Colorado Legislative Council StaffSTATUTORY PUBLIC ENTITY

CONDITIONAL FISCAL NOTE

No State General Fund Impact

SPE Potential Revenue Impact

TITLE:            CONCERNING THE FINANCING OF WATER RESOURCE PROJECTS BY THE COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY.

Summary of Legislation

            This bill amends the definition of governmental agencies under the “Colorado Water Resources and Power Development Authority Act” to include enterprises and other entities established by governmental agencies, and removes the existing limitation that such other entities be established pursuant to interstate compact or agreement.

            The bill amends the definition of hydroelectric facilities under the Act to include all facilities for the hydrogeneration or transmission of electric power and energy, not just those developed in connection with a water management facility.

            The bill amends the definition of small water resources projects under the Act to include facilities with an estimated cost of $25 million, including planning, environmental costs, and water rights, in place of the current limitation of $10 million , not including those costs.

            The bill deletes the requirement that the Authority use no more than one-quarter of its cash or investments on hand on January 1 of each year in connection with the issuance of bonds for small water resources projects. The bill eliminates an obsolete prohibition on the use of more than $8,970,000 at any one time between January 1, 1989, and January 1, 1994. The bill revises the process and conditions for the Authority to forward certain copies of project loan applications to the Colorado Water Conservation Board for informational purposes. The bill revises the date of the Authority’s annual report from March 31 to April 30.

            The bill removes the existing limitation that the only generation of electric energy authorized by the Act is generation from hydroelectric facilities “supportive of a project”.

            This bill will not affect state revenue or expenditures. The bill may affect Authority investment earnings revenue, if additional or larger loans are requested by local governments. Therefore, the bill is assessed as having a conditional fiscal impact.

Local Government Impact

            This bill will allow local governments to apply for loans for the costs of planning, water rights acquisitions, and environmental litigation in addition to the costs for design and construction. The bill also increases the cost of allowable projects from $10 million to $25 million. These provisions may allow the size of the loan to be increased, but may not affect the local government cost for interest expenses. This fiscal note assumes local government may have had to previously borrow the moneys for these costs from other sources.

Statutory Public Entity Impact

            The provisions of this bill expand the type, and subsequently the number, of water resources projects that may qualify for loans from the Colorado Water Resources and Power Development Authority. The bill also increases the amount of the loans that may be granted by the Authority. These provisions may affect the amount of investment earnings generated by these loans, if additional or larger loans are requested by local governments.

Spending Authority

            This fiscal note would imply that no new state spending authority or appropriations are required for FY 1998-99 to implement the provisions of this bill.

Department

            Natural Resources