Wyoming water commission approves multiple Account 2 projects, tables Tiller Canal application

The Wyoming Water Development Commission’s Select Water Committee on Jan. 20 approved funding recommendations that include construction and preconstruction grants and loans for irrigation districts and municipalities across the state, while tabling one project that lacks matching funds.

Director Jason Mead told commissioners the slate of Account 2 recommendations reflected priorities tied to aging infrastructure and critical structures and warned many awards were contingent on a planned transfer from Account 1 to Account 2. “Some of these projects that we're going to be talking about today are going to be contingent upon the approval of that transfer,” Mead said.

Key approvals included a 50% grant / 50% loan recommendation for the Bighorn Canal Irrigation District to replace a five‑mile pipeline and wasteway (estimated $4,544,600), a grant/loan package for Cody Canal diversion rehabilitation to reduce sediment and install fish screening, and preconstruction grants for several transmission pipeline projects where easements and SRF matching funds are needed. The commission approved materials‑only grants for two Goshen Irrigation District lateral conversions and moved ahead with a substantial rehabilitation for the Upper Sunshine outlet works, which staff rated among the state’s most critical structures.

Sponsors described local consequences of inaction. “It's a major contributor to the economic agricultural engine in the Bighorn Basin,” Richard Russell, president of the Bighorn Canal Irrigation District, said of his district. Freda Hopkin, representing Elk Water Users, said rehabilitation of a spill structure was a top priority after the district’s recent level‑1 study.

Commissioners declined funding for several projects classified as priority 9 for raw water, including the town of Byron’s raw‑water supply upgrade and the City of Cody’s raw water pump station, citing limited program funds and prioritization criteria. Cody’s director, Philip Bowman, said the city would proceed with design and likely reapply when funds were available.

The committee also imposed a municipal policy condition for one award: the commission approved funding for Newcastle’s pipeline relocation but conditioned it on the city adopting an ordinance authorizing water sales outside city limits. Commissioners discussed the long‑term implications for growth and annexation before approving the motion.

The panel tabled the Tiller Canal Rehabilitation and Pump Station request after the sponsor reported it had not secured WaterSMART or NRCS matching funds and could not afford the loan burden. The commission voted to delay action until the January meeting, giving staff and the sponsor time to pursue alternative funding and consider hardship options.

Votes at a glance (selected actions taken) - Bighorn Canal (5‑mile pipeline): Approved — 50% grant / 50% loan; contingent on Account 1→Account 2 transfer. - Byron raw‑water supply (Byron Lateral): Do not fund — director recommendation accepted. - Cody Canal (Lehi diversion rehab): Approved — 50% grant / 47.3% loan; contingent on transfer. - Cody Raw Water Pump Station: Do not fund. - Cali transmission pipeline (Town of Cali): Approved — 50% preconstruction grant; contingent on transfer. - Elk Water Users (Roan Wash spill): Approved — 50% grant / 50% loan; co‑applicant structure agreed. - Goshen ID (3.6 East Springer & 29.4 laterals): Approved — materials‑only grants for both laterals. - Grama tank & Phase 1 pipeline: Approved — preconstruction for pipeline and construction funding for tank (50% grant portion noted); contingent on transfer. - Grama Valley ID Upper Sunshine outlet works: Approved — 50% grant / 50% loan; loan terms discussed (4% for 40 years noted on the record). - Newcastle transmission pipeline: Approved — motion included condition that the city adopt ordinance allowing sales outside city limits. - Owl Creek Relift Pump Station (Elk Creek ID): Approved — preconstruction (50% grant / 50% loan). - Powder River ID 15‑mile siphon: Approved — 50% grant / 50% loan; advanced to priority 1 (not contingent). - Riverton West Main Street transmission main (partial): Approved — grant to fund the portion impacted by YDOT work. - Shoshone Well No. 6 & transmission: Approved — 50% grant (contingent on transfer). - Sidon ID Byron lateral (preconstruction): Approved — grant (contingent on transfer). - Tiller Canal Rehabilitation & Pump Station: TABLED — sponsor to seek matching funds; commission to revisit in January. - Small Water Projects (rehabilitation account): Approved — add $500,000 for next cycle. - Sponsor contingency request (Interstate Irrigation): Approved — use of sponsor contingency ~$98,598.50 to cover unforeseen wet ground and re‑alignment costs.

Why it matters: Commissioners emphasized prioritizing projects that avoid catastrophic failure and protect irrigated acres and public safety. Funding was steered toward high‑criticality rehabilitation, projects with matching federal reimbursements (NRCS/EQIP), and preconstruction investments where easements and SRF matches are needed. The commission also sought to balance statewide need with limited program funds.

What’s next: Several awards remain contingent on the Account 1→Account 2 transfer; staff will incorporate approved planning studies and project language into the draft omnibus water bills for the legislative cycle. Projects that were tabled or contingent will return to the commission once sponsors secure required matches or the legislature approves account transfers.