[House Report 114-255]
[From the U.S. Government Publishing Office]


114th Congress    }                                   {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                   {      114-255

======================================================================



 
      NEW MEXICO NAVAJO WATER SETTLEMENT TECHNICAL CORRECTIONS ACT

                                _______
                                

 September 8, 2015.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Bishop of Utah, from the Committee on Natural Resources, submitted 
                             the following

                              R E P O R T

                         [To accompany S. 501]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (S. 501) to make technical corrections to the Navajo 
water rights settlement in the State of New Mexico, and for 
other purposes, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                          Purpose of the Bill

    The purpose of S. 501 is to make technical corrections to 
the Navajo water rights settlement in the State of New Mexico.

                  Background and Need for Legislation

    S. 501 makes technical corrections and adds some federal 
responsibilities to five subsections related to Indian water 
projects in New Mexico originally authorized in Title X of 
Public Law 111-11. The Water, Power and Oceans Subcommittee 
held a hearing on an identical House bill (H.R. 1406) on June 
25, 2015.
    S. 501 specifically corrects misspellings, citations, and 
makes other technical corrections. Section 2 of the bill adds 
``design and planning'' activities to the ``construction and 
rehabilitation'' financial responsibilities of the federal 
government for well drilling in certain locations. The bill 
also rearranges spending ceilings for cultural resource 
assessments and fish and wildlife facilities affiliated with 
the water infrastructure.

                            Committee Action

    S. 501 was introduced on February 12, 2015, by Senator Tom 
Udall (D-NM). It passed the Senate without amendment by 
unanimous consent on May 21, 2015. The bill was referred to the 
Committee on Natural Resources, and within the Committee to the 
Subcommittee on Water, Power and Oceans. On July 8, 2015, the 
Natural Resources Committee met to consider the bill. The 
Subcommittee was discharged by unanimous consent. No amendments 
were offered and the bill was ordered favorably reported by 
unanimous consent on July 9, 2015.

            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.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(1) 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)(2)(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. 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:

S. 501--New Mexico Navajo Water Settlement Technical Corrections Act

    S. 501 would amend the Navajo Settlement Act to authorize 
the Bureau of Reclamation (bureau) to participate in planning 
and designing groundwater well projects in the Navajo Nation in 
New Mexico. The bill also would clarify the intent of certain 
provisions of that act and shift some amounts of authorized 
spending among authorized activities. Based on information from 
the bureau and the Bureau of Indian Affairs (BIA), CBO 
estimates that implementing the legislation would not have a 
significant effect on the federal budget. Because enacting S. 
501 would not affect revenues or direct spending, pay-as-you-go 
procedures do not apply.
    Under current law, the bureau is authorized to construct 
and rehabilitate groundwater wells and related pipeline 
facilities for municipal and domestic use by the Navajo Nation. 
The bureau is also authorized to participate in the planning 
and design of groundwater wells, subject to funding from local 
sponsors. S. 501 would clarify the bureau's authority to 
allocate federal resources to planning and design of such 
projects. Based on information from the bureau and the BIA, 
those activities would be accommodated under the existing 
authorization ceiling for those projects.
    S. 501 also would clarify that the Navajo Nation can take 
delivery of non-project water but is responsible for any 
associated operation and maintenance costs. Finally, S. 501 
would reallocate a portion of spending for fish and wildlife 
facilities to the preservation of archaeological resources near 
water projects. CBO estimates that those changes would have no 
significant effect on federal spending.
    S. 501 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    On March 19, 2015, CBO transmitted a cost estimate for S. 
501, the New Mexico Navajo Water Settlement Technical 
Corrections Act, as ordered reported by the Senate Committee on 
Indian Affairs on February 25, 2015. The two versions of the 
legislation are identical, and the CBO cost estimates are the 
same.
    The CBO staff contact for this estimate is Aurora Swanson. 
The estimate was approved by Theresa Gullo, Assistant Director 
for Budget Analysis.
    2. Section 308(a) of 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. According to the 
Congressional Budget Office, enactment of this bill ``would not 
have a significant effect on the federal budget''.
    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 make technical corrections to the 
Navajo water rights settlement in the State of New Mexico.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                       Compliance With H. Res. 5

    Directed Rule Making. The Chairman does not believe that 
this bill directs any executive branch official to conduct any 
specific rule-making proceedings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                Preemption of State, Local or Tribal Law

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

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

               OMNIBUS PUBLIC LAND MANAGEMENT ACT OF 2009



           *       *       *       *       *       *       *
 TITLE X--WATER SETTLEMENTS SUBTITLE A--SAN JOAQUIN RIVER RESTORATION 
SETTLEMENT

           *       *       *       *       *       *       *


Subtitle B--Northwestern New Mexico Rural Water Projects

           *       *       *       *       *       *       *


SEC. 10302. DEFINITIONS.

