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C150224 contract docs
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7/2/2010 2:01:55 PM
Creation date
6/30/2010 12:02:10 PM
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Loan Projects
Contract/PO #
C150224
Contractor Name
Logan Well Users, Inc.
Contract Type
Grant
Loan Projects - Doc Type
Contract Documents
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Page 2 <br />segregated by the fiscal calendar. The Program is also administered differently in different river <br />basins, depending on the impact of the drought in a particular basin and the needs of water users. <br />In applying appropriations retroactively, the Department has relied on an informa12003 opinion <br />from Steve Simms ("Simms Opinion"), former Senior Water Counsel in the Natural Resources & <br />Environment Section of the AG's Office. The Simms Opinion found that well augmentation <br />groups could be reimbursed for money subsequently paid to senior reservoir companies on the <br />South Platte under the emergency drought provision because the financial obligations owed to <br />the senior reservoirs were a direct result of the 2002 drought. The Simms Opinion is not, <br />however, directly on point as it relates to the types of reimbursements covered by the emergency <br />drought provision and not whether current appropriations may be utilized for prior year's <br />designations. <br />Section 37-60-123.5, C.R.S. does not expressly restrict the use of retroactive appropriations but <br />the language is vague regarding how the appropriations are to be administered on a continuous <br />basis. Because drought designations do not necessarily coincide with the fiscal year calendar, <br />and because the impact of drought varies widely in different river basins, a flexible interpretation <br />of the statute is both practical and necessary to achieve the purpose of Program. As this issue has <br />been raised a number of times in recent years by both the State Controller's Office and the AG's <br />office, the Department should probably seek to amend the statute to expressly authorize the use <br />of current appropriations for past designations. <br />Another consideration is the current language in the Agricultural Emergency Drought Response <br />Grant Guidelines ("Ag Grant Guidelines") which could be interpreted to restrict the use of <br />current appropriations for prior drought year designations. The Guidelines state: "[i]t is expected <br />that $1,000,000 in loan and grant funds will be available for any fiscal year in which a drought is <br />declared in the State of Colorado." This sentence links the use of the $1 million to the year in <br />which the drought has been declared. However, since the Committee itself devised the <br />Guidelines to establish and streamline the procedures for disbursing grant monies for emergency <br />drought assistance, the Committee could revise the Guidelines to address the use of retroactive <br />appropriations. <br />The Cominittee should therefore consider revising both the statutory language in section 37-60- <br />123.5, C.R.S. and the Ag Grant Guidelines so that grant monies can continue to be disbursed in a <br />way that facilitates the practical goals of the Program. <br />cc: Casey Sphall, Deputy Attorney General <br />AG File: aggrantmemo <br />1 Ag Grant Guidelines, at 1¶ 2. <br />
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