquisition 
                of the Nambe reserved water rights in accordance with 
                section 103(a)(1)(A). The amount authorized herein 
                shall be adjusted according to the CPI Urban Index 
                commencing January 1, 2011. The funds provided under 
                this section may be used by the Pueblo of Nambe only 
                for the acquisition of land, other real property 
                interests, or economic development.
          (2) Operation, maintenance, and replacement costs.--
                  (A) In general.--Prior to conveyance of the Regional 
                Water System pursuant to section 101, the Secretary is 
                authorized to and shall pay any operation, maintenance 
                or replacement costs associated with the Pueblo Water 
                Facilities or the Regional Water System up to an amount 
                that does not exceed $5,000,000, which is authorized to 
                be appropriated to the Secretary.
                  (B) Obligation of federal government after 
                completion.--The amount authorized under subparagraph 
                (A) shall expire after the date on which construction 
                of the Regional Water System is completed and the 
                amounts required to be deposited in the account have 
                been deposited under this section by the Federal 
                Government.

        TITLE II--POJOAQUE BASIN INDIAN WATER RIGHTS SETTLEMENT

SEC. 201. SETTLEMENT AGREEMENT AND CONTRACT APPROVAL.

  (a) Approval.--To the extent the Settlement Agreement and the Cost-
Sharing and System Integration Agreement do not conflict with this Act, 
the Settlement Agreement and the Cost-Sharing and System Integration 
Agreement (including any amendments to the Settlement Agreement and the 
Cost-Sharing and System Integration Agreement that are executed to make 
the Settlement Agreement or the Cost-Sharing and System Integration 
Agreement consistent with this Act) are authorized, ratified, and 
confirmed.
  (b) Execution.--To the extent the Settlement Agreement and the Cost-
Sharing and System Integration Agreement do not conflict with this Act, 
the Secretary shall execute the Settlement Agreement and the Cost-
Sharing and System Integration Agreement (including any amendments that 
are necessary to make the Settlement Agreement or the Cost-Sharing and 
System Integration Agreement consistent with this Act).
  (c) Authorities of the Pueblos.--
          (1) In general.--Each of the Pueblos may enter into contracts 
        to lease or exchange water rights or to forbear undertaking new 
        or expanded water uses for water rights recognized in section 
        2.1 of the Settlement Agreement for use within the Pojoaque 
        Basin in accordance with the other limitations of section 2.1.5 
        of the Settlement Agreement provided that section 2.1.5 is 
        amended accordingly.
          (2) Execution.--The Secretary shall not execute the 
        Settlement Agreement until such amendment is accomplished under 
        paragraph (1).
          (3) Approval by secretary.--Consistent with the Settlement 
        Agreement as amended under paragraph (1), the Secretary shall 
        approve or disapprove a lease entered into under paragraph (1).
          (4) Prohibition on permanent alienation.--No lease or 
        contract under paragraph (1) shall be for a term exceeding 99 
        years, nor shall any such lease or contract provide for 
        permanent alienation of any portion of the water rights made 
        available to the Pueblos under the Settlement Agreement.
          (5) Applicable law.--Section 2116 of the Revised Statutes (25 
        U.S.C. 177) shall not apply to any lease or contract entered 
        into under paragraph (1).
          (6) Leasing or marketing of water supply.--The water supply 
        provided on behalf of the Pueblos pursuant to section 103(a)(1) 
        may only be leased or marketed by any of the Pueblos pursuant 
        to the intergovernmental agreements described in section 
        104(c)(2).
  (d) Amendments to Contracts.--The Secretary shall amend the contracts 
relating to the Nambe Falls Dam and Reservoir that are necessary to use 
water supplied from the Nambe Falls Dam and Reservoir in accordance 
with the Settlement Agreement.

SEC. 202. ENVIRONMENTAL COMPLIANCE.

  (a) Effect of Execution of Settlement Agreement.--The execution of 
the Settlement Agreement under section 201(b) shall not constitute a 
major Federal action under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.).
  (b) Compliance With Environmental Laws.--In carrying out this Act, 
the Secretary shall comply with each law of the Federal Government 
relating to the protection of the environment, including--
          (1) the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.); and
          (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).

SEC. 203. CONDITIONS PRECEDENT AND ENFORCEMENT DATE.

  (a) Conditions Precedent.--
          (1) In general.--Upon the fulfillment of the conditions 
        precedent described in paragraph (2), the Secretary shall 
        publish in the Federal Register by September 15, 2017, a 
        statement of finding that the conditions have been fulfilled.
          (2) Requirements.--The conditions precedent referred to in 
        paragraph (1) are the conditions that--
                  (A) to the extent that the Settlement Agreement 
                conflicts with this title, the Settlement Agreement has 
                been revised to conform with this title;
                  (B) the Settlement Agreement, so revised, including 
                waivers and releases pursuant to section 204, has been 
                executed by the appropriate parties and the Secretary;
                  (C) Congress has fully appropriated, or the Secretary 
                has provided from other authorized sources, all funds 
                authorized by section 107, with the exception of 
                subsection (a)(1) of that section, by December 15, 
                2016;
                  (D) the Secretary has acquired and entered into 
                appropriate contracts for the water rights described in 
                section 103(a);
                  (E) for purposes of section 103(a), permits have been 
                issued by the New Mexico State Engineer to the Regional 
                Water Authority to change the points of diversion to 
                the mainstem of the Rio Grande for the diversion and 
                consumptive use of at least 2,381 acre-feet by the 
                Pueblos as part of the water supply for the Regional 
                Water System, subject to the conditions that--
                          (i) the permits shall be free of any 
                        condition that materially adversely affects the 
                        ability of the Pueblos or the Regional Water 
                        Authority to divert or use the Pueblo water 
                        supply described in section 103(a), including 
                        water rights acquired in addition to those 
                        described in section 103(a), in accordance with 
                        section 103(g); and
                          (ii) the Settlement Agreement shall establish 
                        the means to address any permit conditions to 
                        ensure the ability of the Pueblos to fully 
                        divert and consume at least 2,381 acre-feet as 
                        part of the water supply for the Regional Water 
                        System, including defining the conditions that 
                        will not constitute a material adverse affect;
                  (F) the State has enacted any necessary legislation 
                and provided any funding that may be required under the 
                Settlement Agreement;
                  (G) a partial final decree that sets forth the water 
                rights and other rights to water to which the Pueblos 
                are entitled under the Settlement Agreement and this 
                title and that substantially conforms to the Settlement 
                Agreement has been approved by the United States 
                District Court for the District of New Mexico; and
                  (H) a final decree that sets forth the water rights 
                for all parties to the Aamodt Case and that 
                substantially conforms to the Settlement Agreement has 
                been approved by the United States District Court for 
                the District of New Mexico by June 15, 2017.
  (b) Expiration Date.--If all the conditions precedent described in 
subsection (a)(2) have not been fulfilled by September 15, 2017--
          (1) the Settlement Agreement and this Act including waivers 
        described in those documents shall no longer be effective; and
          (2) any funds that have been appropriated under this Act but 
        not expended shall immediately revert to the general fund of 
        the United States Treasury.
  (c) Enforcement Date.--The Settlement Agreement shall become 
enforceable as of the date that the United States District Court for 
the District of New Mexico enters a partial final decree pursuant to 
subsection (a)(2)(E) and an Interim Administrative Order consistent 
with the Settlement Agreement.
  (d) Effectiveness of Waivers.--The waivers and releases executed 
pursuant to section 204 shall become effective as of the date that the 
Secretary publishes the notice required by subsection (a)(1).
  (e) Requirements for Determination of Substantial Completion of the 
Regional Water System.--
          (1) Criteria for substantial completion of regional water 
        system.--Subject to the provisions in section 101(d) concerning 
        the extent, size, and capacity of the County Distribution 
        System, the Regional Water System shall be determined to be 
        substantially completed if the infrastructure has been 
        constructed capable of--
                  (A) diverting, treating, transmitting, and 
                distributing a supply of 2,500 acre-feet of water to 
                the Pueblos; and
                  (B) diverting, treating, and transmitting the 
                quantity of water specified in the Engineering Report 
                to the County Distribution System.
          (2) Consultation.--On or after June 30, 2021, at the request 
        of 1 or more of the Pueblos, the Secretary shall consult with 
        the Pueblos and confer with the County and the State on whether 
        the criteria in paragraph (1) for substantial completion of the 
        Regional Water System have been met or will be met by June 30, 
        2024.
          (3) Written determination by secretary.--Not earlier than 
        June 30, 2021, at the request of 1 or more of the Pueblos and 
        after the consultation required by paragraph (2), the Secretary 
        shall--
                  (A) determine whether the Regional Water System has 
                been substantially completed based on the criteria 
                described in paragraph (1); and
                  (B) submit a written notice of the determination 
                under subparagraph (A) to--
                          (i) the Pueblos;
                          (ii) the County; and
                          (iii) the State.
          (4) Right to review.--
                  (A) In general.--A determination by the Secretary 
                under paragraph (3)(A) shall be considered to be a 
                final agency action subject to judicial review by the 
                Decree Court under sections 701 through 706 of title 5, 
                United States Code.
                  (B) Failure to make timely determination.--
                          (i) In general.--If a Pueblo requests a 
                        written determination under paragraph (3) and 
                        the Secretary fails to make such a written 
                        determination by the date described in clause 
                        (ii), there shall be a rebuttable presumption 
                        that the failure constitutes agency action 
                        unlawfully withheld or unreasonably delayed 
                        under section 706 of title 5, United States 
                        Code.
                          (ii) Date.--The date referred to in clause 
                        (i) is the date that is the later of--
                                  (I) the date that is 180 days after 
                                the date of receipt by the Secretary of 
                                the request by the Pueblo; and
                                  (II) June 30, 2023.
                  (C) Effect of act.--Nothing in this Act gives any 
                Pueblo or Settlement Party the right to judicial review 
                of a determination of the Secretary regarding whether 
                the Regional Water System has been substantially 
                completed except under subchapter II of chapter 5, and 
                chapter 7, of title 5, United States Code (commonly 
                known as the ``Administrative Procedure Act'').
          (5) Right to void final decree.--
                  (A) In general.--Not later than June 30, 2024, on a 
                determination by the Secretary, after consultation with 
                the Pueblos, that the Regional Water System is not 
                substantially complete, 1 or more of the Pueblos, or 
                the United States acting on behalf of a Pueblo, shall 
                have the right to notify the Decree Court of the 
                determination.
                  (B) Effect.--The Final Decree shall have no force or 
                effect on a finding by the Decree Court that a Pueblo, 
                or the United States acting on behalf of a Pueblo, has 
                submitted proper notification under subparagraph (A).
  (f) Voiding of Waivers.--If the Final Decree is void under subsection 
(e)(5)--
          (1) the Settlement Agreement shall no longer be effective;
          (2) the waivers and releases executed pursuant to section 204 
        shall no longer be effective; and
          (3) any unexpended Federal funds, together with any interest 
        earned on those funds, and title to any property acquired or 
        constructed with expended Federal funds shall be returned to 
        the Federal Government, unless otherwise agreed to by the 
        Pueblos and the United States and approved by Congress.

SEC. 204. WAIVERS AND RELEASES.