  In this subtitle:
          (1) Aamodt adjudication.--The term ``Aamodt 
        adjudication'' means the general stream adjudication 
        that is the subject of 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) Abeyta adjudication.--The term ``Abeyta 
        adjudication'' means the general stream adjudication 
        that is the subject of the civil actions entitled 
        ``State of New Mexico v. Abeyta and State of New Mexico 
        v. [Arrellano] Arellano'', Civil Nos. 7896-BB (D.N.M) 
        and 7939-BB (D.N.M.) (consolidated).
          (3) Acre-feet.--The term ``acre-feet'' means acre-
        feet per year.
          (4) Agreement.--The term ``Agreement'' means the 
        agreement among the State of New Mexico, the Nation, 
        and the United States setting forth a stipulated and 
        binding agreement signed by the State of New Mexico and 
        the Nation on April 19, 2005.
          (5) Allottee.--The term ``allottee'' means a person 
        that holds a beneficial real property interest in a 
        Navajo allotment that--
                  (A) is located within the Navajo Reservation 
                or the State of New Mexico;
                  (B) is held in trust by the United States; 
                and
                  (C) was originally granted to an individual 
                member of the Nation by public land order or 
                otherwise.
          (6) Animas-la plata project.--The term ``Animas-La 
        Plata Project'' has the meaning given the term in 
        section 3 of Public Law 100-585 (102 Stat. 2973), 
        including Ridges Basin Dam, Lake Nighthorse, the Navajo 
        Nation Municipal Pipeline, and any other features or 
        modifications made pursuant to the Colorado Ute 
        Settlement Act Amendments of 2000 (Public Law 106-554; 
        114 Stat. 2763A-258).
          (7) City.--The term ``City'' means the city of 
        Gallup, New Mexico, or a designee of the City, with 
        authority to provide water to the Gallup, New Mexico 
        service area.
          (8) Colorado river compact.--The term ``Colorado 
        River Compact'' means the Colorado River Compact of 
        1922 as approved by Congress in the Act of December 21, 
        1928 (45 Stat. 1057) and by the Presidential 
        Proclamation of June 25, 1929 (46 Stat. 3000).
          (9) Colorado river system.--The term ``Colorado River 
        System'' has the same meaning given the term in Article 
        II(a) of the Colorado River Compact.
          (10) Compact.--The term ``Compact'' means the Upper 
        Colorado River Basin Compact as consented to by the Act 
        of April 6, 1949 (63 Stat. 31, chapter 48).
          (11) Contract.--The term ``Contract'' means the 
        contract between the United States and the Nation 
        setting forth certain commitments, rights, and 
        obligations of the United States and the Nation, as 
        described in paragraph 6.0 of the Agreement.
          (12) Depletion.--The term ``depletion'' means the 
        depletion of the flow of the San Juan River stream 
        system in the State of New Mexico by a particular use 
        of water (including any depletion incident to the use) 
        and represents the diversion from the stream system by 
        the use, less return flows to the stream system from 
        the use.
          (13) Draft impact statement.--The term ``Draft Impact 
        Statement'' means the draft environmental impact 
        statement prepared by the Bureau of Reclamation for the 
        Project dated March 2007.
          (14) Fund.--The term ``Fund'' means the Reclamation 
        Waters Settlements Fund established by section 
        10501(a).
          (15) Hydrologic determination.--The term ``hydrologic 
        determination'' means the hydrologic determination 
        entitled ``Water Availability from Navajo Reservoir and 
        the Upper Colorado River Basin for Use in New Mexico,'' 
        prepared by the Bureau of Reclamation pursuant to 
        section 11 of the Act of June 13, 1962 (Public Law 87-
        483; 76 Stat. 99), and dated May 23, 2007.
          (16) Lower basin.--The term ``Lower Basin'' has the 
        same meaning given the term in Article II(g) of the 
        Colorado River Compact.
          (17) Nation.--The term ``Nation'' means the Navajo 
        Nation, a body politic and federally-recognized Indian 
        nation as provided for in section 101(2) of the 
        Federally Recognized Indian Tribe List of 1994 (25 
        U.S.C. 497a(2)), also known variously as the ``Navajo 
        Tribe,'' the ``Navajo Tribe of Arizona, New Mexico & 
        Utah,'' and the ``Navajo Tribe of Indians'' and other 
        similar names, and includes all bands of Navajo Indians 
        and chapters of the Navajo Nation.
          (18) Navajo-gallup water supply project; project.--
        The term ``Navajo-Gallup Water Supply Project'' or 
        ``Project'' means the Navajo-Gallup Water Supply 
        Project authorized under section 10602(a), as described 
        as the preferred alternative in the Draft Impact 
        Statement.
          (19) Navajo Indian Irrigation Project.--The term 
        ``Navajo Indian Irrigation Project'' means the Navajo 
        Indian irrigation project authorized by section 2 of 
        Public Law 87-483 (76 Stat. 96).
          (20) Navajo reservoir.--The term ``Navajo Reservoir'' 
        means the reservoir created by the impoundment of the 
        San Juan River at Navajo Dam, as authorized by the Act 
        of April 11, 1956 (commonly known as the ``Colorado 
        River Storage Project Act'') (43 U.S.C. 620 et seq.).
          (21) Navajo nation municipal pipeline; pipeline.--The 
        term ``Navajo Nation Municipal Pipeline'' or 
        ``Pipeline'' means the pipeline used to convey the 
        water of the Animas-La Plata Project of the Navajo 
        Nation from the City of Farmington, New Mexico, to 
        communities of the Navajo Nation located in close 
        proximity to the San Juan River Valley in the State of 
        New Mexico (including the City of Shiprock), as 
        authorized by section 15(b) of the Colorado Ute Indian 
        Water Rights Settlement Act of 1988 (Public Law 100-
        585; 102 Stat. 2973; 114 Stat. 2763A-263).
          (22) Non-navajo irrigation districts.--The term 
        ``Non-Navajo Irrigation Districts'' means--
                  (A) the Hammond Conservancy District;
                  (B) the Bloomfield Irrigation District; and
                  (C) any other community ditch organization in 
                the San Juan River basin in the State of New 
                Mexico.
          (23) Partial final decree.--The term ``Partial Final 
        Decree'' means a final and binding judgment and decree 
        entered by a court in the stream adjudication, setting 
        forth the rights of the Nation to use and administer 
        waters of the San Juan River Basin in New Mexico, as 
        set forth in Appendix 1 of the Agreement.
          (24) Project participants.--The term ``Project 
        Participants'' means the City, the Nation, and the 
        Jicarilla Apache Nation.
          (25) San juan river basin recovery implementation 
        program.--The term ``San Juan River Basin Recovery 
        Implementation Program'' means the intergovernmental 
        program established pursuant to the cooperative 
        agreement dated October 21, 1992 (including any 
        amendments to the program).
          (26) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior, acting through the 
        Commissioner of Reclamation or any other designee.
          (27) Stream adjudication.--The term ``stream 
        adjudication'' means the general stream adjudication 
        that is the subject of New Mexico v. United States, et 
        al., No. [75-185] 75-184 (11th Jud. Dist., San Juan 
        County, New Mexico) (involving claims to waters of the 
        San Juan River and the tributaries of that river).
          (28) Supplemental partial final decree.--The term 
        ``Supplemental Partial Final Decree'' means a final and 
        binding judgment and decree entered by a court in the 
        stream adjudication, setting forth certain water rights 
        of the Nation, as set forth in Appendix 2 of the 
        Agreement.
          (29) Trust fund.--The term ``Trust Fund'' means the 
        Navajo Nation Water Resources Development Trust Fund 
        established by section 10702(a).
          (30) Upper basin.--The term ``Upper Basin'' has the 
        same meaning given the term in Article II(f) of the 
        Colorado River Compact.

           *       *       *       *       *       *       *


              PART III--NAVAJO-GALLUP WATER SUPPLY PROJECT

           *       *       *       *       *       *       *


SEC. 10603. DELIVERY AND USE OF NAVAJO-GALLUP WATER SUPPLY PROJECT 
                    WATER.

