Overview

Title

To amend the Northwestern New Mexico Rural Water Projects Act to make improvements to that Act, and for other purposes.

ELI5 AI

The bill wants to make sure more water gets to some Native American communities by changing how an old water project works, giving more money to help finish building it, and making rules about taking care of it.

Summary AI

Senate Bill 1898 proposes changes to the Northwestern New Mexico Rural Water Projects Act to enhance its implementation. The bill seeks to facilitate the delivery of water to certain Navajo Nation communities and expand service areas in Arizona and New Mexico. It establishes funds for deferred construction and maintenance, allows for additional land to be held in trust, and clarifies conditions for the use of non-Project water. Additionally, it extends deadlines for certain projects and revises the authorized appropriations for the water projects.

Published

2024-12-04
Congress: 118
Session: 2
Chamber: SENATE
Status: Reported to Senate
Date: 2024-12-04
Package ID: BILLS-118s1898rs

Keywords AI

navajo-gallup water supply project northwestern new mexico rural water projects act navajo nation trust funds appropriations deferred construction fund water rights taxation settlement agreement non-project water

Sources

Bill Statistics

Size

Sections:
13
Words:
15,664
Pages:
78
Sentences:
207

Language

Nouns: 4,729
Verbs: 1,048
Adjectives: 387
Adverbs: 47
Numbers: 859
Entities: 869

Complexity

Average Token Length:
4.00
Average Sentence Length:
75.67
Token Entropy:
5.27
Readability (ARI):
38.39

AnalysisAI

General Summary

The Navajo-Gallup Water Supply Project Amendments Act of 2023 is a legislative attempt to improve the Northwestern New Mexico Rural Water Projects Act. The bill seeks to address water supply, infrastructural advancements, and financial management for water projects intended to benefit Native American Nations, primarily the Navajo and Jicarilla Apache Nations, covering areas in New Mexico, Arizona, and Utah. Among its key provisions, the bill proposes changes to project service areas, funding appropriations, renewable energy development, and the management of trust funds.

Summary of Significant Issues

The bill raises several considerable issues concerning financial oversight, tax implications, and administrative complexity. One prominent concern is the substantial increase in the authorized budget for the water supply project, which nearly triples from earlier projections. This raises questions about budget efficiency and the justification for such a pronounced financial escalation. Furthermore, the bill allows for cost adjustments post-October 2022, opening the door to unchecked financial fluctuations.

Additionally, the introduction of multiple trust funds and the Deferred Construction Fund comes without detailed criteria for their management or clear accountability measures, risking potential inefficiency or misallocation of funds. Another significant issue is related to the taxation rules surrounding project facilities. The division of taxation rights between Nation and State lands presents potential jurisdictional and legal challenges that may require clearer definition.

Impact on the Public

Broadly, the bill aims to secure water resources for communities in the Southwestern United States, which could greatly improve water availability, infrastructure, and economic development for these areas. By involving renewable energy initiatives, the bill also aligns with broader environmental goals, potentially reducing carbon footprints associated with water projects.

However, the increased budget might concern taxpayers about potential undue financial burdens without a clear explanation of the cost increases. Moreover, the tax allocation changes could shift financial responsibilities onto different governing bodies, potentially affecting local and state taxation structures.

Impact on Specific Stakeholders

The bill could significantly benefit the Navajo and Jicarilla Apache Nations by securing water supplies, improving infrastructure, and offering more local control over water resources. These changes can lead to better economic and living conditions for tribal communities by fostering development projects tailored to their needs.

On the flip side, the stakeholders may face challenges with the complex administrative requirements imposed by the bill, including fund management and compliance with environmental and cultural regulations. State governments might express concerns over the taxation clauses, which alter traditional tax collection roles between state and nation jurisdictions.

Ultimately, the bill holds promise for advancing water resource management but requires careful scrutiny and possibly more precise definitions in some areas to ensure that its goals are met efficiently and equitably.

Financial Assessment

The proposed Senate Bill 1898, which seeks to amend the Northwestern New Mexico Rural Water Projects Act, contains several important financial elements that require careful examination.

Major Spending and Budget Increase

One of the most significant financial elements within the bill is the increase in the authorized appropriations for the Navajo-Gallup water supply project. The original authorization of $870 million for the period from fiscal years 2009 through 2024 has been notably increased to $2.175 billion for the extended period through 2029. This substantial rise suggests a major escalation in budget requirements, which could raise concerns about potential waste or excess spending if not properly justified. The necessity of such an increase is not clearly articulated in the bill, leading to issues related to financial oversight and justification for the budget expansion.

