First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0333.01 Jennifer Berman x3286 HOUSE BILL 23-1220 House Committees Senate Committees Agriculture, Water & Natural Resources A BILL FOR AN ACT C ONCERNING A STUDY REGARDING THE ECONOMIC IMPACT OF THE101 ELIMINATION OF LARGE -CAPACITY GROUNDWATER102 WITHDRAWAL WITHIN THE REPUBLICAN RIVER BASIN, AND, IN103 CONNECTION THEREWITH , REQUIRING THE COLORADO WATER104 CENTER TO CONDUCT THE STUDY AND REPORT ITS FINDINGS AND105 CONCLUSIONS TO CERTAIN LEGISLATIVE COMMITTEES .106 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 .) In 1942, Colorado entered into an interstate compact (compact) HOUSE SPONSORSHIP Holtorf and McCormick, Bockenfeld SENATE SPONSORSHIP (None), Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. with Nebraska and Kansas regarding the allocation of water from the Republican river basin (basin). Colorado ratified the compact in 1943. In 2016, Colorado, Nebraska, and Kansas signed a resolution (resolution) regarding a dispute about Colorado's compliance with the compact, through which resolution and its amendment Colorado agreed to retire 25,000 acres of irrigated acreage in the basin by 2029. The bill requires the Colorado water center (center) in the Colorado state university to study the anticipated economic effects of the forced elimination of groundwater withdrawals within and surrounding the Colorado portion of the Republican river basin that could occur if Colorado fails to comply with the resolution. The center is required to prepare a progress report and, on or before January 1, 2026, a final report of the center's findings and conclusions from the study and to post both reports on the center's website. The center must present the progress and final reports to certain legislative committees. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add 23-31-804 as2 follows:3 23-31-804. Republican river groundwater economic study -4 reporting - legislative declaration - definitions - repeal. (1) T HE5 GENERAL ASSEMBLY FINDS AND DECLARES THAT :6 (a) I N 1942, THE GENERAL ASSEMBLY RATIFIED THE REPUBLICAN7 RIVER COMPACT, AN INTERSTATE COMPACT BETWEEN COLORADO,8 N EBRASKA, AND KANSAS REGARDING THE ALLOCATION OF WATER AMONG9 THE THREE STATES FROM THE REPUBLICAN RIVER;10 (b) V ARIOUS DISAGREEMENTS AND LITIGATION HAVE ARISEN11 AMONG THE THREE STATES REGARDING THE USE OF WATER AS ALLOCATED12 BY THE COMPACT;13 (c) I N 2016, COLORADO, NEBRASKA, AND KANSAS, ACTING14 THROUGH THE REPUBLICAN RIVER COMPACT ADMINISTRATION , ADOPTED15 A SERIES OF RESOLUTIONS RESOLVING VARIOUS DISPUTES AMONG THE16 THREE STATES;17 HB23-1220-2- (d) UNDER THE TERMS OF ONE OF THE RESOLUTIONS , COLORADO1 AGREED TO REDUCE THE NUMBER OF ACRES IRRIGATED WITHIN AN AREA2 OF THE REPUBLICAN RIVER BASIN KNOWN AS THE SOUTH FORK FOCUS3 ZONE BY TWENTY-FIVE THOUSAND ACRES BY DECEMBER 31, 2029, WHICH4 ACTION IS A SOLEMN OBLIGATION OF THE STATE ;5 (e) I F COLORADO FAILS TO MEET ITS OBLIGATION UNDER THE6 TERMS OF THE SOUTH FORK FOCUS ZONE RESOLUTION , THE STATE7 ENGINEER COULD BE REQUIRED TO CURTAIL ALL GROUNDWATER USE8 SUBJECT TO THE REPUBLICAN RIVER COMPACT; AND9 (f) I T IS APPROPRIATE FOR THE COLORADO WATER CENTER TO10 STUDY THE ECONOMIC IMPACT THAT WILL RESULT IF COLORADO FAILS TO11 MEET ITS