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I. Introduction A provision of the Water Conservation Act of 1991, HB 91-1154, directed the Colorado Water Conservation Board (the "Board" or "CWCB") to "conduct an analysis of water salvage which may result from federal programs, including salinity control, and report its findings to the General Assembly by January I, 1992." Section 37-60-106,5, c.R.S, This report presents the analysis conducted by the Board and the findings are hereby transmitted in fulfillment of the initial obligation to report to the General Assembly, Since HB 91-1154 did not contain specific instructions concerning the scope of the analysis, this report assumes the General Assembly was interested in a broad overview, CWCB anticipates that the General Assembly may seek additional follow up information after reviewing this report and would welcome an opportunity to work further on the complex issues raised by efforts to salvage irrigation water and more generally improve the efficiency of water use in Colorado, Staff initially focused the analysis on recent proposals (HB 91-1110, SB 86-126; see Appendix A.) brought before the General Assembly to modify or clarify the law regarding irrigation efficiency improvements, Those proposals sought to recognize or create a transferable water right based on reduced irrigation water use, It was believed that such a right would provide an incentive for existing users to improve the efficiency of their systems, Comparing between the bills highlighted a key problem in irrigation efficiency improvement proposals, namely whether a credit to the original appropriator should be based on reductions in historical consumptive use, or the larger volume of water represented by changes in diversion rates, Following initial discussions, the Board decided to expand the scope of the analysis to include a variety of activities being considered that might better conserve and manage the quality and quantity of surface and groundwater water available for current and future use statewide in Colorado, If specific rights to salvaged or saved water are to be recognized or created a balancing of complex factors must be undertaken, Accordingly, this analysis considers water salvage within the context of better use of scarce water resources and presents the interrelated technical, legal, and environmental issues that must be weighed, The Board understood that an underlying reason for the General Assembly's request was a concern with the water development issues arising on the Colorado River near Grand Junction which HB 91-1110 sought in part to address. The Board recognized that competing demands for Colorado River water and the current activities of the Federal Salinity Control Program in the Grand Valley had created a SItuation requiring closer examination, Thus a second report has been prepared, addressing salvage potentials and water supply options in the Grand Valley. That supplemental report presents water salvage issues in a more concrete setting, and may lead to discussions of a negotiated solution to that particular situation, bj247b.ana 1