1313 Sherman Street Denver, CO 80203 P (303) 866-3441 F (303) 866-4474 Jared Polis, Governor Dan Gibbs, DNR Executive Director Rebecca Mitchell, CWCB Director TO: Colorado Water Conservation Board Members FROM: Brent Newman, Interstate, Federal, & Water Information Section Karen Kwon, Colorado Office of the Attorney General DATE: January 29, 2019 AGENDA ITEM: 23. Colorado River Drought Contingency Planning and Demand Management Background Since January 2018, CWCB staff and members of the Attorney General’s Office have been conducting a series of outreach presentations across Colorado regarding drought contingency planning efforts underway in the Colorado River Basin. Consistent with direction from the Board, these efforts have served dual purposes: to educate and inform interested water rights holders and other stakeholders about the status of ongoing efforts to develop drought contingency plans in the Upper and Lower Colorado River Basins, and to solicit feedback from Colorado water users regarding the concept of demand management as a potential tool for avoiding compact administration in the event of continued drought or worsening hydrology. At the September 2018 Board meeting, staff provided an update on ongoing outreach efforts, the relationship between ongoing interstate efforts to implement DCPs in the Upper and Lower Basin, and the evaluation of demand management as a tool within Colorado. The Board heard comment from a variety of water managers, stakeholders, and members of the public regarding opinions, challenges and opportunities presented by potential implementation of demand management. At the October 4, 2018 Special Meeting, the Board directed staff to continue this outreach, including providing information about the recently released Drought Contingency Plan (DCP) documents. The Board also directed staff to prepare a “draft policy statement” for Board review at the November meeting, to guide the assessment, feasibility analysis, and potential implementation of a demand management program within Colorado. At the November 15, 2018 Board meeting, the Board unanimously approved “Support and Policy Statements Regarding Colorado River Drought Contingency Plans, Demand Management, and Compact Administration,” which set out the Board’s policy to: “Develop the state’s position and approach on whether and how to develop any Upper Basin Demand Management Program that could potentially be implemented within Interstate Compact Compliance • Watershed Protection • Flood Planning & Mitigation • Stream & Lake Protection Water Project Loans & Grants • Water Modeling • Conservation & Drought Planning • Water Supply Planning Colorado consistent with state law to avoid or mitigate the risk of involuntary compact curtailment and to enhance certainty and security in the Colorado River water supply.” This policy statement also laid out a strategy for formulating the state’s demand management position, identifying several elements for investigation and vetting through a thorough public review process. The statement also provides initial sideboards for such an investigation, informed by Board discussion and water user input to that point. Since November, staff has been working with the Attorney General’s Office on a draft scope of work for demand management feasibility investigation in 2019. As part of this agenda item, staff will report out on outreach efforts since November, provide an update on DCP progress, and walk the Board through the elements of the draft scope of work. The scope of work will identify a more formal outreach and public input procedure, potential working groups to investigate individual elements of demand management feasibility, and objectives to meet in calendar year 2019. This work will focus on demand management considerations within Colorado, and will continue on a parallel track with interstate efforts led by the Upper Colorado River Commission. CWCB staff will also participate in those efforts, in close coordination with Colorado’s Commissioner and staff from neighboring Upper Basin states. Staff recommendation This is an informational item, with no formal Board action requested. Staff will welcome guidance and comment from the Board on drought contingency planning efforts and demand management feasibility investigation scoping.