Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 22-0178.01 Jennifer Berman x3286
SENATE BILL 22-028
Senate Committees House Committees
Agriculture & Natural Resources
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF THE GROUNDWATER COMPACT101
COMPLIANCE AND SUSTAINABILITY FUND .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Water Resources Review Committee. The bill creates the
groundwater compact compliance and sustainability fund to help finance
groundwater use reduction efforts in the Rio Grande river basin and the
Republican river basin, such as efforts to buy and retire irrigation wells
and irrigated acreage in the river basins. The Colorado water conservation
board administers the fund and can make expenditures from the fund
SENATE
2nd Reading Unamended
February 15, 2022
SENATE SPONSORSHIP
Simpson and Sonnenberg, Bridges, Coram, Donovan, Jaquez Lewis
HOUSE SPONSORSHIP
Roberts and Catlin, McCormick, McKean, McLachlan
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. based on recommendations from the board of directors of the Rio Grande
water conservation district or the Republican river water conservation
district. A conservation district's recommendations must first be approved
by the state engineer.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 37-60-134 as2
follows:3
37-60-134. Groundwater compact compliance and4
sustainability fund - creation - conservation district5
recommendations for expenditures - state engineer approval -6
legislative declaration - repeal. (1) T
HE GENERAL ASSEMBLY HEREBY :7
(a) F
INDS AND DETERMINES THAT:8
(I) G
ROUNDWATER WELL PUMPING IN CERTAIN AREAS OF THE9
STATE PROVIDES THE PRINCIPAL SOURCE OF IRRIGATION WATER SUPPLY10
BUT CONSEQUENTLY MAY REDUCE THE QUANTITY OF GROUNDWATER IN11
THE AQUIFERS AND MAY IMPACT THE HYDROGEOLOGY OF CONNECTED12
SURFACE STREAMS, RESULTING IN REDUCED STREAM FLOWS THAT13
THREATEN SENIOR WATER RIGHTS AND THE STATE 'S COMPLIANCE WITH14
INTERSTATE COMPACTS;15
(II) G
ROUNDWATER USE IS EXTENSIVE IN FOUR OF THE EIGHT16
MAJOR RIVER BASINS IN COLORADO, NAMELY THE RIO GRANDE,17
R
EPUBLICAN, ARKANSAS, AND SOUTH PLATTE RIVER BASINS, AND SUCH18
GROUNDWATER USE IS CLOSELY TIED TO THE AGRICULTURAL ECONOMY IN19
THOSE AREAS;20
(III) P
REVIOUS UNITED STATES SUPREME COURT LITIGATION21
INITIATED IN NEIGHBORING STATES REGARDING COMPACT COMPLIANCE BY22
THE RIO GRANDE, ARKANSAS, AND REPUBLICAN RIVER BASINS HAVE23
028-2- INVOLVED COMPLAINTS REGARDING THE EXTENT OF GROUNDWATER USE1
IN THOSE AREAS. SETTLEMENTS OF THE LAWSUITS IN THE RIO GRANDE2
AND REPUBLICAN RIVER BASINS RESULTED IN THE CREATION OF WATER3
CONSERVATION DISTRICTS TO ADDRESS GROUNDWATER MANAGEMENT4
AND CONSERVATION.5
(IV) D
ESPITE THE CONSERVATION DISTRICTS ' AND THE STATE'S6
DILIGENT EFFORTS TO IMPLEMENT STRATEGIES TO REDUCE GROUNDWATER7
