Sec. 6. Authorization for construction of Hualapai water project; funding

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Subject to the availability of appropriations, the Secretary, acting through the Commissioner, shall plan, design, and construct the Hualapai Water Project, which shall be designed to divert, treat, and convey not less than 3,414 AFY of water from the Colorado River for municipal, commercial, and industrial uses on the Hualapai Reservation. The Bureau of Reclamation shall serve as the lead agency with respect to any activity to plan, design, and construct the water diversion and delivery features of the Hualapai Water Project.

The scope of the planning, design, and construction activities for the Hualapai Water Project shall be as generally described in the document entitled Appraisal Design Report revised with Addendum (June 2016) and prepared by DOWL HKM, subject to the condition that, before commencing final design and construction activities, the Secretary shall— review the design of the proposed construction; perform value engineering analyses; and perform appropriate Federal compliance activities.

The Hualapai Water Project shall— be capable of delivering 3,414 AFY of water from the Colorado River to the Reservation; include all facilities and appurtenant items necessary to divert, store, treat, and deliver water for municipal, commercial, and industrial uses on the Hualapai Reservation; and to the maximum extent practicable, be designed and constructed to minimize OM&R costs. On the basis of the review described in subparagraph (A)(i), the Secretary shall periodically offer to negotiate and reach agreement with the Hualapai Tribe regarding any appropriate changes to the final design— to ensure that the final design meets applicable industry standards; to improve the cost-effectiveness of the delivery of Colorado River water; and to ensure that the Hualapai Water Project will be constructed using only the amounts made available pursuant to subsection (b)(6).

On request of the Hualapai Tribe and in accordance with the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5301 et seq.), the Secretary shall enter into one or more agreements with the Hualapai Tribe to carry out this subsection. In accordance with subsection

(c)and subject to the availability of appropriations, during the period beginning on the enforceability date and ending on the date on which title to the Hualapai Water Project is transferred to the Hualapai Tribe pursuant to paragraph (6), the Secretary, acting through the Commissioner, in consultation with the Hualapai Tribe, shall operate, maintain, and replace the Hualapai Water Project. There is authorized to be appropriated to the Secretary to carry out the activities described in subparagraph

(A)$5,000,000, to remain available until expended. Any funds that remain unexpended on the date on which title to the Hualapai Water Project is transferred to the Hualapai Tribe pursuant to paragraph

(6)shall revert to the Treasury. The Secretary shall not use any amounts from the Hualapai Water Project Account or the Hualapai OM&R Trust Account to carry out the activities described in subparagraph (A). The Secretary shall convey to the Hualapai Tribe title to the Hualapai Water Project on the date on which the Secretary issues a notice including— a certification that the infrastructure constructed is capable of storing, diverting, treating, transmitting, and distributing a supply of water as generally set forth in the final project design described in paragraph (3); a finding that the Hualapai Water Project is substantially complete; and a certification that the Secretary has consulted with the Hualapai Tribe regarding the finding described in clause (ii). Subject to clause (ii), beginning on the date on which the Secretary transfers to the Hualapai Tribe title to the Hualapai Water Project under subparagraph (A), the United States shall not be held liable by any court for damages arising out of any act, omission, or occurrence relating to the facilities transferred. Clause

(i)shall not apply to liability for damages caused by an intentional act or an act of negligence committed by the United States, or by employees or agents of the United States, occurring prior to the date on which the Secretary transfers to the Hualapai Tribe title to the Hualapai Water Project under subparagraph (A). Beginning on the date on which the Secretary transfers to the Hualapai Tribe title to the Hualapai Water Project under subparagraph (A), the United States shall have no obligation to pay for the OM&R costs of the Hualapai Water Project. Subject to the availability of appropriations, the Secretary shall provide to the Hualapai Tribe technical assistance, including operation and management training, to prepare the Hualapai Tribe for the operation of the Hualapai Water Project. There is authorized to be appropriated to the Secretary to carry out the activities described in subparagraph

(A)$2,000,000, to remain available until expended. Any funds that remain unexpended on the date on which title to the Hualapai Water Project is transferred to the Hualapai Tribe pursuant to paragraph

(6)shall revert to the Treasury. The Secretary shall facilitate the formation of a project management committee composed of representatives from the Bureau of Reclamation, the Bureau of Indian Affairs, the National Park Service, the United States Fish and Wildlife Service, and the Hualapai Tribe— to review cost factors and budgets for construction, operation, and maintenance activities for the Hualapai Water Project; to improve management of inherently governmental functions through enhanced communication; and to seek additional ways to reduce overall costs for the Hualapai Water Project. Subject to subparagraph (B), beginning on the day after the enforceability date, the Secretary may construct the Hualapai Water Project. Notwithstanding subparagraph

