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117-s-4104117th CongressWALLET

Hualapai Tribe Water Rights Settlement Act of 2022

Sponsored By: Senator Sinema, Kyrsten [D-AZ-9]

Became Law

Summary

Ratifies the Hualapai Tribe water-rights settlement and creates federal trust and implementation accounts. The law directs the Secretary of the Interior to hold Hualapai water rights in trust, fund a Hualapai Water Project, and set rules for diversion, storage, leasing, and delivery of Hualapai water.

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  • Hualapai Tribe: The United States holds Reservation and trust water rights for the Tribe and authorizes diversion of up to 3,414 acre-feet per year of Colorado River water for municipal, commercial, and industrial uses on the Reservation.
  • Central Arizona Project and firming: The Act reallocates Central Arizona Project (CAP) water to the Tribe and provides 557.5 acre-feet per year of CAP "firming" protection for 100 years, and allows storage, leases, and limited off-Reservation use within Arizona.
  • Claims and allottees: The law waives and replaces many Hualapai and allottee water-right claims with settlement benefits while preserving certain retained rights and detailed conditions for Phase 2 of the Bill Williams agreements.

*The law creates dedicated federal trust and implementation accounts and authorizes deposits and appropriations to implement the settlement; its budgetary effects will depend on future appropriations.*

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 4 benefits, 1 costs, 5 mixed.

Land added to Hualapai Reservation

Named parcels are added to the Hualapai Reservation and taken into trust, subject to valid existing rights. After enactment, land outside the Reservation can be taken into trust only by a later Act of Congress. Any such future trust land carries only State‑law water rights and no federal reserved water rights.

Allottee water claims waived and capped

For Hualapai allottees, the law waives past, present, and future water‑right claims through the Enforceability Date. It caps claims above 82 AFY for Parcel 1 and above 312 AFY for Parcel 2. The United States, as trustee, keeps certain rights to enforce and object to other claims.

Legal peace and limits on water claims

The United States gives up many water‑right injury claims against the Tribe and its members through the Enforceability Date. Settlement benefits fully satisfy water‑right claims on Hualapai land, and allottee benefits replace allotment claims. A narrow sovereign‑immunity waiver lets courts interpret or enforce this Act and the settlements, but no money damages or fees can be awarded against the Tribe or the United States.

Enforceability deadline and repeal backstop

The settlement takes effect when the Secretary publishes required findings. If not published by April 15, 2029 (or a later agreed date), this law repeals, contracts are void, and appropriated funds return to the Treasury, minus certain spent amounts. If the deadline is missed, the United States may offset specified Federal amounts against Hualapai claims.

Funding and trust for Hualapai water project

The law provides $312 million, indexed for costs, for a Hualapai Water Trust Fund. The Secretary manages the fund and releases money to the Tribe on the Enforceability Date. The Tribe can build and run the Hualapai Water Project (up to 3,414 acre‑feet per year), power facilities, and wells, and buy land and water in the Truxton Basin. A $5 million implementation fund supports tasks like groundwater monitoring. The Tribe owns the assets, must pay operation and maintenance, cannot make per‑capita payments, and must file a yearly spending report. The Tribe withdraws funds only under an approved plan.

Freeport Bill Williams Phase 2 agreement

The United States releases certain past and some future water‑right claims against Freeport under the Bill Williams Phase 2 deal. The agreement allows post‑enforceability diversions, including up to 2,500 AFY from Sycamore Creek as described in the Phase 2 agreement. The deal has no precedential effect outside enforcing that agreement, and rights not expressly waived are kept.

Long-term firming for part of CAP water

For 100 years starting January 1, 2008, 557.50 acre‑feet per year of the Tribe’s CAP water is firmed to municipal and industrial priority. The State has the same firming duty for that amount. Firming does not apply to water the Tribe leases to others. The Tribe may buy more firming at its own expense under State law.

CAP water allocation, delivery, and costs

On the Enforceability Date, the Secretary allocates the Tribe’s CAP water. The Tribe can take water through the Hualapai Water Project, through the CAP system, or by direct Colorado River diversion in Arizona. All direct diversions are counted as in‑state CAP deliveries. Fixed OM&R is paid from the Lower Colorado River Basin Development Fund when available; otherwise the Tribe pays. Pumping energy charges apply when CAP is used, and no water is delivered unless charges are paid in advance. Getting benefits or using, storing, leasing, or exchanging this water does not by itself trigger federal acreage limits or full‑cost pricing rules.

Leasing and storage rules for CAP water

With the Secretary’s approval, the Tribe can lease or exchange CAP water for use in Arizona’s lower basin, but not in Navajo, Apache, or Cochise Counties. Leases can run up to 100 years and be renegotiated within that limit. The Tribe may store CAP water under State law, but cannot assign credits from stored firmed water and may use that stored firmed water only for the Tribe or exchange for Tribal use. Permanent sale of the Tribe’s CAP water is banned. The Tribe keeps all money from leases or exchanges; the United States has no claim or duty to manage those proceeds unless the Tribe deposits them in a federal trust account.

Groundwater monitoring and state alerts

USGS must estimate groundwater withdrawals in the Truxton Basin outside the Reservation within one year and then each year as needed. The State must be notified if withdrawals exceed the estimate by 3,000 AFY. The threshold excludes use on Hualapai fee land and land the Tribe buys after the Enforceability Date.

Sponsors & CoSponsors

Sponsor

Sinema, Kyrsten [D-AZ-9]

AZ • D

Cosponsors

  • Sen. Kelly, Mark [D-AZ]

    AZ • D

    Sponsored 4/28/2022

Roll Call Votes

No roll call votes available for this bill.

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