SF 84

ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
AN ACT relating to water within Wyoming's portion of the
Colorado River basin; establishing a voluntary water
conservation program; providing an application and approval
process for the program; providing an appeal process;
authorizing the storage and release of water conserved
under the program; establishing a sunset date; providing
legislative   findings;   requiring   a   report;   requiring
rulemaking;    authorizing     positions;     providing    an
appropriation; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
     Section 1.    W.S. 41-3-117 through 41-3-119 are created
to read:
     41-3-117.    Definitions; short title.
     (a)   As used in this act:
          (i) "Colorado River basin" shall have the same
meaning as defined in the Colorado River Compact and in the
Upper Colorado River Basin Compact;
          (ii) "Colorado River Compact" means the document
signed on November 24, 1922, by representatives from the
states of Arizona, California, Colorado, Nevada, New
Mexico, Utah, and Wyoming, and codified at W.S. 41-12-301;
          (iii) "Colorado River system" shall have the
same meaning as defined in the Colorado River Compact and
the Upper Colorado River Basin Compact;
          (iv) "Conservation project" means a voluntary
project approved by the state engineer that reduces
consumptive use within Wyoming's portion of the Colorado
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
River basin or that may help satisfy Wyoming's interstate
compact obligations through interstate agreements or under
a valid court order entered by a court of competent
jurisdiction;
          (v) "Consumptive use" means the depletion of
water for domestic and agricultural beneficial uses as
those terms are defined and referred to in the Colorado
River Compact and the Upper Colorado River Basin Compact.
"Consumptive use" also includes the full amount of water:
               (A) Consumed    in   association   with     the
production of electrical power other than hydropower;
               (B) Diverted from the Upper Colorado River
system for which there are no return flows to that system,
including diversions outside the natural Colorado River
watershed.
          (vi) "Curtailment" means the curtailment of
water use under the terms of the Upper Colorado River Basin
Compact;
          (vii) "Involuntary water use regulation" means
the regulation of water rights by a Wyoming hydrographer or
water commissioner as authorized by law and in accordance
with established priorities or as ordered by a court of
competent jurisdiction;
          (viii) "Program"    means  the   voluntary     water
conservation program authorized pursuant to this act;
          (ix) "Upper Colorado River Basin Compact" means
the document signed on October 11, 1948, by representatives
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
from the states of Arizona, Colorado, New Mexico, Utah, and
Wyoming, and codified at W.S. 41-12-401;
          (x) "Upper Colorado River Commission" means the
administrative agency created by article VIII of the Upper
Colorado River Basin Compact;
            (xi)   "This   act"   means   W.S.    41-3-117    through
41-3-119.
     (b) This act shall be known and may be cited as the
"Voluntary Water Conservation Program Act".
     41-3-118. Conservation        project       applications     and
approval; sunset.
     (a) Any person with a right to beneficially use water
under a valid water right that diverts water from within
Wyoming's portion of the Colorado River basin may apply to
the state engineer for approval of a conservation project.
Conservation project applications submitted under this
section shall be in writing and filed in the office of the
state engineer on a form provided by the state engineer.
Conservation project applications may include multiple
water rights and multiple appropriators, and shall be
accompanied by any information that the state engineer may
require. If the applicant is not the owner of the
applicable water right, the applicant shall provide written
consent from the water right owner.
     (b) For the purpose of providing notice of the
program and of conservation project applications to water
right owners and other interested persons, the state
engineer shall provide the opportunity for water right
owners and other interested persons to request notice of
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
conservation project applications by regular mail or by
electronic   means.  Any   person  requesting   notice  of
conservation project applications under this subsection
shall identify the water district or districts for which
their request applies and shall provide a valid mailing or
email address.
      (c) The state engineer shall publish notice of each
conservation project application filed under subsection (a)
of this section on the state engineer's website and shall
provide the regular mail or electronic notice required
under this section not less than thirty (30) days before
the state engineer issues a decision on the application.
