S. 562 — Rio San José and Rio Jemez Water Settlements Act of 2025

This section establishes the purposes of the title as (1) achieving a fair, equitable, and final settlement of water rights claims in the Rio San José Stream System general stream adjudication (“State of New Mexico, ex rel. State Engineer v. Kerr-McGee, et al.,” Nos. D–1333–CV–1983–00190 and D–1333–CV–1983–00220 (consolidated), Thirteenth Judicial District Court, New Mexico) for the Pueblos of Acoma and Laguna and the United States as trustee; (2) authorizing, ratifying, and confirming the related agreement to the extent consistent with the title; (3) directing the Secretary to execute the agreement and take necessary actions to implement it; and (4) authorizing funds for implementation.

This section defines terms used in this title, including "(1) Acequia," meaning nine specified irrigation districts and associations; "(2) Agreement," meaning the Rio San José Stream System Water Rights Local Settlement Agreement dated May 13, 2022, and amendments; "(10) Pueblo," meaning the Pueblo of Acoma or Pueblo of Laguna; "(11) Pueblo Land," meaning trust or owned lands of the Pueblos in the Rio San José Stream System, Rio Salado Basin (for Acoma), or Rio Puerco Basin (for Laguna); "(13) Pueblo Water Rights," meaning quantified rights of the Pueblos in those areas as set forth in the Agreement, section 104, and a Partial Final Judgment and Decree; and basin names defined by U.S. Geological Survey Hydrologic Unit Codes.

This section ratifies a specified Agreement (as modified by this title), authorizes and directs the Secretary of the Interior to execute it, and permits the Secretary to approve consistent post-execution modifications without further congressional approval under 25 U.S.C. 177 (i.e., the statute invalidating conveyances of Indian lands absent a constitutional treaty or congressional ratification). (Thus, the Agreement—likely resolving Pueblo land claims—becomes legally valid.) It requires the Secretary and Pueblos, in implementing the Agreement and title, to comply with the Endangered Species Act of 1973, National Environmental Policy Act of 1969 (NEPA), and other federal environmental laws; directs the Pueblos to prepare necessary environmental documents subject to the Secretary's independent evaluation, accuracy responsibility, and approval; deems Agreement execution not a major federal action under NEPA; and allocates compliance costs to Pueblo trust funds (except for federal review or inherently federal functions borne by the Secretary).

This section declares the Pueblo Water Rights held in trust by the United States on behalf of the Pueblos pursuant to the Agreement and this title; protects those rights from forfeiture, abandonment, loss through non-use, or other operation of law (including certain state-law based rights acquired by a Pueblo or the United States after the date for inclusion in the Partial Final Judgment and Decree); and subjects their use to the Agreement and this title. The section excludes water rights or uses on Allotments from the Pueblo Water Rights; authorizes the Pueblos to allocate, distribute, and lease the Pueblo Water Rights for use on Pueblo Land or, with Secretary approval, off Pueblo Land, subject to the Agreement, this title, and applicable federal law; and requires the Pueblos not to object to quantification of reasonable domestic, stock, and irrigation water uses on Allotments (including existing uses as of enactment and decreed rights). Further, the section prohibits permanent alienation of the Pueblo Water Rights, provides that specified allocations, leases, or other arrangements satisfy applicable federal law requirements, and reiterates protection from forfeiture due to non-use.

This section establishes three settlement trust funds—the Pueblo of Acoma Settlement Trust Fund, the Pueblo of Laguna Settlement Trust Fund, and the shared Acomita Reservoir Works Trust Fund—managed, invested, and distributed by the Secretary of the Interior consistent with the first section of the Act of June 24, 1938 (25 U.S.C. 162a), which authorizes the deposit and management of tribal trust funds in banks; the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.); and this section, with amounts deposited pursuant to section 106(a) plus investment earnings to remain available until expended, withdrawn, or reverted to the Treasury general fund. The section requires subaccounts in each Pueblo fund for (1) water rights settlements, (2) water infrastructure operations and maintenance, and (3) feasibility studies. Amounts in the funds generally become available to the Pueblos on the enforceability date of the settlement agreement, except that (1) feasibility studies subaccount funds are available upon deposit; (2) Acomita Reservoir Works Trust Fund amounts are available upon deposit; and (3) up to $15 million from each Pueblo's water rights settlement subaccount is available upon deposit for installing groundwater wells on Pueblo lands to meet immediate domestic, commercial, municipal, and industrial needs (with associated environmental, cultural, and historical compliance). The section authorizes Pueblo withdrawals from the funds either (1) under the American Indian Trust Fund Management Reform Act of 1994 upon Secretary approval of a tribal management plan requiring uses consistent with this title or (2) pursuant to a Secretary-approved expenditure plan detailing reasonable uses consistent with this title, with Secretary enforcement authority in both cases.

