Finish the Arkansas Valley Conduit Act
Summary
The "Finish the Arkansas Valley Conduit Act" amends Public Law 87-590, modifying repayment terms for the Arkansas Valley Conduit in Colorado. It aims to provide reliable domestic water supplies to communities lacking them. The bill adjusts the repayment contract, setting the amount equal to 35% of the conduit's cost.
Expected Effects
The act will change the repayment structure for the Arkansas Valley Conduit. It allows for a longer repayment period (up to 75 years) with simple interest for communities demonstrating financial hardship. This could make the project more financially feasible for local entities.
Potential Benefits
- Ensures reliable access to domestic water supplies for communities in Colorado.
- Extends the repayment period to 75 years, easing financial burdens on local communities.
- Sets interest rates at 50% of the Treasury rate, reducing overall repayment costs.
- Utilizes existing Fryingpan-Arkansas project facilities, potentially reducing costs.
- Encourages local entities to assume responsibility for the conduit's operation and maintenance.
Potential Disadvantages
- Places the burden of care, operation, maintenance, and replacement on contracting parties.
- Requires demonstration of financial hardship to qualify for extended repayment terms.
- May increase long-term costs due to the extended repayment period, despite lower interest rates.
- Could potentially strain the Fryingpan-Arkansas project facilities with increased usage.
- The 35% repayment requirement may still be a significant financial hurdle for some communities.
Constitutional Alignment
The act appears to align with the General Welfare Clause (Article I, Section 8) by aiming to provide essential water resources to communities in need. Congress has the power to appropriate funds and set conditions for infrastructure projects. The act does not seem to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).