Taos Pueblo Indian Water Rights Settlement Amendments Act of 2025

This bill amends the Taos Pueblo Indian Water Rights Settlement Act to help implement the Taos Pueblo Indian Water Rights Settlement Agreement by updating definitions, creating new trust funds, authorizing supplemental funding for mutual-benefit projects, and clarifying disclaimers.

Sec. 2, Definitions: The bill updates definitions in the original act by removing a reference to the New Mexico Department of Finance and Administration Local Government Division, adding a definition for "Mitigation Well System" (a system of wells, pipelines, and treatment infrastructure to offset surface water depletion), and adding a definition for "Pueblo Trust Funds" which includes three specific funds: the Taos Pueblo Water Development Fund, the Taos Pueblo Groundwater Development Supplemental Trust Fund, and the Taos Pueblo Surface Water Sharing Supplemental Trust Fund.

Sec. 3, Pueblo Trust Funds: This section amends section 505 of the original act to rename the section heading to "Pueblo Trust Funds" and establishes two new trust funds within the Treasury: the Taos Pueblo Groundwater Development Supplemental Trust Fund (for groundwater production, treatment, or delivery infrastructure) and the Taos Pueblo Surface Water Sharing Supplemental Trust Fund (for surface water sharing infrastructure and gages). Both funds consist of appropriated amounts and interest earnings, are managed by the Secretary, and are available to the Pueblo for expenditure after certain requirements are met.

Sec. 4, Mutual-Benefit Projects: This section amends section 507 of the original act to add a new subsection (c) for supplemental funding for mutual-benefit projects. The Secretary, through the Commissioner of Reclamation, shall provide financial assistance from funds made available under section 509(k) to eligible non-Pueblo entities for planning, permitting, designing, engineering, and constructing mutual-benefit projects, including water treatment. It sets deadlines for expenditure and construction completion, allows for extensions and termination for noncompliance, and provides for alternative or interim offset infrastructure if certain conditions are met. It also adds a subsection (d) stating that the Commissioner shall not hold title to property acquired or constructed with such funding.

Sec. 5, Funding: This section adds new subsections to section 509 of the original act. Subsection (k) authorizes a mandatory appropriation of $161,000,000 (adjusted for construction cost changes since July 2025) for supplemental funding for mutual-benefit projects, to be deposited in a noninterest-bearing fund called the Taos Settlement Mutual-Benefit Projects Supplemental Fund. Subsection (l) authorizes a mandatory appropriation of $190,000,000 (adjusted for cost changes) for the Taos Pueblo Groundwater Development Supplemental Trust Fund. Subsection (m) authorizes a mandatory appropriation of $16,000,000 (adjusted for cost changes) for the Taos Pueblo Surface Water Sharing Supplemental Trust Fund.

Sec. 6, Disclaimers: This section states that nothing in this Act affects the previous satisfaction of conditions precedent or the validity of the Secretary's 2016 finding that those conditions were fully satisfied. It also clarifies that nothing in this Act, the original settlement act, or the Settlement Agreement requires an amendment of the Settlement Agreement or the Partial Final Decree for the Secretary to carry out this Act, or requires use of the project modification or failure process in the Settlement Agreement for alternative or interim offset infrastructure funded under the new section 507(c)(5).