S3242-119

1. Short title This Act may be cited as the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025.

2. Definitions Section 503 of the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3122) is amended— in paragraph (1), by striking and the New Mexico Department of Finance and Administration Local Government Division on behalf of ; by redesignating paragraphs (3), (4), (5), (6), (7), (8), (9), (10), (11), and (12) as paragraphs (4), (5), (6), (7), (8), (10), (11), (12), (13), and (14), respectively; by inserting after paragraph (2) the following: The term Mitigation Well System means a system of wells, pipelines, and treatment infrastructure to provide a method for offsetting surface water depletion effects to the stream segments identified in Article 7.3.3.1.9 of the Settlement Agreement. by inserting after paragraph (8) (as so redesignated) the following: The term Pueblo Trust Funds means— the Taos Pueblo Water Development Fund established by subsection (a) of section 505; the Taos Pueblo Groundwater Development Supplemental Trust Fund established by subsection (h) of that section; and the Taos Pueblo Surface Water Sharing Supplemental Trust Fund established by subsection (i) of that section. (3)Mitigation well systemThe term Mitigation Well System means a system of wells, pipelines, and treatment infrastructure to provide a method for offsetting surface water depletion effects to the stream segments identified in Article 7.3.3.1.9 of the Settlement Agreement.; and (9)Pueblo trust fundsThe term Pueblo Trust Funds means—(A)the Taos Pueblo Water Development Fund established by subsection (a) of section 505;(B)the Taos Pueblo Groundwater Development Supplemental Trust Fund established by subsection (h) of that section; and(C)the Taos Pueblo Surface Water Sharing Supplemental Trust Fund established by subsection (i) of that section..

3. Pueblo Trust Funds Section 505 of the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3123) is amended— by striking the section heading and inserting Pueblo Trust Funds; in subsection (a)— in the subsection heading, by inserting of Taos Pueblo Water Development Fund after Establishment; and in the matter preceding paragraph (1), by striking (referred to in this section as the Fund); in subsection (b)— by striking the subsection heading and inserting Management of Pueblo Trust Funds; and by striking the Fund each place it appears and inserting the Pueblo Trust Funds; in subsection (c)— by striking the subsection heading and inserting Investment of Pueblo Trust Funds; in the matter preceding paragraph (1), by striking the Fund and inserting the Pueblo Trust Funds; and by striking paragraph (3) and inserting the following: the Trust Fund Reform Act. in subsection (d)— in the subsection heading, by striking Fund and inserting Taos Pueblo Water Development Fund; and by striking the Fund and inserting the Taos Pueblo Water Development Fund established by subsection (a); in subsection (e)— by striking the Fund each place it appears and inserting the Pueblo Trust Funds; and in paragraph (2), by striking specified in subsection (a) and inserting described in subsections (a), (h)(2), and (i)(2), as applicable; in subsection (f), in the matter preceding paragraph (1), by striking the Fund and inserting the Taos Pueblo Water Development Fund established by subsection (a); in subsection (g), by striking the Fund and inserting the Pueblo Trust Funds; and by adding at the end the following: There is established in the Treasury of the United States a fund, to be known as the Taos Pueblo Groundwater Development Supplemental Trust Fund (referred to in this subsection as the Groundwater Development Supplemental Trust Fund), consisting of— amounts appropriated to the Groundwater Development Supplemental Trust Fund under section 509(l); and any interest earned on investment of amounts in the Groundwater Development Supplemental Trust Fund under paragraph (3). The Pueblo may use amounts in the Groundwater Development Supplemental Trust Fund to pay or reimburse costs incurred by the Pueblo to investigate, plan, permit, design, engineer, construct, reconstruct, replace, rehabilitate, operate, or repair groundwater production, treatment, or delivery infrastructure consistent with the Settlement Agreement. On deposit, the Secretary shall invest amounts in the Groundwater Development Supplemental Trust Fund in accordance with subsection (c). Any investment earnings, including interest, credited to amounts in the Groundwater Development Supplemental Trust Fund are authorized to be used in accordance with paragraph (2). Amounts deposited in the Groundwater Development Supplemental Trust Fund pursuant to section 509(l), or from other authorized sources, shall be available to the Pueblo for expenditure or withdrawal after the requirements of subsection (e) have been met. The Secretary shall manage the Groundwater Development Supplemental Trust Fund in accordance with subsection (b). All expenditures and withdrawals by the Pueblo of funds in the Groundwater Development Supplemental Trust Fund shall comply with the requirements of subsection (e). There is established in the Treasury of the United States a fund, to be known as the Taos Pueblo Surface Water Sharing Supplemental Trust Fund (referred to in this subsection as the Surface Water Sharing Supplemental Trust Fund), consisting of— amounts