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Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.
NOTE:
26-0274.02 Renee Leone x2695 HOUSE BILL 26-1340 HOUSE SPONSORSHIP WinterT.andMauro, Bacon,Boesenecker,Caldwell,Clifford,Duran,Goldstein,Joseph, McCluskie, McCormick, Nguyen, Rutinel, Smith, Soper, Titone SENATE SPONSORSHIP Pelton R.
This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.
and Hinrichsen, Kipp, Simpson e n e 6 E a 0 A U , N g 1 S d y House Committees Senate Committees e M Agriculture, Water & Natural Resources Agriculture & Natural Resources R r g A BILL FOR AN ACT d e 6 C ONCERNING REQUIREMENTS FOR FORMERLY IRRIGATED E R 0 A n , AGRICULTURAL LAND FOR WHICH AN AGRICULTURAL E 2 8y S e a IRRIGATIONWATERRIGHTINWATERDIVISION 2 ISCHANGEDTO n M m ANOTHER BENEFICIAL USE .
To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.
A Bill Summary d d e 6 (Note:
HOUSE BILL 26-1340 BY REPRESENTATIVE(S) Winter T.
This summary applies to this bill as introduced and does a 0 S U , notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill U g 3 passes third reading in the house of introduction, a bill summary that H d r e A applies to the reengrossed version of this bill will be available at d http://leg.colorado.gov.) 3 The bill requires a water right owner who changes the use of their g water right in water division 2 from agricultural irrigation purposes to i 6 another beneficial use on or after January 1, 2027, to engage in a 0 S R , U d 2 H 2 r Shading denotes HOUSE amendment.
and Mauro, Bacon, Boesenecker, Caldwell, Clifford, Duran, Goldstein, Joseph, McCormick, Nguyen, Rutinel, Smith, Soper, Titone, McCluskie, Jackson, Stewart K.;
Double underlining denotes SENATE amendment.
also SENATOR(S) Pelton R.
e Ap Capital letters or bold & italic numbers indicate new material to be added to existing law.d Dashes through the words or numbers indicate deletions from existing law.
and Hinrichsen, Kipp, Simpson.
e A revegetation or a conversion to dryland farming with effective erosion controlandweedmanagementontheformerlyirrigatedagriculturalland.
C ONCERNING REQUIREMENTS FOR FORMERLY IRRIGATED AGRICULTURAL LAND FOR WHICH AN AGRICULTURAL IRRIGATION WATER RIGHT IN WATER DIVISION 2 IS CHANGED TO ANOTHER BENEFICIAL USE .
The bill implements a procedure that includes:
! Theidentificationofasite-specificstandardandevaluation methodology to measure and determine the success of the revegetation or conversion to dryland farming;
! A requirement that the water court appoint a third-party revegetation or dryland farming expert to conduct annual field reviews and issue reports concerning the success of the revegetation or conversion to dryland farming (maintenance period);
! After the conclusion of a maintenance period for formerly irrigated agricultural land, authorizing the water court to orderadditionalmaintenanceperiodsortolimittheamount of water subject to the water right to the percentage of formerlyirrigated agricultural land for which revegetation or conversion to dryland farming is complete;
and ! Limitationsonthepercentageof watersubject to the water right that can be used for the new beneficial use during the revegetation or conversion to dryland farming process.
SECTION1.
SECTION 1.
InColoradoRevisedStatutes,37-92-305,add(4.7) as follows:
In Colorado Revised Statutes, 37-92-305, add (4.7) as follows:
Standardswithrespecttorulingsoftherefereeand decisions of the water judge - definitions.
Standards with respect to rulings of the referee and decisions of the water judge - definitions.
(4.7) (a) OTWITHSTANDING SUBSECTION (4.5)OF THIS SECTION, THE TERMS AND CONDITIONS APPLICABLE TO CHANGES OF USE OF WATER RIGHTSFROMAGRICULTURALIRRIGATIONPURPOSESTOOTHERBENEFICIAL USES IN WATER DIVISIO2 DECREED ON OR AFTER JANUARY 1,2027, ARE DESIGNED TO ACCOMPLISH REVEGETATIONOR CONVERSION TO DRYLAND FARMING ,EROSION CONTROL ,AND WEED MANAGEMENT ON LAND FROM WHICH IRRIGATION WATER IS PERMANENTLY REMOVED FOR OTHER BENEFICIAL USES.
