[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1482 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
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
February 21, 2025
Ms. Leger Fernandez (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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Navajo-Gallup Water Supply Project
Amendments Act of 2025''.
SEC. 2. DEFINITIONS.
Section 10302 of the Northwestern New Mexico Rural Water Projects
Act (43 U.S.C. 407 note; Public Law 111-11) is amended--
(1) by striking paragraph (29);
(2) by redesignating paragraphs (12), (13), (14), (15),
(16), (17), (18), (19), (20), (21), (22), (23), (24), (25),
(26), (27), (28), and (30) as paragraphs (13), (14), (15),
(16), (17), (18), (19), (20), (21), (22), (23), (24), (25),
(27), (28), (30), (31), and (32), respectively;
(3) by inserting after paragraph (11) the following:
``(12) Deferred construction fund.--The term `Deferred
Construction Fund' means the Navajo Nation's Navajo-Gallup
Water Supply Project Deferred Construction Fund established by
section 10602(i)(1)(A).'';
(4) in paragraph (14) (as so redesignated)--
(A) in the paragraph heading, by striking ``Draft''
and inserting ``Final environmental'';
(B) by striking ``Draft Impact'' and inserting
``Final Environmental'';
(C) by striking ``draft environmental'' and
inserting ``final environmental''; and
(D) by striking ``March 2007'' and inserting ``July
6, 2009'';
(5) in paragraph (19) (as so redesignated), by striking
``Draft'' and inserting ``Final Environmental'';
(6) by inserting after paragraph (25) (as so redesignated)
the following:
``(26) Project service area.--The term `Project Service
Area' means the area that encompasses the 43 Nation chapters,
the southwest portion of the Jicarilla Apache Reservation, and
the City that is identified to be served by the Project, as
illustrated in figure IV-5 (Drawing No. 1695-406-49) of the
Final Environmental Impact Statement.'';
(7) by inserting after paragraph (28) (as so redesignated)
the following:
``(29) Settlement trust funds.--The term `Settlement Trust
Funds' means--
``(A) the Navajo Nation Water Resources Development
Trust Fund established by subsection (a)(1) of section
10702;
``(B) the Navajo Nation Operations, Maintenance,
and Replacement Trust Fund established under subsection
(b)(1) of that section; and
``(C) the Jicarilla Apache Nation Operations,
Maintenance, and Replacement Trust Fund established
under subsection (c)(2) of that section.''; and
(8) by adding at the end the following:
``(33) Working cost estimate.--The term `Working Cost
Estimate' means the Bureau of Reclamation document entitled
`NGWSP October 2022 WCE' and dated February 26, 2023, that
details the costs totaling $2,138,387,000, at the October 2022
price level, of the Project, as configured on that date.''.
SEC. 3. NAVAJO-GALLUP WATER SUPPLY PROJECT.
(a) Authorization of Navajo-Gallup Water Supply Project.--Section
10602 of the Northwestern New Mexico Rural Water Projects Act (Public
Law 111-11; 123 Stat. 1379) is amended--
(1) in subsection (a)--
(A) in the subsection heading, by striking ``In
General'' and inserting ``Authorization'';
(B) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'';
(C) in paragraph (1) (as so designated), by
striking ``Draft Impact Statement'' and inserting
``Final Environmental Impact Statement, as further
refined in, and including the facilities identified in,
the Working Cost Estimate and any subsequent
supplemental documents prepared in accordance with the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.).''; and
(D) by adding at the end the following:
``(2) Additional service areas.--
``(A) Findings.--Congress finds that--
``(i) expanding the Project Service Area
would create opportunities to increase service
for additional Nation Tribal members and would
not increase the cost of the Project beyond
authorization levels described in section
10609(a); and
``(ii) the unit operations and maintenance
costs of the Project would be reduced by adding
more customers to the Project.
``(B) Authorizations for additional project service
areas.--
``(i) New mexico.--In addition to
delivering water supply from the Project to the
Nation communities in the San Juan River Basin,
the Nation may expand the Project Service Area
in order to deliver water supply from the
Project to communities of the Nation within the
Rio San Jose Basin, New Mexico.