appropriated to the Surface Water Sharing Supplemental Trust Fund under section 509(m); and any interest earned on investment of amounts in the Surface Water Sharing Supplemental Trust Fund under paragraph (3). The Pueblo may use amounts in the Surface Water Sharing Supplemental Trust Fund to pay or reimburse costs incurred by the Pueblo to investigate, plan, permit, design, engineer, construct, reconstruct, replace, rehabilitate, operate, or repair surface water sharing infrastructure and gages to facilitate implementation of Article 8.2 of the Settlement Agreement. On deposit, the Secretary shall invest amounts in the Surface Water Sharing Supplemental Trust Fund in accordance with subsection (c). Any investment earnings, including interest, credited to amounts in the Surface Water Sharing Supplemental Trust Fund are authorized to be used in accordance with paragraph (2). Amounts deposited in the Surface Water Sharing Supplemental Trust Fund pursuant to section 509(m), or from other authorized sources, shall be available to the Pueblo for expenditure or withdrawal after the requirements of subsection (e) have been met. The Secretary shall manage the Surface Water Sharing Supplemental Trust Fund in accordance with subsection (b). All expenditures and withdrawals by the Pueblo of amounts in the Surface Water Sharing Supplemental Trust Fund shall comply with the requirements of subsection (e). The table of contents for the Claims Resolution Act of 2010 (Public Law 111–291; 124 Stat. 3064) is amended by striking the item relating to section 505 and inserting the following: (3)the Trust Fund Reform Act.; (h)Taos pueblo groundwater development supplemental trust fund(1)EstablishmentThere is established in the Treasury of the United States a fund, to be known as the Taos Pueblo Groundwater Development Supplemental Trust Fund (referred to in this subsection as the Groundwater Development Supplemental Trust Fund), consisting of— (A) amounts appropriated to the Groundwater Development Supplemental Trust Fund under section 509(l); and (B)any interest earned on investment of amounts in the Groundwater Development Supplemental Trust Fund under paragraph (3).(2)Use of fundsThe Pueblo may use amounts in the Groundwater Development Supplemental Trust Fund to pay or reimburse costs incurred by the Pueblo to investigate, plan, permit, design, engineer, construct, reconstruct, replace, rehabilitate, operate, or repair groundwater production, treatment, or delivery infrastructure consistent with the Settlement Agreement.(3)InvestmentOn deposit, the Secretary shall invest amounts in the Groundwater Development Supplemental Trust Fund in accordance with subsection (c).(4)Investment earningsAny investment earnings, including interest, credited to amounts in the Groundwater Development Supplemental Trust Fund are authorized to be used in accordance with paragraph (2). (5) Availability Amounts deposited in the Groundwater Development Supplemental Trust Fund pursuant to section 509(l), or from other authorized sources, shall be available to the Pueblo for expenditure or withdrawal after the requirements of subsection (e) have been met. (6)ManagementThe Secretary shall manage the Groundwater Development Supplemental Trust Fund in accordance with subsection (b).(7)Conditions for expenditure and withdrawalAll expenditures and withdrawals by the Pueblo of funds in the Groundwater Development Supplemental Trust Fund shall comply with the requirements of subsection (e).(i)Taos pueblo surface water sharing supplemental trust fund(1)EstablishmentThere is established in the Treasury of the United States a fund, to be known as the Taos Pueblo Surface Water Sharing Supplemental Trust Fund (referred to in this subsection as the Surface Water Sharing Supplemental Trust Fund), consisting of— (A) amounts appropriated to the Surface Water Sharing Supplemental Trust Fund under section 509(m); and (B)any interest earned on investment of amounts in the Surface Water Sharing Supplemental Trust Fund under paragraph (3).(2)Use of fundsThe Pueblo may use amounts in the Surface Water Sharing Supplemental Trust Fund to pay or reimburse costs incurred by the Pueblo to investigate, plan, permit, design, engineer, construct, reconstruct, replace, rehabilitate, operate, or repair surface water sharing infrastructure and gages to facilitate implementation of Article 8.2 of the Settlement Agreement.(3)InvestmentOn deposit, the Secretary shall invest amounts in the Surface Water Sharing Supplemental Trust Fund in accordance with subsection (c).(4)Investment earningsAny investment earnings, including interest, credited to amounts in the Surface Water Sharing Supplemental Trust Fund are authorized to be used in accordance with paragraph (2). (5) Availability Amounts deposited in the Surface Water Sharing Supplemental Trust Fund pursuant to section 509(m), or from other authorized sources, shall be available to the Pueblo for expenditure or withdrawal after the requirements of subsection (e) have been met. (6)ManagementThe Secretary shall manage the Surface Water Sharing Supplemental Trust Fund in accordance with subsection (b).(7)Conditions for expenditure and withdrawalAll expenditures and withdrawals by the Pueblo of amounts in the Surface Water Sharing Supplemental Trust Fund shall comply with the requirements of subsection (e).. Sec. 505. Pueblo Trust Funds..

