[House Report 119-187]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-187
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FINISH THE ARKANSAS VALLEY CONDUIT ACT
_______
July 10, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Westerman, from the Committee on Natural Resources, submitted the
following
R E P O R T
[To accompany H.R. 131]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 131) to make certain modifications to the
repayment for the Arkansas Valley Conduit in the State of
Colorado, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Finish the Arkansas Valley Conduit
Act''.
SEC. 2. ARKANSAS VALLEY CONDUIT, COLORADO.
Public Law 87-590 (76 Stat. 389; 123 Stat. 1320) is amended--
(1) in the first section--
(A) in subsection (c), in the second sentence, by
striking ``or in the case of the Arkansas Valley
Conduit, payment in an amount equal to 35 percent of
the cost of the conduit that is comprised of revenue
generated by payments pursuant to a repayment contract
and revenue that may be derived from contracts for the
use of Fryingpan-Arkansas project excess capacity or
exchange contracts using Fryingpan-Arkansas project
facilities,''; and
(B) by adding at the end the following:
``(d) Arkansas Valley Conduit.--
``(1) Repayment contract.--To provide domestic water supplies
to communities and households that do not have reliable access
to domestic water supplies, the contract for the Arkansas
Valley Conduit shall provide for payment in an amount equal to
35 percent of the cost of the conduit, notwithstanding the
reclamation laws or any other provision of this Act. The
contract payments shall consist of--
``(A) funding provided during construction from any
entity other than the Secretary; and
``(B) based on a demonstration of financial hardship,
as determined by the Secretary, repayment of the
balance not covered under subparagraph (A) for a period
of not more than 75 years with simple interest at a
rate that is equal to 50 percent of the interest rate
determined by the Secretary of the Treasury under
section 2(c), including revenue derived from contracts
for the use of excess capacity or exchange contracts
using Fryingpan-Arkansas project facilities.
``(2) Operations and maintenance.--The contract for the
Arkansas Valley Conduit shall provide for the assumption by the
contracting parties of the care, operation, maintenance, and
replacement of the conduit.''; and
(2) in section 2(b)(3)(A), by striking ``this section'' and
inserting ``subsection (d) of the first section''.
Purpose of the Legislation
The purpose of H.R. 131 is to make certain modifications to
the repayment for the Arkansas Valley Conduit in the State of
Colorado.
Background and Need for Legislation
In 1962, President John F. Kennedy signed the Fryingpan-
Arkansas Project Act (P.L. 87-590) into law.\1\ This
legislation authorized the construction of the Fryingpan-
Arkansas project in Colorado ``for the purposes of supplying
water for irrigation, municipal, domestic, and industrial uses,
generating and transmitting hydroelectric power and energy, and
controlling floods.''\2\ The authorized infrastructure included
the Arkansas Valley Conduit (AVC), a series of pipelines that
would provide roughly 7,500 acre-feet of water per year,
serving as many as 50,000 people.\3\
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\1\U.S. Bureau of Reclamation. Missouri Basin and Arkansas-Rio
Grande-Texas Gulf--Eastern Colorado Area Office. Arkansas Valley
Conduit. https://www.usbr.gov/gp/ecao/avc/.
\2\P.L. 87-590.
\3\U.S. Bureau of Reclamation. Missouri Basin and Arkansas-Rio
Grande-Texas Gulf--Eastern Colorado Area Office. Arkansas Valley
Conduit. https://www.usbr.gov/gp/ecao/avc/.
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According to the Bureau of Reclamation (Reclamation), ``the
AVC was not constructed with the original project, primarily
because AVC beneficiaries were unable to repay all construction
costs as required in the original authorizing legislation.''\4\
The Omnibus Public Land Management Act of 2009 (P.L. 111-11)
amended the project's cost share to provide 100 percent federal
construction financing, and 35 percent nonfederal repayment
over a 50-year period, starting after project completion.\5\
Additionally, the economic challenges faced across the country
in recent years due to inflation have caused the total cost of
this project to nearly double from $640 million to $1.3
billion.\6\ H.R. 131, as amended, addresses these challenges by
cutting in half the interest payments for the nonfederal costs
and increasing the repayment period from 50 years to 75 years.
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\4\U.S. Bureau of Reclamation, Testimony before the Senate
Committee on Energy and Natural Resources, September, 11, 2024. https:/
/www.doi.gov/sites/default/files/documents/2024-09/91124-pending-
legislation-touton-hnr.pdf.
\5\Id.
\6\``Rep. Boebert Introduces Bill to Complete the Arkansas Valley
Conduit.'' Congresswoman Lauren Boebert. September 10, 2024. https://
boebert.house.gov/media/press-releases/rep-boebert-introduces-bill-
complete-arkansas-valley-conduit.
