Finance

Federal funding targets Colorado River drought impacts

Federal funding targets Colorado River drought impacts

The U.S. Department of the Interior announced new drought mitigation funding opportunities to improve and protect the long-term sustainability of the Colorado River System.

A new Lower Colorado River Basin System Conservation and Efficiency Program, funded with an allocation through the Inflation Reduction Act and managed through the Bureau of Reclamation, will help increase water conservation, improve water efficiency and prevent reservoirs from falling to critically low elevations that would threaten water deliveries and power production, according to a release.

“The prolonged drought afflicting the West is one of the most significant challenges facing our country,” said Interior Secretary Deb Haaland. “Thanks to historic funding from the Inflation Reduction Act, the Interior Department is committed to using every resource available to conserve water and ensure that irrigators, Tribes and adjoining communities receive adequate assistance and support to build resilient communities and protect our water supplies.”

This new funding supplements actions announced in August 2022 as part of Reclamation’s release of the Colorado River Basin August 2022 24-Month Study. It also builds on new and urgent actions recently announced by department leaders to improve and protect the long-term sustainability of the Colorado River System.

The Inflation Reduction Act includes $4 billion for water management and conservation efforts in the Colorado River Basin and other areas experiencing similar levels of drought. This newest announcement focuses on near-term actions to protect the Colorado River in the Lower Basin.

The department is also working to invest in long-term system efficiency improvements across the basin — including at least $500 million in the Upper Basin states of Colorado, Utah, Wyoming and New Mexico — that will result in additional water conservation for the system.

“This significant investment from the Inflation Reduction Act enables the Bureau of Reclamation to improve water management and conservation efforts in the Colorado River Basin today – and for the future,” said Reclamation Commissioner Camille Calimlim Touton. “The Lower Colorado River Basin System Conservation and Efficiency Program provides both new opportunities for system conservation and more durable long-term solutions for areas experiencing drought.” 

The Lower Colorado River Basin System Conservation and Efficiency Program will select projects for funding by Colorado River water delivery contract or entitlement holders that mitigate drought, protect important natural resources and ensure a reliable source of water and power for communities across the West.  

The program funding opportunity has three components. Two are open for proposal submissions from Oct. 12 to Nov. 21, 2022, and require confirmation of water conservation and system benefits.

For the first component, applicants may submit proposals for system conservation resulting in water remaining in Lake Mead at a set price of:

One-year agreement: $330 per acre-foot

Two-year agreement: $365 per acre-foot

Three-year agreement: $400 per acre-foot

The second component will accept proposals for additional water conservation and efficiency projects that could involve a variety of pricing options.

The third component allows for proposals to be submitted in early 2023 for long-term system efficiency improvements that will result in multi-year system conservation.