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26LSO-0350
ORIGINAL Senate
ENGROSSED
File No
.
SF0070
ENROLLED ACT NO. 42,
SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2026 Budget Session
AN ACT relating to water development projects; authorizing construction of designated water projects; describing projects; specifying terms and conditions of funding for projects; providing grants; providing loans; providing appropriations; amending amounts and terms of appropriations for specified prior projects; transferring funds from water development account I to water development account II; transferring a project; requiring studies; requiring a report; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1.
W.S. 99
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3
‑
3101 through 99
‑
3
‑
3104 are created to read:
ARTICLE 31
2026 CONSTRUCTION PROJECTS
99
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3
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3101.
Definitions.
The definitions in W.S. 99
‑
3
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101 apply to this article.
99
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3
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3102.
General authorization.
The provisions of W.S. 99
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3
‑
102 apply to this article.
99
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3
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3103.
Level III construction projects – new development.
(a)
Authorization is granted for the Level III new development construction projects identified in this section subject to the general conditions specified in W.S. 99
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3
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103, provided that W.S. 99
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3
‑
103(a)(iii) shall not apply to the projects identified in this section unless required by W.S. 41
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2
‑
121.
(b)
Project – Alpine Well #4 Transmission Pipeline 2026:
(i)
Project sponsor: Town of Alpine;
(ii)
Project purpose: Municipal water supply;
(iii)
Project description: Design and construction of water transmission pipeline, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Four hundred twenty thousand dollars ($420,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two hundred ten thousand dollars ($210,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriations: There is appropriated from water development account I to the commission two hundred ten thousand dollars ($210,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 2031;
(vii)
Special conditions: The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources.
(c)
Project – Cloud Seeding: Wind River and Sierra Madre mountain ranges 2027 (ground
‑
based):
(i)
Project sponsor: The state of Wyoming;
(ii)
Project purpose: To enhance the winter snowpack in the Wind River and Sierra Madre mountain ranges;
(iii)
Project description: Conduct a ground
‑
based operational winter snowpack augmentation program during the 2026
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2027 season;
(iv)
Total project budget: Eight hundred ninety
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one thousand four hundred twenty
‑
nine dollars ($891,429.00);
(v)
Special conditions: Prior to commencing project operations, the Wyoming water development office shall acquire funding commitments from other Colorado River basin water users or other interested parties for a minimum of one hundred percent (100%) of actual project operations costs.
(d)
Project – Gillette Red Hills Tank 2026:
(i)
Project sponsor: City of Gillette;
(ii)
Project purpose: Municipal water supply;
(iii)
Project description: Construction engineering and construction of a tank, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Five million one hundred nineteen thousand dollars ($5,119,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the construction engineering and construction of the project an amount not to exceed two million five hundred fifty
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nine thousand five hundred dollars ($2,559,500.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriations: There is appropriated from water development account I to the commission two million five hundred fifty
‑
nine thousand five hundred dollars ($2,559,500.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 2031;
(vii)
Special conditions: The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources.
(e)
Project – LaGrange Well Connection 2026:
(i)
Project sponsor: Town of LaGrange;
(ii)
Project purpose: Municipal water supply;
(iii)
Project description: Design and construction of a well connection, well treatment, pumping facilities, transmission pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Seven hundred forty thousand dollars ($740,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed three hundred seventy thousand dollars ($370,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account I to the commission three hundred seventy thousand dollars ($370,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 2031;
(vii)
Special conditions: The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources.
(f)
Project – Little Snake River Battle Lake Modification and Forest Management Demonstration Project 2026:
(i)
Project sponsor: Little Snake River Conservation District and Savery
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Little Snake River Water Conservancy District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of forest management treatments, lake outlet, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Two million one hundred eighty
‑
four thousand dollars ($2,184,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, land access, permit procurement, construction engineering and construction of the project an amount not to exceed one million ninety
‑
two thousand dollars ($1,092,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account I to the commission one million ninety
‑
two thousand dollars ($1,092,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 2031;
(vii)
Special conditions: The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources.