  (a) Use of Project Water.--
          (1) In general.--In accordance with this subtitle and 
        other applicable law, water supply from the Project 
        shall be used for municipal, industrial, commercial, 
        domestic, and stock watering purposes.
          (2) Use on certain land.--
                  (A) In general.--Subject to subparagraph (B), 
                the Nation may use Project water allocations 
                on--
                          (i) land held by the United States in 
                        trust for the Nation and members of the 
                        Nation; and
                          (ii) land held in fee by the Nation.
                  (B) Transfer.--The Nation may transfer the 
                purposes and places of use of the allocated 
                water in accordance with the Agreement and 
                applicable law.
          (3) Hydroelectric power.--
                  (A) In general.--Hydroelectric power may be 
                generated as an incident to the delivery of 
                Project water for authorized purposes under 
                paragraph (1).
                  (B) Administration.--Notwithstanding any 
                other provision of law--
                          (i) any hydroelectric power generated 
                        under this paragraph shall be used or 
                        marketed by the Nation;
                          (ii) the Nation shall retain any 
                        revenues from the sale of the 
                        hydroelectric power; and
                          (iii) the United States shall have no 
                        trust obligation or other obligation to 
                        monitor, administer, or account for the 
                        revenues received by the Nation, or the 
                        expenditure of the revenues.
          (4) Storage.--
                  (A) In general.--Subject to subparagraph (B), 
                any water contracted for delivery under 
                paragraph (1) that is not needed for current 
                water demands or uses may be delivered by the 
                Project for placement in underground storage in 
                the State of New Mexico for future recovery and 
                use.
                  (B) State approval.--Delivery of water under 
                subparagraph (A) is subject to--
                          (i) approval by the State of New 
                        Mexico under applicable provisions of 
                        State law relating to aquifer storage 
                        and recovery; and
                          (ii) the provisions of the Agreement 
                        and this subtitle.
  (b) Project Water and Capacity Allocations.--
          (1) Diversion.--Subject to availability and 
        consistent with Federal and State law, the Project may 
        divert from the Navajo Reservoir and the San Juan River 
        a quantity of water to be allocated and used consistent 
        with the Agreement and this subtitle, that does not 
        exceed in any 1 year, the lesser of--
                  (A) 37,760 acre-feet of water; or
                  (B) the quantity of water necessary to supply 
                a depletion from the San Juan River of 35,890 
                acre-feet.
          (2) Project delivery capacity allocations.--
                  (A) In general.--The capacity of the Project 
                shall be allocated to the Project Participants 
                in accordance with subparagraphs (B) through 
                (E), other provisions of this subtitle, and 
                other applicable law.
                  (B) Delivery capacity allocation to the 
                city.--The Project may deliver at the point of 
                diversion from the San Juan River not more than 
                7,500 acre-feet of water in any 1 year for 
                which the City has secured rights for the use 
                of the City.
                  (C) Delivery capacity allocation to navajo 
                nation communities in new mexico.--For use by 
                the Nation in the State of New Mexico, the 
                Project may deliver water out of the water 
                rights held by the Secretary for the Nation and 
                confirmed under this subtitle, at the points of 
                diversion from the San Juan River or at Navajo 
                Reservoir in any 1 year, the lesser of--
                          (i) 22,650 acre-feet of water; or
                          (ii) the quantity of water necessary 
                        to supply a depletion from the San Juan 
                        River of 20,780 acre-feet of water.
                  (D) Delivery capacity allocation to navajo 
                nation communities in arizona.--Subject to 
                subsection (c), the Project may deliver at the 
                point of diversion from the San Juan River not 
                more than 6,411 acre-feet of water in any 1 
                year for use by the Nation in the State of 
                Arizona.
                  (E) Delivery capacity allocation to jicarilla 
                apache nation.--The Project may deliver at 
                Navajo Reservoir not more than 1,200 acre-feet 
                of water in any 1 year of the water rights of 
                the Jicarilla Apache Nation, held by the 
                Secretary and confirmed by the Jicarilla Apache 
                Tribe Water Rights Settlement Act (Public Law 
                102-441; 106 Stat. 2237), for use by the 
                Jicarilla Apache Nation in the southern portion 
                of the Jicarilla Apache Nation Reservation in 
                the State of New Mexico.
          (3) Use in excess of delivery capacity allocation 
        quantity.--Notwithstanding each delivery capacity 
        allocation quantity limit described in subparagraphs 
        (B), (C), and (E) of paragraph (2), the Secretary may 
        authorize a Project Participant to exceed the delivery 
        capacity allocation quantity limit of that Project 
        Participant if--
                  (A) delivery capacity is available without 
                impairing any water delivery to any other 
                Project Participant; and
                  (B) the Project Participant benefitting from 
                the increased allocation of delivery capacity--
                          (i) has the right under applicable 
                        law to use the additional water;
                          (ii) agrees to pay the operation, 
                        maintenance, and replacement costs 
                        relating to the additional use of any 
                        Project facility; and
                          (iii) agrees, if the Project title is 
                        held by the Secretary, to pay a fee 
                        established by the Secretary to assist 
                        in recovering capital costs relating to 
                        that additional use.
  (c) Conditions for Use in Arizona.--
          (1) Requirements.--Project water shall not be 
        delivered for use by any community of the Nation 
        located in the State of Arizona under subsection 
        (b)(2)(D) until--
                  (A) the Nation and the State of Arizona have 
                entered into a water rights settlement 
                agreement approved by an Act of Congress that 
                settles and waives the Nation's claims to water 
                in the Lower Basin and the Little Colorado 
                River Basin in the State of Arizona, including 
                those of the United States on the Nation's 
                behalf; and
                  (B) the Secretary and the Navajo Nation have 
                entered into a Navajo Reservoir water supply 
                delivery contract for the physical delivery and 
                diversion of water via the Project from the San 
                Juan River system to supply uses in the State 
                of Arizona.
          (2) Accounting of uses in arizona.--
                  (A) In general.--Pursuant to paragraph (1) 
                and notwithstanding any other provision of law, 
                water may be diverted by the Project from the 
                San Juan River in the State of New Mexico in 
                accordance with an appropriate permit issued 
                under New Mexico law for use in the State of 
                Arizona within the Navajo Reservation in the 
                Lower Basin; provided that any depletion of 
                water that results from the diversion of water 
                by the Project from the San Juan River in the 
                State of New Mexico for uses within the State 
                of Arizona (including depletion incidental to 
                the diversion, impounding, or conveyance of 
                water in the State of New Mexico for uses in 
                the State of Arizona) shall be administered and 
                accounted for as either--
                          (i) a part of, and charged against, 
                        the available consumptive use 
                        apportionment made to the State of 
                        Arizona by Article III(a) of the 
                        Compact and to the Upper Basin by 
                        Article III(a) of the Colorado River 
                        Compact, in which case any water so 
                        diverted by the Project into the Lower 
                        Basin for use within the State of 
                        Arizona shall not be credited as water 
                        reaching Lee Ferry pursuant to [Article 
                        III(c)] Articles III(c) and III(d) of 
                        the Colorado River Compact; or
                          (ii) subject to subparagraph (B), a 
                        part of, and charged against, the 
                        consumptive use apportionment made to 
                        the Lower Basin by Article III(a) of 
                        the Colorado River Compact, in which 
                        case it shall--
                                  (I) be a part of the Colorado 
                                River water that is apportioned 
                                to the State of Arizona in 
                                Article II(B) of the 
                                Consolidated Decree of the 
                                Supreme Court of the United 
