First Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 25-1041.01 Renee Leone x2695 SENATE BILL 25-283 Senate Committees House Committees Agriculture & Natural Resources A BILL FOR AN ACT C ONCERNING THE COLORADO WATER CONSERVATION BOARD101 OPERATIONS, AND, IN CONNECTION THEREWITH , FUNDING102 PROJECTS AND 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 .) The bill appropriates the following amounts for the 2025-26 state fiscal year from the Colorado water conservation board (CWCB) construction fund to the CWCB or the division of water resources in the department of natural resources for the following projects: ! Continuation of the satellite monitoring system, $380,000 SENATE SPONSORSHIP Roberts and Simpson, Catlin, Marchman, Bridges, Pelton B. HOUSE SPONSORSHIP McCormick and Soper, McCluskie 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. (section 1 of the bill); ! Continuation of the floodplain map modernization program, $500,000 (section 2); ! Continuation of the weather modification permitting program, $500,000 (section 3); ! Continuation of the Colorado Mesonet project, $200,000 (section 5); ! Continuation of the water forecasting partnership project, $2,000,000 (section 6); ! Continuation of the Arkansas river decision support program, $300,000 (section 7); ! Continuation of technical assistance for the federal irrigation improvement cost-sharing program, $500,000 (section 8); ! Decision support systems model enhancements to support the Colorado water plan, $1,000,000 (section 9); ! Support for the basin implementation plan analysis and updates, $4,500,000 (section 10); ! Continuation of the Colorado watershed restoration and wildfire ready watershed programs, $5,000,000 (section 11); ! Support for a statewide turf analysis, $1,400,000 (section 12); ! Support for the Yampa river and Walton creek confluence restoration project, $2,000,000 (section 14); and ! Support for the south fork focus zone irrigated acreage retirement, $6,000,000 (section 15); Section 4 directs the state treasurer to transfer up to $2,000,000 from the CWCB construction fund to the CWCB litigation fund on July 1, 2025. Section 13 directs the state treasurer to transfer $500,000 from the CWCB construction fund to the plant health, pest control, and environmental protection cash fund on July 1, 2025, and makes an appropriation of that amount to the department of agriculture for use by the conservation services division for the Colorado soil health program. Section 16 authorizes the CWCB to make a loan in an amount of $12,978,500 from the severance tax perpetual base fund to the North Poudre Irrigation Company to support the park creek expansion project. Section 17 appropriates $29,200,000 from the water plan implementation cash fund to the CWCB to award grants that will help implement the state water plan. Sections 18, 19, 20, and 21 eliminate the office of water conservation under the CWCB and the water efficiency grant program, transfer remaining money from the water efficiency grant program cash fund to the severance tax perpetual base fund, and make conforming SB25-283 -2- amendments accordingly. Current law authorizes the governor to appoint a director of compact negotiations. Section 22 states that the governor or the executive director of the department of natural resources shall appoint the director of compact negotiations within 30 days after a vacancy of the position. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Continuation of the satellite monitoring system2 - operation and maintenance - appropriation. (1) For the 2025-263 state fiscal year, $380,000 is appropriated to the department of natural4 resources for use by the division of water resources. This appropriation5 is from the Colorado water conservation board construction fund created6 in section 37-60-121, C.R.S. To implement this section, the division of7 water resources may use this appropriation to install, maintain, and8 operate satellite-monitored stream gauges and lysimeters for water rights9 administration and data collection pursuant to section 37-80-102 (10),10 C.R.S.11 (2) The money appropriated in subsection (1) of this section12 remains available for the designated purposes until it is fully expended.13 SECTION 2. Continuation of the Colorado floodplain map14 modernization program - appropriation. (1) For the 2025-26 state15 fiscal year, $500,000 is appropriated to the department of natural16 resources for use by the Colorado water conservation board. This17 appropriation is from the Colorado