I
119THCONGRESS
1
STSESSION H. R. 1482
To amend the Northwestern New Mexico Rural Water Projects Act to make
improvements to that Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY21, 2025
Ms. L
EGERFERNANDEZ(for herself and Ms. STANSBURY) introduced the
following bill; which was referred to the Committee on Natural Resources
A BILL
To amend the Northwestern New Mexico Rural Water
Projects Act to make improvements to that Act, and
for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Navajo-Gallup Water 4
Supply Project Amendments Act of 2025’’. 5
SEC. 2. DEFINITIONS. 6
Section 10302 of the Northwestern New Mexico 7
Rural Water Projects Act (43 U.S.C. 407 note; Public 8
Law 111–11) is amended— 9
(1) by striking paragraph (29); 10
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(2) by redesignating paragraphs (12), (13), 1
(14), (15), (16), (17), (18), (19), (20), (21), (22), 2
(23), (24), (25), (26), (27), (28), and (30) as para-3
graphs (13), (14), (15), (16), (17), (18), (19), (20), 4
(21), (22), (23), (24), (25), (27), (28), (30), (31), 5
and (32), respectively; 6
(3) by inserting after paragraph (11) the fol-7
lowing: 8
‘‘(12) D
EFERRED CONSTRUCTION FUND .—The 9
term ‘Deferred Construction Fund’ means the Nav-10
ajo Nation’s Navajo-Gallup Water Supply Project 11
Deferred Construction Fund established by section 12
10602(i)(1)(A).’’; 13
(4) in paragraph (14) (as so redesignated)— 14
(A) in the paragraph heading, by striking 15
‘‘D
RAFT’’ and inserting ‘‘FINAL ENVIRON-16
MENTAL’’; 17
(B) by striking ‘‘Draft Impact’’ and insert-18
ing ‘‘Final Environmental’’; 19
(C) by striking ‘‘draft environmental’’ and 20
inserting ‘‘final environmental’’; and 21
(D) by striking ‘‘March 2007’’ and insert-22
ing ‘‘July 6, 2009’’; 23
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(5) in paragraph (19) (as so redesignated), by 1
striking ‘‘Draft’’ and inserting ‘‘Final Environ-2
mental’’; 3
(6) by inserting after paragraph (25) (as so re-4
designated) the following: 5
‘‘(26) P
ROJECT SERVICE AREA .—The term 6
‘Project Service Area’ means the area that encom-7
passes the 43 Nation chapters, the southwest por-8
tion of the Jicarilla Apache Reservation, and the 9
City that is identified to be served by the Project, 10
as illustrated in figure IV–5 (Drawing No. 1695– 11
406–49) of the Final Environmental Impact State-12
ment.’’; 13
(7) by inserting after paragraph (28) (as so re-14
designated) the following: 15
‘‘(29) S
ETTLEMENT TRUST FUNDS .—The term 16
‘Settlement Trust Funds’ means— 17
‘‘(A) the Navajo Nation Water Resources 18
Development Trust Fund established by sub-19
section (a)(1) of section 10702; 20
‘‘(B) the Navajo Nation Operations, Main-21
tenance, and Replacement Trust Fund estab-22
lished under subsection (b)(1) of that section; 23
and 24
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‘‘(C) the Jicarilla Apache Nation Oper-1
ations, Maintenance, and Replacement Trust 2
Fund established under subsection (c)(2) of 3
that section.’’; and 4
(8) by adding at the end the following: 5
‘‘(33) W
ORKING COST ESTIMATE .—The term 6
‘Working Cost Estimate’ means the Bureau of Rec-7
lamation document entitled ‘NGWSP October 2022 8
WCE’ and dated February 26, 2023, that details the 9
costs totaling $2,138,387,000, at the October 2022 10
price level, of the Project, as configured on that 11
date.’’. 12
SEC. 3. NAVAJO-GALLUP WATER SUPPLY PROJECT. 13
(a) A
UTHORIZATION OF NAVAJO-GALLUPWATER 14
S
UPPLYPROJECT.—Section 10602 of the Northwestern 15
New Mexico Rural Water Projects Act (Public Law 111– 16
11; 123 Stat. 1379) is amended— 17
(1) in subsection (a)— 18
(A) in the subsection heading, by striking 19
‘‘I
NGENERAL’’ and inserting ‘‘AUTHORIZA-20
TION’’; 21
(B) by striking ‘‘The Secretary’’ and in-22
serting the following: 23
‘‘(1) I
N GENERAL.—The Secretary’’; 24
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(C) in paragraph (1) (as so designated), by 1
striking ‘‘Draft Impact Statement’’ and insert-2
ing ‘‘Final Environmental Impact Statement, as 3
further refined in, and including the facilities 4
identified in, the Working Cost Estimate and 5
any subsequent supplemental documents pre-6
pared in accordance with the National Environ-7
mental Policy Act of 1969 (42 U.S.C. 4321 et 8
seq.).’’; and 9
(D) by adding at the end the following: 10
‘‘(2) A
DDITIONAL SERVICE AREAS .— 11
‘‘(A) F
INDINGS.—Congress finds that— 12
‘‘(i) expanding the Project Service 13
Area would create opportunities to increase 14
service for additional Nation Tribal mem-15
bers and would not increase the cost of the 16
Project beyond authorization levels de-17
scribed in section 10609(a); and 18
‘‘(ii) the unit operations and mainte-19
nance costs of the Project would be re-20
duced by adding more customers to the 21
Project. 22
‘‘(B) A
UTHORIZATIONS FOR ADDITIONAL 23
PROJECT SERVICE AREAS .— 24
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‘‘(i) NEW MEXICO.—In addition to de-1
livering water supply from the Project to 2
the Nation communities in the San Juan 3
River Basin, the Nation may expand the 4
Project Service Area in order to deliver 5
water supply from the Project to commu-6
nities of the Nation within the Rio San 7
Jose Basin, New Mexico. 8
‘‘(ii) A
RIZONA.—In addition to deliv-9
ering water supply from the Project to the 10
Nation communities of Fort Defiance and 11
Window Rock, Arizona, and subject to sec-12
tion 10603(c)(1), the Nation may expand 13
the Project Service Area in order to deliver 14
water supply from the Project to the Na-15
tion community of Lupton, Arizona, within 16
the Little Colorado River Basin, Arizona.’’; 17
(2) in subsection (b)— 18
(A) in the matter preceding paragraph 19
(1)— 20
(i) by inserting ‘‘acquire,’’ before 21
‘‘construct,’’; and 22
(ii) by striking ‘‘Draft Impact State-23
ment’’ and inserting ‘‘Final Environmental 24
Impact Statement, as further refined in, 25
