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  <br /> Interstate Compact Compliance • Watershed Protection • Flood Planning & Mitigation • Stream & Lake Protection <br />Water Project Loans & Grants • Water Modeling • Conservation & Drought Planning • Water Supply Planning  <br /> <br /> <br /> <br /> <br /> <br />TO: Colorado Water Conservation Board Members <br /> <br />FROM: Alexander Funk, Agricultural Water Resources Specialist <br /> <br />DATE: March 6, 2019 <br /> <br />AGENDA ITEM: 30. Colorado Springs Utilities Fallowing-Leasing Pilot Project Proposal <br /> <br /> <br />Background: <br /> <br />The Lower Arkansas Valley Super Ditch Company, Inc. (the “Super Ditch”) and the City of <br />Colorado Springs, acting by and through its enterprise Colorado Springs Utilities (“CS-U”), <br />(collectively “Applicants” formally submitted a fallowing-leasing pilot proposal for selection <br />by the Board on November 16th, 2018. <br /> <br />The proposal falls under the auspices of HB13-1248 and the Criteria and Guidelines for <br />Fallowing-Leasing Pilot Projects (“Criteria and Guidelines”), approved as amended by the <br />Board at its January 2016 meeting. HB13-1248 authorizes the Board to administer a pilot <br />program to test the efficacy of fallowing-leasing as an alternative to permanent agricultural <br />dry-up and is a critical component of the state’s efforts in implementing Colorado’s Water <br />Plan. <br /> <br />The Applicants seek selection of the proposed Colorado Springs Utilities Pilot Project (“CS-U <br />Pilot Project”) by the Board. The Applicants developed the CS-U Pilot Project to demonstrate <br />the viability of the fallowing-leasing concept on a larger scale, and to provide water to CS-U <br />for drought recovery without the need for permanent dry-up of irrigated agriculture, which <br />can cause significant economic hardship for rural communities. The proposal is limited to the <br />transfer of certain shares in the Catlin Canal Company ("Catlin") for temporary use by CS-U. <br />Limiting the proposal to Catlin shares is a change from the initial proposal received by CWCB <br />which also included Fort Lyon Canal Company ("Fort Lyon") and Rocky Ford High Line Canal <br />Company ("High Line"). The applicants plan to continue conversations with the respective <br />boards and shareholders of both entities and give them additional time to discuss future ATM <br />opportunities internally. <br /> <br />Discussion: <br /> <br />The Criteria and Guidelines establish a four-step process for pilot project selection and <br />approval by the Board, in consultation with the State Engineer and the public. First, to be <br />considered for selection, applicants must submit a pilot project proposal to the Board. The <br />purpose of the proposal is to provide the Board and other interested stakeholders with notice <br />and a general description of the proposed pilot project, the land to be fallowed, the proposed <br />use, and other information specified in the Section II.F. of the Criteria and Guidelines. This <br />information includes the proposed specific water rights and the lands and parcels that will be <br />analyzed and dried up as part of the pilot project and other information providing an initial <br />overview of the proposed pilot project’s components. The submittal for selection does not <br />1313 Sherman Street <br />Denver, CO 80203 <br /> <br />P (303) 866-3441 <br />F (303) 866-4474 <br /> <br />Jared Polis, Governor <br /> <br />Dan Gibbs, DNR Executive Director <br /> <br />Rebecca Mitchell, CWCB Director