HR 131119th CongressIntroduced

Finish the Arkansas Valley Conduit Act

Introduced: Jan 3, 2025

Sponsor: Rep. Boebert, Lauren [R-CO-4] (R-Colorado)

Economy & TaxesFinancial ServicesInfrastructure

Standard Summary

Comprehensive overview in 1-2 paragraphs

Finish the Arkansas Valley Conduit Act would reshape how the Arkansas Valley Conduit in Colorado is repaid, effectively changing the financing and long-term cost structure for delivering reliable domestic water to communities that currently lack it. The bill amends Public Law 87-590 to create a repayment contract that requires 35% of the conduit’s cost to be repaid, with funding during construction coming from sources other than the Secretary of the Interior. For communities facing financial hardship, the bill allows the remaining balance to be repaid over up to 75 years with a reduced interest rate (simple interest equal to 50% of the Treasury rate determined under the law). The bill also allows revenue from contracts using Fryingpan-Arkansas project excess capacity or exchange contracts to be counted toward repayment, and it shifts responsibility for operation and maintenance to the contracting parties (the communities and/or local entities served by the conduit). In short, the bill aims to complete the conduit by broadening funding sources, easing repayment terms for financially distressed communities, and transferring ongoing maintenance duties to those communities, while allowing certain project revenues to help fund repayment.

Key Points

1Repeals and replaces a portion of the existing repayment structure in Public Law 87-590 for the Arkansas Valley Conduit, establishing a dedicated repayment contract with a 35% cost repayment requirement.
2During construction, funding can come from entities other than the Secretary of the Interior; remaining costs for those not covered upfront may be repaid later if there is financial hardship, up to a maximum of 75 years.
3The long-term interest for hardship-based repayment is set as simple interest at a rate equal to 50% of the interest rate determined by the Secretary of the Treasury under section 2(c) of the original law.
4Revenue from contracts for use of Fryingpan-Arkansas project excess capacity or exchange contracts using Fryingpan-Arkansas facilities can be counted toward repayment.
5Operation and maintenance (O&M) responsibilities would be assumed by the contracting parties (the communities/projects receiving the conduit).

Impact Areas

Primary group/area affected: Colorado communities and households in the Arkansas Valley that would receive reliable domestic water via the Arkansas Valley Conduit, including local water districts and municipalities.Secondary group/area affected: The U.S. Bureau of Reclamation (recipient of federal authorization, now subject to revised repayment terms), project partners, state of Colorado agencies, local ratepayers, and potential construction contractors involved with the conduit.Additional impacts:- Local debt service and budgeting implications for communities that participate in the conduit under the new repayment terms.- Increased reliance on non-federal funding during construction and potential revenue from excess capacity or exchange contracts to support repayment.- A shift in responsibility for ongoing maintenance and replacement costs from federal to local contracting parties, affecting long-term stewardship and operations planning.

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