Finish the Arkansas Valley Conduit Act

The bill would amend Public Law 87-590 to restructure the repayment terms for the Arkansas Valley Conduit, a water pipeline in Colorado that would carry water from Pueblo Reservoir to underserved communities in the Arkansas River Valley. Under the revised terms, communities would pay 35% of the conduit's total construction cost — not the full amount — regardless of standard reclamation law requirements. Any non-federal funding contributed during construction would count toward that 35% share. For any remaining balance, communities that demonstrate financial hardship could repay over up to 75 years at a simple interest rate equal to 50% of the Treasury rate, well below standard reclamation terms. The bill would also require contracting communities to assume responsibility for the conduit's ongoing operation, maintenance, and replacement.

The bill modifies only the financial and contractual terms of the conduit project; it does not alter the pipeline's physical design or scope. The Secretary of the Interior (through the Bureau of Reclamation) would determine financial hardship eligibility and administer the repayment contracts.

Communities and households in Colorado's Arkansas River Valley that lack reliable domestic water supplies and would receive water through the Arkansas Valley Conduit. Local water districts or municipal entities that serve as contracting parties would be directly bound by the new repayment terms and would take on operations and maintenance obligations. The Bureau of Reclamation administers the contracts and determines financial hardship eligibility.

Communities along the Arkansas River Valley currently face repayment obligations under standard federal reclamation law, which can impose higher interest rates and shorter payback windows that small or financially constrained water districts may struggle to meet. The reduced interest rate — half the Treasury rate — and a repayment window of up to 75 years would substantially lower annual payments, potentially enabling more communities to commit to the project and receive reliable drinking water.

The Bureau of Reclamation (acting through the Secretary of the Interior) would negotiate and execute a repayment contract with the contracting parties — local water districts or other entities — for the Arkansas Valley Conduit. Communities seeking the extended 75-year repayment and reduced interest rate must demonstrate financial hardship to the Secretary's satisfaction. Non-federal entities may contribute funding during construction to reduce the repayable balance. Once the conduit is built, contracting parties assume all care, operation, maintenance, and replacement responsibilities. The applicable interest rate would be pegged at 50% of the rate the Secretary of the Treasury determines under section 2(c) of the underlying law.