1. Colorado’s Grant Program to Explore Alternative Water Transfer Methods Todd Doherty Colorado Water Conservation Board Colorado Water Workshop July 21, 2010

2. Introduction Colorado’s Conundrum:  Increasing Water Demands  Static or Decreasing Water Supplies  Limited New Water Development

3. M&I Gap – Low Scenario

4. M&I Gap – Medium Scenario

5. M&I Gap – High Scenario

6. 35,000 to 73,000 acres 51,000 acres 77,000 acres 21,000 to 28,000 acres 180,000 to 267,000 acres 7,000 to 13,000 acres 83,000 to 84,000 acres 18,000acres 66,000 acres 2050 Changes in Irrigated Acres Statewide Total: 504,000 to 718,00 acres 15 to 20 percent

7. ATM Grant Program  $1.5 Million Authorized by CO State Legislature in 2007  Focused on South Platte River and Arkansas River  Goals – Protect property rights yet provide alternatives to buy and dry  Promote relationships between irrigators and cities  Additional $1.5 million Authorized this year.

8. Areas of Investigation  Administrative/Legal/Verification Issues  Institutional Issues  Technical/Engineering analysis  Economics  Social Issues  Water Quality Issues

9. Considerations/Findings  High transaction costs may be a barrier to healthy leasing market (i.e. bulletin board).  Streamline/equalize water court transaction costs (potential legislative changes).  Certainty remains an issue (WISE Concept).  Cost vs. supply certainty for municipalities purchasing water via alternative agricultural transfers (need incentives)  Management costs can be high.

10. Alternative Transfer Methods Products  WISE Water Market Concept  Lower South Platte Co-op  FRICO Water Sharing  Super Ditch  Parker/CSU Deficit Irrigation

11. Considerations Tipping points/thresholds to maintain viable agricultural economics/communities  Incentives necessary?  Legislative changes necessary?  Water Court test case necessary?

12. Alternative Transfer Methods Next Steps Potential Legislative Concepts:  Presumptive historical crop consumptive use procedures  Canal or ditch systemwide historical consumptive use analysis  Transfer of a portion of consumptive use  Findings incorporated into update of Statewide Water Needs Assessment (November 2010).  CWCB may consider new grants in January 2010

13. End of Presentation Questions? Todd Doherty, CWCB Todd.doherty@state.co.us (303) 866-3441 x 3210