Authorizes the Secretary of the Interior, through the Bureau of Reclamation, to conduct a study to determine the most feasible method of meeting water supply and related storage requirements within the area served by the Fryingpan-Arkansas Project, Colorado (the Project), including the potential enlargement of Fryingpan-Arkansas facilities. Directs the Secretary to take into consideration the Preferred Storage Options Plan Report published September 21, 2000, by the Southeastern Colorado Water and Storage Needs Assessment Enterprise and Final PSOP Implementation Committee Report dated April 19, 2001 (PSOP Reports), the intergovernmental agreement dated May 27, 2004 among the Cities of Pueblo, Aurora, Fountain, and Colorado Springs, the Southeastern Colorado Water Conservancy District, and the Board of Water Works of Pueblo, Colorado, and the need to ensure compliance with the Arkansas River Compact as executed by the States of Colorado and Kansas on December 14, 1948.
Authorizes the Secretary to enter into contracts with any entity, including those operating or participating in a water bank established pursuant to Colorado law, for the use of excess capacity in the Project for the purpose of diverting, storing, impounding, pumping, exchanging, or conveying non-project water for irrigation or domestic, municipal, or industrial purposes. Requires the Secretary to take into consideration the PSOP Reports and the need to ensure compliance with the Arkansas River Compact.
Directs the Secretary to establish charges for the use of excess capacity.
Sets forth provisions regarding the diversion, storage, impoundment, pumping, exchange, or conveyance of non-project water.