USE, INCLUDING THE CREATION OF SIX GROUNDWATER M ANAGEMENT8
SUBDISTRICTS IN THE RIO GRANDE RIVER BASIN AND THE USE OF VARIOUS9
FEDERAL, STATE, AND LOCAL FUNDING SOURCES TO INCENTIVIZE THE10
PURCHASE AND RETIREMENT OF IRRIGATED ACREAGE , EXTENSIVE11
GROUNDWATER USE IN THE RIO GRANDE AND REPUBLICAN RIVER BASINS12
CONTINUES TO THREATEN AQUIFER SUSTAINABILITY , SENIOR WATER13
RIGHTS, AND COMPACT COMPLIANCE ;14
(V) A
S PART OF THE EFFORTS TO REDUCE GROUNDWATER USE , THE15
STATE ENTERED INTO A STIPULATION WITH KANSAS AND NEBRASKA IN16
2016
IN WHICH THE STATE AGREED TO RETIRE TWENTY -FIVE THOUSAND17
ACRES OF IRRIGATED ACREAGE IN THE REPUBLICAN RIVER BASIN BY 2029,18
AND, PURSUANT TO STANDARDS FOR GROUNDWATER MANAGEMENT SET19
FORTH IN SECTION 37-92-501 (4), THE GROUNDWATER MANAGEMENT20
SUBDISTRICT NUMBER 1 CREATED IN THE RIO GRANDE WATER21
CONSERVATION DISTRICT IS REQUIRED TO RETIRE FORTY THOUSAND ACRES22
OF IRRIGATED ACREAGE BY 2029;23
(VI) T
O DATE, ONLY ABOUT THREE THOUSAND ACRES HAVE BEEN24
RETIRED IN THE REPUBLICAN RIVER BASIN AND ONLY ABOUT THIRTEEN25
THOUSAND ACRES HAVE BEEN RETIRED IN THE RIO GRANDE RIVER BASIN;26
AND27
028
-3- (VII) IF THE ACREAGE RETIREMENT REQUIREMENTS IN THE RIO1
G
RANDE AND REPUBLICAN RIVER BASINS ARE NOT MET, THE STATE MIGHT2
BE REQUIRED TO MANDATE GROUNDWATER USE REDUCTIONS FOR3
PRODUCTIVE FARMLAND IN THE BASINS TO ACHIEVE COMPACT4
COMPLIANCE, THUS THREATENING THE AGRICULTURAL ECONOMIES IN THE5
RIVER BASINS; AND6
(b) D
ECLARES THAT:7
(I) G
REATER FUNDING IS NEEDED TO INCENTIVIZE THE RETIREMENT8
OF IRRIGATION WELLS AND IRRIGATED ACREAGE TO COMPLY WITH THE9
GROUNDWATER USE REDUCTION REQUIREMENTS ;10
(II) T
O ACCELERATE THE STATE 'S PROGRESS IN RETIRING11
IRRIGATED ACREAGE IN THE REPUBLICAN AND RIO GRANDE RIVER BASINS12
IN ORDER TO MEET STATE-MANDATED DEADLINES, A STATE FUND SHOULD13
BE CREATED TO PROVIDE FINANCIAL INCENTIVES AND ASSISTANCE FOR THE14
BUYING AND RETIRING OF IRRIGATION WELLS AND IRRIGATED ACREAGE IN15
THE BASINS;16
(III) S
UCH USE OF STATE MONEY WOULD ALSO HELP PROMOTE17
CONSERVATION AND SUSTAINABILITY OF GROUNDWATER RESOURCES IN18
FURTHERANCE OF THE STATE WATER PLAN DEVELOPED PURSUANT TO19
SECTION 37-60-106.3; AND20
(IV) T
HE BOARD SHOULD ADMINISTER THE FUND AND DISTRIBUTE21
MONEY FROM THE FUND BASED ON RECOMMENDATIONS OF THE BOARD OF22
DIRECTORS OF THE RIO GRANDE WATER CONSERVATION DISTRICT23
APPOINTED PURSUANT TO SECTION 37-48-103 OR THE BOARD OF24
DIRECTORS OF THE REPUBLICAN RIVER WATER CONSERVATION DISTRICT25
APPOINTED PURSUANT TO SECTION 37-50-104, WHICH RECOMMENDATIONS26
THE STATE ENGINEER SHOULD FIRST REVIEW .27
028
-4- (2) (a) THE GROUNDWATER COMPACT COMPLIANCE AND1
SUSTAINABILITY FUND, REFERRED TO IN THIS SECTION AS THE "FUND", IS2
HEREBY CREATED IN THE STATE TREASURY AND CONSISTS OF MONEY THAT3
THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND ;4
