First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 23-0333.01 Jennifer Berman x3286 HOUSE BILL 23-1220 House Committees Senate Committees Agriculture, Water & Natural Resources Appropriations 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 CE RTAIN LEGISLATIVE COMMITTEES AND106 MAKING AN APPROPRIATION .107 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 .) HOUSE 3rd Reading Unamended May 5, 2023 HOUSE Amended 2nd Reading May 3, 2023 HOUSE SPONSORSHIP Holtorf and McCormick, Bockenfeld, Amabile, Bird, Boesenecker, Bradfield, Bradley, Brown, DeGraaf, Duran, Frizell, Jodeh, Lieder, Lindsay, Lukens, Lynch, Marshall, Martinez, Mauro, McCluskie, McLachlan, Ortiz, Sharbini, Snyder, Soper, Story, Titone, Velasco, Woodrow, Young SENATE SPONSORSHIP Pelton B. and Pelton R., 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. In 1942, Colorado entered into an interstate compact (compact) 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 1220-2- THREE STATES;1 (d) U NDER THE TERMS OF ONE OF THE RESOLUTIONS , COLORADO2 AGREED TO REDUCE THE NUMBER OF ACRES IRRIGATED WITHIN AN AREA3 OF THE REPUBLICAN RIVER BASIN KNOWN AS THE SOUTH FORK FOCUS4 ZONE BY TWENTY-FIVE THOUSAND ACRES BY DECEMBER 31, 2029, WHICH5 ACTION IS A SOLEMN OBLIGATION OF THE STATE ;6 (e) I F COLORADO FAILS TO MEET ITS OBLIGATION UNDER THE7 TERMS OF THE SOUTH FORK FOCUS ZONE RESOLUTION , THE STATE8 ENGINEER COULD BE REQUIRED TO CURTAIL ALL GROUNDWATER USE9 SUBJECT TO THE REPUBLICAN RIVER COMPACT; AND10 (f) I T IS APPROPRIATE FOR THE COLORADO WATER CENTER TO11 STUDY THE ECONOMIC IMPACT THAT WILL RESULT IF COLORADO FAILS TO12 MEET ITS OBLIGATION UNDER THE TERMS OF THE SOUTH FORK FOCUS ZONE13 RESOLUTION AND THE STATE ENGINEER IS THEN REQUIRED TO CURTAIL ALL14 LARGE-CAPACITY GROUNDWATER WITHDRAWALS WITHIN THE REPUBLICAN15 RIVER BASIN.16 (2) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE17 REQUIRES:18 (a) "A GRICULTURAL COMMITTEES " MEANS THE HOUSE OF19 REPRESENTATIVES AGRICULTURE , WATER, AND NATURAL RESOURCES20 COMMITTEE AND THE SENATE AGRICULTU RE AND NATURAL RESOURCES21 COMMITTEE, OR THEIR SUCCESSOR COMMITTEES .22 (b) N OTWITHSTANDING SECTION 23-31-801 (1), "COLORADO23 WATER CENTER" OR "CENTER" MEANS THE INSTITUTE.24 (c) "L ARGE-CAPACITY GROUNDWATER WITHDRAWAL " MEANS THE25 LAWFUL ABILITY TO WITHDRAW WATER IN AN AMOUNT OF MORE THAN26 FIFTY GALLONS PER MINUTE FROM A WELL .27 1220 -3- (d) "REPUBLICAN RIVER BASIN" HAS THE MEANING SET FORTH IN1 SECTION 37-50-102 (5).2 (e) "S OUTH FORK FOCUS ZONE RESOLUTION " OR "RESOLUTION"3 MEANS THE 2016 REPUBLICAN RIVER COMPACT ADMINISTRATION4 RESOLUTION SIGNED BY THE COMMISSIONERS OF THE REPUBLICAN RIVER5 COMPACT ADMINISTRATION ON AUGUST 24, 2016, IN WHICH THE STATE6 AGREED TO RETIRE TWENTY -FIVE THOUSAND ACRES OF ITS IRRIGATED7 LANDS WITHIN THE SOUTH FORK FOCUS ZONE OF THE REPUBLICAN RIVER8 BASIN, AND SUBSEQUENT