4. Mutual-benefit projects Section 507 of the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3126) is amended— in subsection (b)— in paragraph (1), by striking in subsection (a) and inserting under subsections (a) and (c); in paragraph (2), by striking shall and inserting authorized under subsections (a) and (c) shall; and in paragraph (3), in the matter preceding subparagraph (A), by striking section 509(c)(2) and inserting subsections (c)(2) and (k) of section 509; and by adding at the end the following: The Secretary, acting through the Commissioner of Reclamation, shall provide financial assistance from funds made available pursuant to section 509(k) to Eligible Non-Pueblo Entities in the form of grants or financial assistance agreements on a nonreimbursable basis or contracts to plan, permit, design, engineer, and construct the Mutual-Benefit Projects, including water treatment. To be eligible for funding under paragraph (1), an Eligible Non-Pueblo Entity— shall have applied for funding under subsection (a) prior to the date that is 90 days after the date of enactment of the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025; and shall apply for funding under paragraph (1) not later than 180 days after that date of enactment. Grants, contracts, and financial assistance agreements under paragraph (1) shall be subject to the following deadlines, as applicable: Subject to subparagraph (B), for each Mutual-Benefit Project that does not include part of the Mitigation Well System— at least 10 percent of funding awarded under paragraph (1) shall be expended not later than 3 years after the date on which that funding is awarded; construction of the Mutual-Benefit Project shall be substantially completed, as determined by the Commissioner of Reclamation, not later than 6 years after the date on which that funding is awarded; and construction of the Mutual-Benefit Project shall be fully completed, as determined by the Commissioner of Reclamation, not later than 8 years after the date on which that funding is awarded. Subject to subparagraph (B), for each Mutual-Benefit Project that includes part of the Mitigation Well System— at least 15 percent of funding awarded under paragraph (1) shall be expended not later than 3 years after the date on which that funding is awarded; construction of the Mutual-Benefit Project shall be substantially completed, as determined by the Commissioner of Reclamation, not later than 4 years after the date on which that funding is awarded; and construction of the Mutual-Benefit Project shall be fully completed, as determined by the Commissioner of Reclamation, not later than 5 years after the date on which that funding is awarded. The Commissioner of Reclamation may, for good cause, extend a deadline under clause (i) or (ii) of subparagraph (A) for the applicable grant, contract, or financial assistance agreement. If an Eligible Non-Pueblo Entity does not comply with any deadline described in clause (i) or (ii) of subparagraph (A), the Commissioner of Reclamation may— terminate the grant, contract, or financial assistance agreement; and require the Eligible Non-Pueblo Entity to return unexpended funds. Notwithstanding paragraphs (1) and (2), the Commissioner of Reclamation may— award funding returned under paragraph (3)(C) or funding not yet disbursed to the noncompliant Eligible Non-Pueblo Entity to another Eligible Non-Pueblo Entity to plan, permit, design, engineer, and construct any affected portion of the Mitigation Well System or another Mutual-Benefit Project; on consent of the Pueblo and State, contract with a third party to plan, permit, design, engineer, and construct any affected portion of the Mitigation Well System with funding returned under paragraph (3)(C) or not yet disbursed to the noncompliant Eligible Non-Pueblo Entity; and award funding made available pursuant to section 509(k) for alternative or interim offset infrastructure under paragraph (5) if— an Eligible Non-Pueblo Entity obligated to construct part of the Mitigation Well System— does not meet the eligibility requirements under paragraph (2) for the applicable part of the Mitigation Well System by the dates described in that paragraph; is not awarded funding under subsection (a) for the applicable part of the Mitigation Well System by the date that is 1 year after the date of enactment of the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025; is not awarded funding under this subsection for the applicable part of the Mitigation Well System by the date that is 18 months after that date of enactment; does not commence construction of the applicable part of the Mitigation Well System by the date that is 2 years after that date of enactment; or does not comply with a deadline described in paragraph (3); and sufficient funding is available in the Taos Settlement Mutual-Benefit Projects Supplemental Fund established under section 509(k)(3), as determined by the Commissioner of