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House Report 108-793 - ARIZONA WATER SETTLEMENTS ACT

39-006

108TH CONGRESS

REPORT

HOUSE OF REPRESENTATIVES

2d Session

108-793

--ARIZONA WATER SETTLEMENTS ACT

NOVEMBER 20, 2004- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. POMBO, from the Committee on Resources, submitted the following

R E P O R T

[To accompany H.R. 885]

[Including cost estimate of the Congressional Budget Office]

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Arbitration.
Sec. 4. Antideficiency.
TITLE I--CENTRAL ARIZONA PROJECT SETTLEMENT
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. General permissible uses of the Central Arizona Project.
Sec. 104. Allocation of Central Arizona Project water.
Sec. 105. Firming of Central Arizona Project Indian water.
Sec. 106. Acquisition of agricultural priority water.
Sec. 107. Lower Colorado River Basin Development Fund.
Sec. 108. Effect.
Sec. 109. Repeal.
Sec. 110. Authorization of appropriations.
Sec. 111. Repeal on failure of enforceability date under title II.
TITLE II--GILA RIVER INDIAN COMMUNITY WATER RIGHTS SETTLEMENT
Sec. 201. Short title.
Sec. 202. Purposes.
Sec. 203. Approval of the Gila River Indian Community Water Rights Settlement Agreement.
Sec. 204. Water rights.
Sec. 205. Community water delivery contract amendments.
Sec. 206. Satisfaction of claims.
Sec. 207. Waiver and release of claims.
Sec. 208. Gila River Indian Community Water OM&R Trust Fund.
Sec. 209. Subsidence remediation program.
Sec. 210. After-acquired trust land.
Sec. 211. Reduction of water rights.
Sec. 212. New Mexico Unit of the Central Arizona Project.
Sec. 213. Miscellaneous provisions.
Sec. 214. Authorization of appropriations.
Sec. 215. Repeal on failure of enforceability date.
TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT
Sec. 301. Southern Arizona water rights settlement.
Sec. 302. Southern Arizona water rights settlement effective date.
TITLE IV--SAN CARLOS APACHE TRIBE WATER RIGHTS SETTLEMENT
Sec. 401. Effect of titles I, II, and III.
Sec. 402. Annual report.
Sec. 403. Authorization of appropriations.

SEC. 2. DEFINITIONS.

SEC. 3. ARBITRATION.

SEC. 4. ANTIDEFICIENCY.

TITLE I--CENTRAL ARIZONA PROJECT SETTLEMENT

SEC. 101. SHORT TITLE.

SEC. 102. FINDINGS.

SEC. 103. GENERAL PERMISSIBLE USES OF THE CENTRAL ARIZONA PROJECT.

SEC. 104. ALLOCATION OF CENTRAL ARIZONA PROJECT WATER.

(aa) request a revised recommendation from the Director; and

(bb) proceed with any reviews required under subclause (II); and

SEC. 105. FIRMING OF CENTRAL ARIZONA PROJECT INDIAN WATER.

SEC. 106. ACQUISITION OF AGRICULTURAL PRIORITY WATER.

SEC. 107. LOWER COLORADO RIVER BASIN DEVELOPMENT FUND.

SEC. 108. EFFECT.

SEC. 109. REPEAL.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

SEC. 111. REPEAL ON FAILURE OF ENFORCEABILITY DATE UNDER TITLE II.

TITLE II--GILA RIVER INDIAN COMMUNITY WATER RIGHTS SETTLEMENT

SEC. 201. SHORT TITLE.

SEC. 202. PURPOSES.

SEC. 203. APPROVAL OF THE GILA RIVER INDIAN COMMUNITY WATER RIGHTS SETTLEMENT AGREEMENT.

(aa) may use locally accepted engineering standards and the labor and contracting authorities that are available to the District under State law; and

(bb) shall be subject to the value engineering program of the Bureau of Reclamation established pursuant to OMB Circular A-131; and

SEC. 204. WATER RIGHTS.

SEC. 205. COMMUNITY WATER DELIVERY CONTRACT AMENDMENTS.

SEC. 206. SATISFACTION OF CLAIMS.

SEC. 207. WAIVER AND RELEASE OF CLAIMS.

SEC. 208. GILA RIVER INDIAN COMMUNITY WATER OM&R TRUST FUND.

SEC. 209. SUBSIDENCE REMEDIATION PROGRAM.

SEC. 210. AFTER-ACQUIRED TRUST LAND.

SEC. 211. REDUCTION OF WATER RIGHTS.

SEC. 212. NEW MEXICO UNIT OF THE CENTRAL ARIZONA PROJECT.

SEC. 213. MISCELLANEOUS PROVISIONS.

SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

SEC. 215. REPEAL ON FAILURE OF ENFORCEABILITY DATE.

TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

SEC. 301. SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT.

`TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

`SEC. 301. SHORT TITLE.

`SEC. 302. PURPOSES.

`SEC. 303. DEFINITIONS.

`SEC. 304. WATER DELIVERY AND CONSTRUCTION OBLIGATIONS.

`SEC. 305. DELIVERIES UNDER EXISTING CONTRACT; ALTERNATIVE WATER SUPPLIES.

`SEC. 306. ADDITIONAL WATER DELIVERY.

`SEC. 307. CONDITIONS ON CONSTRUCTION, WATER DELIVERY, REVENUE SHARING.

`(aa) the design and construction of the delivery and distribution system and the rehabilitation of the irrigation system for the cooperative farm;

`(bb) the extension of the irrigation system for the cooperative farm;

`(cc) the subjugation of land to be served by the extension of the irrigation system;

`(dd) the design and construction of storage facilities solely for water deliverable for use within the San Xavier Reservation; and

`(ee) the completion by the Secretary of a water resources study of the San Xavier Reservation and subsequent preparation of a water management plan under section 308(d);

`(aa) to fulfill the obligations prescribed in the Asarco agreement; and

`(bb) for groundwater storage, maintenance of instream flows, and maintenance of riparian vegetation and habitat;

`SEC. 308. WATER CODE; WATER MANAGEMENT PLAN; STORAGE PROJECTS; STORAGE ACCOUNTS; GROUNDWATER.