  (a) Claims by the Pueblos and the United States.--In return for 
recognition of the Pueblos' water rights and other benefits, including 
waivers and releases by non-Pueblo parties, as set forth in the 
Settlement Agreement and this Act, the Pueblos, on behalf of themselves 
and their members, and the United States acting in its capacity as 
trustee for the Pueblos are authorized to execute a waiver and release 
of--
          (1) all claims for water rights in the Pojoaque Basin that 
        the Pueblos, or the United States acting in its capacity as 
        trustee for the Pueblos, asserted, or could have asserted, in 
        any proceeding, including the Aamodt Case, up to and including 
        the waiver effectiveness date identified in section 203(d), 
        except to the extent that such rights are recognized in the 
        Settlement Agreement or this Act;
          (2) all claims for water rights for lands in the Pojoaque 
        Basin and for rights to use water in the Pojoaque Basin that 
        the Pueblos, or the United States acting in its capacity as 
        trustee for the Pueblos, might be able to otherwise assert in 
        any proceeding not initiated on or before the date of enactment 
        of this title, except to the extent that such rights are 
        recognized in the Settlement Agreement or this Act;
          (3) all claims for damages, losses or injuries to water 
        rights or claims of interference with, diversion or taking of 
        water (including claims for injury to land resulting from such 
        damages, losses, injuries, interference with, diversion, or 
        taking) for land within the Pojoaque Basin that accrued at any 
        time up to and including the waiver effectiveness date 
        identified in section 203(d);
          (4) their defenses in the Aamodt Case to the claims 
        previously asserted therein by other parties to the Settlement 
        Agreement;
          (5) all pending and future inter se challenges to the 
        quantification and priority of water rights of non-Pueblo wells 
        in the Pojoaque Basin, except as provided by section 2.8 of the 
        Settlement Agreement;
          (6) all pending and future inter se challenges against other 
        parties to the Settlement Agreement;
          (7) all claims for damages, losses, or injuries to water 
        rights or claims of interference with, diversion or taking of 
        water (including claims for injury to land resulting from such 
        damages, losses, injuries, interference with, diversion, or 
        taking of water) attributable to City of Santa Fe pumping of 
        groundwater that has effects on the ground and surface water 
        supplies of the Pojoaque Basin, provided that this waiver shall 
        not be effective by the Pueblo of Tesuque unless there is a 
        water resources agreement executed between the Pueblo of 
        Tesuque and the City of Santa Fe; and
          (8) all claims for damages, losses, or injuries to water 
        rights or claims of interference with, diversion or taking of 
        water (including claims for injury to land resulting from such 
        damages, losses, injuries, interference with, diversion, or 
        taking of water) attributable to County of Santa Fe pumping of 
        groundwater that has effects on the ground and surface water 
        supplies of the Pojoaque Basin.
  (b) Claims by the Pueblos Against the United States.--The Pueblos, on 
behalf of themselves and their members, are authorized to execute a 
waiver and release of--
          (1) all claims against the United States, its agencies, or 
        employees, relating to claims for water rights in or water of 
        the Pojoaque Basin or for rights to use water in the Pojoaque 
        Basin that the United States acting in its capacity as trustee 
        for the Pueblos asserted, or could have asserted, in any 
        proceeding, including the Aamodt Case;
          (2) all claims against the United States, its agencies, or 
        employees relating to damages, losses, or injuries to water, 
        water rights, land, or natural resources due to loss of water 
        or water rights (including damages, losses or injuries to 
        hunting, fishing, gathering or cultural rights due to loss of 
        water or water rights; claims relating to interference with, 
        diversion or taking of water or water rights; or claims 
        relating to failure to protect, acquire, replace, or develop 
        water, water rights or water infrastructure) within the 
        Pojoaque Basin that first accrued at any time up to and 
        including the waiver effectiveness date identified in section 
        203(d);
          (3) all claims against the United States, its agencies, or 
        employees for an accounting of funds appropriated by Acts, 
        including the Act of December 22, 1927 (45 Stat. 2), the Act of 
        March 4, 1929 (45 Stat. 1562), the Act of March 26, 1930 (46 
        Stat. 90), the Act of February 14, 1931 (46 Stat. 1115), the 
        Act of March 4, 1931 (46 Stat. 1552), the Act of July 1, 1932 
        (47 Stat. 525), the Act of June 22, 1936 (49 Stat. 1757), the 
        Act of August 9, 1937 (50 Stat. 564), and the Act of May 9, 
        1938 (52 Stat. 291), as authorized by the Pueblo Lands Act of 
        June 7, 1924 (43 Stat. 636), and the Pueblo Lands Act of May 
        31, 1933 (48 Stat. 108), and for breach of Trust relating to 
        funds for water replacement appropriated by said Acts that 
        first accrued before the date of enactment of this Act;
          (4) all claims against the United States, its agencies, or 
        employees relating to the pending litigation of claims relating 
        to the Pueblos' water rights in the Aamodt Case; and
          (5) all claims against the United States, its agencies, or 
        employees relating to the negotiation, Execution or the 
        adoption of the Settlement Agreement, exhibits thereto, the 
        Partial Final Decree, the Final Decree, or this Act.
  (c) Reservation of Rights and Retention of Claims.--Notwithstanding 
the waivers and releases authorized in this Act, the Pueblos on behalf 
of themselves and their members and the United States acting in its 
capacity as trustee for the Pueblos retain.--
          (1) all claims for enforcement of the Settlement Agreement, 
        the Cost-Sharing and System Integration Agreement, the Final 
        Decree, including the Partial Final Decree, the San Juan-Chama 
        Project contract between the Pueblos and the United States or 
        this Act;
          (2) all rights to use and protect water rights acquired after 
        the date of enactment of this Act;
          (3) all rights to use and protect water rights acquired 
        pursuant to state law to the extent not inconsistent with the 
        Partial Final Decree, Final Decree, and the Settlement 
        Agreement;
          (4) all claims against persons other than Parties to the 
        Settlement Agreement for damages, losses or injuries to water 
        rights or claims of interference with, diversion or taking of 
        water (including claims for injury to lands resulting from such 
        damages, losses, injuries, interference with, diversion, or 
        taking of water) within the Pojoaque Basin arising out of 
        activities occurring outside the Pojoaque Basin;
          (5) all claims relating to activities affecting the quality 
        of water including any claims the Pueblos may have under the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (42 U.S.C. 9601 et seq.) (including 
        claims for damages to natural resources), the Safe Drinking 
        Water Act (42 U.S.C. 300f et seq.), the Federal Water Pollution 
        Control Act (33 U.S.C. 1251 et seq.), and the regulations 
        implementing those laws;
          (6) all claims against the United States relating to damages, 
        losses, or injuries to land or natural resources not due to 
        loss of water or water rights (including hunting, fishing, 
        gathering or cultural rights);
          (7) all claims for water rights from water sources outside 
        the Pojoaque Basin for land outside the Pojoaque Basin owned by 
        a Pueblo or held by the United States for the benefit of any of 
        the Pueblos; and
          (8) all rights, remedies, privileges, immunities, powers and 
        claims not specifically waived and released pursuant to this 
        Act or the Settlement Agreement.
  (d) Effect of Section.--Nothing in the Settlement Agreement or this 
Act--
          (1) affects the ability of the United States acting in its 
        sovereign capacity to take actions authorized by law, including 
        any laws relating to health, safety, or the environment, 
        including the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
        seq.), the Safe Drinking Water Act (42 U.S.C. 300f et seq.), 
        the Federal Water Pollution Control Act (33 U.S.C. 1251 et 
        seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.), 
        and the regulations implementing those laws;
          (2) affects the ability of the United States to take actions 
        acting in its capacity as trustee for any other Indian tribe or 
        allottee; or
          (3) confers jurisdiction on any State court to--
                  (A) interpret Federal law regarding health, safety, 
                or the environment or determine the duties of the 
                United States or other parties pursuant to such Federal 
                law; or
                  (B) conduct judicial review of Federal agency action;
  (e) Tolling of Claims.--
          (1) In general.--Each applicable period of limitation and 
        time-based equitable defense relating to a claim described in 
        this section shall be tolled for the period beginning on the 
        date of enactment of this Act and ending on June 30, 2021.
          (2) Effect of subparagraph.--Nothing in this subsection 
        revives any claim or tolls any period of limitation or time-
        based equitable defense that expired before the date of 
        enactment of this Act.
          (3) Limitation.--Nothing in this section precludes the 
        tolling of any period of limitations or any time-based 
        equitable defense under any other applicable law.

SEC. 205. EFFECT.

  Nothing in this Act or the Settlement Agreement affects the land and 
water rights, claims, or entitlements to water of any Indian tribe, 
pueblo, or community other than the Pueblos.

