ALLOCATION OF CENTRAL ARIZONA PROJECT WATER.

SEC. 104. ALLOCATION OF CENTRAL ARIZONA PROJECT WATER.(a) Non-Indian Agricultural Priority Water.—(1) Reallocation to arizona indian tribes.—(A) In general.—The Secretary shall reallocate 197,500 acre-feet of agricultural priority water made available pursuant to the master agreement for use by Arizona Indian tribes, of which—(i) 102,000 acre-feet shall be reallocated to the Gila River Indian Community;(ii) 28,200 acre-feet shall be reallocated to the Tohono O’odham Nation; and(iii) subject to the conditions specified in subparagraph (B), 67,300 acre-feet shall be reallocated to Arizona Indian tribes.(B) Conditions.—The reallocation of agricultural priority water under subparagraph (A)(iii) shall be subject to the conditions that—(i) such water shall be used to resolve Indian water claims in Arizona, and may be allocated by the Secretary to Arizona Indian Tribes in fulfillment of future Arizona Indian water rights settlement agreements approved by an Act of Congress. In the absence of an Arizona Indian water rights settlement that is approved by an Act of Congress after the date of enactment of this Act, the Secretary shall not allocate any such water until December 31, 2030. Any allocations made by the Secretary after such date shall be accompanied by a certification that the Secretary is making the allocation in order to assist in the resolution of an Arizona Indian water right claim. Any such water allocated to an Arizona Indian Tribe pursuant to a water delivery contract with the Secretary under this clause shall be counted on an acre-foot per acre-foot basis against any claim to water for that Tribe’s reservation;(ii) notwithstanding clause (i), the Secretary shall retain 6,411 acre-feet of water for use for a future water rights settlement agreement approved by an Act of Congress that settles the Navajo Nation’s claims to water in Arizona. If Congress does not approve 118 STAT. 3488 this settlement before December 31, 2030, the 6,411 acre-feet of CAP water shall be available to the Secretary under clause (i); and (iii) the agricultural priority water shall not, without specific authorization by Act of Congress, be leased, exchanged, forborne, or otherwise transferred by an Arizona Indian tribe for any direct or indirect use outside the reservation of the Arizona Indian tribe.(C) Report.—The Secretary, in consultation with Arizona Indian tribes and the State, shall prepare a report for Congress by December 31, 2016, that assesses whether the potential benefits of subparagraph (A) are being conveyed to Arizona Indian tribes pursuant to water rights settlements enacted subsequent to this Act. For those Arizona Indian tribes that have not yet settled water rights claims, the Secretary shall describe whether any active negotiations are taking place, and identify any critical water needs that exist on the reservation of each such Arizona Indian tribe. The Secretary shall also identify and report on the use of unused quantities of agricultural priority water made available to Arizona Indian tribes under subparagraph (A).(2) Reallocation to the arizona department of water resources.—(A) In general.—Subject to subparagraph (B) and subparagraph 9.3 of the master agreement, the Secretary shall reallocate up to 96,295 acre-feet of agricultural priority water made available pursuant to the master agreement to the Arizona Department of Water Resources, to be held under contract in trust for further allocation under subparagraph (C).(B) Required documentation.—The reallocation of agricultural priority water under subparagraph (A) is subject to the condition that the Secretary execute any appropriate documents to memorialize the reallocation, including—(i) an allocation decision; and(ii) a contract that prohibits the direct use of the agricultural priority water by the Arizona Department of Water Resources.(C) Further allocation.—With respect to the allocation of agricultural priority water under subparagraph (A)—(i) before that water may be further allocated—(I) the Director shall submit to the Secretary, and the Secretary shall receive, a recommendation for reallocation;(II) as soon as practicable after receiving the recommendation, the Secretary shall carry out all necessary reviews of the proposed reallocation, in accordance with applicable Federal law; and(III) if the recommendation is rejected by the Secretary, the Secretary shall—(aa) request a revised recommendation from the Director; and(bb) proceed with any reviews required under subclause (II); and118 STAT. 3489(ii) as soon as practicable after the date on which agricultural priority water is further allocated, the Secretary shall offer to enter into a subcontract for that water in accordance with paragraphs (1) and (2) of subsection (d).(D) Master agreement.—The reallocation of agricultural priority water under subparagraphs (A) and (C) is subject to the master agreement, including certain rights provided by the master agreement to water users in Pinal County, Arizona.(3) Priority.—The agricultural priority water reallocated under paragraphs (1) and (2) shall be subject to the condition that the water retain its non-Indian agricultural delivery priority.(b) Uncontracted Central Arizona Project Municipal and Industrial Priority Water.—(1) Reallocation.—The Secretary shall, on the recommendation of the Director, reallocate 65,647 acre-feet of uncontracted municipal and industrial water, of which—(A) 285 acre-feet shall be reallocated to the town of Superior, Arizona;(B) 806 acre-feet shall be reallocated to the Cave Creek Water Company;(C) 1,931 acre-feet shall be reallocated to the Chaparral Water Company;(D) 508 acre-feet shall be reallocated to the town of El Mirage, Arizona;(E) 7,211 acre-feet shall be reallocated to the city of Goodyear, Arizona;(F) 147 acre-feet shall be reallocated to the H2O Water Company;(G) 7,115 acre-feet shall be reallocated to the city of Mesa, Arizona;(H) 5,527 acre-feet shall be reallocated to the city of Peoria, Arizona;(I) 2,981 acre-feet shall be reallocated to the city of Scottsdale, Arizona;(J) 808 acre-feet shall be reallocated to the AVRA Cooperative;(K) 4,986 acre-feet shall be reallocated to the city of Chandler, Arizona;(L) 1,071 acre-feet shall be reallocated to the Del Lago (Vail) Water Company;(M) 3,053 acre-feet shall be reallocated to the city of Glendale, Arizona;(N) 1,521 acre-feet shall be reallocated to the Community Water Company of Green Valley, Arizona;(O) 4,602 acre-feet shall be reallocated to the Metropolitan Domestic Water Improvement District;(P) 3,557 acre-feet shall be reallocated to the town of Oro Valley, Arizona;(Q) 8,206 acre-feet shall be reallocated to the city of Phoenix, Arizona;(R) 2,876 acre-feet shall be reallocated to the city of Surprise, Arizona;(S) 8,206 acre-feet shall be reallocated to the city of Tucson, Arizona; and118 STAT. 3490(T) 250 acre-feet shall be reallocated to the Valley Utilities Water Company.(2) Subcontracts.—(A) In general.—As soon as practicable after the date of enactment of this Act, and in accordance with paragraphs (1) and (2) of subsection (d) and any other applicable Federal laws, the Secretary shall offer to enter into subcontracts for the delivery of the uncontracted municipal and industrial water reallocated under paragraph (1).(B) Revised recommendation.—If the Secretary is precluded under applicable Federal law from entering into a subcontract with an entity identified in paragraph (1), the Secretary shall—(i) request a revised recommendation from the Director; and(ii) on receipt of a recommendation under clause (i), reallocate and enter into a subcontract for the delivery of the water in accordance with subparagraph (A).(c) Limitations.—(1) Amount.—(A) In general.—The total amount of entitlements under long-term contracts (as defined in the repayment stipulation) for the delivery of Central Arizona Project water in the State shall not exceed 1,415,000 acre-feet, of which—(i) 650,724 acre-feet shall be—(I) under contract to Arizona Indian tribes; or(II) available to the Secretary for allocation to Arizona Indian tribes; and(ii) 764,276 acre-feet shall be under contract or available for allocation to—(I) non-Indian municipal and industrial entities;(II) the Arizona Department of Water Resources; and(III) non-Indian agricultural entities.