1. Meeting Colorado’s Future Water Needs: CWCB’s Role The Colorado Water Conservation Board

2. Presentation  The Colorado Water Conservation Board  Colorado’s Future Water Needs  CWCB’s Funds and Legislative Oversight  Cash Flow of CWCB’s Funds  Impact of Taking More CWCB Cash or Selling Existing Loans Colorado Water Conservation Board

3. The Colorado Water Conservation Board Operations/Programs:  Water Project Loan Program  Water Conservation and Drought Planning  Interstate Compact Protection  Stream and Lake Protection  Watershed Protection & Flood Mitigation  Decision Support Systems  Water Supply Planning

4. Colorado’s Future Water Needs  Projecting Population Growth  Projecting Water Demands  Identified Projects & Processes (IP&P’s)  The “Gap” Colorado Water Conservation Board

5. In 2030, the South Platte and Metro Basins will have 409,700 of New Demand (AF) 5  South Metro Counties Rueter- Hess  ECCV Northern  Non-trib GW  Denver Metro Counties  Aurora Prairie Waters  Thornton Poudre Pipeline  Ag Transfers  Gravel Lakes  Northern Counties CBT acquisitions, ag transfers and local storage  South Metro  Denver Metro  Northern  Upper Mountain  Lower Platte  Moffat Firming  Windy Gap Firming  NISP  Halligan-Seaman

6. In 2030, the Arkansas Basin will have 80,900 of New Demand (AF) 6  Arkansas Valley Conduit  Well augmentation  Non-trib GW  PSOP  Existing water rights  Agricultural Transfers  Upper Arkansas  Unincorporated El Paso County  Lower Arkansas  Southwestern Arkansas  Southern Delivery System

7. In 2030, the Colorado Basin will have 61,900 of New Demand (AF) 7  Pitkin County IPPs Existing Supplies  Ruedi Reservoir  Mesa City IPPs Existing Supplies, Ag Transfers, Ruedi/Wolford  Jerry Creek Reservoir  Garfield City IPPs Existing Supplies  Ag Transfers  Eagle City IPPs Existing Supplies  Ag Transfers  Eagle River Process  Grand County  Summit County

8. State of Colorado Projected M&I Water Use and Gaps 8 Existing Water Use and Systems Identified Projects and Processes if 100% Successful 2050 Gap – High Projection 2050 Gap – Medium Projection 2050 Gap – Low Projection

9. State of Colorado Projected M&I Water Use and Gaps 9 Existing Water Use and Systems Identified Projects and Processes if 50% Successful 2050 Gap – High Projection 2050 Gap – Medium Projection 2050 Gap – Low Projection

10. CWCB’s role…..  Financial Support for State Water Efforts  Feasibility Study Grants  Emergency Agricultural Drought Grants  WSRA Grants  Water Conservation Grants  Weather Modification Grants  Tamarisk Removal Grants  Low Interest Water Project Loans Colorado Water Conservation Board

11. Where does a borrower go for a raw water supply loan? Type Borrower/ProjectCWCBWater & Power Authority (SRF) Private Bank Agricultural/Non-Profit Water Rights √ NO3x rates Dams/Reservoirs/Canals √ NO3x rates Municipal (<10,000 pop.) Water Rights √ NO2x rates Dams/Reservoirs/Canals √ NO2x rates

12. CWCB’s role…..  Resource Support  Decision Support Systems  Statewide Studies  Water Conservation & Drought Programs  Information Resources  Flood Preparation & Response  Flood Mitigation  Salinity Program Colorado Water Conservation Board

13. CWCB’s role…..  Facilitation  Chatfield Reallocation  Wild & Scenic Alternatives Process  IBCC staffing & Support  Water Users Interests in Federal Processes  Long Draw EIS  Gunnison River EIS Colorado Water Conservation Board

14. CWCB’s role…..  Negotiation/Protection  Interstate Water Protection  ESA Recovery Program Negotiations  Protecting State Interests in Other Federal Processes  Flood Protection  Instream Flow Water Rights Protection Colorado Water Conservation Board