                                States in Arizona v. California 
                                (547 U.S. 150) (as may be 
                                amended or supplemented);
                                  (II) be credited as water 
                                reaching Lee Ferry pursuant to 
                                [Article III(c)] Articles 
                                III(c) and III(d) of the 
                                Colorado River Compact; and
                                  (III) be accounted as the 
                                water identified in section 
                                104(a)(1)(B)(ii) of the Arizona 
                                Water Settlements Act, (118 
                                Stat. 3478).
                  (B) Limitation.--Notwithstanding subparagraph 
                (A)(ii), no water diverted by the Project shall 
                be accounted for pursuant to subparagraph 
                (A)(ii) until such time that--
                          (i) the Secretary has developed and, 
                        as necessary and appropriate, modified, 
                        in consultation with the Upper Colorado 
                        River Commission and the Governors' 
                        Representatives on Colorado River 
                        Operations from each State signatory to 
                        the Colorado River Compact, all 
                        operational and decisional criteria, 
                        policies, contracts, guidelines or 
                        other documents that control the 
                        operations of the Colorado River System 
                        reservoirs and diversion works, so as 
                        to adjust, account for, and offset the 
                        diversion of water apportioned to the 
                        State of Arizona, pursuant to the 
                        Boulder Canyon Project Act (43 U.S.C. 
                        617 et seq.), from a point of diversion 
                        on the San Juan River in New Mexico; 
                        provided that all such modifications 
                        shall be consistent with the provisions 
                        of this Section, and the modifications 
                        made pursuant to this clause shall be 
                        applicable only for the duration of any 
                        such diversions pursuant to section 
                        10603(c)(2)(A)(ii); and
                          (ii) Article II(B) of the Decree of 
                        the Supreme Court of the United States 
                        in Arizona v. California (547 U.S. 150 
                        as may be amended or supplemented) is 
                        administered so that diversions from 
                        the main stream for the Central Arizona 
                        Project, as served under existing 
                        contracts with the United States by 
                        diversion works heretofore constructed, 
                        shall be limited and reduced to offset 
                        any diversions made pursuant to section 
                        10603(c)(2)(A)(ii) of this Act. This 
                        clause shall not affect, in any manner, 
                        the amount of water apportioned to 
                        Arizona pursuant to the Boulder Canyon 
                        Project Act (43 U.S.C. 617 et seq.), or 
                        amend any provisions of said decree or 
                        the Colorado River Basin Project Act 
                        (43 U.S.C. 1501 et. seq.).
          (3) Upper basin protections.--
                  (A) Consultations.--Henceforth, in any 
                consultation pursuant to 16 U.S.C. 1536(a) with 
                respect to water development in the San Juan 
                River Basin, the Secretary shall confer with 
                the States of Colorado and New Mexico, 
                consistent with the provisions of section 5 of 
                the ``Principles for Conducting Endangered 
                Species Act Section 7 Consultations on Water 
                Development and Water Management Activities 
                Affecting Endangered Fish Species in the San 
                Juan River Basin'' as adopted by the 
                Coordination Committee, San Juan River Basin 
                Recovery Implementation Program, on June 19, 
                2001, and as may be amended or modified.
                  (B) Preservation of existing rights.--Rights 
                to the consumptive use of water available to 
                the Upper Basin from the Colorado River System 
                under the Colorado River Compact and the 
                Compact shall not be reduced or prejudiced by 
                any use of water pursuant to subsection 
                10603(c). Nothing in this Act shall be 
                construed so as to impair, conflict with, or 
                otherwise change the duties and powers of the 
                Upper Colorado River Commission.
  (d) Forbearance.--
          (1) In general.--Subject to paragraphs (2) and (3), 
        during any year in which a shortage to the normal 
        diversion requirement for any use relating to the 
        Project within the State of Arizona occurs (as 
        determined under section 11 of Public Law 87-483 (76 
        Stat. 99)), the Nation may temporarily forbear the 
        delivery of the water supply of the Navajo Reservoir 
        for uses in the State of New Mexico under the 
        apportionments of water to the Navajo Indian Irrigation 
        Project and the normal diversion requirements of the 
        Project to allow an equivalent quantity of water to be 
        delivered from the Navajo Reservoir water supply for 
        municipal and domestic uses of the Nation in the State 
        of Arizona under the Project.
          (2) Limitation of forbearance.--The Nation may 
        forebear the delivery of water under paragraph (1) of a 
        quantity not exceeding the quantity of the shortage to 
        the normal diversion requirement for any use relating 
        to the Project within the State of Arizona.
          (3) Effect.--The forbearance of the delivery of water 
        under paragraph (1) shall be subject to the 
        requirements in subsection (c).
  (e) Effect.--Nothing in this subtitle--
          (1) authorizes the marketing, leasing, or transfer of 
        the water supplies made available to the Nation under 
        the Contract to non-Navajo water users in States other 
        than the State of New Mexico; or
          (2) authorizes the forbearance of water uses in the 
        State of New Mexico to allow uses of water in other 
        States other than as authorized under subsection (d).
  (f) Colorado River Compacts.--Notwithstanding any other 
provision of law--
          (1) water may be diverted by the Project from the San 
        Juan River in the State of New Mexico for use within 
        New Mexico in the lower basin, as that term is used in 
        the Colorado River Compact;
          (2) any water diverted under paragraph (1) shall be a 
        part of, and charged against, the consumptive use 
        apportionment made to the State of New Mexico by 
        Article III(a) of the Compact and to the upper basin by 
        Article III(a) of the Colorado River Compact; and
          (3) any water so diverted by the Project into the 
        lower basin within the State of New Mexico shall not be 
        credited as water reaching Lee Ferry pursuant to 
        Articles III(c) and III(d) of the Colorado River 
        Compact.
  (g) Payment of Operation, Maintenance, and Replacement 
Costs.--
          (1) In general.--The Secretary is authorized to pay 
        the operation, maintenance, and replacement costs of 
        the Project allocable to the Project Participants under 
        section 10604 until the date on which the Secretary 
        declares any section of the Project to be substantially 
        complete and delivery of water generated by, and 
        through, that section of the Project can be made to a 
        Project participant.
          (2) Project participant payments.--Beginning on the 
        date described in paragraph (1), each Project 
        Participant shall pay all allocated operation, 
        maintenance, and replacement costs for that 
        substantially completed section of the Project, in 
        accordance with contracts entered into pursuant to 
        section 10604, except as provided in section 10604(f).
  (h) No Precedent.--Nothing in this Act shall be construed as 
authorizing or establishing a precedent for any type of 
transfer of Colorado River System water between the Upper Basin 
and Lower Basin. Nor shall anything in this Act be construed as 
expanding the Secretary's authority in the Upper Basin.
  (i) Unique Situation.--Diversions by the Project consistent 
with this section address critical tribal and non-Indian water 
supply needs under unique circumstances, which include, among 
other things--
          (1) the intent to benefit an American Indian tribe;
          (2) the Navajo Nation's location in both the Upper 
        and Lower Basin;
          (3) the intent to address critical Indian water needs 
        in the State of Arizona and Indian and non-Indian water 
        needs in the State of New Mexico,
          (4) the location of the Navajo Nation's capital city 
        of Window Rock in the State of Arizona in close 
        proximity to the border of the State of New Mexico and 
        the pipeline route for the Project;
          (5) the lack of other reasonable options available 
        for developing a firm, sustainable supply of municipal 
        water for the Navajo Nation at Window Rock in the State 
        of Arizona; and
          (6) the limited volume of water to be diverted by the 
        Project to supply municipal uses in the Window Rock 
        area in the State of Arizona.
  (j) Consensus.--Congress notes the consensus of the 
Governors' Representatives on Colorado River Operations of the 
States that are signatory to the Colorado River Compact 
regarding the diversions authorized for the Project under this 
section.
  (k) Efficient Use.--The diversions and uses authorized for 
the Project under this Section represent unique and efficient 
uses of Colorado River apportionments in a manner that Congress 
has determined would be consistent with the obligations of the 
United States to the Navajo Nation.