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and including the facilities identified in, 1
the Working Cost Estimate and any subse-2
quent supplemental documents prepared in 3
accordance with the National Environ-4
mental Policy Act of 1969 (42 U.S.C. 5
4321 et seq.)’’; 6
(B) by striking paragraph (1) and insert-7
ing the following: 8
‘‘(1) The water conveyance and storage facili-9
ties associated with the San Juan Generating Sta-10
tion (the coal-fired, 4-unit electric power plant and 11
ancillary features located by the San Juan Mine 12
near Waterflow, New Mexico), including the diver-13
sion dam, the intake structure, the river pumping 14
plant, the pipeline from the river to the reservoir, 15
the dam and associated reservoir, and any associated 16
land, or interest in land, or ancillary features.’’; 17
(C) in paragraph (2)(A)— 18
(i) by striking ‘‘River near Kirtland, 19
New Mexico,’’ and inserting ‘‘Generating 20
Station Reservoir’’; and 21
(ii) by inserting ‘‘generally’’ before 22
‘‘follows United States Highway 491’’; 23
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(D) in paragraph (3)(A), by inserting 1
‘‘generally’’ before ‘‘follows United States High-2
way 550’’; and 3
(E) in paragraph (5), by inserting ‘‘(in-4
cluding any reservoir facility)’’ after ‘‘treatment 5
facility’’; 6
(3) in subsection (c)— 7
(A) in the subsection heading, by inserting 8
‘‘
ANDFACILITIES’’ after ‘‘LAND’’; 9
(B) in paragraph (1), by striking ‘‘any 10
land or interest in land that is’’ and inserting 11
‘‘any land or facilities, or interest in land or fa-12
cilities, that are’’; and 13
(C) by adding at the end the following: 14
‘‘(4) L
AND TO BE TAKEN INTO TRUST .— 15
‘‘(A) I
N GENERAL.—On satisfaction of the 16
conditions described in paragraph (7) of the 17
Agreement and after the requirements of sec-18
tions 10701(e) and 10703 are met, the Sec-19
retary shall take legal title to the following land 20
and, subject to subparagraph (D), hold that 21
land in trust for the benefit of the Nation: 22
‘‘(i) Fee land of the Nation, includ-23
ing— 24
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‘‘(I) the parcels of land on which 1
the Tohlakai Pumping Plant, Reach 2
12A and Reach 12B, are located, in-3
cluding, in McKinley County, New 4
Mexico— 5
‘‘(aa) sec. 5, T. 16 N., R. 18 6
W., New Mexico Prime Meridian; 7
and 8
‘‘(bb) sec. 33, T. 17 N., R. 9
17 W., New Mexico Prime Merid-10
ian (except lot 9 and the NW
1
⁄4 11
of lot 4); 12
‘‘(II) the parcel of land on which 13
Reach 12.1 is located, including— 14
‘‘(aa) NW
1
⁄4and SW
1
⁄4sec. 15
5, T. 16 N., R. 18 W.; 16
‘‘(bb) N
1
⁄2sec. 11, T. 16 N., 17
R. 19 W.; and 18
‘‘(cc) sec. 12, T. 16 N., R. 19
20 W.; and 20
‘‘(III) the parcel of land on which 21
Reach 12.2 is located, including 22
NW
1
⁄4. sec. 2, T. 16 N., R. 21 W. 23
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‘‘(ii) Public domain land managed by 1
the Bureau of Land Management, includ-2
ing— 3
‘‘(I) the parcel of land on which 4
the Cutter Lateral Water Treatment 5
Plant is located, including S
1
⁄2sec. 9, 6
T. 25 N., R. 9 W., New Mexico Prime 7
Meridian; and 8
‘‘(II) the parcel of land on which 9
the Navajo Agricultural Products In-10
dustry turnout is located, including 11
NW
1
⁄4and NE
1
⁄4sec. 34, T. 26 N., 12
R. 9 W., New Mexico Prime Meridian. 13
‘‘(iii) The land underlying the San 14
Juan Generating Station (the coal-fired, 4- 15
unit electric power plant and ancillary fea-16
tures located by the San Juan Mine near 17
Waterflow, New Mexico) acquired by the 18
United States, as described in subsection 19
(b)(1). 20
‘‘(B) P
ART OF NAVAJO NATION .—The land 21
taken into trust under subparagraph (A) shall 22
be part of the Navajo Reservation and adminis-23
tered in accordance with the laws and regula-24
tions generally applicable to land held in trust 25
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by the United States for the benefit of an In-1
dian Tribe. 2
‘‘(C) R
ESTRICTIONS.— 3
‘‘(i) F
EE LAND OF THE NATION .—The 4
fee land of the Nation taken into trust 5
under subparagraph (A)(i) shall be subject 6
to valid existing rights, contracts, and 7
management agreements, including ease-8
ments and rights-of-way, unless the holder 9
of the right, contract, lease, permit, or 10
right-of-way requests an earlier termi-11
nation in accordance with existing law. 12
‘‘(ii) P
UBLIC DOMAIN LAND.— 13
‘‘(I) I
N GENERAL.—The public 14
domain land managed by the Bureau 15
of Land Management taken into trust 16
under subparagraph (A)(ii) shall be 17
subject to valid existing rights, con-18
tracts, leases, permits, and rights-of- 19
way, unless the holder of the right, 20
contract, lease, permit, or right-of-way 21
requests an earlier termination in ac-22
cordance with existing law. 23
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‘‘(II) BIA ASSUMPTION OF BENE -1
FITS AND OBLIGATIONS.—The Bureau 2
of Indian Affairs shall— 3
‘‘(aa) assume all benefits 4
and obligations of the previous 5
land management agency under 6
the existing rights, contracts, 7
leases, permits, or rights-of-way 8
described in subclause (I); and 9
‘‘(bb) disburse to the Nation 10
any amounts that accrue to the 11
United States from those rights, 12
contracts, leases, permits, or 13
rights-of-ways after the date on 14
which the land described in 15
clause (ii) of subparagraph (A) is 16
taken into trust for the benefit of 17
the Nation from any sale, bonus, 18
royalty, or rental relating to that 19
land in the same manner as 20
amounts received from other land 21
held by the Secretary in trust for 22
the Nation. 23
‘‘(iii) L
AND UNDERLYING THE SAN 24
JUAN GENERATING STATION .— 25
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‘‘(I) IN GENERAL.—The land un-1
derlying the San Juan Generating 2
Station (the coal-fired, 4-unit electric 3
power plant and ancillary features lo-4
cated by the San Juan Mine near Wa-5
terflow, New Mexico) taken into trust 6