(g)
Project
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Small Water Development Projects – New Development 2026:
(i)
Project sponsor: Eligible public entities;
(ii)
Project purpose: Multi
‑
purpose
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agriculture, recreation and environmental;
(iii)
Project description: Small dams, windmills, springs, guzzlers and other water collection, storage and drinking systems, pipelines, and similar small projects, to impound, develop and convey water for livestock, wildlife, irrigation, environmental and recreational purposes;
(iv)
Total project budget: Two million dollars ($2,000,000.00);
(v)
Project grant: The state of Wyoming shall grant to sponsors of small water development projects from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project a total amount not to exceed one million dollars ($1,000,000.00) or fifty percent (50%) of the actual development costs of the small water development projects, whichever is less;
(vi)
Appropriation: There is appropriated from water development account I to the commission one million dollars ($1,000,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 2031;
(vii)
Definition: "Small water development project" means a project where the maximum financial contribution from the commission is thirty
‑
five thousand dollars ($35,000.00) or less;
(viii)
Special conditions:
(A)
The commission may grant a sponsor fifty percent (50%) of the design, permit procurement, project land procurement, construction engineering and construction cost of a small water development project. No grant shall be more than thirty
‑
five thousand dollars ($35,000.00);
(B)
The small water development project sponsors shall substantiate the public benefit that will be derived from proposed small water development projects;
(C)
The commission may make monthly progress payments of not more than fifty percent (50%) of eligible monthly project expenses;
(D)
An appropriate land management or resource management entity shall certify that the proposed small water development project will meet expectations and that appropriate engineering standards, as approved by the commission, will be adhered to;
(E)
The establishment of criteria and administrative procedures for the development of small water development projects under this subsection and decisions of the commission relating to the recommendations, prioritization or disqualification of small water development projects are specifically exempt from the provisions of the Wyoming Administrative Procedure Act including judicial review under W.S. 16
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3
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114 and 16
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3
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115;
(F)
W.S. 16
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6
‑
116 shall not apply to a small water development project unless the project sponsor determines the small water development project meets the definition of a "public work" as defined in W.S. 16
‑
6
‑
101(a)(ix).
99
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3
‑
3104.
Level III construction projects – rehabilitation.
(a)
Authorization is granted for the Level III rehabilitation construction projects identified in this section subject to the general conditions specified in W.S. 99
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3
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104, provided that W.S. 99
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3
‑
104(a)(iii) shall not apply to the projects identified in this section unless required by W.S. 41
‑
2
‑
121.
(b)
Project – Big Horn Canal ID Five Mile Pipeline 2026:
(i)
Project sponsor: Big Horn Canal Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of a pipeline, wasteway, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Four million five hundred forty
‑
four thousand six hundred dollars ($4,544,600.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two million two hundred seventy
‑
two thousand three hundred dollars ($2,272,300.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two million two hundred seventy
‑
two thousand three hundred dollars ($2,272,300.00) or fifty percent (50%) of these actual development costs, whichever is less, for a term of twenty (20) years from the date the commission determines that project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);
(vii)
Appropriation: There is appropriated from water development account II to the commission four million five hundred forty
‑
four thousand six hundred dollars ($4,544,600.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(viii)
Special conditions: The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(c)
Project – Cody Canal ID Lead Diversion Rehabilitation 2026:
(i)
Project sponsor: Cody Canal Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of a diversion structure and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Four million four hundred forty
‑
two thousand dollars ($4,442,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two million two hundred twenty
‑
one thousand dollars ($2,221,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two million one hundred two thousand dollars ($2,102,000.00) or forty
‑
seven and three
‑
tenths percent (47.3%) of these actual development costs, whichever is less, for a term of forty (40) years from the date the commission determines that project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);
(vii)
Appropriation: There is appropriated from water development account II to the commission four million three hundred twenty
‑
three thousand dollars ($4,323,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(viii)
Special conditions:
(A)
The sponsor is responsible for acquiring two and seven
‑
tenths percent (2.7%) of the total project budget from other sources;
(B)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(d)
Project – Cowley Transmission Pipeline Replacement 2026:
(i)
Project sponsor: Town of Cowley;
(ii)
Project purpose: Municipal and rural domestic water supply;
(iii)
Project description: Design and pre
‑
construction of water transmission pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Three hundred sixty
‑
four thousand dollars ($364,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design and pre
