[Senate Report 119-95]
[From the U.S. Government Publishing Office]
Calendar No. 262
119th Congress} { Report
SENATE
1st Session } { 119-95
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TECHNICAL CORRECTIONS TO THE NORTHWESTERN NEW MEXICO RURAL WATER
PROJECTS ACT, TAOS PUEBLO INDIAN WATER RIGHTS SETTLEMENT ACT, AND
AAMODT LITIGATION SETTLEMENT ACT
_______
November 4, 2025.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Indian Affairs,
submitted the following
R E P O R T
[To accompany S. 640]
[Including cost estimate of the Congressional Budget Office]
The Committee on Indian Affairs, to which was referred the
bill (S. 640) to amend the Omnibus Public Land Management Act
of 2009 to make a technical correction to the Navajo Nation
Water Resources Development Trust Fund, to amend the Claims
Resolution Act of 2010 to make technical corrections to the
Taos Pueblo Water Development Fund and Aamodt Settlement
Pueblos' Fund, and for other purposes, having considered the
same, reports favorably thereon without amendment and
recommends that the bill do pass.
PURPOSE
S. 640 authorizes a total of $18.467 million in interest
payments to be deposited into three existing trust funds that
were created under previously approved Indian water rights
settlements. These funds include the Navajo Nation Water
Resources Development Trust Fund, the Taos Pueblo Water
Development Fund, and the Aamodt Settlement Pueblos' Fund.
BACKGROUND AND NEED
Between 2009 and 2010, Congress approved five Indian water
rights settlements--the Duck Valley\1\, Crow\2\, Taos
Pueblo\3\, Aamodt\4\, and Navajo San Juan (Navajo-Gallup)\5\
settlements. Each of these included a provision that prohibited
the investment of settlement funds until the settlement's
enforceability date was reached. The Department of the Interior
noted in 2021 that such investment restrictions are unusual in
Indian water rights legislation and expressed its support for
new legislation to remove this limitation. S. 640 specifically
remedies this issue for three of the five settlements affected
by the investment prohibition.\6\
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\1\Pub. L. No. 111-11, 123 Stat. 1405 (2009).
\2\Pub. L. No. 111-291, Sec. 401, 124 Stat. 3097 (2010).
\3\Pub. L. No. 111-291, Sec. 501, 124 Stat. 3122 (2010).
\4\Pub. L. No. 111-291, Sec. 601, 124 Stat. 3134 (2010).
\5\Pub. L. No. 111-11, Sec. 10601, 123 Stat. 1379 (2009).
\6\Similar legislation (S. 546) was introduced in the 119th
Congress to address an interest-related limitation for the Shoshone-
Paiute Tribes of the Duck Valley Reservation by authorizing
appropriation of $5.125 million for the Shoshone-Paiute Tribes Water
Rights Development Fund, which was established in 2009 pursuant to the
Shoshone-Paiute Tribes of the Duck Valley Reservation Water Rights
Settlement Act.
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Navajo Nation (San Juan River). In 2009, Congress passed
the Omnibus Public Land Management Act of 2009,\7\ which
included the Northwestern New Mexico Rural Water Projects
Act\8\ to ratify the Navajo-San Juan River Water Rights
Settlement Agreement and settle the Navajo Nation's claims to
water rights in the San Juan River Basin in New Mexico. This
law established the Navajo Nation Water Resources Development
Fund to construct the Navajo-Gallup Water Supply Project in
Northwestern New Mexico, infrastructure designed to deliver
piped water to approximately 250,000 people by 2040.
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\7\Pub. L. No. 111-11, 123 Stat. 991 (2009).
\8\Pub. L. No. 111-11, Sec. 10301, 123 Stat. 1367 (2009).
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Taos Pueblo. In 2010, Congress passed the Claims Resolution
Act of 2010,\9\ which included the Taos Pueblo Indian Water
Rights Settlement Act\10\ to ratify the Taos Pueblo Water
Rights Settlement Agreement and settle Taos Pueblo's claims to
water rights in the Rio Hondo and Rio Pueblo de Taos Stream
Systems in New Mexico. This law established the Taos Pueblo
Water Development Fund to carry out the purposes of the Act and
settlement agreement.
