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right and furthermore, are waters needed to help meet Colorado's future water needs. The <br />grant program is intended to further our understanding and potential implementation of <br />alternative transfer methods and to sustain agricultural areas of the state where they are <br />deemed to provide high values to our communities and the state as a whole. It is also <br />hoped that the grant program will improve our understanding of how and when <br />alternatives to traditional agricultural transfers may present benefits to not only the <br />parties to the transfer, but other third party beneficiaries. <br />As a key component to this grant program and to better understand alternatives to <br />traditional agricultural transfers it is important to establish the fundamental difference <br />between what some have called "inefficiencies in agriculture" and "reduced consumptive <br />use". Water that is diverted and applied to a crop generally can be partitioned into three <br />major components: <br />1. Consumptive Use (CU) -The quantity of water that is physiologically utilized by the <br />crop and is viewed as beneficial use of water. Generally speaking and in many instances <br />CU equates to the crops evapotranspiration (ET). <br />2. Gross or Total Diversion -The amount of water that is diverted to be delivered to the <br />crop. If this amount of water is greater then the crop consumptive use there may be <br />opportunities to reduce the gross diversions and resulting return flows which could in <br />some cases improve water availability for other uses and/or improve water quality; but in <br />other cases could cause injury to downstream water rights that rely on the return flow. <br />3. Nonbeneficial consumptive use - is the quantity of water that is lost from the system <br />and that is not used by the crop. Examples of nonbeneficial consumptive use include: <br />~ Evaporation not associated with crop CU <br />Deep percolation of water diverted from the source or applied to the lands via <br />irrigation methods that does not eventually return to the stream system as return <br />flov~-s <br />Water that consumed by other vegetation including non-native plants (high water <br />use plants known as phreatophytes are of particular interest). <br />This grant program focuses on identifying and assisting in the development of <br />agricultural transfer methods/programs that reduce consumptive use by reducing the <br />amount/types of crops planted and irrigated. It is this reduced consumptive use, not the <br />reduction in gross diversions (i.e., changes from flood irrigation to sprinkler irrigation <br />etc.) that can potentially be transferred to an alternate use. When considering alternative <br />methods for transferring agricultural water to a new use, one must understand that <br />someamount of land must be taken out of production and/or the amount and type of crop <br />be reduced or changed from historic levels. A goal of the alternative transfer is to <br />minimize the geographic focus of the impact and optimize both the agricultural and <br />nonagricultural benefits of the remaining lands. <br />Several types of agricultural transfers have been proposed as potential alternatives to the <br />traditional agricultural transfers that often result in permanent dry up of all or a large <br />3 of 6 <br />Draft <br />November 3, 2007 <br />