MONEY THAT THE STATE MAY RECEIVE FROM FEDERAL SOURCES ,5
INCLUDING FEDERAL SOURCES OF STIMULUS FUNDING OR RECOVERY6
FUNDING; AND ANY GIFTS, GRANTS, OR DONATIONS THAT THE BOARD7
SEEKS, ACCEPTS, AND EXPENDS FOR THE PURPOSES SET FORTH IN THIS8
SECTION. THE MONEY IN THE FUND IS SUBJECT TO ANNUAL APPROPRIATION9
BY THE GENERAL ASSEMBLY .10
(b) T
HE BOARD SHALL ADMINISTER THE FUND TO IMPLEMENT THE11
GROUNDWATER COMPACT COMPLIANCE AND SUSTAINABILITY PURPOSES12
ESTABLISHED IN ACCORDANCE WITH THIS SECTION . THE BOARD MAY USE13
UP TO FIVE PERCENT OF THE MONEY ANNUALLY APPROPRIATED TO THE14
FUND TO PAY THE BOARD'S DIRECT AND INDIRECT COSTS, AS WELL AS THE15
DIRECT AND INDIRECT COSTS INCURRED BY THE RIO GRANDE WATER16
CONSERVATION DISTRICT, THE REPUBLICAN RIVER WATER CONSERVATION17
DISTRICT, AND THE STATE ENGINEER IN IMPLEMENTING THIS SECTION .18
(3) T
HE BOARD MAY DISBURSE MONEY FROM THE FUND FOR19
PURPOSES RELATED TO COMPACT COMPLIANCE AND GROUNDWATER20
RESOURCE SUSTAINABILITY AND CONSERVATION , INCLUDING THE21
FINANCING OF PROGRAMS DIRECTED AT BUYING AND RETIRING IRRIGATED22
ACREAGE TO REDUCE GROUNDWATER USE . THE BOARD OF DIRECTORS OF23
THE RIO GRANDE WATER CONSERVATION DISTRICT AND THE BOARD OF24
DIRECTORS OF THE REPUBLICAN RIVER WATER CONSERVATION DISTRICT ,25
IN COLLABORATION WITH THE BOARD AND THE STATE ENGINEER , MAY26
EACH ESTABLISH ELIGIBILITY AND APPLICATION CRITERIA FOR27
028
-5- DISBURSEMENT OF MONEY FROM THE FUND . EACH BOARD OF DIRECTORS1
SHALL POST ON ITS WEBSITE ANY CRITERIA ESTABLISHED PURSUANT TO2
THIS SUBSECTION (3).3
(4) T
HE BOARD SHALL DISBURSE MONEY FROM THE FUND BASED4
ON RECOMMENDATIONS FROM THE BOARD OF DIRECTORS OF EITHER THE5
R
IO GRANDE WATER CONSERVATION DISTRICT OR THE REPUBLICAN RIVER6
WATER CONSERVATION DISTRICT , WHICH RECOMMENDATIONS MUST FIRST7
BE APPROVED BY THE STATE ENGINEER .8
(5) I
F ALL GROUNDWATER REDUCTION REQUIREMENTS9
ESTABLISHED BY FEDERAL OR STATE COURT ORDER OR STIPULATION HAVE10
BEEN MET AND ALL STATUTORILY M ANDATED GROUNDWATER REDUCTION11
STANDARDS HAVE BEEN ACHIEVED , THIS SECTION WILL BE REPEALED. THE12
BOARD SHALL NOTIFY THE REVISOR OF STATUTES IN WRITING OF THE DATE13
WHEN THE CONDITIONS SPECIFIED IN THIS SUBSECTION (5) HAVE14
OCCURRED BY EMAILING THE NOTICE TO15
REVISOROFSTATUTES.GA@STATE.CO.US. THE BOARD SHALL ALSO SEND A16
COPY OF THE NOTICE TO THE STATE TREASURER WHO , WITHIN THREE DAYS17
AFTER RECEIVING THE NOTICE, SHALL TRANSFER ANY MONEY REMAINING18
IN THE FUND TO THE GENERAL FUND . THIS SECTION IS REPEALED,19
EFFECTIVE UPON THE DATE IDENTIFIED IN THE NOTICE OR , IF THE NOTICE20
DOES NOT SPECIFY THAT DATE, UPON THE DATE OF THE NOTICE TO THE21
REVISOR OF STATUTES.22
SECTION 2. Safety clause. The general assembly hereby finds,23
determines, and declares that this act is necessary for the immediate24
preservation of the public peace, health, or safety.25
028
-6-