HR5935-119

What This Bill Does

The Agua Caliente Band of Cahuilla Indians Water Rights Settlement Act authorizes, ratifies, and confirms a water settlement among the Tribe, Coachella Valley Water District, Desert Water Agency, and the United States. Its purposes are to settle California water-right claims for the Tribe, the United States as trustee, and allottees; settle claims over water-related fees, replenishment assessment charges, and Tribal possessory interest tax; authorize funds; transfer Federal land to the Tribe; and sell Federal facility land to CVWD. The bill ratifies the Agreement where consistent with the Act and directs the Secretary to execute it. It confirms the Tribal Water Right as the right to produce or use up to 20,000 acre-feet per year of groundwater with a priority date no later than the 1876 and 1877 Executive Orders establishing the Reservation, prior and paramount to Water District claims to Native Groundwater in the Indio Subbasin. It establishes the Agua Caliente Settlement Trust Fund with development projects, groundwater augmentation, water management, and operation, maintenance, and replacement accounts. Treasury must transfer $300 million, $100 million, $50 million, and $50 million into the accounts, adjusted by the Bureau of Reclamation construction cost index. Enforceability depends on conforming the Agreement, execution by all parties including the United States, full funding or other sources, court approval and decree, and waiver execution, with expiration if findings are not published by December 31, 2035, or a later approved date. The Tribe and the United States waive specified water, pore-space, overdraft, RAC, water quality, service, and negotiation claims against CVWD and DWA in exchange for recognition and benefits. The bill preempts Riverside County ad valorem property tax on possessory interests when the Tribe imposes a Tribal Tax, requires Tribal Tax distributions to other public agencies based on the tax apportionment schedule, limits use of proceeds, and waives Tribal sovereign immunity for enforcement. It transfers specified Federal lands into trust for the Tribe as part of the Reservation, subject to existing rights, and lets CVWD buy facility land at fair market value while requiring cultural resource stop-work, notification, treatment, and human-remains procedures. Miscellaneous sections waive U.S. sovereign immunity for compliance, preserve other Tribes' water rights, clarify conflicts, and limit U.S. liability when Congress has not expressly appropriated funds.

Who Benefits and How

The Agua Caliente Band of Cahuilla Indians benefits from ratification of the settlement, confirmation of a senior 20,000 acre-feet-per-year groundwater right, trust fund accounts, land-into-trust transfers, and Tribal possessory-interest tax authority. Tribal allottees benefit because the settlement is intended to preserve or exceed their existing benefits while resolving litigation risk. Coachella Valley Water District and Desert Water Agency benefit from claim waivers, settlement finality, and defined obligations. Water infrastructure contractors benefit from funded development, groundwater augmentation, water management, and operation and replacement projects. Other public agencies in Riverside County benefit because Tribal Tax proceeds must be distributed according to the tax apportionment schedule.

Who Bears the Burden and How

Federal taxpayers bear the cost of $500 million in settlement trust fund transfers, adjusted for construction cost changes. Interior and Treasury must establish, invest, distribute, and oversee multiple settlement trust fund accounts and enforceability findings. CVWD must pay fair market value, appraisal, survey, and conveyance costs for facility land and follow cultural resource stop-work and notification rules. Riverside County loses its ad valorem property tax on covered possessory interests when the Tribe imposes the Tribal Tax. The Tribe must execute waivers, administer the Tribal Tax, distribute proceeds to other public agencies first, and comply with limits on per capita distributions.

Key Provisions

• Authorizes, ratifies, and confirms the Agua Caliente water rights settlement agreement where consistent with the Act.
• Confirms a Tribal Water Right to produce or use up to 20,000 acre-feet per year of groundwater with senior priority in the Indio Subbasin.
• Establishes the Agua Caliente Settlement Trust Fund and directs $500 million in indexed transfers across four accounts.
• Sets enforceability conditions, waiver and release provisions, expiration rules, and offsets for failed enforceability.
• Authorizes a Tribal Tax on possessory interests in lieu of Riverside County ad valorem property tax and requires distributions to other public agencies.
• Transfers specified Federal lands into trust for the Tribe and authorizes sale of facility land to CVWD at fair market value with cultural resource protections.