WyomingSF 702026 Budget SessionSenate

AN ACT relating to water development projects; authorizing construction of designated water projects; describing projects; specifying terms and conditions of funding for projects; providing grants; providing loans; providing appropriations; amending amounts and terms of appropriations for specified prior projects; transferring funds from water development account I to water development account II; transferring a project; requiring studies; requiring a report; and providing for an effective date.

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 5 benefits, 1 costs, 7 mixed.

Hoback water project gets larger funding

The law increases the Hoback Junction Public Water System project budget to $2.497 million. Its state grant is capped at $1.2485 million or 50% of actual eligible costs, whichever is less. Funding covers design, permits, land purchases, pre-construction engineering, and construction. The funding clauses list different end dates: July 1, 2028 and July 1, 2030.

Irrigation repairs get longer funding deadlines

Three existing irrigation and reservoir appropriations now remain available until July 1, 2028, instead of July 1, 2026. They include $374,000 for Austin-Wall Reservoir Rehabilitation 2019 and $420,000 for Interstate Diversion Structure Rehabilitation 2019. Interstate Irrigation and Reservoir Irrigation District Improvements 2021 keeps its $2.8274 million available through the same deadline. Unspent funds return to Water Development Account II on July 1, 2028.

Small water projects get capped grants

Eligible public entities can receive grants from $1 million for new small water projects and $500,000 for repairs or replacement. Each grant covers no more than $35,000 or 50% of eligible design, permit, land, engineering, and construction costs. Sponsors must show public benefit and obtain land- or resource-management certification that projects meet expectations and approved engineering standards. Monthly progress payments cannot exceed 50% of eligible monthly expenses. Unspent funds return to their source accounts July 1, 2031.

Alkali Creek funds last longer with safeguards

Alkali Creek Reservoir's $59 million appropriation remains available until July 1, 2027, instead of July 1, 2026. Unspent money then returns to Water Development Account III. Beginning January 1, 2027, the commission and other project entities cannot use this appropriation to take private property through eminent domain. This protection limits only those project funds; it does not ban property-taking with other funds.

Communities get longer water funding deadlines

The law extends deadlines for using five existing water-project appropriations, previously set to return unspent funds July 1, 2026. Arapahoe Pipeline and Tank's $2.42 million and Broken Wheel Ranch Water Supply's $913,050 now remain available until July 1, 2027. Ethete Water Supply's $2 million and Arapahoe Water Supply 2016's $2.24785 million remain available until July 1, 2028. Melody Ranch Water System Improvements 2018's $944,700 also remains available until July 1, 2028. Unspent money returns to Water Development Account I on those dates.

Small water decisions face less review

Covered small water projects are exempt from Wyoming Administrative Procedure Act rules, including the specified court-review provisions. The exemption covers commission criteria, procedures, recommendations, ranking, and disqualification decisions. Sponsors and affected parties have fewer ways to challenge those decisions. The separate public-works procurement rule applies only when the sponsor determines the project meets the legal definition of public work.

Battle Lake aid requires matching money

Battle Lake sponsors get a grant capped at $1.092 million or 50% of actual costs for forest and lake-outlet work. The conservation and water conservancy districts must raise half the $2.184 million budget elsewhere; unspent grant funds return July 1, 2031. The Wyoming Agricultural Experiment Station gets $155,000 to study forest treatments, water loss to the air, and potential water yield. At least $35,000 must support online mapping; study funds cannot be transferred or used for another purpose. Unused study money returns June 30, 2030, and results are due to the Select Water Committee November 1, 2030.

Cloud seeding requires full outside funding

The law authorizes ground-based cloud seeding in the Wind River and Sierra Madre ranges for the 2026–2027 winter. The project budget is $891,429. Before operations start, the Wyoming Water Development Office must secure outside commitments covering at least 100% of actual operating costs. Those commitments must come from other Colorado River basin water users or other interested parties.

Douglas can acquire well with repayment

The water commission can transfer the Sheep Mountain No. 2 test well to Douglas. It must find the transfer serves the public interest and that Douglas can build, operate, and maintain the project. Douglas must agree to reimburse at least $610,838 in earlier development costs and pay for property. The city must also accept commission terms and assure compliance with state and federal laws.

Irrigation districts get grants and repayable loans

Big Horn Canal's Five Mile Pipeline gets a grant and loan, each capped at $2.2723 million or 50% of actual costs. Cody Canal's Lead Diversion gets a grant capped at $2.221 million or 50%, plus a loan capped at $2.102 million or 47.3%; its sponsor must raise 2.7% of the total budget elsewhere. Powder River's Fifteen Mile Siphon gets a grant and loan, each capped at $1.115 million or 50% of actual costs. Loans charge 4% annual interest for 20 years at Big Horn and 40 years at Cody and Powder River, starting when the commission finds project benefits begin. Funding covers design through construction; Big Horn and Cody require an account transfer or another funding source, and unspent funds return July 1, 2031.

Irrigation planning aid includes local costs

Sidon Irrigation District gets a Byron Lateral planning grant capped at $209,000 or 50% of actual costs, whichever is less. Sidon must raise half its total budget elsewhere; funding requires an account transfer or another funding source. Tillard Canal planning gets a grant capped at $54,825 or 75%, plus a loan capped at $18,275 or 25%. Tillard's loan charges 4% annual interest for 10 years, starting when the commission finds project benefits begin. Both projects fund design and pre-construction, and unspent funds return July 1, 2031.

State shifts money between water accounts

The water commission can transfer $16.225 million from Water Development Account I to Account II to support project funding. This increases Account II's resources while reducing Account I's resources. Beginning July 1, 2026, the commission can transfer $225,000 back to Account I. That return transfer is allowed only to the extent the initial transfer occurs.

Water grants require local matching money

The law funds local water projects, with each grant capped at 50% of actual eligible costs. Maximum grants are $210,000 for Alpine, $2.5595 million for Gillette, and $370,000 for LaGrange. Cowley gets up to $182,000 for pipeline design and pre-construction. Riverton gets up to $2.8475 million for its West Main Street pipeline; Shoshoni gets up to $679,000 for Well #6 and its pipeline. Except for Cowley, these provisions expressly require sponsors to get half the total project budget from other sources. Riverton and Shoshoni funding depends on an account transfer or another funding source; all six projects return unspent funds July 1, 2031.

Sponsors & Cosponsors

Sponsor

null Water
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 230 • No: 66

Senate vote • 3/4/2026

S Concur:Passed 21-10-0-0-0

Yes: 21 • No: 10

House vote • 3/3/2026

H 3rd Reading:Passed 59-1-2-0-0

Yes: 59 • No: 1

House vote • 3/3/2026

Amendment adopted 60-0-2-0-0

Yes: 60 • No: 0

House vote • 3/2/2026

Amendment failed 7-51-4-0-0

Yes: 7 • No: 51

House vote • 2/25/2026

H02 - Appropriations:Recommend Do Pass 7-0-0-0-0

Yes: 7 • No: 0

House vote • 2/24/2026

H05 - Agriculture:Recommend Do Pass 9-0-0-0-0

Yes: 9 • No: 0

Senate vote • 2/18/2026

S 3rd Reading:Passed 26-4-1-0-0

Yes: 26 • No: 4

Senate vote • 2/12/2026

S02 - Appropriations:Recommend Do Pass 5-0-0-0-0

Yes: 5 • No: 0

Senate vote • 2/10/2026

S05 - Agriculture:Recommend Do Pass 5-0-0-0-0