                          PURPOSE OF THE BILL

    The purpose of H.R. 3342 is to authorize the Secretary of 
the Interior, acting through the Commissioner of Reclamation, 
to develop water infrastructure in the Rio Grande Basin, and to 
approve the settlement of the water rights claims of the 
Pueblos of Nambe, Pojoaque, San Ildefonso, and Tesuque.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Aamodt water rights claims litigation (State of New 
Mexico, ex rel. State Engineer v. Aamodt, No. 66 CV 6639 
(D.N.M.)) was filed in 1966, making it 43 years old in 2009. 
The litigation involves more than 2,500 defendants. A 
comprehensive Settlement Agreement was signed by the State of 
New Mexico and affected parties in May 2006. The Settlement 
Agreement preserves and respects existing non-Pueblo water uses 
while acknowledging that the Pueblos have a historic water 
right that pre-dates non-pueblo water rights. The core of the 
agreement incorporates the Pueblos' commitment to abstain from 
making water priority calls against non-Pueblo users provided 
that the non-Pueblo users agree to specific options outlined in 
the Settlement Agreement. These commitments, by both the pueblo 
and non-pueblo entities, resulted from extensive negotiations 
and discussions. Independently and concurrently, the Federal 
Indian Water Settlement Team negotiated the technical aspects 
of the Settlement Agreement.
    The Nambe, Pojoaque, San Ildefonso and Tesuque Pueblos 
(``Four Pueblos'') are located in the Pojoaque River Basin 
(``Basin''), a tributary of the Rio Grande in northern New 
Mexico. The Basin is largely rural and agricultural, although 
residential development is increasing. Sources of employment 
include the Los Alamos National Laboratory, businesses in the 
City of Santa Fe, and increasingly the Pueblos or their 
commercial enterprises. The Pueblo of Pojoaque is the 
commercial hub of the Basin and commercial development along 
the major highway in the Basin is growing.
    H.R. 3342 would ratify the Settlement Agreement and 
authorize the Secretary of the Interior, acting through the 
Bureau of Reclamation, to plan, design and construct a Regional 
Water System that would divert and distribute water to the Four 
Pueblos and to the Santa Fe County Water Utility. The Regional 
Water System would the benefit of the County's non-pueblo and 
pueblo residents. The Pueblos and Santa Fe County would jointly 
operate the Regional Water System through the formation of a 
Regional Water Authority. The Regional Water System would 
provide 60 percent of its capacity and water to the Four 
Pueblos, with the remaining 40 percent of the water and 
capacity provided to and maintained by the Santa Fe County 
Water Utility.
    The Settlement Agreement quantifies the water rights for 
the Four Pueblos, summarized in Table One, below. The 
Settlement Agreement requires the United States to provide 
2,500 acre-feet per year (AFY) of imported water for Pueblo use 
through the System.

                            TABLE ONE: QUANTIFICATION SUMMARY OF PUEBLO WATER RIGHTS
----------------------------------------------------------------------------------------------------------------
         Water Rights (AFY)                Pojoaque            Nambe          San Ildefonso         Tesuque
----------------------------------------------------------------------------------------------------------------
First priority rights...............                236              1,459              1,246                719
Reserved water......................                  0                302                482                  0
    Total...........................           1,217.25              2,267           1,757.07           1,225.25
----------------------------------------------------------------------------------------------------------------

                            COMMITTEE ACTION

    H.R. 3342 was introduced on July 24, 2009 by Representative 
Ben Ray Lujan (D-NM). The bill was referred to the Committee on 
Natural Resources, and within the Committee to the Subcommittee 
on Water and Power. On September 9, 2009, the Subcommittee held 
a legislative hearing on the bill.
    On September 30, 2009, the Subcommittee was discharged from 
the further consideration of H.R. 3342 and the full Natural 
Resources Committee met to consider the bill. Subcommittee 
Chair Grace F. Napolitano (D-CA) offered an amendment in the 
nature of a substitute that in large part responded to concerns 
raised by the Department of the Interior and that addressed a 
majority of the Administration's concerns, including language 
limiting total construction costs. The amendment in the nature 
of a substitute was adopted by voice vote. The bill, as 
amended, was then ordered favorably reported to the House of 
Representatives by voice vote.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title; table of contents

    Section 1 provides that this Act may be cited as the 
``Aamodt Litigation Settlement Act,'' and provides the table of 
contents.

Section 2. Definitions

    Section 2 provides definitions for terms used in the Act.

           TITLE I--THE POJOAQUE BASIN REGIONAL WATER SYSTEM


Section 101. Authorization of regional water system

    Subsection 101(a) authorizes the Secretary of the Interior, 
acting through the Commissioner of Reclamation, to assist in 
the planning, design, and construction of the Regional Water 
System. Subsection 101(a) also describes the Regional Water 
System components and construction requirements.
    Subsection 101(b) directs the Secretary to issue a final 
project design with conditions, within 90 days of completion of 
the environmental compliance described in Section 106. This 
final project design must be consistent with the engineering 
report as defined in this Act (``Engineering Report'') and 
include a description of any Pueblo Water Facilities.
    Subsection 101(c) requires the Four Pueblos to consent to 
any easements or rights-of-way that are necessary for the 
construction of the Regional Water System at no cost to the 
United States. Section 101(c)(1) also requires the State of New 
Mexico (``the State'') or Santa Fe County to provide easements 
or rights-of-way for the construction of the Regional Water 
System at no cost to the United States. To the extent that 
additional lands or interests in land are necessary for the 
construction of the Regional Water System, section 101(c)(1) 
requires the Secretary to acquire those lands or interests in 
land. Section 101(c)(2) prohibits the Secretary from condemning 
water rights for the purpose of the Regional Water System.
    Subsection 101(d) lists the conditions necessary to begin 
construction.
    Subsection 101(e) provides that the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et 
seq.) does not apply to the design and construction of the 
Regional Water System.
    Subsection 101(f) provides that expenditures by the 
Secretary to construct the Pueblos Water Facilities shall not 
exceed $106.4 million, indexed to October 1, 2006 dollars. The 
costs of construction of the Pueblo Water Facilities shall not 
be reimbursable to the United States. The subsection further 
provides that the costs of constructing the Santa Fe County 
Distribution System shall be at state and local expense.
    Subsection 101(g) provides that state and local capital 
obligations will be satisfied on payment of the state and local 
capital obligations as described in the Cost Sharing and System 
Integration Agreement.
    Subsection 101(h) provides that, once constructed, the 
Secretary will convey to each Pueblo that portion of the Pueblo 
Water Facility that is located within the boundaries of that 
Pueblo, and will convey to the County the County Distribution 
System, once conditions are met for conveyance. This subsection 
also describes the liability of the United States upon 
conveyance of the facilities.

Section 102. Operating agreement

    Section 102 requires the Pueblos and the County to submit 
to the Secretary an executed Operating Agreement for the 
Regional Water System with the contents listed in this section, 
no later than 180 days after the date of completion of 
environmental compliance and permitting or the date of the 
issuance of a final project design. The Secretary must approve 
the Operating Agreement no later than 180 days of receipt if 
the Secretary determines that the Operating Agreement is 
consistent with this Act and associated agreements. This 
section further provides that the Operating Agreement can be 
authorized in phases if the Regional Water System is 
constructed in phases.

