H.R. 6205

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6205 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 6205

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 HOUSE OF REPRESENTATIVES

November 20, 2025

Ms. Leger Fernandez introduced the following bill; which was referred 
to the Committee on Natural Resources

_______________________________________________________________________

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).
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