`(aa) the water resources identified in section 307(a)(1)(G)(i) that are subject to a first right of beneficial use; or

`(bb) subject to the first right of use of the Nation, available water resources identified in section 307(a)(1)(G)(i)(II);

`SEC. 309. USES OF WATER.

`SEC. 310. COOPERATIVE FUND.

`SEC. 311. CONTRACTING AUTHORITY; WATER QUALITY; STUDIES; ARID LAND ASSISTANCE.

`SEC. 312. WAIVER AND RELEASE OF CLAIMS.

`SEC. 313. AFTER-ACQUIRED TRUST LAND.

`SEC. 314. NONREIMBURSABLE COSTS.

`SEC. 315. TRUST FUND.

`SEC. 316. MISCELLANEOUS PROVISIONS.

`SEC. 317. AUTHORIZED COSTS.

SEC. 302. SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT EFFECTIVE DATE.

TITLE IV--SAN CARLOS APACHE TRIBE WATER RIGHTS SETTLEMENT

SEC. 401. EFFECT OF TITLES I, II, AND III.

SEC. 402. ANNUAL REPORT.

SEC. 403. AUTHORIZATION OF APPROPRIATIONS.

PURPOSE OF THE BILL

The purpose of H.R. 885 is to provide for adjustments to the Central Arizona Project in Arizona, to authorize the Gila River Indian Community water rights settlement, to reauthorize and amend the Southern Arizona Water Rights Settlement Act of 1982, and for other purposes.

BACKGROUND AND NEED FOR LEGISLATION

H.R. 885 represents more than six years of negotiations between representatives of the federal government, the State of Arizona, the State of New Mexico, the Gila River Indian Community, the Tohono O'odham Nation and approximately 35 different organizations including cities, counties, irrigation districts, utilities and mining companies. The bill authorizes and funds the settlement of a number of water issues in central and southern Arizona. These issues involve the Central Arizona Project (CAP), a federally-developed water project authorized in 1968 to deliver approximately 1.5 million acre-feet of Colorado River water annually to central Arizona. The resolution of these CAP-related issues also directly facilitates two Indian water rights settlements which are authorized by this bill.

Title I of the bill confirms an agreement (known as the Stipulation Agreement) between the Central Arizona Water Conservation District and the federal government (represented by the Departments of the Interior and Justice) over the State of Arizona's repayment obligation for the construction of the CAP. The Title finalizes the reallocation of certain municipal and industrial and non-Indian agricultural CAP water for the benefit of cities, towns, farmers, and Indian tribes, and creates a firm funding source to implement most of the legislation. Specifically, the Lower Basin Development Fund would be used under the legislation to provide approximately $2.2 billion in benefits to the parties to the settlements in the bill and future settlements with primary benefits going to pay for fixed charges for delivery of CAP water to Indian tribes and related Indian expenses over a 40-year period.

Title II of the bill authorizes, confirms and ratifies a general settlement agreement between the Gila River Indian Community and other parties. The Title refers to an agreement with Phelps Dodge, Asarco, irrigation interests, CAP leases and effluent exchange agreements with specific Arizona cities. As amended, the bill also resolves a number of long-standing issues associated with a federal court decree concerning water use in the upper Gila River in Arizona and the Virden Valley in New Mexico. The settlement also resolves a number of issues concerning the rights of New Mexico water users to divert additional water in the upper Gila River system as authorized in the 1968 Colorado River Basin Project Act.

Title III of the bill amends and restates the Southern Arizona Water Rights Settlement Act of 1982. The original Act settled a suit filed in 1975 by the Papago Tribe (now the Tohono O'odham Nation), the federal government and two individual Indian allottees against the City of Tucson and other water users in the Upper Santa Cruz Basin, claiming damages and seeking to enjoin pumping of groundwater. A negotiated settlement was reached in 1982. That year, Congress passed the Southern Arizona Water Rights Settlement Act (SAWRSA) embodying the settlement. However, a dispute between the Nation and the San Xavier allottees concerning ownership of the settlement water and entitlement to financial benefits prevented final dismissal of the lawsuit and implementation of the settlement. The Nation, the San Xavier District, the Schuk Toak District, the allottees, the City of Tucson, the State of Arizona, Asarco and Farmer's Investment company have been able to negotiate the package of amendments to SAWRSA which constitute Title III.

As amended, Title IV of the bill provides assurances that the San Carlos Apache Tribe's future water claims will not be affected by the terms of settlements included in the first three titles. The title also requires the Secretary of the Interior to assess the progress toward completing a settlement with the San Carlos Apache Tribe.

COMMITTEE ACTION

Representative J.D. Hayworth (R-AZ) introduced H.R. 885 on February 25, 2003. The bill was referred to the Committee on Resources and within the Committee to the Subcommittee on Water and Power. On October 2, 2003, the Subcommittee held a hearing on the bill. On September 29, 2004, the Committee on Resources met to consider the bill. The Subcommittee was discharged from further consideration of the bill by unanimous consent. Congressman Hayworth offered an amendment in the nature of a substitute which made technical changes to the bill. The amendment was adopted by voice vote and the bill, as amended, was ordered favorably reported to the House of Representatives by voice vote.

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, the Committee on Resources' oversight findings and recommendations are reflected in the body of this report.

CONSTITUTIONAL AUTHORITY STATEMENT

Article I, section 8 of the Constitution of the United States grants Congress the authority to enact this bill.

COMPLIANCE WITH HOUSE RULE XIII

1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in carrying out this bill. However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974.

2. Congressional Budget Act. As required by clause 3(c)(2) of rule XIII of the Rules of the House of Representatives and section 308(a) of the Congressional Budget Act of 1974, this bill does not contain any new budget authority, credit authority, or an increase or decrease in revenues or tax expenditures. According to the Congressional Budget Office, enactment of this bill would increase direct spending by $445 million over the 2005-2014 time period, with additional unspecified direct spending continuing after that date.

