R.I.P. Gary Bostrom

From The Colorado Springs Independent (Pam Zubeck):

A Colorado Springs native, Bostrom was named chief water officer in 2011 after having served as general manager for planning, engineering and resource managment in water services. He also worked in water supply acquisition, water and wastewater infrastructure planning and engineering, and developing regional partnerships. He was instrumental in the development of the Arkansas River Exchange Program, the 1996 Water Resource Plan and the Southern Delivery System permitting process.

Bostrom served as a director on the Southeastern Colorado Water Conservancy District, was past president of the Fountain Valley Authority, a director for the Aurora-Colorado Springs Joint Water Authority, and a director for the Homestake Steering Committee. Additionally, he is past president of the Twin Lakes Reservoir and Canal Company, the Lake Meredith Reservoir Company and the Lake Henry Reservoir Company.

Southeastern Colorado Water inks agreement with Fountain and Fort Carson for hydro project

The new north outlet works at Pueblo Dam — Photo/MWH Global

From The Colorado Springs Gazette (Conrad Swanson):

The Southeastern Colorado Water Conservancy District and the U.S. