Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0178.01 Jennifer Berman x3286
SENATE BILL 22-028
Senate Committees House Committees
Agriculture & Natural Resources Agriculture, Livestock, & Water
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF THE GROUNDWATER COMPACT101
COMPLIANCE AND SUSTAINABILITY
FUND, AND, IN CONNECTION102
THEREWITH, MAKING AN APPROPRIATION .103
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
HOUSE
Amended 2nd Reading
April 27, 2022
SENATE
3rd Reading Unamended
February 17, 2022
SENATE
2nd Reading Unamended
February 15, 2022
SENATE SPONSORSHIP
Simpson and Sonnenberg, Bridges, Coram, Donovan, Jaquez Lewis, Buckner, Cooke,
Fields, Garcia, Gardner, Gonzales, Hisey, Holbert, Kirkmeyer, Lee, Liston, Lundeen,
Pettersen, Priola, Rankin, Scott, Smallwood, Story, Winter, Woodward, Zenzinger
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. board administers the fund and can make expenditures from the fund
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 -
transfer - definitions - reports - repeal.7
(1) T
HE GENERAL ASSEMBLY HEREBY :8
(a) F
INDS AND DETERMINES THAT:9
(I) G
ROUNDWATER WELL PUMPING IN CERTAIN AREAS OF THE10
STATE PROVIDES THE PRINCIPAL SOURCE OF IRRIGATION WATER SUPPLY11
BUT CONSEQUENTLY MAY REDUCE THE QUANTITY OF GR OUNDWATER IN12
THE AQUIFERS AND MAY IMPACT THE HYDROGEOLOGY OF CONNECTED13
SURFACE STREAMS, RESULTING IN REDUCED STREAM FLOWS THAT14
THREATEN SENIOR WATER RIGHTS AND THE STATE 'S COMPLIANCE WITH15
INTERSTATE COMPACTS;16
(II) G
ROUNDWATER USE IS EXTENSIVE IN FOUR OF THE EIGHT17
MAJOR RIVER BASINS IN COLORADO, NAMELY THE RIO GRANDE,18
R
EPUBLICAN, ARKANSAS, AND SOUTH PLATTE RIVER BASINS, AND SUCH19
GROUNDWATER USE IS CLOSELY TIED TO THE AGRICULTURAL ECONOMY IN20
THOSE AREAS;21
(III) P
REVIOUS UNITED STATES SUPREME COURT LITIGATION22
INITIATED IN NEIGHBORING STATES REGARDING COMPACT COMPLIANCE BY23
028-2- THE RIO GRANDE, ARKANSAS, AND REPUBLICAN RIVER BASINS HAVE1
INVOLVED COMPLAINTS REGARDING THE EXTENT OF GROUNDWATER USE2
IN THOSE AREAS. SETTLEMENTS OF THE LAWSUITS IN THE RIO GRANDE3
AND REPUBLICAN RIVER BASINS RESULTED IN THE CREATION OF WATER4
CONSERVATION DISTRICTS TO ADDRESS GROUNDWATER MANAGEMENT5
AND CONSERVATION.6
(IV) D
ESPITE THE CONSERVATION DISTRICTS ' AND THE STATE'S7
DILIGENT EFFORTS TO IMPLEMENT STRATEGIES TO REDUCE GROUNDWATER8
USE, INCLUDING THE CREATION OF SIX GROUNDWATER MANAGEMENT9
SUBDISTRICTS IN THE RIO GRANDE RIVER BASIN AND THE USE OF VARIOUS10
FEDERAL, STATE, AND LOCAL FUNDING SOURCES TO INCENTIVIZE THE11
PURCHASE AND RETIREMENT OF IRRIGATED ACREAGE , EXTENSIVE12
GROUNDWATER USE IN THE RIO GRANDE AND REPUBLICAN RIVER BASINS13
CONTINUES TO THREATEN AQUIFER SUSTAINABILITY , SENIOR WATER14
RIGHTS, AND COMPACT COMPLIANCE ;15
(V) A
S PART OF THE EFFORTS TO REDUCE GROUNDWATER USE , THE16
STATE ENTERED INTO A STIPULATION WITH KANSAS AND NEBRASKA IN17
2016
IN WHICH THE STATE AGREED TO RETIRE TWENTY -FIVE THOUSAND18
ACRES OF IRRIGATED ACREAGE IN THE REPUBLICAN RIVER BASIN BY 2029,19
AND, PURSUANT TO STANDARDS FOR GROUNDWATER MANAGEMENT SET20
FORTH IN SECTION 37-92-501 (4), THE GROUNDWATER MANAGEMENT21
SUBDISTRICT NUMBER 1 CREATED IN THE RIO GRANDE WATER22
CONSERVATION DISTRICT IS REQUIRED TO RETIRE FORTY THOUSAND ACRES23
OF IRRIGATED ACREAGE BY 2029;24
(VI) T
O DATE, ONLY ABOUT THREE THOUSAND ACRES HAVE BEEN25
RETIRED IN THE REPUBLICAN RIVER BASIN AND ONLY ABOUT THIRTEEN26
THOUSAND ACRES HAVE BEEN RETIRED IN THE RIO GRANDE RIVER BASIN;27
028
-3- AND1
(VII) I
F THE ACREAGE RETIREMENT REQUIREMENTS IN THE RIO2
G
RANDE AND REPUBLICAN RIVER BASINS ARE NOT MET, THE STATE MIGHT3
BE REQUIRED TO MANDATE GROUNDWATER USE REDUCTIONS FOR4
PRODUCTIVE FARMLAND IN THE BASINS TO ACHIEVE COMPACT5
COMPLIANCE, THUS THREATENING THE AGRICULTURAL ECONOMIES IN THE6
RIVER BASINS; AND7
(b) D
ECLARES THAT:8
(I) G
REATER FUNDING IS NEEDED TO INCENTIVIZE THE RETIREMENT9
OF IRRIGATION WELLS AND IRRIGATED ACREAGE TO COMPLY WITH THE10
GROUNDWATER USE REDUCTION REQUIREMENTS ;11
(II) T
O ACCELERATE THE STATE 'S PROGRESS IN RETIRING12
IRRIGATED ACREAGE IN THE REPUBLICAN AND RIO GRANDE RIVER BASINS13
IN ORDER TO MEET STATE-MANDATED DEADLINES, A STATE FUND SHOULD14
BE CREATED TO PROVIDE FINANCIAL INCENTIVES AND ASSISTANCE FOR THE15
BUYING AND RETIRING OF IRRIGATION WELLS AND IRRIGATED ACREAGE IN16
THE BASINS;17
(III) S
UCH USE OF STATE MONEY WOULD ALSO HELP PROMOTE18
CONSERVATION AND SUSTAINABILITY OF GROUNDWATER RESOURCES IN19
FURTHERANCE OF THE STATE WATER PLAN DEVELOPED PURSUANT TO20
SECTION 37-60-106.3; AND21
(IV) T
HE BOARD SHOULD ADMINISTER THE FUND AND DISTRIBUTE22
MONEY FROM THE FUND BASED ON RECOMMENDATIONS OF THE BOARD OF23
DIRECTORS OF THE RIO GRANDE WATER CONSERVATION DISTRICT24
APPOINTED PURSUANT TO SECTION 37-48-103 OR THE BOARD OF25
DIRECTORS OF THE REPUBLICAN RIVER WATER CONSERVATION DISTRICT26
APPOINTED PURSUANT TO SECTION 37-50-104, WHICH RECOMMENDATIONS27
028
-4- THE STATE ENGINEER SHOULD FIRST REVIEW .1
(2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT :2
(a) THIS SECTION IS INTENDED TO RESPOND TO THE NEGATIVE3
ECONOMIC IMPACTS CAUSED BY THE COVID-19 PANDEMIC AND4
RESULTING PUBLIC HEALTH EMERGENCY BY PROVIDING FINANCIAL5
INCENTIVES FOR THE VOLUNTARY RETIREMENT OF IRRIGATED ACREAGE6
AND WELLS IN ORDER TO MAINTAIN INTERSTATE COMPACT COMPLIANCE7
AND FOR THE PROMOTION OF CONSERVATION AND SUSTAINABILITY OF8
GROUNDWATER RESOURCES IN FURTHERANCE OF THE STATE WATER PLAN;9
(b) MONEY ALLOCATED TO THE STATE PURSUANT TO THE10
"AMERICAN RESCUE PLAN ACT OF 2021" AND TRANSFERRED TO THE11
GROUNDWATER COMPACT COMPLIANCE AND SUSTAINABILITY FUND12
CREATED IN SUBSECTION (3)(a) OF THIS SECTION MAY BE USED FOR THE13
PURPOSES OF THIS SECTION; AND14
(c) THE COMPACT COMPLIANCE, GROUNDWATER RESOURCE15
SUSTAINABILITY, AND GROUNDWATER CONSERVATION PURPOSES16
DESCRIBED IN THIS SECTION ARE IMPORTANT GOVERNMENT SERVICES .17
(3) (a) THE GROUNDWATER COMPACT COMPLIANCE AND18
SUSTAINABILITY FUND IS HEREBY CREATED IN THE STATE TREASURY AND19
