BOARD00262

• Board Meeting Date: 1/24/2006
• Description: WSP Section - Species Conservation Trust Fund
• Board Meetings - Doc Type: Memo

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Agenda Item 13, Native Species Conservation Trust Fund Recommendations
January 24-25, 2006 Board Meeting
Page 3 of5

. Removal and regulation of non-native fish in critical habitat and the development of new habitat
such as floodplain ponds;
. Providing and protecting flows;
· Landowner incentives to manage ponds for native species (e.g. through leases or short-tenn
payments);
. Propagation and stocking of native fish;
. Construction of fish passage; and
· Screening and benning of ponds and canals to prevent non-native fish escapement or native fish
entrapment.

Funding from the SCTF leverages additional funds from Reclamation, the states of Wyoming,
Utah and New Mexico, and Federal power revenues pursuant to the Long-tenn funding legislation
contained in Public Laws 106-392 and 107-375 and which funding will hopefully be increased with
the passage ofS.1578 and H.R. 3153. These cost share funds may be provided to and managed for
the Recovery Programs by the National Fish and Wildlife Foundation.

Several major projects are scheduled this fiscal year, including fish passage at the old Price-
Stubb diversion, completion of fish screening on the Redlands Canal and completion of fish
screening and passage for the Grand Valley Project. Also, construction of the Elkhead Reservoir
enlargement will continue. A portion (5,000 AF pennanent and 2,000 AF by lease) of the increased
Elkhead storage (approximately 11,750 AF in total) will benefit the Upper Colorado Endangered
Species Recovery Program. Funding sources for the Elkhead enlargement include up to $9,159,532
from the UCRIP. Colorado will provide its remaining UCRIP cost share, which is estimated to be
approximately $6.3 million, from the SCTF capital account directly to the CRWCD for the
enlargement of Elkhead Reservoir. The CRWCD has requested a CWCB mitigation account grant
of approximately $1.0 million, which if approved, would count, at least in part, towards fulfillment
of Colorado's cost share obligations as well.

1. Platte River Cooperative Agreement (CA): $5,000,000 ($3,150,000 to CA capital and
$1,850,000 to CA O&M)

The state will have a multi-million dollar obligation under the CA, which is expected to go into
effect in October 2006. The recovery program developed under the CA will ultimately serve as the
"reasonable and prudent alternative" under the Endangered Species Act for water use and
development in the South Platte basin while promoting the conservation and recovery of
downstream endangered bird and fish species. The funding request for FY06-07 is $5,000,000,
Colorado's cost share contribution for the first program increment (I3-years) is estimated to be
$24,000,000 (in 2005 dollars) or $1.85 million per year. However, many of the activities of the
Program occur in the beginning ofthe program. For example, land acquisition is expected to occur
within the first five years ofthe program, at an estimated cost of $23,000,000. The land acquisition
program operates under a "willing seller, willing buyer" concept; therefore, the program must be
able to act on short notice when an opportunity arises. In addition, many of the monitoring and
research activities will require substantial capital and operating expenditures in the first few years.
Wyoming is planning to pay its entire $6,000,000 at the outset and deposit it with the Nebraska
Community Foundation. Thus, Wyoming will not be required to adjust its cash contribution
upwards to account for inflation. The earlier Colorado pays its cost share, the less the overall costs
Colorado may experience due to inflation. While it is unknown at this time how much of this money

Flood Protection. Water Project Planning and Financing. Stream and Lake Protection
Water Supply Protection. Conservation Plaruting