BOARD00543

• Board Meeting Date: 7/28/2003
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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facing the greatest potential risk in the next 25 years, evaluate the most effective ways of
addressing water supply challenges, and recommend cooperative planning approaches and tools
that have the most likelihood of success. President Bush's FY 2004 budget calls for an initial
investment of $ I I million for these efforts.

The tools the Secretary said should be used to solve problems include: technical expertise,
facilitation support, water conservation and efficiency, voluntary water transfers, removing
institutional barriers and increasing interagency cooperation. She also said that some federal
facilities have excess capacity at times that could be used to satisfy unmet demands elsewhere.
This unused capacity is sometimes not available due to policy or legal constraints.

In a videotaped message, Department of Agriculture Secretary Ann Veneman described the
importance ofirrigated agriculture, noting that while representing only 16% of the cropland, it
accounts for 50% of crop value and almost all of the country's fruits and vegetables. She added
Farm Bill programs provide unique tools and flexibility to promotes good stewardship and "help
find solutions to water scarcity." She declared USDA is committed to the goals of Water 2025.

Following Secretary Veneman's video, USDA Undersecretary for Natural Resources, Mark Rey,
spoke. He reiterated the importance of irrigated agriculture and promised USDA would help
address water problems. He mentioned the Environmental Quality Incentives Program and
groundwater and surface water conservation program, Conservation Reserve Program
enhancements, the Emergency Conservation Program, water and waste disposal loans,
emergency rural water assistance, and data gathering and research activities -- including the work
of the National Water and Climate Center under the Natural Resources Conservation Service
(NRCS) and its snow survey and soil moisture monitoring networks.

Bennett Raley introduced the morning panel of speakers which included: New Mexico Attorney
General Patricia Madrid; WSWC Chairman Karl Dreher; Greg Walcher, Executive Director of
the Colorado Department of Natural Resources; Ron Gastelum, CEO and President ofthe
Metropolitan Water District of Southern California (MWD); and Chips Barry, Manager, Denver
Water.

Greg Walcher stated that Colorado has a great deal at stake in working with the federal
government in providing water, and described success stories and new developing relationships.
A recent Black Canyon ofthe Gunnison agreement demonstrates that "...you don't have to walk
all over state water rights," to meet federal environmental needs. The Animas-La Plata Project is
finally under construction, and though long delayed, will help meet the needs of Ute Indians in
southeastern Colorado, while providing non-Indian users certainty. Colorado can also see the
"light at the end of the tunnel," moving towards federal recovery goals for endangered Colorado
fishes. With the development of California's 4.4 Plan, Colorado River waters will be better
managed to meet interstate needs. The states are not "waiting around" for federal agencies to act
on water issues. Colorado has a statewide water development program and is modernizing its
water laws, redefining beneficial use, encouraging voluntary temporary water transfers to help
mitigate drought, and authorizing interruptible water supply contracts to allow cities to get the
water they need while protecting the future of Colorado's farming economy.

Colorado Governor Bill Owens addressed those assembled over lunch, declaring, "Water has
always defined the future of Colorado and the West." While Colorado faces its worst drought hi
350 years, there is a silver lining, as it has generated the political support necessary to make
some tough decisions and "forced us to once again recognize the importance of water.... " He