under subparagraph (A)(iii) shall be 7
subject to a perpetual easement on 8
and over all of the land underlying the 9
San Juan Generating Station reserved 10
to the United States for use by the 11
Bureau of Reclamation and its con-12
tractors and assigns— 13
‘‘(aa) for ingress and egress; 14
‘‘(bb) to continue construc-15
tion of the Project; and 16
‘‘(cc) for operation and 17
maintenance of Project facilities 18
located on that land. 19
‘‘(II) R
ESERVED PERPETUAL 20
EASEMENT.—The reserved perpetual 21
easement described in subclause (I) 22
shall remain vested in the United 23
States unless title to the Project fa-24
cilities and appropriate interests in 25
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land are conveyed pursuant to sub-1
section (f). 2
‘‘(III) R
ESERVED FEDERAL FA -3
CILITIES.—The United States shall 4
retain ownership of the San Juan 5
Generating Station (the coal-fired, 4- 6
unit electric power plant and ancillary 7
features located by the San Juan 8
Mine near Waterflow, New Mexico) 9
water conveyance and storage facili-10
ties when the underlying land is taken 11
into trust under subparagraph (A)(iii) 12
and title to those facilities shall re-13
main vested in the United States un-14
less title to those facilities are con-15
veyed pursuant to subsection (f). 16
‘‘(D) S
AVINGS CLAUSE.—Nothing in this 17
paragraph affects any— 18
‘‘(i) water right of the Nation in exist-19
ence on the day before the date of enact-20
ment of the Navajo-Gallup Water Supply 21
Project Amendments Act of 2025; and 22
‘‘(ii) right or claim of the Nation to 23
any land or interest in land in existence on 24
the day before the date of enactment of the 25
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Navajo-Gallup Water Supply Project 1
Amendments Act of 2025.’’; 2
(4) in subsection (d)(1)(D), by striking ‘‘Draft’’ 3
and inserting ‘‘Final Environmental’’; 4
(5) in subsection (e)— 5
(A) by striking ‘‘The Secretary’’ and in-6
serting the following: 7
‘‘(1) I
N GENERAL.—The Secretary’’; and 8
(B) by adding at the end the following: 9
‘‘(2) R
ENEWABLE ENERGY AND HYDRO -10
ELECTRIC POWER.— 11
‘‘(A) R
ENEWABLE ENERGY .—For any por-12
tion of the Project that does not have access to 13
Colorado River Storage Project power, the Sec-14
retary may use not more than $6,250,000 of 15
the amounts made available under section 16
10609(a)(1) to develop renewable energy. 17
‘‘(B) H
YDROELECTRIC POWER .—Notwith-18
standing whether a Project facility has access 19
to Colorado River Storage Project power, the 20
Secretary may use not more than $1,250,000 of 21
the $6,250,000 authorized to be used to develop 22
renewable energy under subparagraph (A) to 23
develop hydroelectric power for any Project fa-24
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cility that can use hydraulic head to produce 1
electricity.’’; 2
(6) in subsection (h)(1), in the matter pre-3
ceding subparagraph (A), by inserting ‘‘, store,’’ 4
after ‘‘treat’’; and 5
(7) by adding at the end the following: 6
‘‘(i) D
EFERREDCONSTRUCTION OF PROJECTFA-7
CILITIES.— 8
‘‘(1) D
EFERRED CONSTRUCTION OF PROJECT 9
FACILITIES.—On mutual agreement between the Na-10
tion and the Secretary, and the Jicarilla Apache Na-11
tion if the deferred Project facilities benefit the 12
Jicarilla Apache Nation, construction of selected 13
Project facilities may be deferred to save operation 14
and maintenance expenses associated with that con-15
struction. 16
‘‘(2) D
EFERRED CONSTRUCTION FUND .— 17
‘‘(A) E
STABLISHMENT.—There is estab-18
lished in the Treasury a fund, to be known as 19
the ‘Navajo Nation’s Navajo-Gallup Water Sup-20
ply Project Deferred Construction Fund’, to 21
consist of— 22
‘‘(i) amounts that correspond to por-23
tions of the Project that have been de-24
ferred under paragraph (1); and 25
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‘‘(ii) any interest or other gains on 1
amounts referred to in clause (i). 2
‘‘(B) U
SE OF THE DEFERRED CONSTRUC -3
TION FUND.—The Nation may use amounts in 4
the Deferred Construction Fund— 5
‘‘(i) to construct Project facilities that 6
have been deferred under paragraph (1); 7
or 8
‘‘(ii) to construct alternate facilities 9
agreed on under subparagraph (C). 10
‘‘(C) A
LTERNATE FACILITIES CONSISTENT 11
WITH THE PURPOSE OF THE PROJECT .—On 12
agreement between the Nation and the Sec-13
retary, and the Jicarilla Apache Nation if the 14
deferred Project facilities benefit the Jicarilla 15
Apache Nation, and in compliance with all ap-16
plicable environmental and cultural resource 17
protection laws, facilities other than those pre-18
viously agreed to be deferred under paragraph 19
(1) may be constructed if those alternate facili-20
ties are consistent with the purposes of the 21
Project described in section 10601. 22
‘‘(3) A
MOUNTS TO BE DEPOSITED .—Funds allo-23
cated from the amounts made available under sec-24
tion 10609(a)(1) to build facilities referred to in 25
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paragraph (1) shall be deposited into the Deferred 1
Construction Fund. 2
‘‘(4) A
DJUSTMENTS.—On deposit of amounts 3
into the Deferred Construction Fund under para-4
graph (3), the adjustments to authorized appropria-5
tions under section 10609(a)(2) shall no longer 6
apply to those amounts. 7
‘‘(5) D
EADLINE TO CONSTRUCT PROJECT FA -8
CILITIES.—On deposit of all amounts into the De-9
ferred Construction Fund for construction of Project 10
facilities agreed on under paragraph (1), the Sec-11
retary shall be deemed to have met the obligation 12
under section 10701(e)(1)(A)(ix). 13
‘‘(6) F
UTURE CONSTRUCTION OF PROJECT FA -14
CILITIES.—On agreement between the Nation and 15
the Secretary, and the Jicarilla Apache Nation if the 16
deferred Project facilities benefit the Jicarilla 17
Apache Nation, the Nation shall use amounts depos-18
ited into the Deferred Construction Fund to con-19
struct— 20
‘‘(A) Project facilities deferred under para-21