OBLIGATION UNDER THE TERMS OF THE SOUTH FORK FOCUS ZONE12 RESOLUTION AND THE STATE ENGINEER IS THEN REQUIRED TO CURTAIL ALL13 LARGE-CAPACITY GROUNDWATER WITHDRAWALS WITHIN THE REPUBLICAN14 RIVER BASIN.15 (2) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE16 REQUIRES:17 (a) "A GRICULTURAL COMMITTEES " MEANS THE HOUSE OF18 REPRESENTATIVES AGRICULTURE , WATER, AND NATURAL RESOURCES19 COMMITTEE AND THE SENATE AGRICULTU RE AND NATURAL RESOURCES20 COMMITTEE, OR THEIR SUCCESSOR COMMITTEES .21 (b) N OTWITHSTANDING SECTION 23-31-801 (1), "COLORADO22 WATER CENTER" OR "CENTER" MEANS THE INSTITUTE.23 (c) "L ARGE-CAPACITY GROUNDWATER WITHDRAWAL " MEANS THE24 LAWFUL ABILITY TO WITHDRAW WATER IN AN AMOUNT OF MORE THAN25 FIFTY GALLONS PER MINUTE FROM A WELL .26 (d) "R EPUBLICAN RIVER BASIN" HAS THE MEANING SET FORTH IN27 HB23-1220 -3- SECTION 37-50-102 (5).1 (e) "S OUTH FORK FOCUS ZONE RESOLUTION " OR "RESOLUTION"2 MEANS THE 2016 REPUBLICAN RIVER COMPACT ADMINISTRATION3 RESOLUTION SIGNED BY THE COMMISSIONERS OF THE REPUBLICAN RIVER4 COMPACT ADMINISTRATION ON AUGUST 24, 2016, IN WHICH THE STATE5 AGREED TO RETIRE TWENTY -FIVE THOUSAND ACRES OF ITS IRRIGATED6 LANDS WITHIN THE SOUTH FORK FOCUS ZONE OF THE REPUBLICAN RIVER7 BASIN, AND SUBSEQUENT RESOLUTIONS AMENDING THE TERMS OF THE8 RESOLUTION.9 (f) "S TATE ENGINEER" MEANS THE STATE ENGINEER APPOINTED BY10 THE GOVERNOR PURSUANT TO SECTION 37-80-101.11 (g) "W ATER RESOURCES AND AGRICULTURE REVIEW COMMITTEE "12 MEANS THE WATER RESOURCES AND AGRICULTURE REVIEW COMMITTEE13 CREATED IN SECTION 37-98-102 (1)(a)(I).14 (3) O N OR BEFORE JANUARY 1, 2026, THE COLORADO WATER15 CENTER SHALL COMPLETE A STUDY OF THE ECONOMIC IMPACT THAT WILL16 RESULT IF COLORADO FAILS TO MEET ITS OBLIGATION UNDER THE TERMS17 OF THE SOUTH FORK FOCUS ZONE RESOLUTION AND THE STATE ENGINEER18 IS THEN REQUIRED TO CURTAIL ALL LARGE -CAPACITY GROUNDWATER19 WITHDRAWALS WITHIN THE REPUBLICAN RIVER BASIN. IN CONDUCTING20 THE STUDY, THE COLORADO WATER CENTER SHALL EXAMINE THE21 ECONOMIC IMPACT TO THE AREAS OF COLORADO, NEBRASKA, AND22 K ANSAS AFFECTED BY THE REPUBLICAN RIVER BASIN.23 (4) T HE CENTER SHALL:24 (a) P REPARE A PROGRESS REPORT OF THE STUDY CONDUCTED25 PURSUANT TO THIS SECTION AND PRESENT THE PROGRESS REPORT TO A26 JOINT COMMITTEE OF THE AGRICULTURAL COMMITTEES DURING THE JOINT27 HB23-1220 -4- COMMITTEE'S 2025 HEARING HELD PURSUANT TO SECTION 2-7-203 OF THE1 "SMART ACT", PART 2 OF ARTICLE 7 OF TITLE 2. THE CENTER SHALL2 SUBMIT A COPY OF THE PROGRESS REPORT TO THE WATER RESOURCES AND3 AGRICULTURE REVIEW COMMITTEE AND , UPON REQUEST OF THE4 COMMITTEE, PRESENT THE PROGRESS REPORT TO THE COMMITTEE .5 (b) O N OR BEFORE JANUARY 1, 2026, PREPARE A FINAL REPORT OF6 THE FINDINGS AND CONCLUSIONS FROM THE STUDY AND POST THE FINAL7 REPORT ON THE CENTER'S WEBSITE; AND8 (c) D URING THE 2026 CALENDAR YEAR, PRESENT THE FINAL9 REPORT:10 (I) T O THE WATER RESOURCES AND AGRICULTURE REVIEW11 COMMITTEE; AND12 (II) T O THE JOINT COMMITTEE OF THE AGRICULTURAL13 COMMITTEES.14 (5) T HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2027.15 SECTION 2. Safety clause. The general assembly hereby finds,16 determines, and declares that this act is necessary for the immediate17 preservation of the public peace, health, or safety.18 HB23-1220 -5-