[Senate Report 118-263]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 665

118th Congress }                                             { Report
                                 SENATE                          
 2nd Session   }                                             { 118-263

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



 
             A BILL TO  APPROVE  THE  SETTLEMENT  OF  WATER
              RIGHTS CLAIMS OF THE NAVAJO NATION IN THE RIO
              SAN JOSE STREAM  SYSTEM  IN  THE STATE OF NEW
              MEXICO, AND FOR OTHER PURPOSES

                                _______
                                

                December 4, 2024.--Ordered to be printed

                                _______
                                

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


                              R E P O R T

                         [To accompany S. 4998]

    The Committee on Indian Affairs, to which was referred the 
bill (S. 4998) to approve the settlement of water rights claims 
of the Navajo Nation in the Rio San Jose 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

    S. 4998 would resolve all outstanding water claims in the 
Rio San Jose Basin in New Mexico that could be brought by the 
Navajo Nation or by the United States, in its capacity as 
trustee for the Navajo Nation, and would achieve finality with 
respect to all those claims. The bill would authorize, ratify, 
and confirm the June 11, 2024 addendum to the May 13, 2022 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.

                          BACKGROUND AND NEED

    The Rio Grande Basin spans 335,500 square miles across 
Colorado, Texas, New Mexico, and five states in Mexico. The Rio 
Grande River flows 1,896 miles from its headwaters in the San 
Juan Mountains in Colorado over four Rio Grande sub-basins 
(Upper, Middle, Lower, and Pecos) to Mexico. As it flows 
through New Mexico across the Middle Rio Grande Basin, the 
river continues through three sub-basins: the Rio San Jose, Rio 
Puerco, and Rio Salado.
    The Navajo Nation Reservation (Reservation) in New Mexico 
encompasses 31 Chapters\1\ and is home to approximately 122,000 
of the 399,494 total enrolled Tribal members (as of 2021).\2\ 
Approximately 41,000 acres of land are held in trust for the 
Navajo Nation within the Rio San Jose sub-basin and 35,500 
acres of land are held in trust within the Rio Puerco sub-
basin.\3\ Nine Chapters are located in the Rio San Jose sub-
basin (Baca/Prewitt, Casamero Lake, Crownpoint, Littlewater, 
Mariano Lake, Ramah, Smith Lake, Thoreau, Tohajiilee) and seven 
Chapters are located in the Rio Puerco sub-basin (Tohajiilee, 
Torreon, Ojo Encino, Pueblo Pintado, Whitehorse Lake, 
Counselor, and Littlewater).\4\ Approximately 7,500 Navajo 
Nation citizens live in these two sub-basins.\5\
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    \1\The Navajo Nation is divided up geographically into five Tribal 
agencies, each of which contains local political subdivisions called 
Chapters, which are similar in function to counties or municipalities. 
Currently, there are 110 Chapters spanning three states, each with its 
own local governance organized through a Chapter house and Chapter 
officials. Navajo Nation, Off. of Mgmt. & Budget, Organizational Chart 
(2024), https://www.omb.navajo-nsn.gov/About-Us/Navajo-Nation-
Organizational-Chart-w-Links.
    \2\Arlyssa Becenti, Dine Enrolled Population Increases to 399,494, 
Navajo Times, Apr. 26, 2021.
    \3\Navajo Nation Rio San Jose Stream System Water Rights Settlement 
Act of 2024: Hearing to Receive Testimony on H.R. 8945 Before the House 
Nat. Res. Subcomm. on Water, Wildlife and Fisheries, 118th Cong. 2 
(2024) (statement of Dr. Buu Nygren, President, Navajo Nation).
    \4\Northeastern Arizona Indian Water Rights Settlement Act of 2024: 
Hearing to Receive Testimony on S. 4998 Before the S. Comm. on Indian 
Affrs., 118th Cong. 2 (2024) (statement of Dr. Buu Nygren, President, 
Navajo Nation).
    \5\Id.
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    The Navajo Nation Chapters in the Rio San Jose and Rio 
Puerco sub-basins are primarily reliant on intermittent surface 
flows and groundwater supplies. Surface flows are highly 
variable throughout the year, making groundwater a critical 
resource for water security in the region. However, extensive 
groundwater demands by non-Indian water users, combined with 
long-term drought conditions and changes in summer monsoons and 
winter snowmelt, have reduced the supply of water available to 
the Navajo Nation in the Rio San Jose and Rio Puerco sub-
basins.
    And while the Navajo Nation has water rights senior to the 
majority of non-Indian users in the basins, it is facing water 
shortages that impact its ability to provide sustainable water 
for its current and future water needs.\6\ The Navajo Nation 
seeks funding as part of the proposed settlement to develop its 
water resources various uses, including domestic and municipal 
purposes for current and future Tribal populations.
---------------------------------------------------------------------------
    \6\An estimated 23 percent of Tribal residences do not have running 
water on the Navajo Nation in New Mexico. Navajo Nation and Committee 
staff communication (on file with the Committee); see Richard Tsong-
Taatarii, On the Navajo Nation, a Life Without Water, Searchlight N.M. 
(Nov. 29, 2023), https://searchlightnm.org/on-the-navajo-nation-a-life-
without-water (describing the circumstances faced by Tribal residents 
on the Navajo Nation in New Mexico who do not have running water in 
their homes).
---------------------------------------------------------------------------
    Legislation (S. 595) is currently pending to resolve the 
water rights claims of Acoma and Laguna Pueblos in the Rio San 
Jose sub-basin. S. 4998 would approve a conditional settlement 
of Navajo Nation claims in the Rio Puerco Basin. If both S. 595 
and S. 4998 are enacted, all known Tribal water rights claims 
in the Rio San Jose sub-basin would be resolved.