CONSISTS OF MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR20
TRANSFER TO THE FUND; MONEY THAT THE STATE MAY RECEIVE FROM21
FEDERAL SOURCES, INCLUDING FEDERAL SOURCES OF STIMULUS FUNDING22
OR RECOVERY FUNDING; AND ANY GIFTS, GRANTS, OR DONATIONS THAT23
THE BOARD SEEKS, ACCEPTS, AND EXPENDS FOR THE PURPOSES SET FORTH24
IN THIS SECTION. THE MONEY IN THE FUND IS SUBJECT TO ANNUAL25
APPROPRIATION BY THE GENERAL ASSEMBLY .26
(b) T
HE BOARD SHALL ADMINISTER THE FUND TO IMPLEMENT THE27
028
-5- GROUNDWATER COMPACT COMPLIANCE AND SUSTAINABILITY PURPOSES1
ESTABLISHED IN ACCORDANCE WITH THIS SECTION . THE BOARD MAY USE2
UP TO FIVE PERCENT OF THE MONEY ANNUALLY APPROPRIATED TO THE3
FUND TO PAY THE BOARD'S DIRECT AND INDIRECT COSTS, AS WELL AS THE4
DIRECT AND INDIRECT COSTS INCURRED BY THE RIO GRANDE WATER5
CONSERVATION DISTRICT, THE REPUBLICAN RIVER WATER CONSERVATION6
DISTRICT, AND THE STATE ENGINEER IN IMPLEMENTING THIS SECTION .7
(4) THE BOARD MAY DISBURSE MONEY FROM THE FUND FOR8
PURPOSES RELATED TO COMPACT COMPLIANCE AND GROUNDWATER9
RESOURCE SUSTAINABILITY AND CONSERVATION , INCLUDING THE10
FINANCING OF PROGRAMS DIRECTED AT BUYING AND RETIRING IRRIGATED11
ACREAGE TO REDUCE GROUNDWATER USE . THE BOARD OF DIRECTORS OF12
THE RIO GRANDE WATER CONSERVATION DISTRICT AND THE BOARD OF13
DIRECTORS OF THE REPUBLICAN RIVER WATER CONSERVATION DISTRICT ,14
IN COLLABORATION WITH THE BOARD AND THE STATE ENGINEER , MAY15
EACH ESTABLISH ELIGIBILITY AND APPLICATION CRITERIA FOR16
DISBURSEMENT OF MONEY FROM THE FUND . EACH BOARD OF DIRECTORS17
SHALL POST ON ITS WEBSITE ANY CRITERIA ESTABLISHED PURSUANT TO18
THIS SUBSECTION (4).19
(5) THE BOARD SHALL DISBURSE MONEY FROM THE FUND BASED20
ON RECOMMENDATIONS FROM THE BOARD OF DIRECTORS OF EITHER THE21
R
IO GRANDE WATER CONSERVATION DISTRICT OR THE REPUBLICAN RIVER22
WATER CONSERVATION DISTRICT , WHICH RECOMMENDATIONS MUST FIRST23
BE APPROVED BY THE STATE ENGINEER .24(6) IF ALL GROUNDWATER REDUCTION REQUIREMENTS25
ESTABLISHED BY FEDERAL OR STATE COURT ORDER OR STIPULATION HAVE26
BEEN MET AND ALL STATUTORILY MANDATED GROUNDWATER REDUCTION27
028
-6- STANDARDS HAVE BEEN ACHIEVED , THIS SECTION WILL BE REPEALED;1
EXCEPT THAT THIS SECTION SHALL NOT BE REPEALED BEFORE JANUARY 1,2
2025. THE BOARD SHALL NOTIFY THE REVISOR OF STATUTES IN WRITING OF3
THE DATE WHEN THE CONDITIONS SPECIFIED IN THIS SUBSECTION (6) HAVE4
OCCURRED BY EMAILING THE NOTICE TO5
REVISOROFSTATUTES.GA@STATE.CO.US. THE BOARD SHALL ALSO SEND A6
COPY OF THE NOTICE TO THE STATE TREASURER WHO , WITHIN THREE DAYS7
AFTER RECEIVING THE NOTICE, SHALL TRANSFER ANY MONEY REMAINING8
IN THE FUND TO THE GENERAL FUND . THIS SECTION IS REPEALED,9
EFFECTIVE UPON THE DATE IDENTIFIED IN THE NOTICE OR , IF THE NOTICE10
DOES NOT SPECIFY THAT DATE, UPON THE DATE OF THE NOTICE TO THE11
REVISOR OF STATUTES.12
(7) (a) FOR THE 2022-23 STATE FISCAL YEAR, THE GENERAL13
ASSEMBLY SHALL APPROPRIATE TO THE FUND SIXTY MILLION DOLLARS14
FROM THE ECONOMIC RECOVERY AND RELIEF CASH FUND CREATED IN15
SECTION 24-75-228 (2)(a). THE BOARD MAY USE THE MONEY16
