Navajo-Gallup Water Supply Project Amendments Act of 2025

Expanded Water Service Opportunities: The bill finds that expanding the Project Service Area can increase service for additional Tribal members without increasing project costs beyond authorized levels (Section 3, subsection (a)(2)(A)).

Reduced Operating Costs: By adding more customers to the project, the unit operations and maintenance costs of the project are expected to be reduced (Section s3, subsection (a)(2)(A)(ii)).

Expanded Service Areas: The Nation is authorized to expand the service area to deliver water to communities within the Rio San Jose Basin in New Mexico and the community of Lupton, Arizona (Section 3, subsection (a)(2)(B)).

Renewable Energy Development: The Secretary is authorized to use up to $6,250,000 to develop renewable energy for portions of the project that do not have access to Colorado River Storage Project power (Section 3, subsection (a)(5)(A)).

Hydroelectric Power Opportunities: Up to $1,250,000 of the renewable energy funds may be used to develop hydroelectric power for project facilities capable of using hydraulic head to produce electricity (Section 3, subsection (a)(5)(B)).

Financial Flexibility through Deferred Construction: The bill allows for the creation of a Deferred Construction Fund, which the Nation can use to construct project facilities at a later time or construct alternate facilities (Section 3, subsection (a)(i)(2)).

Water Delivery to Utah: The Nation may provide non-Project water to communities in the State of Utah, up to 2,000 acre-feet per year (Section 5, subsection (b)(2)(A)(i)).

Land Restrictions: Certain fee lands taken into trust for the Navajo Nation will be subject to valid existing rights, contracts, management agreements, easements, and rights-of-way (Section 3, subsection (a)(3)(C)(i)).

Easement Restrictions: Land underlying the San Juan Generating Station taken into trust will be subject to a perpetual easement for the United States to use for ingress, egress, construction, operation, and maintenance of project facilities (Section s3, subsection (a)(3)(C)(iii)(I)).

Taxation of Activities: Construction, operation, or maintenance activities on land held in trust for the Nation are subject to taxation by the Nation, while activities on other land are subject to taxation by the State (Section 3, subsection (e)).

Repayment Limits: The repayment obligation of the City regarding project contracts is subject to specific limits (Section 3, subsection (c)(2)(B)).