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SWSI Major Findings I. Significant increases in Colorado's population-together with agricultural water needs and an increased focus on rec~eation and environmental uses will intensify competition for water. 2. Projects and water managemept processes that local municipal and industrial (M&I) providers are implementing or planning to implement have the ability to meet about I 80 percent of Colorado's M&I water needs through 2030. 3. To the extent that these identified M&I projects are not successfully implemented, Colorado will see a significantly greater reduction in irrigated agricultural lands as M&I water providers seek additional permanent transfers of agricultural water rights to provide for the demands that would otherwise have been met by specific projects and processes. 4. Supplies are not necessarily where demands are; localized shortages exist, especially in headwater areas, and compact entitlements in some basins are not fully utilized. 5. Increased reliance on nonrenewable, nontributary groundwater for permanent water supply brings serious reliable and sustainability concerns in some areas, particularly along the Front Range. 6. In-basin solutions can help re~olve the remaining 20 percent gap between M&I water supply and demand, but there ~ill be tradeoffs and impacts on other users-especially agriculture and the environment. 7. Water conservation (beyond Levell) will be relied upon as a major tool for meeting future M&I demands, but con~ervation alone cannot meet all of Colorado's future M&I needs. Significant water; conservation has already occurred in many areas. 8. Environmental and recreational uses of water are expected to increase with population growth. These uses help support Colorado's tourism industry, provide recreational and environmental benefits for our citizens, and are an important industry in many parts of the state. Without a mechanism to fund environmental and recreational enhancement bey<;md the project mitigation measures required by law, conflicts among M&I, agricult,ure, recreational, and environmental users could intensify . 9. The ability of smaller, rural water providers and agricultural water users to adequately address their existing and future water needs is significantly affected by their financial abilities. 10. While SWSI evaluated water needs and solutions through 2030, very few M&I providers have identified supp1ies beyond 2030. Beyond 2030, growing demands may require more aggressive s,olutions. I Water Supply Reserve Account Criteria and Guidelines - Adopted: October 18,2006 2 of 16