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Appropriations panel advances omnibus water bill after debate on LISRA transfers and dam funding
Summary
The House Appropriations Committee voted to pass the omnibus water construction and planning bill (House Bill 117) after staff and lawmakers described project lists, account balances and recent amendments that shift LISRA transfers and reallocate $50 million tied to Alkali Creek Reservoir toward the LaPerelle/LaPrelle irrigation project.
The Wyoming House Appropriations Committee voted to pass House Bill 117, the omnibus water bill, after presentations by the Water Development Office and questions about funding sources and account transfers.
The bill packages recommended projects from the Water Development Commission and Select Water Committee and uses severance tax distributions to fund three water development accounts. Jason Mead, director of the Water Development Office, told the committee the bill includes $5,583,343 from Account 1 (new development), about $17,094,331 from Account 2 (rehabilitation) and a set of amendments to existing projects and Title 99 items. Mead also described a recent House Agriculture amendment that added $20,000,000 from LISRA to investigate, design and possibly construct wells for the LaPerelle Irrigation District.
Why it matters: The committee discussion focused on how severance tax revenues and LISRA transfers are being prioritized among new development, rehabilitation and a small dams-and-reservoir account. Lawmakers pressed whether account balances and long-running projects such as Alkali Creek and LaPerelle were being handled in a way that preserves funding for routine projects while addressing large multi-year storage projects.
Most important facts: Mead walked members through a blue summary sheet in the committee packet showing which tab and page each recommended project appears under, the account source, and brief terms. He described 12 sponsored rehabilitation projects, amendments to existing Title 99 projects (four adding funds and time, seven time-only extensions), transfers of wells to sponsors and an amendment to revert $50,000,000 from Alkali Creek Reservoir to the dams-and-reservoir account and then transfer that money into Account 2 to fund LaPerelle work. Mead said the reversion reduces the LISRA appropriation tied to LaPerelle from $60,000,000 to $10,000,000. He also noted a separate $20,000,000 LISRA addition for the Goshen Irrigation District Tunnels project.
Senator Troy Steinmetz, a bill presenter, told the panel the change reflects concern about differing interest rates across accounts: “I believe we get 1.2% interest in the account that's been held in for all of this time…We just felt it was a more appropriate use to utilize that and leave the money in the LISRA where we get a higher interest rate,” he said, describing why the board favored the transfers.
Several committee members sought context on how severance tax distributions flow into the three accounts. Director Beatty explained the severance-tax cap and approximate shares: account 1 receives about 12.5% (about $19.3 million annually on a $155 million cap), account 2 roughly $3.2 million, and account 3 (dams and reservoirs) about 0.5% (roughly $775,000 per year). Mead and others noted account 3 has historically received additional infusions to build a balance because $775,000 per year is not sufficient for major reservoir construction.
Representative Larson and other lawmakers pressed the program to prioritize routine projects and not let Board of Control administrative funding crowd out project money. Larson noted the Board of Control budget (a function of the State Engineer's Office) has been funded from the WaterOne account and urged the committee to consider moving that budget to the general fund in a future session so water-development dollars can stay focused on projects.
Public and group testimony: Holly Kennedy of the Wyoming Association of Conservation Districts told the committee the bill “is a great bill” and highlighted the public benefits of reservoir projects, including flood control, recreation, fisheries and support for small rural businesses.
Action: Representative Smith moved the committee to recommend HB117 do pass; Representative Sherwood seconded. A roll-call vote recorded Ayes from Representatives Aleman, Angelos, Harrelson, Pendergraft, Sherwood, Smith and Chairman Bair; the omnibus bill passed the committee.
What remains unresolved: Committee members and witnesses repeatedly noted the long lead time, permitting requirements and sky-rocketing construction costs for storage projects; restoring and expanding account 3 funding was discussed as a policy priority but no new long-term funding source was adopted in this hearing.
Ending note: Committee staff and sponsors asked members to use the binder and blue summary sheet provided during floor debate; members closed public comment before moving the measure forward to the floor.
