S. Rpt. 119-93 accompanies infrastructure legislation titled "Crow Tribe Water Rights Settlement Amendments Act of 2025". Infrastructure bills affect highways, bridges, airports, transit, water systems, broadband, ports, or federal buildings. The Indian Affairs Committee's report describes the infrastructure need, the proposed federal investment or regulatory change, and projected economic and community benefits. Infrastructure reports typically include analysis of safety, efficiency, environmental impact, and regional effects.
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Senate Report 119-93 - CROW TRIBE WATER RIGHTS SETTLEMENT AMENDMENTS ACT OF 2025
[Senate Report 119-93]
[From the U.S. Government Publishing Office]
Calendar No. 260
119th Congress} { Report
SENATE
1st Session } { 119-93
======================================================================
CROW TRIBE WATER RIGHTS SETTLEMENT AMENDMENTS ACT OF 2025
_______
November 4, 2025.--Ordered to be printed
_______
Ms. Murkowski, from the Committee on Indian Affairs,
submitted the following
R E P O R T
[To accompany S. 240]
The Committee on Indian Affairs, to which was referred the
bill (S. 240) to amend the Crow Tribe Water Rights Settlement
Act of 2010 to make improvements to that Act, and for other
purposes, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
PURPOSE
S. 240 amends the Crow Tribe Water Rights Settlement Act of
2010 to update the infrastructure, funding, and administrative
mechanisms of the settlement so the Tribe can more efficiently
build and maintain water and related systems on its reservation
as part of its ratified Crow Tribe-Montana Water Rights Compact
entered into by the Crow Tribe and the State of Montana on June
22, 1999 to settle all existing water rights claims of the Crow
Tribe in the State of Montana.
BACKGROUND AND NEED
The Crow Tribe is a federally recognized Tribe with a
reservation that spans approximately 2.3 million acres in
south-central Montana. The Crow Tribe Water Rights Settlement
Act of 2010 (CTWRSA), enacted as part of the Claims Resolution
Act of 2010 (CRA),\1\ settled the Crow Tribe's and its
allottees' water rights and authorized $460 million for the
Crow Tribe to design and construct a Municipal, Rural and
Industrial water system (MR&I System); rehabilitate and improve
the Crow Irrigation Project (CIP); and develop energy projects,
including hydropower at the Yellowtail Afterbay Dam, clean coal
conversion, and renewable energy efforts.\2\ The CTWRSA
provides hundreds of millions of dollars in federal
appropriations to improve water service and irrigation on the
Crow Tribe's reservation, and in so doing, extinguishes future
claims for water rights ``within the Reservation'' that the
Crow Tribe, allottees, or the federal government acting as
trustee has asserted or could assert in the state of Montana.
However, the complexity of the project design, increased
construction costs, and current assessments of the future
burden of operational costs to Crow Tribal members has made the
CTWRSA's water system, as designed, infeasible. By amending the
CTWRSA from a project-based to a fund-based settlement, the
goal of the bill is to ensure that the Crow Tribe has necessary
flexibility and time to deliver clean water to communities on
the reservation through a revised water system design and
additional time to complete critical energy development
projects authorized by the CTWRSA.\3\ The bill does not reopen
the CTWRSA or the Crow Tribe-Montana Water Rights Compact
entered into by the Tribe and the State of Montana or alter
existing water rights.
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\1\Claims Resolution Act of 2010, Pub. L. No. 111-291, Sec. 401 et
seq., 124 Stat. 3064, 3097 (2010) (codified at 31 U.S.C. 1101 note).
\2\Press Release, U.S. Dep't of the Interior, Crow Tribe, United
States and State of Montana Sign Historic Water Compact (Sept. 5,
2019), (on file with committee).
\3\Letter from Frank White Clay, Chairman, Apsaalooke Nation, to
Sen. Jon Tester (May 22, 2024) (on file with the S. Comm on Indian
Affs.).
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SUMMARY
S. 240 amends the Crow Tribe Water Rights Settlement Act of
2010 to change the scope of the water infrastructure system
authorized under that Act; provide the Crow Tribe more
flexibility in developing regional irrigation and municipal and
industrial water projects; and allow the Tribe additional time
to develop a hydropower project to deliver clean energy and
water to the reservation.
LEGISLATIVE HISTORY
S. 240 was introduced by Senators Daines and Sheehy on
January 24, 2025. On March 5, 2025, the Committee held a
business meeting and ordered the bill to be reported favorably
without amendment.
An identical companion bill, H.R. 726, was introduced by
Representatives Downing (R-MT-2) and Zinke (R-MT-1) in the
House of Representatives on January 24, 2025. The bill was
referred to the House Committee on Natural Resources.
In the 118th Congress, a similar bill, S. 4442, was
introduced by Senators Tester and Daines on June 3, 2024. The
Committee held a hearing on S. 4442 on June 12, 2024 (S. Hrg.
118-418). The Committee held a business meeting to consider S.
4442 on September 18, 2024, and ordered the bill reported
favorably with an amendment in the nature of a substitute (S.
