H.R. 3254 would ratify the Taos Pueblo Indian Water Rights Settlement Agreement.  In addition, the bill would authorize $121 million for the infrastructure, water development, and local grants for the Taos Pueblo.

The settlement gives the Taos Pueblo water rights totaling 11,927 acre-feet per year in depletions, including 2,215 acre-feet per year from the San Juan-Chama Project.  Included in the settlement is an agreement by the Pueblo to initially abstain from using 4,678 acre-feet per year for continued non-Indian use.

The bill authorizes $30 million for the Secretary of the Interior to provide grants to the Taos Pueblo to construct and maintain water infrastructure and to restore and protect environmentally sensitive lands and watersheds.  $10 million could be available upon appropriation, and the remaining $20 million would not be available until 2017.

Under the settlement, the bill establishes the Taos Pueblo Water Development Fund within the U.S. Treasury to pay for or reimburse the costs incurred by the Pueblo.  The bill authorizes $58 million for the Water Development Fund to be available upon enactment of the agreement in 2017.  $15 million of the $58 million would be available for the purpose of purchasing water rights in the Taos Valley.

The bill also authorizes the Secretary to provide grants to local governments, other than the Taos Pueblos, for projects intended to mitigate the impact of diverting water from present uses to execute the settlement.  The federal government would be responsible for 75 percent of the costs incurred while State and local governments would cover 25%.  The bill authorizes the appropriation of $33 million for this purpose.