(4.7)(a) NTWITHSTANDINGSUBSECTION (4.5)OFTHISSECTION ,THE TERMSANDCONDITIONSAPPLICABLETOCHANGESOFUSEOFWATERRIGHTS FROM AGRICULTURAL IRRIGATION PURPOSES TO OTHER BENEFICIALUSES IN WATERDIVISION 2DECREED ON OR AFTER JANUARY 1,2027,ARE DESIGNED TO ACCOMPLISH REVEGETATION OR CONVERSION TO DRYLAND FARMING , ________ Capital letters or bold & italic numbers indicate new material added to existing law;
HE WATER COURT SHALL APPLY REVEGETATION OR CONVERSIONTODRYLANDFARMINGTERMSANDCONDITIONSINADECREE -2- 1340 APPROVING A SUBSEQUENT CHANGE OF USE OF A PREVIOUSLY CHANGED AGRICULTURAL IRRIGATION WATER RIGHT ONLY IF THE PRIOR DECREE CHANGING THE SAME AGRICULTURAL IRRIGATION WATER RIGHT DID NOT INCLUDE REVEGETATION OR CONVERSION TO DRYLAND FARMING TERMS OR CONDITIONS.
dashes through words or numbers indicate deletions from existing law and such material is not part of the act.
THE WATER RIGHT OWNER SHALL COMPLY WITH SUCH TERMS AND CONDITIONS .
EROSION CONTROL , AND WEED MANAGEMENT ON LAND FROM WHICH IRRIGATION WATER IS PERMANENTLY REMOVED FOR OTHER BENEFICIAL USES.THE WATER COURT SHALL APPLY REVEGETATION OR CONVERSION TO DRYLAND FARMING TERMS AND CONDITIONS IN A DECREE APPROVING A SUBSEQUENT CHANGE OF USE OF A PREVIOUSLY CHANGED AGRICULTURAL IRRIGATION WATER RIGHT ONLY IFTHE PRIOR DECREE CHANGING THE SAME AGRICULTURALIRRIGATIONWATERRIGHTDIDNOTINCLUDEREVEGETATION ORCONVERSIONTODRYLANDFARMINGTERMSORCONDITIONS .THEWATER RIGHT OWNER SHALL COMPLY WITH SUCH TERMS AND CONDITIONS .
HE TERMS AND CONDITIONS APPLICABLE TO WATER DIVISION 2INCLUDE:
THE TERMS AND CONDITIONS APPLICABLE TO WATER DIVISION2INCLUDE :
(I) (A) WHEN APPLYING TO THE WATER COURT FOR A CHANGE OF USE OF A WATER RIGHT PURSUANT TO THIS SUBSECTION (4.7)(a)THE WATER RIGHT OWNER SHALL IDENTIFY FOR THE WATER COURT S CONSIDERATION SITE-SPECIFIC CRITERIA AND AN ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY TO MEASURE AND DETERMINE THE EXTENT TO WHICH REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED ON THE FORMERLY IRRIGATED AGRICULTURAL LAND .
(I)(A) WHENAPPLYINGTOTHEWATERCOURTFORACHANGEOFUSE OF A WATER RIGHT PURSUANT TO THIS SUBSECTION (4.7)(a)THE WATER RIGHT OWNER SHALL IDENTIFY FOR THE WATER COURT 'S CONSIDERATION SITESPECIFIC CRITERIA AND AN ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATIONMETHODOLOGYTOMEASUREANDDETERMINETHEEXTENTTO WHICH REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLYESTABLISHEDONTHEFORMERLYIRRIGATEDAGRICULTURAL LAND .
HE WATER COURT SHALL INCLUDE SITE-SPECIFIC CRITERIA AND AN ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY IN THE DECREE APPROVING THE CHANGE OF USE OF THE WATER RIGHT.
HE WATER COURT SHALL INCLUDE SITESPECIFIC CRITERIA AND AN ASSOCIATEDSCIENTIFICANDOBJECTIVEEVALUATIONMETHODOLOGYINTHE DECREE APPROVING THE CHANGE OF USE OF THE WATER RIGHT.
(B) THE SITE-SPECIFIC CRITERIA IDENTIFIED PURSUANT TO SUBSECTION (4.7)(a)(I)(AOF THIS SECTION MUST INCLUDE WEED MANAGEMENT PROVISIONS DESIGNED TO PROTECT THE SOIL RESOURCE , PREVENT WEED INFESTATIONS , AND PROTECT THE AVAILABLE SOIL MOISTURE .