The    state   engineer   shall   provide  notice  of    each
conservation project application to all persons who have
requested notice of applications within that water district
and have provided a valid mailing or email address.
Additionally, not less than thirty (30) days before the
state engineer issues a decision on any conservation
project application that proposes to forgo the diversion
and use of water for irrigation, the applicant shall
certify to the state engineer that the applicant made a
good faith effort to provide notice of the conservation
project by personal contact or regular mail to all owners
of land adjacent to conservation project lands and any
contiguous lands owned by the applicant. The certification
shall    include   a  list   that  identifies  all   adjacent
landowners that were notified by the applicant. The owners
of valid water rights whose water rights may be injured by
the proposed conservation project, and any person who may
be   aggrieved    or  adversely   affected  in  fact   by   a
conservation project, may provide written comments to the
state engineer not more than thirty (30) days following the
notice required by this subsection.
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
      (d) The state engineer shall review each application
submitted under this section and any written comments that
are received under this section and shall approve only
those    conservation project applications   that are in
compliance with the requirements of this section and the
state engineer's regulations. The refusal or approval of an
application for a conservation project in accordance with
this section shall be endorsed thereon, and a record made
of such endorsement in the state engineer's office. The
application so endorsed shall be returned to the applicant
by regular mail. Approved applications shall also be posted
to the state engineer's website.
     (e) The    state   engineer   shall    not    approve   a
conservation   project    application    if    the    proposed
conservation project will injuriously affect the water
rights of other appropriators and will not:
          (i) Result    in   the     reduction   of   historic
consumptive use; or
          (ii) Help satisfy Wyoming's interstate compact
obligations through interstate agreements or under a valid
court order entered by a court of competent jurisdiction.
     (f) The state engineer may refuse any conservation
project application that appears to be detrimental to the
public interest or that appears to provide for or aid in
the interstate marketing of water. The state engineer may
approve a conservation project subject to any conditions or
limitations   that  the   state  engineer   determines  are
necessary, including any conditions or limitations to
mitigate any local water impacts that a conservation
project may cause.
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
     (g) Approved conservation projects shall not cause
the regulation of any other Wyoming water right by the
state of Wyoming. However, if an approved conservation
project is located on a source of supply that is being
regulated by a water commissioner under W.S. 41-3-606, the
water commissioner may prevent headgates of all downstream
diversions that are subject to the regulation from that
source of supply from diverting and using any water
conserved by the conservation project during the period of
time the source of supply is being regulated.
     (h) The    state   engineer  shall   not   approve   a
conservation project application unless the applicant
demonstrates a recent history of consumptive use made under
the applicant's water right or the conservation project
helps satisfy Wyoming's interstate compact obligations
through interstate agreement or otherwise. A recent history
of consumptive use means consumptive use made under the
applicant's water right in not less than three (3) of the
five (5) years preceding the application. To determine the
historic consumptive use made under a water right, the
state engineer may utilize the methods adopted by the Upper
Colorado River Commission. For any conservation project
where the state engineer determines that alternative
methods may be better suited to determine the historic
consumptive use, including methods to estimate consumptive
use incident to the diversion, impounding and conveyance of
water, the state engineer shall have the discretion to use
those alternative methods. The methods and procedures for
determining historic consumptive use under this subsection
shall not have application to any other statute of the
state of Wyoming.
     (j) The  state    engineer  shall not    approve any
conservation project   application, without   the written
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
consent of the district, that includes water rights that
are appurtenant to lands within:
          (i)     An irrigation district;
          (ii)    A conservancy district; or
          (iii)    A watershed improvement district.
      (k) For any conservation project that proposes to
temporarily forego the diversion and use of the direct
natural flow of water for irrigation purposes, the total
period of the conservation project approved under this
section shall not exceed five (5) consecutive years. After
the expiration of a conservation project approved under
this section that participated in the program for not less
than two (2) and not to exceed five (5) consecutive years,
the water right shall be used for its adjudicated or
permitted purpose for a period of not less than two (2)
years    before   becoming   eligible   for    any   further
participation in the program. This subsection shall not
apply to approved conservation projects that forego the
diversion and use of the direct natural flow of water for
irrigation purposes that also achieve long-term reductions
of consumptive use through irrigation system improvements.
     (m) No loss, abandonment or impairment of any water
rights involved in an approved conservation project shall
occur or attach as a result of the conservation project.
Upon termination of the conservation project, the water
right holder's rights, privileges, uses and purposes held
under the original appropriation shall be automatically
reinvested.
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
     (n) Any appeal of the state engineer's endorsement
upon a conservation project application shall be made in
the following manner:
          (i) Any applicant who is aggrieved by the
endorsement made by the state engineer upon his application
may appeal the action of the state engineer to the board of
control within thirty (30) days after service by regular
mail of the notice of rejection of the application;
          (ii) Any owner of a valid water right whose
water right will be injuriously affected by the state
engineer's approval of a conservation project may appeal
the action of the state engineer to the board of control
not later than thirty (30) days after the notice of
approval of the conservation project is posted on the state
engineer's website pursuant to subsection (d) of this
section;
          (iii) Pursuant to an appeal under paragraph (i)
or (ii) of this subsection, the board of control shall
appoint a hearing officer and conduct a contested case
hearing in accordance with its rules and regulations and
the Wyoming Administrative Procedure Act. The decision of
the board of control shall be subject to judicial review
under W.S. 16-3-114;
          (iv) Any person not entitled to an appeal under
paragraph (i) or (ii) of this subsection and who is
aggrieved or adversely affected in fact by the state
engineer's approval of a conservation project may seek
judicial review of the state engineer's action pursuant to
W.S. 16-3-114. Judicial review shall be sought within
thirty (30) days after the notice of approval of the
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
conservation project is posted on the state engineer's
website pursuant to subsection (d) of this section.
     (o) Conservation project applications or approved
conservation projects under this section shall not be
considered or construed as applications for use of water
outside of the state of Wyoming, or transfers of use of
water outside the state of Wyoming, for purposes of W.S.
41-3-115.
     (p) The state engineer shall assess a fee not to
exceed   fifty   dollars   ($50.00) for   the  review   of
conservation project applications under this section. This
fee shall accompany a conservation project application and
shall be retained and deposited whether the application is
approved, refused or withdrawn.
     (q) Information provided by an applicant or included
as part of a conservation project under this act shall not
be subject to W.S. 16-4-203(d)(xiv).
     (r) No new conservation project shall be authorized
under this section on or after July 1, 2032.
    41-3-119.     Storage of conserved water.
     (a) The    state  engineer   and   the  Wyoming water
development office are hereby authorized to pursue the
ability to store water conserved under the program in
Fontenelle Reservoir. The state engineer and Wyoming water
development office are further authorized, in a manner
consistent with contracts entered into with the United
States Bureau of Reclamation, to store or facilitate the
storage of conserved water in Fontenelle Reservoir.
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
     (b) Conserved water stored in any reservoir under
this section shall only be released for one (1) or more of
the following purposes:
          (i) Beneficial consumptive use within the state
of Wyoming through direct delivery or exchange;
          (ii) Mitigating the impacts of curtailment or
involuntary water use regulation on Wyoming water right
holders;
          (iii) Helping    to   satisfy  any   portion   of
Wyoming's interstate compact obligations through interstate
agreements or otherwise, including participating in an
Upper Colorado River basin program.
     (c) The state engineer is hereby authorized to
investigate other reservoirs located within Wyoming's
portion of the Colorado River basin and assess their
suitability for the storage of water conserved under the
program. For any reservoir found to be suitable for the
storage of water conserved under the program the state
engineer is further authorized, in a manner consistent with
contracts entered into with the reservoir owner, to store
or facilitate the storage of conserved water in such
reservoir.
    Section 2.