Section 103. Acquisition of Pueblo water supply for the regional water 
        system

    Subsection 103(a) directs the Secretary to acquire water 
rights to 302 acre-feet of Nambe reserved water and 1141 acre-
feet from water acquired by the County for water rights 
commonly referred to as ``Top of the World'' rights in the New 
Mexico v. Aamodt case. This subsection also directs the 
Secretary to make available 1079 acre-feet to the Four Pueblos 
pursuant to a contract entered into by the Four Pueblos and the 
Secretary in accordance with section 11 of the San Juan-Chama 
Project Act (P.L. 87-483), involving water rights held by the 
Secretary; and by applying to the New Mexico State Engineer, 
obtain approval to divert the water acquired and made available 
at the points of diversion for the Regional Water System, 
consistent with the Settlement Agreement and the Cost-Sharing 
and System Integration Agreements.
    Subsection 103(b) provides that the non-use of the water 
supply secured by the Secretary for the Four Pueblos under 
subsection 103(a) will not result in forfeiture, abandonment, 
relinquishment, or other loss.
    Subsection 103(c) directs the United States to hold the 
water rights secured under subsection 103(a) in trust for the 
Four Pueblos.
    Subsection 103(d) provides that the water made available 
pursuant to subsection 103(a)(2) must comply with the San Juan-
Chama Project Act, and provides that no preference will be 
given to the Pueblos in delivery or distribution of San Juan-
Chama water or in the management or operation and maintenance 
of the San Juan-Chama Project.
    Subsection 103(e) lists certain terms to which the 
contracted San Juan-Chama water will be subject.
    Subsection 103(f) states that the San Juan-Chama water 
secured for the Four Pueblos under subsection 103(a) is only to 
be used for the purposes in Settlement Agreement.
    Subsection 103(g) provides that compliance with subsections 
103(a) through (f) shall satisfy the Secretary's obligation to 
acquire and secure a water supply for the Four Pueblos, 
pursuant to the Settlement Agreement.
    Subsection 103(h) authorizes the Four Pueblos, Santa Fe 
County, or the Regional Water Authority to acquire more water 
rights, consistent with the Act and Settlement Agreement. It 
further provides that nothing in this Act amends or modifies 
the Pueblos' water rights as quantified in the Settlement 
Agreement.

Section 104. Delivery and allocation of Regional Water System capacity 
        and water

    Subsection 104(a) provides that the Regional Water System 
shall have the capacity to divert up to 4,000 acre-feet of 
consumptive use of water, as wellas water as well as the 
requisite peaking capacity described in the Engineering Report 
and the final project design. This subsection also allocates 
sufficient capacity to convey up to 2,500 acre-feet of 
consumptive use of water to the Four Pueblos and 1,500 acre-
feet of consumptive use of water capacity to convey to the 
County Water Utility. Water allocated to the Pueblos and the 
County under this subsection must be in accordance to this 
title, the Settlement Agreement and Operating Agreement.
    Subsection 104(b) directs the Regional Water Authority to 
deliver 2,500 acre-feet of water from the Regional Water System 
to the Four Pueblos and 1,500 acre-feet of water to the County. 
Water allocated to the Pueblo and the County under this 
subsection must be in accordance to this title, the Settlement 
Agreement and the Operating Agreement.
    Subsection 104(c) authorizes the Regional Water System to 
be used to provide for the use of return flow credits to allow 
for a full consumptive use of the allocated water and to convey 
water allocated to one of the Pueblos or the County Utility for 
the benefit of another Pueblo or the County Water Utility. This 
subsection also authorizes the use of unused capacity of the 
Regional Water System between the Pueblos or a Pueblo and the 
County Water Utility, with conditions.

Section 105. Aamodt Settlement Pueblos' Fund

    Subsection 105(a) establishes in the Treasury of the United 
States the ``Aamodt Settlement Pueblos' Fund'' consisting of 
funds made available under section 107(c) and any interest 
earned from investment of amounts in the Fund.
    Subsections 105(b) and105(c) directs the Secretary of the 
Interior to manage and invest the amounts in the Fund.
    Subsection 105(d) requires the Four Pueblos to submit to 
the Secretary for approval a tribal management plan outlining 
the proposed uses of the Fund. The Secretary of the Interior 
may take judicial or administrative action to ensure that any 
funds withdrawn under the approved tribal management plan are 
used in accordance with this Title. This subsection also 
provides that if a Pueblo or Pueblos opt to withdraw and manage 
all or part of the Fund's proceeds, neither the Secretary of 
the Interior nor the Secretary of the Treasury will be liable 
for the withdrawal or expenditure of the amounts withdrawn.
    Subsection 105(d) also requires the Four Pueblos to submit 
to the Secretary for approval an expenditure plan that would 
describe how portions of the Fund that are not withdrawn will 
be used. The Pueblos must submit an annual report that 
describes the expenditures from the Fund. Subsection 105(d)(6) 
prohibits amounts in the Fund from being distributed to any 
member of a Pueblo on a per capita basis. The United States is 
further entitled under this subsection to set off any funds 
expended or withdrawn from the amounts appropriated and with 
any interest accrued if the conditions listed in section 203 
are not met by September 15, 2017.

Section 106. Environmental compliance

    Section 106 directs the Secretary to comply with any and 
all environmental activities required by federal law including 
the National Environmental Policy Act of 1969 and the 
Endangered Species Act of 1973. The section further provides 
that nothing in this Act affects the outcome of any analysis 
conducted by the Secretary or any other federal official under 
the National Environmental Policy Act of 1969.

Section 107. Authorization of appropriations

    Subsection 107(a) authorizes to be appropriated to the 
Secretary for the planning, design, and construction of the 
Regional Water System and environmental compliance activities a 
total of $106,400,000 between Fiscal Years 2010 and 2022, as 
adjusted to account for increases in construction costs since 
October 1, 2007 as determined using applicable engineering cost 
indices. This section also establishes priorities for the use 
of these authorized funds, and provides that this funding shall 
not be available for construction unless the record of decision 
issued by the Secretary after completion of an environmental 
impact statement provides for a preferred alternative that is 
in substantial compliance with the proposed Regional Water 
System as defined in the Engineering Report.
    Subsection 107(b) authorizes to be appropriated $5,400,000 
to the Secretary for the acquisition of water rights pursuant 
to section 103(a)(1(B), adjusted according to the CPI Urban 
Index starting on January 1, 2011.
    Subsection 107(c) authorizes to be appropriated $15,000,000 
for the rehabilitation, improvement, operation, maintenance, 
and replacement of the agricultural delivery facilities, waste 
water systems, and other water-related infrastructure of the 
applicable Pueblo; $37,500,000 to assist the Pueblos in paying 
the Pueblos' share of the costs of operating, maintaining, and 
replacing the Pueblo Water Facilities and the Regional Water 
System; and $5,000,000 to the Pueblo of Nambe for the 
acquisition of Nambe reserved water rights pursuant to section 
103(a)(1)(A). This section further provides that the Secretary 
is authorized to and shall pay any operation, maintenance or 
replacement costs associated with the Pueblo Water Facilities 
or the Regional Water System up to an amount that does not 
exceed $5,000,0000, which is authorized to be appropriated to 
the Secretary.

        TITLE II--POJOAQUE BASIN INDIAN WATER RIGHTS SETTLEMENT


Section 201. Settlement Agreement and contract approval

    Subsection 201(a) authorizes, ratifies, and confirms the 
Settlement Agreement and the Cost-Sharing and System 
Integration Agreement, including any amendments necessary to 
make the Settlement Agreement and the Cost-Sharing and System 
Integration Agreement consistent with this Act.
    Subsection 201(b) directs the Secretary to execute the 
Settlement Agreement and the Cost-Sharing and System 
Integration Agreement, including any amendments necessary to 
make the Settlement Agreement and the Cost-Sharing System 
Integration Agreement consistent with this Act.
    Subsection 201(c) provides the conditions under which the 
Pueblos may enter into contracts to lease or exchange water or 
to forbear undertaking new or expanded water uses for water 
rights.
    Subsection 201(d) directs the Secretary to amend the 
contracts relating to the Nambe Falls Dam and Reservoir in 
accordance with the Settlement Agreement.

