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Recreational In- Channel Diversions Cynthia F. Covell, Es . <br />other hand, transmountain diverters feared that headwater communities could develop whitewater courses and <br />stop transmountain diversions. Others feared that the U.S. Forest Service could use recreational water rights to <br />achieve the bypass flows it had been working so hard to obtain in the face of strong opposition by local interests. <br />Fears were even expressed that other states such as Nevada and California could establish large whitewater <br />courses near the state line, thereby calling water out of the state entirely and risking the loss of Colorado's ability <br />to develop its compact entitlements. <br />In this atmosphere of uncertainty, the General Assembly was asked in the spring of 2001 to consider <br />limits on recreational in- channel diversions. Senate Bill 216 was designed to address these concerns by defining <br />"recreational in- channel diversions," limiting the type of entity that can appropriate such rights, and requiring the <br />CWCB to make certain findings about the appropriation before water court approval of a recreational in- channel <br />diversion. Opponents of the legislation argued that under Fort Collins, a recreational in- channel water right is <br />and should be a water right like any other, and should not be subject procedures not required to obtain other <br />water rights: They also pointed out that recreation is an enormous industry in Colorado, and the water rights <br />needed to support it should not be unduly burdened. <br />The General Assembly passed Senate Bill 216 on the final day of the regular legislative session, and the <br />Governor signed it on June 5, 2001.' Senate Bill 216 defines "recreational in- channel diversions" and sets out <br />procedures for their appropriation. A "recreational in- channel diversion means "the minimum stream flow as it is <br />diverted, captured, controlled, and placed to beneficial use between specific points defined by physical control <br />structures..." Recreational in- channel water rights can only be appropriated by local governmental entities and <br />conditional water rights may not be changed to recreational in- channel diversion purposes. <br />Senate Bill 216 mandates an approval procedure not required for other water rights. Applications for. <br />recreational in- channel diversions filed on or after January 1, 2001 must, within 30 days of filing, be submitted <br />by the applicant to the CWCB for its review. The CWCB must hold a hearing if requested by any party, and <br />make findings of fact and a final recommendation as to whether the application should be granted, granted with <br />conditions, or denied. The CWCB's findings of fact are presumptively valid as to such facts in the water court, <br />subject to rebuttal by any party. <br />The CWCB-and the water court must apply certain factors to evaluate a recreational in- channel diversion. <br />These include (1) whether the adjudication and administration of the recreational in- channel diversion would <br />impair the ability of Colorado to fully develop and place to consumptive beneficial use its compact entitlements; <br />(2) the appropriate reach of stream for the intended use; (3) whether there is access for the recreational in- channel <br />use; (4) whether exercise of the recreational in- channel diversion would cause material injury to instream flow <br />rights appropriated by the CWCB; (5) whether adjudication and administration of the recreational in- channel <br />diversion would promote maximum utilization of the waters of the state, and (6) "such other factors as may be <br />determined appropriate for evaluation of recreational in- channel diversions as set forth in rules adopted by the <br />CWCB after public notice and comment." C.R.S. § 37- 92- 102(6)(b). <br />Rules Implementing S.B. 216 <br />During the summer and fall of 2001, the CWCB developed proposed rules for implementing S.B. 216. <br />The CWCB solicited public comment, and final rules were adopted November 8, 2001. A copy is attached. The <br />rules attempt to give the CWCB guidance in the application of the statutory factors it is to consider in <br />1 S.B. 216 is largely codified at C.R.S. § 37- 92- 102(5) and (6) (2001), but changes were also <br />made to the definitions of beneficial use and diversion in C.R.S. § 37 -92 -103 (2001), and the definition of <br />"recreational in- channel diversion" was added to that section. Finally, the pre- adjudication procedure <br />before the CWCB is.described in C.R.S. § 37 -92- 305(13) - (16) (2001). <br />