                 SUMMARY OF S. 4998 AS ORDERED REPORTED

    S. 4998 would settle the Navajo Nation's water rights 
within the Rio San Jose Basin in New Mexico, and authorize 
$223.271 million in mandatory funding, to be indexed, for the 
Navajo Nation Rio San Jose Water Rights Settlement Trust Fund 
for water-related infrastructure projects. As part of this 
funding, S. 4998 would establish two subaccounts within the 
trust fund:
           the Navajo Nation Water Settlements Account 
        ($200.271 million); and
           the Navajo Nation Operations and Maintenance 
        Account ($23 million).
    This funding will support two separate projects to address 
water shortages by importing much-needed, high-quality water to 
Navajo Nation Chapters in the Rio Puerco and Rio San Jose 
Basins. The Rio San Jose Regional Water Supply Project will 
import water from the San Juan River through the Navajo Gallup 
Water Supply Project, in coordination with the Bureau of 
Reclamation. The Tohajiilee Waterline Phase 1 will import water 
from the Middle Rio Grande Basin to the Rio Puerco Basin.
    The bill would also require the State of New Mexico to 
contribute $3 million for the Bluewater Toltec Irrigation 
District and Acequia Madre del Ojo del Gallo to carry out the 
Agreement, and additional funding, if applicable, to mitigate 
impacts to the acequias of Navajo Nation and Pueblo water 
development.

       SECTION-BY-SECTION ANALYSIS OF S. 4998 AS ORDERED REPORTED

Section 1--Short title; table of contents

    Section 1(a) sets forth the short title of the bill as the 
``Navajo Nation Rio San Jose Stream System Water Rights 
Settlement Act of 2024.''
    Section 1(b) sets forth the table of contents.

Section 2--Purposes

    This section sets forth the four-fold purpose of the bill 
to:
           Achieve a fair, equitable, and final 
        settlement of all water rights claims in the Rio San 
        Jose Stream System of New Mexico for the Navajo Nation 
        and the United States as its trustee;
           Authorize, ratify, and confirm the Rio San 
        Jose Stream System Water Rights Local Settlement 
        Agreement (Agreement) entered into by the Navajo 
        Nation, the State of New Mexico, and other parties;
           Authorize and direct the Secretary of the 
        Interior to execute and carry out the Agreement; and
           Authorize funding to implement the 
        Agreement.

