HR131-119

What This Bill Does

This bill modifies the repayment terms for the Arkansas Valley Conduit, a water infrastructure project in Colorado designed to deliver domestic water supplies to communities that lack reliable access to clean water. It reduces the financial burden on participating communities by lowering the required payment to 35% of the project cost and extending the repayment period.

Who Benefits and How

Communities and households in the Arkansas Valley region of Colorado that currently lack reliable access to domestic water supplies are the primary beneficiaries. They receive significantly reduced repayment terms: only 35% of project costs must be repaid, with up to 75 years to pay and interest rates cut to half the Treasury rate. Water utilities and local governments contracting for the conduit also benefit from these favorable financing terms that make the project more affordable.

Who Bears the Burden and How

The federal government (through the Bureau of Reclamation under the Secretary of the Interior) bears the primary burden by accepting reduced repayment and lower interest rates on the project, effectively subsidizing the cost. Taxpayers indirectly bear this cost through reduced federal revenue recovery. The contracting parties also take on new responsibilities for the long-term care, operation, maintenance, and replacement of the conduit once completed.

Key Provisions

• Reduces required repayment to 35% of conduit costs for communities demonstrating financial hardship
• Extends repayment period up to 75 years (substantially longer than typical federal water project terms)
• Cuts interest rate to 50% of the standard Treasury rate
• Allows repayment to include revenue from excess capacity contracts and exchange contracts using Fryingpan-Arkansas project facilities
• Transfers ongoing care, operation, maintenance, and replacement responsibilities to the contracting parties