Biden-Harris Administration announces new Colorado River Environmental Funding Totaling over $388.3 Million

Ducks taking flight from the Colorado River downstream of Glen Canyon Dam. Reclamation photo by Pablo Mena.

Click the link to read the release on the Reclamation website:

January 17, 2025

WASHINGTON — The Bureau of Reclamation today announced initial selections under the Upper Colorado River Basin Environmental Program for a $388.3 million investment from President Biden’s Investing in America agenda to improve wildlife and aquatic habitats, ecological stability and resilience against drought. The funding supports 42 projects in Colorado, New Mexico, Utah, Wyoming, as well as Tribal initiatives that will provide environmental benefits or the restoration of ecosystem and natural habitats. To view a full list of projects, visit Reclamation’s website. Individualized criteria for some projects are included in the descriptions at the link. 

Additionally, Reclamation announced approximately $100 Million funding opportunity for the companion program in the Lower Basin, which seeks to fund projects that provide environmental benefits in Arizona, Nevada, and California. 

“These historic environmental investments will restore and improve natural resources supporting the long-term sustainability of the Colorado River Basin, which includes nine National Parks across the seven states and is an essential habitat for more than a dozen endangered species,” Commissioner Camille Calimlim Touton said.  “As we continue to develop the drought resiliency of the basin through investments in water conservation and efficiency projects, we can’t forget that a sustainable basin can only exist if there is a healthy environment.”

 This is the first round of projects funded from the Upper Basin Environmental Drought Mitigation Program through the Inflation Reduction Act. More announcements are expected in the coming months, including projects from the most recent Upper Basin environmental announcement, which closed Jan. 10, 2025. Reclamation will begin negotiations with successful applicants to ensure funding conditions are met before funding is obligated. Funding for the Shoshone Water Rights Preservation Project will not be obligated until the Colorado water court enters a final decree; in addition, the agreement will contain provisions requiring Reclamation’s written consent for any water right changes. The conditions precedent set by the State of Colorado for their funding of the Shoshone Water Rights Preservation Project must also be met prior to the obligation of federal funds. Funding for the Pine River Environment Drought Mitigation Project is subject to negotiation concerning operation, maintenance and replacement costs and other appropriate considerations. 

Reclamation’s new funding opportunity for proposed ecosystem restoration or improvements projects in the Lower Colorado River Basin is also funded by the Inflation Reduction Act, and will consider projects that provide environmental benefits, or ecosystem and habitat restoration projects that address issues directly caused by drought in the Lower Colorado Basin Region under Phase 3 of the Lower Colorado River Basin System Conservation and Efficiency Program. Reclamation expects to announce projects by spring 2025 and award approximately $100 million for planning, design, construction, and/or implementation of projects. Project and applicant eligibility information is available on the Bureau of Reclamation website

The Biden-Harris administration has led a comprehensive effort to make Western communities more resilient to climate change and address the ongoing megadrought across the region by harnessing the full resources of President Biden’s historic Investing in America agenda. As climate change has accelerated over the past two decades, the Colorado River Basin experienced the driest period in over one thousand years. Together, the Inflation Reduction Act and Bipartisan Infrastructure Law provide the largest investment in climate resilience in our nation’s history, including $15.4 billion for Western water across federal agencies to enhance the West’s resilience to drought and deliver unprecedented resources to protect the Colorado River System for all whose lives and livelihoods depend on it. This includes $5.35 billion for over 577 projects in the Colorado River Basin states. 


Projects in Colorado

Shoshone Water Rights Preservation Project: Up to approximately $40m

Funding is provided to permanently protect the Shoshone Water Rights in the Upper Colorado River Basin to ensure a reliable water supply for ecosystem, agricultural, municipal, and recreational uses. Key components include maintaining the historical flow regime, eliminating risks of abandonment due to plant decommissioning, and facilitating instream flow use by the Colorado Water Conservation Board. Funds will not be obligated or expended until a final Colorado water court decree is entered confirming water rights and the agreement will contain provisions requiring written consent of Reclamation on any water right changes. The conditions precedent set by the State of Colorado for their funding of the Shoshone Water Rights Preservation Project must also be met prior to the obligation of federal funds.

Addressing Drought Mitigation in Southwest Colorado: Up to approximately $25.6m

Funding is provided for restoring ecosystems and improving river and connection of waterways in southwestern Colorado. It involves a collaborative effort to enhance biodiversity and water resources while supporting local communities and endangered species.

