Water Supply and Demand Study 1/13/11

A -LP Waler Animas -La Plata Water Marketing Supply and Demand Study
Section 5
to increase the corpus of the Variable OM &R fund, or perhaps used to pay fixed OM &R costs for
the Tribes if appropriate.
b. The lease could be structured in an "if and when" format. If and when the need for water for
compact compliance purposes occurs a Colorado water user would have an agreement with the
Ute Tribes (perhaps a first right of refusal) and pay a certain rate for leasing the water at the time
curtailments become necessary.
c. The Tribes could lease or sell water back to the State at certain times or in certain increments.
Other eds, such as for environmental purposes, that would protect M &I uses. in the future may be
identif d during discussions between the State and the Tribes. There may or may not be a need for
separa a accounts in all situations.
5.2 unicipal Water Supply Purchaser's Assistance Program to Assist
WCB in Marketing State's A -LP Water
The pui pose of this section is to identify financial assistance programs available to help increase the use
of the 11 tate's A -LP water for M &I purposes with a focus on those new potential M &I uses identified in
Sectio 3.2.1. Some of these strategies may be of assistance even if all or a portion of the State's A -LP
Project water reverts to the two Colorado Ute Tribes (see Section 5.1). The marketing strategy is to
assist r otential buyers of ALP Project water for M &I purposes to fund /finance the capital expenses
associz ted with:
1. Diverting/pumping and conveying the A -LP water to a water treatment facility.
2. De eloping necessary municipal water treatment facilities to treat the A -LP Project water for M &I
pur oses.
3. De eloping necessary distribution facilities.
Prograr is available to assist with Diverting, Pumping, Treating and Conveying/Distributing the State's A-
LP Project water are as follows:
Colora Jo Water Conservation Board (CWCB) Programs
Funding is available from the CWCB in several ways and additional information on all of them is available
on the CWCB website at http:/ /cwcb.state.co.us
• The '.WCB Water Project Loan Program
This Pr gram provides low interest loans to agricultural, municipal and commercial borrowers for the
design nd construction of raw water projects in Colorado. Any private or public entity that can establish
and do ument a need for the project may apply. Eligible Projects include new construction or rehabilita-
tion of existing raw water storage and delivery facilities. Annual funding levels for this program are
around 30 million.
• Sev range Tax Trust Fund Operational Account Grant
This ac ount provides grants for regional water resource planning studies and associated demonstration
project . The projects supported by this account must promote natural resource planning, management
and de elopment related to minerals, energy, geology and water. Any private or public entity that can
contract with the State and that can establish and document a need for a project may apply. The study
or demonstration project must show a benefit to a wide range of people and /or a large geographic area.
Annual , 'unding levels for this program average around $1.3 million annually.
5 -2
FINAL ALP Rtport_1_13_11_LL.Don