``(ii) Arizona.--In addition to delivering
water supply from the Project to the Nation
communities of Fort Defiance and Window Rock,
Arizona, and subject to section 10603(c)(1),
the Nation may expand the Project Service Area
in order to deliver water supply from the
Project to the Nation community of Lupton,
Arizona, within the Little Colorado River
Basin, Arizona.'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1)--
(i) by inserting ``acquire,'' before
``construct,''; and
(ii) by striking ``Draft Impact Statement''
and inserting ``Final Environmental Impact
Statement, as further refined in, and including
the facilities identified in, the Working Cost
Estimate and any subsequent supplemental
documents prepared in accordance with the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.)'';
(B) by striking paragraph (1) and inserting the
following:
``(1) The water conveyance and storage facilities
associated with the San Juan Generating Station (the coal-
fired, 4-unit electric power plant and ancillary features
located by the San Juan Mine near Waterflow, New Mexico),
including the diversion dam, the intake structure, the river
pumping plant, the pipeline from the river to the reservoir,
the dam and associated reservoir, and any associated land, or
interest in land, or ancillary features.'';
(C) in paragraph (2)(A)--
(i) by striking ``River near Kirtland, New
Mexico,'' and inserting ``Generating Station
Reservoir''; and
(ii) by inserting ``generally'' before
``follows United States Highway 491'';
(D) in paragraph (3)(A), by inserting ``generally''
before ``follows United States Highway 550''; and
(E) in paragraph (5), by inserting ``(including any
reservoir facility)'' after ``treatment facility'';
(3) in subsection (c)--
(A) in the subsection heading, by inserting ``and
Facilities'' after ``Land'';
(B) in paragraph (1), by striking ``any land or
interest in land that is'' and inserting ``any land or
facilities, or interest in land or facilities, that
are''; and
(C) by adding at the end the following:
``(4) Land to be taken into trust.--
``(A) In general.--On satisfaction of the
conditions described in paragraph (7) of the Agreement
and after the requirements of sections 10701(e) and
10703 are met, the Secretary shall take legal title to
the following land and, subject to subparagraph (D),
hold that land in trust for the benefit of the Nation:
``(i) Fee land of the Nation, including--
``(I) the parcels of land on which
the Tohlakai Pumping Plant, Reach 12A
and Reach 12B, are located, including,
in McKinley County, New Mexico--
``(aa) sec. 5, T. 16 N., R.
18 W., New Mexico Prime
Meridian; and
``(bb) sec. 33, T. 17 N.,
R. 17 W., New Mexico Prime
Meridian (except lot 9 and the
NW\1/4\ of lot 4);
``(II) the parcel of land on which
Reach 12.1 is located, including--
``(aa) NW\1/4\ and SW\1/4\
sec. 5, T. 16 N., R. 18 W.;
``(bb) N\1/2\ sec. 11, T.
16 N., R. 19 W.; and
``(cc) sec. 12, T. 16 N.,
R. 20 W.; and
``(III) the parcel of land on which
Reach 12.2 is located, including NW\1/
4\. sec. 2, T. 16 N., R. 21 W.
``(ii) Public domain land managed by the
Bureau of Land Management, including--
``(I) the parcel of land on which
the Cutter Lateral Water Treatment
Plant is located, including S\1/2\ sec.
9, T. 25 N., R. 9 W., New Mexico Prime
Meridian; and
``(II) the parcel of land on which
the Navajo Agricultural Products
Industry turnout is located, including
NW\1/4\ and NE\1/4\ sec. 34, T. 26 N.,
R. 9 W., New Mexico Prime Meridian.
``(iii) The land underlying the San Juan
Generating Station (the coal-fired, 4-unit
electric power plant and ancillary features
located by the San Juan Mine near Waterflow,
New Mexico) acquired by the United States, as
described in subsection (b)(1).
``(B) Part of navajo nation.--The land taken into
trust under subparagraph (A) shall be part of the
Navajo Reservation and administered in accordance with
the laws and regulations generally applicable to land
held in trust by the United States for the benefit of
an Indian Tribe.
``(C) Restrictions.--
``(i) Fee land of the nation.--The fee land
of the Nation taken into trust under
subparagraph (A)(i) shall be subject to valid
existing rights, contracts, and management
agreements, including easements and rights-of-
way, unless the holder of the right, contract,
lease, permit, or right-of-way requests an
earlier termination in accordance with existing
law.
``(ii) Public domain land.--
``(I) In general.--The public
domain land managed by the Bureau of
Land Management taken into trust under
subparagraph (A)(ii) shall be subject
to valid existing rights, contracts,
leases, permits, and rights-of-way,
unless the holder of the right,
contract, lease, permit, or right-of-
way requests an earlier termination in
accordance with existing law.
``(II) BIA assumption of benefits
and obligations.--The Bureau of Indian
Affairs shall--
``(aa) assume all benefits
and obligations of the previous
land management agency under
the existing rights, contracts,
leases, permits, or rights-of-
way described in subclause (I);
and
``(bb) disburse to the
Nation any amounts that accrue
to the United States from those
rights, contracts, leases,
permits, or rights-of-ways
after the date on which the
land described in clause (ii)
of subparagraph (A) is taken
into trust for the benefit of
the Nation from any sale,
bonus, royalty, or rental
relating to that land in the
same manner as amounts received
from other land held by the
Secretary in trust for the
Nation.
