Perkins County canal project could cost Nebraska over $600 million, study finds

A canal-and-reservoir challenge outlined in a century-old compact may price Nebraska between $567 million and $628 million.

The Legislature’s Appropriations Committee heard the findings of an impartial examine performed on the challenge throughout a Friday listening to. Two consultants presenting the findings mentioned the advantages of the challenge outweigh the prices, however some lawmakers expressed doubts.

“I discover it to be one thing that we may lose large time on,” mentioned Sen. John Stinner of Gering, chair of the Appropriations Committee.

Lawmakers handed a invoice earlier this 12 months to hold out the provisions of an almost century-old compact with Colorado. Below the compact, Nebraska can lay declare to 500 cubic toes per second of South Platte River water for irrigation use between Oct. 15 and April 1, however provided that the canal — which might begin in northeast Colorado and proceed into western Nebraska — is constructed.

The Appropriations Committee allotted $53.5 million in final 12 months’s price range, a part of which funded the examine, which examined the timeline, cost-effectiveness and different impacts of the canal.

The examine introduced two choices for the challenge that will decide the price. One possibility would guarantee Nebraska receives 500 cubic toes per second of water, and is estimated to price $567 million. The opposite possibility would give the state 1,000 cubic toes per second of water, and would price $628 million.

The price of the canal was beforehand estimated to be about $500 million based mostly on a 1982 engineering examine.

Gwyn-Mohr Tully, one of many consultants, mentioned regardless of the excessive price, Nebraska stands to achieve from the challenge. The examine estimated the state may earn almost $700 million to almost $1 billion in advantages, principally from elevated water movement, Tully mentioned. He later mentioned a canal would assist enhance the state’s drought resiliency and produce regional financial advantages.

Stinner objected to that declare, arguing the examine wanted to be extra particular in regards to the perceived advantages. He additionally criticized the examine for not contemplating the price of Colorado suing if the state strikes ahead on the challenge, which he claimed was extremely probably, saying Nebraska is “begging for a lawsuit.”

“That’s one of many issues that I’m most frightened of,” Stinner mentioned.

Colorado officers have criticized the challenge. Earlier this 12 months, a spokesperson for Colorado Gov. Jared Polis referred to as it a “canal to nowhere” and “boondoggle.”

Water regulation consultants, in earlier interviews, have questioned how a lot water the canal may really yield.

However the examine posited that Nebraska would acquire way over it will lose based mostly on Colorado’s upcoming water plans. Tully mentioned Colorado lately handed laws to make use of South Platte River water to satisfy the calls for of its rising inhabitants, which may cut back Nebraska’s water movement if the canal will not be constructed.

These factors echo arguments made by Gov. Pete Ricketts, who revived the thought for the canal challenge earlier this 12 months. His proposed price range referred to as for funding the challenge.

“After our individuals, water is the best pure useful resource that we’ve in our state,” Ricketts mentioned at a information convention in January.

Michael Preszler, the opposite marketing consultant, mentioned Friday that the estimated timeline for the challenge would see development start in 2026 and final by way of 2033. Stinner additionally doubted that declare, saying initiatives he’s labored on in Colorado usually final 10-25 years.

Stinner continued to pour chilly water on the examine, predicting the plan would depart Nebraska’s reservoirs principally empty, and protesting the shortage of enter from Colorado officers within the examine. Fellow committee member Sen. Mark Kolterman of Seward mentioned the state ought to have a dialogue with Colorado on the challenge. Each Stinner and Kolterman are of their closing month in workplace, with time period limits pushing each males out of the Legislature.

Tom Riley, director of the Nebraska Division of Pure Assets, mentioned he’s talking with Colorado officers, together with the state engineer and workers with the Colorado Legal professional Common’s Workplace.

Nebraska Governor-elect Jim Pillen introduced Friday that Riley would stay director of Pure Assets in his administration, with the Perkins County Canal challenge being a prime precedence.

Riley mentioned the state has but to enter a proper contract to accumulate the land needed for the challenge, although officers hope to have one finalized by the top of the 12 months. He mentioned his division has to this point obtained three letters of intent from landowners fascinated by getting into an settlement with the state, and general there may be “good curiosity” within the challenge.