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\9\Pub. L. No. 111-291, 124 Stat. 3064 (2010).
\10\Pub. L. No. 111-291, Sec. 501, 124 Stat. 3122 (2010).
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Nambe, Pojoaque, San Ildefonso, and Tesuque Pueblos. The
Claims Resolution Act of 2010 included the Aamodt Litigation
Settlement Act\11\ to ratify the Aamodt Water Rights Settlement
Agreement and settle the Pueblos of Nambe, Pojoaque, San
Ildefonso, and Tesuque's claims to water rights in the Pojoaque
River Stream System in New Mexico. This law established the
Aamodt Settlement Pueblos' Fund for the benefit of the four
Pueblos to carry out the purposes of the Act and settlement
agreement.
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\11\Pub. L. No. 111-291, Sec. 601, 124 Stat. 3134 (2010).
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Both the Omnibus Public Land Management Act of 2009 and the
Claims Resolution Act of 2010 were intended to further develop
water resources infrastructure for the Navajo Nation, Nambe
Pueblo, Pojoaque Pueblo, San Ildefonso Pueblo, Tesuque Pueblo,
and Taos Pueblo pursuant to their ratified water rights
settlements. Unlike other Indian water rights settlements,
however, these two Acts prohibited investment of settlement
funds prior to their respective enforcement dates. As a result,
the six Tribes benefitting from three water settlements were
denied millions of dollars of interest that could have been
earned if the funds were invested as they are typically in
other settlements. The amounts to be deposited in the three
trust fund accounts represent the unpaid interest that would
have accrued if interest accrual were permitted on the Tribes'
water settlement trust funds between the dates these funds were
appropriated and the settlement enforcement dates, or another
specified date. The funding authorized in S. 640 will provide
the Tribes with additional resources to support water
infrastructure and uses authorized by their respective water
rights settlements.
SUMMARY
S. 640 authorizes a total of $18.467 million in interest
payments to be deposited into three existing trust funds that
were created under previously approved Indian water rights
settlements. These funds include $6.358 million to the Navajo
Nation Water Resources Development Trust Fund, $7.794 million
to the Taos Pueblo Water Development Fund, and $4.315 million
to the Aamodt Settlement Pueblos' Fund.
LEGISLATIVE HISTORY
S. 640 was introduced by Senators Lujan and Heinrich on
February 19, 2025. The Committee held a business meeting on
March 5, 2025 to consider S. 640 and ordered the bill to be
reported favorably, without amendment, by voice vote.
In the 118th Congress an identical bill, S. 3406, was
introduced by Senators Lujan and Heinrich on December 5, 2023.
The Committee held a hearing on S. 3406 on July 10, 2024 (S.
Hrg. 118-530). The Committee held a business meeting to
consider S. 3406 on July 25, 2024, and ordered the bill
reported favorably, without amendment (S. Rept. 118-241).
An identical companion bill, H.R. 6599, was introduced by
Representatives Leger Fernandez (D-NM-3) and Stansbury (D-NM-1)
in the House of Representatives on December 5, 2023. The
Committee on Natural Resources Subcommittee on Water, Wildlife,
and Fisheries held a hearing on H.R. 6599 on July 23, 2024.
In the 117th Congress, a similar bill, H.R. 9293, was
introduced by Representative Leger Fernandez (D-NM) in the
House of Representatives on November 14, 2022.
COMMITTEE RECOMMENDATION
The Senate Committee on Indian Affairs in an open business
meeting on March 5, 2025, by a majority voice vote of a quorum
present, recommends that the Senate pass, S. 640, without
amendment.
SECTION-BY-SECTION ANALYSIS
Section 1--Short title
This section sets forth the short title as the ``Technical
Corrections to the Northwestern New Mexico Rural Water Projects
Act, Taos Pueblo Indian Water Rights Settlement Act, and Aamodt
Litigation Settlement Act.''