``(iii) Land underlying the san juan
generating station.--
``(I) In general.--The land
underlying the San Juan Generating
Station (the coal-fired, 4-unit
electric power plant and ancillary
features located by the San Juan Mine
near Waterflow, New Mexico) taken into
trust under subparagraph (A)(iii) shall
be subject to a perpetual easement on
and over all of the land underlying the
San Juan Generating Station reserved to
the United States for use by the Bureau
of Reclamation and its contractors and
assigns--
``(aa) for ingress and
egress;
``(bb) to continue
construction of the Project;
and
``(cc) for operation and
maintenance of Project
facilities located on that
land.
``(II) Reserved perpetual
easement.--The reserved perpetual
easement described in subclause (I)
shall remain vested in the United
States unless title to the Project
facilities and appropriate interests in
land are conveyed pursuant to
subsection (f).
``(III) Reserved federal
facilities.--The United States shall
retain ownership of the San Juan
Generating Station (the coal-fired, 4-
unit electric power plant and ancillary
features located by the San Juan Mine
near Waterflow, New Mexico) water
conveyance and storage facilities when
the underlying land is taken into trust
under subparagraph (A)(iii) and title
to those facilities shall remain vested
in the United States unless title to
those facilities are conveyed pursuant
to subsection (f).
``(D) Savings clause.--Nothing in this paragraph
affects any--
``(i) water right of the Nation in
existence on the day before the date of
enactment of the Navajo-Gallup Water Supply
Project Amendments Act of 2025; and
``(ii) right or claim of the Nation to any
land or interest in land in existence on the
day before the date of enactment of the Navajo-
Gallup Water Supply Project Amendments Act of
2025.'';
(4) in subsection (d)(1)(D), by striking ``Draft'' and
inserting ``Final Environmental'';
(5) in subsection (e)--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary''; and
(B) by adding at the end the following:
``(2) Renewable energy and hydroelectric power.--
``(A) Renewable energy.--For any portion of the
Project that does not have access to Colorado River
Storage Project power, the Secretary may use not more
than $6,250,000 of the amounts made available under
section 10609(a)(1) to develop renewable energy.
``(B) Hydroelectric power.--Notwithstanding whether
a Project facility has access to Colorado River Storage
Project power, the Secretary may use not more than
$1,250,000 of the $6,250,000 authorized to be used to
develop renewable energy under subparagraph (A) to
develop hydroelectric power for any Project facility
that can use hydraulic head to produce electricity.'';
(6) in subsection (h)(1), in the matter preceding
subparagraph (A), by inserting ``, store,'' after ``treat'';
and
(7) by adding at the end the following:
``(i) Deferred Construction of Project Facilities.--
``(1) Deferred construction of project facilities.--On
mutual agreement between the Nation and the Secretary, and the
Jicarilla Apache Nation if the deferred Project facilities
benefit the Jicarilla Apache Nation, construction of selected
Project facilities may be deferred to save operation and
maintenance expenses associated with that construction.
``(2) Deferred construction fund.--
``(A) Establishment.--There is established in the
Treasury a fund, to be known as the `Navajo Nation's
Navajo-Gallup Water Supply Project Deferred
Construction Fund', to consist of--
``(i) amounts that correspond to portions
of the Project that have been deferred under
paragraph (1); and
``(ii) any interest or other gains on
amounts referred to in clause (i).
``(B) Use of the deferred construction fund.--The
Nation may use amounts in the Deferred Construction
Fund--
``(i) to construct Project facilities that
have been deferred under paragraph (1); or
``(ii) to construct alternate facilities
agreed on under subparagraph (C).
``(C) Alternate facilities consistent with the
purpose of the project.--On agreement between the
Nation and the Secretary, and the Jicarilla Apache
Nation if the deferred Project facilities benefit the
Jicarilla Apache Nation, and in compliance with all
applicable environmental and cultural resource
protection laws, facilities other than those previously
agreed to be deferred under paragraph (1) may be
constructed if those alternate facilities are
consistent with the purposes of the Project described
in section 10601.
``(3) Amounts to be deposited.--Funds allocated from the
amounts made available under section 10609(a)(1) to build
facilities referred to in paragraph (1) shall be deposited into
the Deferred Construction Fund.
``(4) Adjustments.--On deposit of amounts into the Deferred
Construction Fund under paragraph (3), the adjustments to
authorized appropriations under section 10609(a)(2) shall no
longer apply to those amounts.
``(5) Deadline to construct project facilities.--On deposit
of all amounts into the Deferred Construction Fund for
construction of Project facilities agreed on under paragraph
(1), the Secretary shall be deemed to have met the obligation
under section 10701(e)(1)(A)(ix).
