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.. · The added requirement to address "new or adjustments to existing, instream . flow water rights that assist in meeting existing and reasonably foreseeable environmental and other nonconsumptive water needs" in the Boards' comments on the local planning work (page 5, line 26); · The incorporation of a "needs test" with respect to future transbasin diversions (page 7, lines 22-26); and · The emphasis on water quality (page 4 line 18) and the reference to federal law (page 5 line 23). The DNR submitted a fiscal analysis of this proposal based upon discussions between Hal Simpson and myself. Our estimate is that each agency may need one new employee for each year and that the total cost for fiscal year 1999-2000 will be approximately $228,000. For FY 2000-2001, we estimate a budget of $452,000. We derived these estimates based on the assumptions that there would be approximately 12 local basin planning groups and that each would need to meet approximately 6 times per year. We contemplate hiring a local consultant (potentially, one for each local group) to facilitate these meetings and a consultant in year 2 for the integration of these local planning group products (approximately 2,000 hours of assistance) into a single report to the Colorado General Assembly. Although it isn't clear from the attached bill, Representative Smith is proposing that these costs would be funded from the CWCB's 5% annual share of the Severance Tax Operational Account funds. If this bill is approved, we will want to structure our participation very carefully, so that: · the planning efforts primarily reflect local interests, not state agency proposals) and · the State Engineer's regulatory responsibilities are not compromised as the planning efforts mature into proposed projects and mitigation measures we can advocate. Representative Smith has clearly indicated that he wants the CWCB to have "lots of latitude" in the establishment of the local basin planning groups, but the extent to which they may require financial and technical assistance is still unclear. Some expect that these local planning group efforts will be highly technical, requiring extensive engineering support, while others expect these efforts will be conducted at a "reconnaissance level," that will not require much assistance beyond access to and evaluation of existing information. This is appears to be the single piece of legislation in the 1999 session that could have the greatest impact on CWCB responsibilities and workload priorities. Therefore, I will invite Representative Smith and Senator Dennis to attend and participate in our discussion on January 28th. Attachments cc: Representative Smith, Senator Dennis, Water Steering Committee L:/boardmemlJan99/19c . .