SEC. 10604. PROJECT CONTRACTS.

  (a) Navajo Nation Contract.--
          (1) Hydrologic determination.--Congress recognizes 
        that the Hydrologic Determination necessary to support 
        approval of the Contract has been completed.
          (2) Contract approval.--
                  (A) Approval.--
                          (i) In general.--Except to the extent 
                        that any provision of the Contract 
                        conflicts with this subtitle, Congress 
                        approves, ratifies, and confirms the 
                        Contract.
                          (ii) Amendments.--To the extent any 
                        amendment is executed to make the 
                        Contract consistent with this subtitle, 
                        that amendment is authorized, ratified, 
                        and confirmed.
                  (B) Execution of contract.--The Secretary, 
                acting on behalf of the United States, shall 
                enter into the Contract to the extent that the 
                Contract does not conflict with this subtitle 
                (including any amendment that is required to 
                make the Contract consistent with this 
                subtitle).
          (3) Nonreimbursability of allocated costs.--The 
        following costs shall be nonreimbursable and not 
        subject to repayment by the Nation or any other Project 
        beneficiary:
                  (A) Any share of the construction costs of 
                the Nation relating to the Project authorized 
                by section 10602(a).
                  (B) Any costs relating to the construction of 
                the Navajo Indian Irrigation Project that may 
                otherwise be allocable to the Nation for use of 
                any facility of the Navajo Indian Irrigation 
                Project to convey water to each Navajo 
                community under the Project.
                  (C) Any costs relating to the construction of 
                Navajo Dam that may otherwise be allocable to 
                the Nation for water deliveries under the 
                Contract.
          (4) Operation, Maintenance, and Replacement 
        Obligation.--Subject to subsection (f), the Contract 
        shall include provisions under which the Nation shall 
        pay any costs relating to the operation, maintenance, 
        and replacement of each facility of the Project that 
        are allocable to the Nation.
          (5) Limitation, cancellation, termination, and 
        rescission.--The Contract may be limited by a term of 
        years, canceled, terminated, or rescinded only by an 
        Act of Congress.
  (b) City of Gallup Contract.--
          (1) Contract authorization.--Consistent with this 
        subtitle, the Secretary is authorized to enter into a 
        repayment contract with the City that requires the 
        City--
                  (A) to repay, within a 50-year period, the 
                share of the construction costs of the City 
                relating to the Project, with interest as 
                provided under section 10305; and
                  (B) consistent with section 10603(g), to pay 
                the operation, maintenance, and replacement 
                costs of the Project that are allocable to the 
                City.
          (2) Contract prepayment.--
                  (A) In general.--The contract authorized 
                under paragraph (1) may allow the City to 
                satisfy the repayment obligation of the City 
                for construction costs of the Project on the 
                payment of the share of the City prior to the 
                initiation of construction.
                  (B) Amount.--The amount of the share of the 
                City described in subparagraph (A) shall be 
                determined by agreement between the Secretary 
                and the City.
                  (C) Repayment obligation.--Any repayment 
                obligation established by the Secretary and the 
                City pursuant to subparagraph (A) shall be 
                subject to a final cost allocation by the 
                Secretary on project completion and to the 
                limitations set forth in paragraph (3).
          (3) Share of construction costs.--
                  (A) In general.--Subject to subparagraph (B), 
                the Secretary shall determine the share of the 
                construction costs of the Project allocable to 
                the City and establish the percentage of the 
                allocated construction costs that the City 
                shall be required to repay pursuant to the 
                contract entered into under paragraph (1), 
                based on the ability of the City to pay.
                  (B) Minimum percentage.--Notwithstanding 
                subparagraph (A), the repayment obligation of 
                the City shall be at least 25 percent of the 
                construction costs of the Project that are 
                allocable to the City, but shall in no event 
                exceed 35 percent.
          (4) Excess construction costs.--Any construction 
        costs of the Project allocable to the City in excess of 
        the repayment obligation of the City, as determined 
        under paragraph (3), shall be nonreimbursable.
          (5) Grant funds.--A grant from any other Federal 
        source shall not be credited toward the amount required 
        to be repaid by the City under a repayment contract.
          (6) Title transfer.--If title is transferred to the 
        City prior to repayment under section 10602(f), the 
        City shall be required to provide assurances 
        satisfactory to the Secretary of fulfillment of the 
        remaining repayment obligation of the City.
          (7) Water delivery subcontract.--The Secretary shall 
        not enter into a contract under paragraph (1) with the 
        City until the City has secured a water supply for the 
        City's portion of the Project described in section 
        10603(b)(2)(B), by entering into, as approved by the 
        Secretary, a water delivery subcontract for a period of 
        not less than 40 years beginning on the date on which 
        the construction of any facility of the Project serving 
        the City is completed, with--
                  (A) the Nation, as authorized by the 
                Contract;
                  (B) the Jicarilla Apache Nation, as 
                authorized by the settlement contract between 
                the United States and the Jicarilla Apache 
                Tribe, authorized by the Jicarilla Apache Tribe 
                Water Rights Settlement Act (Public Law 102-
                441; 106 Stat. 2237); or
                  (C) an acquired alternate source of water, 
                subject to approval of the Secretary and the 
                State of New Mexico, acting through the New 
                Mexico Interstate Stream Commission and the New 
                Mexico State Engineer.
  (c) Jicarilla Apache Nation Contract.--
          (1) Contract authorization.--Consistent with this 
        subtitle, the Secretary is authorized to enter into a 
        repayment contract with the Jicarilla Apache Nation 
        that requires the Jicarilla Apache Nation--
                  (A) to repay, within a 50-year period, the 
                share of any construction cost of the Jicarilla 
                Apache Nation relating to the Project, with 
                interest as provided under section 10305; and
                  (B) consistent with section 10603(g), to pay 
                the operation, maintenance, and replacement 
                costs of the Project that are allocable to the 
                Jicarilla Apache Nation.
          (2) Contract prepayment.--
                  (A) In general.--The contract authorized 
                under paragraph (1) may allow the Jicarilla 
                Apache Nation to satisfy the repayment 
                obligation of the Jicarilla Apache Nation for 
                construction costs of the Project on the 
                payment of the share of the Jicarilla Apache 
                Nation prior to the initiation of construction.
                  (B) Amount.--The amount of the share of 
                Jicarilla Apache Nation described in 
                subparagraph (A) shall be determined by 
                agreement between the Secretary and the 
                Jicarilla Apache Nation.
                  (C) Repayment obligation.--Any repayment 
                obligation established by the Secretary and the 
                Jicarilla Apache Nation pursuant to 
                subparagraph (A) shall be subject to a final 
                cost allocation by the Secretary on project 
                completion and to the limitations set forth in 
                paragraph (3).
          (3) Share of construction costs.--
                  (A) In general.--Subject to subparagraph (B), 
                the Secretary shall determine the share of the 
                construction costs of the Project allocable to 
                the Jicarilla Apache Nation and establish the 
                percentage of the allocated construction costs 
                of the Jicarilla Apache Nation that the 
                Jicarilla Apache Nation shall be required to 
                repay based on the ability of the Jicarilla 
                Apache Nation to pay.
                  (B) Minimum percentage.--Notwithstanding 
                subparagraph (A), the repayment obligation of 
                the Jicarilla Apache Nation shall be at least 
                25 percent of the construction costs of the 
                Project that are allocable to the Jicarilla 
                Apache Nation, but shall in no event exceed 35 
                percent.
          (4) Excess construction costs.--Any construction 
        costs of the Project allocable to the Jicarilla Apache 
        Nation in excess of the repayment obligation of the 
        Jicarilla Apache Nation as determined under paragraph 
        (3), shall be nonreimbursable.
          (5) Grant funds.--A grant from any other Federal 
        source shall not be credited toward the share of the 
        Jicarilla Apache Nation of construction costs.
          (6) Navajo indian irrigation project costs.--The 
        Jicarilla Apache Nation shall have no obligation to 
        repay any Navajo Indian Irrigation Project construction 
        costs that might otherwise be allocable to the 
        Jicarilla Apache Nation for use of the Navajo Indian 
        Irrigation Project facilities to convey water to the 
        Jicarilla Apache Nation, and any such costs shall be 
        nonreimbursable.
  (d) Capital Cost Allocations.--
          (1) In general.--For purposes of estimating the 
        capital repayment requirements of the Project 
        Participants under this section, the Secretary shall 
        review and, as appropriate, update the Draft Impact 
        Statement allocating capital construction costs for the 
        Project.
          (2) Final cost allocation.--The repayment contracts 
        entered into with Project Participants under this 
        section shall require that the Secretary perform a 
        final cost allocation when construction of the Project 
        is determined to be substantially complete.
          (3) Repayment obligation.--The Secretary shall 
        determine the repayment obligation of the Project 
        Participants based on the final cost allocation 
        identifying reimbursable and nonreimbursable capital 
        costs of the Project consistent with this subtitle.
  (e) Operation, Maintenance, and Replacement Cost 
Allocations.--For purposes of determining the operation, 
maintenance, and replacement obligations of the Project 
Participants under this section, the Secretary shall review 
and, as appropriate, update the Draft Impact Statement that 
allocates operation, maintenance, and replacement costs for the 
Project.
  (f) Temporary Waivers of Payments.--
          (1) In general.--On the date on which the Secretary 
        declares a section of the Project to be substantially 
        complete and delivery of Project water generated by and 
        through that section of the Project can be made to the 
        Nation, the Secretary may waive, for a period of not 
        more than 10 years, the operation, maintenance, and 
        replacement costs allocable to the Nation for that 
        section of the Project that the Secretary determines 
        are in excess of the ability of the Nation to pay.
          (2) Subsequent payment by nation.--After a waiver 
        under paragraph (1), the Nation shall pay all allocated 
        operation, maintenance, and replacement costs of that 
        section of the Project.
          (3) Payment by united states.--Any operation, 
        maintenance, or replacement costs waived by the 
        Secretary under paragraph (1) shall be paid by the 
        United States and shall be nonreimbursable.
          (4) Effect on contracts.--Failure of the Secretary to 
        waive costs under paragraph (1) because of a lack of 
        availability of Federal funding to pay the costs under 
        paragraph (3) shall not alter the obligations of the 
        Nation or the United States under a repayment contract.
          (5) Termination of Authority.--The authority of the 
        Secretary to waive costs under paragraph (1) with 
        respect to a Project facility transferred to the Nation 
        under section 10602(f) shall terminate on the date on 
        which the Project facility is transferred.
  (g) Project Construction Committee.--The Secretary shall 
facilitate the formation of a project construction committee 
with the Project Participants and the State of New Mexico--
          (1) to review cost factors and budgets for 
        construction and operation and maintenance activities;
          (2) to improve construction management through 
        enhanced communication; and
          (3) to seek additional ways to reduce overall Project 
        costs.