3. General Performance Goals and Objectives. As required by clause 3(c)(4) of rule XIII, the general performance goal or objective of this bill is to provide for adjustments to the Central Arizona Project in Arizona, to authorize the Gila River Indian Community water rights settlement, to reauthorize and amend the Southern Arizona Water Rights Settlement Act of 1982.

4. Congressional Budget Office Cost Estimate. Under clause 3(c)(3) of rule XIII of the Rules of the House of Representatives and section 403 of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for this bill from the Director of the Congressional Budget Office:

U.S. Congress,

Congressional Budget Office,

Washington, DC, October 5, 2004.

Hon. RICHARD W. POMBO,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 885, the Arizona Water Settlements Act.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contacts are Julie Middleton and Mike Water.

Sincerely,

Elizabeth Robinson

(For Douglas Holtz-Eakin, Director).

Enclosure.

H.R. 885--Arizona Water Settlements Act

Summary: H.R. 885 would approve and ratify the Gila River Indian Community Water Rights Settlements Act, amend the Southern Arizona Water Rights Settlement Act of 1982, and affirm the right of the San Carlos Apache Tribe to make future claims for water rights. CBO estimates that enacting H.R. 885 would increase direct spending by $445 million over the 2005-2014 period. Additional direct spending would continue long after 2014 under the bill. In addition, assuming appropriation of the necessary amounts, CBO estimates that implementing H.R. 885 would add $6 million to discretionary spending over the 2005-2009 period.

Title I of H.R. 885 would settle a dispute between the federal government and Arizona concerning water distribution among state, tribal, and nongovernmental interests from the Central Arizona Project (CAP), a 336-mile canal that moves water from Lake Havasu City, Arizona, to Tucson. This bill would designate 47 percent of CAP water for Indian uses and 53 percent for non-Indian municipal, industrial, or agricultural uses. In addition, the bill would amen the Colorado River Basin Project Act to make funds in the Lower Colorado River Basin Development (LCRBD) Fund available without further appropriation to fund construction, operation, and maintenance of water infrastructure projects associated with implementing Indian water rights settlements, and other costs starting in 2010.

Title II would authorize, confirm, and ratify the Gila River Indian Community Water Rights Settlement agreement between the Gila River Indian Community, the state of Arizona, the Secretary of the Interior, and other local water users. The bill would provide funds for the rehabilitation of the San Carlos Irrigation Project and construction of the New Mexico Unit of the CAP in addition to other projects. In addition, the bill would provide $53 million to establish the Gila River Indian Community Water Operations, Maintenance, and Replacement (OM&R) Trust Fund.

Title III of H.R. 885 would rewrite the Southern Arizona Water Rights Settlement Act of 1982 as the Southern Arizona Water Rights Settlement Amendments Act of 2003. The title would establish water delivery requirements and construction obligations with respect to the San Xavier Indian Reservation and the Schuk Toak District, delineate permissible uses of the water, and authorize the development of various water management plans, groundwater monitoring programs, and resource studies. Title III also would provide for the waiver and release of water rights claims of the Tohono O'odham Nation (formerly the Papago Tribe). Finally, it would reauthorize two trust funds--a cooperative fund for OM&R costs associated with water delivery to the Reservation and District and a trust fund established for the Tohono O'odham Nation, granting the Nation full access to both the interest earned and the principle amount in the fund.

Title IV would affirm the right of the San Carlos Apache Tribe to make future claims for water rights. In addition, the title would authorize the appropriation of $600,000 in 2006 to analyze costs and issues concerning outstanding water settlement agreements for the San Carlos Apache Tribe, the White Mountain Apache Tribe, and other Indian Tribes in Arizona.

H.R. 885 contains no intergovernamental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would impose no costs on state, local, or tribal governments. Any costs or duties imposed by this bill upon state, local, or tribal governments would be those assumed by them voluntarily as parties to settlement agreements.

Estimated cost to the Federal Government: H.R. 885's estimated budgetary impact over the next five years is shown in Table 1. (The estimated budgetary effects after 2009 are discussed below.) The costs of this legislation fall within budget functions 300 (natural resources and environment) and 450 (community and regional development).

Basis of estimate: For this estimate, CBO assumes that H.R. 885 will be enacted near the beginning of fiscal year 2005 and that the necessary amounts will be appropriated for each fiscal year.


TABLE 1- BUDGETARY IMPACT OF H.R. 885 OVER THE 2005-2009 PERIOD
----------------------------------------------------------------------------------------------------
                                  By fiscal year, in millions of dollars--                          
                                                                      2004 2005 2006 2007 2008 2009 
----------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING                                                                          
Estimated Budget Authority                                               0    2    2    2    2    2 
Estimated Outlays                                                        0    2    2    2    2    2 
SPENDING SUBJECT TO APPROPRIATION                                                                   
Spending Under Current Law:                                                                         
Budget Authority 1                                                      34    0    0    0    0    0 
Estimated Outlays                                                       22    7    5    0    0    0 
Proposed Changes:                                                                                   
Estimated Authorization Level                                            0    1    2    1    1    1 
Estimated Outlays                                                        0    1    2    1    1    1 
Spending Under H.R. 885:                                                                            
Estimated Authorization Level 1                                         34    1    1    1    1    1 
Estimateed Outlays                                                      22    8    6    1    1    1 
----------------------------------------------------------------------------------------------------

Direct Spending

CBO estimates that enacting H.R. 885 would increase direct spending by $445 million over the 2005-2014 period. CBO's estimate of the bill's impact on direct spending over the next 10 years is shown in Table 2.

Debt Relief. Section 106 would forgive debt owed to the federal government from water contractors in Arizona in exchange for relinquishing the contractors' entitlements to water from the Central Arizona Project. The debt payment would otherwise offset a portion of the capital costs associated with the CAP. CBO estimates that enacting this section would result in a loss of receipts of about $2 million a year, beginning in 2005.

