A bill to provide for the transfer of the Platoro Reservoir to the Conejos Water Conservancy District of the State of Colorado and for the enhancement of fish and wildlife habitat on the Conejos River.

Directs the Secretary of the Interior to enter into an agreement for the transfer of the Platoro Reservoir to the Conejos Water Conservancy District, Colorado, upon the early payout of the repayment obligation on a lump-sum basis. Defines the Platoro Reservoir as the Platoro Dam and Reservoir Unit of the Conejos Division of the San Luis Valley project.

Transfers to the District: (1) all lands beneath the Platoro Dam and Reservoir up to the high water line; (2) land and improvements at the operation and maintenance site in the townsite of Platoro, Colorado, including the shop and caretaker house; and (3) all associated structures and all project operating facilities and equipment.

Reserves to the United States: (1) the right to make recreational use of the Platoro Reservoir so long as such use does not interfere with its use for irrigation and flood control; and (2) a reversionary interest in the transferred land in the event such lands are no longer used for reservoir purposes.

Relieves the United States of responsibility and liability associated with the operation and maintenance of the project except: (1) recreation with respect to the Reservoir; and (2) flood control administration by the Secretary of the Army, acting through the Chief of Engineers.

Provides for a reduction in the repayment obligation in exchange for instream flows in the Conejos River.

Requires the Secretary of the Army to retain authority for the management of the Platoro Dam and Reservoir for flood control purposes on the Conejos River.