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Alternative Agricultural Water Transfer Methods -Grant Application Form <br />January 2008 <br />3. Description of the Alternative Water Transfer Method <br />Please describe the type(s) of water transfers that will be examinedlutilized (i.e., conceived transfer <br />methods include, but are not limited to: 1) interruptible water supply agreements; 2) long-term <br />agricultural land fallowing; 3) water banks; 4) reduced consumptive use through efficiency or cropping <br />changes while maintaining historic return flows; and 5) purchase by end users with leaseback under <br />defined conditions). In addition, please describe how the transferable consumptive use will be calculated <br />and quantified, and how return flow patterns will be addressed/maintained. <br />It is anticipated that the water transfer will be a standard change of use proceeding in Division 1 Water Court. <br />As such, it is required that the transferable consumptive use be quantified and that historic return flow patterns be <br />replicated to the extent that the transfer will not cause injury to any downstream vested water rights. The transferable <br />consumptive use is expected to come from rotational fallowing of land, reduced crop irrigation techniques, changes in <br />cropping patterns, or a combination of the three methods. Transferable consumptive use will be calculated from the <br />research results, comparing the consumptive use under historic irrigation practices to the consumptive use employing <br />the innovative irrigation techniques developed through this research. The difference is the consumptive use that is <br />potentially transferable. <br />Since adoption of a consumptive use quantification process to allow innovative crop irrigation management is <br />paramount in the overall success of the study, CSU has proposed adding research and analysis in the field of remote <br />sensing to quantify consumptive use water savings. This will allow the possibility of continued irrigation of <br />agricultural lands while still making consumptive use water available for a change of use. Since CSU will be working <br />with data from both the South Platte and Arkansas River basins, including data generated from this study and other <br />studies, and we will also be working with the SEO as part of the Advisory Committee, the process may have statewide <br />applicability for change of use proceedings. <br />While the means to make transferrable water available is through a change of use proceeding in Water Court, <br />the transfer itself could be through long-term agricultural land fallowing, reduced consumptive use through efficiency <br />or cropping changes while maintaining historic return flows, and/or purchase by end users. Interruptible water supply <br />agreements likely will not be considered because of the long distances the water has to be transported and the need to <br />continuously provide water that municipal interests come to rely upon. However, there may be the possibility of <br />reduced water supply deliveries during droughts or increased payments to farmers to reduce irrigation more to <br />maintain municipal water supplies. <br />Institutional issues related to setting up the mechanism by which the water will be leased or purchased are not <br />defined at this time. However, there is the potential for long-term leasing and/or outright purchase of the water rights. <br />CSU is conducting surveys to evaluate the local acceptance of leasing versus purchasing water rights. Based on the <br />results of these surveys and other economic analyses to be conducted by CSU, P?VSD will evaluate institutional <br />methods that may be viable for this type of project. It is expected that, at the end of this project, an institutional <br />framework and the methodology by which the agricultural transfer will occur, will be fully developed and be ready to <br />be implemented. <br />4. Program/Project Eligibility <br />Please describe how the proposed program/project meets each of the following eligibility requirements <br />(please see Criteria and Guidelines for additional information regarding the alternative water transfer <br />methods/strategies that qualify for funding). Note: If these requirements are addressed in other parts of <br />11