House Committee of Reference Report
Committee on Agriculture, Water & Natural Resources
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April 23, 2026
After consideration on the merits, the Committee recommends the following:
HB26-1340 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:
Page 1, Line 1Amend printed bill, strike everything below the enacting clause and
Page 1, Line 2substitute:
Page 1, Line 3"SECTION 1. In Colorado Revised Statutes, 37-92-305, add
Page 1, Line 4(4.7) as follows:
Page 1, Line 537-92-305. Standards with respect to rulings of the referee and
Page 1, Line 6decisions of the water judge - definitions.
Page 1, Line 7(4.7) (a) Notwithstanding subsection (4.5) of this section,
Page 1, Line 8the terms and conditions applicable to changes of use of water
Page 1, Line 9rights from agricultural irrigation purposes to other beneficial
Page 1, Line 10uses in water division 2 decreed on or after January 1, 2027, are
Page 1, Line 11designed to accomplish revegetation or conversion to dryland
Page 1, Line 12farming, erosion control, and weed management on land from
Page 1, Line 13which irrigation water is permanently removed for other
Page 1, Line 14beneficial uses. The water court shall apply revegetation or
Page 1, Line 15conversion to dryland farming terms and conditions in a decree
Page 1, Line 16approving a subsequent change of use of a previously changed
Page 1, Line 17agricultural irrigation water right only if the prior decree
Page 1, Line 18changing the same agricultural irrigation water right did not
Page 1, Line 19include revegetation or conversion to dryland farming terms
Page 1, Line 20or conditions. The water right owner shall comply with such
Page 1, Line 21terms and conditions. The terms and conditions applicable to
Page 1, Line 22water division 2 include:
Page 1, Line 23(I) (A) When applying to the water court for a change of
Page 1, Line 24use of a water right pursuant to this subsection (4.7)(a), the
Page 1, Line 25water right owner shall identify for the water court's
Page 1, Line 26consideration site-specific criteria and an associated scientific
Page 1, Line 27and objective evaluation methodology to measure and
Page 2, Line 1determine the extent to which revegetation or conversion to
Page 2, Line 2dryland farming is successfully established on the formerly
Page 2, Line 3irrigated agricultural land. The water court shall include
Page 2, Line 4site-specific criteria and an associated scientific and objective
Page 2, Line 5evaluation methodology in the decree approving the change of
Page 2, Line 6use of the water right.
Page 2, Line 7(B) The site-specific criteria identified pursuant to
Page 2, Line 8subsection (4.7)(a)(I)(A) of this section must include weed
Page 2, Line 9management provisions designed to protect the soil resource,
Page 2, Line 10prevent weed infestations, and protect the available soil
Page 2, Line 11moisture. At a minimum, such provisions must include
Page 2, Line 12requirements that weed infestations be controlled by methods
Page 2, Line 13such as mowing, herbicide application, or biological control or
Page 2, Line 14by a combination of mowing, herbicide application, biological
Page 2, Line 15control, and other appropriate methods. Noxious weeds must be
Page 2, Line 16controlled pursuant to the "Colorado Noxious Weed Act",
Page 2, Line 17article 5.5 of title 35.
Page 2, Line 18(II) (A) If, prior to applying to the water court for the
Page 2, Line 19change of use of the water right, the water right owner has,
Page 2, Line 20pursuant to section 24-65.1-501, obtained a permit from or
Page 2, Line 21entered into an intergovernmental agreement with the local
Page 2, Line 22land use authority where the formerly irrigated agricultural
Page 2, Line 23land is located, which permit or agreement requires
Page 2, Line 24revegetation or conversion to dryland farming and includes
Page 2, Line 25site-specific criteria and an associated scientific and objective
Page 2, Line 26evaluation methodology, the court shall use the site-specific
Page 2, Line 27criteria and associated scientific and objective evaluation
Page 2, Line 28methodology set forth in the permit or intergovernmental
Page 2, Line 29agreement.
Page 2, Line 30(B) If the water right owner has not obtained a permit or
Page 2, Line 31entered into an intergovernmental agreement pursuant to
Page 2, Line 32section 24-65.1-501 and the local land use authority where the
Page 2, Line 33formerly irrigated agricultural land is located has adopted
Page 2, Line 34site-specific criteria and a scientific and objective evaluation
Page 2, Line 35methodology for revegetation or conversion to dryland
Page 2, Line 36farming, the water court shall use that criteria and evaluation
Page 2, Line 37methodology.
