House Committee on Agriculture, Livestock, & Natural Resources (04/08/2013)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Date:	04/08/2013	ATTENDANCE

Time:	01:34 PM to 03:31 PM	Buck	X
		Coram	X
Place:	HCR 0107	Garcia	X
		Lebsock	X
This Meeting was called to order by		McNulty	*
	Representative Fischer	Mitsch Bush	X
		Rankin	X
This Report was prepared by		Rosenthal	X
	Brooke Maddaford	Saine	*
		Sonnenberg	X
		Tyler	X
		Vigil	X
		Fischer	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB13-1248		Amended, Referred to the Committee of the Whole

01:35 PM -- House Bill 13-1248

Representative Fischer, sponsor, presented House Bill 13-1248. The bill establishes a procedure for the Colorado Water Conservation Board (CWCB) to approve up to three pilot projects that temporarily transfer agricultural waters rights in the Lower Arkansas River basin to municipal water users. The pilot projects generate transferable consumptive use water primarily by fallowing certain cropland for no more than three years in a ten-year period.

Representative Fischer explained that he will be offering a strike-below amendment L.001 (Attachment A), which was distributed to the committee on April 5, 2013.

130408 AttachA.pdf

01:40 PM -- Peter Nichols, Berg Hill Greenleaf & Ruscitti, spoke in support of the bill. Mr. Nichols talked about the likelihood of extreme drought. He explained why the bill is needed to support the Lower Arkansas River basin, talked about how Amendment L.001 (Attachment A) improves the bill, and explained that input on proposed pilot projects is expected from the SEO and the public. Mr. Nichols answered questions from the committee regarding potential limits for pilot projects, the possibility that pilot projects may serve municipal needs but not address drought issues, the collaborative process and major players involved in moving a pilot project from the proposal phase to implementation, the potential for small-scale projects under the provisions of the bill, and how this bill may affect water rights holders in the San Luis valley.

01:53 PM -- John McClow, CWCB, spoke in support of the bill. Mr. McClow explained that Amendment L.001 (Attachment A) is consistent with how the bill was originally presented to the CWCB. Mr. McClow explained that the purpose of the bill is to provide an alternative to "buy and dry" agriculture. He answered questions from the committee regarding the difference between "buy and dry" agriculture and "lease and dry" agriculture and whether or not this bill would create an option that would allow for permanent water supply for municipalities.

01:57 PM -- Alan Curtis, City of Sterling and Water Right Association of the South Platte, spoke in opposition to the bill and staff distributed a handout from the Water Rights Association of the South Platte (Attachment B). Mr. Curtis talked about his concerns regarding the lack of a limit on the size of the pilot projects, said that new projects should not be tested during a drought, and explained that this bill is not analogous to a substitute water supply plan. Mr. Curtis explained that changes made to the bill regarding the size of the projects and where the projects are allowed to be implemented are problematic. He outlined concerns regarding the "stacking" of statutory temporary water right changes that may allow people to avoid the water court process for decades. Mr. Curtis explained that under pilot projects as outlined in the bill, water will be removed from Colorado communities which will have long-term effects on agriculture in these communities. He described concerns regarding the expediting of the water court process under the provisions of the bill and ditch company bylaws that may be affected by the provisions of the bill. Mr. Curtis said that he believes there has been significant forward movement but that the bill should limit projects to a certain size and number, and that the bill should include language that precludes applicants from "stacking" changes of water rights.

130408 AttachB.pdf

02:08 PM

Committee discussion ensued regarding the potential for water right applicants to "stack" multiple temporary water supply measures over a long period of time, thus avoiding water court and potentially impacting multiple water rights holders.

02:15 PM -- Mr. Curtis answered questions from the committee regarding how farms may be impacted by pilot projects as they are described in the bill. He continued to answer questions from the committee regarding the motives of water rights holders who seek a change of use ruling through water court versus those who seek a temporary water transfer per the provisions of the bill.

02:23 PM

Representative Fischer explained that there is specific language in Amendment L.001 (Attachment A) that explains that the CWCB will develop guidelines and criteria for pilot projects and that one of the criteria involved is to ensure that a pilot project will address some of Mr. Curtis's concerns.

02:23 PM -- John Hendrick, Centennial Water and Sanitation District, spoke in opposition to the bill. Mr. Hendrick said that water demands along the Front Range need to be addressed but that the bill should have both stricter duration and quantity limits to pilot projects. Mr. Hendrick discussed concerns about the appeal process, the need for clarification in the bill regarding procedures, and said that since the bill's concept has merit it may be acceptable with some corrections. Mr. Hendrick answered questions from the committee regarding his concerns about the time limits and how much of one farm may be irrigated as outlined in the bill. Representative Fischer answered questions about similar pilot projects in other states.

02:33 PM -- Steven Jansen, Henrylyn Irrigation District, spoke in opposition to the bill. Mr. Jansen explained the relationship between shareholders and ditch companies and described water leases that his district is involved with. Mr. Jansen outlined concerns regarding how the bill may impact lawful historical use rates and explained that water court is necessary to maintain transparency regarding water rights. Mr. Jansen said that although water court may be expensive, it is necessary to prevent injury to water rights and that this bill will complicate water right transfers. Mr. Jansen answered questions from the committee regarding the free market and language in Amendment L.001 (Attachment A) that protects against injury to water rights holders. He offered clarification regarding his statement that this bill will allow for "stealing water," and continued to answer questions from the committee regarding the City of Thornton's change of water use cases and his opinion of the "spirit" of the bill.

02:53 PM -- Jennifer Gimbal and Travis Smith, CWCB, spoke in support of the bill. Ms. Gimbal reminded the committee of the SWSI study that examined the expected dry up of 500,000-700,000 irrigated acres if changes in water usage are not made. Ms. Gimbal talked about alternative water transfer methods and said that the CWCB staff have begun compiling a list of guidelines for the pilot projects. Mr. Smith described several reasons why pilot projects are needed, and discussed the CWCB's desire to sustain agriculture in Colorado and ensure the success of pilot projects.

03:00 PM -- Jay Winner, Lower Arkansas Valley Water Conservancy District, spoke in support of the bill. Mr. Winner talked about the far-reaching impacts of water injury, other states' water pilot programs, and the potential impacts of the bill on municipalities.

03:02 PM -- Doug Kemper, Colorado Water Congress, spoke in support of the bill as amended. Mr. Kemper talked about his organization's input on the bill and explained that this bill's purpose is to gather information. Mr. Kemper stressed the importance of late-March and April snowpack levels but explained that water supply decisions must be made before April. Mr. Kemper discussed his organization's ongoing investigation into numerous water supply options and ways to mitigate drought. He explained that the bill will allow those who lease water to balance their risk and discussed the importance of water storage levels and recovery as well as crop yield impacts to irrigation. Mr. Kemper outlined previous fallowing programs that have been implemented in Colorado.

03:12 PM -- Julie McKenna, Northern Colorado Water Conservancy District, spoke in support of the bill. Ms. McKenna briefly described her organization and talked about how the bill ensures adequate safeguards to pilot projects. Ms. McKenna said that it's time to test whether or not fallowing programs are viable.

03:14 PM -- Bill Hancock, representing himself, spoke in support of the bill. Mr. Hancock talked about his family's ranch and his experiences with "buy and dry" agriculture, including how it affects local communities. Mr. Hancock discussed how lease fallowing is a good option for rural Colorado and said that workable solutions need to be tested.

03:18 PM -- Lynden Gill, representing himself, spoke in support of the bill. Mr. Gill said he supports the learning process that must occur to resolve water issues in Colorado and talked about his agricultural service business. Mr. Gill discussed how the bill will allow for the identification of problems, and said that the bill is a good alternative to "buy and dry" agriculture that allows for both farm and city people to cooperate in a necessary learning process.

03:21 PM -- Garin Vorthmann, Colorado Farm Bureau, spoke in support of the bill as amended. Ms. Vorthmann said the bureau supports the intent of the bill which is to find alternatives to "buy and dry" agriculture. Ms. Vorthman discussed how the bill will protect water rights holders.

03:23 PM -- Chris Treese, Colorado River Water Conservation District, spoke in support of the bill as amended. Mr. Treese said that the district supports the water court process and said that the provisions of the bill preserve that process. Mr. Treese explained that the district requested language in the bill to ensure that pilot projects cannot be used to remove water from certain river basins.


BILL:	HB13-1248
TIME:	03:26:30 PM
MOVED:	Fischer
MOTION:	Adopt amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:	Coram
		VOTE
	Buck
	Coram
	Garcia
	Lebsock
	McNulty
	Mitsch Bush
	Rankin
	Rosenthal
	Saine
	Sonnenberg
	Tyler
	Vigil
	Fischer

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:27 PM

Representative Fischer wrapped up his presentation of the bill.


BILL:	HB13-1248
TIME:	03:29:14 PM
MOVED:	Fischer
MOTION:	Refer House Bill 13-1248, as amended, to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Saine
		VOTE
	Buck	Yes
	Coram	Yes
	Garcia	Yes
	Lebsock	Yes
	McNulty	Yes
	Mitsch Bush	Yes
	Rankin	Yes
	Rosenthal	Yes
	Saine	Yes
	Sonnenberg	Yes
	Tyler	Yes
	Vigil	Yes
	Fischer	Yes

Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:31 PM

The committee adjourned.