From Aspen Journalism (Heather Sackett):
Colorado lawmakers are advancing a bill aimed at outlawing water investment speculation, even as they acknowledged their attempt to address the complex problem is an imperfect one.
On Wednesday, members of Colorado’s Water Resources Review Committee voted to put forth a bill in the 2022 legislative session that aims to prohibit a buyer of agricultural water rights from profiting on the increased value of the water in a future sale. The measure is an attempt to prevent out-of-state investors from making a profit off a public resource that grows scarcer in a water-short future driven by climate change.
The draft bill gives the state engineer at the Department of Water Resources the ability to investigate complaints of investment water speculation and fine a purchaser up to $10,000 if they determine speculation is occurring. Those making a complaint could also be fined up to $1,000 if state officials deem a complaint frivolous. A second section of the bill also directs the board of directors of mutual ditch companies to set a minimum percent of agricultural water rights for one purchaser to hold that would trigger the presumption that they are engaging in investment water speculation.
Western Slope state Sens. Kerry Donovan, D-Eagle County, and Don Coram, R-Montrose County, and Rep. Karen McCormick, D-Boulder County, are sponsoring the bill.
At the beginning of Wednesday’s discussion, Donovan vented her frustration with what she called mixed messages from water managers. Most seem to agree that stopping investment water speculation is important, but no one can agree on the best way to do that.
“There was a general agreement that investment water speculation was an important issue to work on, so much so… that we invested taxpayer dollars in order to turn out a report,” she said. “We have put resources into addressing this issue and now the feedback is ‘don’t do anything, slow down.’”
Donovan was referring to a report released in August by a work group, which was tasked with exploring ways to strengthen the state’s current anti-speculation laws. The group, made up of water managers and policy experts from across water sectors, came up with a list of concepts on how to prevent water investment speculation. But they did not give clear recommendations to legislators because they could not come to a consensus on which concepts to implement.