Navajo Utah Water Rights Settlement Act of 2016

This bill (1) ratifies the Navajo Utah Water Rights Settlement Agreement negotiated between the Navajo Nation, the United States, and Utah; and (2) satisfies the claims of the tribe for water rights and injury to water rights under all laws with respect to the Navajo Nation Reservation.

The bill enumerates Navajo Nation's right to use water from water sources located within Utah and adjacent to or encompassed within the the boundaries of the reservation resulting in depletion of no more than 81,500 acre-feet annually.

The Bureau of Reclamation (Reclamation) must plan, design, and construct the water diversion, delivery, and conservation features of the Navajo water development projects. Reclamation must convey title to those Navajo water development projects described as water supply and water distribution systems once they are complete, in operation, and if applicable, delivering potable water.

The Department of the Interior must facilitate the formation of a project management committee to review cost factors and budgets and improve management of the Navajo water development projects.

The bill establishes: (1) the Navajo Operation, Maintenance, and Replacement (OM&R) Trust Account for the operation, maintenance, and replacement of the Navajo water development projects authorized to be constructed and described in the agreement as water supply systems and water distribution systems; and (2) the Navajo Water Development Fund to plan, design, and construct the Navajo water development projects.

The bill outlines waivers, releases, and retentions of claims by the Navajo Nation and the United States under the agreement.