A bill to authorize the construction of the Arkansas Valley Conduit in the State of Colorado, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Arkansas Valley Conduit Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) Public Law 87-590 (76 Stat. 389) authorized the 
        Fryingpan-Arkansas Project, including construction of the 
        Arkansas Valley Conduit, a pipeline extending from Pueblo 
        Reservoir, Pueblo, Colorado to Lamar, Colorado;
            (2) the Arkansas Valley Conduit was never built, partly 
        because of the inability of local communities to pay 100 
        percent of the costs of construction of the Arkansas Valley 
        Conduit;
            (3) in furtherance of the goals and authorization of the 
        Fryingpan-Arkansas Project, it is necessary to provide separate 
        authorization for the construction of the Arkansas Valley 
        Conduit;
            (4) the construction of the Arkansas Valley Conduit is 
        necessary for the continued viability of southeast Colorado; 
        and
            (5) the Arkansas Valley Conduit would provide the 
        communities of southeast Colorado with safe, clean, and 
        affordable water.
    (b) Purposes.--The purposes of this Act are--
            (1) to ensure a safe and adequate water supply for the 
        beneficiaries identified in Public Law 87-590 (76 Stat. 389) 
        and related authorizing documents and subsequent studies; and
            (2) to establish a cost-sharing requirement for the 
        construction of the Arkansas Valley Conduit.

SEC. 3. ARKANSAS VALLEY CONDUIT, COLORADO.