(B) THE SITE SPECIFIC CRITERIA IDENTIFIED PURSUANT TO SUBSECTION (4.7)(a)(I)(AOF THIS SECTION MUST INCLUDE WEED MANAGEMENT PROVISIONS DESIGNED TO PROTECT THE SOIL RESOURCE , PREVENT WEED INFESTATIONS , AND PROTECT THE AVAILABLE SOIL MOISTURE .ATAMINIMUM SUCHPROVISIONSMUSTINCLUDEREQUIREMENTS THATWEEDINFESTATIONSBECONTROLLEDBYMETHODSSUCHASMOWING , HERBICIDE APPLICATION,OR BIOLOGICAL CONTROL OR BY A COMBINATION OF MOWING ,HERBICIDE APPLICATION,BIOLOGICAL CONTROL ,AND OTHER APPROPRIATEMETHODS .NOXIOUSWEEDSMUSTBECONTROLLEDPURSUANT TO THE"C OLORADO N OXIOUS W EED ACT",ARTICLE 5.5OF TITLE35.
A T A MINIMUM , SUCH PROVISIONS MUST INCLUDE REQUIREMENTS THAT WEED INFESTATIONS BE CONTROLLED BY METHODS SUCH AS MOWING ,HERBICIDE APPLICATIO,OR BIOLOGICALCONTROLOR BY A COMBINATION OF MOWING ,HERBICIDE APPLICATIO, BIOLOGICAL CONTROL ,ANDOTHERAPPROPRIATEMETHODS .NOXIOUSWEEDSMUSTBE -3- 1340 CONTROLLED PURSUANT TO THE "COLORADO N OXIOUS W EED A CT", ARTICLE 5.5OF TITL35.
(II) (A) I,PRIOR TO APPLYING TO THE WATER COURT FOR THE CHANGE OF USE OF THE WATER RIGHT ,THE WATER RIGHT OWNER HAS , PURSUANTTOSECTION 24-65.1-501,OBTAINEDAPERMITFROMORENTERED INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE LOCAL LAND USE AUTHORITY WHERE THE FORMERLY IRRIGATED AGRICULTURAL LAND IS LOCATED ,WHICH PERMIT OR AGREEMENT REQUIRES REVEGETATION OR CONVERSIONTODRYLANDFARMINGANDINCLUDESSITE -SPECIFICCRITERIA PAGE 2-HOUSE BILL 26-1340 AND AN ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY , THE COURT SHALL USE THE SITESPECIFIC CRITERIA AND ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY SET FORTH IN THE PERMIT OR INTERGOVERNMENTAL AGREEMENT .
(II) (A)F,PRIOR TO APPLYING TO THE WATER COURT FOR THE CHANGE OF USE OF THE WATER RIGHT, THE WATER RIGHT OWNER HAS , PURSUANT TO SECTION 24-65.1-501,OBTAINED A PERMIT FROM OR ENTERED INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE LOCAL LAND USE AUTHORITY WHERE THE FORMERLY IRRIGATEDAGRICULTURAL LAND IS LOCATED , WHICH PERMIT OR AGREEMENT REQUIRES REVEGETATION OR CONVERSION TO DRYLAND FARMING AND INCLUDES SITESPECIFIC CRITERIA AND AN ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY , THE COURT SHALL USE THE SI-SPECIFIC CRITERIA AND ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY SET FORTH IN THE PERMIT OR INTERGOVERNMENTAL AGREEMENT .
(B) IF THE WATER RIGHT OWNER HAS NOT OBTAINED A PERMIT OR ENTERED INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO SECTION 24-65.1-501AND THE LOCAL LAND USE AUTHORITY WHERE THE FORMERLY IRRIGATED AGRICULTURAL LAND IS LOCATED HAS ADOPTED SITESPECIFIC CRITERIA AND A SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGYFORREVEGETATIONORCONVERSIONTODRYLANDFARMING , THE WATER COURT SHALL USE THAT CRITERIA AND EVALUATION METHODOLOGY .
(B) FTHE WATER RIGHT OWNER HAS NOT OBTAINED A PERMIT OR ENTERED INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO SECTION 24-65.1-50AND THE LOCAL LAND USE AUTHORITY WHERE THE FORMERLY IRRIGATED AGRICULTURAL LAND IS LOCATED HAS ADOPTED SITESPECIFIC CRITERIA AND A SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY FOR REVEGETATION OR CONVERSION TO DRYLAND FARMING THEWATERCOURTSHALLUSETHATCRITERIAANDEVALUATION METHODOLOGY .