RESOLUTIONS AMENDING THE TERMS OF THE9 RESOLUTION.10 (f) "S TATE ENGINEER" MEANS THE STATE ENGINEER APPOINTED BY11 THE GOVERNOR PURSUANT TO SECTION 37-80-101.12 (g) "W ATER RESOURCES AND AGRICULTURE REVIEW COMMITTEE "13 MEANS THE WATER RESOURCES AND AGRICULTURE REVIEW COMMITTEE14 CREATED IN SECTION 37-98-102 (1)(a)(I).15 (3) O N OR BEFORE JANUARY 1, 2026, THE COLORADO WATER16 CENTER SHALL COMPLETE A STUDY OF THE ECONOMIC IMPACT THAT WILL17 RESULT IF COLORADO FAILS TO MEET ITS OBLIGATION UNDER THE TERMS18 OF THE SOUTH FORK FOCUS ZONE RESOLUTION AND THE STATE ENGINEER19 IS THEN REQUIRED TO CURTAIL ALL LARGE -CAPACITY GROUNDWATER20 WITHDRAWALS WITHIN THE REPUBLICAN RIVER BASIN. IN CONDUCTING21 THE STUDY, THE COLORADO WATER CENTER SHALL EXAMINE THE22 ECONOMIC IMPACT TO THE AREAS OF COLORADO, NEBRASKA, AND23 K ANSAS AFFECTED BY THE REPUBLICAN RIVER BASIN.24 (4) T HE CENTER SHALL:25 (a) P REPARE A PROGRESS REPORT OF THE STUDY CONDUCTED26 PURSUANT TO THIS SECTION AND PRESENT THE PROGRESS REPORT TO A27 1220 -4- JOINT COMMITTEE OF THE AGRICULTURAL COMMITTEES DURING THE JOINT1 COMMITTEE'S 2025 HEARING HELD PURSUANT TO SECTION 2-7-203 OF THE2 "SMART ACT", PART 2 OF ARTICLE 7 OF TITLE 2. THE CENTER SHALL3 SUBMIT A COPY OF THE PROGRESS REPORT TO THE WATER RESOURCES AND4 AGRICULTURE REVIEW COMMITTEE AND , UPON REQUEST OF THE5 COMMITTEE, PRESENT THE PROGRESS REPORT TO THE COMMITTEE .6 (b) O N OR BEFORE JANUARY 1, 2026, PREPARE A FINAL REPORT OF7 THE FINDINGS AND CONCLUSIONS FROM THE STUDY AND POST THE FINAL8 REPORT ON THE CENTER'S WEBSITE; AND9 (c) D URING THE 2026 CALENDAR YEAR, PRESENT THE FINAL10 REPORT:11 (I) T O THE WATER RESOURCES AND AGRICULTURE REVIEW12 COMMITTEE; AND13 (II) T O THE JOINT COMMITTEE OF THE AGRICULTURAL14 COMMITTEES.15 (5) T HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2027.16 SECTION 2. In Colorado Revised Statutes, 23-3.3-103, add (12)17 as follows:18 23-3.3-103. Annual appropriations - repeal. (12) (a) THE19 PROVISIONS OF SUBSECTION (1) OF THIS SECTION CONCERNING20 APPROPRIATIONS FOR STUDENT FINANCIAL ASSISTANCE UNDER THIS21 ARTICLE 3.3 DO NOT APPLY TO APPROPRIATIONS MADE FOR THE PURPOSE22 OF CONDUCTING A REPUBLICAN RIVER GROUNDWATER ECONOMIC IMPACT23 STUDY PURSUANT TO SECTION 23-31-804.24 (b) THIS SUBSECTION (12) IS REPEALED, EFFECTIVE JULY 1, 2027.25 SECTION 3. Appropriation. (1) For the 2023-24 state fiscal26 year, $146,286 is appropriated to the department of higher education. This27 1220 -5- appropriation is from the general fund. To implement this act, the1 department may use this appropriation for the board of governors of the2 Colorado state university system for allocation to the Colorado water3 center.4 SECTION 4. Safety clause. The general assembly hereby finds,5 determines, and declares that this act is necessary for the immediate6 preservation of the public peace, health, or safety.7 1220 -6-