TABLE 2- ESTIMATED IMPACT OF H.R. 885 ON DIRECT SPENDING OVER THE 2005-2014 PERIOD
-----------------------------------------------------------------------------------------------------------------
                           By fiscal year, in millions of dollars--                                              
                                                               2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 
-----------------------------------------------------------------------------------------------------------------
Estimated Budget Authority                                        2    2    2    2    2  132   78   77   96  100 
Estimated Outlays                                                 2    2    2    2    2  105   66   78   90   96 
-----------------------------------------------------------------------------------------------------------------

Lower Colorado River Basin Development Fund. Section 107 would authorize the Secretary of the Interior to pay for certain benefits and water projects from funds deposited into the Lower Colorado River Basin Development Fund without further appropriation action. Under current law, approximately $55 million a year is deposited in that fund. Starting in 2010, however, the bill would authorize the Secretary to spend those accumulated funds and interest earnings on authorized projects, such as the rehabilitation of the San Carlos Irrigation Project, construction of the New Mexico Unit of the Central Arizona Project, and construction of CAP distributing systems for the Gila River Indian Community as well as the San Carlos Apache Tribe and the Tohono O'odham Nation. In addition, the bill would establish an account within the LCRBD Fund to pay obligations resulting from future Indian water settlements approved by the Congress. CBO estimates that enacting this section would increase direct spending by about $425 million over the 2010-2014 period.

Spending in 2010 would be greater than in other years because estimated expenses in that year include $53 million to establish the Gila River Indian Community Water Operations. Maintenance, and Replacement Trust Fund. Such trust funds that are held and managed in a fiduciary capacity by the federal government on behalf of Indian tribes are treated as nonfederal entities. As a result, outlays for this new trust fund would be recorded on the budget in the year that all funds are provided to the tribe and the settlement agreement is final.

Spending Subject to Appropriation

CBO estimates that implementing three provisions of H.R. 885 would cost $6 million over the 2005-2009 period. Under H.R. 885, none of the sections discussed below would be eligible for funding from the LCRBD Fund.

Biological Opinions. Section 110 would authorize the appropriation of such sums as are necessary to comply with biological opinions issued by the U.S. Fish and Wildlife Service as a result of impacts to the surrounding ecosystem from the operation of the Central Arizona Project. Based on information from the Bureau of Reclamation, CBO estimates that implementing this provision would cost about $5 million over the 2005-2009 period, assuming appropriation of the necessary funds.

Water Storage. Section 105 would authorize the Secretary to work with the state of Arizona to develop a program to store water underground for use during drought conditions. The bill would authorize the appropriation of such sums as are necessary to pay for the federal share of this program. Based on information from the bureau, CBO estimates that implementing this provision would cost about $20 million assuming adjustments for anticipated inflation, but those costs are likely to occur after 2009.

Analyses for Water Settlement Agreements. Title IV would authorize the appropriation of $600,000 in 2006 to analyze costs and issues concerning outstanding water settlement agreements for the San Carlos Apache Tribe, the White Mountain Apache Tribe, and other Indian Tribes in Arizona. CBO estimates that implementing this provision would cost $600,000 over the 2006-2007 period.

Integovernmental and private sector impact: H.R. 885 contains no intergovernmental mandates as defined in UMRA and would impose no costs on state, local, or tribal governments. Enacting this bill is a necessary step to implement settlement agreements among a number of parties in Arizona, including the state, Indian tribes, and the Central Arizona Water Conservation District. Any costs or duties imposed by this bill upon any of these governments would be those assumed by them voluntarily as parties to these agreements.

Previous CBO estimate: On October 4, 2004, CBO transmitted a cost estimate for S. 437, the Arizona Water Settlements Act, as ordered reported by the Senate Committee on Energy and Natural Resources on September 15, 2004. The two bills are very similar, and our cost estimates are nearly identical. H.R. 885 would authorize funds to analyze future water settlement agreements in Arizona, while S. 437 does not contain that provision.

Estimate prepared by: Federal Costs: Julie Middleton and Mike Waters; Impact on State, Local and Tribal Governments: Marjorie Miller; and Impact on the Private Sector: Selena Caldera.

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

COMPLIANCE WITH PUBLIC LAW 104-4

This bill contains no unfunded mandates.

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or tribal law.

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

COLORADO RIVER BASIN PROJECT ACT

* * * * * * *

TITLE III--AUTHORIZED UNITS: PROTECTION OF EXISTING USES

* * * * * * *

Sec. 304. (a) * * *

* * * * * * *

(f) [Struck out->][ (1) In the operation of the Central Arizona Project, the Secretary shall offer to contract with water users in New Mexico for water from the Gila River, its tributaries and underground water sources in amounts that will permit consumptive use of water in New Mexico of not to exceed an annual average in any period of ten consecutive years of eighteen thousand acre-feet, including reservoir evaporation, over and above the consumptive uses provided for by article IV of the decree of the Supreme Court of the United States in Arizona against California (376 U.S. 340). Such increased consumptive uses shall not begin until, and shall continue only so long as, delivery of Colorado River water to downstream Gila River users in Arizona is being accomplished in accordance with this Act, in quantities sufficient to replace any diminution of their supply resulting from such diversion from the Gila River, its tributaries and underground water sources. In determining the amount required for this purpose full consideration shall be given to any differences in the quality of the waters involved. ][<-Struck out] (1) In the operation of the Central Arizona Project, the Secretary shall offer to contract with water users in the State of New Mexico, with the approval of its Interstate Stream Commission, or with the State of New Mexico, through its Interstate Stream Commission, for water from the Gila River, its tributaries and underground water sources in amounts that will permit consumptive use of water in New Mexico of not to exceed an annual average in any period of 10 consecutive years of 14,000 acre-feet, including reservoir evaporation, over and above the consumptive uses provided for by article IV of the decree of the Supreme Court of the United States in Arizona v. California (376 U.S. 340). Such increased consumptive uses shall continue only so long as delivery of Colorado River water to downstream Gila River users in Arizona is being accomplished in accordance with this Act, in quantities sufficient to replace any diminution of their supply resulting from such diversion from the Gila River, its tributaries and underground water sources. In determining the amount required for this purpose, full consideration shall be given to any differences in the quality of the water involved.

