US SB3242

Amends the 2010 Taos Pueblo Indian Water Rights Settlement Act to establish two new supplemental trust funds: the Taos Pueblo Groundwater Development Supplemental Trust Fund ($190 million) and the Taos Pueblo Surface Water Sharing Supplemental Trust Fund ($16 million)

Provides $161 million in supplemental funding for Mutual-Benefit Projects, with the Bureau of Reclamation authorized to award grants and financial assistance to eligible non-Pueblo entities for water infrastructure construction, including the Mitigation Well System

Sets construction deadlines for Mutual-Benefit Projects: non-Mitigation Well System projects must be substantially completed within 6 years and fully completed within 8 years; Mitigation Well System projects must be substantially completed within 4 years and fully completed within 5 years

Authorizes alternative or interim offset infrastructure if eligible entities fail to meet funding eligibility requirements or construction deadlines, allowing the Commissioner of Reclamation to award funds to other entities or the Pueblo to construct offset infrastructure

Includes cost adjustment provisions allowing appropriated amounts to be indexed for construction cost changes based on the Bureau of Reclamation Construction Cost Index-Composite Trend and unforeseen market volatility