``(6) Future construction of project facilities.--On
agreement between the Nation and the Secretary, and the
Jicarilla Apache Nation if the deferred Project facilities
benefit the Jicarilla Apache Nation, the Nation shall use
amounts deposited into the Deferred Construction Fund to
construct--
``(A) Project facilities deferred under paragraph
(1); or
``(B) alternate Project facilities described in
paragraph (2)(C).''.
(b) Delivery and Use of Navajo-Gallup Water Supply Project Water.--
Section 10603 of the Northwestern New Mexico Rural Water Projects Act
(Public Law 111-11; 123 Stat. 1382) is amended--
(1) in subsection (a)(3)(B)--
(A) in clause (i), by inserting ``or, if generated
on City-owned facilities, by the City'' after ``the
Nation''; and
(B) in clause (ii), by inserting ``, except that
the City shall retain all revenue from the sale of
hydroelectric power that is generated on City-owned
facilities'' after ``hydroelectric power''; and
(2) in subsection (g)(2), by striking ``, except as
provided in section 10604(f)''.
(c) Project Contracts.--Section 10604 of the Northwestern New
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1388) is
amended--
(1) in subsection (a)(4), by striking ``Subject to
subsection (f), the'' and inserting ``The'';
(2) in subsection (b)(3)--
(A) in subparagraph (A), by striking ``subparagraph
(B)'' and inserting ``subparagraphs (B) and (C)'';
(B) in subparagraph (B)--
(i) in the subparagraph heading, by
striking ``Minimum percentage'' and inserting
``Maximum percentage'';
(ii) by striking ``at least 25 percent''
and inserting ``not more than 25 percent''; and
(iii) by striking ``, but shall in no event
exceed 35 percent''; and
(C) by adding at the end the following:
``(C) Maximum repayment obligation.--The repayment
obligation of the City referred to in subparagraphs (A)
and (B) shall not exceed $76,000,000.'';
(3) in subsection (c)(1)(B), by inserting ``subsection (f)
and'' before ``section 10603(g)'';
(4) in subsection (d)(1), by striking ``Draft'' and
inserting ``Final Environmental'';
(5) in subsection (e), by striking ``Draft'' and inserting
``Final Environmental'';
(6) by striking subsection (f); and
(7) by redesignating subsection (g) as subsection (f).
(d) Authorization of Appropriations.--Section 10609 of the
Northwestern New Mexico Rural Water Projects Act (Public Law 111-11;
123 Stat. 1395; 129 Stat. 528) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``$870,000,000
for the period of fiscal years 2009 through 2024'' and
inserting ``$2,175,000,000 for the period of fiscal
years 2009 through 2029'';
(B) by striking paragraph (2) and inserting the
following:
``(2) Adjustments.--
``(A) In general.--The amount under paragraph (1)
shall be adjusted by such amounts as may be required--
``(i) by reason of changes since October
2022 in construction cost changes in applicable
regulatory standards, as indicated by
engineering cost indices applicable to the
types of construction involved; and
``(ii) to address construction cost changes
necessary to account for unforeseen market
volatility that may not otherwise be captured
by engineering cost indices described in clause
(i), as determined by the Secretary, including
repricing applicable to the types of
construction and current industry standards
involved.
``(B) Deferred construction fund.--Amounts
deposited in the Deferred Construction Fund shall not
be adjusted pursuant to this paragraph.''; and
(C) in paragraph (4)(B), by striking ``10 years''
and inserting ``15 years''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``$30,000,000, as
adjusted under paragraph (3), for the period of fiscal
years 2009 through 2019'' and inserting ``$37,500,000,
as adjusted under paragraph (3), for the period of
fiscal years 2009 through 2032'';
(B) in paragraph (2), by striking ``2024'' and
inserting ``2032''; and
(C) in paragraph (3), by striking ``The amount
under paragraph (1)'' and inserting ``The amount under
paragraphs (1) and (2)''.
(e) Taxation of Construction, Operation, and Maintenance of Project
Facilities.--
(1) In general.--Part III of the Northwestern New Mexico
Rural Water Projects Act (Public Law 111-11; 123 Stat. 1379) is
amended by adding at the end the following:
``SEC. 10610. TAXATION OF CONSTRUCTION, OPERATION, AND MAINTENANCE OF
PROJECT FACILITIES.
``(a) Nation Land.--Any activity constituting the construction,
operation, or maintenance of Project facilities--
``(1) shall, if the activity takes place on land that is
held in trust by the United States for the benefit of the
Nation, be subject to taxation by the Nation; and
``(2) shall not be subject to any fee, tax, assessment,
levy, or other charge imposed by any State or political
subdivision of a State.
