KWO Report GMD #3 Annual Meeting March 8, 2017 Ulysses, KS

Water Technology Farms Roth, T&O and ILS Farms initiated in 2016 All will continue to operate/ expand in 2017 Up to 7 new WTFs anticipated in 2017 Roth Moisture Probe Event – March 21

BRFTF Recommendations 0.1 % of the current statewide sales tax Maintain existing fees Until sales tax revenue is available, restore SGF and EDIF transfers to State Water Plan Fund

KWA Recommendations Restoration of the SGF and EDIF Transfers Streambank Stabilization $2,000,000 Water Conservation Technology Adoption $1,532,363 Watershed Best Management Practice Implementation Less Water Intensive Crop Research $500,000 Securing Water Leaving the State Study $200,000 Restore SWPF Revenue Shortfall $1,767,637 Total $8,000,000

Sub for HB 2241 Section 1 – Creates fee for water taken from reservoirs to a maximum of $0.40 per 1,000 gallons (same as HB 2241 original language) Section 2 – Creates fee for irrigation at $.005 per 1,000 gallons (same as HB 2241 original language) Section 3 – creates groundwater depletion trust fund that allocates irrigation fee in Section 2 to the county where it is collected. Section 4 – Gives the county commissioners the authority to spend the trust fund moneys Section 5 – Allows chief engineer to help GMDs with cost sharing to retire existing water rights so long as the GMD has maxed out on their assessment rate. Section 6 – Raises fertilizer fee from $1.67 per ton to $2.37 per ton. (same as HB 2032) Section 7 – raises pesticide registration fee from $150 to $200 (same as HB 2032) Section 8 – creates a flood protection fee that can be assessed by watershed districts on downstream property. Section 9 – Keeps irrigation fee funds only to be used on groundwater issues by KWO Section 10 – Increases GMD assessments (SB 194) Section 11 – Increase public water supply fees from $.03 to $.06 per 1,000 gallons, stockwatering $.03 to $.045, and industrial from $.03 to $.045 Section 12 – creates a surface water protection fee of $0.05 per 1,000 gallons of storage capacity on water assurance districts. Section 13 and 14 – implementation clauses

Impact of House Sub for HB 2241 2011-2015 Average Usage   Current Proposed State Water Plan Fund Units Fee Revenue Generated GW Projects SW Projects Statewide Ground Water Trust Fund Municipal Fees ¢ / 1000 Gal 3 $ 3,318,143 6 $ 6,636,287 Industrial Fees $ 1,095,350 4.5 $ 1,643,024 Stockwater Fees $ 374,448 $ 561,672 CDWFF $ 2,998,235 Irrigation Use Fee $ - 0.5 $ 5,957,773 $ 5,659,885 $ 297,889 Fertilizer Fees $ / Ton 1.4 $ 3,416,703 2.1 $ 5,125,055 Sand Royalties 0.15 $ 100,873 Pesticide Fees $ / License 100 $ 1,202,420 150 $ 1,803,630 WM Surface Water Fee 40 $ 4,281,882 $ 4,281,882 WAC Surface Water Fee 5 $ 3,443,121 Total SWPF Fees $ 12,506,172 $ 32,551,552 $ 22,311,897