The Wyoming Water Development Commission (WDC) told the Joint Appropriations Committee that aging irrigation infrastructure is a growing statewide problem that will require prioritization and federal leveraging to manage.

Director Jason Mead said a late-2024 study examined roughly 10,000 irrigation structures and concluded approximately 20% — more than 2,000 structures — were in poor to failing condition. He said the top 30 most-critical rehabilitation or replacement projects are priced in the $200–300 million range.

Mead said the WDC is relying heavily on the capped severance-tax distribution (the statute sets a baseline distribution of $155 million) and has reduced grant ratios (from 67% grant/33% loan to 50% grant) to stretch funds. He urged pursuing federal grants and loan forgiveness where possible and coordinating asset-management and planning work so communities can prioritize projects that are mission-critical.

The commission provided updates on major projects: construction on LaPrelle Dam is set to begin in March 2026 with partial fill in 2028 and substantial completion by April 2029; the Goshen Irrigation District tunnel work has portal construction under way and a planned boring phase in winter 2026–27, supported by mixed funding from LISRA, Bureau of Reclamation loans/grants and other sources.

Lawmakers asked whether raising severance-tax production would help; staff explained the $155 million statutory distribution determines the first-tier allocations and that over-cap distributions follow a different statutory flow (permanent mineral trust fund, general fund, etc.). Mead said the commission remains well below or at the distribution cap in practical terms and will continue to prioritize projects for funding and federal partnership.