Section 202. Environmental compliance

    Section 202 provides that the Secretarial execution of the 
Settlement Agreement does not constitute a ``major Federal 
action'' under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.), and directs the Secretary to comply 
with any and all environmental activities required by federal 
law including the National Environmental Policy Act of 1969 and 
the Endangered Species Act of 1973.

Section 203. Conditions precedent and enforcement date

    Subsection 203(a) provides the conditions precedent and 
requires the Secretary to publish in the Federal Register a 
statement of finding that the conditions have been met by 
September 15, 2017, once the listed conditions are, in fact, 
satisfied.
    Subsections 203(b) and (f) provide that the agreement will 
be no longer effective, including waivers, if the conditions 
precedent listed in subsection 203(a) are not fulfilled by 
September 15, 2017, with certain exceptions. Funds appropriated 
under this Act but not expended will return immediately to the 
general fund of the United States Treasury.
    Subsection 203(c) provides that the Settlement Agreement 
shall become enforceable on the date that the United States 
District Court for the District of New Mexico enters a partial 
final decree and an Interim Administrative Order consistent 
with the Settlement Agreement.
    Subsection 203(d) provides that the waivers and releases 
executed pursuant to Section 204 will become effective on the 
date the Secretary publishes the notice in the Federal Register 
that the conditions precedent have been met.
    Subsection 203(e) provides criteria to determine whether 
the Regional Water System has been substantially completed, as 
follows: the infrastructure is substantially complete and has 
been constructed sufficiently to be capable of (A) diverting, 
treating, transmitting, and distributing a supply of 2,500 
acre-feet of water to the Pueblos; and (B) diverting, treating, 
and transmitting the quantity of water specified in the 
Engineering Report to the County Distribution System. This 
subsection also establishes a process under which the Pueblos 
retain the right to withdraw the waivers authorized under the 
settlement and trigger nullification of the entire settlement 
if the system is not substantially complete by June 30, 2021. 
Under this process, the Secretary of the Interior, subject to 
review under the Administrative Procedure Act, determines 
whether the system is substantially complete.

Section 204. Waivers and releases

    Section 204 requires the Pueblos to execute a waiver and 
release of: all past, present or future claims to surface and 
groundwater rights the Pueblos, or the U.S. on behalf of the 
Pueblos, could have asserted in the Aamodt case; all past, 
present or future claims for damages, losses, or injuries to 
water rights or claims of interference with, diversion, or 
taking of water for lands within the Pojoaque Basin that could 
have been asserted in the Aamodt case; their defenses in the 
Aamodt case to claims previously asserted by other parties in 
the Aamodt case; and, all pending and future inter se 
challenges against other parties to the Settlement Agreement.
    Section 204 also requires the Pueblos to execute similar 
waivers and releases of: (1) all causes of action against the 
U.S. arising out of past, present, or future claims for water 
rights that were asserted or could have been by the United 
States in the Aamodt case; (2) all past, present or future 
claims for damages, losses, or injuries to water, water rights, 
lands or natural resources due to the loss of water and water 
rights within the Pojoaque Basin that could have been asserted 
by the Pueblos against the United States in the Aamodt case; 
(3) all claims against the U.S. for an accounting of funds 
appropriated by various Acts; and (4) all claims arising out of 
the negotiation or adoption of the Settlement Agreement that 
the Pueblos may have against the United States.
    Section 204 further provides that notwithstanding the above 
waivers and releases, the Pueblos and the United States retain 
claims regarding water rights outside the Pojoaque Basin; all 
claims for the enforcement of the Settlement Agreement, the 
Final Decree or Act; all rights to use and protect water rights 
acquired pursuant to state law to the extent not inconsistent 
with the Settlement Agreement, the Partial Final Decree or the 
Final Decree; and all rights, remedies, privileges, immunities, 
powers, and claims not specifically waived and released 
pursuant to the Settlement Agreement or this Act.
    Section 204 also provides that applicable statutes of 
limitation will be tolled from the date of enactment of Act and 
end on the date of enforcement. It also provides that nothing 
in section 204 revives any claims or tolls any period of 
limitation that expired before the enactment of this Act.

Section 205. Effect

    Section 205 states that nothing in this Act or the 
Settlement Agreement affects any land or water rights claims or 
entitlements to water of any Indian tribe, pueblo, band or 
community other than the Pueblos of Nambe, Pojoaque, San 
Ildefonso, and Tesuque.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to authorize the Secretary of the 
Interior, acting through the Commissioner of Reclamation, to 
develop water infrastructure in the Rio Grande Basin, and to 
approve the settlement of the water rights claims of the 
Pueblos of Nambe, Pojoaque, San Ildefonso, and Tesuque.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 3342--Aamodt Litigation Settlement Act

    Summary: H.R. 3342 would approve and ratify a settlement 
agreement between four Pueblos and the state of New Mexico. The 
agreement would settle the Pueblos' claims to water rights in 
the state. As part of the settlement agreement, the bill would 
authorize the appropriation of funds to construct a regional 
water system in the Rio Grande River Basin. The bill also would 
create a trust fund for the Pueblos to maintain that system. In 
addition, the bill would authorize appropriations for the 
Department of the Interior (DOI) to operate and maintain 
certain portions of the system until they are conveyed to the 
Pueblos. Finally, the bill would authorize appropriations for 
the Secretary of the Interior to acquire certain water rights 
on behalf of the Pueblos.
    Based on information from DOI and assuming appropriation of 
the authorized and necessary amounts, CBO estimates that 
implementing H.R. 3342 would cost $71 million over the 2010-
2014 period and $128 million after 2014. Enacting H.R. 3342 
would not affect direct spending or revenues.
    H.R. 3342 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments.
    If the Secretary of the Interior acquires property through 
eminent domain in order to construct the regional water system 
under the Aamodt litigation settlement, H.R. 3342 would impose 
a private-sector mandate as defined in UMRA. Based on 
information from DOI, CBO expects that the Secretary would use 
that authority sparingly and that the cost of the mandate, if 
imposed, would fall well below the annual threshold established 
in UMRA for private-sector mandates ($139 million in 2009, 
adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3342 is shown in the following table. 
The costs of this legislation fall within budget functions 300 
(natural resources and environment) and 450 (community and 
regional development).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2010    2011    2012    2013    2014   2010-2014
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Regional Water System:
    Estimated Authorization Level............................       0       0      10      25      35        70
    Estimated Outlays........................................       0       0       6      18      29        53
Settlement Trust Fund:
    Estimated Authorization Level............................       0       0       3       3       4        10
    Estimated Outlays........................................       0       0       3       3       4        10
DOI Operation and Maintenance Costs:
    Estimated Authorization Level............................       0       0       1       1       1         3
    Estimated Outlays........................................       0       0       1       1       1         3
Water Rights:
    Authorization Level......................................       5       0       0       0       0         5
    Estimated Outlays........................................       2       2       1       0       0         5
    Total Changes:
        Estimated Authorization Level........................       5       0      14      29      40        88
        Estimated Outlays....................................       2       2      11      22      34       71
----------------------------------------------------------------------------------------------------------------
Note: DOI = Department of the Interior.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3342 will be enacted early in fiscal year 2010 and that the 
necessary amounts will be appropriated for each year. 
Enforcement of the settlement agreement depends on the 
completion of a number of actions by federal, state, local, and 
tribal governments. Based on information from DOI, CBO expects 
that those actions will be completed by fiscal year 2017. Cost 
estimates for the authorized water projects are based on 
information from DOI and on historical spending patterns for 
similar activities.
    In 2006, four Pueblos in New Mexico (Nambe, Pojoaque, San 
Ildefonso, and Tesuque) and the city and county of Santa Fe, 
New Mexico, signed a settlement agreement resolving a water 
rights dispute (known as the Aamodt case) in the Rio Grande 
River Basin. The United States would become party to that 
agreement upon enactment of H.R. 3342, provided that certain 
conditions are met. Among other actions, the Secretary of the 
Interior would have to publish a statement of findings in the 
Federal Register indicating that all parties have executed the 
agreement; the U.S. district court would have to issue a 
judgment and final decree concerning the agreement; Congress 
would have to appropriate certain amounts specified in the bill 
(about $68 million) to carry out part of the agreement; and New 
Mexico would have to appropriate funds for the Pueblos.
    Based on information from DOI and assuming appropriation of 
the necessary amounts, CBO estimates that implementing the 
legislation would cost $71 million over the 2010-2014 period 
and $128 million after 2014. Should the Secretary not publish 
the required statement of findings by September 15, 2017, 
verifying that all conditions necessary to execute the 
agreement have been met, the agreement would not take effect, 
and no federal funds could be spent after that date.

