2013 SENATE JOINT RESOLUTION 13-005 BY SENATOR(S) Roberts and Hodge, Baumgardner, Giron, Schwartz, Aguilar, Cadman, Carroll, Crowder, Grantham, Guzman, Harvey, Jahn, King, Lambert, Lundberg, Marble, Newell, Nicholson, Renfroe, Tochtrop, Todd, Morse; also REPRESENTATIVE(S) Sonnenberg, Fischer, Wilson, Buck, Buckner, Conti, Coram, Court, DelGrosso, Dore, Duran, Everett, Exum, Fields, Foote, Garcia, Gardner, Gerou, Ginal, Hamner, Holbert, Hullinghorst, Humphrey, Joshi, Kagan, Kraft-Tharp, Labuda, Landgraf, Lawrence, Lebsock, Lee, May, McCann, McLachlan, McNulty, Melton, Mitsch Bush, Moreno, Murray, Navarro, Nordberg, Pabon, Peniston, Pettersen, Primavera, Priola, Rankin, Rosenthal, Ryden, Salazar, Schafer, Singer, Swalm, Szabo, Tyler, Waller, Williams, Young, Ferrandino. CONCERNING THE ADVERSE EFFECTS THAT THE DIVERSION OF REVENUES HAS HAD ON WATER INFRASTRUCTURE IN COLORADO. WHEREAS, Colorado is a semi-arid state, and much of our water supply is located far from where it can be beneficially used; and WHEREAS, Colorado is therefore heavily dependent upon water infrastructure to move water to where it can serve the needs of our agricultural, municipal, and industrial water users; and WHEREAS, Our constitutional prior appropriation doctrine has always promoted and protected the initiative and economic investments of water users in building the water diversion, storage, and conveyance infrastructure needed to put water to beneficial use; and WHEREAS, Federal and state mandates have required the ongoing construction, improvement, and replacement of treatment facilities for drinking water and wastewater; and WHEREAS, The approval process for these different types of water facilities and infrastructure has become increasingly expensive, time-consuming, and uncertain; and WHEREAS, Colorado has long supported the private sector's and local governments' initiative in building water infrastructure with state financial incentives, primarily in the form of loans from revolving funds but also with grants to local governments; and WHEREAS, Due to recent difficult economic conditions and consequent state budget shortfalls, the General Assembly has had to make difficult choices in prioritizing its expenditures; and WHEREAS, Since 2009, the General Assembly has authorized the transfer of almost $449.05 million into the general fund from sources that would otherwise have been available for water infrastructure, including: $181.1 million from the perpetual base account of the severance tax trust fund and $10.25 million from the Colorado water conservation board construction fund, all of which would otherwise have been available for raw water infrastructure loans; and $18.9 million from the operational account of the severance tax trust fund, $168.8 million from the local government severance tax fund, $19.1 million from the local government permanent fund, and $46 million from the local government mineral impact fund, significant portions of which would otherwise have been available for water infrastructure loans and grants; and WHEREAS, In 2011, energy impact assistance grants were suspended; and WHEREAS, The diversion of such significant sums from their originally intended purposes has had a devastating effect on the maintenance and development of water infrastructure in Colorado; and WHEREAS, To the extent that the diversion of sums intended for use on water infrastructure projects has caused existing projects to be delayed, that delay has been costly to Colorado. For example, the Northern Integrated Supply Project has faced a five-year delay. It is estimated that the delay has cost the Northern Colorado Water Conservancy District between $70 million and $90 million, based on an estimated 3.5% increase in the annual rate of construction costs, as determined in accordance with the construction cost index published by the Engineering News-Record; and WHEREAS, The president and president-elect of the National Conference of State Legislatures sent a letter to congressional leadership that listed infrastructure as the third-highest priority that should be protected during deficit reduction efforts, behind only imposing no new unfunded federal mandates and improving the Medicaid program; and WHEREAS, The Western States Water Council (WSWC), an organization created by resolution of the Western Governors' Association, noted that a recent American Society of Civil Engineers Report Card gives the nation's drinking and wastewater infrastructure a "D-" grade, its dams a "D," and its levees and inland waterways a "D-." The WSWC concludes: "The current deplorable grade for our infrastructure impacts our lives and the economy, raising public health and safety issues, as well as the looming specter of future repair, rehabilitation and replacement costs."; and WHEREAS, Further diversions of revenues to the general fund from water infrastructure will have serious, long-term, adverse effects on Colorado's economic and social well-being; and WHEREAS, The Water Resources Review Committee has reviewed the issues raised by this Joint Resolution and strongly urges the General Assembly to adopt it; now, therefore, Be It Resolved by the Senate of the Sixty-eighth General Assembly of the State of Colorado, the House of Representatives concurring herein: That the General Assembly should remain cognizant of the important role our water infrastructure plays in Colorado's economic and social well-being when prioritizing its expenditures. ____________________________ ____________________________ John P. Morse Mark Ferrandino PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Cindi Markwell Marilyn Eddins SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES