Date: 02/24/2010
Final
Water and the Colorado Economy
COMMITTEE ON JOINT AGRICULTURE AND NATURAL RESOURCES
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07:34 AM
Senator Hodge, Chair of the Senate Agriculture and Natural Resources Committee, called the meeting to order. Roll call was not taken at this meeting because attendance is voluntary.
07:34 AM -- Front Range Water Council
Mark Pifher, Aurora Water, explained that the Front Range Water Council (FRWC) consists of major water providers along the Front Range, including Aurora Water, Colorado Springs Utilities, Denver Water, Northern Colorado Water Conservancy District, Southeastern Colorado Water Conservancy District, Pueblo Board of Water Works, and the Twin Lakes Reservoir and Canal Company. The FRWC commissioned Summit Economics and the Adams Group to conduct a study to identify the economic value of water; examine the economic interdependence of Colorado regions; and determine the economic contributions of Colorado's regions to the state's economy. This study, titled “Water and the Colorado Economy,” was released December 2009 (Attachment A).
07:38 AM
Tom Binnings, Summit Economics, explained that the study divided the state into five economic regions (Eastern Colorado, the Front Range, Central Colorado, San Luis Valley, and Western Colorado) and identified the role that seven basic industries play in each region (Attachment B). These industries include agriculture, mining, manufacturing, government, services, tourism, and household. It also examined the economic interdependence of each region with other regions and out of state economies. Mr. Binnings identified the sales of goods and services per acre foot of water withdrawn by each region. For example, the study determined that the Front Range generates $132,268 in goods and services from an acre-foot of water. In contrast, the San Luis Valley generated $1,209 per acre-foot of water, mostly from agricultural activities. He also responded to questions from the committee about how the study determined the amount of goods and services for each acre foot of water withdrawn by a region.
07:50 AM
Mr. Pifher and Mr Binnings responded to questions from the committee about the methodology and data used to prepare the report including the statement that 72 percent of the water withdrawn by the members of the Front Range Water Council is from the Colorado River Basin. They also responded to questions from the committee about the basis of the study's claims concerning the economic value obtain from an acre foot of water by the various regions.
07:58 AM
Tucker Hart Adams, Adams Group, responded to questions about how the study determined that the Front Range obtains a much higher rate of goods and services per acre foot withdrawn compared with the state's other regions.
08:01 AM
Mr. Binnings, Ms. Adams, and Mr. Pifher responded to questions from the committee concerning the purpose of the Water and Colorado Economy study and what policies may be supported by the study. They also responded to questions about how the study assessed the impact of water diversions and transfers on the basin of origin.
08:10 AM
Ms. Adams described the economic benefits of tourism compared with other economic sectors including mining and manufacturing. Mr. Pifher also responded to questions about the study and whether it considered non-economic benefits of water that remains in its natural basin.