This section provides mandatory appropriations from the Treasury not otherwise appropriated to specified trust fund accounts established under section 105 for the Pueblo of Acoma and Pueblo of Laguna water rights settlements, as follows: (1) Pueblo of Acoma Settlement Trust Fund—$296 million to the Water Rights Settlement Account, $14 million to the Water Infrastructure Operations and Maintenance Account, and $1.75 million to the Feasibility Studies Settlement Account; (2) Pueblo of Laguna Settlement Trust Fund—$464 million to the Water Rights Settlement Account, $26 million to the Water Infrastructure Operations and Maintenance Account, and $3.25 million to the Feasibility Studies Settlement Account; and (3) $45 million to the Acomita Reservoir Works Trust Fund. All amounts remain available until expended, withdrawn, or reverted to the general fund of the Treasury. This section requires adjustments to these appropriations for ordinary cost fluctuations (per the Bureau of Reclamation Construction Cost Index–Composite Trend, from October 1, 2021, to deposit), construction cost changes due to market volatility, repeated until fully appropriated. This section requires the state, pursuant to the settlement agreement, to contribute a total of $36 million (as adjusted for inflation per the agreement)—$23.5 million for specified water reuse, conservation, and augmentation projects; $12 million for signatory acequias and offset projects; and $500,000 to mitigate impacts on non-Pueblo groundwater rights.

This section establishes the enforceability date of this title as the date on which the Secretary publishes in the Federal Register a statement of findings that—(1) the Agreement has been amended to conform with this title; (2) the amended Agreement has been executed by all parties, including the United States; (3) all amounts appropriated under section 106 have been deposited in the Pueblo Trust Fund; (4) the State has provided funding under section 106(c)(3) into appropriate accounts, provided funding under section 106(c)(1) and (2) into appropriate accounts or entered funding agreements with intended beneficiaries, and enacted legislation authorizing leases of a Pueblo Water Right for up to 99 years, including renewals; (5) the Decree Court has approved the Agreement and entered a Partial Final Judgment and Decree; and (6) the Pueblos and the Secretary have executed waivers and releases under section 108.

This section requires the Pueblos and the United States, acting as trustee for the Pueblos, to execute waivers and releases of all claims for water rights within the Rio San José Stream System asserted or that could have been asserted on or before the enforceability date (except to the extent recognized in the settlement agreement and this title), as well as claims for damages, losses, or injuries to such water rights against parties to the agreement (including signatory acequias). It further requires the Pueblos to waive claims against the United States arising before the enforceability date relating to (1) such water rights asserted by the United States as trustee; (2) foregone benefits from non-Pueblo water use; (3) damage to water, land, or natural resources due to water loss; (4) failures to maintain irrigation systems; (5) failures to provide water delivery systems; (6) damage from irrigation projects; (7) failures to improve dam safety; (8) litigation costs; and (9) negotiation of the agreement and title. These waivers take effect on the enforceability date but reserve claims for (1) post-enforceability enforcement of recognized rights; (2) water quality and environmental claims under specified federal laws (i.e., CERCLA, Safe Drinking Water Act, Clean Water Act); (3) post-enactment water rights; (4) non-water-related damages to land or resources; (5) water claims in other basins; (6) non-water claims from the Jackpile-Paguate Uranium Mine; and (7) unspecified retained rights. The section further specifies that neither the agreement nor this title affects governmental sovereignty (except as provided in section 110) or the United States' sovereign activities under federal environmental laws.

This section provides that the benefits under this title constitute complete replacement of, substitution for, and satisfaction of any claims of the Pueblos against the United States that are waived and released pursuant to section 108(b).

This section provides the consent of the United States—with the consent of each Pueblo under Article 11.5 of the Agreement, effective on the Enforceability Date—to jurisdiction in the District Court for the Thirteenth Judicial District of New Mexico (with appeals to the New Mexico Court of Appeals and Supreme Court under state law) solely for judicial review, based on the Pueblo's administrative record, of Pueblo Water Right Permit decisions under Articles 11.4 and 11.5 of the Agreement. Such review is limited to determining whether the Pueblo's decision (1) is supported by substantial evidence; (2) is arbitrary, capricious, or contrary to law; (3) complies with the Agreement or Partial Final Judgment and Decree; or (4) reflects fraud or action outside the Pueblo's authority. The section further requires state courts to give full faith and credit to qualifying Pueblo Water Code or law provisions under Article 11 of the Agreement; directs state courts to certify non-express Pueblo law interpretations to the Pueblo court (except for Article 11.6 standards); and preserves the Decree Court's jurisdiction to interpret and enforce the Agreement.