``(b) Other Land.--Any activity constituting the construction,
operation, or maintenance of Project facilities--
``(1) shall, if the activity takes place on land other than
the land described in subsection (a)(1), be subject to taxation
by the State in which the land is located, or by a political
subdivision of that State to the extent authorized by the laws
of that State; and
``(2) shall not be subject to any fee, tax, assessment,
levy, or other charge imposed by the Nation.''.
(2) Clerical amendment.--The table of contents in section
1(b) of the Omnibus Public Land Management Act of 2009 (Public
Law 111-11; 123 Stat. 991) is amended by inserting after the
item relating to section 10609 the following:
``Sec. 10610. Taxation of construction, operation, and maintenance of
Project facilities.''.
SEC. 4. NAVAJO NATION WATER RIGHTS.
(a) Agreement.--Section 10701(e) of the Northwestern New Mexico
Rural Water Projects Act (Public Law 111-11; 123 Stat. 1400; 129 Stat.
528) is amended--
(1) in paragraph (1)(A)--
(A) by striking clause (vii) and inserting the
following:
``(vii) Navajo nation water resources
development trust fund.--Not later than
December 31, 2019, the United States shall make
all deposits into the Navajo Nation Water
Resources Development Trust Fund established by
section 10702(a)(1).'';
(B) in clause (viii), by striking ``2019'' and
inserting ``2032'';
(C) in clause (ix), by striking ``2024'' and
inserting ``2029''; and
(D) by adding at the end the following:
``(x) Deferred construction fund.--
``(I) In general.--Not later than
December 31, 2029, the United States
shall make all deposits into the
Deferred Construction Fund in
accordance with section 10602(i)(3).
``(II) Project deadline.--On
deposit of the amounts into the
Deferred Construction Fund under
subclause (I), even if certain Project
facilities have not yet been
constructed, the Secretary shall be
deemed to have met the deadline
described in clause (ix).''; and
(2) in paragraph (2)(B)--
(A) in clause (i), by striking ``Trust Fund'' and
inserting ``Settlement Trust Funds''; and
(B) in clause (ii), by striking ``Trust Fund'' and
inserting ``Settlement Trust Funds''.
(b) Settlement Trust Funds.--
(1) In general.--Section 10702 of the Northwestern New
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat.
1402) is amended to read as follows:
``SEC. 10702. SETTLEMENT TRUST FUNDS.
``(a) Navajo Nation Water Resources Development Trust Fund.--
``(1) Establishment.--There is established in the Treasury
a fund, to be known as the `Navajo Nation Water Resources
Development Trust Fund', consisting of--
``(A) such amounts as are appropriated to the
Navajo Nation Water Resources Development Trust Fund
under paragraph (5); and
``(B) any interest earned on investment of amounts
in the Navajo Nation Water Resources Development Trust
Fund under paragraph (3).
``(2) Use of funds.--The Nation may use amounts in the
Navajo Nation Water Resources Development Trust Fund--
``(A) to investigate, construct, operate, maintain,
or replace water project facilities, including
facilities conveyed to the Nation under this subtitle
and facilities owned by the United States for which the
Nation is responsible for operation, maintenance, and
replacement costs; and
``(B) to investigate, implement, or improve a water
conservation measure (including a metering or
monitoring activity) necessary for the Nation to make
use of a water right of the Nation under the Agreement.
``(3) Investment.--Beginning on October 1, 2019, the
Secretary shall invest amounts in the Navajo Nation Water
Resources Development Trust Fund in accordance with subsection
(e).
``(4) Investment earnings.--Any investment earnings,
including interest, credited to amounts held in the Navajo
Nation Water Resources Development Trust Fund are authorized to
be used in accordance with paragraph (2).
``(5) Authorization of appropriations.--There are
authorized to be appropriated for deposit in the Navajo Nation
Water Resources Development Trust Fund--
``(A) $6,000,000 for each of fiscal years 2010
through 2014; and
``(B) $4,000,000 for each of fiscal years 2015
through 2019.
``(6) Availability.--Any amount authorized to be
appropriated to the Navajo Nation Water Resources Development
Trust Fund under paragraph (5) shall not be available for
expenditure or withdrawal--
``(A) before December 31, 2019; and
``(B) until the date on which the court in the
stream adjudication has entered--
``(i) the Partial Final Decree; and
``(ii) the Supplemental Partial Final
Decree.
``(7) Management.--The Secretary shall manage the Navajo
Nation Water Resources Development Trust Fund in accordance
with subsection (d).
``(8) Conditions for expenditure and withdrawal.--After the
funds become available pursuant to paragraph (6), all
expenditures and withdrawals by the Nation of funds in the
Navajo Nation Water Resources Development Trust Fund must
comply with the requirements of subsection (f).
``(b) Navajo Nation Operations, Maintenance, and Replacement Trust
Fund.--
``(1) Establishment.--The Secretary shall establish a trust
fund to be known as the `Navajo Nation Operations, Maintenance,
and Replacement Trust Fund' for the purposes set forth in
paragraph (2), to be managed, invested, and distributed by the
Secretary, and to remain available until expended, withdrawn,
or reverted to the general fund of the Treasury, consisting of
the amounts deposited in the trust fund under paragraph (3),
together with any interests earned on those amounts under
paragraph (4).
``(2) Use of funds.--The Nation may use amounts in the
Navajo Nation Operations, Maintenance, and Replacement Trust
Fund to pay operation, maintenance, and replacement costs of
the Project allocable to the Nation under section 10604.
``(3) Authorization of appropriations.--There are
authorized to be appropriated for deposit in the Navajo Nation
Operations, Maintenance, and Replacement Trust Fund
$250,000,000.
``(4) Investment.--Upon deposit of funding into the Navajo
Nation Operations, Maintenance, and Replacement Trust Fund
pursuant to paragraph (3), the Secretary shall invest amounts
deposited in accordance with subsection (e).
``(5) Investment earnings.--Any investment earnings,
including interest, credited to amounts held in the Navajo
Nation Operations, Maintenance, and Replacement Trust Fund are
authorized to be used in accordance with paragraph (2).
``(6) Availability.--Any amount authorized to be
appropriated to the Navajo Nation Operations, Maintenance, and
Replacement Trust Fund under paragraph (3) shall not be
available for expenditure or withdrawal until the Nation is
responsible for payment of operation, maintenance, and
replacement costs as set forth in section 10603(g).
``(7) Fluctuation in costs.--
``(A) In general.--The amounts authorized to be
appropriated under paragraph (3) shall be increased or
decreased, as appropriate, by such amounts as may be
justified by reason of ordinary fluctuations in costs
occurring after October 2022 as indicated by the Bureau
of Reclamation Operation and Maintenance Cost Index.
``(B) Repetition.--The adjustment process under
this subparagraph shall be repeated for each subsequent
amount appropriated until the amount authorized, as
adjusted, has been appropriated.
``(C) Period of indexing.--The period of indexing
adjustment under this subparagraph for any increment of
funding shall end on the date on which the funds are
deposited into the Navajo Nation Operations,
Maintenance, and Replacement Trust Fund.
``(8) Management.--The Secretary shall manage the Navajo
Nation Operations, Maintenance, and Replacement Trust Fund in
accordance with subsection (d).
``(9) Conditions for expenditure and withdrawal.--All
expenditures and withdrawals by the Nation of funds in the
Navajo Nation Operations, Maintenance, and Replacement Trust
Fund must comply with the requirements of subsection (f).
``(c) Jicarilla Apache Nation Operations, Maintenance, and
Replacement Trust Fund.--
``(1) Prerequisite to establishment.--Prior to
establishment of the trust fund under paragraph (2), the
Secretary shall conduct an Ability to Pay study to determine
what operation, maintenance, and replacement costs of that
section of the Project serving the Jicarilla Apache Nation are
in excess of the ability of the Jicarilla Apache Nation to pay.
``(2) Establishment.--Upon completion of the Ability to Pay
study as set forth in paragraph (1), the Secretary shall
establish a trust fund to be known as the `Jicarilla Apache
Nation Operations, Maintenance, and Replacement Trust Fund' for
the purposes set forth in paragraph (3), to be managed,
invested, and distributed by the Secretary and to remain
available until expended, withdrawn, or reverted to the general
fund of the Treasury, consisting of the amounts deposited in
the trust fund under paragraph (4), together with any interests
earned on those amounts under paragraph (5).
``(3) Use of funds.--The Jicarilla Apache Nation may use
amounts in the Jicarilla Apache Nation Operations, Maintenance,
and Replacement Trust Fund to pay operation, maintenance, and
replacement costs of the Project allocable to the Jicarilla
Nation under section 10604.
``(4) Authorization of appropriations.--There are
authorized to be appropriated for deposit in the Jicarilla
Apache Nation Operations, Maintenance, and Replacement Trust
Fund the amounts the Secretary has determined are in excess of
the ability of the Jicarilla Apache Nation to pay in the
Ability to Pay study required under paragraph (1) up to a
maximum of $10,000,000.
``(5) Investment.--Upon deposit of funding into the
Jicarilla Apache Nation Operations, Maintenance, and
Replacement Trust Fund pursuant to paragraph (4), the Secretary
shall invest amounts in the fund in accordance with subsection
(e).
