Sec. 10604. PROJECT CONTRACTS
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## SEC. 10604 PROJECT CONTRACTS ###
(a)Navajo Nation Contract ####
(1)Hydrologic determination Congress recognizes that the Hydrologic Determination necessary to support approval of the Contract has been completed. ####
(2)Contract approval #####
(A)Approval ######
(i)In general Except to the extent that any provision of the Contract conflicts with this subtitle, Congress approves, ratifies, and confirms the Contract. ######
(ii)Amendments To the extent any amendment is executed to make the Contract consistent with this subtitle, that amendment is authorized, ratified, and confirmed. #####
(B)Execution of contract The Secretary, acting on behalf of the United States, shall enter into the Contract to the extent that the Contract does not conflict with this subtitle (including any amendment that is required to make the Contract consistent with this subtitle). ####
(3)Nonreimbursability of allocated costs The following costs shall be nonreimbursable and not subject to repayment by the Nation or any other Project beneficiary: #####
(A)Any share of the construction costs of the Nation relating to the Project authorized by section 10602(a). #####
(B)Any costs relating to the construction of the Navajo Indian Irrigation Project that may otherwise be allocable to the Nation for use of any facility of the Navajo Indian Irrigation Project to convey water to each Navajo community under the Project. #####
(C)Any costs relating to the construction of Navajo Dam that may otherwise be allocable to the Nation for water deliveries under the Contract. ####
(4)Operation, Maintenance, and Replacement Obligation Subject to subsection (f), the Contract shall include provisions under which the Nation shall pay any costs relating to the operation, maintenance, and replacement of each facility of the Project that are allocable to the Nation. ####
(5)Limitation, cancellation, termination, and rescission The Contract may be limited by a term of years, canceled, terminated, or rescinded only by an Act of Congress. ###
(b)City of Gallup Contract ####
(1)Contract authorization Consistent with this subtitle, the Secretary is authorized to enter into a repayment contract with the City that requires the City— #####
(A)to repay, within a 50-year period, the share of the construction costs of the City relating to the Project, with interest as provided under section 10305; and #####
(B)consistent with section 10603(g), to pay the operation, maintenance, and replacement costs of the Project that are allocable to the City. ####
(2)Contract prepayment #####
(A)In general The contract authorized under paragraph
(1)may allow the City to satisfy the repayment obligation of the City for construction costs of the Project on the payment of the share of the City prior to the initiation of construction. #####
(B)Amount The amount of the share of the City described in subparagraph
(A)shall be determined by agreement between the Secretary and the City. #####
(C)Repayment obligation Any repayment obligation established by the Secretary and the City pursuant to subparagraph
(A)shall be subject to a final cost allocation by the Secretary on project completion and to the limitations set forth in paragraph (3). ####
(3)Share of construction costs #####
(A)In general Subject to subparagraph (B), the Secretary shall determine the share of the construction costs of the Project allocable to the City and establish the percentage of the allocated construction costs that the City shall be required to repay pursuant to the contract entered into under paragraph (1), based on the ability of the City to pay. ##### (B)6 Maximum share Notwithstanding subparagraph (A), the repayment obligation of the City shall not exceed $76,000,0006 6The designation of subparagraph
(B)technically does not appear in law even though it’s shown above. The amendment by section 209(b) of division B of Public Law 119–74 provides an amendment to amend subparagraph
(B)to read in its entirety. However, the revised or new subparagraph
(B)did not insert “(B)” back into law and lacks punctuation at the end of the revised subparagraph. ####
(4)Excess construction costs Any construction costs of the Project allocable to the City in excess of the repayment obligation of the City, as determined under paragraph (3), shall be nonreimbursable. ####
(5)Grant funds A grant from any other Federal source shall not be credited toward the amount required to be repaid by the City under a repayment contract. ####
(6)Title transfer If title is transferred to the City prior to repayment under section 10602(f), the City shall be required to provide assurances satisfactory to the Secretary of fulfillment of the remaining repayment obligation of the City. ####
(7)Water delivery subcontract The Secretary shall not enter into a contract under paragraph
(1)with the City until the City has secured a water supply for the City’s portion of the Project described in section 10603(b)(2)(B), by entering into, as approved by the Secretary, a water delivery subcontract for a period of not less than 40 years beginning on the date on which the construction of any facility of the Project serving the City is completed, with— #####
(A)the Nation, as authorized by the Contract; #####
(B)the Jicarilla Apache Nation, as authorized by the settlement contract between the United States and the Jicarilla Apache Tribe, authorized by the Jicarilla Apache Tribe Water Rights Settlement Act (Public Law 102-441; 106 Stat. 2237); or #####
(C)an acquired alternate source of water, subject to approval of the Secretary and the State of New Mexico, acting through the New Mexico Interstate Stream Commission and the New Mexico State Engineer. ###
(c)Jicarilla Apache Nation Contract ####