Page 2, Line 38(III) (A) Upon issuing a change-of-use decree pursuant to
Page 2, Line 39this subsection (4.7)(a), the water court shall appoint, and the
Page 2, Line 40water right owner shall pay for the services of, a neutral
Page 2, Line 41third-party revegetation or dryland farming expert who shall
Page 2, Line 42evaluate the progress of the revegetation or conversion to
Page 2, Line 43dryland farming on the formerly irrigated agricultural land,
Page 3, Line 1on a field-by-field basis, and determine when and to what extent
Page 3, Line 2the revegetation or conversion to dryland farming is
Page 3, Line 3successfully established.
Page 3, Line 4(B) The third-party expert shall conduct an annual field
Page 3, Line 5review of the formerly irrigated agricultural land and produce
Page 3, Line 6field-by-field status reports annually until revegetation or
Page 3, Line 7conversion to dryland farming is successfully established, as
Page 3, Line 8approved by the water court.
Page 3, Line 9(C) At least twenty days prior to the field review, the
Page 3, Line 10water right owner shall give notice of the occurrence of the
Page 3, Line 11third-party expert's field review to the owner of the field within
Page 3, Line 12the formerly irrigated agricultural land and the parties to the
Page 3, Line 13change of use of the water right proceeding, and the parties
Page 3, Line 14shall have an opportunity to participate in the field review.
Page 3, Line 15(D) The third-party expert shall state in each status
Page 3, Line 16report the percentage of the formerly irrigated field on which
Page 3, Line 17revegetation or conversion to dryland farming is successfully
Page 3, Line 18established.
Page 3, Line 19(E) The third-party expert shall provide the status report
Page 3, Line 20to the water right owner, and the water right owner shall
Page 3, Line 21submit the status report to the owner of the formerly irrigated
Page 3, Line 22field, the water court, the division of water resources, as
Page 3, Line 23described in section 24-33-104 (1)(e), and the parties to the
Page 3, Line 24change of use of the water right proceeding within twenty days
Page 3, Line 25after receiving the status report from the third-party expert.
Page 3, Line 26The water court shall give the parties sixty days to comment on
Page 3, Line 27or rebut the status report or the status of the formerly
Page 3, Line 28irrigated field.
Page 3, Line 29(IV) (A) Once the water court receives the third-party
Page 3, Line 30expert's status report indicating that revegetation or
Page 3, Line 31conversion to dryland farming is successfully established on a
Page 3, Line 32field, and if the water court agrees, then a five-year
Page 3, Line 33maintenance period begins, during which the water right owner
Page 3, Line 34shall maintain the successful revegetation or conversion to
Page 3, Line 35dryland farming achieved on the formerly irrigated field.
Page 3, Line 36(B) Within ninety days before November 1 of the final
Page 3, Line 37year of the maintenance period for a field, the third-party
Page 3, Line 38expert or, if that person is no longer available, a different
Page 3, Line 39third-party expert appointed by the water court shall conduct
Page 3, Line 40a field review of the formerly irrigated field. The third-party
Page 3, Line 41expert shall produce a maintenance report. The maintenance
Page 3, Line 42report must indicate the extent to which revegetation or
Page 3, Line 43conversion to dryland farming continues to be successfully
Page 4, Line 1established on the field and identify any portions of the field on
Page 4, Line 2which revegetation or conversion to dryland farming is no
Page 4, Line 3longer successfully established.
Page 4, Line 4(C) The third-party expert shall provide the maintenance
Page 4, Line 5report to the water right owner on or before December 1 of the
Page 4, Line 6final year of the maintenance period, and the water right owner
Page 4, Line 7shall submit the maintenance report to the owner of the
Page 4, Line 8formerly irrigated field, the water court, the division of water
Page 4, Line 9resources, as described in section 24-33-104 (1)(e), and the parties
Page 4, Line 10to the change of use of the water right proceeding within
Page 4, Line 11twenty days after receiving the maintenance report from the
Page 4, Line 12third-party expert. The water court shall give the parties sixty
Page 4, Line 13days to comment on or rebut the maintenance report or the
Page 4, Line 14status of the formerly irrigated field.
Page 4, Line 15(D) If, at the conclusion of the maintenance period and
Page 4, Line 16after the water court's review of the third-party expert's
Page 4, Line 17maintenance report, the water court determines that
Page 4, Line 18revegetation or conversion to dryland farming has been
Page 4, Line 19successfully established on a field, the water court shall deem
Page 4, Line 20the terms and conditions set forth in this subsection (4.7)(a)
Page 4, Line 21satisfied as to that field.
Page 4, Line 22(E) If, at the conclusion of the maintenance period and
Page 4, Line 23after the water court's review of the third-party expert's
Page 4, Line 24maintenance report, the water court determines that
Page 4, Line 25revegetation or conversion to dryland farming is no longer
Page 4, Line 26successfully established on a field, the water court may order
Page 4, Line 27additional subsequent maintenance periods or may limit the
Page 4, Line 28percentage of the water subject to the changed water right
Page 4, Line 29available for the new beneficial use to the percentage of the
Page 4, Line 30formerly irrigated field on which the water court determines
Page 4, Line 31that revegetation or conversion to dryland farming is
Page 4, Line 32successfully established.
