[Senate Report 118-131]
[From the U.S. Government Publishing Office]
Calendar No. 274
118th Congress } { Report
SENATE
1st Session } { 118-131
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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\
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\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.
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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\
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\4\Id.
\5\Id.
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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.
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\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.
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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\
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\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).
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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.
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\12\Id.
\13\Id.
\14\Id.
\15\Id.
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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
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By fiscal year, millions of dollars--
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2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024-2028 2024-2033
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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
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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
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By fiscal year, millions of dollars--
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2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024-2028 2024-2033
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INCREASE IN THE DEFICIT
Pay-As-You-Go Effect.............................. 21 21 25 22 22 22 1,570 0 0 0 111 1,703
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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.