[Senate Report 118-131]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 274
                                                       
                                                       
118th Congress }                                              {    Report
                                 SENATE
 1st Session   }                                              { 118-131

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



 
        RIO SAN JOSE AND RIO JEMEZ WATER SETTLEMENT ACT OF 2023

                                _______
                                

               December 12, 2023.--Ordered to be printed

                                _______
                                

           Mr. Schatz, from the Committee on Indian Affairs, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 595]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 595) to approve the settlement of water rights claims 
of the Pueblos of Acoma and Laguna in the Rio San Jose Stream 
System and the Pueblos of Jemez and Zia in the Rio Jemez Stream 
System in the State of New Mexico, and for other purposes, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                PURPOSE

    The purpose of S. 595 is to (1) resolve the claims of the 
Pueblo of Jemez and Pueblo of Zia to water rights in the Jemez 
River Stream System, and authorize, ratify, and confirm the May 
11, 2022, water settlement agreement between the Pueblos, the 
State of New Mexico, and other interested parties; and (2) 
resolve the claims of the Pueblo of Acoma and the Pueblo of 
Laguna to water rights in the general stream adjudication of 
the Rio San Jose Stream System captioned ``State of New Mexico, 
ex rel. State Engineer v. Kerr-McGee, et al'' in the Thirteenth 
Judicial District Court for the State of New Mexico, and 
authorize, ratify, and confirm the ``Rio San Jose Stream System 
Water Rights Local Settlement Agreement Among the Pueblo of 
Acoma, the Pueblo of Laguna, the Navajo Nation, the State of 
New Mexico, the City of Grants, the Village of Milan, the 
Association of Community Ditches of the Rio San Jose and Nine 
Individual Acequias and Community Ditches'' dated May 13, 2022 
(2022 Agreement).