Page 4, Line 33(V) A water right owner implementing a decreed change
Page 4, Line 34of use of a water right pursuant to this subsection (4.7)(a) shall
Page 4, Line 35comply with the terms and conditions decreed by the water
Page 4, Line 36court to ensure revegetation or conversion to dryland farming
Page 4, Line 37is successfully established. The water court shall impose terms
Page 4, Line 38and conditions sufficient to ensure revegetation or conversion
Page 4, Line 39to dryland farming is successfully established and order that
Page 4, Line 40such terms and conditions remain in effect until the applicable
Page 4, Line 41requirements of this subsection (4.7)(a) are fully satisfied. The
Page 4, Line 42court shall also do one of the following:
Page 4, Line 43(A) Order the water right owner to provide financial
Page 5, Line 1assurance, such as a performance bond or other financial
Page 5, Line 2security, to the local land use authority where the formerly
Page 5, Line 3irrigated agricultural land is located in an amount sufficient
Page 5, Line 4to cover the reasonably anticipated total cost to achieve
Page 5, Line 5successfully established revegetation or conversion to
Page 5, Line 6dryland farming on the formerly irrigated agricultural land;
Page 5, Line 7(B) Place limitations on the timing or percentage of water
Page 5, Line 8subject to the water right that may be used for the new
Page 5, Line 9beneficial use while allowing the continued exercise of existing
Page 5, Line 10decreed uses of the water and, in establishing such limitations,
Page 5, Line 11consider the site-specific criteria and other factors relevant to
Page 5, Line 12the successful establishment of revegetation or conversion to
Page 5, Line 13dryland farming; or
Page 5, Line 14(C) If the water right owner has obtained a permit or
Page 5, Line 15entered into an intergovernmental agreement pursuant to
Page 5, Line 16section 24-65.1-501 that establishes requirements that govern
Page 5, Line 17the timing of use or percentage of water subject to the water
Page 5, Line 18right that may be used for the new beneficial use while
Page 5, Line 19simultaneously achieving successfully established
Page 5, Line 20revegetation or conversion to dryland farming, adopt and
Page 5, Line 21incorporate those requirements into the change-of-use decree
Page 5, Line 22and not impose either of the requirements set forth in
Page 5, Line 23subsections (4.7)(a)(V)(A) and (4.7)(a)(V)(B) of this section.
Page 5, Line 24(VI) If, following a change of use of a water right
Page 5, Line 25pursuant to this subsection (4.7)(a), the water court finds that
Page 5, Line 26a water right owner or a landowner, within a reasonable
Page 5, Line 27amount of time, is irrigating the formerly irrigated
Page 5, Line 28agricultural land with another source of water; is
Page 5, Line 29re-irrigating the land with the water from the same water right,
Page 5, Line 30as authorized by the water court; or is converting the land
Page 5, Line 31from irrigated agricultural land to another use in which weeds
Page 5, Line 32and soil erosion are adequately controlled, the water court
Page 5, Line 33shall deem the terms and conditions set forth in this subsection
Page 5, Line 34(4.7)(a) satisfied.
Page 5, Line 35(b) As used in subsection (4.7)(a) of this section,
Page 5, Line 36"successfully established" or "successful establishment" means
Page 5, Line 37that revegetation or conversion to dryland farming is
Page 5, Line 38accomplished and weeds and soil erosion are adequately
Page 5, Line 39controlled on the formerly irrigated agricultural land in
Page 5, Line 40accordance with the site-specific criteria and associated
Page 5, Line 41scientific and objective evaluation methodology included in the
Page 5, Line 42water court's decree pursuant to subsection (4.7)(a)(I)(A) of this
Page 5, Line 43section.
Page 6, Line 1SECTION 2. Act subject to petition - effective date. This act
Page 6, Line 2takes effect at 12:01 a.m. on the day following the expiration of the
Page 6, Line 3ninety-day period after final adjournment of the general assembly (August
Page 6, Line 412, 2026, if adjournment sine die is on May 13, 2026); except that, if a
Page 6, Line 5referendum petition is filed pursuant to section 1 (3) of article V of the
Page 6, Line 6state constitution against this act or an item, section, or part of this act
Page 6, Line 7within such period, then the act, item, section, or part will not take effect
Page 6, Line 8unless approved by the people at the general election to be held in
Page 6, Line 9November 2026 and, in such case, will take effect on the date of the
Page 6, Line 10official declaration of the vote thereon by the governor.".