119-hr1482

[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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