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The U.S. Bureau of Reclamation is releasing $40 million in federal funding to the Colorado River District to help purchase senior water rights on the Colorado River, which are tied to the Shoshone Power Plant. This brings the total funds secured for the project to $97 million, just short of the $99 million needed. The purchase of the rights would ensure water continues to flow west during dry years for communities, wildlife habitats, and farms downstream.
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Colorado River District Gets Closer to Securing Historic Water Rights
Efforts by the Colorado River District to acquire senior water rights connected to Xcel Energy’s Shoshone Power Plant in Glenwood Canyon have received a financial boost. The U.S. Bureau of Reclamation has released $40 million in federal funding that had been on hold for over a year. This release takes the total amount raised for the acquisition to $97 million, which is just under the project’s requirement of $99 million.
The Colorado River District, a taxpayer-funded agency based in Glenwood Springs, has been actively working to buy these rights from the utility firm. The goal is to ensure that billions of gallons of water continue to flow west, even during draughts, thereby benefiting surrounding communities, wildlife habitats, and downstream farms.
The district and other Western Slope bodies were apprehensive that if another party, like a Front Range utility, were to acquire the rights first, it could disrupt the assured water flow.
According to the district, “This award is a major breakthrough in our coalition’s effort to permanently secure historic flows on the Colorado River.”
The Colorado River District was awarded the funds as part of the Inflation Reduction Act in the final days of the Biden administration in January 2025. However, the funding was subsequently frozen by the Trump administration after assuming office.
Both Democratic and Republican members of Colorado’s federal delegation urged the Trump administration to release the funding. Republican Rep. Jeff Hurd, Democrat Rep. Joe Neguse, and Senators Michael Bennet and John Hickenlooper were thanked for their advocacy in securing the funds.
Rep. Hurd expressed that “This is a major step forward for Western Colorado and an important step toward protecting one of the most critical water resources in our region,” during a news release held on Friday to announce the funding.
The acquisition of Shoshone water rights, first agreed upon in 2023, is now a step closer to fruition. Still, approval for the sale from Colorado’s public utility regulators is needed. Additionally, the river district must navigate the state’s water court process.
The Trump administration released $47 million last week as part of the already-awarded Inflation Reduction Act funding for four other Colorado River projects. Meanwhile, Hickenlooper’s office has reported that nine more projects await funding, having been previously awarded a combined $52 million from the Act.
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