                               BACKGROUND

    Pueblos of Jemez and Zia. The Pueblos are located on two 
separate Reservations within their respective ancestral 
territories, approximately 40 miles northwest of Albuquerque in 
central New Mexico. The Pueblo of Jemez includes over 89,000 
acres of land and has 3,400 Tribal members;\1\ and the Pueblo 
of Zia is comprised of more than 170,000 acres of land and has 
over 900 Tribal members.\2\ For centuries, both Pueblos have 
functioned as agricultural communities and irrigated to farm 
corn, squash, and other crops, as well as support of 
livestock.\3\
---------------------------------------------------------------------------
    \1\Legislative Hearing on Tule River Tribe Reserved Water Rights 
Settlement Act of 2022, S. 4896, Pueblos of Jemez and Zia Water Rights 
Settlement Act of 2022, and S. 4898 Pueblos of Acoma and Laguna Water 
Rights Settlement Act of 2022 Before the Senate Committee on Indian 
Affairs, 117th Cong. (2022) (written testimony of the Honorable Raymond 
Loretto, DVM, Governor of the Pueblo of Jemez).
    \2\Application for Treatment in a Similar Manner as a State Under 
Clean Air Act 2018, page 5 at https://www.epa.gov/sites/default/files/
2018-07/documents/pueblo-zia-tas-application-supporting-
documentation.pdf.
    \3\See supra, note 1.
---------------------------------------------------------------------------
    The Jemez River flows through the boundaries of both 
Pueblos, providing water for irrigation and recharging the 
alluvial aquifers that supply the Pueblos' drinking water.\4\ 
The river also supplies water throughout the Jemez River Basin 
for domestic, municipal, commercial, agricultural and 
environmental purposes, and it supports sacred and culturally 
significant Pueblo resources that rely on the River and related 
groundwater for survival.\5\
---------------------------------------------------------------------------
    \4\Id.
    \5\Id.
---------------------------------------------------------------------------
    Despite their proximity to the river, the Pueblos have 
consistently struggled to meet the modern water and wastewater 
needs of their Reservation populations due to lack of water 
pressure, water quality concerns, insufficient storage 
capacity, and outdated infrastructure.\6\ Without intervention, 
these issues will continue to worsen as the populations and 
economic activities of Pueblos continue to expand.\7\ 
Accordingly, for the past 40 years, the Pueblos have been 
actively seeking remedies in and out of court to improve the 
dependability and quality of their water supply, as well as 
their drinking water and wastewater systems.
---------------------------------------------------------------------------
    \6\Id. The Pueblos' drinking water infrastructure was built in the 
1960s, and the Pueblos' wastewater treatment needs are currently served 
by non-discharging evaporation lagoons rather than modern and scalable 
forms of sewer treatment and discharge.
    \7\Id.
---------------------------------------------------------------------------
    S. 595 would fully and finally settle the Pueblos' 
outstanding legal claims by authorizing, ratifying, and 
confirming the 2022 Agreement that resolves the matter through 
a fund-based settlement that supports: completion of a water 
and wastewater feasibility study; construction of new water and 
wastewater systems; improvement and augmentation of existing 
irrigation systems; establishment of a Pueblo Water Resources 
Department; quantification of the Pueblos' additional domestic, 
commercial, municipal, and industrial water rights; 
rehabilitation and new construction of livestock watering 
facilities; acquisition of land and water rights adjacent to 
the Pueblo ditches and around the Jemez River stream 
restoration projects; and construction of a water pipeline.
    Pueblos of Acoma and Laguna. The Pueblos are located in the 
river basin of the Rio San Jose, west of Albuquerque along 
Route 66. The Pueblo of Acoma includes approximately 450,000 
acres of land\8\ and has over 6,000 enrolled members;\9\ the 
Pueblo of Laguna is comprised of approximately 500,000 acres of 
land and has over 7,800 enrolled members.\10\ The Pueblos' 
economies historically relied on irrigated agriculture, 
including subsistence style farming and trade, and they 
designed and built vast systems of irrigation ditches and 
massive reservoirs before first contact with the Spanish and 
Pueblo people.\11\
---------------------------------------------------------------------------
    \8\Pueblo of Acoma Land Holdings at https://www.puebloofacoma.org/
wp-content/uploads/2021/01/Acoma-Landholdings_Final.pdf.
    \9\Raymond Concho Jr. & Arvind Patel, Enhancement of Pueblo of 
Acoma Utility Authority, presentation to the United States Department 
of Energy, Office of Indian Energy (2017) at https://www.energy.gov/
sites/prod/files/2017/11/f46/48-acoma-pueblo.pdf.
    \10\Laguna Department of Education, Pueblo of Laguna, at https://
www.lagunaed.net/
pueblolaguna#::text=Laguna%20Pueblo%20is%20one%20of,over%207%2C800 
%20enrolled %20tribal%20members.
    \11\Legislative Hearing on Tule River Tribe Reserved Water Rights 
Settlement Act of 2022, S. 4896, Pueblos of Jemez and Zia Water Rights 
Settlement Act of 2022, and S. 4898 Pueblos of Acoma and Laguna Water 
Rights Settlement Act of 2022 Before the Senate Committee on Indian 
Affairs, 117th Cong. (2022) (written testimony of the Honorable Martin 
Kowemy, Jr., Governor of the Pueblo of Laguna).
---------------------------------------------------------------------------
    The Pueblos historically irrigated thousands of acres of 
agricultural fields along the Rio San Jose, until late 19th 
Century diversions on the mainstem of the river began depriving 
both Pueblos of surface water.\12\ Since then, over a century 
of diversions by junior water users have resulted in 
irreversible damage to the Pueblos' water supply, including 
loss of most of the flow from Rio San Jose.\13\ This water loss 
has affected the Pueblos by substantially reducing agriculture, 
limiting flow to the riparian zone that nurtures native plants, 
and preventing important cultural ceremonies that require a 
flowing river.\14\ The loss is so significant that, even if all 
junior users immediately ceased use, historical flows could not 
be restored to the Pueblos for decades, if at all.\15\ As such, 
the Pueblos have spent 40 years in litigation and eight years 
in negotiations attempting to find a solution to their water 
crisis.
---------------------------------------------------------------------------
    \12\Id.
    \13\Id.
    \14\Id.
    \15\Id.
---------------------------------------------------------------------------

                          NEED FOR LEGISLATION

    This bill would fully and finally settle the Pueblos' 
outstanding claims by authorizing, ratifying, and confirming 
the Rio San Jose Agreement, providing for a fund-based 
settlement, and supporting administration of Pueblo Water 
Rights on Pueblo lands under a Pueblo Water Code, similar to 
the manner in which water rights are administered by the New 
Mexico State Engineer on non-Indian lands.

                 SUMMARY OF S. 595 AS ORDERED REPORTED

    S. 595 authorizes, ratifies, and confirms the Rio San Jose 
Agreement, as amended; requires the Pueblo Water Rights to be 
held in trust by the United States; makes certain 
authorizations and prohibitions regarding the Pueblo Water 
Rights; establishes Settlement Trust Funds for the Pueblos of 
Acoma, Laguna, Jemez, and Zia; authorizes mandatory 
appropriations for the Settlement Trust Funds and other 
purposes; and places certain requirements on the Secretary of 
the Interior.

                          LEGISLATIVE HISTORY

    Senators Heinrich (D-NM) and Lujan (D-NM) introduced S. 595 
on March 1, 2023. It was referred to the Committee on the same 
day. On March 29, 2023, the Committee met at a duly convened 
business meeting to consider S. 595 with three other bills. The 
Committee passed three of the four bills, including S. 595, en 
bloc by voice vote without amendment, and ordered the bills to 
be reported favorably.
    Representatives Leger Fernandez (D-NM), Stansbury (D-NM), 
and Vasquez (D-NM), introduced H.R. 1304, an identical 
companion bill, on March 1, 2023. On the same day, it was 
referred to the House Committee on Natural Resources. On March 
22, 2023, the bill was further referred to the Subcommittee on 
Water, Wildlife, and Fisheries. To date, the House has taken no 
further action on H.R. 1304.
    117th Congress. Senator Heinrich (D-NM) introduced S. 4898, 
a bill substantially similar to Title I of S. 595 (Pueblos of 
Acoma and Lugan Water Rights Settlement), and S. 4896, a bill 
substantially similar to Title II of S. 595 (Pueblos of Jemez 
and Zia Water Rights Settlement), in the Senate on September 
20, 2022. Both bills were referred to the Committee on Indian 
Affairs. The Committee held a hearing on the bills on November 
16, 2022. The Committee took no further action on the bills 
before the conclusion of the 117th Congress.
    Representative Leger Fernandez (D-NM) introduced H.R. 8920, 
a companion bill to S. 4898, and H.R. 8921, a companion bill to 
S. 4896, in the House on September 20, 2022. On the same day, 
H.R. 8920 and H.R. 8921 were referred to the House Committee on 
Natural Resources. The House took no further action on the 
bills before the conclusion of the 117th Congress.

       SECTION-BY-SECTION ANALYSIS OF S. 595 AS ORDERED REPORTED

Section 1--Short title; Table of Contents

    This section sets forth the short title as the ``Rio San 
Jose and Rio Jemez Water Settlements Act of 2023,'' and 
includes a table of contents.

      TITLE I--PUEBLOS OF ACOMA AND LAGUNA WATER RIGHTS SETTLEMENT

Section 101--Purposes

    This section sets forth the purposes of the bill to:
           resolve the water rights claims of the 
        Pueblo of Acoma, the Pueblo of Laguna, and the United 
        States as their trustee, in the adjudication titled 
        ``State of New Mexico, ex rel. State Engineer v. Kerr-
        McGee, et al.'';
           authorize, ratify, and confirm the Agreement 
        entered into by the Pueblos, the State, and various 
        other parties;
           authorize the Secretary to execute and 
        modify the Agreement; and
           authorize funding to implement the 
        Agreement.

Section 102--Definitions

    This section provides definitions for various terms used 
throughout the bill.

Section 103--Ratification of agreement

    This section authorizes, ratifies, and confirms the 
Agreement and conforming amendments; directs the Secretary to 
execute the Agreement, and authorizes the Secretary to make 
modifications consistent with congressional approval 
requirements and federal law. This section also requires the 
Secretary and the Pueblos to comply with federal environmental 
laws as applicable, affirms that execution of the Rio San Jose 
Agreement does not constitute a major federal action under the 
National Environmental Policy Act, and provides for the 
Pueblos' costs for related compliance activities to be paid 
from the Pueblo Trust Funds.

Section 104--Pueblo Water Rights

    This section requires the Pueblo Water Rights to be held in 
trust by the United States; protects the rights from loss 
through non-use, forfeiture, abandonment, or other operation of 
law; preserves after-acquired state-law based water rights; and 
clarifies that the rights do not include water uses or water 
rights claims on an allotment. This section also authorizes the 
Pueblos to allocate, distribute, and lease the rights on and 
off Pueblo lands; requires the Pueblos to recognize, and not 
object to, allottee water rights in any general stream 
adjudication, including the Adjudication; prohibits alienation 
and forfeiture of the Pueblo Water Rights; provides that 
authorizations of the Act satisfy the requirements for federal 
authorization of purchases or grants of land from Indians; and 
clarifies that non-use of all or any portion of the Pueblo 
Water Rights by any water user shall not result in forfeiture 
of those rights.