‑
construction of the project an amount not to exceed one hundred eighty
‑
two thousand dollars ($182,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission one hundred eighty
‑
two thousand dollars ($182,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources;
(B)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(e)
Project – Deaver ID Rehabilitation Phase II 2026:
(i)
Project sponsor: Deaver Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Two hundred seventeen thousand five hundred five dollars ($217,505.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the purchase of project materials as supported by vendor invoices and as approved by the commission an amount not to exceed one hundred thirty
‑
five thousand three hundred twenty
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five dollars ($135,325.00) or one hundred percent (100%) of the approved materials costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission one hundred thirty
‑
five thousand three hundred twenty
‑
five dollars ($135,325.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for all project costs with the exception of the purchase of project materials as supported by vendor invoices and as approved by the commission, up to the amount appropriated in this subsection;
(B)
The sponsor is responsible for retaining professional engineering services to design the project, compile materials and bidding documents and monitor construction activities including the installation of project components and the tracking of project expenditures;
(C)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(f)
Project – Elk Water Users ID Roan Wash Spill Rehabilitation 2026:
(i)
Project sponsor: Elk Water Users Irrigation District and Lovell Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of a canal spill structure and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Six hundred forty
‑
one thousand dollars ($641,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed three hundred twenty thousand five hundred dollars ($320,500.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed three hundred twenty thousand five hundred dollars ($320,500.00) or fifty percent (50%) of these actual development costs, whichever is less, for a term of thirty (30) years from the date the commission determines that project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);
(vii)
Appropriation: There is appropriated from water development account II to the commission six hundred forty
‑
one thousand dollars ($641,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031.
(g)
Project – Glenrock Transmission Pipeline 2026:
(i)
Project sponsor: Town of Glenrock;
(ii)
Project purpose: Municipal water supply;
(iii)
Project description: Design and pre
‑
construction of water transmission pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Nine hundred thirty
‑
four thousand dollars ($934,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design and pre
‑
construction of the project an amount not to exceed four hundred sixty
‑
seven thousand dollars ($467,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission four hundred sixty
‑
seven thousand dollars ($467,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources;
(B)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(h)
Project – GID 3.6 East Springer Pipeline Project 2026:
(i)
Project sponsor: Goshen Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Two hundred twenty thousand eight hundred eighty dollars ($220,880.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the purchase of project materials as supported by vendor invoices and as approved by the commission an amount not to exceed one hundred six thousand one hundred dollars ($106,100.00) or one hundred percent (100%) of the approved materials costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission one hundred six thousand one hundred dollars ($106,100.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for all project costs with the exception of the purchase of project materials as supported by vendor invoices and as approved by the commission, up to the amount appropriated in this subsection;
(B)
The sponsor is responsible for retaining professional engineering services to design the project, compile materials and bidding documents and monitor construction activities including the installation of project components and the tracking of project expenditures;
(C)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(j)
Project – GID 29.4 Pipeline Project Phase III 2026:
(i)
Project sponsor: Goshen Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Three hundred eighty
‑
four thousand eight hundred forty
‑
five dollars ($384,845.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the purchase of project materials as supported by vendor invoices and as approved by the commission an amount not to exceed one hundred seventy
‑
seven thousand five hundred dollars ($177,500.00) or one hundred percent (100%) of the approved materials costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission one hundred seventy
‑
seven thousand five hundred dollars ($177,500.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for all project costs with the exception of the purchase of project materials as supported by vendor invoices and as approved by the commission, up to the amount appropriated in this subsection;
(B)
The sponsor is responsible for retaining professional engineering services to design the project, compile materials and bidding documents and monitor construction activities including the installation of project components and the tracking of project expenditures;
(C)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(k)
Project – Greybull Tank and Phase I Pipeline 2026:
(i)
Project sponsor: Town of Greybull;
(ii)
Project purpose: Municipal and rural domestic water supply;
(iii)
Project description: Design and pre
‑
construction of water transmission pipelines, structures and appurtenances and design and construction of tank, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Three million one hundred sixty
‑
four thousand dollars ($3,164,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million five hundred eighty
‑
two thousand dollars ($1,582,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission one million five hundred eighty
‑
