Water Resources Review Committee (08/20/2014)

Final
STAFF SUMMARY OF MEETING

WATER RESOURCES REVIEW COMMITTEE

Date:	08/20/2014	ATTENDANCE

Time:	09:01 AM to 11:59 AM	Brophy	E
		Coram	X
Place:	Westin Snowmass	Hodge	X
		Jones	X
This Meeting was called to order by		Mitsch Bush	X
	Representative Fischer	Roberts	E
		Sonnenberg	X
This Report was prepared by		Vigil	X
	David Beaujon	Schwartz	X
		Fischer	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Call to Order and Announcements SB 14-023 and the Transfer of Water Efficiency Savings To Instream Use Update on the Colorado Water Plan Voluntary Clean-up Plan for Historic Keystone Mine Roaring Fork Watershed Protection Public Testimony		- Briefing only Briefing only Briefing only Briefing only -

09:01 AM -- Call to Order and Announcements

Representative Fischer, Chair, called the meeting to order and announced upcoming meetings of the Water Resources Review Committee.

09:01 AM -- SB 14-023 and the Transfer of Water Efficiency Savings To Instream Use

John Stulp, Interbasin Compact Committee Chair and Special Policy Advisor to Governor Hickenlooper on Water, explained that Senate Bill 14-023 would have allowed water efficiency savings to be transferred through a change of water right to the Colorado Water Conservation Board (CWCB), for in-stream use, with the approval of a water judge, under certain circumstances. Water efficiency savings were defined as an amount of water, as determined in a water court proceeding, in water division 4, 5, 6, or 7 that is not consumed under existing practices by which ditch seepage, surface run-off, return flow, or tail-water return will be reduced as a result of structural improvements that increase the efficiency of water storage, diversion, conveyance, application, or use practices associated with a water right. Water efficiency savings could also have been derived from water rights that are used solely for agricultural irrigation or stock watering purposes. The bill was vetoed by Governor Hickenlooper. Mr. Stulp explained the provisions of the Governor's veto letter for SB 14-023 (Attachment A). He explained that he organized a group of water users and other interested persons and entities to revisit potential legislation to allow water efficiency savings to be transferred to instream flows. The group recommended that several pilot projects be created to determine the benefits and potential impacts of transfers of water efficiency savings to instream use. He

also responded to questions from the committee about measures to protect other water users from injury related to such transfers and the process for addressing the concerns of other water users with such transfers. He also discussed the potential role of the Division of Water Resources and the CWCB in the approval and administration of the pilot projects.

Attachment A.pdf

09:21 AM

Carlyle Currier, Vice-President, Colorado Farm Bureau, discussed the potential benefits of allowing water efficiency savings to be transferred and explained why his organization requested the Governor veto SB 14-023 including the need for stronger protections for historic water uses on affected streams. He also discussed the benefits of pilot projects to identify potential impacts on other water users and to help develop mechanisms to protect these users from injury.

09:25 AM

Terry Fankhauser, Executive Vice President, Colorado Cattlemen's Association, explained that his organization adopted a policy to encourage water use efficiencies and flexibility to reduce pressure for permanent transfers of agricultural water rights to municipal and industrial purposes. He discussed potential unintended impacts on other water users from changes to irrigation practices such as occurred in the Arkansas Basin related water irrigation efficiency improvements. He also discussed the potential benefits of the pilot projects to assess the benefits and impacts of allowing water efficiency savings to be transferred.

09:32 AM

Mr. Currier and Mr. Fankhauser discussed the cost of operating pilot projects and conducting studies to identify potential impacts of transferring water efficiency savings. They also discussed the potential role of the CWCB in conducting the water studies related to the pilot projects and the process for identifying areas of the state that may be suitable for the pilot projects.

09:43 AM

Doug Robatham, Water Program Director, the Nature Conservancy, explained why his organizations supported SB 14-023. He also spoke in support of the pilot projects to identify potential impacts of transferring water efficiency savings and measures to ensure that other water users are not injured by such transfers.

09:48 AM

Steve Child, Pitkin County Commissioner, discussed the need to define agricultural efficiency in state law and discussed agricultural water use and how it can change depending upon the weather and hydrological conditions. He also discussed changes in irrigation practices on Castle Creek and how these changes benefitted the streams and other water users.

09:55 AM

Ken Ransford, member of the Colorado Basin Roundtable, discussed the provisions of the SB 14-023 and the need for additional water in streams to protect the environment. He also made recommendations to encourage creation of the pilot projects.

09:58 AM

Chris Treese, Colorado River Water Conservation District, spoke in support of the pilot projects and explained why the district opposed SB 14-023. He also recommended legislation to address concerns about potential impacts related to the pilot projects.

10:01 AM

Mr. Stulp urged water users to participate in the development of legislation to authorize the pilot projects. He also responded to questions from the committee about the membership of the group that is developing recommendations for the pilot projects. Committee discussion followed about potential provisions of legislation to authorize the pilot project.