water conservation board construction18 fund created in section 37-60-121, C.R.S. To implement this section, the19 Colorado water conservation board may use this appropriation to continue20 to assist with the preparation of revised and improved floodplain studies21 and maps for communities throughout Colorado and participate in22 federally sponsored floodplain map modernization activities.23 SB25-283-3- (2) The money appropriated in subsection (1) of this section1 remains available for the designated purposes until it is fully expended.2 SECTION 3. Continuation of the weather modification3 permitting program - appropriation. (1) For the 2025-26 state fiscal4 year, $500,000 is appropriated to the department of natural resources for5 use by the Colorado water conservation board. This appropriation is from6 the Colorado water conservation board construction fund created in7 section 37-60-121, C.R.S. To implement this section, the Colorado water8 conservation board may use this appropriation to assist water9 conservation and conservancy districts with the development of cloud10 seeding programs to provide benefits to recreation, streams, and11 reservoirs through snowpack enhancement.12 (2) The money appropriated in subsection (1) of this section13 remains available for the designated purposes until it is fully expended.14 SECTION 4. Restoration of litigation fund cash balance -15 appropriation. On July 1, 2025, the state treasurer shall transfer16 $2,000,000, or so much thereof as may be necessary to restore the balance17 of the litigation fund to $2,000,000, from the unreserved cash in the18 Colorado water conservation board construction fund created in section19 37-60-121, C.R.S., to the litigation fund created in section 37-60-12120 (2.5), C.R.S., to assist in addressing legal issues associated with compact21 compliance or any other litigation activities as specified under section22 37-60-121, C.R.S.23 SECTION 5. Continuation of the Colorado Mesonet project24 - appropriation. (1) For the 2025-26 state fiscal year, $200,000 is25 appropriated to the department of natural resources for use by the26 Colorado water conservation board. This appropriation is from the27 SB25-283 -4- Colorado water conservation board construction fund created in section1 37-60-121, C.R.S. To implement this section, the Colorado water2 conservation board may use this appropriation to support the Colorado3 Mesonet, including for the following activities: Operation, maintenance,4 travel, communications, and database and website management for5 temperature and precipitation stations.6 (2) The money appropriated in subsection (1) of this section7 remains available for the designated purposes until it is fully expended.8 SECTION 6. Continuation of the water forecasting9 partnership project - appropriation. (1) For the 2025-26 state fiscal10 year, $2,000,000 is appropriated to the department of natural resources11 for use by the Colorado water conservation board. This appropriation is12 from the Colorado water conservation board construction fund created in13 section 37-60-121, C.R.S. To implement this section, the Colorado water14 conservation board may use this appropriation to support the development15 of new ground and aerial remote sensing data, to develop hydrologic16 modeling practices, to provide reliable volumetric water supply17 forecasting, and to provide better characterization of snowpack.18 (2) The money appropriated in subsection (1) of this section19 remains available for the designated purposes until it is fully expended.20 SECTION 7. Continuation of the Arkansas river decision21 support program - appropriation. (1) For the 2025-26 state fiscal year,22 $300,000 is appropriated to the department of natural resources for use23 by the Colorado water conservation board. This appropriation is from the24 Colorado water conservation board construction fund created in section25 37-60-121, C.R.S. To implement this section, the Colorado water26 conservation board may use this appropriation to continue implementation27 SB25-283 -5- efforts identified in the Arkansas river decision support system (ArkDSS)1 feasibility study completed in December 2011.2 (2) The money appropriated in subsection (1) of this section3 remains available for the designated purposes until it is fully expended.4 SECTION 8. Continuation of technical assistance for federal5 irrigation improvement cost-sharing program - appropriation.6 (1) For the 2025-26 state fiscal year, $500,000 is appropriated to the7 department of natural