Section 105--Settlement Trust Funds

    This section establishes the Pueblo of Acoma Settlement 
Trust Fund, the Pueblo of Laguna Settlement Trust Fund, and the 
joint Acomita Reservoir Works Trust Fund. It also requires the 
Secretary to:
           manage the Pueblo Trust Funds in accordance 
        with the American Indian Trust Fund Management Reform 
        Act of 1994 and other federal laws governing the 
        deposit and investment of Tribal funds;
           invest the funds with earnings accruing to 
        the Pueblos; and
           make most funds available to the Pueblos on 
        the enforceability date, with certain specified funds 
        made available upon deposit.
    This section permits withdrawals from the Pueblo Trust 
Funds for certain specified purposes pursuant to a Tribal 
management plan in accordance with the American Indian Trust 
Fund Management Reform Act of 1994, or expenditure plans 
approved and enforced by the Secretary; withdrawals from the 
Acomita Reservoir Works Trust Fund may be submitted to the 
Secretary through a joint expenditure plan and subject to 
certain requirements. A right of judicial review of the 
Secretary's determination with respect to any of these plans is 
not allowed other than through the Administrative Procedures 
Act.
    This section also limits the uses for each of the Pueblos' 
accounts and Acomita Reservoir Works Trust Fund; requires 
annual reporting regarding withdrawals, and limits federal 
liability for expenditures and investments made by the Pueblos 
after withdrawal. It also prohibits per capita distribution of 
any portion of the Pueblo Trust Funds; confirms the Pueblo or 
Pueblos will retain title, control, and operation of any 
project constructed with trust funds; and makes the Pueblos 
responsible for the operation, maintenance, and replacement 
costs of such projects.

Section 106--Funding

    This section authorizes mandatory appropriations for:
           the Pueblo of Acoma Settlement Trust Fund, 
        including:
                   $296,000,000 for the Water 
                Rights Settlement Account,
                   $14,000,000 for the Water 
                Infrastructure Operations and Maintenance 
                Account, and
                   $1,750,000 for the Feasibility 
                Studies Settlement Account.
           the Pueblo of Laguna Settlement Trust Fund, 
        including:
                   $464,000,000 for the Water 
                Rights Settlement Account,
                   $26,000,000 for the Water 
                Infrastructure Operations and Maintenance 
                Account, and
                   $3,250,000 for the Feasibility 
                Studies Settlement Account; and
           the Acomita Reservoir Works Trust Fund, in 
        the amount of $45,000,000.
    This section also provides for adjustments of the Pueblo 
Trust Funds to address cost fluctuation and market volatility, 
and requires the State of New Mexico to contribute a cost share 
of $36,000,000.

Section 107--Enforceability date

    This section requires the Secretary of the Interior to 
publish a statement of findings in the Federal Register to 
render the settlement agreement enforceable.

Section 108--Waivers and releases of claims

    This section requires the parties to execute waivers and 
releases of claims related to the Pueblos' water rights, while 
reserving certain rights and retaining certain claims. This 
section also preserves the sovereignty and jurisdiction of the 
government entities; preserves the United States' authority to 
fulfill its trust responsibilities and enforce its laws, 
including environmental and jurisdictional laws; clarifies that 
the Act does not waive claims relating to quality of water and 
the environment under various federal laws or individual Tribal 
member claims; preserves claims relating to hunting, fishing, 
gathering, or cultural rights; and states that the Act does not 
confer jurisdiction on any state court to interpret federal 
health, safety, or environmental laws or determine the duties 
of any party thereunder, or conduct judicial review of any 
federal agency action.
    This section further provides for tolling of claims and 
defenses between the enactment and enforceability dates, and 
provides for termination of the agreement if the Secretary's 
statement of findings is not issued by July 1, 2030, or a later 
date mutually agreed upon by the Pueblos and the United States 
with notice to the State. This section also provides for the 
consequences of such termination.

Section 109--Satisfaction of claims

    This section provides that benefits realized under the Act 
shall serve as full satisfaction of any claim of the Pueblos 
against the United States that the Pueblos waive and release 
under the Act.

Section 110--Consent of United States to jurisdiction for judicial 
        review of a Pueblo Water Right permit decision

    This section provides the United States' consent to the 
limited jurisdiction of the District Court for the Thirteenth 
Judicial District of the State of New Mexico, the New Mexico 
Court of Appeals, and the New Mexico Supreme Court to provide 
judicial review in an action appealing a Pueblo Water Right 
Permit decision under the Agreement, and sets standards for 
such review.

