Date: 01/20/2009

Final
BILL SUMMARY for HB09-1067

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Votes: View--> Action Taken:
Moved a conceptual amendment: Page 3 line 25 chan
Moved to refer House Bill 09-1067, as amended, to 		Pass Without Objection
PASS



11:00 AM -- House Bill 09-1067

Representative Pommer, prime sponsor, presented House Bill 09-1067 concerning the establishment of an incentive for the donation of water rights to the Colorado Water Conservation Board for use as instream flow rights. Representative Pommer explained that this bill will provide an incentive for water rights owners to donate water rights to preserve the flow in rivers and water levels in lakes so that they can be available for recreational and environmental uses. He explained that, in his view, the state's instream flow program has been very successful and that it was time to move the program forward. Representative Pommer took questions from the committee concerning water rights appraisals.

The following individuals testified on the bill

11:03 AM -- Harris Sherman, Director of the Department of Natural Resources, began by saying that the Department and the Colorado Water Conservation Board strongly support the bill. He briefly outlined the history and success of the Instream Flow Program. He explained that there are two ways to expand the Instream Flow Program: through appropriations filings for junior water rights or leasing water, or through water rights donations. He said that while the program has received a few donations, they have not seen this program take off. As a result, they are trying to find new ways to make the donations program work. He emphasized that there are checks on how this program would be administrated, explaining that there is a cap on the amount of tax credits that could be allocated in any one year. In down economic times the tax credit would not be utilized.

11:06 AM -- Linda Bassi, representing the Department's Instream Flow Program and the Colorado Water Conservation Board staff, talked about how the Colorado Water Conservation Board evaluates water rights donations to the instream flow program. She explained that the Board has a rigorous review process in place that is governed by the Instream Flow Program rules. She noted that the Colorado Water Conservation Board has to consider a variety of factors including the extent to which the donation will benefit the natural environment and the Instream Flow Program. This bill would add the water rights appraisal and the tax credit to that list of factors the Board considers when evaluating a donation. Ms. Bassi and Mr. Sherman took questions from the committee regarding how water right use would be enforced, how monitoring instream flow rights are conducted, if there is a history of instream flow donations being turned down, what the process is for donating water rights, and if the definition of "water right" is changed in the bill. Representative Pommer explained that the definition in the bill matches the definition already in statute. In response to a question about whether the Board could sell water rights that had been donated, Ms. Bassi emphasized that the Board would only accept water rights if the Board saw a use for the right and that the Board's intent would not be to sell that right, though neither she nor Mr. Sherman were sure whether that was prohibited by law.

11:17 AM -- Becky Long, Colorado Environmental Coalition, testified in favor of the bill. She commented that the bill would provide a benefit to the economy in addition to intstream flows. She explained that Colorado's tourism industry and local communities would stand to benefit economically from an increase in stream flow. She also testified that the bill would provide an additional financial incentive for farmers and ranchers to stay on their land. She closed by saying that she was asked to express support for the bill on behalf of Trout Unlimited and that the bill was supported by a variety of other environmental groups.

11:19 AM -- Amy Beatie, Colorado Water Trust, testified in support of the bill. She described a water rights donation program that is run by her organization. She testified that this bill will allow water rights holders an additional way to use water within their portfolios and to keep water in local communities. She answered questions from the committee concerning the quantity of water donated through the Colorado Water Trust's program. Ms. Beatie emphasized that it is not the quantity of the donation, but the impact the donation has on the instream flow which is dependant on the flow of the water segment.

11:24 AM -- Dan Grossman, Rocky Mountain Regional Director for the Environmental Defense Fund, explained the role of his organization and testified in favor of the bill. He testified that the environmental externality is often left out through Colorado's prior appropriation process. He emphasized that he is particularly in favor of the incentive approach for addressing an environmental issue. He said that in working on the bill with Representative Pommer, his organization wanted to make sure the incentive was accountable by working through the Colorado Water Conservation Board's existing program. Mr. Grossman answered questions from the committee about the impact to the state budget and the cap and trigger for the tax credit.


11:29 AM

Representative Curry asked whether the Colorado Water Conservation Board voted to support the bill. Mr. Sherman said that the board has not voted on this bill yet but will be meeting next week and taking action on the bill at that meeting.

.
11:30 AM

In response to a question from Representative Curry, Becky Brooks, Colorado Water Congress, testified that the Colorado Water Congress discussed this issue but decided not to take a position on the bill.
BILL:HB09-1067
TIME: 11:31:51 AM
MOVED:Fischer
MOTION:Moved a conceptual amendment: Page 3 line 25 change "paragraphs 6i" to "paragraphs 6m" to anticipate an upcoming change to the board's rules, and on page 4, line 5, strike "OFFERED" and substitute "ACCEPTED". The motion passed without objection.
SECONDED:Labuda
VOTE
Gardner C.
Hullinghorst
Labuda
Looper
McKinley
McNulty
Pace
Solano
Sonnenberg
Tipton
Vigil
Fischer
Curry
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1067
TIME: 11:34:17 AM
MOVED:McNulty
MOTION:Moved to refer House Bill 09-1067, as amended, to the Finance Committee. The motion passed 11-2 on a roll call vote.
SECONDED:Fischer
VOTE
Gardner C.
Yes
Hullinghorst
Yes
Labuda
Yes
Looper
Yes
McKinley
No
McNulty
Yes
Pace
Yes
Solano
Yes
Sonnenberg
No
Tipton
Yes
Vigil
Yes
Fischer
Yes
Curry
Yes
Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS



11:35 AM

The committee adjourned.