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Committee Action
H.R. 131 was introduced on January 3, 2025, by
Representative Lauren Boebert (R-CO). The bill was referred to
the Committee on Natural Resources. On June 25, 2025, the
Committee on Natural Resources met to consider the bill.
Representative Lauren Boebert (R-CO) offered an Amendment in
the Nature of a Substitute designated Boebert_024 ANS. The
Amendment in the Nature of a Substitute was agreed to by
unanimous consent. The bill, as amended, was ordered favorably
reported to the House of Representatives by unanimous consent.
Hearings
For the purposes of clause 3(c)(6) of House rule XIII, the
following hearing was used to develop or consider this measure:
hearing in the 118th Congress by the Subcommittee on Water,
Wildlife and Fisheries held on November 20, 2024.
Section-by-Section Analysis
Section 1. Short title
Section 1 names the legislation the ``Finish the Arkansas
Valley Conduit Act''.
Section 2. Arkansas Valley Conduit, Colorado
Section 2 amends the underlying law by cutting in half the
interest payments for the nonfederal costs and increasing the
repayment period from 50 years to 75 years.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII and
Congressional Budget Act
1. Cost of Legislation and the Congressional Budget Act.
Pursuant to clause 3(c)(2) of House rule XIII and section
308(a) of the Congressional Budget Act of 1974, and pursuant to
clause 3(c)(3) of House rule XIII and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received from the Director of the Congressional Budget
Office a budgetary analysis and a cost estimate of this bill.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to make certain modifications to the
repayment for the Arkansas Valley Conduit in the State of
Colorado.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Unfunded Mandates Reform Act Statement
An estimate of federal mandates prepared by the Director of
the Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act was not made available to the
Committee in time for the filing of this report. The Chair of
the Committee shall cause such estimate to be printed in the
Congressional Record upon its receipt by the Committee, if such
estimate is not publicly available on the Congressional Budget
Office website.
Existing Programs
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Preemption of State, Local or Tribal Law
Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
ACT OF AUGUST 16, 1962
(Public Law 87-590)
AN ACT To authorize the construction, operation, and maintenance by the
Secretary of the Interior of the Fryingpan-Arkansas project, Colorado.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That for the
purposes of supplying water for irrigation, municipal,
domestic, and industrial uses, generating and transmitting
hydroelectric power and energy, and controlling floods, and for
other useful and beneficial purposes incidental thereto,
including recreation and the conservation and development of
fish and wildlife, the Secretary of the Interior is authorized
to construct, operate, and maintain the Fryingpan-Arkansas
project, Colorado, in substantial accordance with the
engineering plans therefor set forth in House Document Numbered
187, Eighty-third Congress, modified as proposed in the
September 1959 report of the Bureau of Reclamation entitled
``Ruedi Dam and Reservoir, Colorado'', with such minor
modifications of, omissions from, or additions to the works
described in those reports as he may find necessary or proper
for accomplishing the objectives of the project. Such
modifications or additions as may be required in connection
therewith shall not, however, extend to or contemplate the so-
called Gunnison-Arkansas project; and nothing in this Act shall
constitute a commitment, real or implied, to exportations of
water from the Colorado River system in Colorado beyond those
required for projects heretofore or herein authorized. In
constructing operating, and maintaining the Fryingpan-Arkansas
project the Secretary shall be governed by the Federal
reclamation laws (Act of June 17, 1902; 32 Stat. 388, and Acts
amendatory thereof or supplementary thereto).
(b) A reservoir at the Ruedi site on the Fryingpan River with
an active capacity of approximately one hundred thousand acre-
feet shall be constructed in lieu of the reservoir on the
Roaring Pork River at the Aspen site contemplated in House
Document Numbered 187, Eighty-third Congress. The Secretary
shaIl investigate and prepare a report on the feasibility of a
replacement reservoir at or near the Ashcroft site on Castle
Creek, a tributary of the Roaring Fork River above its
confluence with the Fryingpan River with a capacity of
approximately five thousand acre-feet, but construction thereof
shall not be commenced unless said report, which shall be
submitted to the President and the Congress, demonstrates the
feasibility of said reservoir and is approved by the Congress.
The Secretary shall expedite completion of his planning report
on the Basalt project, Colorado, as a participating project
under the Act of April 11, 1956 (70 Stat. 105), and said report
shall have the priority status of the reports to which
reference is made in section 2 of said Act.
(c) No part of the single purpose municipal and industrial
water supply works involved in the Fryingpan-Arkansas project
shall be constructed by the Secretary in the absence of
evidence satisfactory to him that it would be infeasible for
the communities involved to construct the works themselves,
singly or jointly. In the event it is determined that these
works, or any of them, are to be constructed by the Secretary,
a contract providing, among other things, for payment of the
actual cost thereof, [or in the case of the Arkansas Valley
Conduit, payment in an amount equal to 35 percent of the cost
of the conduit that is comprised of revenue generated by
payments pursuant to a repayment contract and revenue that may
be derived from contracts for the use of Fryingpan-Arkansas
project excess capacity or exchange contracts using Fryingpan-
Arkansas project facilities,] with interest as hereinafter
provided, as rapidly as is consistent with the contracting
parties' ability to pay, but in any event, within fifty years
from the time the works are first available for the delivery of
water, and for assumption by the contracting parties of the
care, operation, maintenance, and replacement of the works
shall be a condition precedent to construction thereof.