(III) (A) UON ISSUING A CHANGE -OFUSE DECREE PURSUANT TO THIS SUBSECTION (4.7)(a)THE WATER COURT SHALL APPOINT ,AND THE WATER RIGHT OWNER SHALL PAY FOR THE SERVICES OF ,A NEUTRAL THIRD-PARTY REVEGETATION OR DRYLAND FARMING EXPERT WHO SHALL EVALUATE THE PROGRESS OF THE REVEGETATION OR CONVERSION TO DRYLANDFARMINGONTHEFORMERLYIRRIGATEDAGRICULTURALLAND ,ON A FIELDBY FIELD BASI,ANDDETERMINEWHENANDTOWHATEXTENT THE REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED .
(III) (A)PON ISSUING A CHANGEOF USE DECREE PURSUANT TO THIS SUBSECTION(4.7)(a)THE WATER COURT SHALL APPOINT,AND THE WATER RIGHT OWNER SHALL PAY FOR THE SERVICES OF ,A NEUTRAL THIRD-PARTYREVEGETATIONORDRYLANDFARMINGEXPERTWHOSHALL EVALUATE THE PROGRESS OF THE REVEGETATION OR CONVERSION TO -4- 1340 DRYLAND FARMING ON THE FORMERLY IRRIGATED AGRICULTURAL LAND , ONAFIELD -BY-FIELDBASI,ANDDETERMINEWHENANDTOWHATEXTENT THE REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED.
(B) W ITHINNINETYDAYSBEFORE N OVEMBER 1OFEACHYEAR ,THE THIRD-PARTY EXPERT SHALL CONDUCT AN ANNUAL FIELD REVIEW OF THE FORMERLYIRRIGATEDAGRICULTURALLANDANDPRODUCEFIELD -BY-FIELD STATUS REPORTS ANNUALLY UNTIL REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED ,AS APPROVED BY THE WATER COURT .
(B) W ITHIN NINETY DAYS BEFORENOVEMBER 1OF EACH YEAR , THE THIRD-PARTY EXPERT SHALLCONDUCT AN ANNUALFIELDREVIEWOF THE FORMERLY IRRIGATED AGRICULTURAL LAND AND PRODUCE FIELD-BY-FIELD STATUS REPORTS ANNUALLY UNTIL REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED,AS APPROVED BY THE WATER COURT .
(C) A T LEAST TWENTY DAYS PRIOR TO THE FIELD REVIEW ,THE WATER RIGHT OWNER SHALL GIVE NOTICE OF THE OCCURRENCE OF THE THIRD-PARTY EXPERT S FIELD REVIEW TO THE OWNER OF THE FIELD WITHIN THE FORMERLY IRRIGATED AGRICULTURAL LAND AND THE PARTIES TO THE CHANGEOFUSEOFTHEWATERRIGHTPROCEEDING ,ANDTHEPARTIESSHALL HAVE AN OPPORTUNITY TO PARTICIPATE IN THE FIELD REVIEW (D) THETHIRD PARTYEXPERTSHALLSTATEINEACHSTATUSREPORT THE PERCENTAGE OF THE FORMERLY IRRIGATED FIELD ON WHICH PAGE 3-HOUSE BILL 26-1340 REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED .
(C) A T LEAST TWENTY DAYS PRIOR TO THE FIELD REVIE,THE WATER RIGHT OWNER SHALL GIVE NOTICE OF THE OCCURRENCE OF THE THIRD-PARTYEXPERT SFIELDREVIEWTOTHEOWNEROFTHEFIELDWITHIN THEFORMERLYIRRIGATEDAGRICULTURALLANDANDTHEPARTIESTOTHE CHANGE OF USE OF THE WATER RIGHT PROCEEDING ,AND THE PARTIES SHALL HAVE AN OPPORTUNITY TO PARTICIPATE IN THE FIELD REV.EW (D) T HE THIRD-PARTY EXPERT SHALL STATE IN EACH STATUS REPORT THE PERCENTAGE OF THE FORMERLY IRRIGATED FIELD ON WHICH REVEGETATIONORCONVERSIONTODRYLANDFARMINGISSUCCESSFULLY ESTABLISHED.
(E) THE THIRD-PARTY EXPERT SHALL PROVIDE THE STATUS REPORT TO THE WATER RIGHT OWNER ON OR BEFORE DECEMBER 1 OF EACH YEAR, AND THE WATER RIGHT OWNER SHALL SUBMIT THE STATUS REPORT TO THE OWNER OF THE FORMERLY IRRIGATED FIELD ,THE WATER COURT ,THE DIVISIONOFWATERRESOURCES ,ASDESCRIBEDINSECTION 24-33-104(1)(e), ANDTHEPARTIESTOTHECHANGEOFUSEOFTHEWATERRIGHTPROCEEDING WITHIN TWENTY DAYS AFTER RECEIVING THE STATUS REPORT FROM THE THIRD-PARTY EXPERT .
(E) THETHIRD-PARTYEXPERTSHALLPROVIDETHESTATUSREPORT TOTHE WATER RIGHT OWNER ON OR BEFORE DECEMBER 1 OFEACHYEAR , ANDTHEWATERRIGHTOWNERSHALLSUBMITTHESTATUSREPORTTOTHE OWNER OF THE FORMERLY IRRIGATED FIELD ,THE WATER COURT ,THE DIVISION OF WATER RESOURCES, AS DESCRIBED IN SECTIO24-33-104 (1)(e)AND THE PARTIES TO THE CHANGE OF USE OF THE WATER RIGHT PROCEEDINGWITHINTWENTYDAYSAFTERRECEIVINGTHESTATUSREPORT -5- 1340 FROM THE THIRD -PARTY EXPERT.
HE WATER COURT SHALL GIVE THE PARTIES SIXTY DAYS TO COMMENT ON OR REBUT THE STATUS REPORT OR THE STATUS OF THE FORMERLY IRRIGATED FIELD .
THE WATER COURT SHALL GIVE THE PARTIES SIXTY DAYS TO COMMENT ON OR REBUT THE STATUS REPORT OR THE STATUS OF THE FORMERLY IRRIGATED FIEL.
(IV) (A) A NNUAL FIELD REVIEWS AND STATUS REPORTS SHALL CONTINUE PURSUANT TO SUBSECTION (4.7)(a)(IIOF THIS SECTION UNTIL THE WATER COURT DETERMINES ,BASED ON THE THIRD PARTY EXPERT 'S STATUS REPORT AND AFTER CONSIDERING ANY COMMENTS OR REBUTTALS SUBMITTED WITHIN THE COMMENT PERIOD , THAT REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED ON A FIELD.
(IV) (A) ANNUAL FIELD REVIEWS AND STATUS REPORTS SHALL CONTINUEPURSUANTTOSUBSECTION (4.7)(a)(IOFTHISSECTIONUNTIL THE WATER COURT DETERMINES ,BASED ON THE THIRD-PARTY EXPERT S STATUSREPORTANDAFTERCONSIDERINGANYCOMMENTSORREBUTTALS SUBMITTED WITHIN THE COMMENT PERIOD ,THAT REVEGETATION OR CONVERSIONTODRYLANDFARMINGISSUCCESSFULLYESTABLISHEDONA FIELD.UPONSUCHADETERMINATION ,THEWATERCOURTMAYDEEMTHE TERMSANDCONDITIONSSETFORTHINTHISSUBSECTION (4.7)(aSATISFIED AS TO THAT FIEL.
UPON SUCH A DETERMINATION ,THE WATER COURT MAY DEEM THE TERMS AND CONDITIONS SET FORTH IN THIS SUBSECTION(4.7)(aSATISFIED AS TO THAT FIELD.
(B) IF THE WATER COURT FINDS THAT THE WATER RIGHT OWNER HAS DEMONSTRATED ,OVER MULTIPLE REPORTING PERIOD,ASUSTAINED FAILURE TOWARD ACHIEVING REVEGETATION OR CONVERSION TO DRYLANDFARMING ,THEWATERCOURTMAY INITSDISCRETION,LIMITTHE PERCENTAGE OF THE WATER SUBJECT TO THE CHANGED WATER RIGHT AVAILABLE FOR THE NEW BENEFICIAL US.
(B) IFTHEWATERCOURTFINDSTHATTHEWATERRIGHTOWNERHAS DEMONSTRATED , OVER MULTIPLE REPORTING PERIODS ,A SUSTAINED FAILURETOWARDACHIEVINGREVEGETATIONORCONVERSIONTODRYLAND FARMING , THE WATER COURT MAY , IN ITS DISCRETION, LIMIT THE PERCENTAGE OF THE WATER SUBJECT TO THE CHANGED WATER RIGHT AVAILABLE FOR THE NEW BENEFICIAL USE .
SUCH A LIMITATION MUST BE PROPORTIONALTOTHEEXTENTTOWHICHREVEGETATIONORCONVERSION TO DRYLAND FARMING HAS NOT BEEN SUCCESSFULLY ESTABLISHED .
