#COWaterPlan: “We are looking at the appropriate revenue streams” — John Stulp

James Eklund and Governor Hickenlooper roll out the Colorado Water Plan, Thursday, November 19, 2015 via The Colorado Independent

Here’s the release from the Arkansas River Basin Water Forum (Chris Woodka):

Streams of funding will become important to keep streams of water flowing in Colorado in the coming decades, Gov. John Hickenlooper’s top water adviser said.

“We are looking at the appropriate revenue streams,” said John Stulp, the governor’s adviser. “One of the key questions is: How do you build certainty that new methods don’t dry up agriculture?”

Stulp, whose home base is a farm-ranch operation in Prowers County, will speak at the 2018 Arkansas River Basin Water Forum, April 11-12 in La Junta. This year’s forum is dedicated to the issues facing the Lower Arkansas Valley. Water lawyer David Robbins, who defended state interests in the Kansas v. Colorado speaker will open the conference, while Stulp will offer closing remarks.

Colorado’s Water Plan, completed in 2015, calls for $3 billion new state investment in water projects from 2020-50, or about $100 million annually. Much of Stulp’s time, working with the state Interbasin Compact Committee, has been spent figuring out just how to do that.

“We looked at 110 possibilities, then narrowed that to about 12. About four of those rose to the top,” Stulp said.

Those ideas included:

  • An excise tax on water activities, including recreation.
  • A tap fee on all water users’ bills.
  • A bottle fee on beverage containers.
  • A one-time tap fee on new construction.
  • In addition, a bill introduced late in the 2017 legislative session proposed a 0.1 percent sales tax to fund water.

    “None of the ideas have been implemented,” Stulp said. “It’s been a very general discussion.”

    Funding also is a very real issue at present. The Colorado Water Conservation Board has borrowed $10 million from its construction fund to fund Basin Roundtable projects that formerly would have been funded through mineral severance fees, which were curtailed by a court decision. Roundtables have been more selective in choosing projects that adhere to the Water Plan.

    “I think it’s been a good refresher for the roundtables to look at their Basin Implementation Plans, and decide which projects to fund at the local level, and which to take to the state level,” Stulp said. “The Arkansas Basin Roundtable has been very active, and has come up with good ideas for the valley, and to take back to the rest of the state.”

    Next month’s water forum at Otero Junior College in La Junta will include a series of presentations on agriculture, municipal water supply, environmental concens, water quality and watershed restoration. For information, go to the Web site: http://arbwf.com

    From Colorado Politics (Marianne Goodland) via The Colorado Springs Gazette:

    This year there just wasn’t enough money in the coffers to fund the state water plan at $10 million, which it received last year. For the 2018-19 fiscal year, it’s slated to receive only $7 million. The drop in funding comes just as the water plan’s chief cheerleader, Gov. John Hickenlooper, is headed into the last eight months of his term in office.

    Severance taxes are paid by oil and gas and mineral companies when they take those resources out of the land, known as severing. Those revenues pay for some of the divisions in the Department of Natural Resources (DNR), including the Colorado Oil and Gas Conservation Commission (COGCC) and the Colorado Water Conservation Board (CWCB) and are known as Tier I funding.

    Tier II dollars, which also come from severance taxes, pay for continuing projects such as water and agriculture-related programs, clean energy development, soil conservation, wildlife conservation, invasive species control and low-income energy assistance.

    But the decline in severance tax revenues due to lower oil and gas activity, combined with the state losing a lawsuit filed by oil giant BP over property tax deductions, has wiped out a substantial portion of what the state has to fund those operational activities…

    The Joint Budget Committee stepped in with a bill, House Bill 1338, to transfer just under $30 million in general fund dollars (income and sales tax) to ensure those DNR divisions and projects keep going. That bill is one of 17 bills, referred to as “orbitals,” that go hand-in-hand with the Long Appropriations Bill, House Bill 1322. Orbitals are included to ensure sure the budget is balanced.

    The House Appropriations Committee approved HB 1338 Tuesday morning, prior to the House breaking into its separate caucuses for a JBC presentation on the budget, and to determine what amendments would be offered when the House debates the Long Bill Wednesday.

    What’s left of the severance tax money will fund a variety of projects contained in Senate Bill 18, the annual CWCB projects bill. But with less money to work with, the water plan came out with less money than it got last year.

    The $7 million for the water plan includes $3 million for storage work; $1 million for agriculture-water projects; another $1 million for grants that would put into action strategies for conservation, land use and drought planning; and $1.5 million for environmental and recreational projects. Who gets what will be decided by the board of directors for the CWCB.

    The CWCB projects bill also includes $8 million to take care of “Republican River matters.” Half of those dollars will go to Nebraska, due Dec. 31, to pay off a settlement for alleged violations of an interstate compact.

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