Section 3--Definitions

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

Section 4--Ratification of agreement

    Section 4(a)-(b) authorizes, ratifies, and confirms the 
Agreement and conforming amendments; directs the Secretary of 
the Interior to execute the Agreement, including attachments, 
and authorizes the Secretary of the Interior to make 
modifications consistent with congressional approval 
requirements and federal law.
    Section 4(c) requires the Secretary of the Interior and the 
Navajo Nation to comply with federal environmental laws as 
applicable; requires the Secretary of the Interior to evaluate 
and be responsible for the Navajo Nation's documentation 
related to environmental compliance; affirms that execution of 
the Agreement does not constitute a major federal action under 
the National Environmental Policy Act; and provides for the 
Navajo Nation's costs for environmental compliance activities 
to be paid from the Navajo Nation Rio San Jose Water Rights 
Settlement Trust Fund, or other sources of funding from the 
Navajo Nation, subject to certain conditions.

Section 5--Navajo Nation's water rights

    Section 5(a) requires the water rights of the Navajo 
Nation, as set out in the Agreement and this bill, to be held 
in trust by the United States.
    Section 5(b)-(g) protects the water rights of the Navajo 
Nation, as set out in the Agreement, from loss through non-use, 
forfeiture, or abandonment; ensures allotment rights in the Rio 
Puerco Basin or the Rio San Jose Basin are not included; 
ensures Indian allottees are not adversely affected by this 
bill; and authorizes uses of water rights for the Navajo 
Nation, including the allocation, distribution, or lease of 
water on and off of Navajo lands for a maximum lease term of 99 
years.
    Section 5(h) prohibits the permanent alienation or 
forfeiture of Navajo Nation water rights quantified in this 
bill and the clarifies forbearance of Navajo water rights and 
non-stock water rights of certain allotments in the Rio Puerco 
Basin and the Rio San Jose Basin as non-use that is not subject 
to permanent alienation or forfeiture by the Navajo Nation.

Section 6--Navajo Nation Rio San Jose Settlement Trust Fund

    Section 6(a) directs the Secretary to establish an 
interest-bearing trust fund, the Navajo Nation Rio San Jose 
Water Rights Settlement Trust Fund, to be managed and used by 
the Secretary of the Interior to carry out this bill.
    Section 6(b) directs the Secretary to establish two 
accounts in Navajo Nation Rio San Jose Water Rights Settlement 
Trust Fund: (1) the Navajo Nation Water Settlements Account; 
and (2) the Navajo Nation Operations and Maintenance Account.
    Section 6(c) requires the Secretary of the Interior to 
deposit $223.271 million, consisting of the following amounts, 
into the Navajo Nation Rio San Jose Water Rights Settlement 
Trust Fund under the two authorized accounts: (1) the Navajo 
Nation Water Settlements Account ($200.271 million); and (2) 
the Navajo Nation Operations and Maintenance Account ($23 
million).
    Section 6(d) outlines conditions for the management, 
investment, and distribution of the Navajo Nation Rio San Jose 
Water Rights Settlement Trust Fund, and authorizes the 
appropriation of any investment earnings for authorized uses.
    Section 6(e) requires the Secretary of the Interior to make 
funds deposited in the Navajo Nation Rio San Jose Water Rights 
Settlement Trust Fund, including any investment earnings, 
available beginning on the enforceability date, with the 
exception of $15 million from the Navajo Nation Water Rights 
Settlement Account, which, together with any investment 
earnings and interest, shall be available upon the date of 
deposit for specific planning, compliance, and immediate 
purpose uses.
    Section 6(f) permits withdrawals from the Navajo Nation Rio 
San Jose Water Rights Settlement Trust Fund for certain 
specified purposes pursuant to a Tribal management and 
expenditure plans submitted by the Navajo Nation and approved 
and enforced by the Secretary of the Interior in accordance 
with the American Indian Trust Fund Management Reform Act of 
1994, provided that the Navajo Nation spend all amounts 
withdrawn, including investment earnings, on specified 
purposes, and clarifies that the Secretary of the Interior may 
carry out judicial and administrative actions as necessary to 
enforce an expenditure or management plan.
    Section 6(g) clarifies that the Secretary of the Interior's 
decision to approve a Tribal management or expenditure plan is 
final and not subject to judicial review, except under the 
Administrative Procedure Act.
    Section 6(h) authorizes two specific uses of the Navajo 
Nation Rio San Jose Water Rights Settlement Trust Fund 
according to each authorized account: (1) the Navajo Nation 
Water Rights Settlement Account for acquiring water rights or 
supply; for planning, engineering, constructing, operating, or 
repairing water infrastructure for domestic, municipal, or on-
farm uses; for water rights management and administration; for 
watershed protection, agriculture, community welfare, economic 
development, and implementation costs; and for environmental 
compliance; and (2) the Navajo Nation Operations and 
Maintenance Account: for operations, maintenance, and 
replacement costs of water infrastructure to serve domestic, 
commercial, municipal, and industrial water uses.
    Section 6(i) limits federal liability for expenditures and 
investments of amounts withdrawn from the Navajo Nation Rio San 
Jose Water Rights Settlement Trust Fund under Section 6(f).
    Section 6(j) requires the Navajo Nation to submit an annual 
expenditure report to the Secretary of the Interior regarding 
withdrawals from the Navajo Nation Water Settlement Trust Fund 
under an approved Tribal management or expenditure plan.
    Section 6(k) prohibits per capita distribution of any 
portion of the Navajo Nation Rio San Jose Water Rights 
Settlement Trust Fund to any member of the Navajo Nation.
    Section 6(l) confirms that the Navajo Nation shall retain 
title, control, and operation of any project infrastructure 
constructed with funds from the Navajo Nation Rio San Jose 
Water Rights Settlement Trust Fund.
    Section 6(m) clarifies that all operation, maintenance, and 
replacement costs of any project infrastructure constructed 
with funds from the Navajo Nation Rio San Jose Water Rights 
Settlement Trust Fund will be the responsibility of the Navajo 
Nation.