[Struck out->][ (2) The Secretary shall further offer to contract with water users in New Mexico for water from the Gila River, its tributaries, and underground water sources in amounts that will permit consumptive uses of water in New Mexico of not to exceed an annual average in any period of ten consecutive years of an additional thirty thousand acre-feet, including reservoir evaporation. Such further increases in consumptive use shall not begin until, and shall continue only so long as, works capable of augmenting the water supply of the Colorado River system have been completed and water sufficiently in excess of two million eight hundred thousand acre-feet per annum is available from the main stream of the Colorado River for consumptive use in Arizona to provide water for the exchanges herein authorized and provided. In determining the amount required for this purpose full consideration shall be given to any differences in the quality of the waters involved. ][<-Struck out]

[Struck out->][ (3) ][<-Struck out] (2) All additional consumptive uses provided for in clauses (1) and (2) of this subsection shall be subject to all rights in New Mexico and Arizona as established by the decree entered by the United States District Court for the District of Arizona on June 29, 1935, in United States against Gila Valley Irrigation District and others (Globe Equity Numbered 59) and to all other rights existing on the effective date of this Act in New Mexico and Arizona to water from the Gila River, its tributaries, and underground water sources, and shall be junior thereto and shall be made only to the extent possible without economic injury or cost to the holders of such rights.

* * * * * * *

TITLE IV--LOWER COLORADO RIVER BASIN DEVELOPMENT FUND: ALLOCATION AND REPAYMENT OF COSTS: CONTRACTS

* * * * * * *

Sec. 403. (a) * * *

* * * * * * *

(e) [Struck out->][ Revenues ][<-Struck out] Except as provided in subsection (f), revenues credited to the development fund shall not be available for construction of the works comprised within any unit of the project herein or hereafter authorized except upon appropriation by the Congress.

[Struck out->][ (f) Moneys credited to the development fund pursuant to subsection (b) and clauses (1) and (3) of subsection (c) of this section and the portion of revenues derived from the sale of power and energy for use in Arizona pursuant to clause (2) of subsection (c) of this section in excess of the amount necessary to meet the requirements of clauses (1) and (2) of subsection (d) of this section shall be paid annually to the general fund of the Treasury to return-- ][<-Struck out]

(f) ADDITIONAL USES OF REVENUE FUNDS-

(g) All revenues credited to the development fund in accordance with [Struck out->][ clause ][<-Struck out] subsection (c)(2) of this section (excluding only those revenues derived from the sale of power and energy for use in Arizona during the payout period of the Central Arizona Project as authorized herein) and such other revenues as remain in the development fund after making the payments required by subsections (d) and (f) of this section shall be available (1) to make payments, if any, as required by sections 307 and 502 of this Act, (2) for repayment to the general fund of the Treasury the costs of each salinity control unit or separable feature thereof the costs of measures to replace incidental fish and wildlife values foregone, and the costs of on-farm measures payable from the Lower Colorado River Basin Development Fund in accordance with sections 205(a)(2), 205(a)(3), and 205(b)(1) of the Colorado River Salinity Control Act and (3) upon appropriation by the Congress, to assist in the repayment of reimbursable costs incurred in connection with units hereafter constructed to provide for the augmentation of the water supplies of the Colorado River for use below Lee Ferry as may be authorized as a result of the investigations and recommendations made pursuant to section 201 and subsection 203(a) of this Act.

* * * * * * *

-

SECTION 11 OF THE SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY WATER RIGHTS SETTLEMENT ACT OF 1988

SEC. 11. MISCELLANEOUS PROVISIONS.

(a) * * *

* * * * * * *

[Struck out->][ (h) Within thirty days after the date of enactment of this Act, the Secretary shall request the Arizona Department of Water Resources to recommend a reallocation of non-Indian agricultural CAP water that has been offered to but not contracted for by potential non-Indian agricultural subcontractors. Within one hundred and eighty days of receipt of such recommendations, the Secretary shall reallocate such water for non-Indian agricultural use, and the Secretary and CAWCD shall thereafter offer amendatory or new subcontracts for such water to non-Indian agricultural users. ][<-Struck out]

-

SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT ACT OF 1982

* * * * * * *

[Struck out->][ TITLE III ][<-Struck out]

[Struck out->][ CONGRESSIONAL FINDINGS ][<-Struck out]

[Struck out->][ SEC. 301. The Congress finds that-- ][<-Struck out]

[Struck out->][ DEFINITIONS ][<-Struck out]

[Struck out->][ SEC. 302. For purposes of this title-- ][<-Struck out]

[Struck out->][ WATER DELIVERIES TO TRIBE FROM CAP; MANAGEMENT PLAN; REPORT ON WATER AVAILABILITY; CONTRACT WITH TRIBE ][<-Struck out]

[Struck out->][ SEC. 303. (a) As soon as is possible but not later than ten years after the enactment of this title, if the Papago Tribe has agreed to the conditions set forth in section 306, the Secretary, acting through the Bureau of Reclamation, shall-- ][<-Struck out]

[Struck out->][ (b)(1) In order to encourage the Papago Tribe to develop sources of water on the Sells Papago Reservation, the Secretary shall, if so requested by the tribe, carry out a study to determine the availability and suitability of water resources within the Sells Papago Reservation but outside the Tucson Active Management Area and that part of the Upper Santa Cruz Basin not within that area. ][<-Struck out]

[Struck out->][ (2) The Secretary shall, in cooperation with the Secretary of Energy, or, with the appropriate agency or officials, carry out a study to determine-- ][<-Struck out]

[Struck out->][ (c) The Papago Tribe shall have the right to withdraw ground water from beneath the San Xavier Reservation and the Schuk Toak District of the Sells Papago Reservation subject to the limitations of section 306(a). ][<-Struck out]