graph (1); or 22
‘‘(B) alternate Project facilities described 23
in paragraph (2)(C).’’. 24
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(b) DELIVERY ANDUSE OFNAVAJO-GALLUPWATER 1
S
UPPLYPROJECTWATER.—Section 10603 of the North-2
western New Mexico Rural Water Projects Act (Public 3
Law 111–11; 123 Stat. 1382) is amended— 4
(1) in subsection (a)(3)(B)— 5
(A) in clause (i), by inserting ‘‘or, if gen-6
erated on City-owned facilities, by the City’’ 7
after ‘‘the Nation’’; and 8
(B) in clause (ii), by inserting ‘‘, except 9
that the City shall retain all revenue from the 10
sale of hydroelectric power that is generated on 11
City-owned facilities’’ after ‘‘hydroelectric 12
power’’; and 13
(2) in subsection (g)(2), by striking ‘‘, except as 14
provided in section 10604(f)’’. 15
(c) P
ROJECTCONTRACTS.—Section 10604 of the 16
Northwestern New Mexico Rural Water Projects Act 17
(Public Law 111–11; 123 Stat. 1388) is amended— 18
(1) in subsection (a)(4), by striking ‘‘Subject to 19
subsection (f), the’’ and inserting ‘‘The’’; 20
(2) in subsection (b)(3)— 21
(A) in subparagraph (A), by striking ‘‘sub-22
paragraph (B)’’ and inserting ‘‘subparagraphs 23
(B) and (C)’’; 24
(B) in subparagraph (B)— 25
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(i) in the subparagraph heading, by 1
striking ‘‘M
INIMUM PERCENTAGE ’’ and in-2
serting ‘‘M
AXIMUM PERCENTAGE ’’; 3
(ii) by striking ‘‘at least 25 percent’’ 4
and inserting ‘‘not more than 25 percent’’; 5
and 6
(iii) by striking ‘‘, but shall in no 7
event exceed 35 percent’’; and 8
(C) by adding at the end the following: 9
‘‘(C) M
AXIMUM REPAYMENT OBLIGA -10
TION.—The repayment obligation of the City 11
referred to in subparagraphs (A) and (B) shall 12
not exceed $76,000,000.’’; 13
(3) in subsection (c)(1)(B), by inserting ‘‘sub-14
section (f) and’’ before ‘‘section 10603(g)’’; 15
(4) in subsection (d)(1), by striking ‘‘Draft’’ 16
and inserting ‘‘Final Environmental’’; 17
(5) in subsection (e), by striking ‘‘Draft’’ and 18
inserting ‘‘Final Environmental’’; 19
(6) by striking subsection (f); and 20
(7) by redesignating subsection (g) as sub-21
section (f). 22
(d) A
UTHORIZATION OF APPROPRIATIONS.—Section 23
10609 of the Northwestern New Mexico Rural Water 24
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Projects Act (Public Law 111–11; 123 Stat. 1395; 129 1
Stat. 528) is amended— 2
(1) in subsection (a)— 3
(A) in paragraph (1), by striking 4
‘‘$870,000,000 for the period of fiscal years 5
2009 through 2024’’ and inserting 6
‘‘$2,175,000,000 for the period of fiscal years 7
2009 through 2029’’; 8
(B) by striking paragraph (2) and insert-9
ing the following: 10
‘‘(2) A
DJUSTMENTS.— 11
‘‘(A) I
N GENERAL.—The amount under 12
paragraph (1) shall be adjusted by such 13
amounts as may be required— 14
‘‘(i) by reason of changes since Octo-15
ber 2022 in construction cost changes in 16
applicable regulatory standards, as indi-17
cated by engineering cost indices applicable 18
to the types of construction involved; and 19
‘‘(ii) to address construction cost 20
changes necessary to account for unfore-21
seen market volatility that may not other-22
wise be captured by engineering cost indi-23
ces described in clause (i), as determined 24
by the Secretary, including repricing appli-25
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cable to the types of construction and cur-1
rent industry standards involved. 2
‘‘(B) D
EFERRED CONSTRUCTION FUND .— 3
Amounts deposited in the Deferred Construc-4
tion Fund shall not be adjusted pursuant to 5
this paragraph.’’; and 6
(C) in paragraph (4)(B), by striking ‘‘10 7
years’’ and inserting ‘‘15 years’’; and 8
(2) in subsection (b)— 9
(A) in paragraph (1), by striking 10
‘‘$30,000,000, as adjusted under paragraph 11
(3), for the period of fiscal years 2009 through 12
2019’’ and inserting ‘‘$37,500,000, as adjusted 13
under paragraph (3), for the period of fiscal 14
years 2009 through 2032’’; 15
(B) in paragraph (2), by striking ‘‘2024’’ 16
and inserting ‘‘2032’’; and 17
(C) in paragraph (3), by striking ‘‘The 18
amount under paragraph (1)’’ and inserting 19
‘‘The amount under paragraphs (1) and (2)’’. 20
(e) T
AXATION OFCONSTRUCTION, OPERATION, AND 21
M
AINTENANCE OFPROJECTFACILITIES.— 22
(1) I
N GENERAL.—Part III of the North-23
western New Mexico Rural Water Projects Act 24
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(Public Law 111–11; 123 Stat. 1379) is amended by 1
adding at the end the following: 2
‘‘SEC. 10610. TAXATION OF CONSTRUCTION, OPERATION, 3
AND MAINTENANCE OF PROJECT FACILITIES. 4
‘‘(a) N
ATIONLAND.—Any activity constituting the 5
construction, operation, or maintenance of Project facili-6
ties— 7
‘‘(1) shall, if the activity takes place on land 8
that is held in trust by the United States for the 9
benefit of the Nation, be subject to taxation by the 10
Nation; and 11
‘‘(2) shall not be subject to any fee, tax, assess-12
ment, levy, or other charge imposed by any State or 13
political subdivision of a State. 14
‘‘(b) O
THERLAND.—Any activity constituting the 15
construction, operation, or maintenance of Project facili-16
ties— 17
‘‘(1) shall, if the activity takes place on land 18
other than the land described in subsection (a)(1), 19
be subject to taxation by the State in which the land 20
is located, or by a political subdivision of that State 21
to the extent authorized by the laws of that State; 22
and 23
‘‘(2) shall not be subject to any fee, tax, assess-24
ment, levy, or other charge imposed by the Nation.’’. 25
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(2) CLERICAL AMENDMENT .—The table of con-1
tents in section 1(b) of the Omnibus Public Land 2
Management Act of 2009 (Public Law 111–11; 123 3
Stat. 991) is amended by inserting after the item re-4
lating to section 10609 the following: 5
‘‘Sec. 10610. Taxation of construction, operation, and maintenance of Project
facilities.’’.
