1. Wyoming Association of Rural Water Systems Harry LaBonde Jr, P.E. Director Wyoming Water Development Office April 19, 2016

2. Topics Full Evaluation Study of the WWDC Wyoming Water Development Revenues Fontenelle Dam and Outworks Infrastructure Glendo Reservoir Full Utilization Project

3. Full Evaluation Study of the WWDC Scoping paper authorized December 2014 Full Evaluation Study authorized July 2015 Report Development July – November 2015 Final Report released January 6, 2016 Nine recommendations Four policy considerations

4. Full Evaluation Study of the WWDC Recommendations Three (3) minor recommendations involving minutes, financial disclosures and conflicts of interest One (1) in which Legislature could better define agency-commission governance Five (5) significant recommendations Reservoir O&M accounts Project Prioritization Rules and regulations Consultant selection processes at the WWDC Agency/commission governance

5. Full Evaluation Study of the WWDC Recommendation 2.1 – Reservoir O&M Accounts WWDC maintains eight (8) reservoir O&M accounts Purpose is to pay for facility O&M requirements All water sale revenues deposited into accounts Some accounts are growing, some are not W.S 99-99-1001(c) requires that excess funds in accounts be deposited into WDA I Recommendation requires WWDC to make a determination on excess funds Two (2) accounts currently have excess funds Expect final recommendations by May 2016

6. Full Evaluation Study of the WWDC Recommendation 3.1 – Project Prioritization Currently WWDC uses the Operating Criteria Recommendation is seeking a more defined process Statutes Operating Criteria Funding constraints Project’s ability to move forward Emergent funding needs Phasing of projects Expect draft guidelines by August 2016

7. Full Evaluation Study of the WWDC Recommendation 4.1 Develop New Rules Current rules total 7 pages Operating Criteria total 31 pages Recommendation seeks to move more criteria to rules Expect draft rules and criteria revisions by August 2016

8. Full Evaluation Study of the WWDC Recommendation 4.5 – Consultant Selection Criteria W.S. 9-2-1031(a) defines criteria to be considered This includes proposal criteria, approach, personnel, firm location, location of key personnel, past performance, current work loads, volume of work previously awarded WWDC has developed instructional guidelines for reviewers Equitable distribution of work between consultants must be considered Process in place for 2016 selection process

9. Full Evaluation Study of the WWDC Recommendation 4.7 – Agency/ Commission Duties and Responsibilities Title 41 statutes define WWDC responsibilities W.S. 9-2-2014 defines the Agency’s responsibilities Report questioned governance Report recommended internal policies to clarify specific duties and responsibilities of the Commission, Commissioners and Office Draft duties and responsibilities – May 2016

10. Wyoming Water Development Revenues Approximately 2/3 of the States Revenue is derived from extractive industries Revenues are projected to fall 10% in BY 2017-18 Impact on the Wyoming Water Development Program? Currently receives a percentage of the Severance Tax Distribution Account (capped at $155 million) WDA I (12.45%) = $19.3 million per year WDA II (2.10 %) = $3.3 million per year WDA III (0.5%) = $0.8 million per year

11. Wyoming Water Development Revenues Funding formulas provide funding to the Severance Tax Distribution Account ahead of other government functions Anticipated funding available for the 2017 projects WDA I = $35 million WDA II = $5.5 million WDA III = $155 million Agency is now receiving more applications for funding than in the past

12. Governor’s Water Strategy Fontenelle Reservoir Pursue Fontenelle Reservoir riprap project Increase active storage from 260KAF to 345KAF Wyoming currently has a contracts for 120,000 AF Wyoming’s interest in the project? To supplement system water (Drought mitigation) Now proceeding with a feasibility study

13. FONTENELLE RESERVOIR ALLOCATIONS Dam Crest Elev. 6519.0 Spillway Crest Elev. 6506 Active Capacity = 264,000 Acre-Feet Inactive Capacity = 80,796 Acre-Feet Riprap Bottom of Riprap Elev. 6460 Top of Dead Pool elev. 6408 Dead Pool Capacity = 563 Acre- Feet

14. Governor’s Water Strategy Glendo Reservoir Purpose: To better utilize flood pool waters Hydrology: 1 in 8 year occurrence 2015 - 64,000 AF stored in the flood pool Wyoming requested that 39,000 AF be retained in the flood pool until downstream irrigation demands came back on Corps of Engineer’s response? Now proceeding with a feasibility study Demonstrate reduced flooding risks after July 1 st Mitigate State Park facilities built in the flood pool

16. Thank You