This section includes several savings provisions: (1) stating that nothing in this title waives the sovereign immunity of the United States; (2) providing that nothing in this title quantifies or diminishes any land or water right, or any claim or entitlement to land or water, of an Indian tribe, band, or community other than the Pueblos; (3) providing that nothing in this title quantifies or diminishes any water right, or any claim or entitlement to water, of an allottee; (4) stating that nothing in this title affects any provision of law (including regulations) in effect on the day before enactment with respect to pre-enforcement review of any federal environmental enforcement action; and (5) providing that this title controls in the event of a conflict between the Agreement and this title.

This section provides that the United States is not liable for any failure to carry out obligations or activities authorized by this title—including any under the Agreement—if Congress does not expressly provide adequate appropriations for the title's purposes.

This section states the purposes of this title, which are (1) to achieve a fair, equitable, and final settlement of all claims to water rights in the Jemez River Stream System in New Mexico for the Pueblo of Jemez, the Pueblo of Zia, and the United States (acting as trustee for the Pueblos); (2) to authorize, ratify, and confirm the Agreement entered into by the Pueblos, the State of New Mexico, and other parties, to the extent consistent with this title; (3) to authorize and direct the Secretary of the Interior to execute the Agreement and take necessary actions to implement it in accordance with this title; and (4) to authorize funds necessary to implement the Agreement and this title.

This section defines 12 terms used in this title for the Pueblos of Jemez and Zia water rights settlement in the Jemez River Stream System, including "Adjudication" (i.e., U.S. District Court for the District of New Mexico case no. 83-cv-01041 involving the United States, the state of New Mexico, and the Pueblos); "Agreement" (i.e., the Pueblos of Jemez and Zia Water Rights Settlement Agreement dated May 11, 2022, and amendments); "Partial Final Judgment and Decree"; "Pueblo" and "Pueblos"; "Pueblo Land" (i.e., trust lands, certain owned or acquired lands within specified boundaries); "Pueblo Water Rights"; and "Pueblo Trust Fund."

This section ratifies an Agreement between the Pueblos and the Secretary of the Interior (except as modified by this title and to the extent the Agreement does not conflict with this title), authorizes the Secretary to execute the Agreement and approve consistent modifications without further congressional approval under 25 U.S.C. 177 (the statute generally prohibiting conveyances of tribal lands absent a treaty or congressional ratification), and establishes environmental compliance procedures for implementation. Those procedures require the Secretary and Pueblos to comply with the Endangered Species Act of 1973, National Environmental Policy Act of 1969 (NEPA), and other applicable federal environmental laws; direct the Pueblos to prepare necessary environmental documents (which the Secretary must independently evaluate and for which the Secretary bears responsibility); provide that execution of the Agreement does not constitute a major federal action under NEPA; and allocate compliance costs to Pueblo Trust Funds (except for federal approval, review, or inherently federal functions borne by the Secretary).

This section declares the Pueblo Water Rights held in trust by the United States on behalf of the Pueblos pursuant to the Agreement and this title; protects such rights—including state-law based water rights subsequently acquired by a Pueblo or the United States on its behalf—from forfeiture, abandonment, loss through non-use, or other operation of law; and subjects all uses to the Agreement and this title. It further authorizes the Pueblos to allocate, distribute, and lease the rights for use on Pueblo land consistent with the Agreement, this title, and applicable federal law and, with Secretary approval, for use off Pueblo land; prohibits permanent alienation of the rights; deems such allocations, distributions, leases, or other arrangements to satisfy other federal law requirements; and reiterates protection from forfeiture due to non-use by any water user.

This section establishes two settlement trust funds—the Pueblo of Jemez Settlement Trust Fund and the Pueblo of Zia Settlement Trust Fund—to receive deposits pursuant to section 206(a) plus any investment earnings (including interest), to be managed, invested, and distributed by the Secretary consistent with the first section of the Act of June 24, 1938 (25 U.S.C. 162a), the American Indian Trust Fund Management Reform Act of 1994 (25 U.S.C. 4001 et seq.), and this section, for purposes of this title. Amounts in each trust fund, including investment earnings, become available to the respective Pueblo on the enforceability date, subject to this section's requirements; notwithstanding this availability, $25 million from each fund is available for (A) developing economic water development plans, (B) preparing environmental compliance documents, (C) preparing water project engineering designs, (D) establishing and operating a water resource department, (E) installing supplemental irrigation groundwater wells, and (F) developing water measurement and reporting water use plans. Each Pueblo may withdraw funds from its trust fund by (1) submitting an approved tribal management plan under the American Indian Trust Fund Management Reform Act of 1994, requiring expenditures consistent with this title, or (2) submitting an approved expenditure plan detailing reasonable uses consistent with this title; the Secretary may enforce compliance through judicial and administrative actions. This section limits judicial review of the Secretary's approval decisions for tribal management or expenditure plans to the Administrative Procedure Act and authorizes trust fund amounts for (1) planning, permitting, designing, engineering, constructing, reconstructing, replacing, rehabilitating, operating, or repairing water production, treatment, or delivery infrastructure (including for domestic/municipal use, on-farm improvements, or wastewater); (2) watershed protection/enhancement, agricultural support, Pueblo community welfare/economic development, and Agreement implementation costs; and (3) related water production/delivery activities.

