8B

• Board Meeting Date: 1/22/2008
• Description: CWCB Legislative Priorities and Recommendations - Funding for Instream Flow Acquisitions
• Board Meetings - Doc Type: Memo

Discussion

There are two methods by which the CWCB could authorize the requested funding:

1. The first method of authorizing the requested funding is to establish an annual
appropriation of $1,000,000 from the Severance Tax Trust Fund Perpetual Base Account in the
manner set forth below.

Acquisitions ofwate.. fOl. instream flow use. (1) In addition to any other moneys
appropriated from the perpetual base account of the severance tax trust fund, created by section
39-29-109, c.R.S., up to one million dollars in the perpetual base account of the severance tax
trust fund are continuously appropriated annually to the Colorado water conservation board to
pay for the costs of acquiring water, water rights and interests in water in such amount as the
board determines is appropriate for stream flows or for natural surface water levels or volumes
for natural lakes to preserve or improve the natural environment to a reasonable degree.

(2) The Colorado water conservation board shall approve any expenditures of funds pursuant to
this section. The Board shall report to the general assembly regarding how such spending
authority was exercised by January 15 of the year following the year in which the expenditures
were made.

(This method is patterned on section 37-60-123.5, which appropriates funds annually for
agricultural emergency drought response).

2. The second method only would be used if the Severance Tax Trust Fund Perpetual Base
Account is merged into the Construction Fund. In that case, the following statutory revisions
would need to be made. First, the prohibition on use of Construction Fund money for water
acquisitions would be deleted:

37-92-102(3) Further recognizing the need to correlate the activities of mankind with some
reasonable preservation of the natural environment, the Colorado water conservation board is
hereby vested with the exclusive authority, on behalf of the people of the state of Colorado, to
appropriate in a manner consistent with sections 5 and 6 of article XVI of the state constitution,
such waters of natural streams and lakes as the board determines may be required for minimum
stream flows or for natural surface water levels or volumes for natural lakes to preserve the
natural environment to a reasonable degree. In the adjudication of water rights pursuant to this
article and other applicable law, no other person or entity shall be granted a decree adjudicating a
right to water or interests in water for in stream flows in a stream channel between specific
points, or for natural surface water levels or volumes for natural lakes, for any purpose
whatsoever. The board also may acquire, by grant, purchase, donation, bequest, devise, lease,
exchange, or other contractual agreement, from or with any person, including any governmental
entity, such water, water rights, or interests in water in such amount as the board determines is
appropriate for stream flows or for natural surface water levels or volumes for natural lakes to
preserve or improve the natural environment to a reasonable degree. At the request of any
person, including any governmental entity, the board shall determine in a timely manner, not to
exceed one hundred twenty days unless further time is granted by the requesting person or entity,
what terms and conditions it will accept in a contract or agreement for such acquisition. Any
contract or agreement executed between the board and any person or governmental entity that
provides water, water rights, or interests in water to the board shall be enforceable by either party

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