A bill to direct the Secretary of the Interior to convey the Collbran Reclamation Project, Colorado, to the Ute Water Conservancy District and the Collbran Conservancy District, and for other purposes.

Directs the Secretary of the Interior, within 90 days after the enactment of this Act, to convey to the Ute Water Conservancy District and the Collbran Conservancy District (districts) all rights and interests of the United States in and to the Collbran Reclamation Project. Provides for: (1) payment to the United States by the districts of the net present value of outstanding repayment obligations of the districts; (2) deposit into the Treasury of such payment and authorized uses of such deposits; (3) Project operation and use by the districts for 40 years; (4) a required annual plan from the districts for operation of the Project during such period; and (5) conveyance subject to specified agreements between the United States and Colorado relating to the construction and operation of recreational facilities at Vega Reservoir, a Project area.

Requires the Project's power component and facilities to be operated in substantial conformity with its past operation. Provides for Project power marketing under existing agreements. Requires the districts, after the expiration of such agreements, to provide all Project power produced to the Western Area Power Administration at a specified rate. Grants a 40-year license to the districts for Project operation.

Makes the "major Federal action" provisions of the National Environmental Policy Act of 1969 inapplicable to such conveyance. Terminates certain previous agreements upon such conveyance.

Makes the districts liable for all acts or omissions relating to the operation and use of the Project subsequent to the conveyance. Holds the United States liable for latent Project defects.