SUCH A LIMITATION MUST BE PROPORTIONAL TO THE EXTENT TO WHICH REVEGETATION OR CONVERSION TO DRYLAND FARMING HAS NOT BEEN SUCCESSFULLY ESTABLISHED .
(C) IF THE WATER COURT DETERMINES THAT REVEGETATION OR CONVERSION TO DRYLAND FARMINGIS SUCCESSFULLY ESTABLISHED AND THE COURT MAKESSPECIFICFINDINGS,SUPPORTEDBYTHE RECORD ,THAT THE FIELD PRESENTS A SUBSTANTIAL RISK THAT REVEGETATION OR CONVERSION TO DRYLAND FARMING WILL NOT CONTINUE TO BE SUCCESSFULLYESTABLISHED ,THENTHECOURTMAYIMPOSEADDITIONAL , TIME-LIMITED OVERSIGHT PERIOD.
(C) IF THE WATER COURT DETERMINES THAT REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED AND THE COURT MAKES SPECIFIC FINDINGS,SUPPORTED BY THE RECORD ,THAT THE FIELD PRESENTS A SUBSTANTIAL RISK THAT REVEGETATION OR CONVERSION TO DRYLAND FARMING WILL NOT CONTINUE TO BE SUCCESSFULLY ESTABLISHED ,THEN THE COURT MAY IMPOSE ADDITIONAL , TIME-LIMITED OVERSIGHT PERIODS.
-6- 1340 (V) A WATER RIGHT OWNER IMPLEMENTING A DECREED CHANGE OFUSEOFAWATERRIGHTPURSUANTTOTHISSUBSECTION (4.7)(aSHALL COMPLY WITH THE TERMS AND CONDITIONS DECREED BY THE WATER COURTTOENSUREREVEGETATIONORCONVERSIONTODRYLANDFARMING ISSUCCESSFULLYESTABLISHED .THEWATERCOURTSHALLIMPOSETERMS ANDCONDITIONSSUFFICIENTTOENSUREREVEGETATIONORCONVERSION TO DRYLAND FARMING IS SUCCESSFULLY ESTABLISHED AND ORDER THAT SUCH TERMS AND CONDITIONS REMAIN IN EFFECT UNTIL THE APPLICABLE REQUIREMENTS OF THIS SUBSECTION(4.7)(aARE FULLY SATISFIE.
PAGE 4-HOUSE BILL 26-1340 (V) A WATER RIGHT OWNER IMPLEMENTING A DECREED CHANGE OF USE OF A WATER RIGHT PURSUANT TO THIS SUBSECTION (4.7)(a)SHALL COMPLYWITHTHETERMSANDCONDITIONSDECREEDBYTHEWATERCOURT TO ENSURE REVEGETATION OR CONVERSION TO DRYLAND FARMING IS SUCCESSFULLYESTABLISHED .THEWATERCOURTSHALLIMPOSETERMSAND CONDITIONS SUFFICIENT TO ENSURE REVEGETATION OR CONVERSION TO DRYLANDFARMINGISSUCCESSFULLYESTABLISHEDANDORDERTHATSUCH TERMS AND CONDITIONS REMAIN IN EFFECT UNTIL THE APPLICABLE REQUIREMENTS OF THIS SUBSECTION (4.7)(a)ARE FULLY SATISFIE.
