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Week Ending September 29, 2006

S.2464 A bill to revise a provision relating to a repayment obligation of the Fort McDowell Yavapai Nation under the Fort McDowell Indian Community Water Rights Settlement Act of 1990, and for other purposes.

The Fort McDowell Indian Community Water Rights Settlement Act of 1990 ratified a negotiated settlement of the Fort McDowell Yavapai Nation’s rights to flows from the Verde River. Congress authorized a $13 million no-interest loan to the Yavapai Nation with which to build facilities for conveying and delivering water to the 1,584 acres on the reservation for agricultural purposes.

The matter then became complicated: The Department of Interior conducted an environmental review pursuant to an EPA law that concluded 227 acres to be irrigated included cultural sites and then withdrew those acres from the deal and began looking for replacement land. Land was too expensive to bring to a level of productivity as the 227 acres removed. The 227 acres remain un-replaced and unproductive.

This bill grew from the Yavapai Nation and the Department of Interior suggestion that the Department forgive the $13 million loan and the Yavapai Nation forgive the Department of Interior for not developing 227 mitigation acres. Congress agrees with the deal and so forgives the Indian tribe’s debt and relieves the Department from obtaining mitigating property. Funds advanced to develop the allusive replacement acres would be redirected to fund other water development projects on the Yavapai reservation.

Sponsor: Senator John McCain (R-AZ)

Vote: Passed Senate by Unanimous Consent September 13, 2006. Passed House by voice vote September 27, 2006

Cost to the taxpayers: “CBO estimates that forgiving the loan would increase direct spending by almost $5 million in 2006, assuming enactment by the end of the fiscal year. (The tribe has not yet repaid any of the $13 million loan.) The increase in direct spending represents the net present value of the expected repayments over the remaining life of the loan. Any savings from relieving the Secretary of the Interior from environmental mitigation costs for the tribe would depend on future appropriation acts. Based on information from the department, such costs could be a few million dollars.”

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