two thousand dollars ($1,582,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources;
(B)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(m)
Project – Greybull Valley ID Upper Sunshine Outlet Works 2026:
(i)
Project sponsor: Greybull Valley Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of reservoir intake, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Two million six hundred twenty
‑
three thousand two hundred dollars ($2,623,200.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million three hundred eleven thousand six hundred dollars ($1,311,600.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million three hundred eleven thousand six hundred dollars ($1,311,600.00) or fifty percent (50%) of these actual development costs, whichever is less, for a term of forty (40) years from the date the commission determines that project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);
(vii)
Appropriation: There is appropriated from water development account II to the commission two million six hundred twenty
‑
three thousand two hundred dollars ($2,623,200.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(viii)
Special conditions: The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(n)
Project – Newcastle Transmission Pipeline 2026:
(i)
Project sponsor: City of Newcastle;
(ii)
Project purpose: Municipal and rural domestic water supply;
(iii)
Project description: Design and construction of transmission pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Two million three hundred two thousand six hundred dollars ($2,302,600.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million one hundred fifty
‑
one thousand three hundred dollars ($1,151,300.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission one million one hundred fifty
‑
one thousand three hundred dollars ($1,151,300.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources;
(B)
No funds granted for this project under paragraph (v) of this subsection shall be expended until the commission determines that the sponsor has allowed water sales outside city limits;
(C)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(o)
Project – Owl Creek Re
‑
Lift Pump Station and Dempsey Diversion 2026:
(i)
Project sponsor: Owl Creek Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and pre
‑
construction of pump station, diversion, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: One hundred eighty
‑
eight thousand dollars ($188,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design and pre
‑
construction of the project an amount not to exceed ninety
‑
four thousand dollars ($94,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design and pre
‑
construction of the project an amount not to exceed ninety
‑
four thousand dollars ($94,000.00) or fifty percent (50%) of these actual development costs, whichever is less, for a term of twenty (20) years from the date the commission determines that project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);
(vii)
Appropriation: There is appropriated from water development account II to the commission one hundred eighty
‑
eight thousand dollars ($188,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031.
(p)
Project – Powder River ID Fifteen Mile Siphon 2026:
(i)
Project sponsor: Powder River Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and construction of siphon, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Two million two hundred thirty thousand dollars ($2,230,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million one hundred fifteen thousand dollars ($1,115,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million one hundred fifteen thousand dollars ($1,115,000.00) or fifty percent (50%) of these actual development costs, whichever is less, for a term of forty (40) years from the date the commission determines that project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);
(vii)
Appropriation: There is appropriated from water development account II to the commission two million two hundred thirty thousand dollars ($2,230,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031.
(q)
Project – Riverton West Main Street Transmission Pipeline 2026:
(i)
Project sponsor: City of Riverton;
(ii)
Project purpose: Municipal water supply;
(iii)
Project description: Design and construction of transmission pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Five million six hundred ninety
‑
five thousand dollars ($5,695,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two million eight hundred forty
‑
seven thousand five hundred dollars ($2,847,500.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission two million eight hundred forty
‑
seven thousand five hundred dollars ($2,847,500.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources;
(B)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(r)
Project – Shoshoni Well #6 and Transmission Pipeline 2026:
(i)
Project sponsor: Town of Shoshoni;
(ii)
Project purpose: Municipal water supply;
(iii)
Project description: Design and construction of well upgrades, transmission pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: One million three hundred fifty
‑
eight thousand dollars ($1,358,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed six hundred seventy
‑
nine thousand dollars ($679,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission six hundred seventy
‑
nine thousand dollars ($679,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources;
(B)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(s)
Project – Sidon ID Byron Lateral 2026:
(i)
Project sponsor: Sidon Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and pre
‑
construction of pipelines, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Four hundred eighteen thousand dollars ($418,000.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design and pre
‑
construction of the project an amount not to exceed two hundred nine thousand dollars ($209,000.00) or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission two hundred nine thousand dollars ($209,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Special conditions:
(A)
The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources;
(B)
The appropriation of funds for this project is contingent upon the transfer of funds to water development account II as described in section 3 of this act or transfer from another funding source.