resources for use by the Colorado water8 conservation board. This appropriation is from the Colorado water9 conservation board construction fund created in section 37-60-121,10 C.R.S. To implement this section, the Colorado water conservation board11 may use this appropriation to provide technical assistance for applicants12 seeking competitive federal grant funds.13 (2) The money appropriated in subsection (1) of this section14 remains available for the designated purposes until it is fully expended.15 SECTION 9. Decision support systems model enhancements16 to support the Colorado water plan - appropriation. (1) For the17 2025-26 state fiscal year, $1,000,000 is appropriated to the department of18 natural resources for use by the Colorado water conservation board. This19 appropriation is from the Colorado water conservation board construction20 fund created in section 37-60-121, C.R.S. To implement this section, the21 Colorado water conservation board may use this appropriation to support22 efforts to refine and extend the existing decision support systems model23 and to complete technical updates to the Colorado water plan.24 (2) The money appropriated in subsection (1) of this section25 remains available for the designated purposes until it is fully expended.26 SECTION 10. Basin implementation plan analysis and27 SB25-283 -6- updates - appropriation. (1) For the 2025-26 state fiscal year,1 $4,500,000 is appropriated to the department of natural resources for use2 by the Colorado water conservation board. This appropriation is from the3 Colorado water conservation board construction fund created in section4 37-60-121, C.R.S. To implement this section, the Colorado water5 conservation board may use this appropriation to support updated efforts6 to evaluate baseline data to determine existing and future water demand7 and supply to develop an updated basin implementation plan for each of8 the 8 major river basins across the state.9 (2) The money appropriated in subsection (1) of this section10 remains available for the designated purposes until it is fully expended.11 SECTION 11. Continuation of the Colorado watershed12 restoration program - appropriation. (1) For the 2025-26 state fiscal13 year, $5,000,000 is appropriated to the department of natural resources14 for use by the Colorado water conservation board. This appropriation is15 from the Colorado water conservation board construction fund created in16 section 37-60-121, C.R.S. To implement this section, the Colorado water17 conservation board may use this appropriation to support planning,18 engineering, and implementation measures to address technical needs for19 watershed restoration and flood mitigation projects throughout the state20 to provide aquatic habitat protection; quantification of environmental21 flow needs; and monitoring of efforts to support healthy stream and22 watershed goals outlined in the state water plan.23 (2) The money appropriated in subsection (1) of this section24 remains available for the designated purposes until it is fully expended.25 SECTION 12. Statewide turf analysis - appropriation. (1) For26 the 2025-26 state fiscal year, $1,400,000 is appropriated to the department27 SB25-283 -7- of natural resources for use by the Colorado water conservation board.1 This appropriation is from the Colorado water conservation board2 construction fund created in section 37-60-121, C.R.S. To implement this3 section, the Colorado water conservation board may use this4 appropriation to conduct an analysis to answer key questions related to5 understanding the total amount of irrigable turf, nonfunctional turf, tree6 canopy, and other vegetation types in populated areas of the state to gain7 a better understanding of outdoor and landscape water use and develop8 possible water savings practices related to turf replacement.9 (2) The money appropriated in subsection (1) of this section10 remains available for the designated purposes until it is fully expended.11 SECTION 13. Colorado department of agriculture - scaling12 Colorado soil health- transfer - appropriation. (1) On July 1, 2025, the13 state treasurer shall transfer $500,000 from the Colorado water14 conservation board construction fund created in section 37-60-121,15 C.R.S., to the plant health, pest control, and environmental protection16 cash fund created in section 35-1-106.3 (1), C.R.S., to assist in the17 continuation of the soil health program.18 (2) (a) For the 2025-26 state fiscal year, $500,000 is appropriated19 to the department of