Reclamation. Notwithstanding paragraphs (1) and (2), the Commissioner of Reclamation may, pursuant to paragraph (4)(C), provide financial assistance from funds made available pursuant to section 509(k) in the form of grants or financial assistance agreements on a nonreimbursable basis or contracts— to another Eligible Non-Pueblo Entity to plan, permit, design, engineer, and construct alternative or interim offset infrastructure off Pueblo lands to offset surface water depletion effects on the applicable stream segments in accordance with a proposal from an Eligible Non-Pueblo Entity approved by the State, the Pueblo, and the Secretary; and to the Pueblo to plan, permit, design, engineer, and construct alternative or interim offset infrastructure on Pueblo lands, to be owned and operated by the Pueblo, to offset surface water depletion effects on the applicable stream segments in accordance with a proposal from the Pueblo approved by the State and the Secretary. Notwithstanding subsection (b)(2), no non-Federal cost share shall be required for alternative or interim offset infrastructure under clause (i)(II). Use of alternative or interim offset infrastructure constructed pursuant to subparagraph (A)(i) shall constitute compliance with requirements in the Settlement Agreement for use of the Mitigation Well System to offset surface water depletions on the applicable stream segments. Nothing in the amendments made by the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025 precludes agreements among the Pueblo, the Secretary, the State, and affected parties to address depletion offset obligations for the period before the applicable Mitigation Well is fully completed, permitted, and operating. In no event shall the Commissioner of Reclamation hold title to property acquired or constructed with funding made available pursuant to subsections (c)(2)(A) and (k) of section 509. (c) Supplemental funding for mutual-Benefit projects (1) In general The Secretary, acting through the Commissioner of Reclamation, shall provide financial assistance from funds made available pursuant to section 509(k) to Eligible Non-Pueblo Entities in the form of grants or financial assistance agreements on a nonreimbursable basis or contracts to plan, permit, design, engineer, and construct the Mutual-Benefit Projects, including water treatment. (2) Eligibility To be eligible for funding under paragraph (1), an Eligible Non-Pueblo Entity— (A) shall have applied for funding under subsection (a) prior to the date that is 90 days after the date of enactment of the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025; and (B) shall apply for funding under paragraph (1) not later than 180 days after that date of enactment. (3) Deadlines (A) In general Grants, contracts, and financial assistance agreements under paragraph (1) shall be subject to the following deadlines, as applicable: (i) Non-mitigation well system projects Subject to subparagraph (B), for each Mutual-Benefit Project that does not include part of the Mitigation Well System— (I) at least 10 percent of funding awarded under paragraph (1) shall be expended not later than 3 years after the date on which that funding is awarded; (II) construction of the Mutual-Benefit Project shall be substantially completed, as determined by the Commissioner of Reclamation, not later than 6 years after the date on which that funding is awarded; and (III) construction of the Mutual-Benefit Project shall be fully completed, as determined by the Commissioner of Reclamation, not later than 8 years after the date on which that funding is awarded. (ii) Mitigation well system Subject to subparagraph (B), for each Mutual-Benefit Project that includes part of the Mitigation Well System— (I) at least 15 percent of funding awarded under paragraph (1) shall be expended not later than 3 years after the date on which that funding is awarded; (II) construction of the Mutual-Benefit Project shall be substantially completed, as determined by the Commissioner of Reclamation, not later than 4 years after the date on which that funding is awarded; and (III) construction of the Mutual-Benefit Project shall be fully completed, as determined by the Commissioner of Reclamation, not later than 5 years after the date on which that funding is awarded. (B) Extension The Commissioner of Reclamation may, for good cause, extend a deadline under clause (i) or (ii) of subparagraph (A) for the applicable grant, contract, or financial assistance agreement. (C) Failure to comply with deadlines If an Eligible Non-Pueblo Entity does not comply with any deadline described in clause (i) or (ii) of subparagraph (A), the Commissioner of Reclamation may— (i) terminate the grant, contract, or financial assistance agreement; and (ii) require the Eligible Non-Pueblo Entity to return unexpended funds. (4) Exceptions Notwithstanding paragraphs (1) and (2), the Commissioner of Reclamation may— (A) award funding returned under