(t)
Project
‑
Small Water Development Projects – Rehabilitation 2026:
(i)
Project sponsor: Eligible public entities;
(ii)
Project purpose: Multi
‑
purpose
‑
agriculture, recreation and environmental;
(iii)
Project description: Rehabilitation and replacement of small dams, windmills, springs, guzzlers and other water collection, storage and drinking systems, pipelines, and similar small projects, to impound, develop and convey water for livestock, wildlife, irrigation, environmental and recreational purposes;
(iv)
Total project budget: One million dollars ($1,000,000.00);
(v)
Project grant: The state of Wyoming shall grant to sponsors of small water development projects from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of small water development projects a total amount not to exceed five hundred thousand dollars ($500,000.00) or fifty percent (50%) of the actual development costs of the small water development projects, whichever is less;
(vi)
Appropriation: There is appropriated from water development account II to the commission five hundred thousand dollars ($500,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031;
(vii)
Definition: "Small water development project" means a project where the maximum financial contribution from the commission is thirty
‑
five thousand dollars ($35,000.00) or less;
(viii)
Special conditions:
(A)
The commission may grant a sponsor fifty percent (50%) of the design, permit procurement, project land procurement, construction engineering and construction cost of a small water development project. No grant shall be more than thirty
‑
five thousand dollars ($35,000.00);
(B)
The small water development project sponsors shall substantiate the public benefit that will be derived from proposed small water development projects;
(C)
The commission may make monthly progress payments of not more than fifty percent (50%) of eligible monthly project expenses;
(D)
An appropriate land management or resource management entity shall certify that the proposed small water development project will meet expectations and that appropriate engineering standards, as approved by the commission, will be adhered to;
(E)
The establishment of criteria and administrative procedures for the development of small water development projects under this subsection and decisions of the commission relating to the recommendations, prioritization or disqualification of small water development projects are specifically exempt from the provisions of the Wyoming Administrative Procedure Act including judicial review under W.S. 16
‑
3
‑
114 and 16
‑
3
‑
115;
(F)
W.S. 16
‑
6
‑
116 shall not apply to a small water development project unless the project sponsor determines the small water development project meets the definition of a "public work" as defined in W.S. 16
‑
6
‑
101(a)(ix).
(u)
Project – Tillard Canal Rehabilitation and Pump Station 2026:
(i)
Project sponsor: Tillard Canal Irrigation District;
(ii)
Project purpose: Agricultural water supply;
(iii)
Project description: Design and pre
‑
construction of pump station, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget: Seventy
‑
three thousand one hundred dollars ($73,100.00);
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design and pre
‑
construction of the project an amount not to exceed fifty
‑
four thousand eight hundred twenty
‑
five dollars ($54,825.00) or seventy
‑
five percent (75%) of these actual development costs, whichever is less;
(vi)
Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design and pre
‑
construction of the project an amount not to exceed eighteen thousand two hundred seventy
‑
five dollars ($18,275.00) or twenty
‑
five percent (25%) of these actual development costs, whichever is less, for a term of ten (10) years from the date the commission determines that project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);
(vii)
Appropriation: There is appropriated from water development account II to the commission seventy
‑
three thousand one hundred dollars ($73,100.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 2031.
Section 2.