Section 7--Funding

    Section 7(a) authorizes $223.271 million in mandatory 
appropriations, consisting of the following amounts, into the 
Navajo Nation Rio San Jose Water Rights Settlement Trust Fund, 
under the two authorized accounts: (1) the Navajo Nation Water 
Settlements Account ($200.271 million); and (2) the Navajo 
Nation Operations and Maintenance Account ($23 million).
    Section 7(b) provides for adjustments of the amounts 
appropriated under Section 7(a), to be deposited into the 
Navajo Nation Rio San Jose Water Rights Settlement Trust Fund, 
to address cost fluctuation and market volatility between 
October 1, 2021 and the date of deposit.
    Section 7(c) requires the State of New Mexico to contribute 
$3 million for the Bluewater Toltec Irrigation District and the 
Acequia Madre del Ojo del Gallo for purposes described in the 
Agreement, and additional funding if applicable under the 
Agreement.

Section 8--Enforceability date

    This section establishes the enforceability date as the day 
on which the Secretary of the Interior publishes a statement of 
findings, including enumerated requirements, in the Federal 
Register.

Section 9--Waivers and releases of claims

    Section 9(a) requires the Navajo Nation and the United 
States, acting as trustee for the Navajo Nation (but not Navajo 
Nation allottees), to execute waivers and releases of claims 
for water rights within the Rio San Jose Basin and clarifies 
that such waivers and releases cover issues arising on or 
before the enforceability date.
    Section 9(b) requires the Navajo Nation to execute waivers 
and releases of claims against the United States, including its 
agencies and employees, for water rights and injury to water 
rights in the Rio San Jose Basin arising before the 
enforceability date.
    Section 9(c) clarifies that the waivers and releases 
described in this section take effect on the enforceability 
date.
    Section 9(d) reserves the Navajo Nation's and the United 
States' right to assert certain claims not expressly waived in 
sections 9(a) and 9(b).
    Section 9(e) clarifies that nothing in the Agreement or 
this bill affects the sovereignty of the United States or the 
Navajo Nation; affects their ability to carry out actions 
certain environmental laws or associated regulations; affects 
the ability of the United States to act as trustee for the 
Navajo Nation or any other Tribe or allottee; confers 
jurisdiction on any State court; or waives any claim of members 
of the Navajo Nation in their individual capacities.
    Section 9(f) authorizes the United States to offset $20 
million against any judgement against the United States for 
water rights claims in the Rio Puerco Basin, or for a Federal 
contribution to a future settlement of the Navajo Nation's 
water rights in the Rio Puerco Basin.
    Section 9(g) provides for tolling of claims and defenses 
between the enactment and enforceability dates.
    Section 9(h) provides for termination of the Agreement, 
expiration of this bill, and return of unexpended funds to the 
Federal Government if the Secretary of the Interior's statement 
of findings is not issued by July 1, 2030, or a later date 
mutually agreed upon by the Navajo Nation and the United States 
with reasonable notice to the State of New Mexico.