``(6) Investment earnings.--Any investment earnings,
including interest, credited to amounts held in the Jicarilla
Apache Nation Operations, Maintenance, and Replacement Trust
Fund are authorized to be used in accordance with paragraph
(3).
``(7) Availability.--Any amount authorized to be
appropriated to the Jicarilla Apache Nation Operations,
Maintenance, and Replacement Trust Fund under paragraph (4)
shall not be available for expenditure or withdrawal until the
Jicarilla Apache Nation is responsible for payment of
operation, maintenance, and replacement costs as set forth in
section 10603(g).
``(8) Fluctuation in costs.--
``(A) In general.--The amounts authorized to be
appropriated under paragraph (4) shall be increased or
decreased, as appropriate, by such amounts as may be
justified by reason of ordinary fluctuations in costs
occurring after October 2022 as indicated by the Bureau
of Reclamation Operation and Maintenance Cost Index.
``(B) Repetition.--The adjustment process under
this subparagraph shall be repeated for each subsequent
amount appropriated until the amount authorized, as
adjusted, has been appropriated.
``(C) Period of indexing.--The period of indexing
adjustment under this subparagraph for any increment of
funding shall end on the date on which the funds are
deposited into the Jicarilla Apache Nation Operations,
Maintenance, and Replacement Trust Fund.
``(9) Management.--The Secretary shall manage the Jicarilla
Apache Nation Operations, Maintenance, and Replacement Trust
Fund in accordance with subsection (d).
``(10) Conditions for expenditure and withdrawal.--All
expenditures and withdrawals by the Jicarilla Apache Nation of
funds in the Jicarilla Apache Nation Operations, Maintenance,
and Replacement Trust Fund must comply with the requirements of
subsection (f).
``(d) Management.--The Secretary shall manage the Settlement Trust
Funds, invest amounts in the Settlement Trust Funds pursuant to
subsection (e), and make amounts available from the Settlement Trust
Funds for distribution to the Nation and the Jicarilla Apache Nation in
accordance with the American Indian Trust Fund Management Reform Act of
1994 (25 U.S.C. 4001 et seq.).
``(e) Investment of the Trust Funds.--The Secretary shall invest
amounts in the Settlement Trust Funds in accordance with--
``(1) the Act of April 1, 1880 (25 U.S.C. 161);
``(2) the first section of the Act of June 24, 1938 (25
U.S.C. 162a); and
``(3) the American Indian Trust Fund Management Reform Act
of 1994 (25 U.S.C. 4001 et seq.).
``(f) Conditions for Expenditures and Withdrawals.--
``(1) Tribal management plan.--
``(A) In general.--On approval by the Secretary of
a Tribal management plan in accordance with the
American Indian Trust Fund Management Reform Act of
1994 (25 U.S.C. 4001 et seq.), the Nation and the
Jicarilla Apache Nation may withdraw all or a portion
of the amounts in the Settlement Trust Funds.
``(B) Requirements.--In addition to any
requirements under the American Indian Trust Fund
Management Reform Act of 1994 (25 U.S.C. 4001 et seq.),
a Tribal management plan shall require that the Nation
and Jicarilla Apache Nation only use amounts in the
Settlement Trust Funds for the purposes described in
subsection (a)(2), (b)(2), or (c)(3), as applicable.
``(2) Enforcement.--The Secretary may take judicial or
administrative action to enforce the provisions of any Tribal
management plan to ensure that any amounts withdrawn from the
Settlement Trust Funds are used in accordance with this
subtitle.
``(3) No liability.--The Secretary or the Secretary of the
Treasury shall not be liable for the expenditure or investment
of any amounts withdrawn from the Settlement Trust Funds by the
Nation or the Jicarilla Apache Nation.
``(4) Expenditure plan.--
``(A) In general.--The Nation and Jicarilla Apache
Nation shall submit to the Secretary for approval an
expenditure plan for any portion of the amounts in the
Settlement Trust Funds made available under this
section that the Nation or the Jicarilla Apache Nation
does not withdraw under this subsection.
``(B) Description.--An expenditure plan submitted
under subparagraph (A) shall describe the manner in
which, and the purposes for which, funds of the Nation
or the Jicarilla Apache Nation remaining in the
Settlement Trust Funds will be used.
``(C) Approval.--On receipt of an expenditure plan
under subparagraph (A), the Secretary shall approve the
plan if the Secretary determines that the plan is
reasonable and consistent with this subtitle.
``(5) Annual report.--The Nation and Jicarilla Apache
Nation shall submit to the Secretary an annual report that
describes any expenditures from the Settlement Trust Funds
during the year covered by the report.
