BOARD00035 ‎(2)‎

• Board Meeting Date: 9/20/2006
• Description: IWM & D Section - Water Supply Reserve Account - Draft Criteria and Guidelines
• Board Meetings - Doc Type: Memo

Century Act" (House Bill 05-1177) which in part established permanent water
roundtables in 8 river basins and the Denver metro area. Throughout these two efforts
there has been a clear recognition of the need for financial assistance to address water
challenges in our state. It was recognized that a new program would be needed to assist
all water users in addressing their critical water supply issues and interests. This
recognition led to the passage of Senate Bill 06-179.

Senate Bill 06-179 adopted by the 2006 General Assembly, created the Water Supply
Reserve Account (Account). The legislation directs the State Treasurer to annually
transfer ten million dollars from the Operational Account of the Severance Tax Trust
Fund to the Account. The effective date of the legislation is July 1, 2006. Any balance
remaining in the Account at the end of any fiscal year shall remain in the Account; except
that the unencumbered and unexpended balance of the Account shall revert to the
Operation Account of the Severance Tax Trust Fund on June 30, 2010.

As specified in the statute, the monies in the Account are continuously appropriated to
the CWCB for water activities identified in Section 39-29-109(1) (a) (III), C.R.S. The
legislation states that the CWCB, in consultation with the Interbasin Compact Committee
(!BCC) created in Section 37-75-105, c.R.S., shall jointly establish criteria and
guidelines for allocating moneys by loan or grant from the Account. This document
establishes the criteria and guidelines developed jointly by the IBCC and the CWCB
which will be used by the CWCB to allocate funds from the Account. Amendments to
this document may be proposed at any time by either the IBCC or the CWCB and shall
be effective after an annual program review each October and subsequent approval by
both bodies.

Introduction

Applications will be accepted for grants or loans and these criteria and guidelines are for
both grants and loans. These criteria and guidelines do not distinguish or establish
preference for allocating money for grants versus loans. In all cases the merits of the
water activity itself will be the basis for eligibility and evaluation. It is the goal of the
CWCB and IBCC to ensure wise and effective use of monies from the Account

In regard to loans, the CWCB utilizing these jointly developed criteria and guidelines will
allocate 0% interest loans from the Account AND offer a match to these loans with low
interest loans (at or below the rate of inflation) from the CWCB perpetual base account.

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Final Draft

July 12,2006
Rev. 1 July 17,2006; Rev.2 July 31,2006; Rev. 3 August 4,2006;
Rev. 4 August 9, 2006; Rev. 5 September 15, 2006; Rev. 6 September 18,2006

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