Section 10--Satisfaction of claims

    This section provides that benefits realized under this 
bill shall serve as full satisfaction of any claim of the 
Navajo Nation against the United States that the Navajo Nation 
waives and releases under the bill.

Section 11--Consent of United States to jurisdiction for judicial 
        review of a Navajo Nation Water Use Permit decision

    Section 11(a)-(c) provides consent from the United States, 
subject to the Navajo Nation providing its consent consistent 
with the Agreement, on the enforceability date for the State of 
New Mexico to exercise judicial review of a Navajo Nation Water 
Use Permit, and provides for consideration of the Navajo Nation 
Water Code and Navajo Water Law in state court proceedings.

Section 12--Miscellaneous provisions

    Section 12(a)-(d) affirms that nothing in the bill waives 
the United States' sovereign immunity, quantifies or diminishes 
land and water rights of other Tribes, affects laws or 
regulations in effect prior to enactment regarding pre-
enforcement review of federal environmental enforcement 
actions; and provides that the bill controls over the Agreement 
in the event of a conflict.

Section 13--Relation to allottees

    Section 13(a)-(b) clarifies that nothing in the bill or the 
Agreement affects the rights or claims of Navajo allottees, the 
United States as trustee for Navajo allottees, or allotments.

Section 14--Expansion of the Navajo-Gallup Water Supply Project Service 
        Area

    Section 14(a)-(c) expands the Service Area of the Navajo-
Gallup Water Supply Project\7\ to Navajo communities in the Rio 
San Jose Basin in New Mexico, subject to approval from the 
Commissioner of Reclamation.
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    \7\The Navajo-Gallup Water Supply Project was authorized by the 
Northwestern New Mexico Rural Water Projects Act in Public Law 111-11, 
which settled the Navajo Nation's water right claims in the San Juan 
River Basin in New Mexico and provided for the construction of a 
pipeline, and associated infrastructure, to serve Navajo communities in 
New Mexico and Arizona, the City of Gallup, and the southwestern 
portion of the Jicarilla Apache Nation. Omnibus Pub. Land Mgmt. Act of 
2009, Sec. Sec. 10601 et seq., 10701 et seq., 83, Stat. 991, 1379 
(2009). Related legislation would also expand the Service Area to 
Navajo communities within the Rio San Jose Basin in New Mexico and the 
Navajo community of Lupton, Arizona within the Little Colorado River 
Basin in Arizona. S. 1898, 118th Cong. (2024).
---------------------------------------------------------------------------

Section 15--Antideficiency

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

                          LEGISLATIVE HISTORY

    On September 9, 2024, Senator Heinrich (D-NM) and Senator 
Lujan (D-NM) introduced S. 4998 the Navajo Nation Rio San Jose 
Stream System Water Rights Settlement Act of 2024. The Senate 
referred the bill to the Committee on Indian Affairs on the 
same day. On September 25, 2024, the Committee held a 
legislative hearing to receive testimony on S. 4998. On 
November 18, 2024, the Committee met at a duly convened 
business meeting and ordered S. 4998 reported favorably, 
without amendment.
    On July 8, 2024, Representatives Leger Fernandez (D-NM) 
introduced H.R. 8945, the Navajo Nation Rio San Jose Stream 
System Water Rights Settlement Act of 2024, a companion to the 
Senate bill. Representatives Vasquez (D-NM) and Stansbury (D-
NM) joined as cosponsors after introduction. On July 8, 2024, 
the bill was referred to the House Committee on Natural 
Resources. On July 17, 2024, H.R. 8945 was further referred to 
the Subcommittee on Water, Wildlife, and Fisheries. On July 23, 
2024, the Subcommittee held a legislative hearing to receive 
testimony on H.R. 8945. To date, the House of Representatives 
has taken no further action on the bill.

                   COST AND BUDGETARY CONSIDERATIONS

    The cost estimate from the Congressional Budget Office 
requested on S. 4998 has not yet been received. Due to time 
constraints, the CBO letter will be printed in the 
Congressional Record.

               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. 4998, as 
reported, will have minimal impact on regulatory or paperwork 
requirements.