Deferred Construction and Lack of Specific Criteria

The introduction of the Deferred Construction Fund also plays a critical role in the bill. This fund aims to manage deferred construction activities, but the lack of specific criteria for its management or clear guidelines on fund usage brings about potential ambiguities. The absence of defined management processes creates a risk of resource misallocation, making it difficult to ensure that the funds will be used efficiently or as intended. This factor is connected to the broader issue of potentially excessive discretion granted to the Secretary for fund adjustments and the modest clarity required to mitigate these concerns.

Allowance for Fluctuation in Costs

The bill's provision allowing for the adjustment of appropriations to account for cost fluctuations after October 2022 introduces the opportunity for significant cost increases. While it aims to address unforeseen market volatility, the lack of a specified limit or range could lead to unchecked financial growth without sufficient oversight. This issue amplifies concerns related to the potential misuse of funds or excessive discretion without clear oversight mechanisms. Proper financial controls are crucial to maintain accountability and prevent the abuse of taxpayer dollars.

Establishment and Management of Trust Funds

Another noteworthy financial element is the establishment of multiple trust funds, including the Navajo Nation Water Resources Development Trust Fund, the Navajo Nation Operations, Maintenance, and Replacement Trust Fund, and the Jicarilla Apache Nation Operations, Maintenance, and Replacement Trust Fund. These funds collectively involve significant authorized appropriations, such as $250 million for the Navajo Nation Operations, Maintenance, and Replacement Trust Fund and up to $10 million for the Jicarilla Apache Nation Trust Fund. However, the oversight and conditions for expenditure and withdrawal need further clarity to ensure efficient and transparent fund management. The establishment of these funds without clear accountability measures could complicate administrative processes and lead to inefficiencies.

Hydroelectric and Renewable Energy Funding

The appropriations made for renewable energy and hydroelectric power development within project facilities are capped at $6.25 million and $1.25 million, respectively. While these allocations support sustainable energy development within the project, it is critical that they are closely monitored to ensure they contribute effectively to the intended purposes without exceeding the set budgets.

In summary, while Senate Bill 1898 outlines significant financial commitments towards enhancing the Northwestern New Mexico Rural Water Projects Act, the concerns over budget increases, fund management criteria, cost fluctuation allowances, and the establishment of trust funds point to the need for careful financial regulation and oversight to ensure accountability and the responsible use of federal funds.

Issues

  • The significant increase in the authorized appropriations for the Navajo-Gallup water supply project from $870,000,000 to $2,175,000,000 for the period of fiscal years 2009 through 2029, as stated in Section 3, suggests a major rise in budget requirements which could be interpreted as potentially wasteful or excessive without proper justification.

  • The allowance for fluctuations in costs after October 2022 in Section 4 does not specify a clear limit or range, which could lead to significant cost increases without sufficient controls, raising issues of financial oversight.

  • The Deferred Construction Fund, introduced in Sections 2 and 3, lacks specific criteria for fund management and usage, leading to potential ambiguity and the risk of misallocation of resources.

  • Section 3's language allowing the Secretary to adjust appropriations for unforeseen market volatility without specific oversight mechanisms could lead to potential misuse of funds or excessive discretion.

  • Section 10610 dealing with the taxation of construction, operation, and maintenance of project facilities presents a potential legal issue regarding tax authority, as the terms 'Nation land' and 'Other land' need more specific definitions to avoid ambiguity.

  • The transition from 'Draft' to 'Final Environmental' documents in Section 2 and elsewhere lacks context and detailed rationale, making it unclear whether these are based on updated studies or are just administrative changes.

  • The taxation authority differences between Nation land and other lands outlined in Section 10610 may present ethical and legal challenges, potentially causing disputes over jurisdiction.

  • The establishment of multiple trust funds as outlined in Section 10702 could complicate administrative oversight and lead to inefficiencies, given the lack of clear accountability measures for fund management.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of this act states that the act can be officially called the "Navajo-Gallup Water Supply Project Amendments Act of 2023."

2. Definitions Read Opens in new tab

Summary AI

The section updates the definitions in a law related to water projects in Northwestern New Mexico by removing one definition, renumbering several others, and adding new definitions for terms like "Deferred Construction Fund," "Project Service Area," and "Settlement Trust Funds," as well as updating terms to reflect final documents and other details.

Money References

  • 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.”. ---

3. Navajo-Gallup water supply project Read Opens in new tab

Summary AI

Congress is amending the Northwestern New Mexico Rural Water Projects Act to authorize the Navajo-Gallup Water Supply Project, allowing expansion of the service area, securing land into trust for the Navajo Nation, and funding deferred construction of facilities. The amendments also address renewable energy, hydroelectric power, water delivery, taxation, and adjust financial appropriations and obligations related to the project's construction and operation.