SEC. 4. NAVAJO NATION WATER RIGHTS.
6
(a) A
GREEMENT.—Section 10701(e) of the North-7
western New Mexico Rural Water Projects Act (Public 8
Law 111–11; 123 Stat. 1400; 129 Stat. 528) is amend-9
ed— 10
(1) in paragraph (1)(A)— 11
(A) by striking clause (vii) and inserting 12
the following: 13
‘‘(vii) N
AVAJO NATION WATER RE -14
SOURCES DEVELOPMENT TRUST FUND .— 15
Not later than December 31, 2019, the 16
United States shall make all deposits into 17
the Navajo Nation Water Resources Devel-18
opment Trust Fund established by section 19
10702(a)(1).’’; 20
(B) in clause (viii), by striking ‘‘2019’’ and 21
inserting ‘‘2032’’; 22
(C) in clause (ix), by striking ‘‘2024’’ and 23
inserting ‘‘2029’’; and 24
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(D) by adding at the end the following: 1
‘‘(x) D
EFERRED CONSTRUCTION 2
FUND.— 3
‘‘(I) I
N GENERAL.—Not later 4
than December 31, 2029, the United 5
States shall make all deposits into the 6
Deferred Construction Fund in ac-7
cordance with section 10602(i)(3). 8
‘‘(II) P
ROJECT DEADLINE .—On 9
deposit of the amounts into the De-10
ferred Construction Fund under sub-11
clause (I), even if certain Project fa-12
cilities have not yet been constructed, 13
the Secretary shall be deemed to have 14
met the deadline described in clause 15
(ix).’’; and 16
(2) in paragraph (2)(B)— 17
(A) in clause (i), by striking ‘‘Trust Fund’’ 18
and inserting ‘‘Settlement Trust Funds’’; and 19
(B) in clause (ii), by striking ‘‘Trust 20
Fund’’ and inserting ‘‘Settlement Trust 21
Funds’’. 22
(b) S
ETTLEMENTTRUSTFUNDS.— 23
(1) I
N GENERAL.—Section 10702 of the North-24
western New Mexico Rural Water Projects Act 25
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(Public Law 111–11; 123 Stat. 1402) is amended to 1
read as follows: 2
‘‘SEC. 10702. SETTLEMENT TRUST FUNDS. 3
‘‘(a) N
AVAJONATIONWATERRESOURCESDEVELOP-4
MENTTRUSTFUND.— 5
‘‘(1) E
STABLISHMENT.—There is established in 6
the Treasury a fund, to be known as the ‘Navajo 7
Nation Water Resources Development Trust Fund’, 8
consisting of— 9
‘‘(A) such amounts as are appropriated to 10
the Navajo Nation Water Resources Develop-11
ment Trust Fund under paragraph (5); and 12
‘‘(B) any interest earned on investment of 13
amounts in the Navajo Nation Water Resources 14
Development Trust Fund under paragraph (3). 15
‘‘(2) U
SE OF FUNDS.—The Nation may use 16
amounts in the Navajo Nation Water Resources De-17
velopment Trust Fund— 18
‘‘(A) to investigate, construct, operate, 19
maintain, or replace water project facilities, in-20
cluding facilities conveyed to the Nation under 21
this subtitle and facilities owned by the United 22
States for which the Nation is responsible for 23
operation, maintenance, and replacement costs; 24
and 25
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‘‘(B) to investigate, implement, or improve 1
a water conservation measure (including a me-2
tering or monitoring activity) necessary for the 3
Nation to make use of a water right of the Na-4
tion under the Agreement. 5
‘‘(3) I
NVESTMENT.—Beginning on October 1, 6
2019, the Secretary shall invest amounts in the Nav-7
ajo Nation Water Resources Development Trust 8
Fund in accordance with subsection (e). 9
‘‘(4) I
NVESTMENT EARNINGS .—Any investment 10
earnings, including interest, credited to amounts 11
held in the Navajo Nation Water Resources Develop-12
ment Trust Fund are authorized to be used in ac-13
cordance with paragraph (2). 14
‘‘(5) A
UTHORIZATION OF APPROPRIATIONS .— 15
There are authorized to be appropriated for deposit 16
in the Navajo Nation Water Resources Development 17
Trust Fund— 18
‘‘(A) $6,000,000 for each of fiscal years 19
2010 through 2014; and 20
‘‘(B) $4,000,000 for each of fiscal years 21
2015 through 2019. 22
‘‘(6) A
VAILABILITY.—Any amount authorized to 23
be appropriated to the Navajo Nation Water Re-24
sources Development Trust Fund under paragraph 25
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(5) shall not be available for expenditure or with-1
drawal— 2
‘‘(A) before December 31, 2019; and 3
‘‘(B) until the date on which the court in 4
the stream adjudication has entered— 5
‘‘(i) the Partial Final Decree; and 6
‘‘(ii) the Supplemental Partial Final 7
Decree. 8
‘‘(7) M
ANAGEMENT.—The Secretary shall man-9
age the Navajo Nation Water Resources Develop-10
ment Trust Fund in accordance with subsection (d). 11
‘‘(8) C
ONDITIONS FOR EXPENDITURE AND 12
WITHDRAWAL.—After the funds become available 13
pursuant to paragraph (6), all expenditures and 14
withdrawals by the Nation of funds in the Navajo 15
Nation Water Resources Development Trust Fund 16
must comply with the requirements of subsection (f). 17
‘‘(b) N
AVAJONATIONOPERATIONS, MAINTENANCE, 18
ANDREPLACEMENTTRUSTFUND.— 19
‘‘(1) E
STABLISHMENT.—The Secretary shall es-20
tablish a trust fund to be known as the ‘Navajo Na-21
tion Operations, Maintenance, and Replacement 22
Trust Fund’ for the purposes set forth in paragraph 23
(2), to be managed, invested, and distributed by the 24
Secretary, and to remain available until expended, 25
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withdrawn, or reverted to the general fund of the 1
Treasury, consisting of the amounts deposited in the 2
trust fund under paragraph (3), together with any 3