agriculture for use by the conservation services20 division. This appropriation is from the plant health, pest control, and21 environmental protection cash fund created in section 35-1-106.3 (1),22 C.R.S. To implement this subsection (2)(a), the conservation services23 division may use this appropriation to continue the Colorado soil health24 program to improve soil health throughout the state.25 (b) The money appropriated in subsection (2)(a) of this section26 remains available for the designated purposes until it is fully expended.27 SB25-283 -8- SECTION 14. Yampa river and Walton creek confluence1 restoration - appropriation. (1) For the 2025-26 state fiscal year,2 $2,000,000 is appropriated to the department of natural resources for use3 by the Colorado water conservation board. This appropriation is from the4 Colorado water conservation board construction fund created in section5 37-60-121, C.R.S. To implement this section, the Colorado water6 conservation board may use this appropriation to conduct a large-scale7 ecological river and wetland restoration project encompassing one8 hundred five acres of channel, floodplain, and riparian improvements at9 the Yampa river and Walton creek confluence.10 (2) The money appropriated in subsection (1) of this section11 remains available for the designated purposes until it is fully expended.12 SECTION 15. South fork focus zone irrigated acreage13 retirement - appropriation. (1) For the 2025-26 state fiscal year,14 $6,000,000 is appropriated to the department of natural resources for use15 by the Colorado water conservation board. This appropriation is from the16 Colorado water conservation board construction fund created in section17 37-60-121, C.R.S. To implement this section, the Colorado water18 conservation board may use this appropriation to support efforts to19 comply with the republican river compact administration resolution by20 retiring irrigated acreage in the south fork focus zone by 2029.21 (2) The money appropriated in subsection (1) of this section22 remains available for the designated purposes until it is fully expended.23 SECTION 16. Water project loan authorization - park creek24 reservoir expansion project. (1) Pursuant to section 37-60-122 (1)(b),25 C.R.S., the Colorado water conservation board is authorized to make a26 loan in the amount of $12,978,500 from the severance tax perpetual base27 SB25-283 -9- fund created in section 39-29-109 (2)(a), C.R.S., to the North Poudre1 Irrigation Company for the completion of the park creek reservoir2 expansion project.3 (2) The money authorized in subsection (1) of this section remains4 available for the designated purposes until it is fully expended.5 (3) The Colorado water conservation board may make loans for6 the project specified in subsection (1) of this section from money that is7 or may become available to the severance tax perpetual base fund. The8 total amount of the loans will be in the amount listed in subsection (1) of9 this section plus or minus the amount, if any, as may be justified by10 reason of fluctuations in construction costs or as may be justified by11 reason of changes in the plans for the project due to differing or12 unforeseen site conditions, errors or omissions in the plans and13 specifications, changes instituted by regulatory agencies, or changes in14 material quantities beyond contract limits.15 SECTION 17. Grant-making for projects that assist in16 implementing the state water plan - appropriation. (1) For the17 2025-26 state fiscal year, $29,200,000 is appropriated to the department18 of natural resources for use by the Colorado water conservation board.19 This appropriation is from the water plan implementation cash fund20 created in section 37-60-123.3 (1)(a), C.R.S. To implement this21 subsection (1), the Colorado water conservation board may use this22 appropriation for grant-making for projects that assist in the23 implementation of the state water plan pursuant to section 37-60-106.324 (6), C.R.S., through the Colorado water conservation board's application25 and guidelines process.26 (2) The money appropriated in subsection (1) of this section27 SB25-283 -10- remains available for the designated purposes until it is fully expended.1 SECTION 18. In Colorado Revised Statutes, 37-60-124, amend2 (2) introductory portion and (3); and repeal (1) as follows:3 37-60-124. Water conservation and drought mitigation4 planning - powers and duties of board. (1) There is hereby created as5 an office under the Colorado water conservation board