Grand Mesa and Upper Gunnison Watershed Resiliency and Aquatic Connectivity Project: Up to approximately $24.3m

Funding is provided to implement watershed restoration actions to combat drought effects in western Colorado. Through a variety of strategies, it enhances water quality, habitat resilience, and connectivity for aquatic species.

Orchard Mesa Irrigation District Conveyance Upgrades for 15-Mile Reach Flow Enhancement: Up to approximately $10.5m

Funding is provided to convert open canals into pressurized pipelines, improving water delivery efficiency and reducing environmental stressors. This upgrade supports the recovery of endangered fish species by enhancing streamflow in the critical 15-mile reach of the Colorado River.

Enhancing Aquatic Habitat in Colorado River Headwaters: Up to approximately $7m

Funding is provided to restore stream habitats along the Fraser, Blue and Colorado rivers in Grand County, enhancing aquatic ecosystems through channel shaping and bank stabilization through collaboration with key conservation partners.

Yampa River/Walton Creek Confluence Restoration Project: Up to approximately $5m

Funding is provided to restore river and wetland ecosystems in Steamboat Springs through restoration of river and floodplain habitat and the rehabilitation of riparian and wetland area thereby enhancing ecological health and promoting biodiversity. It addresses drought impacts by improving water quality, habitat complexity, and community resilience.

Drought Resiliency on Western Colorado Conserved Lands: Up to approximately $4.6m

Funding is provided to implement various ecological restoration strategies, including the restoration of wetlands, reconnection of floodplains, the installation of erosion control structures to reduce sediment transport and enhance water quality, while promoting habitat restoration for at-risk species like the yellow-billed cuckoo and Gunnison sage-grouse.

Upper Colorado Basin Aquatic Organism Passage Program: Up to approximately $4.2m

Funding is provided to restore stream habitat in Grand County, promoting biodiversity and resilience against drought conditions while enhancing habitat connectivity and improving fish passage for native species, particularly Colorado River cutthroat trout.

Conversion of Wastewater Lagoons into Wetlands: Up to approximately $3m

Funding is provided to transform outdated sewer lagoons into wetlands, enhancing biodiversity and providing habitat for migratory waterfowl and endangered fish species in the town of [Palisade]. Once completed, the wetlands will improve water quality and increase native plant diversity, recharging groundwater and supporting up to 75% of commercially harvested fish.

Fruita Reservoir Dam Removal: Up to approximately $2.8m

Funding is provided to remove a dam on Pinon Mesa, restoring wetlands and enhancing biodiversity and wildlife habitat while ensuring ecological resilience through water pooling, pipeline removal and comprehensive habitat restoration efforts.

Monitoring and Quantifying the Effectiveness of Beaver Dam Analogs on Drought Influenced Streams in the Upper Colorado River Basin: Up to approximately $1.9m

Funding is provided to restore degraded headwater meadows by implementing structures that mimic the natural functions of beaver dams. These interventions enhance ecosystem resilience, improve water retention, and support native species.

Uncompahgre Tailwater Rehabilitation Project: Up to $1.8m

Funding is provided to address habitat degradation, enhancing ecological health and recreational opportunities through rehabilitation of river habitat, restoration aging structures, and implementation of bank stabilization techniques.

Eagle River Habitat Improvement, Gypsum Ponds State Wildlife Area: Up to approximately $1.5m

Funding is provided to enhance Eagle River in Eagle County, improving fish habitat and increasing resilience to low flows and drought while supporting local ecosystems and enhancing water quality.

Orchard Mesa and Grand Valley Metering Efficiency Project: Up to approximately $1.5m

Funding is provided to enhance water management in the Grand Valley through the installation of advanced metering technology and SCADA systems. This project addresses drought conditions by improving water use efficiency and supporting local aquatic ecosystems.

Habitat Restoration in the Gunnison Basin: Up to approximately $750k

Funding is provided to restore stream habitats in the Gunnison Basin, implementing low-tech restoration structures to enhance ecosystem resilience and support habitat for the endangered Gunnison Sage-Grouse.

Cyanobacteria Monitoring and Treatment for Drought-driven Blooms in a High Elevation, Upper Colorado Reservoir to save Ecosystem Function: Up to approximately $518k

Funding is provided to restore aquatic health at Williams Fork reservoir by deploying real-time water quality monitoring tools and implementing targeted hydrogen peroxide treatments to combat algal blooms. It enhances water quality management to protect ecosystems and support community recreational activities.

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