Rept. 118-260).
A companion bill, H.R. 8953, was introduced by
Representative Zinke (R-MT-1) in the House of Representatives
on July 8, 2024. The House Natural Resources Subcommittee on
Water, Wildlife, and Fisheries held a hearing on H.R. 8953 on
July 23, 2024.
COMMITTEE RECOMMENDATION
The Senate Committee on Indian Affairs in an open business
meeting on March 5, 2025, by a majority voice vote of a quorum
present, recommends that the Senate pass S. 240, without
amendment.
SECTION-BY-SECTION ANALYSIS
Section 1--Short title
This section sets forth the short title as the ``Crow Water
Rights Settlement Amendment Act of 2025.''
Section 2--Crow Tribe Water Rights Settlement
Section 2(a) replaces the definition of ``MR&I System''
with ``MR&I Project.''
Section 2(b) repeals Section 406 of the Crow Tribe Water
Rights Settlement Act of 2010, which provided for the design
and construction of the MR&I System on the reservation, in
accordance with agreements between the Bureau of Reclamation
and the Tribe, and allowed for the acquisition of land in
connection with the construction of the MR&I System.
Section 2(c) creates a new interest-bearing MR&I Projects
trust account within the existing trust Crow Settlement Fund,
prioritizes how these funds may be used, clarifies that title
to infrastructure constructed with this funding shall remain
with the Crow Tribe, and, upon transfer to the Tribe, the
federal government has no obligation to pay for operation,
maintenance, or replacement of MR&I Project infrastructure, and
prioritizes water infrastructure development over land
acquisition in the MR&I Projects account; and
Section 2(d) creates a new non-trust interest-bearing
account for Crow Irrigation Project (CIP) Implementation and
authorizes how these funds may be used, including earned
interest income, by:
Extending, from 15 to 20 years, the Tribe's
exclusive right to develop and market power generation
on the Yellowtail Afterbay Dam;
Authorizing the Secretary of the Interior to
withdraw funds held and maintained for the Tribe in
joint signature accounts at a private banking
institution and to deposit these funds into accounts
created by this legislation: (1) the Crow Settlement
Fund MR&I Projects account, and (2) the Crow CIP
Implementation account;
Permitting cost indexing of amounts
deposited in the Crow Settlement Fund MR&I Projects
account to align with the Bureau of Reclamation
Construction Cost Index-Composite Trend for costs
occurring after May 1, 2008;
Striking the authorization for transfer of
funds between MR&I System and the CIP; and
Making other necessary technical and
conforming changes to the Crow Tribe Water Rights
Settlement Act of 2010.
COST AND BUDGETARY CONSIDERATIONS
The cost estimate from the Congressional Budget Office
requested on S. 240 has not yet been received. Due to time
constraints, the CBO letter will be printed in the
Congressional Record when it is received.
REGULATORY AND PAPERWORK IMPACT STATEMENT
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires each report accompanying a bill to evaluate the
regulatory and paperwork impact that would be incurred in
carrying out the bill. The Committee believes that S. 240, as
reported, will have minimal impact on regulatory or paperwork
requirements.
EXECUTIVE TESTIMONY AND COMMUNICATIONS
The testimony provided by the U.S. Department of the
Interior from the June 12, 2024, hearing on S. 4442 follows:
statement of bryan newland, assistant secretary for indian affairs,
u.s. department of the interior
s. 4442, to amend the crow tribe water rights settlement act of 2010 to
make improvements to that act, and for other purposes
Good afternoon, Chairman Schatz, Vice Chairman Murkowski,
and members of the Committee. My name is Bryan Newland, and I
am the Assistant Secretary for Indian Affairs at the Department
of the Interior (Department). Thank you for the opportunity to
present testimony on . . . S. 4442, ``To amend the Crow Tribe
Water Rights Settlement Act of 2010 to make improvements to
that Act, and for other purposes.''
S. 4442, Crow Tribe Water Rights Settlement Amendments Act of 2024
S. 4442 would amend the Crow Tribe Water Rights Settlement
Act of 2010 (Pub. L. 111-291; 124 Stat. 3097) (``Settlement
Act''). The Department supports S. 4442 and recommends an
amendment to the bill, which we have discussed with the Crow
Tribe, that would ensure that trust fund expenditures
prioritize providing clean drinking water over land
acquisitions.
Introduction
The Biden Administration recognizes that water is a sacred
and valuable resource for Tribal Nations and that long-standing
water crises continue to undermine public health and economic
development in Indian Country. This Administration strongly
supports the resolution of Indian water rights claims through
negotiated settlements. Indian water settlements help to ensure
that Tribal Nations have safe, reliable water supplies; improve
environmental and health concerns on reservations; enable
economic growth; promote Tribal sovereignty and self-
sufficiency; and help advance the United States' trust
relationship with Tribes. At the same time, water rights
settlements have the potential to end decades of controversy
and contention among Tribal Nations and neighboring communities
and promote cooperation in the management of water resources.