W.S. 99
‑
3
‑
1503(g)(vi), 99
‑
3
‑
2003(b)(vi), 99
‑
3
‑
2103(b)(vi), 99
‑
3
‑
2203(b)(vi), 99
‑
3
‑
2205(d)(vii), 99
‑
3
‑
2303(e)(vi), 99
‑
3
‑
2406(b)(vii) and (j)(vii), 99
‑
3
‑
2604(b)(vi) and 99
‑
3
‑
3003(d)(iii) through (vi) are amended to read:
99
‑
3
‑
1503.
Level III construction projects
‑
new development.
(g)
Project – Ethete Water Supply:
(vi)
Appropriation: There is appropriated from water development account I to the commission two million dollars ($2,000,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1,
2026
2028
;
99
‑
3
‑
2003.
Level III construction projects
‑
new development.
(b)
Project – Arapahoe Pipeline and Tank:
(vi)
Appropriation: There is appropriated from water development account I to the commission two million four hundred twenty thousand dollars ($2,420,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1,
2026
2027
;
99
‑
3
‑
2103.
Level III construction projects – new development.
(b)
Project – Arapahoe Water Supply 2016:
(vi)
Appropriation: There is appropriated from water development account I to the commission two million two hundred forty
‑
seven thousand eight hundred fifty dollars ($2,247,850.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1,
2026
2028;
.
99
‑
3
‑
2203.
Level III construction projects – new development.
(b)
Project – Broken Wheel Ranch Water Supply 2017:
(vi)
Appropriation: There is appropriated from water development account I to the commission nine hundred thirteen thousand fifty dollars ($913,050.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1,
2026
2027
;
99
‑
3
‑
2205.
Level III construction projects – dams and reservoirs.
(d)
Project – Alkali Creek Reservoir:
(vii)
Appropriation: There is appropriated from water development account III to the commission fifty
‑
nine million dollars ($59,000,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account III on July 1,
2026
2027
.
It is the intent of the legislature that no further time extensions shall be authorized for this project. Beginning January 1, 2027, funds from the appropriation made in this paragraph shall not be expended or used to exercise eminent domain for the purposes of this project.
99
‑
3
‑
2303.
Level III construction projects – new development.
(e)
Project – Melody Ranch Water System Improvements 2018:
(vi)
Appropriation: There is appropriated from water development account I to the commission nine hundred forty
‑
four thousand seven hundred dollars ($944,700.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1,
2026
2028
;
99
‑
3
‑
2406.
Level III construction projects – rehabilitation.
(b)
Project – Austin
‑
Wall Reservoir Rehabilitation 2019:
(vii)
Appropriation: There is appropriated from water development account II to the commission three hundred seventy
‑
four thousand dollars ($374,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1,
2026
2028
;
(j)
Project – Interstate Diversion Structure Rehabilitation 2019:
(vii)
Appropriation: There is appropriated from water development account II to the commission four hundred twenty thousand dollars ($420,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1,
2026
2028
.
99
‑
3
‑
2604.
Level III construction projects – rehabilitation.
(b)
Project – Interstate Irrigation and Reservoir Irrigation District Improvements 2021:
(vi)
Appropriation: There is appropriated from water development account II to the commission two million eight hundred twenty
‑
seven thousand four hundred dollars ($2,827,400.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1,
2026
2028
;
99
‑
3
‑
3003.
Level III construction projects – new development.
(d)
Project – Hoback Junction Public Water System 2025:
(iii)
Project description: Design
,
and
pre
‑
construction
and construction
of a diversion structure, pumping facilities, water transmission pipelines, tank, structures and appurtenances necessary to make the project function in the manner intended;
(iv)
Total project budget:
Five hundred forty
‑
eight thousand nine hundred dollars ($548,900.00)
Two million four hundred ninety
‑
seven thousand dollars ($2,497,000.00)
;
(v)
Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement
,
and
pre
‑
construction
, construction
engineering
and construction
of the project an amount not to exceed
two hundred seventy
‑
four thousand four hundred fifty dollars ($274,450.00)
one million two hundred forty
‑
eight thousand five hundred dollars ($1,248,500.00)
or fifty percent (50%) of these actual development costs, whichever is less;
(vi)
Appropriations: There is appropriated from water development account I to the commission
two hundred seventy
‑
four thousand four hundred fifty dollars ($274,450.00)
one million two hundred forty
‑
eight thousand five hundred dollars ($1,248,500.00)
or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 2030;
Section 3
.
