THE FINAL PLAN IS Colorado?s Water Plan Colorado Water Conservation Board 2016 COLORADO Colorado Water Conservatlon Board WATER Department of Natural Resources pan Supply-Demand Gap Colorado’s Water Plan sets a measurable objective of reducing the projected 2050 municipal and industrial gap from as much as 560,000 acre-feet to zero acre-feet by 2030. Conservation Colorado’s Water Plan sets a measurable objective to achieve 400,000 acre-feet of municipal and industrial water conservation by 2050. Land use Colorado’s Water Plan sets a measurable objective that by 2025, 75 percent of Coloradans will live in communities that have incorporated water-saving actions into land-use planning. Agriculture Colorado’s Water Plan sets an objective that agricultural economic productivity will keep pace with growing state, national, and global needs, even if some acres go out of production. Storage Colorado’s Water Plan sets a measurable objective of attaining 400,000 acre-feet of water storage in order to manage and share conserved water and the yield of IPPs by 2050. This objective equates to an 80 percent success rate for these planned projects. Watershed Health, Environment, and Recreation Colorado’s Water Plan sets a measurable objective to cover 80 percent of the locally prioritized lists of rivers with stream management plans, and 80 percent of critical watersheds with watershed protection plans, all by 2030. Funding Colorado’s Water Plan sets an objective to sustainably fund its implementation. In order to support this objective, the State will investigate options to raise additional revenue in the amount of $100 million annually ($3 billion by 2050) starting in 2020. Overall State Budget and Severance Tax Summary How is Severance Tax Distributed? Total State Severance Taxes Collected* 50% State Trust Fund 50% Local Impact Fund (Department of Natural Resources) (Department of Local Affairs) 50% Perpetual Base Fund for CWCB loans 50% DNR Operational Account 30% DIRECT Distribution to Local Govts 70% COMPETITIVE GRANTS to Local Govts * $1.5 Million of severance tax is taken “off-the-top” and deposited into the Innovative Energy Fund ** If Perpetual Base Account revenues exceed $50M; next $10M flows to CDPHE’s Small Communities Water and Wastewater Grant Fund.) 12 Perpetual Base Fund • Very roughly speaking, the Perpetual Base Fund is a $380 million fund (although most of that amount is loan receivables) that plays a major role in supporting the CWCB Loan Program and helping build water supply infrastructure in Colorado. • In an average year, there might be $50 million in new revenues available for new projects. History of State?s Severance Tax Revenue $350.0 $319.1 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 STAX Revenue IFY08 IFY09 IFY10 IFY11 IFY12 IFY13 IFY14 IFY15 FY16 General Fund Transfers • Since FY 2000-01, a total of $167 million has been transferred from the Perpetual Base Fund to the General Fund to assist in resolving the State’s General Fund Budget problems. • Another $10.25 million was transferred out of the CWCB Construction Fund. • A net of $42.8 million was transferred out of the Severance Tax Operational Fund. • In FY 2014-15, $30 million of these transfers were repaid per S.B. 13-236. Operational Fund - Tier 1 Programs Pursuant to Section 39-29-109.3, Colorado Revised Statutes, Operational Fund moneys shall be spent as follows: • Up to 45% to the Oil and Gas Conservation Commission; • Up to 30% to the Division of Reclamation, Mining, and Safety; • Up to 20% to the Colorado Geological Survey, and; • Up to 5% to the Colorado Water Conservation Board. Operational Fund -Tier 2 programs in FY 2015-16 Sales 1.1 2 LEAP 3.5 13 WSRF Species Conservation 3.5 Aquatic Invasive Species Forestry / Wildfire 4 Misc Water Programs 5 Phreatophytes 10 Agriculture/Other Current Projections • Legislative Council Staff are projecting that severance tax revenue in FY 2015-16 will be $62.2 million (a 77% decline from FY 15) and will rebound to $147 million in FY 2016-17. • Under this forecast, Tier 2 programs will be cut by 11.7% in FY 2015-16 and 41% in FY 2016-17. Colorado Water Plan - Funding Estimated Water Supply Needs $20B 70% • Water Providers - $14B • Conventional Financing – Rates 15% • State – Existing Funding Sources - $3B • Sev. Tax, Revolving Funds, etc. 15% • State – New Funding Sources - $3B • Public Initiatives, Foundations, etc. Statewide Funding Committee Mike Brod, Water and Power Authority Don Carlson, Northern Water Dick Brown, Economist Jake Good, CoBank Gary Barber Peter Nichols, Attorney James Eklund, CWCB Larry Clever, Ute Water District Eric Hecox, South Metro District Doug Robatham, American Rivers Private Consultant’s P3’s Jim Broderick, South Eastern Water District Tim Feehan, CWCB John Stulp, Gov’s Office Legal Consultants P3’s Statewide Funding Committee Regionalization & Consolidation Environmental and Recreation Support Agricultural Viability Maintain Communication – Rd. Tables Initial Planning Support – Small providers Education and Outreach Dedicated Statewide Water Funding Source Private Capital – P3’s Funding Incentives Movement of Water Basin Imp. Plans IPP’s Water Conservation Water Plan Funding Action Summary Recommended Funding Initiatives Public Funding Source – Dedicated to Water State Repayment Guarantee Fund Impact or Green Bonds Expansion of WSRA Grant Program Public - Private Partnerships Water Education and Outreach New Funding Source $100M/yr $0-$25M /yr. $50M Initial Investment Repaymt Fund Exist/New Funding $0-$15M/yr . $10M Initial Invest. $10+M/yr. New Programs New Funding $50M+/yr. New Funds $30M Loans $20M Grants Water Providers 70% $14B Exist. Prgms. Exist/New Funding Green Bonds New Funding $50M Loans $15M Grants Existing $100M Annual Revenue $25M $15M Repayment Fund Green Bonds $10M New Programs $50M Existing Programs Initial Invest. $50M Initial Invest. $10M Educ. & Outreach Loans $50M - $80M Bal. $50M-$200M Bal. $10-$50M Support Agriculture Grants $15M - $35M $ $ Support Conserv. Others? * Watershed Restor. * WSRA * Water Efficiency * Emergency Drought * Fish and Wildlife * STOA NRI * STBP/CF NRI Water Plan Action Items Moving Forward Repayment Guarantee Fund - $50M Investment Expand CWCB Authority - Treated Water Projects Transfer of $5M Annually from STBF to CF Additional $1M in Funding - Watershed Program Modern Method/PMP for Spillway Sizing Investigate Funding Opportunities - Foundations Water Plan Action Items to be Pursued Impact or Green Bonds - $10M Investment Overview and Modifications to WSRA Program Establish Education and Outreach Program Development of CWCB Policies to Support Funding, Programs, and Projects SWSI 2016 Update to Include BIP IPP review Water Plan Action Items Needing Feedback Public Funding Source Developing a Pilot Multi-Partner, Public – Private, Shared Infrastructure Project in next 2 yrs. State Tap Fee