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<br />'w <br /> <br />(' <br /> <br />Page 2 of2 <br />CWCB Policy 18 <br />January 3, 2008 ( <br />eRD POLICY eONeERNS: <br />This policy and its related program effectively allow the CWCB to choose which projects it finances <br />through its traditional loan and grant programs and in which the state wants to be an "equity <br />partner," owning a portion of the project's water rights for any and all purposes. The CWCB's <br />printed materials concerning this policy speak to acquiring water rights for "compact calls, drought <br />mitigation, endangered species, minimum stream flow, river restoration, and recreation." However, <br />nothing in the adopted policy precludes the state from being a substantial "partner" in a <br />transmountain water project, including holding water rights for future, unspecified purposes evep. <br />transmountain diversions. Additionally, this policy raises the specter of the state requiring its <br />ownership in a project as a means of fulfilling its minimum instream flow rights even if those rights <br />are junior to the water rights of the project in question. <br /> , <br />I do not want to suggest that these worst case and suspicious scenarios are the motivation for any <br />of the CWCB board members or any CWCB staffer. However, it is a concern that the adopted <br />policy allows for these outcomes. <br />RECOMMENDATION: <br />The Board should direct staff to pursue amendment to the existing policy to either: <br />. Preclude the state from holding water rights for present or future consumptive uses, <br /> or <br /> Require inclusion of the "compensatory mitigation" language from the Conservancy <br /> District statute as a condition of the CWCB participating in any transbasin diversion C <br /> project. <br />. Further, CWCB amendment to the policy should precede any legislative proposal to <br /> implement the policy. <br />. And fmally, that any legislative proposal must comport with the amended policy. <br />Note: this recommendation does not address the possibility of the state using this program to require <br />projects meet the state's instream flow desires. <br /> -- ------- ----- - - -- -- --- - - -- -- ----- ----- <br /> -- --- - --..-- - - ---- - - - - <br /> ( <br /> - - - ~ - -- - -- <br /> 201 Centennial Street I PO Box 1120 * Glenwood Springs, CO 81602 <br /> (970) 945-8522 * (970) 945-8799 Fax <br /> www.ColoradoRiverDistrict.org <br />