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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3242 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3242
To amend the Taos Pueblo Indian Water Rights Settlement Act to
facilitate implementation of the Taos Pueblo Indian Water Rights
Settlement Agreement, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 20, 2025
Mr. Lujan (for himself and Mr. Heinrich) introduced the following bill;
which was read twice and referred to the Committee on Indian Affairs
_______________________________________________________________________
A BILL
To amend the Taos Pueblo Indian Water Rights Settlement Act to
facilitate implementation of the Taos Pueblo Indian Water Rights
Settlement Agreement, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taos Pueblo Indian Water Rights
Settlement Amendments Act of 2025''.
SEC. 2. DEFINITIONS.
Section 503 of the Taos Pueblo Indian Water Rights Settlement Act
(Public Law 111-291; 124 Stat. 3122) is amended--
(1) in paragraph (1), by striking ``and the New Mexico
Department of Finance and Administration Local Government
Division on behalf of'';
(2) 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;
(3) by inserting after paragraph (2) the following:
``(3) Mitigation well system.--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.''; and
(4) by inserting after paragraph (8) (as so redesignated)
the following:
``(9) Pueblo trust funds.--The 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.''.
SEC. 3. PUEBLO TRUST FUNDS.
(a) In General.--Section 505 of the Taos Pueblo Indian Water Rights
Settlement Act (Public Law 111-291; 124 Stat. 3123) is amended--
(1) by striking the section heading and inserting ``pueblo
trust funds'';
(2) in subsection (a)--
(A) in the subsection heading, by inserting ``of
Taos Pueblo Water Development Fund'' after
``Establishment''; and
(B) in the matter preceding paragraph (1), by
striking ``(referred to in this section as the
`Fund')'';
(3) in subsection (b)--
(A) by striking the subsection heading and
inserting ``Management of Pueblo Trust Funds''; and
(B) by striking ``the Fund'' each place it appears
and inserting ``the Pueblo Trust Funds'';
(4) in subsection (c)--
(A) by striking the subsection heading and
inserting ``Investment of Pueblo Trust Funds'';
(B) in the matter preceding paragraph (1), by
striking ``the Fund'' and inserting ``the Pueblo Trust
Funds''; and
(C) by striking paragraph (3) and inserting the
following:
``(3) the Trust Fund Reform Act.'';
(5) in subsection (d)--
(A) in the subsection heading, by striking ``Fund''
and inserting ``Taos Pueblo Water Development Fund'';
and
(B) by striking ``the Fund'' and inserting ``the
Taos Pueblo Water Development Fund established by
subsection (a)'';
(6) in subsection (e)--
(A) by striking ``the Fund'' each place it appears
and inserting ``the Pueblo Trust Funds''; and
(B) in paragraph (2), by striking ``specified in
subsection (a)'' and inserting ``described in
subsections (a), (h)(2), and (i)(2), as applicable'';
(7) 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)'';
(8) in subsection (g), by striking ``the Fund'' and
inserting ``the Pueblo Trust Funds''; and
(9) by adding at the end the following:
``(h) Taos Pueblo Groundwater Development Supplemental Trust
Fund.--
``(1) Establishment.--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--
``(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 funds.--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.
``(3) Investment.--On deposit, the Secretary shall invest
amounts in the Groundwater Development Supplemental Trust Fund
in accordance with subsection (c).
``(4) Investment earnings.--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).
``(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) Management.--The Secretary shall manage the
Groundwater Development Supplemental Trust Fund in accordance
with subsection (b).
``(7) Conditions for expenditure and withdrawal.--All
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) Establishment.--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--
``(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 funds.--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.
``(3) Investment.--On deposit, the Secretary shall invest
amounts in the Surface Water Sharing Supplemental Trust Fund in
accordance with subsection (c).
``(4) Investment earnings.--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).
``(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) Management.--The Secretary shall manage the Surface
Water Sharing Supplemental Trust Fund in accordance with
subsection (b).
``(7) Conditions for expenditure and withdrawal.--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).''.
(b) Clerical Amendment.--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:
``Sec. 505. Pueblo Trust Funds.''.
SEC. 4. MUTUAL-BENEFIT PROJECTS.
Section 507 of the Taos Pueblo Indian Water Rights Settlement Act
(Public Law 111-291; 124 Stat. 3126) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``in subsection
(a)'' and inserting ``under subsections (a) and (c)'';
(B) in paragraph (2), by striking ``shall'' and
inserting ``authorized under subsections (a) and (c)
shall''; and
(C) 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
(2) by adding at the end the following:
``(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 Property.--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.''.