(B) Exception.—Subparagraph (A) shall not apply to Central Arizona Project water delivered to water users in Arizona in exchange for Gila River water used in New Mexico as provided in section 304 of the Colorado River Basin Project Act (43 U.S.C. 1524) (as amended by section 212).(2) Transfer.—(A) In general.—Except pursuant to the master agreement, Central Arizona Project water may not be transferred from—(i) a use authorized under paragraph (1)(A)(i) to a use authorized under paragraph (1)(A)(ii); or(ii) a use authorized under paragraph (1)(A)(ii) to a use authorized under paragraph (1)(A)(i).(B) Exceptions.—(i) Leases.—A lease of Central Arizona Project water by an Arizona Indian tribe to an entity described in paragraph (1)(A)(ii) under an Indian water rights settlement approved by an Act of Congress shall not 118 STAT. 3491 be considered to be a transfer for purposes of subparagraph (A).(ii) Exchanges.—An exchange of Central Arizona Project water by an Arizona Indian tribe to an entity described in paragraph (1)(A)(ii) shall not be considered to be a transfer for purposes of subparagraph (A).(iii) Notwithstanding subparagraph (A), up to 17,000 acre-feet of CAP municipal and industrial water under the subcontract among the United States, the Central Arizona Water Conservation District, and Asarco, subcontract No. 3–07–30–W0307, dated November 7, 1993, may be reallocated to the Community on execution of an exchange and lease agreement among the Community, the United States, and Asarco.(d) Central Arizona Project Contracts and Subcontracts.—(1) In general.—Notwithstanding section 6 of the Reclamation Project Act of 1939 (43 U.S.C. 485e), and paragraphs (2) and (3) of section 304(b) of the Colorado River Basin Project Act (43 U.S.C. 1524(b)), as soon as practicable after the date of enactment of this Act, the Secretary shall offer to enter into subcontracts or to amend all Central Arizona Project contracts and subcontracts in effect as of that date in accordance with paragraph (2).(2) Requirements.—All subcontracts and amendments to Central Arizona Project contracts and subcontracts under paragraph (1)—(A) shall be for permanent service (within the meaning of section 5 of the Boulder Canyon Project Act of 1928 (43 U.S.C. 617d));(B) shall have an initial delivery term that is the greater of—(i) 100 years; or(ii) a term—(I) authorized by Congress; or(II) provided under the appropriate Central Arizona Project contract or subcontract in existence on the date of enactment of this Act;(C) shall conform to the shortage sharing criteria described in paragraph 5.3 of the Tohono O’odham settlement agreement;(D) shall include the prohibition and exception described in subsection (e); and(E) shall not require—(i) that any Central Arizona Project water received in exchange for effluent be deducted from the contractual entitlement of the CAP contractor or CAP subcontractor; or(ii) that any additional modification of the Central Arizona Project contracts or subcontracts be made as a condition of acceptance of the subcontract or amendments.(3) Applicability.—This subsection does not apply to—(A) a subcontract for non-Indian agricultural use; or(B) a contract executed under paragraph 5(d) of the repayment stipulation.(e) Prohibition on Transfer.—118 STAT. 3492(1) In general.—Except as provided in paragraph (2), no Central Arizona Project water shall be leased, exchanged, forborne, or otherwise transferred in any way for use directly or indirectly outside the State.(2) Exceptions.—Central Arizona Project water may be—(A) leased, exchanged, forborne, or otherwise transferred under an agreement with the Arizona Water Banking Authority that is in accordance with part 414 of title 43, Code of Federal Regulations; and(B) delivered to users in Arizona in exchange for Gila River water used in New Mexico as provided in section 304 of the Colorado River Basin Project Act (43 U.S.C. 1524) (as amended by section 212).(3) Effect of subsection.—Nothing in this subsection prohibits any entity from entering into a contract with the Arizona Water Banking Authority or a successor of the Authority under State law.