     (a) The   state   engineer  is   authorized   two  (2)
additional full-time equivalent positions for the period
beginning with the effective date of this act and ending
June 30, 2028 to implement the requirements of this act. It
is the intent of the legislature that these two (2)
full-time positions be included in the standard budget
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
request for the state engineer for the 2029-2030 fiscal
biennium and thereafter.
     (b) There is appropriated five hundred ten thousand
dollars ($510,000.00) from the general fund to the state
engineer for purposes of funding the positions authorized
in subsection (a) of this section and any other expenses
necessary to implement this act. This appropriation shall
be for the period beginning within the effective date of
this act and ending June 30, 2028. This appropriation shall
not be transferred or expended for any other purpose and
any unexpended, unobligated funds remaining from this
appropriation shall revert as provided by law on June 30,
2028. It is the intent of the legislature that this
appropriation be included in the standard budget request
for the state engineer for the 2029-2030 fiscal biennium
and thereafter.
     Section 3. The legislature finds that, since 2000,
the Colorado River basin has experienced a prolonged period
of unusually low water flow conditions and drought, which
is considered the worst drought in the past one thousand
two hundred (1,200) years. Under federal law and practice,
the secretary of the interior must consult with the
Colorado River basin states and such state representatives
as each governor may designate regarding Colorado River
system operations. In order to help inform that federal law
and practice, and to foster interstate comity, the
voluntary conservation program authorized by section 1 of
this act is intended to help support Wyoming's involvement
in a broader Upper Colorado River basin program should one
be approved by the representative designated by Wyoming's
governor and the Upper Colorado River Commission. This act
is also intended to help Wyoming water users manage severe
and prolonged drought conditions and any associated water
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
use reductions and impacts   in    Wyoming's   portion   of   the
Colorado River basin.
    Section 4.
     (a) For the purpose of providing notice of the
program created in section 1 of this act and of
conservation project applications to water right owners and
other interested persons, the state engineer shall:
          (i) Not later than ninety (90) days after the
effective date of this act, cause to be published in at
least three (3) newspapers published within Wyoming's
portion of the Colorado river basin one (1) time each week
for three (3) consecutive weeks a notice of the Voluntary
Water Conservation Program Act and how water right owners
and   other   interested   persons  may   obtain   program
information;
          (ii) Not later than ninety (90) days after the
effective date of this act, cause to be published in at
least two (2) Wyoming trade publications related to the
irrigated agriculture water use sector a notice of the
Voluntary Water Conservation Program Act and how water
right owners and other interested persons may obtain
program information;
          (iii) Not later than one hundred twenty (120)
days after the effective date of this act, hold at least
three (3) public meetings at different locations within
Wyoming's portion of the Colorado river basin that provide
notice of the Voluntary Water Conservation Program Act and
how water right owners and other interested persons may
obtain program information.
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
     Section 5. The state engineer shall promulgate       all
rules necessary to implement this act.
     Section 6. Nothing in this act shall be interpreted
or construed to impair or otherwise modify existing
agreements or any rights, obligations, claims or defenses
of the state of Wyoming under the Colorado River Compact,
the Upper Colorado River Basin Compact or any other federal
law,   state  law,   administrative  rule,   regulation  or
guideline.
     Section 7. The state engineer shall file a report
with the select water committee and the joint agriculture,
state and public lands and water resources interim
committee on or before October 1, 2026 and on or before
October 1 of each year thereafter until 2031, detailing the
operation of the program implemented under this act. The
report under this section shall include recommendations to
each committee regarding the continuance of the program and
any advantageous or necessary statutory changes.
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ORIGINAL SENATE  ENGROSSED
FILE NO. SF0084
       ENROLLED ACT NO. 62, SENATE
       SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
                    2026 BUDGET SESSION
     Section 8. This act is effective immediately upon
completion of all acts necessary for a bill to become law
as provided in Article 4, Section 8 of the Wyoming
Constitution.
                             (END)
Speaker of the House  President of the Senate
                           Governor
                  TIME APPROVED: _________
                  DATE APPROVED: _________
I hereby certify that this act originated in the Senate.
Chief Clerk
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