[Struck out->][ (d) Nothing contained in this title shall diminish or abrogate any obligations of the Secretary to the Papago Tribe under the December 11, 1980, agreement. ][<-Struck out]

[Struck out->][ (e) Nothing contained in sections 303(c) and 306(c) shall be construed to establish whether or not the Federal reserved rights doctrine applies, or does not apply, to ground water. ][<-Struck out]

[Struck out->][ DELIVERIES UNDER EXISTING CONTRACT; ALTERNATIVE WATER SUPPLIES; OPERATION AND MAINTENANCE ][<-Struck out]

[Struck out->][ SEC. 304. (a) The water delivered from the main project works of the Central Arizona Project to the San Xavier Reservation and to the Schuk Toak District of the Sells Papago Reservation as provided in section 303(a), shall be delivered in such amounts, and according to such terms and conditions, as are set forth in the December 11, 1980, agreement, except as otherwise provided under this section. ][<-Struck out]

[Struck out->][ (b) Where the Secretary, pursuant to the terms and conditions of the agreement referred to in subsection (a), is unable, during any year, to deliver from the main project works of the Central Arizona Project any portion of the full amount of water specified in section 303(a)(1)(A) and section 303(a)(2)(A), the Secretary shall acquire and deliver an equivalent quantity of water from the following sources or any combination thereof: ][<-Struck out]

[Struck out->][ (c) If the Secretary is unable to acquire and deliver quantities of water adequate to fulfill his obligations under this section or paragraphs (1)(A) and (2)(A) of section 303(a), he shall pay damages in an amount equal to-- ][<-Struck out]

[Struck out->][ (d) No land, water, water rights, contract rights, or reclaimed water may be acquired under subsection (b) without the consent of the owner thereof. No private lands may be acquired under subsection (b)(3)(A) unless the lands have a recent history of receiving or being capable of actually receiving all or substantially all of the water right the use of which is recognized by State law. In acquiring any private lands under subsection (b)(3)(A), the Secretary shall give preference to the acquisition of lands upon which water has actually been put to beneficial use in any one of the five years preceding the date of acquisition. Nothing in this section shall authorize the Secretary to acquire or disturb the water rights of any Indian tribe, band, group, or community. ][<-Struck out]

[Struck out->][ (e)(1) To meet the obligation referred to in paragraphs (1)(A) and (2)(A) of section 303(a), the Secretary shall, acting through the Bureau of Reclamation, as part of the main project works of the Central Arizona Project-- ][<-Struck out]

[Struck out->][ (2) There is hereby authorized to be appropriated by this title in addition to other sums authorized to be appropriated by this title, a sum equal to that portion of the total costs of phase B of the Tucson Aqueduct of the Central Arizona Project which the Secretary determines to be properly allocable to construction of facilities for the delivery of water to Indian lands as described in subparagraphs (A) and (B) of paragraph (1). Sums allocable to the construction of such facilities shall be reimbursable as provided by the Act of July 1, 1932 (Public Law 72-240; 25 U.S.C. 386(a)), as long as such water is used for irrigation of Indian lands. ][<-Struck out]

[Struck out->][ (f) To facilities the delivery of water to the San Xavier and the Schuk Toak District of the Sells Papago Reservation under this title, the Secretary is authorized-- ][<-Struck out]

[Struck out->][ RECLAIMED WATER; ALTERNATIVE WATER SUPPLIES ][<-Struck out]

[Struck out->][ SEC. 305. (a) As soon as possible, but not later than ten years after the date of enactment of this title, the Secretary shall acquire reclaimed water in accordance with the agreement described in section 307(a)(1) and deliver annually twenty-three thousand acre-feet of water suitable for agricultural use to the San Xavier Reservation and deliver annually five thousand two hundred acre-feet of water suitable for agricultural use to the Schuk Toak District of the Sells Papago Reservation. ][<-Struck out]

[Struck out->][ (b)(1) The obligation of the Secretary referred to in subsection (a) to deliver water suitable for agricultural use may be fulfilled by voluntary exchange of that reclaimed water for any other water suitable for agricultural use or by other means. To make available and deliver such water, the Secretary acting through the Bureau of Reclamation shall design, construct, operate, maintain, and replace such facilities as are appropriate. The costs of design, construction, operation, maintenance, and replacement of on-reservation systems for the distribution of the water referred to in subsection (a) are the responsibility of the Papago Tribe. ][<-Struck out]

[Struck out->][ (2) The Secretary shall not construct a separate delivery system to deliver reclaimed water referred to in subsection (a) to the San Xavier Reservation and the Schuk Toak District of the Sells Papago Reservation. ][<-Struck out]

[Struck out->][ (3) To facilitate the delivery of water under this title, the Secretary shall, to the extent possible, utilize unused capacity of the main project works of the Central Arizona Project without reallocation of costs. ][<-Struck out]

[Struck out->][ (c) The Secretary may, as an alternative to, and in satisfaction of the obligation to deliver the quantities of water to be delivered under the subsection (a), acquire and deliver pursuant to agreements authorized in section 307(b), an equivalent quantity of water from the following sources or any combination thereof-- ][<-Struck out]

[Struck out->][ (d) If the Secretary is unable to acquire and deliver quantities of water adequate to fulfill his obligations under this section, he shall pay damages in an amount equal to-- ][<-Struck out]

[Struck out->][ (e) No land, water, water rights, contract rights, or reclaimed water may be acquired under subsection (c) without the consent of the owner thereof. No private lands may be acquired under subsection (c)(3)(A) unless the lands have a recent history of receiving or being capable of actually receiving all or substantially all of the water the right to the use of which is recognized by State law. In acquiring said private lands, the Secretary shall give preference to the acquisition of lands upon which water has actually been put to beneficial use in any one of the five years preceding the date of acquisition. Nothing in this section shall authorize the Secretary to acquire or disturb the water rights of any Indian tribe, band, group, or community. ][<-Struck out]

[Struck out->][ LIMITATION ON PUMPING FACILITIES FOR WATER DELIVERIES; DISPOSITION OF WATER ][<-Struck out]

