TL/DR –
Western Slope communities in Colorado are close to securing the purchase of water rights linked to the Shoshone Power Plant on the Colorado River, following a $40 million federal funding boost. The rights in question, some of the oldest and largest on the river, will be used to protect the water resources of the state’s Western Slope. If the purchase goes ahead as planned, the rights will become the largest, most influential environmental water right in Colorado’s history, and the deal is expected to increase water security on the Western Slope while preserving current flows to the Front Range.
Securing Colorado River Water Rights Nears Completion with Federal Funding
A Western Slope initiative to purchase substantial Colorado River water rights linked to the Shoshone Power Plant is near completion with a $40 million federal funding boost announced recently. These water rights, among the oldest and largest on the Colorado River in Colorado, significantly influence water flow through the state and to the Utah-Colorado border.
The Shoshone Power Plant, owned by Xcel Energy, uses two major water rights that can impact around 10,600 upstream water rights. In 2023, the Colorado River District initiated a deal to purchase these water rights and lease the water back to Xcel for electricity production. If successful, this will establish the largest environmental water right in state history.
Front Range water providers had previously shown interest in acquiring these rights, causing concerns among Western Slope communities about potential changes in water flow. The Colorado River District assures that the agreement will maintain current flow conditions and increase Western Slope water security without interrupting the water flow to the Front Range.
However, the proposed deal has sparked scrutiny from various stakeholders keen on protecting their water supplies. The Northern Colorado Water Conservancy District questioned the legality and necessity of spending $99 million taxpayer dollars on the purchase in Summer 2024.
Despite this, the agreement has garnered extensive support from farmers, river recreation businesses, officials, and a coalition of water users and providers. Led by the Colorado River District, the coalition has raised $56 million towards the purchase, which includes a $20 million contribution from the State of Colorado.
The federal funding, administered by the Bureau of Reclamation, comes from the Inflation Reduction Act. The Bureau also announced up to $152 million federal funding for 17 projects designed to support the stressed Colorado River Basin, increase drought resiliency, and restore habitats, with nearly $95 million earmarked for the Western Slope.
The Colorado River District has until 2027 to source the remaining $3 million to secure Shoshone’s water rights. The complex process also requires finalizing environmental water right details through the Colorado Water Conservation Board and gaining approval from the Colorado Public Utility Commission.
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