           *       *       *       *       *       *       *


SEC. 10609. AUTHORIZATION OF APPROPRIATIONS.

  (a) Authorization of Appropriations for Navajo-Gallup Water 
Supply Project.--
          (1) In general.--There is authorized to be 
        appropriated to the Secretary to plan, design, and 
        construct the Project $870,000,000 for the period of 
        fiscal years 2009 through 2024, to remain available 
        until expended.
          (2) Adjustments.--The amount under paragraph (1) 
        shall be adjusted by such amounts as may be required by 
        reason of changes since 2007 in construction costs, as 
        indicated by engineering cost indices applicable to the 
        types of construction involved.
          (3) Use.--In addition to the uses authorized under 
        paragraph (1), amounts made available under that 
        paragraph may be used for the conduct of related 
        activities to comply with Federal environmental laws.
          (4) Operation and maintenance.--
                  (A) In general.--There are authorized to be 
                appropriated such sums as are necessary to 
                operate and maintain the Project consistent 
                with this subtitle.
                  (B) Expiration.--The authorization under 
                subparagraph (A) shall expire 10 years after 
                the year the Secretary declares the Project to 
                be substantially complete.
  (b) Appropriations for Conjunctive Use Wells.--
          (1) San juan wells.--There is authorized to be 
        appropriated to the Secretary for the [construction or 
        rehabilitation] planning, design, construction, 
        rehabilitation, and operation and maintenance of 
        conjunctive use wells under section 10606(b) 
        $30,000,000, as adjusted under paragraph (3), for the 
        period of fiscal years 2009 through 2019.
          (2) Wells in the Little Colorado and Rio Grande 
        Basins.--There are authorized to be appropriated to the 
        Secretary for the [construction or rehabilitation] 
        planning, design, construction, rehabilitation, and 
        operation and maintenance of conjunctive use wells 
        under section 10606(c) such sums as are necessary for 
        the period of fiscal years 2009 through 2024.
          (3) Adjustments.--The amount under paragraph (1) 
        shall be adjusted by such amounts as may be required by 
        reason of changes since 2008 in construction costs, as 
        indicated by engineering cost indices applicable to the 
        types of construction or rehabilitation involved.
          (4) Nonreimbursable expenditures.--Amounts made 
        available under paragraphs (1) and (2) shall be 
        nonreimbursable to the United States.
          (5) Use.--In addition to the uses authorized under 
        paragraphs (1) and (2), amounts made available under 
        that paragraph may be used for the conduct of related 
        activities to comply with Federal environmental laws.
          (6) Limitation.--Appropriations authorized under 
        paragraph (1) shall not be used for operation or 
        maintenance of any conjunctive use wells at a time in 
        excess of 3 years after the well is declared 
        substantially complete.
  (c) San Juan River Irrigation Projects.--
          (1) In general.--There are authorized to be 
        appropriated to the Secretary--
                  (A) to carry out section 10607(a)(1), not 
                more than $7,700,000, as adjusted under 
                paragraph (2), for the period of fiscal years 
                2009 through 2016, to remain available until 
                expended; and
                  (B) to carry out section 10607(a)(2), not 
                more than $15,400,000, as adjusted under 
                paragraph (2), for the period of fiscal years 
                2009 through 2019, to remain available until 
                expended.
          (2) Adjustment.--The amounts made available under 
        paragraph (1) shall be adjusted by such amounts as may 
        be required by reason of changes since January 1, 2004, 
        in construction costs, as indicated by engineering cost 
        indices applicable to the types of construction 
        involved in the rehabilitation.
          (3) Nonreimbursable expenditures.--Amounts made 
        available under this subsection shall be 
        nonreimbursable to the United States.
  (d) Other Irrigation Projects.--There are authorized to be 
appropriated to the Secretary to carry out section 10608 
$11,000,000 for the period of fiscal years 2009 through 2019.
  (e) Cultural Resources.--
          (1) In general.--The Secretary may use not more than 
        [2 percent] 4 percent of amounts made available under 
        subsections (a), (b), and (c) for the survey, recovery, 
        protection, preservation, and display of archaeological 
        resources in the area of a Project facility or 
        conjunctive use well.
          (2) Nonreimbursable expenditures.--Any amounts made 
        available under paragraph (1) shall be nonreimbursable.
  (f) Fish and Wildlife Facilities.--
          (1) In general.--In association with the development 
        of the Project, the Secretary may use not more than [4 
        percent] 2 percent of amounts made available under 
        subsections (a), (b), and (c) to purchase land and 
        construct and maintain facilities to mitigate the loss 
        of, and improve conditions for the propagation of, fish 
        and wildlife if any such purchase, construction, or 
        maintenance will not affect the operation of any water 
        project or use of water.
          (2) Nonreimbursable expenditures.--Any amounts 
        expended under paragraph (1) shall be nonreimbursable.