[Struck out->][ SEC. 306. (a) The Secretary shall be required to carry out his obligation under subsections (b), (c), and (e) of section 304 and under section 305 only if the Papago Tribe agrees to-- ][<-Struck out]

[Struck out->][ (b) The Secretary shall be required to carry out his obligations with respect to distribution systems under paragraphs (1)(B) and (2)(B) of section 303(a) only if the Papago Tribe agrees to-- ][<-Struck out]

[Struck out->][ (c)(1) The Papago Tribe shall have the right to devote all water supplies under this title, whether delivered by the Secretary or pumped by the tribe, to any use, including but not limited to agricultural, municipal, industrial, commercial, mining, or recreational use whether within or outside the Papago Reservation so long as such use is within the Tucson Active Management Area and that part of the Upper Santa Cruz Basin not within such area. ][<-Struck out]

[Struck out->][ (2) The Papago Tribe may sell, exchange, or temporarily dispose of water, but the tribe may not permanently alienate any water right. In the event the tribe sells, exchanges, or temporarily disposes of water, such sale, exchange, or temporary disposition shall be pursuant to a contract which has been accepted and ratified by a resolution of the Papago Tribal Council and approved and executed by the Secretary as agent and trustee for the tribe. Such contract shall specifically provide that an action may be maintained by the contracting party against the United States and the Secretary for the breach thereof. The net proceeds from any sale, exchange, or disposition of water by the Papago Tribe shall be used for social or economic programs or for tribal administrative purposes which benefit the Papago Tribe. ][<-Struck out]

[Struck out->][ (d) Nothing in section 306(c) shall be construed to establish whether or not reserved water may be put to use, or sold for use, off of any reservation to which reserved water rights attach. ][<-Struck out]

[Struck out->][ OBLIGATION OF THE SECRETARY; CONTRACT FOR RECLAIMED WATER; DISMISSAL AND WAIVER OR CLAIMS OF PAPAGO TRIBE AND ALLOTTEES ][<-Struck out]

[Struck out->][ SEC. 307. (a) The Secretary shall be required to carry out his obligations under subsections (b), (c), and (e) of section 304 and under section 305 only if-- ][<-Struck out]

[Struck out->][ (b) After the conditions referred to in subsection (a) have been met the Secretary shall be authorized and required, if necessary or desirable, to enter into agreements with other individuals or entities to acquire and deliver water from such sources set forth in section 305(c) if through such contracts as exercised in conjunction with the contract required in subsection (a)(1)(A) it is possible to deliver the quantities of water required in section 305(a). ][<-Struck out]

[Struck out->][ (c) Nothing in this section shall be construed as a waiver or release by the Papago Tribe of any claim where such claim arises under this title. ][<-Struck out]

[Struck out->][ (d) The waiver and release referred to in this section shall not take effect until such time as the trust fund referred to in section 309 is in existence, the conditions set forth in subsection (a) have been met, and the full amount authorized to be appropriated to the trust fund under section 309 has been appropriated by the Congress. ][<-Struck out]

[Struck out->][ (e) The settlement provided in this title shall be deemed to fully satisfy any and all claims of water rights or injuries to water rights (including water rights in both ground water and surface water) of all individual members of the Papago Tribe that have a legal interest in lands of the San Xavier Reservation and the Schuk Toak District of the Sells Reservation located within the Tucson Active Management Area and that part of the Upper Santa Cruz Basin not within said area, as of the date the waiver and release referred to in this section take effect. Any entitlement to water of any individual member of the Papago Tribe shall be satisfied out of the water resources provided in this title. ][<-Struck out]

[Struck out->][ STUDY OF LANDS WITHIN THE GILA BEND RESERVATION; EXCHANGE OF LANDS AND ADDITION OF LANDS TO THE RESERVATION; AUTHORIZED APPROPRIATIONS ][<-Struck out]

[Struck out->][ Sec. 308. (a) The Secretary is hereby authorized and directed to carry out such studies and analysis as he deems necessary to determine which lands, if any, within the Gila Bend Reservation have been rendered unsuitable for agriculture by reason of the operation of the Painted Rock Dam. Such study and analysis shall be completed within one year after the date of the enactment of this title. ][<-Struck out]

[Struck out->][ (b) If, on the basis of the study and analysis conducted under subsection (a), the Secretary determines that lands have been rendered unsuitable for agriculture for the reasons set forth in subsection (a), and if the Papago Tribe consents, the Secretary is authorized to exchange such lands for an equivalent acreage of land under his jurisdiction which are within the Federal public domain and which, but for their suitability for agriculture, are of like quality. ][<-Struck out]

[Struck out->][ (c) The lands exchanged under this section shall be held in trust for the Papago Tribe and shall be part of the Gila Bend Reservation for all purposes. Such lands shall be deemed to have been reserved as of the date of the reservation of the lands for which they are exchanged. ][<-Struck out]

[Struck out->][ (d) Lands exchanged under this section which, prior to the exchange, were part of the Gila Bend Reservation, shall be managed by the Secretary of the Interior through the Bureau of Land Management. ][<-Struck out]

[Struck out->][ (e) The Secretary may require the Papago Tribe to reimburse the United States for moneys paid, if any, by the Federal Government for flood easements on lands which the Secretary replaces by exchange under subsection (b). ][<-Struck out]

[Struck out->][ ESTABLISHMENT OF TRUST FUND; EXPENDITURES FROM FUND ][<-Struck out]

[Struck out->][ SEC. 309. (a) Pursuant to appropriations the Secretary of the Treasury shall pay to the authorized governing body of the Papago Tribe the sum of $15,000,000 to be held in trust for the benefit of such Tribe and invested in interest bearing deposits and securities including deposits and securities of the United States. ][<-Struck out]

[Struck out->][ (b) The authorized governing body of the Papago Tribe, as trustee for such Tribe, may only spend each year the interest and dividends accruing on the sum held and invested pursuant to subsection (a). Such amount may only be used by the Papago Tribe for the subjugation of land, development of water resources, and the construction, operation, maintenance, and replacement of related facilities on the Papago Reservation which are not the obligation of the United States under this or any other Act of Congress. ][<-Struck out]

