Legislative Wrap Up

The 2026 Wyoming Legislative Session included several bills that impact water management, infrastructure, and natural resources across the state. Below is a summary of key legislation relevant to Wyoming Water Association members, including funding, implementation, and potential impacts.

Please note that we are not legal experts, and these summaries are intended to provide a general understanding of the legislation based on our interpretation. Members are encouraged to review the full bill language or consult with legal or policy professionals for detailed guidance.

Budget Bill

As part of the budget bill, the Board of Control’s budget will now be funded from the state general fund instead of Water Development Account I, freeing up approximately $17 million more per biennium for other water projects.

HB0078 – Forest Health Grant Program

This bill creates a Forest Health Grant Program funded with $3.5 million from the state general fund to support projects that improve forest and watershed health and reduce wildfire risk. The program will be administered by the State Forester and will provide cost-share grants for forest treatment projects such as thinning and vegetation management. This bill is to help make healthier forests can help improve watershed function, reduce sediment in streams and reservoirs, and protect municipal and irrigation water supplies originating in forested headwaters.

HB0087 – Omnibus Water Bill (Planning)

HB0087 provides over $5 million in total funding from Wyoming’s Water Development Accounts I, II, and III to support water planning efforts. The funds are administered by the Wyoming Water Development Commission and will be used for Level I reconnaissance studies and Level II feasibility studies for new water development projects, dam and reservoir rehabilitation, and other water infrastructure planning efforts. A portion of the funding also supports water research conducted through the University of Wyoming Office of Water Programs and the UW Water Research Program. These studies help move water projects through the planning pipeline and are often the first step toward future construction funding.

SF0016 – Subleasing of State Lands: Exemptions

SF0016 updates how state grazing leases are managed when livestock are not owned by the lessee, creating clearer rules and new exemptions. The bill does not include a funding appropriation, but is implemented by the Wyoming Office of State Lands and Investments, which oversees state trust lands. It allows lessees to graze non-owned livestock without prior approval if they notify the State Lands office, but requires payment of a per-head monthly fee. The bill also creates an exemption when there is at least 80% common ownership between the lessee and livestock, eliminating the need for a sublease or fee in those cases.

While this bill is primarily agricultural, it affects management of state trust lands that include watersheds and grazing lands tied to water use, and may influence how land and water resources are coordinated at the local level.

SF0026 – Game and Fish Property Tax Exemption Amendments

This bill modifies how Wyoming Game and Fish Department lands are treated for property tax purposes. The legislation clarifies when certain lands owned by the agency are exempt from taxation. While it does not include a major new funding appropriation, it may affect local government revenue and management of wildlife habitat areas, many of which include riparian corridors and water resources important for fisheries and watershed health.

SF0050 – State Engineer Groundwater Study

SF0050 appropriates $500,000 from the state general fund to the Wyoming State Engineer’s Office to conduct a study of groundwater conditions in designated control areas. The State Engineer will evaluate aquifer conditions and whether current groundwater management controls are effective. The results of this study could influence future groundwater regulation, well permitting, and management decisions in areas experiencing aquifer decline or conflicts between groundwater and surface water rights.

SF0052 – Large Project Funding (Wildlife & Natural Resources)

SF0052 authorizes funding for several large-scale conservation and watershed-related projects through the Wyoming Wildlife and Natural Resource Trust. The bill appropriates funding (totaling over $5 million in new appropriations) for six major projects carried out by partners including the Wyoming Game and Fish Commission, conservation districts, and county weed and pest districts. Projects include: Upper Greybull Fish Passage III (river restoration and fish passage), Baggs Valley Headwaters V (rangeland and vegetation restoration), Absaroka Front Cheatgrass and North Platte Cheatgrass (invasive species removal), Cody Canal Fish Screen (reducing fish loss in irrigation systems), and Western Wyoming Cheatgrass (large-scale habitat restoration).