SEC. 5. FUNDING.
Section 509 of the Taos Pueblo Indian Water Rights Settlement Act
(Public Law 111-291; 124 Stat. 3128) is amended by adding at the end
the following:
``(k) Supplemental Funding for Mutual-Benefit Projects.--
``(1) Mandatory appropriation.--Out of any funds in the
Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary to award funding
pursuant to section 507(c) $161,000,000, as adjusted pursuant
to paragraph (2).
``(2) Fluctuation in costs.--
``(A) In general.--The amount under paragraph (1)
shall be adjusted by such amounts as may be justified--
``(i) by reason of changes since July 2025
in construction costs, as indicated by the
Bureau of Reclamation Construction Cost Index-
Composite Trend; and
``(ii) to address construction cost changes
necessary to account for unforeseen market
volatility that may not otherwise be captured
by engineering cost indices applicable to the
types of construction involved, as determined
by the Secretary, including repricing
applicable to the types of construction and
current industry standards involved.
``(B) Repetition.--The adjustment process under
this paragraph 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 paragraph for any increment of
funding shall end on the date on which the relevant
funding is awarded, but in no event shall funds be
indexed later than 10 years after the date of enactment
of the Taos Pueblo Indian Water Rights Settlement
Amendments Act of 2025.
``(3) Deposit in fund.--The Secretary shall deposit the
funds made available pursuant to paragraph (1) in a
noninterest-bearing fund, to be known as the `Taos Settlement
Mutual-Benefit Projects Supplemental Fund', to be established
in the Treasury of the United States so that such funds may be
made available to carry out section 507(c).
``(l) Taos Pueblo Groundwater Development Supplemental Trust
Fund.--
``(1) Mandatory appropriation.--Out of any funds in the
Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary for deposit in the
Taos Pueblo Groundwater Development Supplemental Trust Fund
established by section 505(h) (referred to in this subsection
as the `Groundwater Development Supplemental Trust Fund')
$190,000,000, as adjusted pursuant to paragraph (2).
``(2) Fluctuation in costs.--
``(A) In general.--The amount under paragraph (1)
shall be adjusted by such amounts as may be justified--
``(i) by reason of changes since July 2025
in construction costs, as indicated by the
Bureau of Reclamation Construction Cost Index-
Composite Trend; and
``(ii) to address construction cost changes
necessary to account for unforeseen market
volatility that may not otherwise be captured
by engineering cost indices applicable to the
types of construction involved, as determined
by the Secretary, including repricing
applicable to the types of construction and
current industry standards involved.
``(B) Repetition.--The adjustment process under
this paragraph 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 paragraph for any increment of
funding shall end on the date on which the amount under
paragraph (1) is deposited in the Groundwater
Development Supplemental Trust Fund.
``(m) Taos Pueblo Surface Water Sharing Supplemental Trust Fund.--
``(1) Mandatory appropriation.--Out of any funds in the
Treasury not otherwise appropriated, the Secretary of the
Treasury shall transfer to the Secretary for deposit in the
Taos Pueblo Surface Water Sharing Supplemental Trust Fund
established by section 505(i) (referred to in this subsection
as the `Surface Water Sharing Supplemental Trust Fund')
$16,000,000, as adjusted pursuant to paragraph (2).
``(2) Fluctuation in costs.--
``(A) In general.--The amount under paragraph (1)
shall be adjusted by such amounts as may be justified--
``(i) by reason of changes since July 2025
in construction costs, as indicated by the
Bureau of Reclamation Construction Cost Index-
Composite Trend; and
``(ii) to address construction cost changes
necessary to account for unforeseen market
volatility that may not otherwise be captured
by engineering cost indices applicable to the
types of construction involved, as determined
by the Secretary, including repricing
applicable to the types of construction and
current industry standards involved.
``(B) Repetition.--The adjustment process under
this paragraph 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 paragraph for any increment of
funding shall end on the date on which the amount under
paragraph (1) is deposited in the Surface Water Sharing
Supplemental Trust Fund.''.
SEC. 6. DISCLAIMERS.
(a) Conditions Precedent.--Nothing in this Act shall be construed
to affect--
(1) 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
(2) 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.
(b) Settlement Agreement; Partial Final Decree.--
(1) Definitions.--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).
(2) Disclaimers.--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--
(A) an amendment of the Settlement Agreement or the
Partial Final Decree for the Secretary of the Interior
to carry out this Act; or
(B) 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).
<all>
Introduced in Senate
Read twice and referred to the Committee on Indian Affairs.
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