2016 #COleg: Are flexible water markets back on the agenda?

Colorado Capitol building
Colorado Capitol building

From the Fort Collins Coloradan (Nick Coltrain):

State Rep. Jeni Arndt, D-Fort Collins, may propose a water bill ambitious enough that she may need to win a second term to see to fruition.

The proposal is an offshoot of her bill introduced last year to create a flexible use market for water rights, which essentially aimed to let water rights holders sell some of their water instead of feeling forced to use it all due to use-it-or-lose-it rules.

Arndt’s new proposal, which hasn’t been formally introduced but was discussed with the Coloradoan’s editorial board Monday morning, likewise aims at “taking away the disincentive” for a water rights holder to conserve water they don’t need. In essence, her proposal would create a virtual water market where water rights holders could take water they won’t use and put it up for bid by other water users in the basin. As long as it’s not more than 30 percent of the rights holder’s allocation over a 10-year period, it won’t affect their historic use patters, which can jeopardize how much they are allocated each year.

She used the example of an alfalfa farmer wanting to try his hand at growing hemp, a low-water crop, but facing the concern of losing water rights moving forward — and with it, the ability to grow enough alfalfa if he wants to return to his roots.

“There’s some flexibility in the system, but nothing like this,” Arndt said.

She acknowledged that this bill could be a big push, and that it could take a multi-year effort to reach a vote.

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