Section 111--Miscellaneous provisions

    This section affirms the federal government's sovereign 
immunity is not waived, states that the land and water rights 
of allottees and other Tribes are not quantified or diminished, 
and confirms that the Act does not affect laws or regulations 
in effect prior to enactment regarding pre-enforcement review 
of federal environmental enforcement actions. This section also 
provides that the Act controls over the Agreement in the event 
of a conflict.

Section 112--Antideficiency

    This section states that the United States shall not be 
liable for failure to perform if adequate appropriations are 
not provided by Congress.

       TITLE II--PUEBLOS OF JEMEZ AND ZIA WATER RIGHTS SETTLEMENT

Section 201--Purposes

    This section sets forth the 4-fold purpose of the bill to: 
(1) resolve the water rights claims of the Pueblo of Jemez, the 
Pueblo of Zia, and the United States as their trustee, in the 
Jemez River Stream System; (2) authorize, ratify, and confirm 
the Agreement entered into by the Pueblos, the State, and 
various other parties; (3) authorize the Secretary to execute 
and carry out the Agreement; and (4) authorize funding to 
implement the Agreement.

Section 202--Definitions

    This section provides definitions for various terms used 
throughout the bill.

Section 203--Ratification of Agreement

    This section authorizes, ratifies, and confirms the 
Agreement and conforming amendments; directs the Secretary to 
execute the Agreement, and authorizes the Secretary to make 
modifications consistent with congressional approval 
requirements and federal law. This section also requires the 
Secretary and the Pueblos to comply with federal environmental 
laws as applicable, affirms that execution of the Agreement 
does not constitute a major federal action under the National 
Environmental Policy Act, and provides for the Pueblos' costs 
for related compliance activities to be paid from the Pueblo 
Trust Funds.

Section 204--Pueblo Water Rights

    This section requires the Pueblo Water Rights to be held in 
trust by the United States; protects the rights from loss 
through non-use, forfeiture, abandonment, or other operation of 
law; preserves after-acquired state-law based water rights; and 
clarifies that use of the Pueblo Water Rights shall be subject 
to the terms and conditions of the Agreement and the Act. This 
section also authorizes the Pueblos to allocate, distribute, 
and lease the rights on and off Pueblo lands; prohibits 
alienation and forfeiture of the Pueblo Water Rights; and 
provides that authorizations of the Act satisfy the 
requirements for federal authorization of purchases or grants 
of land from Indians.

Section 205--Settlement Trust Funds

    This section establishes the Pueblo of Jemez Settlement 
Trust Fund and the Pueblo of Zia Settlement Trust Fund, and it 
requires the Secretary to:
           manage the Pueblo Trust Funds in accordance 
        with the American Indian Trust Fund Management Reform 
        Act of 1994 and other federal laws governing the 
        deposit and investment of Tribal funds;
           invest the funds with earnings accruing to 
        the Pueblos; and
           make most funds available to the Pueblos on 
        the enforceability date, with $25,000,000 made 
        available immediately to each Pueblo for designated 
        purposes.
    This section permits withdrawals from the Pueblo Trust 
Funds for certain specified purposes pursuant to Tribal 
management or expenditure plans approved and enforced by the 
Secretary, requires annual reporting regarding withdrawals, and 
limits federal liability for expenditures and investments made 
by the Pueblos after withdrawal. It also prohibits per capita 
distribution of any portion of the Pueblo Trust Funds; confirms 
the Pueblos will retain title, control, and operation of any 
project constructed with trust funds; and makes the Pueblos 
responsible for the operation, maintenance, and replacement 
costs of such projects.

Section 206--Funding

    This section authorizes mandatory appropriations of 
$290,000,000 for the Pueblo of Jemez Settlement Trust Fund and 
$200,000,000 for the Pueblo of Zia Settlement Trust Fund. This 
section also provides for adjustments of the Pueblo Trust Funds 
to address cost fluctuation and market volatility, and requires 
the State of New Mexico to contribute a cost share of 
$20,059,000.

Section 207--Enforceability date

    This section requires the Secretary of the Interior to 
publish a statement of findings in the Federal Register to 
render the settlement agreement enforceable.