interests earned on those amounts under paragraph 4
(4). 5
‘‘(2) U
SE OF FUNDS.—The Nation may use 6
amounts in the Navajo Nation Operations, Mainte-7
nance, and Replacement Trust Fund to pay oper-8
ation, maintenance, and replacement costs of the 9
Project allocable to the Nation under section 10604. 10
‘‘(3) A
UTHORIZATION OF APPROPRIATIONS .— 11
There are authorized to be appropriated for deposit 12
in the Navajo Nation Operations, Maintenance, and 13
Replacement Trust Fund $250,000,000. 14
‘‘(4) I
NVESTMENT.—Upon deposit of funding 15
into the Navajo Nation Operations, Maintenance, 16
and Replacement Trust Fund pursuant to para-17
graph (3), the Secretary shall invest amounts depos-18
ited in accordance with subsection (e). 19
‘‘(5) I
NVESTMENT EARNINGS .—Any investment 20
earnings, including interest, credited to amounts 21
held in the Navajo Nation Operations, Maintenance, 22
and Replacement Trust Fund are authorized to be 23
used in accordance with paragraph (2). 24
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‘‘(6) AVAILABILITY.—Any amount authorized to 1
be appropriated to the Navajo Nation Operations, 2
Maintenance, and Replacement Trust Fund under 3
paragraph (3) shall not be available for expenditure 4
or withdrawal until the Nation is responsible for 5
payment of operation, maintenance, and replacement 6
costs as set forth in section 10603(g). 7
‘‘(7) F
LUCTUATION IN COSTS.— 8
‘‘(A) I
N GENERAL.—The amounts author-9
ized to be appropriated under paragraph (3) 10
shall be increased or decreased, as appropriate, 11
by such amounts as may be justified by reason 12
of ordinary fluctuations in costs occurring after 13
October 2022 as indicated by the Bureau of 14
Reclamation Operation and Maintenance Cost 15
Index. 16
‘‘(B) R
EPETITION.—The adjustment proc-17
ess under this subparagraph shall be repeated 18
for each subsequent amount appropriated until 19
the amount authorized, as adjusted, has been 20
appropriated. 21
‘‘(C) P
ERIOD OF INDEXING .—The period 22
of indexing adjustment under this subpara-23
graph for any increment of funding shall end on 24
the date on which the funds are deposited into 25
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the Navajo Nation Operations, Maintenance, 1
and Replacement Trust Fund. 2
‘‘(8) M
ANAGEMENT.—The Secretary shall man-3
age the Navajo Nation Operations, Maintenance, 4
and Replacement Trust Fund in accordance with 5
subsection (d). 6
‘‘(9) C
ONDITIONS FOR EXPENDITURE AND 7
WITHDRAWAL.—All expenditures and withdrawals by 8
the Nation of funds in the Navajo Nation Oper-9
ations, Maintenance, and Replacement Trust Fund 10
must comply with the requirements of subsection (f). 11
‘‘(c) J
ICARILLAAPACHENATIONOPERATIONS, 12
M
AINTENANCE, ANDREPLACEMENTTRUSTFUND.— 13
‘‘(1) P
REREQUISITE TO ESTABLISHMENT .— 14
Prior to establishment of the trust fund under para-15
graph (2), the Secretary shall conduct an Ability to 16
Pay study to determine what operation, mainte-17
nance, and replacement costs of that section of the 18
Project serving the Jicarilla Apache Nation are in 19
excess of the ability of the Jicarilla Apache Nation 20
to pay. 21
‘‘(2) E
STABLISHMENT.—Upon completion of 22
the Ability to Pay study as set forth in paragraph 23
(1), the Secretary shall establish a trust fund to be 24
known as the ‘Jicarilla Apache Nation Operations, 25
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Maintenance, and Replacement Trust Fund’ for the 1
purposes set forth in paragraph (3), to be managed, 2
invested, and distributed by the Secretary and to re-3
main available until expended, withdrawn, or re-4
verted to the general fund of the Treasury, con-5
sisting of the amounts deposited in the trust fund 6
under paragraph (4), together with any interests 7
earned on those amounts under paragraph (5). 8
‘‘(3) U
SE OF FUNDS.—The Jicarilla Apache 9
Nation may use amounts in the Jicarilla Apache Na-10
tion Operations, Maintenance, and Replacement 11
Trust Fund to pay operation, maintenance, and re-12
placement costs of the Project allocable to the 13
Jicarilla Nation under section 10604. 14
‘‘(4) A
UTHORIZATION OF APPROPRIATIONS .— 15
There are authorized to be appropriated for deposit 16
in the Jicarilla Apache Nation Operations, Mainte-17
nance, and Replacement Trust Fund the amounts 18
the Secretary has determined are in excess of the 19
ability of the Jicarilla Apache Nation to pay in the 20
Ability to Pay study required under paragraph (1) 21
up to a maximum of $10,000,000. 22
‘‘(5) I
NVESTMENT.—Upon deposit of funding 23
into the Jicarilla Apache Nation Operations, Mainte-24
nance, and Replacement Trust Fund pursuant to 25
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paragraph (4), the Secretary shall invest amounts in 1
the fund in accordance with subsection (e). 2
‘‘(6) I
NVESTMENT EARNINGS .—Any investment 3
earnings, including interest, credited to amounts 4
held in the Jicarilla Apache Nation Operations, 5
Maintenance, and Replacement Trust Fund are au-6
thorized to be used in accordance with paragraph 7
(3). 8
‘‘(7) A
VAILABILITY.—Any amount authorized to 9
be appropriated to the Jicarilla Apache Nation Op-10
erations, Maintenance, and Replacement Trust Fund 11
under paragraph (4) shall not be available for ex-12
