SB22-028 Summary

• Creates the Groundwater Compact Compliance and Sustainability Fund with $60 million in appropriations from the American Rescue Plan Act funds for the 2022-23 fiscal year to incentivize retirement of irrigation wells and irrigated acreage in the Rio Grande and Republican River basins.

• Establishes the Colorado Water Conservation Board as fund administrator, with disbursement recommendations from the Rio Grande and Republican River Water Conservation District boards, subject to State Engineer approval.

• Allows up to 5 percent of annually appropriated funds for direct and indirect costs incurred by the Board, conservation districts, and State Engineer in implementation.

• Requires the Department of Natural Resources to report annually from 2023 through 2027 on fund expenditures and whether the full $60 million will be spent for groundwater reduction purposes.

• Automatically repeals the fund once all groundwater reduction requirements established by federal or state court order, stipulation, or statute have been met, but not before January 1, 2025; unobligated funds may be transferred to the Water Plan Implementation Account starting August 15, 2024.