[Struck out->][ APPLICATION OF INDIAN SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT ][<-Struck out]

[Struck out->][ SEC. 310. The functions of the Bureau of Reclamation under this title shall be subject to the provisions of the Indian Self-Determination and Education Assistance Act (88 Stat. 2203; 25 U.S.C. 450) to the same extent as if performed by the Bureau of Indian Affairs. ][<-Struck out]

[Struck out->][ SEC. 311. The provisions of section 2415 of title 28, United States Code, shall apply to any action relating to water rights of the Papago Indian Tribe or of any member of such Tribe which is brought-- ][<-Struck out]

[Struck out->][ ARID LAND RENEWABLE RESOURCE ASSISTANCE ][<-Struck out]

[Struck out->][ SEC. 312. If a Federal entity is established to provide financial assistance to undertake arid land renewable resources projects and to encourage and assure investment in the development of domestic sources of arid land renewable resources, such entity shall give first priority to the needs of the Papago Tribe in providing such assistance. Such entity shall make available to the Papago Tribe-- ][<-Struck out]

[Struck out->][ COOPERATIVE FUND ][<-Struck out]

[Struck out->][ SEC. 313. (a) There is established in the Treasury of the United States a fund to be known as the `Cooperative Fund' for purposes of carrying out the obligations of the Secretary under sections 303, 304, and 305 of this title, including-- ][<-Struck out]

[Struck out->][ (b)(1) The Cooperative Fund shall consist of-- ][<-Struck out]

[Struck out->][ (2) The amounts referred to in subparagraph (B) of paragraph (1) shall be contributed before the expiration of the three-year period beginning on the date of the enactment of this title. To the extent that any portion of such amounts is contributed after the one-year period beginning on the date of the enactment of this title, the contribution shall include an adjustment representing the additional interest which would have been earned by the Cooperative Fund if that portion had been contributed before the end of the one-year period. ][<-Struck out]

[Struck out->][ (3) There are hereby authorized to be appropriated to the Cooperative Fund the following: ][<-Struck out]

[Struck out->][ (c)(1) Only interest accruing to the Cooperative Fund may be expended and no such interest may be expended prior to the earlier of-- ][<-Struck out]

[Struck out->][ (2) Interest accruing to the Fund during the twelve-month period before the date determined under paragraph (1) and interest accruing to Fund thereafter shall, without further appropriation, be available for expenditure after the date determined under paragraph (1). ][<-Struck out]

[Struck out->][ (d) The Secretary of the Treasury shall be the trustee of the Cooperative Fund. It shall be the duty of the Secretary of the Treasury to invest such portion of the Fund as is not, in his judgment, required to meet current withdrawals. Such investments shall be in public debt securities with maturities suitable for the needs of such Fund and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. ][<-Struck out]

[Struck out->][ (e) If, before the date three years after the date of the enactment of this title-- ][<-Struck out]

[Struck out->][ (f) Payments for damages arising under 304(c) and 305(d) shall not exceed in any given year the amounts available for expenditure in any given year from the Cooperative Fund established under this section. ][<-Struck out]

[Struck out->][ COMPLIANCE WITH BUDGET ACT ][<-Struck out]

[Struck out->][ SEC. 314. No authority under this title to enter into contracts or to make payments shall be effective except to the extent and in such amounts as provided in advance in appropriations Acts. Any provision of this title which, directly or indirectly, authorizes the enactment of new budget authority shall be effective only for fiscal years beginning after September 30, 1982. ][<-Struck out]

[Struck out->][ SHORT TITLE ][<-Struck out]

[Struck out->][ SEC. 315. This title may be cited as the `Southern Arizona Water Rights Settlement Act of 1982'. ][<-Struck out]

TITLE III--SOUTHERN ARIZONA WATER RIGHTS SETTLEMENT

SEC. 301. SHORT TITLE.

SEC. 302. PURPOSES.

SEC. 303. DEFINITIONS.

SEC. 304. WATER DELIVERY AND CONSTRUCTION OBLIGATIONS.

SEC. 305. DELIVERIES UNDER EXISTING CONTRACT; ALTERNATIVE WATER SUPPLIES.

SEC. 306. ADDITIONAL WATER DELIVERY.

SEC. 307. CONDITIONS ON CONSTRUCTION, WATER DELIVERY, REVENUE SHARING.

(aa) the design and construction of the delivery and distribution system and the rehabilitation of the irrigation system for the cooperative farm;

(bb) the extension of the irrigation system for the cooperative farm;

(cc) the subjugation of land to be served by the extension of the irrigation system;

(dd) the design and construction of storage facilities solely for water deliverable for use within the San Xavier Reservation; and

(ee) the completion by the Secretary of a water resources study of the San Xavier Reservation and subsequent preparation of a water management plan under section 308(d);

(aa) to fulfill the obligations prescribed in the Asarco agreement; and

(bb) for groundwater storage, maintenance of instream flows, and maintenance of riparian vegetation and habitat;

SEC. 308. WATER CODE; WATER MANAGEMENT PLAN; STORAGE PROJECTS; STORAGE ACCOUNTS; GROUNDWATER.

(aa) the water resources identified in section 307(a)(1)(G)(i) that are subject to a first right of beneficial use; or

(bb) subject to the first right of use of the Nation, available water resources identified in section 307(a)(1)(G)(i)(II);

`SEC. 309. USES OF WATER.

SEC. 310. COOPERATIVE FUND.

SEC. 311. CONTRACTING AUTHORITY; WATER QUALITY; STUDIES; ARID LAND ASSISTANCE.

SEC. 312. WAIVER AND RELEASE OF CLAIMS.

SEC. 313. AFTER-ACQUIRED TRUST LAND.

SEC. 314. NONREIMBURSABLE COSTS.

SEC. 315. TRUST FUND.

SEC. 316. MISCELLANEOUS PROVISIONS.

SEC. 317. AUTHORIZED COSTS.



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