(1)Contract authorization Consistent with this subtitle, the Secretary is authorized to enter into a repayment contract with the Jicarilla Apache Nation that requires the Jicarilla Apache Nation— #####
(A)to repay, within a 50-year period, the share of any construction cost of the Jicarilla Apache Nation relating to the Project, with interest as provided under section 10305; and #####
(B)consistent with section 10603(g), to pay the operation, maintenance, and replacement costs of the Project that are allocable to the Jicarilla Apache Nation. ####
(2)Contract prepayment #####
(A)In general The contract authorized under paragraph
(1)may allow the Jicarilla Apache Nation to satisfy the repayment obligation of the Jicarilla Apache Nation for construction costs of the Project on the payment of the share of the Jicarilla Apache Nation prior to the initiation of construction. #####
(B)Amount The amount of the share of Jicarilla Apache Nation described in subparagraph
(A)shall be determined by agreement between the Secretary and the Jicarilla Apache Nation. #####
(C)Repayment obligation Any repayment obligation established by the Secretary and the Jicarilla Apache Nation pursuant to subparagraph
(A)shall be subject to a final cost allocation by the Secretary on project completion and to the limitations set forth in paragraph (3). ####
(3)Share of construction costs #####
(A)In general Subject to subparagraph (B), the Secretary shall determine the share of the construction costs of the Project allocable to the Jicarilla Apache Nation and establish the percentage of the allocated construction costs of the Jicarilla Apache Nation that the Jicarilla Apache Nation shall be required to repay based on the ability of the Jicarilla Apache Nation to pay. #####
(B)Minimum percentage Notwithstanding subparagraph (A), the repayment obligation of the Jicarilla Apache Nation shall be at least 25 percent of the construction costs of the Project that are allocable to the Jicarilla Apache Nation, but shall in no event exceed 35 percent. ####
(4)Excess construction costs Any construction costs of the Project allocable to the Jicarilla Apache Nation in excess of the repayment obligation of the Jicarilla Apache Nation as determined under paragraph (3), shall be nonreimbursable. ####
(5)Grant funds A grant from any other Federal source shall not be credited toward the share of the Jicarilla Apache Nation of construction costs. ####
(6)Navajo indian irrigation project costs The Jicarilla Apache Nation shall have no obligation to repay any Navajo Indian Irrigation Project construction costs that might otherwise be allocable to the Jicarilla Apache Nation for use of the Navajo Indian Irrigation Project facilities to convey water to the Jicarilla Apache Nation, and any such costs shall be nonreimbursable. ###
(d)Capital Cost Allocations ####
(1)In general For purposes of estimating the capital repayment requirements of the Project Participants under this section, the Secretary shall review and, as appropriate, update the Draft Impact Statement allocating capital construction costs for the Project. ####
(2)Final cost allocation The repayment contracts entered into with Project Participants under this section shall require that the Secretary perform a final cost allocation when construction of the Project is determined to be substantially complete. ####
(3)Repayment obligation The Secretary shall determine the repayment obligation of the Project Participants based on the final cost allocation identifying reimbursable and nonreimbursable capital costs of the Project consistent with this subtitle. ###
(e)Operation, Maintenance, and Replacement Cost Allocations For purposes of determining the operation, maintenance, and replacement obligations of the Project Participants under this section, the Secretary shall review and, as appropriate, update the Draft Impact Statement that allocates operation, maintenance, and replacement costs for the Project. ###
(f)Temporary Waivers of Payments ####
(1)In general On the date on which the Secretary declares a section of the Project to be substantially complete and delivery of Project water generated by and through that section of the Project can be made to the Nation, the Secretary may waive, for a period of not more than 10 years, the operation, maintenance, and replacement costs allocable to the Nation for that section of the Project that the Secretary determines are in excess of the ability of the Nation to pay. ####
(2)Subsequent payment by nation After a waiver under paragraph (1), the Nation shall pay all allocated operation, maintenance, and replacement costs of that section of the Project. ####
(3)Payment by united states Any operation, maintenance, or replacement costs waived by the Secretary under paragraph
(1)shall be paid by the United States and shall be nonreimbursable. ####
(4)Effect on contracts Failure of the Secretary to waive costs under paragraph
(1)because of a lack of availability of Federal funding to pay the costs under paragraph
(3)shall not alter the obligations of the Nation or the United States under a repayment contract. ####
(5)Termination of Authority The authority of the Secretary to waive costs under paragraph
(1)with respect to a Project facility transferred to the Nation under section 10602(f) shall terminate on the date on which the Project facility is transferred. ###
(g)Project Construction Committee The Secretary shall facilitate the formation of a project construction committee with the Project Participants and the State of New Mexico— ####
(1)to review cost factors and budgets for construction and operation and maintenance activities; ####
(2)to improve construction management through enhanced communication; and ####
(3)to seek additional ways to reduce overall Project costs. * * * * * * *
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- Pub. L. 102-441
- 106 Stat. 2237
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