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<br />Characterization of Smart Supply and Smart Storage <br /> <br />It is generally acknowledged that Colorado's continuing economic growth and <br />development will cause growing demands for water supply system capacity. It is <br />therefore necessary to support the conservation, management and development of water <br />resources to meet these demands in a manner that fully integrates enviromnentaI and <br />recreational needs into the planning and development process. The lenns "Smart <br />Supply" and '~Smart Storage" -are used to identify water supply developments which have <br />been planned and undertaken accordingly;. <br /> <br />Smart Supply involves the construction of new water management facilities and increases <br />in diversions only after existing infrastructure and water management practices have been <br />carefully evaluated with respect to the maximization of their ability to supply water under <br />all appropriate conditions. <br /> <br />To be-considered as Smart Supply, a project should be a part of an integrated approach to <br />meeting water demands. This approach should encompass comprehensive analyses of <br />demand-side and supply-side management options through open and participatory <br />decision making process that identifies alternatives that address quality of life and <br />environmental issues. It is also important that planner consider all of the direct and <br />indirect costs and benefits of conservation, supply management, and new supply <br />development options, including scenarios that Combine and emphasize various options~ <br /> <br />Some of the larger water management organizations are undertaking an "Integrated <br />Resource Planning (IRP)" process to comprehensively identify future demands and <br />related supply needs and options.. IRP includes planning methods to identify the most <br />efficient means of achieving water supply goals while considering the costs of project <br />impacts on other community objectives and environmental management goals. This <br />planning method specifically requires evaluation of all benefits and costs, including <br />avoided costs.. If the IRP process is properly conducted, it is likely to lead to a "Smart <br />Supply'~ water system. <br /> <br />Smart Supply is based upon the following principles and objectives: <br /> <br />1 " Make full and efficient use of existing in-basin water supplies, and reusable return <br />flows before pursuing new or additional transmountain diversions. <br /> <br />2. Incorporate the flexibility necessary to allow for addition, alteration, deletion, <br />acceleration or delay of new water supply measures as needs and demands <br />materialize or fail to materialize. <br /> <br />3. Recognize impact of market forces on water reallocation from agricultural to <br />municipal uses, and mitigate adverse impacts of reallocation. <br />