Section 208--Waivers and releases of claims

    This section requires the parties to execute waivers and 
release claims related to the Pueblos' water rights, while 
reserving certain rights and retaining certain claims. This 
section also preserves the sovereignty and jurisdiction of the 
government entities; preserves the United States' authority to 
fulfill its trust responsibilities and enforce its laws, 
including environmental and jurisdictional laws; clarifies that 
the Act does not waive claims relating to quality of water and 
the environment under various federal laws or individual Tribal 
member claims; preserves claims relating to hunting, fishing, 
gathering, or cultural rights; and states that the Act does not 
confer jurisdiction on any state court to interpret federal 
health, safety, or environmental laws or determine the duties 
of any party thereunder, or conduct judicial review of any 
federal agency action.
    This section further provides for tolling of claims and 
defenses between the enactment and enforceability dates, and 
provides for termination of the agreement if the Secretary's 
statement of findings is not issued by July 1, 2030, or a later 
date mutually agreed upon by the Pueblos and the United States 
with notice to the State. This section also provides for the 
consequences of such termination.

Section 209--Satisfaction of claims

    This section provides that benefits realized under the Act 
shall serve as full satisfaction of any claim of the Pueblos 
against the United States that the Pueblos waive and release 
under the Act.

Section 210--Miscellaneous provisions

    This section affirms the federal government's sovereign 
immunity is not waived, states that the land and water rights 
of other Tribes are not quantified or diminished, and confirms 
that the Act does not affect laws or regulations in effect 
prior to enactment regarding pre-enforcement review of federal 
environmental enforcement actions. This section also provides 
that the Act controls over the Agreement in the event of a 
conflict.

Section 211--Antideficiency

    This section states that the United States shall not be 
liable for failure to perform if adequate appropriations are 
not provided by Congress.

                   COST AND BUDGETARY CONSIDERATIONS



    The bill would:
           Secure water rights for four Pueblo tribes 
        in New Mexico by ratifying agreements among various 
        parties
           Establish and appropriate funds for five 
        trust funds to be administered by the Department of the 
        Interior until their transfer to the Pueblo tribes
    Estimated budgetary effects would mainly stem from:
           Transfer of the trust funds' ownership to 
        the Pueblo tribes
    Areas of significant uncertainty include:
           Anticipating when the water right 
        settlements would be finalized
    Bill Summary: S. 595 would secure about 30,000 acre-feet of 
water annually for four Pueblo tribes in NewMexico by ratifying 
two agreements:
           The Rio San Jose Stream System Water Rights 
        Local Settlement Agreement, reached in 2022 between the 
        Pueblo of Acoma, the Pueblo of Laguna, the Navajo 
        Nation, the State of New Mexico, and other parties, 
        would secure 20,200 acre-feet of water annually for the 
        Pueblos of Acoma and Laguna.
           The Pueblos of Jemez and Zia Water Rights 
        Settlement Agreement, reached in 2022 between the 
        Pueblo of Jemez, the Pueblo of Zia, the State of New 
        Mexico, and other parties, would secure 9,800 acre-feet 
        of water annually for those tribes.
    The bill would provide appropriations to capitalize five 
different trust funds and those trust funds would accrue 
interest during the period they are administered by the 
Department of the Interior (DOI). Once the parties to the 
settlements have satisfied specified conditions, the federal 
government would transfer ownership of each trust fund, 
including interest credited to the fund, to the relevant tribe 
for use in developing, constructing, and maintaining water 
projects.
    Estimated Federal cost: The estimated budgetary effect of 
S. 595 is shown in Table 1. The costs of the legislation fall 
within budget function 300 (natural resources and environment).
    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted by the end of calendar year 2023 and that 
the amounts appropriated will be deposited into the trust funds 
soon thereafter.
    Using information from DOI about specifications in the 
bill, CBO expects that the following conditions would be met 
seven years after enactment:
           All settlements, including amendments 
        required to conform to the bill would be final and 
        executed,
           All waivers and releases of claims required 
        under the bill would be executed,
           All appeals would have been exhausted and 
        the courts would have approved agreements as binding on 
        all parties, and
           The State of New Mexico would have 
        contributed to or entered into funding agreements for 
        the required amounts.
    CBO expects that DOI would publish findings in the Federal 
Register for each settlement, stating that the bill's 
conditions have been met and that ownership of the trust funds 
is to be transferred.

