Diversion Authority to assume Cheyenne River mitigation, adds $53 million to program budget

On Sept. 24, 2025, the Diversion Authority Finance Committee voted to assume planning, design and construction responsibility for the Cheyenne River Mitigation Project and to increase the diversion program budget by $53 million. The committee approved the resolution and will seek an amendment to the Project Partnership Agreement with the U.S. Army Corps of Engineers to transfer funds and formalize construction responsibilities. John Shockley, staff member, presented the resolution and described the mitigation project as the final mitigation element associated with the diversion project, intended to address habitat and fish-passage issues on the Cheyenne River. Shockley said taking responsibility could reduce costs and accelerate the schedule compared with Corps-led delivery. The committee’s leadership said assuming the work would also allow the authority to recover federal share amounts more quickly once the project is completed. Paul Barthol, staff member, told the committee the authority is seeking a memo to the record to start design work and that a formal PPA amendment would follow; he also said the Corps’s estimate for construction informed the requested $53 million increase. The committee approved a related task order increase to engage Houston-Moore Group for preliminary design and permitting work; staff said that scope and fee increase is intended to be incorporated into the $53 million program adjustment and would be tracked once PPA amendments are executed. The motion to adopt the resolution passed on a roll call vote with all members present voting yes. The resolution and budget amendment do not themselves authorize construction spending; they authorize the authority to assume project delivery, start design activities, and seek the PPA amendment and federal fund transfer. The authority indicated completion of the Cheyenne River mitigation is not expected until well after other diversion elements and therefore the Corps must finalize its federal share through the PPA amendment before any unused federal amounts will be returned to the authority. The committee said additional related budget and contracting items will be addressed as the PPA amendment and preliminary design work proceed.