penditure or withdrawal until the Jicarilla Apache 13
Nation is responsible for payment of operation, 14
maintenance, and replacement costs as set forth in 15
section 10603(g). 16
‘‘(8) F
LUCTUATION IN COSTS.— 17
‘‘(A) I
N GENERAL.—The amounts author-18
ized to be appropriated under paragraph (4) 19
shall be increased or decreased, as appropriate, 20
by such amounts as may be justified by reason 21
of ordinary fluctuations in costs occurring after 22
October 2022 as indicated by the Bureau of 23
Reclamation Operation and Maintenance Cost 24
Index. 25
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‘‘(B) REPETITION.—The adjustment proc-1
ess under this subparagraph shall be repeated 2
for each subsequent amount appropriated until 3
the amount authorized, as adjusted, has been 4
appropriated. 5
‘‘(C) P
ERIOD OF INDEXING .—The period 6
of indexing adjustment under this subpara-7
graph for any increment of funding shall end on 8
the date on which the funds are deposited into 9
the Jicarilla Apache Nation Operations, Mainte-10
nance, and Replacement Trust Fund. 11
‘‘(9) M
ANAGEMENT.—The Secretary shall man-12
age the Jicarilla Apache Nation Operations, Mainte-13
nance, and Replacement Trust Fund in accordance 14
with subsection (d). 15
‘‘(10) C
ONDITIONS FOR EXPENDITURE AND 16
WITHDRAWAL.—All expenditures and withdrawals by 17
the Jicarilla Apache Nation of funds in the Jicarilla 18
Apache Nation Operations, Maintenance, and Re-19
placement Trust Fund must comply with the re-20
quirements of subsection (f). 21
‘‘(d) M
ANAGEMENT.—The Secretary shall manage 22
the Settlement Trust Funds, invest amounts in the Settle-23
ment Trust Funds pursuant to subsection (e), and make 24
amounts available from the Settlement Trust Funds for 25
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distribution to the Nation and the Jicarilla Apache Nation 1
in accordance with the American Indian Trust Fund Man-2
agement Reform Act of 1994 (25 U.S.C. 4001 et seq.). 3
‘‘(e) I
NVESTMENT OF THE TRUSTFUNDS.—The Sec-4
retary shall invest amounts in the Settlement Trust Funds 5
in accordance with— 6
‘‘(1) the Act of April 1, 1880 (25 U.S.C. 161); 7
‘‘(2) the first section of the Act of June 24, 8
1938 (25 U.S.C. 162a); and 9
‘‘(3) the American Indian Trust Fund Manage-10
ment Reform Act of 1994 (25 U.S.C. 4001 et seq.). 11
‘‘(f) C
ONDITIONS FOR EXPENDITURES AND WITH-12
DRAWALS.— 13
‘‘(1) T
RIBAL MANAGEMENT PLAN .— 14
‘‘(A) I
N GENERAL.—On approval by the 15
Secretary of a Tribal management plan in ac-16
cordance with the American Indian Trust Fund 17
Management Reform Act of 1994 (25 U.S.C. 18
4001 et seq.), the Nation and the Jicarilla 19
Apache Nation may withdraw all or a portion of 20
the amounts in the Settlement Trust Funds. 21
‘‘(B) R
EQUIREMENTS.—In addition to any 22
requirements under the American Indian Trust 23
Fund Management Reform Act of 1994 (25 24
U.S.C. 4001 et seq.), a Tribal management 25
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plan shall require that the Nation and Jicarilla 1
Apache Nation only use amounts in the Settle-2
ment Trust Funds for the purposes described in 3
subsection (a)(2), (b)(2), or (c)(3), as applica-4
ble. 5
‘‘(2) E
NFORCEMENT.—The Secretary may take 6
judicial or administrative action to enforce the provi-7
sions of any Tribal management plan to ensure that 8
any amounts withdrawn from the Settlement Trust 9
Funds are used in accordance with this subtitle. 10
‘‘(3) N
O LIABILITY.—The Secretary or the Sec-11
retary of the Treasury shall not be liable for the ex-12
penditure or investment of any amounts withdrawn 13
from the Settlement Trust Funds by the Nation or 14
the Jicarilla Apache Nation. 15
‘‘(4) E
XPENDITURE PLAN.— 16
‘‘(A) I
N GENERAL.—The Nation and 17
Jicarilla Apache Nation shall submit to the Sec-18
retary for approval an expenditure plan for any 19
portion of the amounts in the Settlement Trust 20
Funds made available under this section that 21
the Nation or the Jicarilla Apache Nation does 22
not withdraw under this subsection. 23
‘‘(B) D
ESCRIPTION.—An expenditure plan 24
submitted under subparagraph (A) shall de-25
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scribe the manner in which, and the purposes 1
for which, funds of the Nation or the Jicarilla 2
Apache Nation remaining in the Settlement 3
Trust Funds will be used. 4
‘‘(C) A
PPROVAL.—On receipt of an ex-5
penditure plan under subparagraph (A), the 6
Secretary shall approve the plan if the Sec-7
retary determines that the plan is reasonable 8
and consistent with this subtitle. 9
‘‘(5) A
NNUAL REPORT .—The Nation and 10
Jicarilla Apache Nation shall submit to the Sec-11
retary an annual report that describes any expendi-12
tures from the Settlement Trust Funds during the 13
year covered by the report. 14
‘‘(6) L
IMITATION.—No portion of the amounts 15
in the Settlement Trust Funds shall be distributed 16
to any Nation or Jicarilla Apache Nation member on 17
a per capita basis.’’. 18
(2) C
LERICAL AMENDMENT .—The table of con-19
tents in section 1(b) of the Omnibus Public Land 20
Management Act of 2009 (Public Law 111–11; 123 21
Stat. 991) is amended by striking the item relating 22
to section 10702 and inserting the following: 23
‘‘Sec. 10702. Settlement trust funds.’’.