(d) Arkansas Valley Conduit.--
(1) Repayment contract.--To provide domestic water
supplies to communities and households that do not have
reliable access to domestic water supplies, the
contract for the Arkansas Valley Conduit shall provide
for payment in an amount equal to 35 percent of the
cost of the conduit, notwithstanding the reclamation
laws or any other provision of this Act. The contract
payments shall consist of--
(A) funding provided during construction from
any entity other than the Secretary; and
(B) based on a demonstration of financial
hardship, as determined by the Secretary,
repayment of the balance not covered under
subparagraph (A) for a period of not more than
75 years with simple interest at a rate that is
equal to 50 percent of the interest rate
determined by the Secretary of the Treasury
under section 2(c), including revenue derived
from contracts for the use of excess capacity
or exchange contracts using Fryingpan-Arkansas
project facilities.
(2) Operations and maintenance.--The contract for the
Arkansas Valley Conduit shall provide for the
assumption by the contracting parties of the care,
operation, maintenance, and replacement of the conduit.
Sec. 2. (a) Contracts to repay the portion of the cost of the
frying-arkansas project allocated to irrigation and assigned to
be repaid py irrigation water users (exclusive of such portion
of said cost as may be derived from temporary water supply
contracts or from other sources) which are entered into
pursuant to subsection (d), section 9, of the reclamation
project act of 1939 (53 stat. 1187, as amended, shall provide
for a basic repayment period of not more than fifty years after
completion of construction and shall not provide for any
development period. such contracts shall be entered into only
with organizations which have the capacity to levy assessments
upon all taxable real property located within their boundaries.
(b) Rates.--
(1) In general.--Rates charged for commercial power
and for water for municipal, domestic or industrial use
or for the use of facilities for the storage and/or
delivery of such water shall be designed to return to
the United States, within not more than fifty years
from the completion of each unit of the project which
serves those purposes, those costs of constructing,
operating and maintaining that unit which are allocated
to said purposes and interest on the unamortized
balance of said construction allocation and, in
addition, within the period fixed by subsection (a) of
this section, so much of the irrigation allocation as
is beyond the ability of the water users and their
organizations to repay.
(2) Ruedi dam and reservoir, fountain valley
pipeline, and south outlet works at pueblo dam and
reservoir.--
(A) In general.--Notwithstanding the
reclamation laws, until the date on which the
payments for the Arkansas Valley Conduit under
paragraph (3) begin, any revenue that may be
derived from contracts for the use of
Fryingpan-Arkansas project excess capacity or
exchange contracts using Fryingpan-Arkansas
project facilities shall be credited towards
payment of the actual cost of Ruedi Dam and
Reservoir, the Fountain Valley Pipeline, and
the South Outlet Works at Pueblo Dam and
Reservoir plus interest in an amount determined
in accordance with this section.
(B) Effect.--Nothing in the Federal
reclamation law (the Act of June 17, 1902 (32
Stat. 388, chapter 1093), and Acts supplemental
to and amendatory of that Act (43 U.S.C. 371 et
seq.)) prohibits the concurrent crediting of
revenue (with interest as provided under this
section) towards payment of the Arkansas Valley
Conduit as provided under this paragraph.
(3) Arkansas valley conduit.--
(A) Use of revenue.--Notwithstanding the
reclamation laws, any revenue derived from
contracts for the use of Fryingpan-Arkansas
project excess capacity or exchange contracts
using Fryingpan-Arkansas project facilities
shall be credited towards payment of the actual
cost of the Arkansas Valley Conduit plus
interest in an amount determined in accordance
with [this section] subsection (d) of the first
section .
(B) Adjustment of rates.--Any rates charged
under this section for water for municipal,
domestic, or industrial use or for the use of
facilities for the storage or delivery of water
shall be adjusted to reflect the estimated
revenue derived from contracts for the use of
Fryingpan-Arkansas project excess capacity or
exchange contracts using Fryingpan-Arkansas
project facilities.
(c) The interest rate on the unamortized balance of the
commercial power and municipal, domestic, and industrial water
supply allocations shall be determined by the Secretary of the
Treasury, as of the beginning of the fiscal year in which
construction is initiated, on the basis of the computed average
interest rate payable by the Treasury upon its outstanding
marketable public obligations, which are neither due nor
callable for redemption for fifteen.years from the date of
issue.
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