Section 2--Authorization of payment of adjusted interest on the Navajo
Nation Water Resources Development Trust Fund
This section would amend the Omnibus Public Land Management
Act of 2009 to authorize the appropriation of $6.358 million to
be deposited into the Navajo Nation Water Resources Development
Fund, commensurate with the Tribe's earned interest.
Section 3--Authorization of payment of adjusted interest on the Taos
Pueblo Water Development Fund
This section would amend the Claims Resolution Act of 2010
to authorize the appropriation of $7.794 million into the Taos
Pueblo Water Development Fund, commensurate with the Tribe's
earned interest.
Section 4--Authorization of payment of adjusted interest on the Aamodt
Settlement Pueblos' Fund
This section would amend the Claims Resolution Act of 2010
to authorize the appropriation of $4.315 million into the
Aamodt Settlement Pueblos' Fund, commensurate with the Tribes'
earned interest.
Section 5--Disclaimer
Section 5(a) clarifies that nothing in the Act impacts the
previous satisfaction of conditions precedent or Secretarial
findings for the Taos Pueblo Indian Water Rights Settlement Act
and the Taos Pueblo Water Rights Settlement Agreement.
Section 5(b) clarifies that nothing in the Act impacts the
previous satisfaction of the requirements of the conditions
precedent for the Aamodt Litigation Settlement Act and the
Aamodt Water Rights Settlement Agreement.
COST AND BUDGETARY CONSIDERATIONS
The bill would:
Authorize appropriations to three Indian
water rights settlement trust funds
Estimated budgetary effects would mainly stem from
Spending of the amounts authorized to be
appropriated
Spending of interest that is credited to the
trust funds
Bill summary: S. 640 would amend the Omnibus Public Land
Management Act of 2009 to authorize the appropriation of
specific amounts totaling $18 million for three trust funds
that are credited with interest. Specifically, the bill would
authorize the appropriation of:
$6 million for the Navajo Nation Water
Resources Development Trust Fund,
$8 million for the Taos Pueblo Water
Development Fund, and
$4 million for the Aamodt Settlement
Pueblos' Fund.
Estimated Federal cost: The estimated budgetary effect of
S. 640 is shown in Table 1. The costs of the legislation fall
within budget function 300 (natural resources and environment).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 640
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By fiscal year, millions of dollars--
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2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2025-2030 2025-2035
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INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Authorization............................ 18 0 0 0 0 0 0 0 0 0 0 18 18
Estimated Outlays........................ 1 5 5 3 2 2 0 0 0 0 0 18 18
INCREASES IN DIRECT SPENDING
Estimated Budget Authority............... * * 1 * * * 1 * * * * 1 2
Estimated Outlays........................ * * * * 1 * * * 1 * * 1 2
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* = between zero and $500,000.
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted in 2025 and that the authorized amounts
will be appropriated in that same year.
Spending subject to appropriation: S. 640 would authorize
the appropriation of specific amounts to three trust funds.
That money would be spent on activities specified or allowed in
the underlying settlement agreements. Based on historical
spending patterns, CBO estimates that implementing S. 640 would
cost $18 million over the 2025-2030 period, assuming
appropriation of the authorized amounts.
Direct spending: Any appropriations provided to the three
trust funds are invested in Treasury obligations, including
those that would be authorized by S. 640. Those trust funds are
credited with interest based on the value of the Treasury
obligations they hold. Because that credited interest can be
spent on the trust funds' activities without further
appropriation, that spending is classified as direct spending.
Based on the projection of interest rates that underlie
CBO's baseline, CBO estimates that the trust funds would be
credited with $2 million, all of which would be spent over the
2025-2035 period.
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 net changes in outlays that are subject to those
pay-as-you-go procedures are shown in Table 1.
Increase in long-term net direct spending and deficits: CBO
estimates that enacting S. 640 would not increase net direct
spending by more than $2.5 billion in any of the four
consecutive 10-year periods beginning in 2036.
CBO estimates that enacting S. 640 would not increase on-
budget deficits by more than $5 billion in any of the four
consecutive 10-year periods beginning in 2036.
Mandates: The bill contains no intergovernmental or
private-sector mandates as defined in the Unfunded Mandates
Reform Act.
