Agua Caliente Water Settlement

Summary#

This Act would approve a negotiated settlement of water rights for the Agua Caliente Band of Cahuilla Indians. It confirms a Tribal Water Right held in trust, creates a dedicated settlement trust fund with specified accounts and federal payments, sets rules about taxes on possessory interests on reservation lands, transfers specified Federal land into trust for the Tribe, and allows the sale of a defined parcel to the Coachella Valley Water District (CVWD) at fair market value. The Act requires the Secretary of the Interior to execute the settlement agreement, complete environmental reviews, and publish an enforceability finding before funds and many actions take effect. It also requires waivers and releases of many past water claims by the Tribe and the United States as trustee, with specific reservations retained by the Tribe and the United States.

What it means for you#

  • For Tribal members and Allottees: The Act confirms a Tribal Water Right for up to 20,000 acre-feet per year of groundwater, holds that right in trust for the Tribe and Allottees, and directs the Tribe to administer water allocations under a Tribal Water Ordinance approved by the Secretary. Allottees must generally use Tribal administrative remedies first before suing under certain older statutes. The Act also protects traditional and cultural non-consumptive uses.
  • For water districts (CVWD and Desert Water Agency): The Act ratifies an agreement between the Tribe and those districts, allows CVWD to continue or provide domestic water service on the reservation subject to the agreement, and limits the application of certain local groundwater fees (RAC) to Tribal-held water as described in the agreement.
  • For local taxing entities and other public agencies: The Act lets the Tribe impose a Tribal Possessory Interest Tax in place of the county ad valorem tax for possessory interests on reservation trust land, and requires the Tribe to distribute proceeds to other public agencies in amounts equivalent to what they would have received unless the Tribe decides otherwise.
  • For the public and project partners: The Act establishes a trust fund with separate accounts to pay for development projects, groundwater augmentation, water management, and operations/maintenance. Some land transfers into trust are authorized, and the sale of a defined facility land parcel to CVWD is authorized subject to appraisal and payment.

Expenses#

  • The Act authorizes mandatory transfers from the Treasury into a new Agua Caliente Settlement Trust Fund in four accounts: $300,000,000 for development projects; $100,000,000 for groundwater augmentation; $50,000,000 for water management; and $50,000,000 for operation, maintenance, and replacement. Funds remain available until expended.
  • The Act allows adjustments for construction cost changes and volatility using a construction cost index and Secretary-determined repricing. The $50,000,000 in the development account has $50,000,000 available on deposit for implementation and initial projects as described in the Act.
  • The Secretary must publish a finding (Enforceability Date) before most funds are released. The Act expires if the Secretary does not publish required findings by December 31, 2035 (or a later date agreed by parties), which would void many actions and affect funds and property titles as described in the Act.
  • If CVWD acquires the Facility Land, it must pay fair market value as determined by an appraisal and pay conveyance costs; proceeds from that sale are deposited into a Federal land account described in law.

Proponents' View#

The Act’s stated purposes (in the agreement text) are to achieve a fair, equitable, and final settlement of the Tribe’s water rights and related claims; to ratify and authorizing the settlement agreement among the Tribe, CVWD, and DWA; to authorize the Secretary to execute the agreement and take necessary actions to carry it out; to authorize funds to implement the agreement; to authorize transfer of Federal land into trust for the Tribe; and to authorize the sale of specified Federal land to CVWD.

Opponents' View#

No publicly available information.