Agenda Items 7a and 7b, 2007 Board Meeting

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-2- : program in ternis of monetary, water, and land contributions will be shared equally by the United States and the three States (50% federal/50% Scates). • hederal autlioi-izing legislation is being advanced in Washington D.C., and Senator Ben Nelson introduced Senate Bill 07-752 on Friday, IViarch 2, 2007. Senator Salazar, Senator Hagel and , Senator Al(ard are all co-sponsors of this le-gislation. We are expecting Rep. Udall to introduce cumpanion legislation in the House within the next few weeks. This legislation would provide federal authorization for pai-ticipation in the Pragram. Federal legislation that will appropriate funds for the Program is being advanced as well. Colorado's Obliaations Colorado's obligations include money and water for implementation of the Program. Per Colorado's preference to pay cash, versus providing water, Colorado is responsible for $24 million. This money will be used to acquire and restore habitat for th.e target species, meet some of the water obligations of the Program, and to implement the IMRP and the AMP. Additional money will be necessary to satisfy some of Colorado's water obligations, as described below. With regard to Colorado's cash obligations, the General Assembly passed House Bill 1311 in 2006, which recapitalized the Species Conservation Trust Fund, and which authorized the expenditure of up to $5 million far the Platte River Program in fiscal year- 2006-07. Currentl:y, Rep. Curry is advancing House Bill 07-1182, which would dedicate $19 million over the next three fiscal years ($6 million in FY 07-08, $7 million in 08-09, and $7 million in 09-10) for satisfying Colorado's Program obligations. House Bill 07-1 182 received favorable recommendations fi-om the House Agriculture and House Finance Committees and it is awaiting a hearing before t:he Appropriations Committee after the new severance tax estimates are released in the third week of March. • Colorado's water obligations include: 1) 10,000 acre-feet annually to be retimed during times of target flow shortages by the end of year 4 of the Program (5,000 acre-feet by the end of year 2 of the Program) (often referred to as "Tamarack I"); and, 2) water to cover future depletions related to the South Platte River (depletions as of 1997 estab?ished the baseline), which is approximately 900 acre-feet/year of water per 100,000 additional people in the South Platte River Basin in Colorado, retimed during times of target flow shortages (often referred to as "Tamarack II"). Colorado's North Platte River Basin fiiture depletions plan are covered as existing uses. So long as the total irrigated acres are less than 134, 467 in Jackson County, the population in Jackson County remains less than 2022, and piscatorial, wildlife, and other enviranmental uses are incidental to irrigation uses, water uses are covered under the Program as existing uses in the North Platte River Basin in Colorado. With regard to Colorado's water obligations, the General Assembly has authorized approximately $2 million for drilling and operating wells and recharge pits to retime water at the Tamarack State VVildlife Area. This project is expected to net approximately 4200 acre-feet annually towards tNe 10,000 acre-feet annual requirement. Colorado will need additional water projects and money to fiilly satisfy our 10,000 acre-feet ailnual obligation, as well as the fiiture depletions obligation associated with growth in the South Platte River Basin within Colorado. A new non-profit organization has been formed to help satisfy the State's Program responsibilities, to the extent that the State is unable to fully meet these obligations. This organization is called the South Platte Water Related Activities Program ("SPWRAP"). In the f-all of 2006, the Department of • Natural Resotirces and SPWRAP signed an MOU to define responsibilities and roles regarding the Ftood Prnterctioii • Water Project Plaiuling eund Financing • Stream and Lake Protection Water Suppty Prc,tecti.on • Conservation Plaiuiing