Final Draft ALP Marketing Supply and Demand Study

A -LP Water 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 needs, such as for environmental purposes, that would protect M &I uses in the future may be
identified during discussions between the State and the Tribes. There may or may not be a need for
separate accounts in all situations.
5.2 Municipal Water Supply Purchaser's Assistance Program to Assist
CWCB in Marketing State's A -LP Water
The purpose of this section is to identify financial assistance programs available to help increase the use
of the State's A -LP water for M &I purposes with a focus on those new potential M &I uses identified in
Section 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 potential buyers of A -LP Project water for M &I purposes to fund /finance the capital expenses
associated with:
1. Diverting/pumping and conveying the A -LP water to a water treatment facility.
2. Developing necessary municipal water treatment facilities to treat the A -LP Project water for M &I
purposes.
3. Developing necessary distribution facilities.
Programs available to assist with Diverting, Pumping, Treating and Conveying/Distributing the State's A-
LP Project water are as follows:
Colorado 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 CWCB Water Project Loan Program
This Program provides low interest loans to agricultural, municipal and commercial borrowers for the
design and construction of raw water projects in Colorado. Any private or public entity that can establish
and document 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.
• Severance Tax Trust Fund Operational Account Grant
This account provides grants for regional water resource planning studies and associated demonstration
projects. The projects supported by this account must promote natural resource planning, management
and development 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 funding levels for this program average around $1.3 million annually.
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FINAL ALP Report1_13_11_LL. Dorx