the office of water6 conservation and drought planning. The office shall have such staff as are7 necessary and appropriate to carry out the duties established for the8 office.9 (2) The office of water conservation and drought planning BOARD10 shall promote water conservation and drought mitigation planning by11 performing AND SHALL MAINTAIN AS MUCH STAFF AS IS REQUIRED TO12 PERFORM, to the degree feasible, duties including, but not limited to, the13 following:14 (3) The personal services, operating, travel and subsistence,15 capital, and legal services expenses of administering the office of water16 conservation and drought planning and the programs and activities17 authorized by subsection (2) of this section may be paid from such18 moneys as are MONEY AS IS appropriated, allocated, or otherwise credited19 to the Colorado water conservation board construction fund.20 SECTION 19. In Colorado Revised Statutes, 37-60-126, amend21 (2)(a), (2)(b), (3), (6), (7), (8), and (12)(c); repeal (1)(c) and (1)(d); and22 add (12)(b.7) as follows:23 37-60-126. Water conservation and drought mitigation24 planning - programs - relationship to state assistance for water25 facilities - guidelines - grant program - definitions - repeal. (1) As26 used in this section and section 37-60-126.5, unless the context otherwise27 SB25-283 -11- requires:1 (c) "Grant program" means the water efficiency grant program2 established pursuant to subsection (12) of this section.3 (d) "Office" means the office of water conservation and drought4 planning created in section 37-60-124.5 (2) (a) Each A covered entity shall, subject to section 37-60-127,6 develop, adopt, make publicly available, and implement a plan pursuant7 to which such THE covered entity shall encourage its domestic,8 commercial, industrial, and public facility customers to use water more9 efficiently. Any A state or local governmental entity that is not a covered10 entity may develop, adopt, make publicly available, and implement such11 a plan.12 (b) The office BOARD shall review previously submitted13 conservation plans to evaluate their consistency with the provisions of14 this section and the guidelines established pursuant to paragraph (a) of15 subsection (7) SUBSECTION (7)(a) of this section.16 (3) The manner in which the covered entity develops, adopts,17 makes publicly available, and implements a plan established pursuant to18 subsection (2) of this section shall be determined by the covered entity in19 accordance with this section. The plan shall MUST be accompanied by a20 schedule for its implementation. The plans and schedules shall be21 provided to the office BOARD within ninety days after their adoption. For22 those entities seeking financial assistance, the office BOARD shall then23 notify the covered entity and the appropriate financing authority that the24 plan has been reviewed and whether the plan has been approved in25 accordance with this section.26 (6) The board is hereby authorized to recommend the27 SB25-283 -12- appropriation and expenditure of revenues as are necessary from the1 unobligated balance of the five percent share of the severance tax2 operational fund designated for use by the board for the purpose of the3 office providing assistance to covered entities to develop water4 conservation plans that meet the provisions of this section.5 (7) (a) The board shall adopt guidelines for the office to review6 water conservation plans submitted by covered entities and other state or7 local governmental entities. The guidelines shall MUST define the method8 for submitting plans to the office BOARD, the methods for office review9 and approval of the plans, and the interest rate surcharge provided for in10 paragraph (a) of subsection (9) SUBSECTION (9)(a) of this section.11 (b) If no other applicable guidelines exist as of June 1, 2007, The12 board shall adopt guidelines by July 31, 2007, for the office to use in13 reviewing MAY REVIEW AND AWARD GRANTS PURSUANT TO applications14 submitted by covered entities, other state or local governmental entities,15 and agencies for grants from the grant program and from the grant16 program established in section 37-60-126.5 (3). The guidelines shall17 establish deadlines and procedures for covered entities, other state or18 local governmental entities, and agencies to follow in applying for grants19 and the criteria to be used by the office and the board in prioritizing and20 awarding grants 37-60-106.3 (6).21 (8) A covered entity may at any time adopt changes to an22 approved plan