APPROPRIATED FOR THE PURPOSES SET FORTH IN THIS SECTION. EXCEPT AS17
PROVIDED IN SUBSECTION (7)(b) OF THIS SECTION, ANY MONEY18
APPROPRIATED TO THE FUND IN THE 2022-23 STATE FISCAL YEAR THAT IS19
UNOBLIGATED OR UNEXPENDED AT THE END OF THE STATE FISCAL YEAR20
REMAINS AVAILABLE FOR EXPENDITURE BY THE BOARD IN SUBSEQUENT21
STATE FISCAL YEARS WITHOUT FURTHER APPROPRIATION, SUBJECT TO THE22
REQUIREMENTS FOR OBLIGATING AND EXPENDING MONEY RECEIVED23
UNDER THE "AMERICAN RESCUE PLAN ACT OF 2021", AS SPECIFIED IN24
SECTION 24-75-226 (4)(d).25
(b) ON AUGUST 15, 2024, IF THERE IS UNOBLIGATED MONEY IN THE26
FUND, THE STATE TREASURER SHALL:27
028
-7- (I) IF THE AMOUNT OF UNOBLIGATED MONEY IS TWENTY MILLION1
DOLLARS OR LESS, TRANSFER ALL OF THE UNOBLIGATED MONEY TO THE2
WATER PLAN IMPLEMENTATION ACCOUNT ; OR3
(II) IF THE AMOUNT OF UNOBLIGATED MONEY IS GREATER THAN4
TWENTY MILLION DOLLARS , TRANSFER TO THE WATER PLAN5
IMPLEMENTATION ACCOUNT TWENTY MILLION DOLLARS .6
(8) (a) THE BOARD AND ANY PERSON THAT RECEIVES MONEY FROM7
THE BOARD PURSUANT TO THIS SECTION OR SECTION 37-60-123.3 (3)8
SHALL COMPLY WITH THE COMPLIANCE, REPORTING, RECORD-KEEPING,9
AND PROGRAM EVALUATION REQUIREMENT ESTABLISHED BY THE OFFICE10
OF STATE PLANNING AND BUDGETING AND THE STATE CONTROLLER IN11
ACCORDANCE WITH SECTION 24-75-226 (5).12
(b) COMMENCING IN 2023, AND FOR EACH YEAR THEREAFTER13
THROUGH 2027, AS PART OF ITS ANNUAL PRESENTATIONS TO THE GENERAL14
ASSEMBLY UNDER THE "STATE MEASUREMENT FOR ACCOUNTABLE,15
RESPONSIVE, AND TRANSPARENT (SMART) GOVERNMENT ACT", PART 216
OF ARTICLE 7 OF TITLE 2, THE DEPARTMENT OF NATURAL RESOURCES17
SHALL REPORT ON HOW MUCH MONEY THE BOARD HAS EXPENDED UNDER18
THIS SECTION AND IF THE BOARD EXPECTS TO EXPEND THE FULL SIXTY19
MILLION DOLLARS FOR THE PURPOSES SET FORTH IN THIS SECTION OR , IF20
MONEY IS TRANSFERRED TO THE WATER PLAN IMPLEMENTATION ACCOUNT21
IN 2024, IF THE BOARD IS ON TRACK TO EXPEND THE FULL SIXTY MILLION22
DOLLARS FOR THE PURPOSES SET FORTH IN THIS SECTION AND THE23
PURPOSES SET FORTH IN SECTION 37-60-123.3 (3).24
(9) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE25
REQUIRES:26
(a) "AMERICAN RESCUE PLAN ACT OF 2021" MEANS THE FEDERAL27
028
-8- "AMERICAN RESCUE PLAN ACT OF 2021", PUB. L. 117-2, AS THE ACT MAY1
BE SUBSEQUENTLY AMENDED .2
(b) "COVID-19" MEANS THE CORONAVIRUS DISEASE CAUSED BY3
THE SEVERE ACUTE RESPIRATORY SYNDROME CORONAVIRUS 2, ALSO4
KNOWN AS SARS-COV-2.5
(c) "FUND" MEANS THE GROUNDWATER COMPACT COMPLIANCE6
AND SUSTAINABILITY FUND CREATED IN SUBSECTION (3)(a) OF THIS7
SECTION.8
(d) "WATER PLAN IMPLEMENTATION ACCOUNT" MEANS THE WATER9
PLAN IMPLEMENTATION ACCOUNT CREATED IN SECTION 37-60-123.310
(3)(b).11
SECTION 2. In Colorado Revised Statutes, 37-60-123.3, add (3)12
as follows:13
37-60-123.3. Water plan implementation cash fund - created14
- water plan implementation account - created - legislative15
declaration - reporting - repeal. (3) (a) THE GENERAL ASSEMBLY FINDS16
AND DECLARES THAT:17