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(c) WAIVERS ANDRELEASES.—Section 10703 of the 1
Northwestern New Mexico Rural Water Projects Act 2
(Public Law 111–11; 123 Stat. 1403) is amended— 3
(1) in subsection (d)(1)(A), by striking ‘‘2025’’ 4
and inserting ‘‘2030’’; and 5
(2) in subsection (e)(2), in the matter preceding 6
subparagraph (A), by striking ‘‘2025’’ and inserting 7
‘‘2030’’. 8
SEC. 5. NON-PROJECT WATER FOR USE IN THE STATE OF 9
UTAH. 10
Section 10602(h) of the Northwestern New Mexico 11
Rural Water Projects Act (Public Law 111–11; 123 Stat. 12
1382) is amended— 13
(1) in paragraph (1), in the matter preceding 14
subparagraph (A), by striking ‘‘paragraph (2)’’ and 15
inserting ‘‘paragraph (3)’’; 16
(2) by redesignating paragraph (2) as para-17
graph (3); and 18
(3) by inserting after paragraph (1) the fol-19
lowing: 20
‘‘(2) C
ONVEYANCE OF NON -PROJECT WATER TO 21
THE STATE OF UTAH.— 22
‘‘(A) D
EFINITIONS.—In this paragraph: 23
‘‘(i) N
AVAJO/UTAH SETTLEMENT 24
AGREEMENT.—The term ‘Navajo/Utah 25
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Settlement Agreement’ means the agree-1
ment entitled ‘Navajo Nation/State of 2
Utah Water Rights Settlement Agree-3
ment’, dated May 27, 2022, and author-4
ized by section 1102 of title XI of division 5
FF of Public Law 116–260 (134 Stat. 6
3224). 7
‘‘(ii) N
AVAJO-UTAH WATER RIGHTS .— 8
The term ‘Navajo-Utah water rights’ has 9
the meaning given the term ‘Navajo water 10
rights’ in section 1102(b) of title XI of di-11
vision FF of Public Law 116–260 (134 12
Stat. 3225). 13
‘‘(B) I
N GENERAL.—Subject to paragraph 14
(1), the Nation may provide non-Project water 15
to communities of the Nation in the State of 16
Utah, subject to the conditions that— 17
‘‘(i) not more than 2,000 acre-feet per 18
year of non-Project water may be treated, 19
stored, or conveyed through Project and 20
non-Project infrastructure for the benefit 21
of those communities; 22
‘‘(ii) any non-Project water treated or 23
conveyed through Project and non-Project 24
infrastructure and delivered to the New 25
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Mexico state line for the benefit of those 1
communities shall— 2
‘‘(I) be considered part of the 3
Navajo-Utah water rights as quan-4
tified in section 1102(d)(1)(A) of title 5
XI of division FF of Public Law 116– 6
260 (134 Stat. 3227); and 7
‘‘(II) be accounted for as a deple-8
tion by the Nation to be counted 9
against the apportionment of the 10
State of Utah under the Compact for 11
purposes of the depletion accounting 12
under the Navajo/Utah Settlement 13
Agreement; 14
‘‘(iii) Project funds shall not be used 15
to design, plan, construct, operate, main-16
tain, or repair any additional infrastruc-17
ture in the State of New Mexico or any in-18
frastructure in the State of Arizona or 19
Utah to join the Project infrastructure to 20
the Sweetwater pipeline (non-Project infra-21
structure); 22
‘‘(iv) the share of any Project Partici-23
pants’ Project operation, maintenance, and 24
replacement costs shall not be increased in 25
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•HR 1482 IH
connection with the use of non-Project in-1
frastructure; 2
‘‘(v) the United States shall have no 3
responsibility or obligation to provide non- 4
Project water to those communities under 5
this paragraph and no Federal funding 6
shall be provided for the costs to construct, 7
operate, maintain, and replace any non- 8
Project infrastructure necessary for stor-9
age and conveyance of non-Project water 10
from the State of New Mexico to serve 11
those communities except for funds author-12
ized under— 13
‘‘(I) section 1102 of title XI of 14
division FF of Public Law 116–260 15
(134 Stat. 3224); 16
‘‘(II) section 7 of the Act of Au-17
gust 5, 1954 (42 U.S.C. 2004a); and 18
‘‘(III) the Indian Health Care 19
Improvement Act (25 U.S.C. 1601 et 20
seq.); 21
‘‘(vi) efforts associated with providing 22
non-Project water to those communities 23
shall not delay the Project, or any compo-24
nent of the Project, in a manner that 25
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would be prejudicial to any Project Partici-1
pant; and 2
‘‘(vii) in addition to the requirements 3
of this paragraph, delivery of non-Project 4
water under this paragraph is subject to— 5
‘‘(I) the terms of the Navajo/ 6
Utah Settlement Agreement; 7
‘‘(II) the State of Utah issuing a 8
decreed water right pursuant to the 9
terms of the Navajo/Utah Settlement 10
Agreement; 11
‘‘(III) the State of Utah not in-12
curring additional financial obligations 13
beyond those identified in the Navajo/ 14
Utah Settlement Agreement; and 15
‘‘(IV) the execution of an imple-16
mentation agreement between the Na-17
tion and the State of Utah relating to 18
accounting and measurement of non- 19
Project water under this paragraph to 20
be consistent with the terms of the 21
Navajo/Utah Settlement Agreement. 22
‘‘(C) C
LARIFICATION.—The State of New 23
Mexico shall have no responsibility or obligation 24
to provide— 25
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‘‘(i) non-Project water to communities 1
of the Nation in the State of Utah under 2
this paragraph; or 3
‘‘(ii) any funding under this para-4
graph.’’. 5
Æ
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