For the first phase, Reclamation invested $125 million from the Inflation Reduction Act funding to support the relaunch of a System Conservation Pilot Program in the Upper Colorado River Basin. The purpose of the program is to generate temporary, voluntary and compensated water conservation to improve water efficiency and mitigate the impacts of drought on the Colorado River System.

In fiscal year 2023 it was reauthorized as part of the 2023 Omnibus Appropriations Bill . The program funded $15.8 million for 64 individual contracts with a total water savings of 37,800 acre-feet.

The Upper Basin States, acting through the Upper Colorado River Commission, agreed to move forward with a System Conservation Pilot Program for fiscal year 2024. The application process for the 2024 System Conservation Pilot Program will kick off in October. The 2024 SCPP application materials will be posted on the UCRC webpage . The renewed program is cooperatively managed by Reclamation and the Upper Division States of Colorado, New Mexico, Utah and Wyoming acting through the Upper Colorado River Commission.

Reclamation anticipates using the remainder of the $500 million in IRA funding for the second phase of the program, which will focus on long-term, durable projects.

Reclamation has issued a pre-solicitation letter Link is to a PDF file and is requesting input on the types and nature of projects, project selection criteria, and program administration considerations that should be considered when distributing funds for phase 2.

General Categories of Phase 2 Projects:

• System conservation and efficiency projects that achieve verifiable, multi-year reductions in use of or demand for water supplies
• Demonstration projects to spur advances in water conservation and efficiency using innovative techniques
• Ecosystem and habitat restoration projects to address issues directly caused by drought

Solicitation / comments were taken until Friday July 07, 2023. Final responses can be viewed under the Stakeholder Response Letters tab.

On October 12, 2022, the Department of the Interior (Department) made an announcement of actions to address drought in the Colorado River Basin with funding support from the Inflation Reduction Act (IRA). At that time, the Department announced that at least $500 million would be available for investment in the Upper Colorado River Basin States for long-term system efficiency improvements that will result in additional water conservation for the entire system.

The Bureau of Reclamation (Reclamation) is implementing these funds in two phases. For the first phase, Reclamation has partnered with the Upper Colorado River Commission to make available up to $125 million of IRA funds for a System Conservation Pilot Program. Reclamation anticipates using most of the remaining funding for the second phase of the program (Phase 2), which will focus on long-term, durable projects. The purpose of this letter is to request input on the types and nature of projects, project selection criteria, and program administration considerations that Reclamation should consider when distributing funds for Phase 2.

The use of this funding is a part of the commitment made by the Department on August 16, 2022, to address the drought crisis with prompt and responsive actions and investments to ensure the entire Colorado River Basin can function and support all who rely on it. Prolonged drought and low runoff conditions accelerated by climate change have led to historically low water levels in Lakes Powell and Mead. Over the last two decades, Department leaders have engaged with Colorado River Basin partners on various drought response operations; however, additional action is needed to protect the Colorado River system and prevent the reservoirs from falling to critically low elevations, threatening water deliveries and power production. The historic funding committed by the Biden-Harris Administration for water management and conservation efforts in the Colorado River Basin and other basins experiencing comparable levels of long-term drought includes $4 billion from the IRA.

Reclamation is seeking input on Phase 2 projects that could fall into the following three general categories:

• System conservation and efficiency projects that achieve verifiable, multi-year reductions in use of or demand for water supplies,
• Demonstration projects to spur advances in water conservation and efficiency using innovative techniques,
• Ecosystem and habitat restoration projects to address issues directly caused by drought.

Reclamation is specifically requesting input on the types of projects that may be eligible for funding and the evaluation criteria that might be used during project selection. Reclamation is also seeking input on the administration of the program. Specifically, what level of administrative partnership with the Upper Division States, the Upper Colorado River Commission, and/or other governmental entities would be effective/beneficial for the types and nature of projects proposed.

Reclamation is working to release the solicitation for potential Phase 2 projects later in calendar year 2023 and appreciates your suggestions to help make the program a success. Comments will be taken until Friday July 07, 2023, and can be sent via email to: UCBEfficiency@usbr.gov.

Reclamation's Lower Colorado Region has recently sent a similar request for input regarding its Lower Colorado Conservation Program. Additional information from Reclamation will be forthcoming on IRA programs in other basins experiencing comparable levels of long-term drought.

For the deaf, hard of hearing or speech impaired, please dial 7-1-1 to access the telecommunications relay system.

Download the Request for Input for the Upper Colorado River Basin System Conservation and Efficiency Program Link is to a PDF file here.

Q. How much of the $4 billion in Inflation Reduction Act funding for water management and conservation efforts in the Colorado River Basin go to the Upper Colorado River Basin?

A. The Department of the Interior invested in long-term system efficiency improvements across the Basin, including at least $500 million in the Upper Basin states of Colorado, Utah, Wyoming, and New Mexico.

Q. What are the two phases of spending the $500 million?

A. For the first phase, Reclamation has partnered with the Upper Colorado River Commission to make available up to $125 million of IRA funds for a System Conservation Pilot Program. Reclamation anticipates using the remaining funding for the second phase of the program, which will focus on long-term, durable projects.

Q. What is the purpose of public input for Phase 2?

A. Reclamation plans to use the input received during the pre-solicitation period to help inform the development of the program including the development of the funding opportunity announcement.

Q. What input is Reclamation seeking during this pre-solicitation period?

A. Reclamation is seeking input on:

• Types of projects that should be considered
• Criteria for project selection
• Administration of the program, specifically, what level of administrative partnership with the Upper Division States and/or other governmental entities

Q. When will the solicitation of Phase 2 of the program be available?

A. Reclamation is working to release the solicitation of Phase 2 of the program later in calendar year 2023.

Q. What is the long-term goal Reclamation anticipates from the Phase 2 projects?

A. The use of this funding is to address the drought crisis with prompt and responsive actions and investments to ensure the entire Colorado River Basin can function and support all who rely on it. Prolonged drought and low runoff conditions accelerated by climate change have led to historically low water levels in Lakes Powell and Mead.