Money References

  • “(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 2023; 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 2023.”; (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.
  • “(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.
  • “(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 (4), 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.—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.

10610. Taxation of construction, operation, and maintenance of Project facilities Read Opens in new tab

Summary AI

Any construction, operation, or maintenance of Project facilities on land held in trust by the United States for the Nation can be taxed by the Nation and is not subject to taxes from any State or local government. However, if these activities occur on other types of land, they can be taxed by the State or its subdivisions, according to state law, but cannot be taxed by the Nation.

4. Navajo Nation water rights Read Opens in new tab

Summary AI

The section amends parts of the Northwestern New Mexico Rural Water Projects Act to update deadlines and financial management plans for trust funds related to the Navajo Nation and Jicarilla Apache Nation. It establishes and manages trust funds for water resources, operations, and maintenance, specifying how these funds can be used, invested, and managed, with provisions for cost fluctuations, ensuring funds are properly distributed and accounted for, and extending the timeline for certain actions to 2029 and 2030.

Money References

  • 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.
  • “(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) 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.

10702. Settlement trust funds Read Opens in new tab

Summary AI

The text establishes several trust funds aimed at supporting the Navajo Nation and Jicarilla Apache Nation in developing, operating, maintaining, and replacing water resource projects. These funds, managed by the Secretary of the Treasury, consist of specific appropriated amounts and any interest earned, with set conditions for how and when the funds can be used or withdrawn, all subject to strict management and approval processes to ensure the funds are used appropriately.

Money References

  • — (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.
  • Nation may use amounts in the Navajo Nation Operations, Maintenance, and Replacement Trust Fund to pay operations, 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 operations, 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.

1. Short title Read Opens in new tab

Summary AI

The act is named the “Navajo-Gallup Water Supply Project Amendments Act of 2023,” allowing it to be referred to by this short title.

2. Definitions Read Opens in new tab

Summary AI

The section updates definitions within the Northwestern New Mexico Rural Water Projects Act by removing one definition, renumbering several others, and adding new terms such as "Deferred Construction Fund," "Project Service Area," "Settlement Trust Funds," and "Working Cost Estimate." It also modifies the term "Final Environmental" in certain paragraphs to reflect updates in dates and document titles.

Money References

  • 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.”. ---

3. Navajo-Gallup water supply project Read Opens in new tab

Summary AI

The amendments made to the Northwestern New Mexico Rural Water Projects Act authorize the expansion of the Navajo-Gallup water supply project to serve more communities, allow for renewable and hydroelectric energy development, and establish a deferred construction fund. It also specifies land trust arrangements, adjusts funding and timelines, and outlines taxation rules for project activities based on the land ownership.

Money References

  • “(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 2023; 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 2023.”; (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.
  • (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.
  • “(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.—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.

10610. Taxation of construction, operation, and maintenance of Project facilities Read Opens in new tab

Summary AI

Any construction, operation, or maintenance of Project facilities on land held in trust by the United States for the Nation can be taxed by the Nation and is not subject to taxes from any State or local government. However, if these activities occur on other types of land, they can be taxed by the State or its subdivisions, according to state law, but cannot be taxed by the Nation.

4. Navajo Nation water rights Read Opens in new tab

Summary AI

The section outlines amendments to the Northwestern New Mexico Rural Water Projects Act, including changes to funding deadlines and project completion dates for the Navajo Nation's water resource initiatives. It details the establishment and management of several trust funds for the Navajo Nation and Jicarilla Apache Nation to support water development, operations, and maintenance, as well as the requirements and conditions for the use of these funds.

Money References

  • 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.
  • “(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) 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.

10702. Settlement trust funds Read Opens in new tab

Summary AI

The section establishes three trust funds to support water-related projects for Native American Nations. The Navajo Nation Water Resources Development Trust Fund and the Navajo Nation Operations, Maintenance, and Replacement Trust Fund are intended to finance water projects and cover operational costs for the Navajo Nation, while the Jicarilla Apache Nation Operations, Maintenance, and Replacement Trust Fund will address the Jicarilla Apache Nation's costs exceeding their ability to pay. These funds are to be managed and invested by the Secretary with specific guidelines on usage and conditions for expenditure.

Money References

  • — (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.
  • 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. Non-Project water for use in the State of Utah Read Opens in new tab

Summary AI

In this section of the bill, Congress outlines the conditions under which the Navajo Nation may supply non-Project water to its communities in Utah. It specifies that up to 2,000 acre-feet of non-Project water per year may be managed through existing infrastructure, and funding or responsibility for new infrastructure or water supply is limited, with several stipulations to ensure compliance with existing agreements and avoid additional costs or delays in the Project.