           *       *       *       *       *       *       *


                  PART IV--NAVAJO NATION WATER RIGHTS

SEC. 10701. AGREEMENT.

  (a) Agreement Approval.--
          (1) Approval by congress.--Except to the extent that 
        any provision of the Agreement conflicts with this 
        subtitle, Congress approves, ratifies, and confirms the 
        Agreement (including any amendments to the Agreement 
        that are executed to make the Agreement consistent with 
        this subtitle).
          (2) Execution by secretary.--The Secretary shall 
        enter into the Agreement to the extent that the 
        Agreement does not conflict with this subtitle, 
        including--
                  (A) any exhibits to the Agreement requiring 
                the signature of the Secretary; and
                  (B) any amendments to the Agreement necessary 
                to make the Agreement consistent with this 
                subtitle.
          (3) Authority of secretary.--The Secretary may carry 
        out any action that the Secretary determines is 
        necessary or appropriate to implement the Agreement, 
        the Contract, and this section.
          (4) Administration of navajo reservoir releases.--The 
        State of New Mexico may administer water that has been 
        released from storage in Navajo Reservoir in accordance 
        with subparagraph 9.1 of the Agreement.
  (b) Water Available Under Contract.--
          (1) Quantities of water available.--
                  (A) In general.--Water shall be made 
                available annually under the Contract for 
                projects in the State of New Mexico supplied 
                from the Navajo Reservoir and the San Juan 
                River (including tributaries of the River) 
                under New Mexico State Engineer File Numbers 
                2849, 2883, and 3215 in the quantities 
                described in subparagraph (B).
                  (B) Water quantities.--The quantities of 
                water referred to in subparagraph (A) are as 
                follows:


 
------------------------------------------------------------------------
                                                    Diversion  Depletion
                                                      (acre-     (acre-
                                                      feet/      feet/
                                                      year)      year)
------------------------------------------------------------------------
Navajo Indian Irrigation Project                      508,000   270,000
Navajo-Gallup Water Supply Project                     22,650    20,780
Animas-La Plata Project                                 4,680     2,340
Total                                                 535,330   293,120
------------------------------------------------------------------------

