Office of Sen.

Mike Johnston
Colorado General Assembly | 200 E. Colfax Avenue | Denver, CO 80203 | 303.866.4864

FACT SHEET MEMORANDUM

SB 13-181 Water Conservation Board Construction Fund Projects Sen. Schwartz & Rep. Fischer
Staff Name: Michael Cox What the Bill Does: The bill makes appropriations to the Colorado water conservation board (CWCB) construction fund and the Department of Natural Resources for multiple water conservation and natural restoration projects. It also creates several trusts for the purpose of funding these projects and transfers various amounts of money into these trusts. The majority of projects funded under the bill will benefit local water districts. More details are provided below, but briefly the bill: Renames the Perpetual Base Account of the Severance Tax Trust Fund to the Severance Tax Perpetual Base Fund; Renames the Operational Account of the Severance Tax Trust Fund to the Severance Tax Operational Fund; Transfers funding from the Severance Tax Perpetual Base Fund to the CWCB Construction Fund to fund two projects; Transfers funding from the CWCB Construction Fund for one project; Clarifies that the CWCB may also use instream flow water rights to improve the natural environment, using up to $1,000,000 of existing continuous spending authority; Authorizes the CWCB to loan an additional $4,040,000 to the Tri-County Water Conservancy District for the Ridgway Dam Hydropower project, for a new approved total loan amount of $13,130,000; and Authorizes the CWCB to loan $18,538,550 from the CWCB Construction Fund to enable the purchase of water rights for the Roxborough Water and Sanitation District water activity enterprise. Colorado Context: The CWCB Construction Fund was created in 1971 to provide low-interest loans and grants to water providers and other entities statewide for a variety of water-related projects, studies, planning documents, awareness campaigns and other activities. Revenues for this revolving loan fund come from interest earned on outstanding loans and the fund's cash balance and royalty distributions from federal mineral leases. Consisting of 15 members, the CWCB Board is appointed by the Governor and 3/5/2013 21:18 a3/p3 For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.

ensures the CWCB fulfills its mission to conserve, develop, protect and manage Colorados water for present and future generations. National Context: With drought conditions affecting much of the United States, many states are funding more water conservation projects, especially in the West. Virtually every state has some type of water conservation and resource department that gives grants and loans for water projects, including Texas, Washington, Arizona, New Mexico, New York, and Virginia. Californias Department of Water Resources has similar grant and loan programs as well. Bill Provisions: The bill appropriates the following amounts from the Colorado water conservation board (CWCB) construction fund to the Department of Natural Resources for the following projects: $300,000 for continuation of maintenance to the satellite monitoring system; $175,000 for continuation of the weather modification program; $500,000 for continuation of the Colorado floodplain map modernization program; $250,000 for continuation of the watershed restoration and flood mitigation program; $300,000 for documentation, forecasting, mapping, aerial photography, mitigation, and other efforts deemed necessary to quickly respond to flood and drought events, and restoration of the balance of the flood and drought response fund; $215,000 for implementation of the Rio Grande water supply forecasting development project; $100,000 for the operation and maintenance of Colorado's decision support systems; $75,000 for continuation of the Colorado river basin study; $250,000 for continuation of the Arkansas river decision support system, including the collection and compilation of data.; $225,000 for continuation of the statewide water supply initiative, including reexamining the methodologies used to analyze the municipal, industrial, agricultural, and nonconsumptive water demands, as well as considering varying hydrologic analyses, climate change, and drought planning; $250,000 for continuation of the South Platte river basin groundwater level data collection and analysis which would install and monitor various devices, conduct public outreach, and perform other functions as necessary to assist with determining the cause, and developing possible remediation, of high groundwater levels in the South Platte river basin; $2,000,000 for the planning, design, and construction of the Windy Gap reservoir bypass channel project; $28,000,000 for implementation of the Chatfield reservoir reallocation project in 2013-2014, and $29,000,000 in 2015-2016. The bill authorizes the CWCB to loan an additional $4,040,000, bringing the loan to $13,130,000 total, from the CWCB construction fund to the Tri-county Water Conservancy District for the construction of a hydropower project. For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.

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Current law gives the CWCB continuous spending authority of up to $1,000,000 per year to acquire instream flow water rights; the bill allows the CWCB to acquire these rights for the purpose of preserving and improving the natural environment, support wild and scenic alternative management plans. The bill creates the severance tax trust fund transfers the administration of this fund from the state treasury to the department of natural resources for the use in funding programs that promote and encourage sound natural resource planning, management, and development related to minerals, energy, geology, and water and for the use in funding programs to reduce the burden of increasing home energy costs on low-income households. The bill changes the perpetual base account of the severance tax trust fund into a separate fund, called the severance tax perpetual base fund, that is administered by the CWCB. The state Treasurer will transfer money from the severance tax trust fund to the severance tax perpetual base fund. The state treasurer shall transfer twenty-eight million dollars on July 1, 2014, and twenty-nine million dollars on July 1, 2015 to the CWCB construction fund. The state treasurer shall also transfer two million dollars from the fund to the CWCB construction fund for the Windy Gap Resevoir Bypass Channel Project. The bill changes the operational account of the severance tax trust fund into a separate fund, called the severance tax operational fund, and transfers the administration of that fund from the state treasury to the department of natural resources. The bill also transfers an additional $49,000,000 from the severance tax perpetual base fund to the CWCB construction fund for the Chatfield reservoir reallocation project and $2,000,000 for the Windy Gap reservoir bypass channel project, which is part of the Windy Gap firming project. The bill authorizes the CWCB to loan $18,538,550 from the CWCB construction fund for the purchase of water rights for the Roxborough water and sanitation district water activity enterprise.

Fiscal Impact: State Expenditures: This state spends $32,340,000 in FY 2013-14 from the CWCB Construction Fund for the above listed projects. State Transfers: In FY 2013-14 and FY 2015-16, the bill transfers funding from the Severance Tax Perpetual Base Fund to the CWCB Construction Fund for the Chatfield Reservoir reallocation project and the Windy Gap Reservoir bypass channel project, as shown below. Chatfield Reservoir reallocation project transfers: $14,000,000 will be transferred on January 1, 2014 (FY 2013-14); $14,000,000 will be transferred on June 30, 2014 (FY 2013-14; and $29,000,000 will be transferred on July 1, 2015 (FY 2015-16). Windy Gap Reservoir bypass channel project: $2,000,000 will be transferred on July 1, 2013 (FY 2013-14). The bill also transfers $300,000 from the CWCB Construction Fund to the Flood and 3/5/2013 21:18 a3/p3 For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.

Drought Response Fund. The transfer is effective July 1, 2013. Moneys in the fund are used for flood preparedness and response and recovery activities following flood and drought events and disasters. In FY 2013-2014: $30,300,000 In FY 2015-2016: $29,000,000

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For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.