(A)and subject to clause (ii), on or before the enforceability date, the Secretary may use not more than $15,233,000 of the amounts deposited in the Hualapai Water Project Account under subsection (b)(6) to carry out, for the Hualapai Water Project— preconstruction activities; and necessary environmental studies. The amount described in clause

(i)shall be increased or decreased, as appropriate, by such amounts as may be justified by reason of fluctuations in applicable engineering cost indices occurring after February 29, 2016. There is established in the Treasury of the United States an account, to be known as the Hualapai Water Project Account , for use in constructing the Hualapai Water Project. The Hualapai Water Project Account shall be administered by the Secretary. The Hualapai Water Project Account shall consist of the amounts deposited in the account under paragraph (6), together with any interest accrued on those amounts. The Secretary shall manage the Hualapai Water Project Account in a manner that is consistent with— the American Indian Trust Fund Management Reform Act of 1994 ( 25 U.S.C. 4001 et seq.); and this subsection. The Secretary shall invest amounts in the Hualapai Water Project Account in accordance with— the Act of April 1, 1880 (21 Stat. 70, chapter 41; 25 U.S.C. 161 ); the first section of the Act of June 24, 1938 (52 Stat. 1037, chapter 648; 25 U.S.C. 162a ); and obligations of Federal corporations and Federal Government-sponsored entities, the charter documents of which provide that the obligations of the entities are lawful investments for federally managed funds, including— obligations of the United States Postal Service described in section 2005 of title 39, United States Code; bonds and other obligations of the Tennessee Valley Authority described in section 15d of the Tennessee Valley Authority Act of 1933 ( 16 U.S.C. 831n–4 ); mortgages, obligations, or other securities of the Federal Home Loan Mortgage Corporation described in section 303 of the Federal Home Loan Mortgage Corporation Act ( 12 U.S.C. 1452 ); and bonds, notes, or debentures of the Commodity Credit Corporation described in section 4 of the Act of March 8, 1938 (52 Stat. 108, chapter 44; 15 U.S.C. 713a–4 ). The interest on, and the proceeds from, the sale or redemption of any obligations held in the Hualapai Water Project Account shall be credited to, and form a part of, the Hualapai Water Project Account. If the total cost of planning, design, and construction activities of the Hualapai Water Project results in cost savings and is less than the amounts authorized to be appropriated under paragraph (6), the Secretary, at the request of the Hualapai Tribe, may— use those cost savings to carry out capital improvement projects associated with the Hualapai Water Project; or transfer those cost savings to the Hualapai OM&R Trust Account. The Secretary shall not be reimbursed by any entity, including the Hualapai Tribe, for any amounts expended by the Secretary in carrying out this section. Except as provided in subsection (a)(9)(B), amounts appropriated to and, deposited in, the Hualapai Water Project Account shall not be available to the Secretary for expenditure until the enforceability date. Investment earnings under paragraph

(2)on amounts deposited in the Hualapai Water Project Account shall not be available to the Secretary for expenditure until the enforceability date. Subject to subparagraph (B), there is authorized to be appropriated to the Secretary for deposit in the Hualapai Water Project Account $134,500,000, to remain available until expended. The amount authorized to be appropriated under subparagraph

(A)shall be increased or decreased, as appropriate, by such amounts as may be justified by reason of fluctuations in applicable engineering cost indices occurring after February 29, 2016, until the date on which title to the Hualapai Water Project is transferred to the Hualapai Tribe under subsection (a)(6)(A). There is established in the Treasury of the United States a trust account, to be known as the Hualapai OM&R Trust Account , for the OM&R of the Hualapai Water Project. The Hualapai OM&R Trust Account shall be administered by the Secretary. The Hualapai OM&R Trust Account shall consist of the amounts deposited in the account under paragraph (4), together with any interest accrued on those amounts. The Secretary shall manage the Hualapai OM&R Trust Account in a manner that is consistent with— the American Indian Trust Fund Management Reform Act of 1994 ( 25 U.S.C. 4001 et seq.); and this subsection. The Secretary shall invest amounts in the Hualapai OM&R Trust Account in accordance with the laws and obligations described in clauses

(i)through

(iii)of subsection (b)(2)(B). Beginning on the date on which title to the Hualapai Water Project is transferred to the Hualapai Tribe under subsection (a)(6)(A), the Secretary shall make available to the Hualapai Tribe all amounts appropriated to, and deposited in, the Hualapai OM&R Trust Account. Subject to subparagraph

(B)and in addition to any amounts transferred from the Hualapai Water Project Account pursuant to subsection (b)(3)(B), there is authorized to be appropriated to the Secretary for deposit and retention in the Hualapai OM&R Trust Account $32,000,000, to remain available until expended. The amount authorized to be appropriated under subparagraph

(A)shall be increased or decreased, as appropriate, by such amounts as may be justified by reason of fluctuations in applicable engineering cost indices occurring after February 29, 2016.

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