HE COURT SHALL ALSO DO ONE OF THE FOLLOWIN:
THE COURT SHALL ALSO DO ONE OF THE FOLLOWING:
(A) O RDER THE WATER RIGHT OWNER TO PROVIDE FINANCIAL ASSURANCE , SUCH AS A PERFORMANCE BOND OR OTHER FINANCIAL SECURITY,TO THE LOCAL LAND USE AUTHORITY WHERE THE FORMERLY IRRIGATED AGRICULTURAL LAND IS LOCATED IN AN AMOUNT SUFFICIENT TO COVER THE REASONABLY ANTICIPATED TOTAL COST TO ACHIEVE SUCCESSFULLY ESTABLISHED REVEGETATION ON THE FORMERLY IRRIGATED AGRICULTURAL LAND;
(A) O RDER THE WATER RIGHT OWNER TO PROVIDE FINANCIAL ASSURANCE , SUCH AS A PERFORMANCE BOND OR OTHER FINANCIAL SECURITY, TO THE LOCAL LAND USE AUTHORITY WHERE THE FORMERLY IRRIGATEDAGRICULTURALLANDISLOCATEDINANAMOUNTSUFFICIENTTO COVER THE REASONABLY ANTICIPATED TOTAL COST TO ACHIEVE SUCCESSFULLYESTABLISHEDREVEGETATIONONTHEFORMERLYIRRIGATED AGRICULTURAL LAND ;
(B) PLACELIMITATIONSONTHETIMINGORPERCENTAGEOFWATER SUBJECT TO THE WATER RIGHT THAT MAY BE USED FOR THE NEW BENEFICIALUSEWHILEALLOWINGTHECONTINUEDEXERCISEOFEXISTING DECREED USES OF THE WATER AND,IN ESTABLISHING SUCH LIMITATIO,S CONSIDERTHESITE SPECIFICCRITERIAANDOTHERFACTORSRELEVANTTO THE SUCCESSFULESTABLISHMENT OFREVEGETATIONOR CONVERSION TO DRYLAND FARMING ;OR (C) IF THE WATER RIGHT OWNER HAS OBTAINED A PERMIT OR ENTERED INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO SECTION 24-65.1-501THAT REQUIRES FINANCIAL ASSURANCES TO THE -7- 1340 LOCAL LAND USE AUTHORITY IN AN AMOUNT SUFFICIENT TO COVER THE REASONABLY ANTICIPATED TOTAL COST TO ACHIEVE SUCCESSFULLY ESTABLISHEDREVEGETATIONORTHATESTABLISHESREQUIREMENTSTHAT GOVERN THE TIMING OF USE OR PERCENTAGE OF WATER SUBJECT TO THE WATER RIGHT THAT MAY BE USED FOR THE NEW BENEFICIAL USE WHILE SIMULTANEOUSLY ACHIEVING SUCCESSFULLY ESTABLISHED REVEGETATION OR CONVERSION TO DRYLAND FARMING ,ADOPT AND INCORPORATE THOSE REQUIREMENTS INTO THE CHANGE OF-USE DECREE AND NOT IMPOSE EITHER OF THE REQUIREMENTS SET FORTH IN SUBSECTIONS (4.7)(a)(V)(AAND (4.7)(a)(V)(OF THIS SECTIO.
(B) PLACE LIMITATIONS ON THE TIMING OR PERCENTAGE OF WATER SUBJECTTOTHEWATERRIGHTTHATMAYBEUSEDFORTHENEWBENEFICIAL USEWHILEALLOWINGTHECONTINUEDEXERCISEOFEXISTINGDECREEDUSES OF THE WATER AND ,IN ESTABLISHING SUCH LIMITATION, CONSIDER THE SITESPECIFICCRITERIAANDOTHERFACTORSRELEVANTTOTHESUCCESSFUL ESTABLISHMENTOFREVEGETATIONORCONVERSIONTODRYLANDFARMING ;
(VI) F, FOLLOWING A CHANGE OF USE OF A WATER RIGHT PURSUANT TO THIS SUBSECTION(4.7)(aTHE WATER COURT FINDS THAT A WATER RIGHT OWNER OR A LANDOWNER , WITHIN A REASONABLE AMOUNT OF TIME, IS IRRIGATING THE FORMERLY IRRIGATED AGRICULTURAL LAND WITH ANOTHER SOURCE OF WATER ;
OR (C) IF THE WATER RIGHT OWNER HAS OBTAINED A PERMIT OR ENTERED INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO SECTION24-65.1-501THATREQUIRESFINANCIALASSURANCESTOTHELOCAL LAND USE AUTHORITY IN AN AMOUNT SUFFICIENT TO COVER THE REASONABLY ANTICIPATED TOTAL COST TO ACHIEVE SUCCESSFULLY ESTABLISHED REVEGETATION OR THAT ESTABLISHES REQUIREMENTS THAT GOVERN THE TIMING OF USE OR PERCENTAGE OF WATER SUBJECT TO THE WATER RIGHT THAT MAY BE USED FOR THE NEW BENEFICIAL USE WHILE SIMULTANEOUSLYACHIEVINGSUCCESSFULLYESTABLISHEDREVEGETATION OR CONVERSION TO DRYLAND FARMING ,ADOPT AND INCORPORATE THOSE REQUIREMENTSINTOTHECHANGE OF-USEDECREEANDNOTIMPOSEEITHER OF THE REQUIREMENTS SET FORTH IN SUBSECTIONS (4.7)(a)(V)(AAND (4.7)(a)(V)(BOF THIS SECTIO.