paragraph (3)(C) or funding not yet disbursed to the noncompliant Eligible Non-Pueblo Entity to another Eligible Non-Pueblo Entity to plan, permit, design, engineer, and construct any affected portion of the Mitigation Well System or another Mutual-Benefit Project; (B) on consent of the Pueblo and State, contract with a third party to plan, permit, design, engineer, and construct any affected portion of the Mitigation Well System with funding returned under paragraph (3)(C) or not yet disbursed to the noncompliant Eligible Non-Pueblo Entity; and (C) award funding made available pursuant to section 509(k) for alternative or interim offset infrastructure under paragraph (5) if— (i) an Eligible Non-Pueblo Entity obligated to construct part of the Mitigation Well System— (I) does not meet the eligibility requirements under paragraph (2) for the applicable part of the Mitigation Well System by the dates described in that paragraph; (II) is not awarded funding under subsection (a) for the applicable part of the Mitigation Well System by the date that is 1 year after the date of enactment of the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025; (III) is not awarded funding under this subsection for the applicable part of the Mitigation Well System by the date that is 18 months after that date of enactment; (IV) does not commence construction of the applicable part of the Mitigation Well System by the date that is 2 years after that date of enactment; or (V) does not comply with a deadline described in paragraph (3); and (ii) sufficient funding is available in the Taos Settlement Mutual-Benefit Projects Supplemental Fund established under section 509(k)(3), as determined by the Commissioner of Reclamation. (5) Alternative or interim offset infrastructure (A) In general (i) In general Notwithstanding paragraphs (1) and (2), the Commissioner of Reclamation may, pursuant to paragraph (4)(C), provide financial assistance from funds made available pursuant to section 509(k) in the form of grants or financial assistance agreements on a nonreimbursable basis or contracts— (I) to another Eligible Non-Pueblo Entity to plan, permit, design, engineer, and construct alternative or interim offset infrastructure off Pueblo lands to offset surface water depletion effects on the applicable stream segments in accordance with a proposal from an Eligible Non-Pueblo Entity approved by the State, the Pueblo, and the Secretary; and (II) to the Pueblo to plan, permit, design, engineer, and construct alternative or interim offset infrastructure on Pueblo lands, to be owned and operated by the Pueblo, to offset surface water depletion effects on the applicable stream segments in accordance with a proposal from the Pueblo approved by the State and the Secretary. (ii) Limitation Notwithstanding subsection (b)(2), no non-Federal cost share shall be required for alternative or interim offset infrastructure under clause (i)(II). (B) Effect (i) In general Use of alternative or interim offset infrastructure constructed pursuant to subparagraph (A)(i) shall constitute compliance with requirements in the Settlement Agreement for use of the Mitigation Well System to offset surface water depletions on the applicable stream segments. (ii) Savings provision Nothing in the amendments made by the Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025 precludes agreements among the Pueblo, the Secretary, the State, and affected parties to address depletion offset obligations for the period before the applicable Mitigation Well is fully completed, permitted, and operating. (d)Title to propertyIn no event shall the Commissioner of Reclamation hold title to property acquired or constructed with funding made available pursuant to subsections (c)(2)(A) and (k) of section 509..

6. Disclaimers Nothing in this Act shall be construed to affect— the previous satisfaction of the conditions precedent in subsection (f)(2) of section 509 of the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3128); or the validity of the finding published by the Secretary of the Interior in the Federal Register on October 7, 2016, pursuant to subsection (f)(1) of that section that those conditions precedent were fully satisfied. In this subsection, the terms Partial Final Decree and Settlement Agreement have the meanings given those terms in section 503 of the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3122). Nothing in this Act, the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3122), or the Settlement Agreement shall be construed to require— an amendment of the Settlement Agreement or the Partial Final Decree for the Secretary of the Interior to carry out this Act; or use of the project modification or failure process in Article 13.3 of the Settlement Agreement for alternative or interim offset infrastructure funded under subsection (c)(5) of section 507 of the Taos Pueblo Indian Water Rights Settlement Act (Public Law 111–291; 124 Stat. 3126).