Colorado River officials in four states, including Colorado, are negotiating a new agreement with the federal government to conserve water and get credit to protect against possible cutbacks in the future.
Water conservation is a big issue in the Colorado River Basin, where prolonged drought, a changing climate, and overuse have strained the water supply for 40 million people. Currently, water conserved on a farm simply reenters streams and can be used by anyone downstream. The negotiations aim to set up a program to track, count and store that water so it can benefit the four Upper Basin states — Colorado, New Mexico, Utah and Wyoming.
Coloradans have asked for a conservation credit program, and this is a way of addressing that feedback, said Commissioner Becky Mitchell, Colorado’s representative on the Upper Colorado River Commission.
“One of the things that I heard primarily was that we need to be getting credit for the work that we are doing, and we need to be getting credit for it now,” Mitchell said Monday during the commission’s meeting.
Farmers, ranchers and other water users are already being paid to cut back their use of Colorado River water. Last year, taxpayers paid farmers and ranchers $16 million to cut their water use through the System Conservation Pilot Program.
The program led to water savings, but it did not require tracking and storing the water. Theoretically, water conserved in the Upper Basin could simply flow downstream to be used on farms, ranches and cities in the Lower Basin, according to critics of the program.
After years of debating and studying possible water credit programs, the commission ramped up its efforts to set up a program in July.
The commission hasn’t explicitly defined how credits will be used yet beyond saying they will benefit Upper Basin states. One possible use is to save up the credits and use them to fulfill the Upper Basin’s interstate water sharing obligations if river conditions worsen drastically and trigger mandatory cuts in the Upper Basin.
Commissioners and officials from the U.S. Bureau of Reclamation, which manages the basin’s vital storage reservoirs, aim to draft a conservation-for-credit agreement by the end of September.
It will identify general criteria for projects that could potentially conserve water for credit, like where conservation is taking place, who can participate, how the program would be regulated and how they plan to calculate conserved water.
If the commissioners approve the draft agreement, they will also have the option to move forward with accepting project proposals. The goal is to have applications in by October and to launch conservation projects in 2025, said Chuck Cullom, the commission’s executive director.
The process aligns with a highly anticipated funding announcement from the federal government in October, which follows a flood of $450 million in federal funds for environmental projects announced in July.
Establishing a conservation-for-credit program won’t be simple.
Building a long-term program to track and store conserved water raises questions about equity, funding, economic impacts and whether the idea is feasible at all.
The devil is in the details, said Andy Mueller, general manager of the Colorado River Water Conservation District, a public water planning and policy agency that spans over half the Western Slope (which is part of the Colorado River Basin).
He wants to make sure a future program will not disproportionately impact one region, like the Western Slope. Farmers and ranchers in western Colorado have made nearly all of the water cuts through the conservation pilot program, even though communities across the state use Colorado River water.
“It’s a complex accounting world, and it takes time,” he said Monday after tuning into the virtual commission meeting along with about 100 other participants. “We do think they’re moving in the right direction.”
The potential program also has to coordinate with a set of high-stakes negotiations among all seven Colorado River states to decide the rules for storing, releasing and cutting back on water in the river’s main reservoirs, like Lake Powell and Lake Mead. These new rules won’t go into effect until after 2026.
Any credits gained before the end of 2026 will be counted but won’t be able to be used by the Upper Basin until after that process is complete, Cullom said.
The Upper Basin promised to conserve water in a proposal outlining how the four states envision future Colorado River management. Setting up a new conservation program shows the entire basin that the Upper Basin is taking action to cut back on water use, the state commissioners said.
“We all know that we have a supply and demand imbalance in the Colorado River system. We can’t control supply, so the only lever that we have to work with is demand,” said Anne Castle, the federal representative on the commission. “But if we’re reducing demand — and using taxpayer money to do it — then we have to make sure that it’s meaningful.”
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