(a)
The Wyoming water development commission is hereby authorized to transfer sixteen million two hundred twenty
‑
five thousand dollars ($16,225,000.00) from water development account I created by W.S. 41
‑
2
‑
124(a)(i) to water development account II created by W.S. 41
‑
2
‑
124(a)(ii).
(b)
In accordance with W.S. 41
‑
2
‑
115(c), upon a finding that the transfer of the test well, Sheep Mountain No. 2, developed as part of the level II feasibility study authorized under 2017 Wyoming Session Laws, Chapter 65, Section 2 as amended by 2023 Wyoming Session Laws Chapter 186, Section 6, to the city of Douglas is desirable and in the public interest and that the city is capable of constructing, operating and maintaining the project and accomplishing the public interest, the water development commission shall transfer to the city of Douglas the test well, Sheep Mountain No. 2, developed as part of a level II feasibility study for further development by the city, provided the city of Douglas agrees to terms outlined by the commission for reimbursement of the expense of predevelopment costs, an amount which shall be not less than six hundred ten thousand eight hundred thirty
‑
eight dollars ($610,838.00), payment for property and assurances of construction, operation and maintenance of the test well, Sheep Mountain No. 2, in compliance with all applicable state and federal laws.
(c)
To the extent funds are transferred under subsection (a) of this section, the Wyoming water development commission is hereby authorized to transfer two hundred twenty-five thousand dollars ($225,000.00) from water development account II created by W.S. 41
‑
2
‑
124(a)(ii) to water development account I created by W.S. 41-2-124(a)(i).
This subsection is effective July 1, 2026.
Section 4
.
There is appropriated one hundred fifty
‑
five thousand dollars ($155,000.00) from the general fund to the Wyoming agricultural experiment station (WAES) within the college of agriculture and natural resources to be deposited into a separate account, which account shall be expended to conduct a study to quantify how forest management treatments under the Little Snake River Battle Lake Modification and Forest Management Demonstration Project 2026 authorized under section 1 of this act affect evapotranspiration and potential water yield. Of the appropriation under this section, not less than thirty
‑
five thousand dollars ($35,000.00) shall be used to contract with an online platform for mapping evapotranspiration at the scale necessary to conduct the study under this section. The results of the study under this section shall be reported to the select water committee not later than November 1, 2030. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2030. This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2030.
Section 5
.
(a)
The Wyoming water development office shall conduct a study of the small water project program. The study required under this section shall be in accordance with all of the following:
(i)
The study shall consider the application and funding process for small water projects, including application requirements and studies required for an application to be reviewed under the program;
(ii)
The study shall consider the process for reviewing completed applications for the small water project program, including:
(A)
The extent to which additional evaluations, whether conducted internally or externally, are required;
(B)
Whether reviews include or duplicate reviews already conducted or completed by the applicant before submitting a complete application;
(C)
Whether additional costs are imposed on the applicant, the state or both in reviewing and evaluating project applications.
(iii)
The Wyoming water development office shall review its rules and policies associated with the small water project program and consider whether changes can be made to improve efficiencies and reduce the time and cost associated with submitting and reviewing applications;
(iv)
The study shall consider and develop methods for:
(A)
Streamlining and incorporating efficiencies in the application and review process for small water projects;
(B)
Reducing costs of the application and review process for both the applicant and the state.
(v)
Not later than November 1, 2026, the Wyoming water development office shall report to the select water committee on the results of the study required under this section.
Section 6.
This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
Speaker of the House
President of the Senate
Governor
TIME APPROVED: _________
DATE APPROVED: _________
I hereby certify that this act originated in the Senate.
Chief Clerk
1