    (a) In General.--The Secretary of the Interior (referred to in this 
Act as the ``Secretary'') shall plan, design, and construct a water 
delivery pipeline, and branch lines as needed, from a location in the 
vicinity (as determined by the Secretary) of Pueblo Reservoir, Pueblo, 
Colorado to a location in the vicinity (as determined by the Secretary) 
of Lamar, Colorado, to be known as the ``Arkansas Valley Conduit'', 
without regard to the cost-ceiling for the Fryingpan-Arkansas Project 
established under section 7 of Public Law 87-590 (76 Stat. 393).
    (b) Lead Non-Federal Entity.--
            (1) Designation.--The Southeastern Colorado Water 
        Conservancy District, or a designee of the Southeastern 
        Colorado Water Conservancy District that is recognized under 
        State law as an entity that has taxing authority, shall be the 
        lead non-Federal entity for the Arkansas Valley Conduit.
            (2) Duties.--The lead non-Federal entity shall--
                    (A) act as the official agent of the Arkansas 
                Valley Conduit;
                    (B) pay--
                            (i) the non-Federal share of any increased 
                        costs required under subsection (e)(2)(C); and
                            (ii) the non-Federal share of construction 
                        costs under subsection (e)(2); and
                    (C) pay costs relating to, and perform, the 
                operations, maintenance, and replacement of the 
                Arkansas Valley Conduit.
    (c) Cooperation.--To the maximum extent practicable during the 
planning, design, and construction of the Arkansas Valley Conduit, the 
Secretary shall collaborate and cooperate with the United States Army 
Corps of Engineers, other Federal agencies, and non-Federal entities.
    (d) Cost Estimate.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary, in cooperation with the 
        lead non-Federal entity, shall prepare an estimate of the total 
        costs of constructing the Arkansas Valley Conduit.
            (2) Actual costs.--If the actual costs of construction 
        exceed the estimated costs, the difference between the actual 
        costs and the estimated costs shall be apportioned in 
        accordance with subsection (e)(2)(C).
            (3) Agreement on estimate and design.--The estimate 
        prepared under paragraph (1), and the final design for the 
        Arkansas Valley Conduit, shall be--
                    (A) subject to the agreement of the Secretary and 
                the lead non-Federal entity;
                    (B) developed in cooperation with the lead non-
                Federal entity; and
                    (C) consistent with commonly accepted engineering 
                practices.
    (e) Cost-Sharing Requirement.--
            (1) Federal share.--
                    (A) In general.--The Federal share of the total 
                costs of the planning, design, and construction of the 
                Arkansas Valley Conduit shall be 80 percent.
                    (B) Increased costs.--The Federal share of any 
                increased costs that are a result of fundamental design 
                changes conducted at the request of any person other 
                than the lead non-Federal entity shall be 100 percent.
            (2) Non-federal share.--
                    (A) Non-federal share.--The non-Federal share of 
                the total costs of the planning, design, and 
                construction of the Arkansas Valley Conduit shall be 20 
                percent.
                    (B) Form.--Up to 100 percent of the non-Federal 
                share may be in the form of in-kind contributions or 
                tasks that are identified in the cost estimate prepared 
                under subsection (d)(1) as necessary for the planning, 
                design, and construction of the Arkansas Valley 
                Conduit.
                    (C) Increased costs.--
                            (i) Fundamental design changes.--The lead 
                        non-Federal entity shall pay any increased 
                        costs that are a result of fundamental design 
                        changes conducted at the request of the lead 
                        non-Federal entity.
                            (ii) Other causes.--For any increased costs 
                        that are from causes (including increased 
                        supply and labor costs and unforseen field 
                        changes) other than fundamental design changes 
                        referred to in clause (i) and paragraph 
                        (1)(B)--
                                    (I) the Federal share shall be 80 
                                percent; and
                                    (II) the non-Federal share shall be 
                                20 percent.
                    (D) Up-front payment.--Not later than 180 days 
                after the date of completion of the cost-estimate under 
                subsection (d), the Secretary and the non-Federal 
                entity may enter into an agreement under which--
                            (i) the Secretary pays 100 percent of the 
                        non-Federal share on behalf of the non-Federal 
                        entity; and
                            (ii) the non-Federal entity reimburses the 
                        Secretary for the funds paid by the Secretary 
                        in accordance with the terms of the agreement.
                    (E) Timing.--Except as provided in subparagraph 
                (D), the non-Federal share shall be paid in accordance 
                with a schedule established by the Secretary that--
                            (i) takes into account the capability of 
                        the applicable non-Federal entities to pay; and
                            (ii) provides for full payment of the non-
                        Federal share by a date that is not later than 
                        50 years after the date on which the Arkansas 
                        Valley Conduit is capable of delivering water.
    (f) Transfer on Completion.--On completion of the Arkansas Valley 
Conduit, as certified in an agreement between the Secretary and the 
lead non-Federal entity, the Secretary shall transfer ownership of the 
Arkansas Valley Conduit to the lead non-Federal entity.
    (g) Applicable Law.--Except as provided in this Act, Public Law 87-
590 (76 Stat. 389) and related authorizing documents and subsequent 
studies shall apply to the planning, design, and construction of the 
Arkansas Valley Conduit.
    (h) Water Rights.--Nothing in this Act affects any State water law 
or interstate compact.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated such sums 
as are necessary to carry out this Act.
    (b) Limitation.--Amounts made available under subsection (a) shall 
not be used for the operation or maintenance of the Arkansas Valley 
Conduit.

Summary: Arkansas Valley Conduit Act - Directs the Secretary of the Interior to plan, design, and construct a water delivery pipeline, to be known as the Arkansas Valley Conduit, from a location in the vicinity of Pueblo Reservoir, Pueblo, to Lamar, Colorado.

Designates the Southeastern Colorado Water Conservancy District, or its designee that is recognized under state law as an entity that has taxing authority, as the lead non-federal entity for the Conduit. Directs such entity to: (1) act as the official agent of the Conduit; (2) pay the non-federal share of any increased costs, including construction costs, under this Act; and (3) pay costs for and perform the operations, maintenance, and replacement of the Conduit. Sets the federal share of: (1) total planning, design, and construction costs at 80%; and (2) any increased costs that are a result of fundamental design changes conducted at the request of anyone other than such entity at 100%. Directs the Secretary, upon completion, to transfer ownership of the Conduit to such entity.