SF0068 – Water Districts: Funding for Maintenance Projects

SF0068 does not provide new state funding, but instead authorizes irrigation districts, watershed improvement districts, and water conservancy districts to set aside a portion of their existing annual assessments for major maintenance of aging irrigation infrastructure. The bill allows these entities to create dedicated “major maintenance” accounts, pool funds over time, and invest those funds through the state to prepare for large repair or rehabilitation projects such as canals, diversion structures, and delivery systems. Implementation is carried out at the local district level, with oversight by district boards and county assessment processes. This will provide a practical tool to plan and pay for long-term infrastructure maintenance, helping avoid emergency failures and improving reliability of water delivery systems statewide.

SF0069 – Waste and Stormwater Infrastructure Study

SF0069 provides $8 million to fund a statewide study of wastewater and stormwater infrastructure. The study will be led by the Wyoming Department of Environmental Quality, in coordination with the Office of State Lands and Investments and the Wyoming Water Development Office, with support from local governments to provide system data. The project will develop a comprehensive asset management system and statewide infrastructure inventory, with annual reports to the Select Water Committee through 2030.

The legislation focuses specifically on wastewater and stormwater infrastructure, as funding for drinking water asset management plans is already available through SRF set-aside funds.

This effort will create a clearer picture of infrastructure condition, funding needs, and risk of system failure, helping guide future investment in municipal wastewater and stormwater systems across the state.

SF0070 – Omnibus Water Bill (Construction)

SF0070 authorizes funding for multiple water development construction projects across Wyoming through the state’s water development program. The bill provides appropriations from Water Development Accounts I and II, leveraging combined state and local cost-share funding for projects such as dam rehabilitation, irrigation system improvements, municipal water supply infrastructure, and reservoir projects, while also adjusting funding for previously approved projects. Implementation is carried out by the Wyoming Water Development Commission in coordination with local project sponsors, including municipalities, irrigation districts, and water users.

The bill also requires the Wyoming Water Development Office to conduct an internal study of the Small Water Project Program to identify potential efficiencies. In addition, it authorizes the Office’s ground-based cloud seeding program targeting the Wind River and Sierra Madre Ranges for the winter of 2026–27.

This is one of the most impactful water bills of the session, as it directly funds on-the-ground water infrastructure projects, improving water storage, delivery efficiency, and long-term reliability across the state.

SF0084 – Voluntary Water Conservation Program (Colorado River Basin)

SF0084 establishes a Voluntary Water Conservation Program for Wyoming’s portion of the Colorado River Basin, allowing water users to participate in temporary, compensated conservation projects that reduce consumptive use while protecting existing water rights. The program is administered by the Wyoming State Engineer’s Office, which oversees project applications, approval, and reporting. The bill includes a state appropriation (with funding for staffing and program implementation, plus potential project payments) to support conservation efforts and program administration. It also allows conserved water to be stored and managed in reservoirs while ensuring no injury to other water rights and prohibiting out-of-state water marketing.

This bill is significant because it creates a state-led, voluntary alternative to mandatory curtailment, giving water users a way to participate in Colorado River conservation efforts while maintaining control of their water rights and operations.

SJ0009 – Colorado River Compact Support Resolution

SJ0009 is a joint resolution expressing Wyoming’s support for protecting its rights under the Colorado River Compact and related agreements as negotiations continue over future river management in the basin. The resolution does not include funding or create a program, but instead provides formal direction to state leadership, including the Governor, State Engineer’s Office, and Wyoming’s Colorado River representatives, as they participate in interstate and federal discussions.

This resolution signals the Legislature’s strong position on defending Wyoming’s allocation and ensuring that any future management decisions do not negatively impact the state’s water users, particularly in the face of ongoing drought and increasing demand across the Colorado River Basin.

Save the Date: 2026 Summer Tour

June 17-18 | Kemmerer, WY

Join the Wyoming Water Association and the Wyoming Association of Conservation Districts for our 2026 Summer Tour in Kemmerer.

Two days of firsthand project tours, practical insights from local experts, and strong networking with water professionals from across the state.

Details on agenda, registration, and lodging coming soon.

Make plans now — we’ll see you in Kemmerer.

Join or Renew Your Wyoming Water Association Membership

Membership in the Wyoming Water Association keeps you connected to the people and policies shaping water in our state. Members receive legislative updates, educational opportunities, networking access, and timely water policy briefings.

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P.O. Box 1691, Cheyenne, WY 82003

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