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Alternative Agricultural Water Transfer Methods -Grant Application Form <br />January 2008 <br />Solutions, water resources consultant to PWSD, and by Mr. Robert F.T. Krassa, water attorney to PWSD. While the <br />components of the water rights transfer are an integral part of this overall project, funds for that component of the <br />work are not being sought through this grant application. Funds are sought solely for the technical research and the <br />economic and institutional analyses being conducted by CSU. However, data collection efforts will be continually <br />focused throughout the study on the issues of being able to quantify historic consumptive use savings, and on making <br />the process one that can be administered by the State Engineer's Office. Mr. Lytle and Mr. Krassa are very <br />experienced in Water Court proceedings and understand what is needed to successfully adjudicate a change of use. <br />Therefore, this study will encompass all aspects of the elements of a water rights transfer. First, the necessary <br />data will be collected to evaluate the applicability of various innovative irrigation practices that will make water <br />available for urban interests while not harming rural communities, and to quantify what are these water volumes. <br />Second, economic evaluations will identify potential entities that are interested in leasing/selling water rights, as well <br />as the strategies for institutionally structuring these water deals. Third, the study will be guided such that the necessary <br />data are collected that allow the consumptive use savings to be supported in Water Court. Fourth, the water delivery <br />system from the rural areas of historic use to the municipal end use areas will be designed and costed at a pre- <br />feasibility level. At the completion of this study PWSD expects to have a roadmap for the actual transfer of water from <br />the agricultural sector to the municipal sector. <br />d) If grant monies are proposed for use for legal assistance then the use of those funds shall be <br />oriented toward advancing the knowledge of alternative agricultural water transfer methods and <br />techniques; not for preparation of a specific water court case. The total requested funds for legal <br />assistance shall not exceed 40 percent of the total grant request. In addition, grant monies <br />proposed for use for legal assistance must be used to collaboratively address issues and concerns <br />related to agricultural water transfer. Funds shall not be used to solely advance the cause of the <br />project proponents. <br />There is no part of this grant request that will be used for legal fees (see Part B, Section 4.c)). <br />e) A minimum of a 10 percent cash match of total project cost (past expenditures and "in kind" can <br />not be counted toward the 10 percent match). <br />The PWSD has currently spent $539,650 (as of June 30, 2008) for direct and indirect costs associated with the <br />work being conducted by CSU, for the purchase and installation of equipment to facilitate the research, and for fees to <br />Lytle Water Solutions. However, PWSD recognizes that monies spent to date do not qualify as match relative to this <br />grant. Therefore, PWSD is committed to a 10 percent match of the $250,000 grant request ($25,000). On each invoice <br />that is submitted to the CWCB, PWSD will identify the match being contributed during that invoicing period and will <br />submit back-up invoices to support the claim for matching funds. <br />13