Regional water system

    Section 101 would authorize the Secretary of the Interior, 
acting through the Commissioner of Reclamation, to construct a 
regional water system in the Rio Grande River Basin in New 
Mexico. The system would divert water from the Rio Grande River 
to certain Pueblos and to the Santa Fe County Water Utility. 
The state of New Mexico and Santa Fe County would be required 
to pay a portion of the system's cost. Once construction of 
that system is complete, the Secretary would be required to 
convey components of the system to state, local, and tribal 
entities. Assuming appropriation of the necessary amounts, CBO 
estimates that constructing the water system would cost $53 
million over the 2010-2014 period and an additional $75 million 
after 2014.

Settlement Trust Fund

    Section 105 would authorize the appropriation of $57.5 
million to be deposited into the Aamodt Settlement Pueblos' 
Fund. A portion of that amount would be adjusted for increases 
in construction costs. Once certain conditions have been met, 
the Secretary of the Interior would be required to invest 
amounts in the fund in U.S. Treasury obligations. The fund 
would be used by the Pueblos to operate and maintain certain 
portions of the regional water system owned by the Pueblos.
    Amounts in the fund could not be spent by the Pueblos until 
certain conditions specified in the bill are met. About 35 
percent of the funds would be available for expenditure after 
the United States District Court approves the settlement 
agreement, which we expect would occur in 2012. Those funds 
would be used by the Pueblos to acquire certain water rights 
and to operate and maintain certain water systems. CBO expects 
that the Pueblos would spend between $3 million and $5 million 
a year over the 2012-2016 period for those purposes.
    The remaining 65 percent of the funds could be spent when 
the Secretary determines that certain portions of the new 
regional water system are substantially complete. Information 
from DOI suggests that the system would be substantially 
complete by the end of 2017. At that time, we expect that the 
settlement agreement would be executed, the remaining funds 
would be available to the Pueblos, and the budget would record 
an expenditure of $42 million. In total, CBO estimates that 
implementing this provision would cost $10 million over the 
2010-2014 period and $51 million after 2014.
    Payments to certain tribal trust funds that are held and 
managed in a fiduciary capacity by the federal government on 
behalf of Indian tribes are treated as payments to a nonfederal 
entity. As a result, CBO expects that the entire amount 
deposited into the Aamodt Settlement Pueblos' Fund (excluding 
amounts made available for certain Pueblo water systems) would 
be recorded as an outlay in 2017 when the funds could be spent 
by the Pueblos. Subsequently, any use of such funds would have 
no effect on the federal budget. Because H.R. 3342 directs the 
Secretary to invest amounts in the fund only after those 
amounts are available to the Pueblos, CBO expects that no 
interest would accrue on the amounts in the fund until 2017 
when federal payments could first be spent by the Pueblos.

DOI operation and maintenance costs

    Section 107 would authorize the appropriation of $5 million 
for DOI to pay operation and maintenance costs associated with 
certain portions of the regional water system prior to their 
conveyance to the Pueblos. Based on information from DOI, CBO 
expects that land and infrastructure associated with those 
projects would be conveyed to the Pueblos in 2017. Assuming 
appropriation of the authorized amounts, CBO estimates that 
operating and maintaining those projects would cost about $1 
million a year over the 2012-2016 period.

Water rights

    Section 103 would authorize the appropriation of $5.4 
million for the acquisition of water rights pursuant to the 
settlement agreement. Those funds would be used by the 
Secretary of the Interior to acquire, on behalf of the Pueblos, 
a specified amount of water from Santa Fe County. Assuming 
appropriation of the authorized amounts, CBO estimates that 
acquiring those water rights would cost $5.4 million over the 
2010-2012 period.
    Estimated impact on state, local, and tribal governments: 
H.R. 3342 contains no intergovernmental mandates as defined in 
UMRA. The bill would authorize water projects and provide other 
assistance that would benefit state, local, and tribal 
governments. Any costs to those governments would be incurred 
voluntarily as a condition of federal assistance.
    Estimated impact on the private sector: If the Secretary of 
the Interior acquires property through eminent domain in order 
to construct the regional water system under the proposed 
settlement, the bill would impose a private-sector mandate as 
defined in UMRA. The cost of the mandate would be the fair 
market value of the property and any expenses incurred by the 
owners in transferring that property to the federal government. 
Based on information from the DOI, CBO expects that only a few 
small tracts of private land may need to be acquired and that 
the value of that land is small. CBO therefore expects that the 
cost of the mandate, if imposed, would fall well below the 
annual threshold established in UMRA for private-sector 
mandates ($139 million in 2009, adjusted annually for 
inflation).
    Previous CBO estimate: On October 13, 2009, CBO transmitted 
a cost estimate for S. 1105, the Aamodt Litigation Settlement 
Act, as ordered reported by the Senate Committee on Indian 
Affairs on September 10, 2009. The House and Senate versions of 
the legislation are similar, and our cost estimates are the 
same.
    Estimate prepared by: Federal Costs: Jeff LaFave; Impact on 
State, Local, and Tribal Governments: Melissa Merrell; Impact 
on the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                           EARMARK STATEMENT

    H.R. 3342 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                            ADDITIONAL VIEWS