in accordance with this section after notifying and23 receiving concurrence from the office BOARD. If the proposed changes are24 major, the covered entity shall give public notice of the changes, make the25 changes available in draft form, and provide the public an opportunity to26 comment on such changes before adopting them in accordance with27 SB25-283 -13- subsection (5) of this section.1 (12) (b.7) O N JUNE 30, 2026, THE STATE TREASURER SHALL2 TRANSFER ANY MONEY REMAINING IN THE WATER EFFICIENCY GRANT3 PROGRAM CASH FUND TO THE SEVERANCE TAX PERPETUAL BASE FUND4 CREATED IN SECTION 39-29-109 (2)(a).5 (c) This subsection (12) is repealed, effective July 1, 2030 2026.6 SECTION 20. In Colorado Revised Statutes, 37-60-126.5,7 amend (2), (3), and (4) as follows:8 37-60-126.5. Drought mitigation planning - programs -9 relationship to state assistance. (2) The office BOARD shall develop10 programs to provide technical assistance to covered entities and other11 state or local governmental entities in the development of drought12 mitigation plans.13 (3) The board is hereby authorized to expend revenues from the14 water efficiency grant program cash fund and to recommend the15 appropriation and expenditure of the revenues as is necessary from the16 unobligated balance of the five-percent share of the severance tax17 operational fund designated for use by the board for the purpose of18 assisting covered entities and other state or local governmental entities to19 develop drought mitigation plans that the office BOARD identifies as20 sufficient.21 (4) The board shall adopt guidelines for the office to use in22 reviewing, evaluating, and approving drought mitigation plans submitted23 by covered entities or other state or local governmental entities in24 accordance with this section.25 SECTION 21. In Colorado Revised Statutes, 39-29-109, amend26 (2)(a)(II.5)(B), (2)(a)(II.5)(C), and (2)(b)(III); and repeal (2)(a)(II.5)(D)27 SB25-283 -14- as follows:1 39-29-109. Severance tax trust fund - created - administration2 - distribution of money - legislative declaration - repeal. (2) State3 severance tax receipts must be credited to the severance tax trust fund as4 provided in section 39-29-108. All income derived from the deposit and5 investment of the money in the fund must be credited to the fund. At the6 end of any fiscal year, all unexpended and unencumbered money in the7 fund remains in the fund and must not be credited or transferred to the8 general fund or any other fund. All money in the fund is subject to9 appropriation by the general assembly for the following purposes:10 (a) The severance tax perpetual base fund. (II.5) The board11 shall use the money in the fund:12 (B) To direct the state treasurer to transfer amounts to the water13 supply reserve fund created in subsection (2)(c) of this section; AND14 (C) To direct the state treasurer to transfer amounts to the15 interbasin compact committee operation fund created in section16 37-75-107. and 17 (D) To direct the state treasurer to transfer amounts to the water18 efficiency grant program cash fund created in section 37-60-126 (12).19 (b) The severance tax operational fund. (III) The fund also20 includes amounts that were transferred to natural resources and energy21 grant programs under section 39-29-109.3 and that were transferred back22 to the fund in accordance with subsection (2)(c)(V) of this section and23 sections 24-33-111 (2)(a)(I)(C) 37-60-126 (12)(a)(V), and 37-75-107 (3).24 SECTION 22. In Colorado Revised Statutes, 37-75-103, amend25 (1) and (2)(b) as follows:26 37-75-103. Director of compact negotiations. (1) Within thirty27 SB25-283 -15- days after June 7, 2005 A VACANCY, the governor OR THE EXECUTIVE1 DIRECTOR OF THE DEPARTMENT OF NATURAL RESOURCES shall appoint a2 director of compact negotiations. which office is hereby created in the3 office of the governor. The director of compact negotiations shall act as4 the overseer and caretaker of the compact negotiations process5 established in this article ARTICLE 75.6 (2) The director of compact negotiations shall have the following7 responsibilities:8 (b) Oversee and Direct the expenditure of moneys MONEY9 appropriated pursuant to this article ARTICLE 75; and10 SECTION 23. Safety clause. The general assembly finds,11 determines, and declares that this act is necessary for the immediate12 preservation of the public peace, health, or safety or for appropriations for13 the support and maintenance of the departments of the state and state14 institutions.15 SB25-283 -16-