                                              TABLE 1.--ESTIMATED INCREASES IN DIRECT SPENDING UNDER S. 595
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                        By fiscal year, millions of dollars--
                                                           ---------------------------------------------------------------------------------------------
                                                             2024    2025   2026   2027   2028   2029   2030    2031   2032   2033  2024-2028  2024-2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pueblos of Acoma and Laguna Settlement Trust Funds:
  Estimated Budget Authority..............................     901      0      0      0      0      0       0      0      0      0       901        901
  Estimated Outlays.......................................      11     13     17     14     14     14     818      0      0      0        69        901
Interest Credited to the Trust Funds:
  Estimated Budget Authority..............................      31     32     24     24     24     25      19      0      0      0       135        179
  Estimated Outlays.......................................       0      0      0      0      0      0     179      0      0      0         0        179
  Subtotal:
    Estimated Budget Authority............................     932     32     24     24     24     25      19      0      0      0     1,036      1,080
    Estimated Outlays.....................................      11     13     17     14     14     14     997      0      0      0        69      1,080
Pueblos of Jemez and Zia Settlement Trust Funds:
  Estimated Budget Authority..............................     519      0      0      0      0      0       0      0      0      0       519        519
  Estimated Outlays.......................................      10      8      8      8      8      8     469      0      0      0        42        519
Interest Credited to the Trust Funds:
  Estimated Budget Authority..............................      17     18     13     14     14     14      14      0      0      0        76        104
  Estimated Outlays.......................................       0      0      0      0      0      0     104      0      0      0         0        104
  Subtotal:
  Estimated Budget Authority..............................     536     18     13     14     14     14      14      0      0      0       595        623
  Estimated Outlays.......................................      10      8      8      8      8      8     573      0      0      0        42        623
  Total Increases:
    Estimated Budget Authority............................   1,468     50     37     38     38     39      33      0      0      0     1,631      1,703
    Estimated Outlays.....................................      21     21     25     22     22     22   1,570      0      0      0       111      1,703
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO estimates that implementing S. 595 would increase spending subject to appropriation by less than $500,000 in every year and would total $2 million
  over the 2024-2028 period.


    Direct spending: CBO estimates that enacting S. 595 would 
increase direct spending by $1.7 billion over the 2024-2033 
period.
    Pueblos of Acoma and Laguna Settlement Trust Funds: Title I 
would establish one trust fund for each tribe and a third fund 
for the benefit of both tribes. The amounts in the trust funds 
would be capitalized with appropriations totaling $850 million, 
distributed as follows:
           $312 million for the Pueblo of Acoma 
        Settlement Trust Fund, consisting of the Water Rights 
        Settlement Account ($296 million), a Water 
        Infrastructure Operations and Maintenance Account ($14 
        million), and a Feasibility Studies Settlement Account 
        ($2 million);
           $493 million for the Pueblo of Laguna 
        Settlement Trust Fund, consisting of the Water Rights 
        Settlement Account ($464 million), a Water 
        Infrastructure Operations and Maintenance Account ($26 
        million), and a Feasibility Studies Settlement Account 
        ($3 million); and
           $45 million for the Acomita Reservoir Works 
        Trust Fund, consisting of the Water Rights Settlement 
        Account.
    Title I would appropriate whatever amounts are necessary to 
account for inflation from October 2021 through the time those 
amounts are deposited into each trust fund. Based on the 
assumption that the bill will be enacted by the end of calendar 
year 2023, CBO estimates that the amount for inflation would be 
$51 million; thus, the total appropriation would be $901 
million.
    Under the bill, the Acoma and Laguna Pueblos would have 
immediate access to $80 million from the funds to use for 
feasibility studies, installing groundwater wells, and 
construction projects to rehabilitate and expand the Acomita 
reservoir, dam, and water conveyance infrastructure. The 
federal government would retain ownership of the remaining 
amounts until 2030, when CBO expects that all settlement 
conditions will be satisfied. Interest would be credited to the 
deposited amounts.
    In 2030, the federal government would transfer ownership of 
the trust funds to the tribes; those transfers (including 
credited interest) would be considered federal expenditures. 
Based on CBO's projections of interest rates and on an 
assumption that all conditions will be met by 2030, CBO 
estimates that $997 million would be transferred in 2030; $179 
million of that amount would be for interest credited to the 
trust funds. On that basis, CBO estimates that enacting title I 
would increase direct spending by $1.1 billion over the 2024-
2033 period.
    The federal government would retain fiduciary 
responsibility over the trust funds until the tribes are ready 
to acquire water rights and to plan, design, build, and 
maintain water projects; those subsequent actions would not 
affect the federal budget.
    Pueblos of Jemez and Zia Settlement Trust Funds: Title II 
would establish an interest-bearing trust fund for each tribe, 
capitalized with appropriations of $290 million for the Pueblo 
of Jemez Settlement Trust Fund and $200 million for the Pueblo 
of Zia Settlement Trust Fund. Title II would appropriate 
whatever amounts are necessary to account for inflation from 
October 2021 through the time those amounts are deposited into 
each fund. Based on the assumption that the bill will be 
enacted by the end of calendar year 2023, CBO estimates that 
amount for inflation would be $29 million; thus, the total 
appropriation would be $519 million.
    Under the bill, the Jemez and Zia Pueblos would have 
immediate access to $50 million for developing economic water 
plans, preparing environmental documents, and designing and 
installing groundwater wells. The federal government would 
retain ownership of the remaining amounts until 2030, when CBO 
expects that all settlement conditions will be satisfied. 
Interest would be credited to the deposited amounts.
    In 2030, the federal government would transfer ownership of 
the trust funds to the tribes; those transfers (including 
credited interest) would be considered federal expenditures. 
Based on CBO's projections of interest rates and the assumption 
that all of the conditions will be met by 2030, CBO estimates 
that $573 million would be transferred to the tribes in 2030; 
$104 million would be for interest credited to the account. 
Accordingly, CBO estimates that enacting title II would 
increase direct spending by $623 million over the 2024-2033 
period.
    The federal government would retain fiduciary 
responsibility over the contents of the trust funds until the 
money is needed by the tribes to design, rehabilitate, and 
construct water projects for domestic, municipal, and 
agricultural use; those subsequent actions would not affect the 
federal budget.
    Spending subject to appropriation: DOI would incur 
administrative costs to implement S. 595, such as overseeing 
environmental and technical compliance during construction 
projects. Using information about average costs for other water 
settlements, CBO estimates that the annual cost of those 
activities would be less than $500,000 and would total $2 
million over the 2024-2028 period; any spending would be 
subject to the availability of appropriated funds.
    Nonbudgetary effects: The settlements would require New 
Mexico to contribute $36 million for the Pueblos of Acoma and 
Laguna Water Rights Settlement and $20 million for the Pueblos 
of Jemez and Zia Water Rights Settlement. Generally, when the 
federal government takes control of assets that belong to other 
entities, those amounts are considered nonbudgetary and their 
collection and disbursement does not affect the deficit.
    Uncertainty: This estimate is subject to uncertainty 
because the amount of interest credited to each fund will 
depend on when the water settlements are finalized. S. 595 
allows the parties to delay the finalization of the settlements 
if additional time is needed to satisfy the required 
conditions. Thus, interest credited to the funds could be lower 
if the settlements are finalized earlier than CBO anticipates 
or higher if those settlements are finalized after 2030.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The changes in outlays that are subject to those pay-
as-you-go procedures are shown in Table 2.