15. CWCB’s role…..  Balancing Consumptive and Non-consumptive needs  Instream Flow Appropriations & Acquisitions  Recreational In-Channel Diversions  Watershed Restoration Projects  Non-consumptive Water Needs Assessments  Assessing Statewide Water Needs Colorado Water Conservation Board

16. The Colorado Water Conservation Board How does CWCB do all this without one dollar from the State’s General Fund?

17. Severance Tax Trust Fund Perpetual Base Account Construction Fund & CWCB is Self-Supporting General Fund $0 $ CWCB’s Funds

18. General Fund Severance Tax Construction Fund Revolving Loan Program Severance Tax Operational Account Federal Mineral Lease CWCB Operations/Programs Severance Tax Perp. Base Revolving Loan Program Severance Tax

19. $107 million transferred from CWCB to help with State budget Legislative Cash Transfers in FY09 & FY10

20. General Fund Severance Tax Construction Fund Revolving Loan Program Severance Tax Perp. Base Revolving Loan Program Severance Tax Operational Account Federal Mineral Lease CWCB Operations/Programs $107 million Cash Transfers Severance Tax

21. SEVERANCE TAX TRUST FUND The Severance Tax Trust Fund resides in the office of the State Treasurer. The Fund is to be perpetual and held in trust as a replacement for depleted natural resources and for the development and conservation of the state’s water resources. 39-29-109 CRS. DOLA (Energy Impact Fund) grants and loans to local governments Tier 1 Operational Account Programs & projects related to energy, minerals, geology & water Perpetual Base Account CWCB Water Project Loans 25% CWCB 50% DOLA 40% Oil & Gas 25% Reclamation & Mines 20% Geo Survey 5% DOW 5% CWCB 5% Parks 25% DNR

22. Program funding uncertainty Funding based on revenues First to be cut Severance Tax Operational Account Tier 2 Programs Tier 2 Programs Basin RoundtablesAg. Added Value WSRAForest Health SCTFZebra Mussels WEGFLEAP

23. LONG BILL - The annual Legislative Bill appropriating the State budget, including all CWCB operational expenses from the Construction Fund (SB 09-259). Legislative Oversight of CWCB’s Funds CONSTRUCTION FUND PROJECTS BILL - The annual Legislative Bill authorizing expenditures and providing spending authority for the CWCB Funds (SB 09-125).

24. Supporting Documents

25. Water Project Loans (Revolving) Federal Mineral Lease CWCB Operations/Programs Shared DNR Expenses Construction Fund Cash Flow Before State Budget Crisis

26. Water Project Loans (Revolving ) Federal Mineral Lease CWCB Operations/Programs Shared DNR Expenses $10 million Cash Transfer to General Fund Construction Fund Cash Flow ? ? ? Now

27. Water Project Loans (Revolving) Severance Tax Emergency Agricultural Drought Grants Severance Tax Trust Fund Perpetual Base Account Cash Flow Before State Budget Crisis

28. Severance Tax Severance Trust Fund Perpetual Base Account Cash Flow $97 million Cash Transfer to General Fund Emergency Agricultural Drought Grants Now $0.00 Water Project Loans (Revolving) (-) $35 million July 1, 2010

29. Severance Tax Severance Trust Fund Perpetual Base Account Cash Flow $97 million Cash Transfer to General Fund Emergency Agricultural Drought Grants $0.00 Water Project Loans (Revolving) (-) $35 million July 1, 2010

30. 1.May yield 20% to 40% of the actual loan value 2.The Aurora loan makes it possible to offer low interest loans to agricultural and low income borrowers 3.The Construction Fund will lose up to 1/3 of its value 4.Loss would be $6 million annual impact (equivalent to CWCB’s annual operational expenses) What if we sell the Aurora loan?

31. Water Project Loans (Revolving) Federal Mineral Lease CWCB Operations/Programs Shared DNR Expenses More Cash Transfers to General Fund Sell Aurora Loan ($6 million annual impact to CWCB) Construction Fund If More is Taken! ? ? ?

33. Conclusion 1.CWCB’s role to support consumptive & non-consumptive uses will be threatened by any additional budget transfers. 2.Transferring money from these funds reduces/eliminates the CWCB’s ability to be self supporting.

34. COLORADO WATER CONSERVATION BOARD Thank You www.cwcb.state.co.us