                  (C) Maximum quantity.--A diversion of water 
                to the Nation under the Contract for a project 
                described in subparagraph (B) shall not exceed 
                the quantity of water necessary to supply the 
                amount of depletion for the project.
                  (D) Terms, conditions, and limitations.--The 
                diversion and use of water under the Contract 
                shall be subject to and consistent with the 
                terms, conditions, and limitations of the 
                Agreement, this subtitle, and any other 
                applicable law.
          (2) Amendments to contract.--The Secretary, with the 
        consent of the Nation, may amend the Contract if the 
        Secretary determines that the amendment is--
                  (A) consistent with the Agreement; and
                  (B) in the interest of conserving water or 
                facilitating beneficial use by the Nation or a 
                subcontractor of the Nation.
          (3) Rights of the nation.--The Nation may, under the 
        Contract--
                  (A) use tail water, wastewater, and return 
                flows attributable to a use of the water by the 
                Nation or a subcontractor of the Nation if--
                          (i) the depletion of water does not 
                        exceed the quantities described in 
                        paragraph (1); and
                          (ii) the use of tail water, 
                        wastewater, or return flows is 
                        consistent with the terms, conditions, 
                        and limitations of the Agreement, and 
                        any other applicable law; and
                  (B) change a point of diversion, change a 
                purpose or place of use, and transfer a right 
                for depletion under this subtitle (except for a 
                point of diversion, purpose or place of use, or 
                right for depletion for use in the State of 
                Arizona under section 10603(b)(2)(D)), to 
                another use, purpose, place, or depletion in 
                the State of New Mexico to meet a water 
                resource or economic need of the Nation if--
                          (i) the change or transfer is subject 
                        to and consistent with the terms of the 
                        Agreement, the Partial Final Decree 
                        described in paragraph 3.0 of the 
                        Agreement, the Contract, and any other 
                        applicable law; and
                          (ii) a change or transfer of water 
                        use by the Nation does not alter any 
                        obligation of the United States, the 
                        Nation, or another party to pay or 
                        repay project construction, operation, 
                        maintenance, or replacement costs under 
                        this subtitle and the Contract.
  (c) Subcontracts.--
          (1) In general.--
                  (A) Subcontracts between nation and third 
                parties.--The Nation may enter into 
                subcontracts for the delivery of Project water 
                under the Contract to third parties for any 
                beneficial use in the State of New Mexico (on 
                or off land held by the United States in trust 
                for the Nation or a member of the Nation or 
                land held in fee by the Nation).
                  (B) Approval required.--A subcontract entered 
                into under subparagraph (A) shall not be 
                effective until approved by the Secretary in 
                accordance with this subsection and the 
                Contract.
                  (C) Submittal.--The Nation shall submit to 
                the Secretary for approval or disapproval any 
                subcontract entered into under this subsection.
                  (D) Deadline.--The Secretary shall approve or 
                disapprove a subcontract submitted to the 
                Secretary under subparagraph (C) not later than 
                the later of--
                          (i) the date that is 180 days after 
                        the date on which the subcontract is 
                        submitted to the Secretary; and
                          (ii) the date that is 60 days after 
                        the date on which a subcontractor 
                        complies with--
                                  (I) section 102(2)(C) of the 
                                National Environmental Policy 
                                Act of 1969 (42 U.S.C. 
                                4332(2)(C)); and
                                  (II) any other requirement of 
                                Federal law.
                  (E) Enforcement.--A party to a subcontract 
                may enforce the deadline described in 
                subparagraph (D) under section 1361 of title 
                28, United States Code.
                  (F) Compliance with other law.--A subcontract 
                described in subparagraph (A) shall comply with 
                the Agreement, the Partial Final Decree 
                described in paragraph 3.0 of the Agreement, 
                and any other applicable law.
                  (G) No liability.--The Secretary shall not be 
                liable to any party, including the Nation, for 
                any term of, or any loss or other detriment 
                resulting from, a lease, contract, or other 
                agreement entered into pursuant to this 
                subsection.
          (2) Alienation.--
                  (A) Permanent alienation.--The Nation shall 
                not permanently alienate any right granted to 
                the Nation under the Contract.
                  (B) Maximum term.--The term of any water use 
                subcontract (including a renewal) under this 
                subsection shall be not more than 99 years.
          (3) Nonintercourse act compliance.--This subsection--
                  (A) provides congressional authorization for 
                the subcontracting rights of the Nation; and
                  (B) is deemed to fulfill any requirement that 
                may be imposed by section 2116 of the Revised 
                Statutes (25 U.S.C. 177).
          (4) Forfeiture.--The nonuse of the water supply 
        secured by a subcontractor of the Nation under this 
        subsection shall not result in forfeiture, abandonment, 
        relinquishment, or other loss of any part of a right 
        decreed to the Nation under the Contract or this 
        section.
          (5) No Per Capita Payments.--No part of the revenue 
        from a water use subcontract under this subsection 
        shall be distributed to any member of the Nation on a 
        per capita basis.
  (d) Water Leases Not Requiring Subcontracts.--
          (1) Authority of nation.--
                  (A) In general.--The Nation may lease, 
                contract, or otherwise transfer to another 
                party or to another purpose or place of use in 
                the State of New Mexico (on or off land that is 
                held by the United States in trust for the 
                Nation or a member of the Nation or held in fee 
                by the Nation) a water right that--
                          (i) is decreed to the Nation under 
                        the Agreement; and
                          (ii) is not subject to the Contract.
                  (B) Compliance with other law.--In carrying 
                out an action under this subsection, the Nation 
                shall comply with the Agreement, the Partial 
                Final Decree described in paragraph 3.0 of the 
                Agreement, the Supplemental Partial Final 
                Decree described in paragraph 4.0 of the 
                Agreement, and any other applicable law.
          (2) Alienation; maximum term.--
                  (A) Alienation.--The Nation shall not 
                permanently alienate any right granted to the 
                Nation under the Agreement.
                  (B) Maximum term.--The term of any water use 
                lease, contract, or other arrangement 
                (including a renewal) under this subsection 
                shall be not more than 99 years.
          (3) No liability.--The Secretary shall not be liable 
        to any party, including the Nation, for any term of, or 
        any loss or other detriment resulting from, a lease, 
        contract, or other agreement entered into pursuant to 
        this subsection.
          (4) Nonintercourse act compliance.--This subsection--
                  (A) provides congressional authorization for 
                the lease, contracting, and transfer of any 
                water right described in paragraph (1)(A); and
                  (B) is deemed to fulfill any requirement that 
                may be imposed by the provisions of section 
                2116 of the Revised Statutes (25 U.S.C. 177).
          (5) Forfeiture.--The nonuse of a water right of the 
        Nation by a lessee or contractor to the Nation under 
        this subsection shall not result in forfeiture, 
        abandonment, relinquishment, or other loss of any part 
        of a right decreed to the Nation under the Contract or 
        this section.
  (e) Nullification.--
          (1) Deadlines.--
                  (A) In general.--In carrying out this 
                section, the following deadlines apply with 
                respect to implementation of the Agreement:
                          (i) Agreement.--Not later than 
                        December 31, 2010, the Secretary shall 
                        execute the Agreement.
                          (ii) Contract.--Not later than 
                        December 31, 2010, the Secretary and 
                        the Nation shall execute the Contract.
                          (iii) Partial final decree.--Not 
                        later than December 31, 2013, the court 
                        in the stream adjudication shall have 
                        entered the Partial Final Decree 
                        described in paragraph 3.0 of the 
                        Agreement.
                          (iv) Fruitland-cambridge irrigation 
                        project.--Not later than December 31, 
                        2016, the rehabilitation construction 
                        of the Fruitland-Cambridge Irrigation 
                        Project authorized under section 
                        10607(a)(1) shall be completed.
                          (v) Supplemental partial final 
                        decree.--Not later than December 31, 
                        2016, the court in the stream 
                        adjudication shall enter the 
                        Supplemental Partial Final Decree 
                        described in subparagraph 4.0 of the 
                        Agreement.
                          (vi) Hogback-cudei irrigation 
                        project.--Not later than December 31, 
                        2019, the rehabilitation construction 
                        of the Hogback-Cudei Irrigation Project 
                        authorized under section 10607(a)(2) 
                        shall be completed.
                          (vii) Trust fund.--Not later than 
                        December 31, 2019, the United States 
                        shall make all deposits into the Trust 
                        Fund under section 10702.
                          (viii) Conjunctive wells.--Not later 
                        than December 31, 2019, the funds 
                        authorized to be appropriated under 
                        section 10609(b)(1) for the conjunctive 
                        use wells authorized under section 
                        10606(b) should be appropriated.
                          (ix) Navajo-gallup water supply 
                        project.--Not later than December 31, 
                        2024, the construction of all Project 
                        facilities shall be completed.
                  (B) Extension.--A deadline described in 
                subparagraph (A) may be extended if the Nation, 
                the United States (acting through the 
                Secretary), and the State of New Mexico (acting 
                through the New Mexico Interstate Stream 
                Commission) agree that an extension is 
                reasonably necessary.
          (2) Revocability of agreement, contract and 
        authorizations.--
                  (A) Petition.--If the Nation determines that 
                a deadline described in paragraph (1)(A) is not 
                substantially met, the Nation may submit to the 
                court in the stream adjudication a petition to 
                enter an order terminating the Agreement [and 
                Contract].
                  (B) Termination.--On issuance of an order to 
                terminate the Agreement [and Contract] under 
                subparagraph (A)--
                          (i) the Trust Fund shall be 
                        terminated;
                          (ii) the balance of the Trust Fund 
                        shall be deposited in the general fund 
                        of the Treasury;
                          (iii) the authorizations for 
                        construction and rehabilitation of 
                        water projects under this subtitle 
                        shall be revoked and any Federal 
                        activity related to that construction 
                        and rehabilitation shall be suspended; 
                        and
                          (iv) this part and parts I and III 
                        shall be null and void.
          (3) Conditions not causing nullification of 
        settlement.--
                  (A) In general.--If a condition described in 
                subparagraph (B) occurs, the Agreement [and 
                Contract] shall not be nullified or terminated.
                  (B) Conditions.--The conditions referred to 
                in subparagraph (A) are as follows:
                          (i) A lack of right to divert at the 
                        capacities of conjunctive use wells 
                        constructed or rehabilitated under 
                        section 10606.
                          (ii) A failure--
                                  (I) to determine or resolve 
                                an accounting of the use of 
                                water under this subtitle in 
                                the State of Arizona;
                                  (II) to obtain a necessary 
                                water right for the consumptive 
                                use of water in Arizona;
                                  (III) to contract for the 
                                delivery of water for use in 
                                Arizona; or
                                  (IV) to construct and operate 
                                a lateral facility to deliver 
                                water to a community of the 
                                Nation in Arizona, under the 
                                Project.
  (f) Effect on Rights of Indian Tribes.--
          (1) In general.--Except as provided in paragraph (2), 
        nothing in the Agreement, the Contract, or this section 
        quantifies or adversely affects the land and water 
        rights, or claims or entitlements to water, of any 
        Indian tribe or community other than the rights, 
        claims, or entitlements of the Nation in, to, and from 
        the San Juan River Basin in the State of New Mexico.
          (2) Exception.--The right of the Nation to use water 
        under water rights the Nation has in other river basins 
        in the State of New Mexico shall be forborne to the 
        extent that the Nation supplies the uses for which the 
        water rights exist by diversions of water from the San 
        Juan River Basin under the Project consistent with 
        subparagraph 9.13 of the Agreement.

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