   TABLE 2.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF S. 595, THE RIO SAN JOSE AND RIO JEMEZ WATER SETTLEMENTS ACT OF 2023, AS ORDERED
                                          REPORTED BY THE SENATE COMMITTEE ON INDIAN AFFAIRS ON MARCH 29, 2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2024    2025    2026    2027    2028    2029    2030    2031    2032    2033   2024-2028  2024-2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 INCREASE IN THE DEFICIT
 
Pay-As-You-Go Effect..............................      21      21      25      22      22      22   1,570       0       0       0       111      1,703
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term net direct spending and deficits: CBO 
estimates that enacting S. 595 would not increase net direct 
spending or deficits in any of the four consecutive 10-year 
periods beginning in 2034.
    Mandates: The bill contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act.
    Estimate prepared by: Federal costs: Aurora Swanson; 
Mandates: Rachel Austin.
    Estimate reviewed by: Ann E. Futrell, Senior Adviser for 
Budget Analysis; Kathleen FitzGerald, Chief, Public and Private 
Mandates Unit; H. Samuel Papenfuss, Deputy Director of Budget 
Analysis.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.

               REGULATORY AND PAPERWORK IMPACT STATEMENT

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires each report accompanying a bill to evaluate the 
regulatory and paperwork impact that would be incurred in 
carrying out the bill. The Committee believes that S. 595 will 
have minimal impact on regulatory or paperwork requirements.

                        EXECUTIVE COMMUNICATIONS

    The Committee has received no communications from the 
Executive Branch regarding S. 595.

                        CHANGES IN EXISTING LAW

    On February 9, 2023, the Committee unanimously approved a 
motion to waive subsection 12 of rule XXVI of the Standing 
Rules of the Senate. In the opinion of the Committee, it is 
necessary to dispense with subsection 12 of rule XXVI of the 
Standing Rules of the Senate to expedite the business of the 
Senate.