Nebraska Gov. Pete Ricketts (R) has signed a bill to build a canal to divert South Platte River water from Colorado to Nebraska under a 1923 interstate compact.
Ricketts signed Legislative Bill (LB) 1015, the Perkins County Canal Project Act, into law on April 18 after introducing the canal idea in his State of the State address Jan. 13.
LB 1015 gives the Department of Natural Resources (DNR) the authority “to develop, construct, manage and operate the Perkins County Canal Project consistent with the terms of the South Platte River Compact.”
In the 1923 South Platte River Compact, Nebraska is guaranteed 500 cubic feet per second (3,740 gallons) from Oct. 15 to April 1, but the state must construct a canal.
The bill underwent several amendment proposals since its introduction in January. Sen. Machaela Cavanaugh (D-6-Omaha) introduced two conflict-of-interest amendments that passed unanimously into the bill’s final language. The bill would prohibit the department’s director, employees and their immediate family members from having a direct or indirect financial interest in any entity that is a party to the project’s contracts.
The conflict-of-interest provision would also apply to members of the Legislature and elected officials in the executive branch of state government while they are in office and for two years after they leave.
LB 1015 does not allocate money or describe where the canal would be built. It does give DNR the power to contract for services, acquire real property—including by eminent domain—and accept grants and other funding for the project, along with any other functions consistent with the compact.
Separate from the bill, the Appropriations Committee voted to allocate $53.5 million from the cash reserve for the project, not the amount Ricketts was seeking. Ricketts proposed paying for the canal with a $400 million transfer from the state’s Cash Reserve Fund and $100 million in federal COVID-19 relief funds from the American Rescue Plan Act.
In a February statement, Ricketts stressed the need for the canal project, stating, “People understand that the price of inaction is far higher than the funding needed to secure our water rights.”
In 1894, construction on the Perkins County Canal began, and 24 miles of the canal were partially completed. Work started just south of Ovid, CO, and ran south to Julesburg, CO. Perkins County residents at the time approved $90,000 in bonds, but the bonds were never sold, forcing them to give up on the project.
Remnants of the canal can be seen along Interstate 76, where the original route would cross the interstate three times.
Colorado officials have pushed back against Ricketts and other Nebraska officials who asserted Colorado had planned several projects designed to cut 90 percent of the water supply to their state. Colorado Gov. Jared Polis (D) said he would “protect and aggressively assert Colorado’s rights” after Ricketts’ announcement.
Kara Powell, a spokesperson for Polis, called the project “A bad-faith attempt to undermine a century-long and successful compact between Colorado and Nebraska and a costly boondoggle for Nebraska taxpayers.”
Ricketts tweeted after Nebraska lawmakers passed the bill: “Future generations will look back on this decision and be grateful for the foresight to preserve their water!” — Charles Wallace, WLJ editor