                          EXECUTIVE TESTIMONY

    Written statement of Bryan Newland, Assistant Secretary for 
Indian Affairs, U.S. Department of the Interior, before the 
U.S. Senate Committee on Indian Affairs, delivered on September 
25, 2024, follows below:

    Chairman Schatz, Vice Chairman Murkowski, and members of 
the Committee. My name is Bryan Newland, and I am the Assistant 
Secretary for Indian Affairs at the Department of the Interior 
(Department). Thank you for the opportunity to present 
testimony on the following bills concerning Indian water rights 
settlements . . .
Indian Water Rights Settlements Bills
    At the core of the United States' trust and treaty 
obligations is our responsibility to ensure that Indian Tribes 
have the right to continue to exist in their homelands. 
Everyone should understand that water is essential to meet this 
obligation. Without access to water in their homelands, Tribes 
cannot remain in their homelands, and we cannot fulfill our 
most solemn obligation to American Indian and Alaska Native 
people.
    The Biden Administration recognizes that water is a sacred 
and valuable resource for Tribal Nations and that long-standing 
water crises continue to undermine public health and economic 
development in Indian Country. This Administration strongly 
supports the resolution of Indian water rights claims through 
negotiated settlements. Indian water settlements help to ensure 
that Tribal Nations have safe, reliable water supplies; improve 
environmental and health concerns on reservations; enable 
economic growth; promote Tribal sovereignty and self-
sufficiency; and help advance the United States' trust 
relationship with Tribes. At the same time, water rights 
settlements have the potential to end decades of controversy 
and contention among Tribal Nations and neighboring communities 
and promote cooperation in the management of water resources.
    Indian water rights settlements play a pivotal role in this 
Administration's commitment to putting equity at the center of 
everything we do to improve the lives of everyday people--
including Tribal Nations. We have a clear charge from President 
Biden and Secretary Haaland to improve water access and water 
quality on Tribal lands. Access to water is fundamental to 
human existence, economic development, and the future of 
communities--especially Tribal communities.
    To that end, the Biden Administration's policy on 
negotiated Indian water settlements continues to be based on 
the following principles: the United States will participate in 
settlements consistent with its legal and moral trust 
responsibilities to Tribal Nations; Tribes should receive 
equivalent benefits for rights, which they, and the United 
States as trustee, may release as part of the settlement; 
Tribes should realize value from confirmed water rights 
resulting from a settlement; and settlements should contain 
appropriate cost-sharing proportionate to the benefits received 
by all parties benefiting from the settlement. In addition, 
settlements should provide finality and certainty to all 
parties involved.
    Congressional enactment of these settlements should be 
considered within the context of all Tribal priorities and the 
availability of all resources. That is why the Administration 
encourages Congress to consider mandatory funding for this and 
other pending Indian water rights settlements, which was also 
requested in the 2025 President's Budget, included in the 
enacted Bipartisan Infrastructure Law, and already proposed in 
some of the bills we are discussing today.
S. 4998, Navajo Nation Rio San Jose Stream System Water Rights 
        Settlement Act of 2024
    S. 4998, the Navajo Nation Rio San Jose Stream System Water 
Rights Settlement Act of 2024, would approve and provide 
authorizations to carry out the settlement of water rights 
claims of the Navajo Nation in the Rio San Jose River basin in 
New Mexico.
            I. The Navajo Nation and Rio San Jose Basin Water Resources
    The Navajo Nation has more than 400,000 enrolled members, 
of which about 122,000 live in New Mexico. The Navajo Nation 
consists of five agencies, further subdivided into 110 
chapters. The Eastern Navajo Agency, headquartered in 
Crownpoint, encompasses 31 chapters within Western New Mexico 
as well as the satellite reservation areas of To'hajiillee and 
Alamo. Four of the chapters, with a total estimated population 
of 3,810 Tribal members, are within the Rio San Jose Basin. 
These are the chapters of Smith Lake, Casamero Lake, Thoreau 
and Baca/Prewitt. In addition, the satellite reservation of 
To'hajiilee, within the Rio Puerco basin, has an estimated 
1,424 tribal members.
    The Navajo Nation is located in an arid region of New 
Mexico and the chapters in the Rio San Jose Basin are primarily 
reliant on intermittent surface flows and groundwater supplies. 
Drought is a common occurrence that has impacted, and continues 
to impact, the Tribe. The supply of water available to the 