Estimate prepared by: Federal Costs: Alaina Rhee; Mandates:
Erich Dvorak.
Estimate reviewed by: Ann E. Futrell, Acting Chief, Natural
and Physical Resources Cost Estimates Unit; 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. 640, as
reported, will have minimal impact on regulatory or paperwork
requirements.
EXECUTIVE TESTIMONY AND COMMUNICATIONS
The testimony provided by the U.S. Department of the
Interior from the July 10, 2024, hearing on S. 3406 follows:
statement of jason freihage, deputy assistant secretary of management
for indian affairs, u.s. department of the interior
s. 3406, the technical corrections to the northwestern new mexico rural
water projects act, taos pueblo indian water rights settlement act, and
aamodt litigation settlement act
Good afternoon, Chairman Schatz, Vice Chairman Murkowski,
and members of the Committee. My name is Jason Freihage, and I
am the Deputy Assistant Secretary of Management for Indian
Affairs at the Department of the Interior (Department). Thank
you for the opportunity to present testimony on . . . S. 3406,
``Technical Corrections to the Northwestern New Mexico Rural
Water Projects Act, Taos Pueblo Indian Water Rights Settlement
Act, and Aamodt Litigation Settlement Act,''. . .
S. 3406, Technical Corrections to the Northwestern New Mexico Rural
Water Projects Act, Taos Pueblo Indian Water Rights Settlement
Act, and Aamodt Litigation Settlement Act
S. 3406 would amend the Omnibus Public Land Management Act
of 2009 and the Claims Resolution Act of 2010 to authorize
funding for deposit into the Navajo Nation Water Resources
Development Trust Fund, the Taos Pueblo Water Development Fund,
and the Aamodt Settlement Pueblos' Fund equivalent to the
amounts that would have accrued to the trust funds if the
Department had the authority to invest the funds upon
appropriation.
In the 111th Congress, four Indian water rights settlements
(the Taos Pueblo Indian Water Rights Settlement Act, Pub. L.
No. 111-291; the Aamodt Litigation Settlement Act, Pub. L. No.
111-291; the Duck Valley settlement, Pub. L. No. 111-11; and
the Crow Tribe Water Rights Settlement Act of 2010, Pub. L. No.
111-291) included provisions authorizing an investment of
monies into the settlement trust funds after the enforceability
date. The enforceability date is effective when the Secretary
finds that all conditions for the full effectiveness and
enforceability of the settlement had occurred and publishes
that finding in the Federal Register. The Northwestern New
Mexico Rural Water Projects Act, Pub. L. No. 111-11, (Navajo
Settlement), also allowed for the investment of monies into the
Navajo Nation Resources Development Trust Fund, only upon a
specified date certain ten years after the enactment date.
These provisions prohibited the Department from investing
trust fund monies before the enforceability date or a date
certain. However, the Department mistakenly started investing
trust fund monies when they were appropriated, which was before
the enforceability date. When the Department discovered this
error, the Department's Solicitor's Office determined that the
interest amounts earned prior to the date that the funds were
authorized to be invested were contrary to the Antideficiency
Act and, in accordance with 31 U.S.C. Sec. 3302, must be
returned to Treasury. The Department then returned all interest
monies accrued prior to the authorized date back to Treasury.
The issue that S. 3406 addresses is a provision in certain
Indian water rights settlements that prohibited investment
until the enforceability date was reached. This provision is
not common in Indian water rights settlements. Similar
provisions appeared in other settlements enacted in 2009-2010,
including the Crow Tribe Water Rights Settlement Act of 2010;
the Taos Pueblo Indian Water Rights Settlement Act; the Aamodt
Litigation Settlement Act; and the Navajo Gallup Water Supply
Project and Navajo Nation Water Rights. In each of these
settlements, funds were inadvertently invested and returned to
Treasury. The Department supported similar legislation to
resolve this issue, and thus supports S. 3406 to correct this
issue for the Northwestern New Mexico Rural Water Projects Act,
the Taos Pueblo Indian Water Rights Settlement Act, and the
Aamodt Litigation Settlement Act.
CHANGES IN EXISTING LAW
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]