(I) THIS SUBSECTION (3) IS INTENDED TO RESPOND TO THE18
NEGATIVE ECONOMIC IMPACTS CAUSED BY THE COVID-19 PANDEMIC, AS19
DEFINED IN SECTION 37-60-134 (9)(b), AND THE RESULTING PUBLIC20
HEALTH EMERGENCY BY PROVIDING GRANT MONEY TO PROMOTE PROJECTS21
AND ACTIONS THAT ADVANCE PROGRESS TOWARD ACCOMPLISHING THE22
CRITICAL ACTIONS IDENTIFIED IN THE STATE WATER PLAN ;23
(II) MONEY ALLOCATED TO THE STATE PURSUANT TO THE24
"AMERICAN RESCUE PLAN ACT OF 2021", AS DEFINED IN SECTION25
37-60-134 (9)(a), AND TRANSFERRED TO THE WATER PLAN26
IMPLEMENTATION ACCOUNT MAY BE USED FOR THE PURPOSES OF THIS27
028
-9- SUBSECTION (3); AND1
(III) THE WATER PLAN IMPLEMENTATION PURPOSES DESCRIBED IN2
THIS SUBSECTION (3) ARE IMPORTANT GOVERNMENT SERVICES .3
(b) THERE IS HEREBY CREATED IN THE WATER PLAN4
IMPLEMENTATION CASH FUND THE WATER PLAN IMPLEMENTATION5
ACCOUNT, REFERRED TO IN THIS SUBSECTION (3) AS THE "ACCOUNT". THE6
MONEY IN THE ACCOUNT IS CONTINUOUSLY APPROPRIATED TO THE BOARD7
TO USE FOR THE PURPOSES SET FORTH IN THIS SUBSECTION (3).8
(c) THE ACCOUNT CONSISTS OF ALL MONEY TRANSFERRED TO THE9
ACCOUNT ON AUGUST 15, 2024, FROM THE GROUNDWATER COMPACT10
COMPLIANCE AND SUSTAINABILITY FUND CREATED IN SECTION 37-60-13411
(3)(a).12
(d) THE BOARD AND ANY PERSON THAT RECEIVES MONEY FROM13
THE BOARD PURSUANT TO THIS SUBSECTION (3) SHALL COMPLY WITH THE14
COMPLIANCE, REPORTING, RECORD-KEEPING, AND PROGRAM EVALUATION15
REQUIREMENT ESTABLISHED BY THE OFFICE OF STATE PLANNING AND16
BUDGETING AND THE STATE CONTROLLER IN ACCORDANCE WITH SECTION17
24-75-226 (5).18
(e) THIS SUBSECTION (3) IS REPEALED, EFFECTIVE SEPTEMBER 1,19
2027.20
SECTION 3. Appropriation. (1) For the 2022-23 state fiscal21
year, $60,000,000 is appropriated to the groundwater compact compliance22
and sustainability fund created in section 37-60-134 (2)(a), C.R.S. This23
appropriation is from the economic recovery and relief cash fund created24
in section 24-75-228 (2)(a), C.R.S., and is of money the state received25
from the federal coronavirus state fiscal recovery fund. The Department26
of Natural Resources is responsible for the accounting related to this27
028
-10- appropriation.1
(2) For the 2022-23 state fiscal year, $60,000,000 is appropriated2
to the department of natural resources for use by the Colorado water3
conservation board. This appropriation is from reappropriated funds from 4
the groundwater compact compliance and sustainability fund under5
subsection (1) of this section. To implement this act, the board may use6
this appropriation for compact compliance and groundwater resource7
sustainability and conservation pursuant to section 37-60-134, C.R.S. Any8
money appropriated in this section not expended prior to July 1, 2023, is9
further appropriated to the board from July 1, 2023, through December10
30, 2024, for the same purpose.11
SECTION 4. Safety clause. The general assembly hereby finds,12
determines, and declares that this act is necessary for the immediate13
preservation of the public peace, health, or safety.14
028
-11-