10:01 AM -- Update on the Colorado Water Plan

John Stulp, Special Policy Advisor to Governor Hickenlooper on Water, explained that the basin roundtables, created under the Colorado Water for the 21st Act, also known as House Bill 05-1177, submitted their basin implementation plans (BIP) in July and he explained how these plans will be incorporated into the Colorado Water Plan (CWP). He identified common provisions of the BIPs that represent consensus on issues including the importance of agricultural water use, the need for watershed protection, the need for new water projects that benefit multiple water users, the need to ensure that Colorado satisfies interstate water delivery obligations, the benefits of public education and outreach, and the need to protect water quality. He also identified BIPs and other materials on the Colorado Water Plan website, coloradowaterplan.com, visits to this website, and public comments submitted on this website concerning the draft CWP.

10:20 AM

Mr. Stulp responded to questions from the committee about how the CWP will address water use for energy development and other issues. He also explained that the CWCB is updating its Statewide Water Supply Initiative and identified issues that will be addressed in this report and how they differ from the last initiative that was updated in 2010. He also explained how the CWCB plans to resolve conflicting BIP objectives in the CWP.

10:32 AM -- Voluntary Clean-up Plan for Historic Keystone Mine

Alli Melton, Public Lands Director, High Country Conservation Advocates, discussed a proposed molybdenum mine on Mt. Emmons near the Town of Crested Butte and discussed problems associated with a historic mine on Mt. Emmons that is draining heaving metals into Coal Creek. She distributed photos of the mine (Attachment B) and a copy of her testimony (Attachment C). She explained that the owner of the historic mine submitted a proposal to the Colorado Department of Public Health and Environment (CDPHE) to clean up the mine under the department's Voluntary Clean-up Program (VCUP). This program was authorized under the Voluntary Cleanup and Redevelopment Act (Section 25-16-301, C.R.S., et seq.) She expressed concern that the current process does not provide for enforcement of the cleanup plan nor require public input on VCUP applications. She also proposed amendments to the Voluntary Cleanup and Redevelopment Act to address problems related to VCUP applications for more complicated mine sites. Current law requires CDPHE to approve VCUP applications within 45 days. She explained the CDPHE should be allowed to extend this deadline if more time is required to properly review the application. The law should also require notification of the public when a VCUP application is submitted and allow public comment on such applications.

Attachment B.pdf

Attachment C.pdf

10:50 AM

Aaron J. Huckstep, Mayor of the Town of Crested Butte, discussed the importance of a clean watershed to protect Crested Butte's drinking water supply and to encourage tourism. He also expressed concern about the CDPHE's permit review process for the Mt. Emmons mine VCUP and proposed changes to the process to encourage greater cooperation between state and local regulatory entities and enable affected persons and communities to participate in the VCUP permit review process including public notice of the application.

11:05 AM

Mayor Huckstep and Ms. Melton responded to questions from the committee about potential changes to improve the VCUP review process and their concerns about the proposed molybdenum mine and how it may affect the Mt. Emmon VCUP and the Town of Crested Butte.

11:12 AM -- Roaring Fork Watershed Protection

Jamie Cundiff, Forest Program Director, Aspen Center for Environmental Studies, discussed the impact on watersheds related to insects and disease in the watershed's forests. She distributed copies of the 2014 State of the Forest Report for Colorado Roaring Fork Watershed. This report is available on the Aspen Center for Environmental Studies website. The report uses a forest health index that is based on the premise that a healthy forest is one that is resilient to change and able to provide for local ecology as well as human goals. She explained that forest health addresses four goals: ecosystem services; ecological integrity; sustainable use and management; and public health and safety. She also discussed changes in Colorado's climate and how these changes affect current forest health and may impact future forest health. Ms. Cundiff discussed the importance of the Roaring Fork watershed for the Colorado River basin and downstream states that rely on this supply. She also responded to questions from the committee about the role of timber harvesting and other measures in restoring watersheds.

11:38 AM -- Public Testimony

11:38 AM -- Steve Glazier, representing himself, discussed the Coal Creek Watershed Coalition and its efforts to address mine runoff and other water quality impacts in the watershed. He also proposed changes to the Voluntary Cleanup and Redevelopment Act including an extension of the 45-day deadline for the approval of voluntary clean-up plan applications, the addition of a requirement groundwater quality be monitored, that the VCUP permits be enforceable. Applicants should also be prohibited from causing new environmental impacts at a clean-up site and public notice should be required when a clean-up permit application is submitted. He also discussed SB 14-023 concerning the transfer of water efficiency savings to instream flows and expressed concern about recent amendments to the Colorado Water Conservation Board's Policy 19 concerning expenditures of funds for instream flow water acquisitions.

11:48 AM -- Marc Catlin, representing Montrose County, proposed that legislation to allow the transfer of water efficiency savings to instream flows be expanded to allow such transfers in areas east of the Continental Divide. He also expressed concern about policies to encourage transfers of consumptive use from agriculture for other purposes and the belief among some persons that there is a surplus of water in western Colorado.

11:55 AM -- Sue Helm, Snowmass Capitol Creek Caucus, discussed the instream flow water right on Snowmass Creek and efforts accommodate water diversions from the creek for snow making. She also discussed the importance of a strong instream flow program in the Colorado Water Plan for all water ways.

11:59 AM

The committee adjourned.