Navajo Nation has been reduced over time from extensive 
groundwater demands by non-Indian water users. An estimated 30 
percent of residences do not have running water. While the 
Navajo Nation has water rights senior to the majority of non-
Indian users in the basin, it is facing water shortages that 
impact its ability to provide sustainable water for its current 
and future water needs. Recent effects of global warming and 
climate change are exacerbating these effects and surface water 
supplies are dwindling. The Navajo Nation seeks funding as part 
of the proposed settlement to develop its water resources for 
various uses, including domestic and municipal purposes for 
current and future Tribal populations.
            II. Proposed Navajo Rio San Jose Settlement Legislation
    The Settlement would resolve all outstanding water claims 
in the Rio San Jose basin in New Mexico that could be brought 
by the Navajo Nation or by the United States, in its capacity 
as trustee for the Nation, and would achieve finality with 
respect to all those claims. Legislation (S. 595) is currently 
pending to resolve the water rights claims of Acoma and Laguna 
in the Rio San Jose basin. If both S. 595 and S. 4998 are 
enacted, all Tribal water rights claims in the Rio San Jose 
basin would be resolved. S. 4998 would also approve a 
conditional settlement of Navajo Nation claims in the Rio 
Puerco basin.
    S. 4998 would ratify and confirm the Navajo Nation's water 
rights to approximately 2,355 acre-feet per year (AFY) from 
surface water and groundwater sources in the Rio San Jose 
basin. These amounts include 638 AFY of groundwater for past 
and present uses, and 1300 AFY of groundwater for future uses. 
Conditionally settled claims in the Rio Puerco basin would be 
506 AFY.
    S. 4998 would also protect non-Indian water users, as the 
Navajo Nation would agree to not make priority calls against 
certain non-Indian water rights.
    While the Navajo Nation Rio San Jose settlement would be 
fund-based, the proposed Federal contribution is largely based 
on the expansion of the existing Navajo-Gallup Water Supply 
Project and the creation of a regional water transmission 
system and community connections to bring imported water into 
the Rio San Jose basin. The trust fund to be established by S. 
4998 totals $223.271 million, to be indexed. Of that amount, 
$200.271 million could be used for:
          (1) Acquiring water rights or water supply;
          (2) Planning, permitting, designing, engineering, 
        constructing, reconstructing, replacing, 
        rehabilitating, operating, or repairing water 
        production, treatment, or delivery infrastructure, 
        including for domestic and municipal use, on-farm 
        improvements, or wastewater infrastructure;
          (3) Navajo Nations' water rights management and 
        administration;
          (4) Watershed protection and enhancement, support of 
        agriculture, water-related Navajo community welfare and 
        economic development, and costs relating to 
        implementation of the settlement agreement; and
          (5) Environmental compliance associated with project 
        developed with trust funds.
    The remaining trust fund money ($23 million) could only be 
used for OM&R. The State of New Mexico would contribute $3 
million for the benefit of non-Indian acequia projects.
    There are over 300 ``Navajo'' allotments in the basin. 
While the Department believes that most of these are allotments 
that were issued to individual Indians out of the Public Domain 
under section four of the General Allotment Act, final historic 
studies have not been completed and water rights claims have 
not been developed. Therefore, it has not been possible to 
include these allotments in the settlement. The water rights of 
these allotments would be adjudicated at a later date in the 
on-going adjudication of the Rio San Jose basin. S. 4998 would 
not in any way impose any conditions on the use of water on 
these allotments or alter the ability of the United States and 
allottees to make water rights claims for these lands in the 
future.
    The Department of the Interior is pleased to support S. 
4998. This bill in combination with S. 595 would settle all 
Tribal rights in the Rio San Jose Basin, bringing stability to 
the basin for all water users. S. 4998 would provide funding to 
allow the Navajo Nation to plan water infrastructure for the 
current and long-term water needs of its people. This approach 
to settlement is consistent with Tribal sovereignty and self-
determination, and with our trust responsibilities, and will 
help to ensure that Navajo Nation can maintain itself in a 
viable homeland.

                        EXECUTIVE COMMUNICATIONS

    The Committee has received no communications from the 
Executive Branch regarding S. 4998.

                        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.

                                  [all]