    The Aamodt Litigation Settlement Act (H.R. 3342) would 
quantify the Indian water rights of the Pueblos of Nambe, 
Pojoaque, San Ildefonso, and Tesuque (``Four Pueblos'') and end 
43 years of Federal litigation involving over 2,500 defendants 
(State of New Mexico, ex rel. State Engineer v. Aamodt). The 
Settlement will also bring long-term certainty and stability to 
Pueblo and non-Pueblo water users in the Pojoaque Basin.
    H.R. 3342 would ratify the comprehensive settlement 
agreement and related cost-sharing agreements, entered into by 
the State of New Mexico, the Four Pueblos, other local 
governments, and individual water users dated May 2006. The 
settlement agreement evolved out of the efforts of the Federal 
Indian Water Settlement Negotiations Team, which included the 
Department of the Interior and the Department of Justice.
    Similar to the Taos Pueblo Settlement Act, H.R. 3342 
reflects significant work, time and diligent efforts by the 
Four Pueblos and their local, state and Federal partners. This 
settlement agreement is consistent with the Administration's 
views of supporting negotiations as an inherent responsibility 
as Federal trustee to Indian tribes and their members.
    Included with these views is a November 4, 2009, letter 
submitted by the Northern Pueblos Tributary Association 
(``Association'') in response to the October 22, 2009, letter 
to the Subcommittee on Water and Power by Commissioner Michael 
L. Connor regarding H.R. 3342.
    Responding to the Commissioner's concern that unanticipated 
cost increases and the legislation's budget authorization, the 
Association stated that the cost-sharing agreement should be 
executed as a condition of beginning construction--a 
requirement already included in H.R. 3342 at section 101(d)(1).
    The Commissioner also suggested that Bureau of Reclamation 
be required to consult with the Four Pueblos and the other non-
Federal parties, a requirement the Association and the 
Committee believe is already incumbent on the Bureau. Further, 
as the Association points out, this consultation will present 
the best opportunity to discuss any change in the allocation of 
cost overruns which may arise.
    The Association agreed to language changes proposed by the 
Commissioner as regards access to San Juan Chama project water 
to fulfill the terms of the settlement by inserting the word 
``construction'' before the word ``cost'' in Section 
103(e)(1(C), as well as a clarification of the Secretary's 
authorization to pay operation, maintenance, and replacement 
costs for the regional water systems in Section 107(c).
    In summary, the Aamodt Litigation Settlement Act resolves 
long-standing water-related claims by the Four Pueblos, reduces 
the Federal government's probable legal exposure regarding 
Federally-reserved water rights, and saves the American 
taxpayer significant financial resources compared to the 
probable cost to the United States were the Four Pueblos Indian 
water rights claims brought to trial. In settling these water 
rights claims, the non-Pueblo residents in the Pojoaque Basin 
will acquire a stable source of water for the foreseeable 
future and a water distribution system. This settlement will 
result in quantifying water rights, protecting water rights, 
and as a result, providing water certainty in northern New 
Mexico.
    Enclosure (1).
                                   Grace F. Napolitano.
                                   Martin Heinrich.
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                          ADDITIONAL VIEWS OF 
                      THE HONORABLE TOM McCLINTOCK

    On September 30, 2009, the Full Natural Resources Committee 
marked up H.R. 3342, the Aamodt Litigation Settlement Act. This 
bill, sponsored by Congressman Ben Ray Lujan (D-NM), authorizes 
the Secretary of the Interior to approve the settlement of 
water rights claims of five Pueblo Indian Tribes located in the 
Pojoaque River Basin, New Mexico.
    This bill rightly attempts to resolve longstanding Indian 
water rights claims, but Congress lacks sufficient information 
to assess whether the $199 million authorized in this 
legislation is appropriate. Therefore, as Ranking Republican of 
the House Water and Power Subcommittee, I have serious fiscal 
concerns with this well-intended bill.
    Another area of concern I have is that this legislation 
does not have support from all non-Indian water users. The 
Pojoaque Basin Water Alliance has raised some very serious 
concerns regarding the protection of private property rights 
and the proper governing structure set forth in the 
legislation. While some of these concerns were raised during a 
legislative hearing held on H.R. 3342, it is still important to 
acknowledge that support for H.R. 3342 is not unanimous.
    It is important that Congress play a role in settling 
Indian water rights claims, some of which comprise the oldest 
standing litigation in the federal court system. Settling legal 
claims not only resolves litigation but also can help establish 
water supply certainty for water users on and off-reservations.
    However, Congress still must answer key questions when it 
considers these and other settlements and should not be just a 
rubber stamp. For example, one of the most important questions 
involving a settlement--especially when American taxpayer 
dollars will be used--is whether resolving the litigation will 
be advantageous to the federal government compared to its 
liability under current law. That question has not been 
answered for H.R. 3342.
    If Congress were the board of directors of a private 
corporation deciding whether to approve a negotiated legal 
settlement, we would be guilty of breaching our fiduciary 
responsibility to stockholders if we made that decision without 
consulting legal counsel regarding the company's financial 
exposure in litigation should the settlement not be accepted.
    Since this question remains unanswered, Congress is forced 
to be the arbitrator between sides involved in the litigation. 
This is a role Congress should not be forced to assume without 
sufficient information. Given the astounding fact that the 
current Administration has expressed general fiscal and other 
reservations about this bill, Congress should ask for and 
deserves answers. As part of this, Department of the Interior 
was asked for its views on the bill as passed by the Natural 
Resources Committee. The Department's response to Congress, 
which is attached, clearly indicates there are numerous issues 
that still need to be resolved.
    I also sent a letter on September 25, 2009, to the 
Department of Justice asking for opinions on this legislation. 
The letter specifically asks the Attorney General to provide 
his view on the ``likelihood that the recipients of water 
rights and funds transferred by these settlements would prevail 
on the merits of their claims and whether these settlement 
amounts represent a net benefit to the taxpayers as compared to 
the consequences and costs of litigation.'' To date, I have not 
received a response to this letter, and I fundamentally believe 
that Congress needs this and other answers before moving 
forward with spending nearly 200 million American taxpayer 
dollars.
    My request is based on precedent. In an appearance before 
the Natural Resources Committee on legislation resolving 
Colville Indian claims, a Clinton Administration Justice 
Department official testified in 1994, ``[T]he Federal 
government is not that well postured for a victory on this 
claim which has been pending for over 40 years. Absent the 
settlement, we could well litigate it for another ten years and 
the outcome could easily be a significant cost to the taxpayers 
and the public.'' This testimony was very helpful in moving 
that legislation forward. According to the Congressional 
Research Service, Justice Department officials have testified 
about additional settlements pending before Congress, so there 
is no reason why this Congress should act without similar 
information on this bill.
    Without these transparent answers and the amount of 
taxpayer fuding in this bill--estimated by the Congressional 
Budget Office as $71 million in 2010-2014 and $128 million 
after 2014--I have serious concerns with the way this Congress 
and the Obama Administration are moving forward on H.R. 3342, 
and on Indian water rights settlement bills in general.

                                   Tom McClintock.
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