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IS RE-IRRIGATINGTHELANDWITHTHEWATERFROMTHESAMEWATERRIGHT , AS AUTHORIZED BY THE WATER COURT ;OR IS CONVERTING THE LAND FROMIRRIGATEDAGRICULTURALLANDTOANOTHERUSEINWHICHWEEDS AND SOIL EROSION ARE ADEQUATELY CONTROLLED ,THE WATER COURT SHALLDEEMTHETERMSANDCONDITIONSSETFORTHINTHISSUBSECTION (4.7)(aSATISFIE.
PAGE 5-HOUSE BILL 26-1340 (VI) F,FOLLOWINGACHANGEOFUSEOFAWATERRIGHTPURSUANT TO THIS SUBSECTION (4.7)(a)THE WATER COURT FINDS THAT A WATER RIGHT OWNER OR A LANDOWNER ,WITHIN A REASONABLE AMOUNT OFTIME , IS IRRIGATING THE FORMERLY IRRIGATED AGRICULTURAL LAND WITH ANOTHERSOURCE OFWATER ;ISRE -IRRIGATINGTHELANDWITHTHEWATER FROM THE SAME WATER RIGHT ,AS AUTHORIZED BY THE WATER COURT ;
(VII) THIS SUBSECTION(4.7)(aIS NOT INTENDED TO AND MUST NOT BE CONSTRUED TO AFFECT THE PROVISIONS GOVERNING LAND USE AUTHORITY SET FORTH IN ARTICL65.1OF TITLE24.
OR IS CONVERTING THE LAND FROM IRRIGATED AGRICULTURAL LAND TO ANOTHER USE IN WHICH WEEDS AND SOIL EROSION ARE ADEQUATELY CONTROLLED ,THEWATERCOURTSHALLDEEMTHETERMSANDCONDITIONS SET FORTH IN THIS SUBSECTION (4.7)(aSATISFIED .
(b) AS USED IN SUBSECTIO(4.7)(aOF THIS SECTIO:
(VII) THISSUBSECTION (4.7)(a)ISNOTINTENDEDTOANDMUSTNOT BE CONSTRUED TO AFFECT THE PROVISIONS GOVERNING LAND USE AUTHORITY SET FORTH IN ARTICLE 65.1OF TITLE 24.
(I) "PERMIT" MEANS A PERMIT ISSUED PURSUANT TO SECTION 24-65.1-501.
(b) AS USED IN SUBSECTION (4.7)(aOF THIS SECTION :
-8- 1340 (II) "SUCCESSFULLY ESTABLISHED" OR "SUCCESSFUL ESTABLISHMENT " MEANS THAT REVEGETATION OR CONVERSION TO DRYLANDFARMINGISACCOMPLISHEDANDWEEDSANDSOILEROSIONARE ADEQUATELYCONTROLLEDONTHEFORMERLYIRRIGATEDAGRICULTURAL LANDINACCORDANCEWITHTHESITE -SPECIFICCRITERIAANDASSOCIATED SCIENTIFICANDOBJECTIVEEVALUATIONMETHODOLOGYINCLUDEDINTHE WATERCOURT SDECREEPURSUANTTOSUBSECTION (4.7)(a)(I)(OFTHIS SECTION.
(I) "PERMIT " MEANS A PERMIT ISSUED PURSUANT TO SECTION 24-65.1-501.
(II) "S UCCESSFULLY ESTABLISHED " OR "SUCCESSFUL ESTABLISHMENT "MEANSTHATREVEGETATIONORCONVERSIONTODRYLAND FARMING IS ACCOMPLISHED AND WEEDS AND SOIL EROSION ARE ADEQUATELY CONTROLLED ON THE FORMERLY IRRIGATED AGRICULTURAL LAND IN ACCORDANCE WITH THE SITE -SPECIFIC CRITERIA AND ASSOCIATED SCIENTIFIC AND OBJECTIVE EVALUATION METHODOLOGY INCLUDED IN THE WATER COURT 'S DECREE PURSUANT TO SUBSECTION (4.7)(a)(I)(AOF THIS SECTION .
on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(August 12, 2026, if adjournment sine die is on May 13, 2026);
on the day following the expiration of the ninety-dayperiod after final adjournment of the general assembly(August 12, 2026, if adjournment sine die is on May 13, 2026);
except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
except that, if a referendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestate constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approvedbythepeopleatthegeneralelectiontobeheldinNovember2026 PAGE 6-HOUSE BILL 26-1340 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
-9- 1340
____________________________ ____________________________ Julie McCluskie James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.
Polis GOVERNOR OF THE STATE OF COLORADO PAGE 7-HOUSE BILL 26-1340
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