MUTUAL-BENEFIT PROJECTS.

SEC. 507. MUTUAL-BENEFIT PROJECTS. (a) In general.—Upon the Enforcement Date, the Secretary, acting through the Commissioner of Reclamation, shall provide financial assistance in the form of grants on a nonreimbursable basis to Eligible Non-Pueblo Entities to plan, permit, design, engineer, and construct the Mutual-Benefit Projects in accordance with the Settlement Agreement— (1) to minimize adverse impacts on the Pueblo’s water resources by moving future non-Indian ground water pumping away from the Pueblo’s Buffalo Pasture; and (2) to implement the resolution of a dispute over the allocation of certain surface water flows between the Pueblo and non-Indian irrigation water right owners in the community of Arroyo Seco Arriba. (b) Cost-sharing.— (1) Federal share.—The Federal share of the total cost of planning, designing, and constructing the Mutual-Benefit Projects authorized in subsection (a) shall be 75 percent and shall be nonreimbursable. (2) Non-federal share.—The non-Federal share of the total cost of planning, designing, and constructing the Mutual-Benefit Projects shall be 25 percent and may be in the form of in-kind contributions, including the contribution of any valuable asset or service that the Secretary determines would substantially contribute to completing the Mutual-Benefit Projects. (3) Additional state contribution.—As a condition of expenditure by the Secretary of the funds made available under section 509(c)(2), the State shall— (A) appropriate and make available the non-Federal share described in paragraph (2); and (B) agree to provide additional funding associated with the Mutual-Benefit Projects as described in paragraph 10 of the Settlement Agreement.