The Rio Grande Canal, the largest water right in Colorado. (Alamosa Citizen)

Colorado is moving toward putting $60 million into a new groundwater compact compliance fund for the Rio Grande and Republican River basins that would be created and funded through a bill championed by state Sen. Cleave Simpson of Alamosa.

Senate Bill 28 would create the Compact Compliance Fund that would be administered by the Colorado Division of Water Resources. The fund would receive an appropriation of $60 million from Colorado’s share of federal COVID relief money from American Rescue Plan Act.

The bill, cosponsored by Sen. Jerry Sonnenberg, R-Sterling, originally only established the fund, and then an amendment unanimously adopted Thursday by the Colorado House Agriculture, Livestock, and Water Committee added $60 million into it.

The bill will next be heard by the House Appropriations Committee.

“Given the unanimous votes every step of the way, so far, I am hopeful the bill with the appropriation will become law in the next week or two,” Simpson, a Republican, told Alamosa Citizen. “The timing of the availability of federal dollars and the growing sense of urgency in both basins created a unique opportunity that will serve both of these communities well. Still some work to do, but things look very promising for both of these Colorado communities.”

If the Compact Compliance Fund is adopted by the Colorado legislature it would pay for efforts to meet groundwater sustainability targets in the Rio Grande Basin and interstate compact requirements for the Republican River Basin.

Each basin would get an earmark of $30 million to pay for efforts like retiring groundwater wells and other conservation and water sustainability measures. The goal would be to spend all $60 million within the time constraints put on federal COVID dollars, whether it’s a 50-50 split or not.

The threat to livelihood for farmers and ranchers and economic disaster for the regions tied to irrigated agriculture in the Rio Grande and Republican River basins was made loud and clear in the House Agriculture, Livestock, and Water Committee. 

“These farmers and ranchers have done everything they possibly can,” said Marisa Fricke, one of the Rio Grande Water Conservation District’s program managers. “They grow produce for us and hay for our cattle.”

Farmers and ranchers in both basins have levied property taxes on themselves through the water conservation districts to pay for their efforts to help the Rio Grande and Republican River meet groundwater sustainability and interstate compact compliance goals set by the state.

It has meant fallowing of crop fields, permanently retiring irrigated acreage, taking groundwater wells off line either temporarily or permanently, and compensating farmers and ranchers for their efforts to help offset loss from less irrigated acres.

State Reps. Marc Catlin, R-Montrose, and Dylan Roberts, D-Montrose, made impassioned pleas for including $60 million of the ARPA money into the compact compliance fund during their presentation of the bill in the House Agriculture Committee. Both are House sponsors of the bill.

“This is an opportunity with these funds to say, ‘We’re with you,’” said Catlin of the risk farmers and ranchers take their sacrifices to address compact and sustainability issues on the Republican River.

“This is a great bill for the San Luis Valley and Republican River Basin,” said Heather Dutton, district manager of the San Luis Valley Water Conservancy District. “Colorado through COVID relief bills provide a once in a lifetime opportunity to invest in our communities. The imbalance between water use and supply is a critical issue facing Colorado and especially the basins highlighted in this legislation.”

Farmers in the San Luis Valley are looking to take even more drastic steps in their efforts to meet state targets on groundwater pumping and recharging of the Upper Rio Grande Basin’s unconfined aquifer. In Subdistrict 1 of the Rio Grande Water Conservation District, farmers are facing a new proposed amendment to the subdistrict’s Plan of Water Management that would tie the level of groundwater pumping allowed to the natural surface water of the property. Some farms in the subdistrict do not have natural surface water, in which case they would have to purchase water credits from a neighboring farm or pay an overpumping fee of $500 per acre-foot.

This concept keeps the system in balance by replenishing what has been withdrawn from the aquifer with surface water and allows the community within Subdistrict No.1 to work together through the exchange and sale of credits. In the event that more groundwater is withdrawn from the aquifer and not replenished an overpumping fee of $500 per acre-foot would be assessed, according to the proposed amendment to the subdistrict’s water management plan. Money collected by the conservation district from an over pumping charge would come back to the Subdistrict 1 community in the form of payments towards enrolling in water conservation programs, according to Fricke.

“For over a decade farmers and ranchers have worked to meet sustainability levels and have taxed themselves assessments for waters taken out of the aquifer,” Fricke told House ag committee members.

Eventually the water conservation districts would establish guidelines and the state Division of Water Resources would administer drawdowns of the fund. In the unlikely chance Rio Grande and Republican River water managers didn’t spend all $60 million, the money would revert to the division of water resources.

Future state appropriations to Compact Compliance Fund would hinge on executive and legislative budget priorities.

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