This section provides mandatory appropriations from the Treasury of $290 million to the Pueblo of Jemez Settlement Trust Fund and $200 million to the Pueblo of Zia Settlement Trust Fund, both to remain available until expended, withdrawn, or reverted. The section authorizes adjustments to these amounts for ordinary cost fluctuations (per the Bureau of Reclamation Construction Cost Index–Composite Trend), construction cost changes due to market volatility, with indexing from October 1, 2021, to the deposit date and repetition of adjustments until fully appropriated. (Thus, the funds support implementation of the Pueblos' water rights settlement, including infrastructure projects.) It further requires the state to contribute (1) $3.4 million (inflation-adjusted per the settlement agreement) to the San Ysidro Community Ditch Association for capital and operating expenses of the mutual benefit Augmentation Project; (2) $16.159 million (inflation-adjusted per the agreement) for Jemez River Basin Water Users Coalition acequia ditch improvements; and (3) $500,000 (inflation-adjusted) to mitigate impairment to non-Pueblo domestic and livestock groundwater rights from new Pueblo water use.

This section establishes the enforceability date of the Agreement as the date on which the Secretary publishes in the Federal Register a statement of findings certifying that seven conditions have been met: (1) amendment of the Agreement to conform with this title; (2) execution of the amended Agreement by all parties, including the United States; (3) approval of the Agreement by the U.S. District Court for the District of New Mexico, along with entry of a Partial Final Judgment and Decree; (4) deposit of all amounts appropriated under §206 into applicable Pueblo Trust Fund accounts; (5) specified actions by the State, including deposits or agreements for funding under §206(c), and enactment of legislation authorizing leases of Pueblo Water Rights for up to 99 years (including renewals); and (6) execution by the Pueblos and the Secretary of waivers and releases under §208(a) and (b), as well as all waivers and releases under §208.

This section requires the Pueblos and the United States, acting as trustee for the Pueblos, to execute waivers and releases of all claims for water rights within the Jemez River Stream System (i.e., the area subject to ongoing state court adjudication) asserted or that could have been asserted on or before the Enforceability Date, except to the extent recognized in the Agreement and this title, as well as related claims for damages, losses, or injuries to such water rights against parties to the Agreement (including acequia members and parciantes). It further requires each Pueblo to waive claims against the United States arising before the Enforceability Date for (1) water rights the United States asserted or could have asserted as trustee; (2) foregone benefits from non-Pueblo water use; (3) damage to water, land, or natural resources due to water loss; (4) failure to provide water delivery systems on Pueblo Land; (5) damage from irrigation projects; (6) failure to maintain irrigation systems; (7) failure to improve dam safety; (8) litigation costs; and (9) negotiation of the Agreement and this title. The waivers take effect on the Enforceability Date but retain Pueblo and U.S. claims for (1) enforcement of or post-Enforceability accrual under recognized rights; (2) water quality violations under specified federal environmental laws (i.e., CERCLA, Safe Drinking Water Act, Clean Water Act); (3) post-enactment water rights; (4) non-water-related land or resource damage; (5) other unwaived rights; and (6) losses outside the Jemez River Stream System. Subsection (e) clarifies that the Agreement and title do not affect governmental sovereignty, U.S. sovereign activities under federal environmental laws, or the U.S. trustee role.

This section provides that the benefits under this title constitute complete replacement of, substitution for, and full satisfaction of any claims of the Pueblos against the United States waived and released pursuant to section 208(b).

This section includes four miscellaneous provisions: (1) stating that nothing in this title waives the sovereign immunity of the United States; (2) clarifying that nothing in this title quantifies or diminishes any land or water right, or any claim or entitlement to land or water, of an Indian Tribe, band, or community other than the Pueblos; (3) providing that nothing in this title affects any provision of law (including regulations) in effect on the day before enactment with respect to pre-enforcement review of any Federal environmental enforcement action; and (4) specifying that, in the event of a conflict between the Agreement and this title, this title controls.

This section limits U.S. liability for failing to carry out any obligation or activity authorized by this title—including under the Agreement—if Congress does not expressly provide adequate appropriations for those purposes.