``(6) Limitation.--No portion of the amounts in the
Settlement Trust Funds shall be distributed to any Nation or
Jicarilla Apache Nation member on a per capita basis.''.
(2) Clerical amendment.--The table of contents in section
1(b) of the Omnibus Public Land Management Act of 2009 (Public
Law 111-11; 123 Stat. 991) is amended by striking the item
relating to section 10702 and inserting the following:
``Sec. 10702. Settlement trust funds.''.
(c) Waivers and Releases.--Section 10703 of the Northwestern New
Mexico Rural Water Projects Act (Public Law 111-11; 123 Stat. 1403) is
amended--
(1) in subsection (d)(1)(A), by striking ``2025'' and
inserting ``2030''; and
(2) in subsection (e)(2), in the matter preceding
subparagraph (A), by striking ``2025'' and inserting ``2030''.
SEC. 5. NON-PROJECT WATER FOR USE IN THE STATE OF UTAH.
Section 10602(h) of the Northwestern New Mexico Rural Water
Projects Act (Public Law 111-11; 123 Stat. 1382) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``paragraph (2)'' and inserting ``paragraph
(3)'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Conveyance of non-project water to the state of
utah.--
``(A) Definitions.--In this paragraph:
``(i) Navajo/Utah settlement agreement.--
The term `Navajo/Utah Settlement Agreement'
means the agreement entitled `Navajo Nation/
State of Utah Water Rights Settlement
Agreement', dated May 27, 2022, and authorized
by section 1102 of title XI of division FF of
Public Law 116-260 (134 Stat. 3224).
``(ii) Navajo-utah water rights.--The term
`Navajo-Utah water rights' has the meaning
given the term `Navajo water rights' in section
1102(b) of title XI of division FF of Public
Law 116-260 (134 Stat. 3225).
``(B) In general.--Subject to paragraph (1), the
Nation may provide non-Project water to communities of
the Nation in the State of Utah, subject to the
conditions that--
``(i) not more than 2,000 acre-feet per
year of non-Project water may be treated,
stored, or conveyed through Project and non-
Project infrastructure for the benefit of those
communities;
``(ii) any non-Project water treated or
conveyed through Project and non-Project
infrastructure and delivered to the New Mexico
state line for the benefit of those communities
shall--
``(I) be considered part of the
Navajo-Utah water rights as quantified
in section 1102(d)(1)(A) of title XI of
division FF of Public Law 116-260 (134
Stat. 3227); and
``(II) be accounted for as a
depletion by the Nation to be counted
against the apportionment of the State
of Utah under the Compact for purposes
of the depletion accounting under the
Navajo/Utah Settlement Agreement;
``(iii) Project funds shall not be used to
design, plan, construct, operate, maintain, or
repair any additional infrastructure in the
State of New Mexico or any infrastructure in
the State of Arizona or Utah to join the
Project infrastructure to the Sweetwater
pipeline (non-Project infrastructure);
``(iv) the share of any Project
Participants' Project operation, maintenance,
and replacement costs shall not be increased in
connection with the use of non-Project
infrastructure;
``(v) the United States shall have no
responsibility or obligation to provide non-
Project water to those communities under this
paragraph and no Federal funding shall be
provided for the costs to construct, operate,
maintain, and replace any non-Project
infrastructure necessary for storage and
conveyance of non-Project water from the State
of New Mexico to serve those communities except
for funds authorized under--
``(I) section 1102 of title XI of
division FF of Public Law 116-260 (134
Stat. 3224);
``(II) section 7 of the Act of
August 5, 1954 (42 U.S.C. 2004a); and
``(III) the Indian Health Care
Improvement Act (25 U.S.C. 1601 et
seq.);
``(vi) efforts associated with providing
non-Project water to those communities shall
not delay the Project, or any component of the
Project, in a manner that would be prejudicial
to any Project Participant; and
``(vii) in addition to the requirements of
this paragraph, delivery of non-Project water
under this paragraph is subject to--
``(I) the terms of the Navajo/Utah
Settlement Agreement;
``(II) the State of Utah issuing a
decreed water right pursuant to the
terms of the Navajo/Utah Settlement
Agreement;
``(III) the State of Utah not
incurring additional financial
obligations beyond those identified in
the Navajo/Utah Settlement Agreement;
and
``(IV) the execution of an
implementation agreement between the
Nation and the State of Utah relating
to accounting and measurement of non-
Project water under this paragraph to
be consistent with the terms of the
Navajo/Utah Settlement Agreement.
``(C) Clarification.--The State of New Mexico shall
have no responsibility or obligation to provide--
``(i) non-Project water to communities of
the Nation in the State of Utah under this
paragraph; or
``(ii) any funding under this paragraph.''.
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