Congress plays an important role in approving Indian water
rights settlements and we stand ready to work with this
Committee and Members of Congress to advance Indian water
rights settlements and ensure their successful implementation.
Indian water rights settlements play a pivotal role in this
Administration's commitment to putting equity at the center of
everything we do to improve the lives of everyday people--
including Tribal Nations. We have a clear charge from President
Biden and Secretary Haaland to improve water access and water
quality on Tribal lands. Access to water is fundamental to
human existence, economic development, and the future of
communities--especially Tribal communities.
Background
The Settlement Act authorized $460 million, indexed to
inflation, for the Bureau of Reclamation to plan, design and
construct two major projects on the Crow Reservation: (1) the
rehabilitation and improvement of the Crow Irrigation Project
(CIP), and (2) the design and construction of a Municipal,
Rural, and Industrial (MR&I) water system. Both projects were
to be designed and constructed as generally described in
detailed engineering reports prepared by consultants to the
Tribe and cited in the Settlement Act. In addition, the
Settlement Act gave the Tribe a 15-year exclusive right to
construct hydropower facilities at the Yellowtail Afterbay Dam,
a Bureau of Reclamation facility. That exclusive right expires
in 2025.
Proposed Amendment
S. 4442 would amend the Settlement Act by establishing a
non-trust fund account to allow the Bureau of Reclamation to
continue work on rehabilitation of the CIP and a new MR&I
projects trust fund to be used by the Tribe for (i) planning,
permitting, designing, engineering, constructing,
reconstructing, replacing, rehabilitating, operating, or
repairing water production, treatment, or delivery
infrastructure, including for domestic and municipal use or
wastewater infrastructure; (ii) purchasing on-Reservation land
with water rights; and (iii) complying with applicable
environmental laws. The amendments do not increase the funding
for the Settlement Act but merely change the way some funds are
held and expended. If enacted as written, it is our
interpretation that while the Amendment would repeal Section
406 in its entirety, funding for the MR&I projects trust fund
would not exceed $246,381,000, as indexed, as provided in
section 414(b) of the Settlement Act (which would be
redesignated as 415(b) pursuant to S. 4442).
When the Settlement Act was enacted, it did not provide for
the creation of a non-trust interest bearing account for funds
appropriated for project construction. Subsequent Indian water
rights settlements have provided for such accounts to allow
funds to accrue interest while projects are being planned,
designed, and constructed. Because the Settlement Act did not
provide this authorization, the Department and the Tribe
instead opened a joint-signature account with a private bank
for the investment of settlement funds. While this has allowed
the funding to earn interest, it has come with costs associated
with maintaining a private bank account. The Tribe now seeks to
establish a non-trust interest-bearing account in Treasury so
it can enjoy the benefits of earning interest without having to
pay management fees to a private banking institution. S. 4442
would authorize the establishment of a non-trust interest-
bearing account in Treasury to receive the funds already
appropriated and yet to be appropriated for CIP rehabilitation.
Reclamation would continue to be the lead agency responsible
for the planning, design, and construction of CIP
rehabilitation features.
With respect to the MR&I system, S. 4442 would convert this
portion of the Settlement Act from an infrastructure-based
settlement to a trust fund-based settlement. S. 4442 would
direct the Secretary to establish in the existing Crow Tribe
Water Rights Settlement Trust Fund a new ``MR&I Projects''
account. The Tribe could then use funds from this account for
several authorized purposes: plan, design, and construct MR&I
systems; plan, design, and construct wastewater treatment
facilities; and purchase on-Reservation land with water rights.
S. 4442 would provide the Tribe with flexibility and discretion
to plan, design, and construct the MR&I and wastewater systems
that it believes will best serve communities on its
Reservation.
Finally, S. 4442 would extend by five years the period
during which the Tribe has the exclusive right to develop
hydropower at the Yellowtail Afterbay Dam, to 2030.
The Department supports S. 4442. Allowing the Tribe to use
the funding authorized for a large, centralized MR&I system to
instead build smaller MR&I projects will allow it to make
decisions regarding how, when, and where to develop water
infrastructure on the Reservation. This approach is consistent
with Tribal sovereignty and self-determination. We would like
to work with the Tribe and the Committee, however, to include
language in S. 4442 to ensure that trust fund expenditures
prioritize providing clean drinking water over land
acquisitions. The expansion of the authorized uses from a
single use (MR&I) to multiple uses, including wastewater
projects and purchases of land with water rights, will
necessarily reduce the amount of funding available for badly
needed drinking water systems on the Reservation. Provisions
prioritizing funding for MR&I would ensure safe, reliable
drinking water for the Tribe.
Conclusion
Chairman Schatz, Vice Chairman Murkowski, and members of
the Committee, thank you for the opportunity to provide the
Department's views.
CHANGES IN EXISTING LAW
In compliance with subsection 12 of rule XXVI of the
Standing Rules of the Senate, the Committee waives the
requirement to detail changes in existing law to expedite the
business of the Senate.
[all]