Sec. 6. Authorization for construction of Navajo water development projects
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The Secretary, acting through the Commissioner of Reclamation, shall plan, design, and construct the water diversion, delivery, and conservation features of the Navajo water development projects. The Secretary is authorized to enter into intergovernmental agreements with other United States, State, or Navajo Nation agencies as necessary or appropriate to implement this section. Reclamation, or any Federal or Navajo Nation agency with an intergovernmental agreement with the Secretary pursuant to subsection (a), is authorized to serve as the lead agency or joint lead agencies with respect to any activity to plan, design, and construct the water diversion, delivery, and conservation features of any Navajo water development project to be constructed by that agency.
The agreement and this Act contemplate a comprehensive approach to addressing identified Reservation water needs by providing funds for domestic and municipal water supply and distribution infrastructure and agricultural water conservation. To allow the Navajo Nation flexibility in meeting the needs of its people over time as both circumstances and technologies evolve, the costs to meet Reservation water needs determined in the studies identified in the agreement were used to establish the dollar amount of the Navajo Water Development Fund.
To help ensure that water supply and distribution systems constructed pursuant to the agreement and this Act can be successfully developed and transitioned to be user-supported systems, the agreement and this Act also provide for a Navajo OM&R Trust Account. Prior to beginning construction activities for any water supply system as described in the agreement and constructed pursuant to this section, the Secretary shall review the design of the proposed Navajo water development projects and perform value-engineering analyses.
On the basis of the review described in paragraph (1), the Secretary shall negotiate and reach agreement with the Navajo Nation regarding appropriate changes to the final design so that the final design meets applicable industry standards, as well as changes, if any, that would allow the projects to be constructed for the amounts made available under subsection
(a)of section 7, and improve the cost-effectiveness of the projects. All costs incurred by the Secretary in carrying out this section shall be nonreimbursable. The total amount of obligations incurred by the Secretary for planning, design, and construction of the Navajo water development projects in subsections
(a)through
(j)of this section shall not exceed $198,300,000, except that the total amount of $198,300,000 shall be increased or decreased, as appropriate, based on ordinary fluctuations from June 2014, in construction cost indices applicable to the types of construction involved in the design and construction of the Navajo water development projects. The State shall contribute $8,000,000 payable to the Secretary for planning, design, and construction of the Navajo water development projects in installments in each of the 3 years following the execution of the agreement by the Secretary as provided for in subsection
(b)of section 5. Monies made available for the Navajo water development projects but not used for that purpose may, at the discretion of the Navajo Nation, be transferred to the Navajo OM&R Trust Account established by subsection (k). At the request of the Navajo Nation, 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 Navajo Nation to carry out the activities authorized by this section. Reclamation, or any Federal agency with an intergovernmental agreement with the Secretary pursuant to subsection (a), and the Navajo Nation shall negotiate the cost of any oversight activities carried out by such agencies for each agreement under this section, provided that the total cost for that oversight shall not exceed 4 percent of the total project costs. The Secretary shall convey title to those Navajo water development projects described as water supply and water distribution systems in the agreement and authorized in this section to the Navajo Nation when construction of each project is complete and the project is operating and, if applicable, delivering potable water. Effective on the date of the conveyance authorized by this subsection, 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 conveyed under this subsection, other than damages caused by any intentional act or act of negligence committed by the United States, or by employees or agents of the United States, prior to the date of conveyance. The United States shall have no obligation to pay for the operation, maintenance, or replacement costs of any Navajo water development project beginning on the date on which— title to the project is conveyed to the Navajo Nation; and the amounts required to be deposited in the Navajo OM&R Trust Account pursuant to subsection
(b)of section 7 have been deposited in that account. The Secretary shall provide technical assistance to prepare the Navajo Nation for operation of the Navajo water development projects, including operation and management training. The Secretary shall facilitate the formation of a project management committee to be composed of representatives of— the Navajo Nation; Reclamation, or any Federal agency with an intergovernmental agreement with the Secretary pursuant to subsection (a), the Bureau of Indian Affairs, and the Indian Health Service, as appropriate; and the State. The project management committee shall— review cost factors and budgets for construction, operation, and maintenance activities for the Navajo water development projects; improve management of the planning, design, construction, and operation of the Navajo water development projects through enhanced communication; and seek additional ways to reduce overall costs for the Navajo water development projects. The United States shall establish a trust account in the Treasury of the United States for the operation, maintenance, and replacement of the Navajo water development projects authorized to be constructed in this section and described in the agreement as water supply systems and water distribution systems.
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Sec. 6
Authorization for construction of Navajo water development projects
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