GLENWOOD SPRINGS - On January 17, 2025, Governor Polis celebrated a historic round of grants from the U.S. Bureau of Reclamation for projects in Colorado totaling $176.8M from the Inflation Reduction Act, including up to $40M for the Colorado River Water Conservation District’s acquisition of the water rights associated with the Shoshone power plant. 

“The Colorado River is a lifeline for the Western Slope and the thousands of Coloradans who call it home. This support for the Shoshone water rights is a huge step towards ensuring that the river will continue flowing to western Colorado farmers, ranchers, communities, and businesses,” said Gov. Polis. 

Colorado allocated $20 million of state funding towards the purchase of the water rights from Xcel Energy, contingent upon the purchase and sale agreement between the District and the Public Service Company of Colorado. In August 2024, Gov. Polis wrote a letter to the Bureau of Reclamation urging the agency to provide this funding so that businesses, farms, ranches, and outdoor recreation on the Western Slope can continue to thrive. 

“The Department of Natural Resources is pleased to see such a significant federal investment from the US Bureau of Reclamation for drought resilience and watershed health in Colorado,” said Dan Gibbs, Executive Director, Colorado Department of Natural Resources. “ These funds were established to assist Upper Colorado River and other river basins to fund climate resilient projects as we face impacts to our water supplies and aquatic ecosystems from a hotter, drier future. These funds will provide more water in our rivers and streams, restore our river systems and wetlands and provide needed upgrades to our water infrastructure. DNR and our Divisions were proud to partner with many local entities to help bring these impactful funds for needed projects throughout Colorado. 

“Securing the Shoshone water rights has been a priority of West Slope water entities and local governments for over eighty years,” said Colorado River District Board President, Kathy Chandler-Henry. “This funding award is a huge step forward in what is a continuing effort, and we are thankful for the leadership shown by the Bureau of Reclamation and Commissioner Touton in bringing these critical funds to West Slope communities.” 

“We are beyond grateful for the Bureau's historic investment and their work with us to protect our state's namesake river,” said Andy Mueller, General Manager of the Colorado River District. “To be clear, there is still more work to be done, but today's announcement would not have been possible without the State's partnership and financial support, as well as the leadership of Governor Polis, the Colorado General Assembly and Colorado's Congressional delegation.” 

Xcel Energy and the Colorado River Water Conservation District finalized an agreement in December 2023 to transfer ownership of the Shoshone Water Rights to the district for $99 million. In partnership with the State of Colorado, the district will work to convert the rights to instream-flow purposes by 2027. 

Colorado recreation on the Colorado River contributes $14.6 billion annually to the State’s GDP, with nearly $4 billion coming directly from the Colorado River basin on the Western Slope. Acquiring the Shoshone water rights provides security for this industry as well as protect the recreational fishing and boating that sustain and attract local businesses. 

The Shoshone water rights are among the most senior on the Colorado River, contributing steady flows for more than 250 miles from the Continental Divide to the Utah border. These rights play a critical role in sustaining agriculture, providing reliable water for ranchers and communities, and bolstering the outdoor recreation economy. 

Awarded projects in Colorado can be found on the U.S. Bureau of Reclamation’s website and recent press release.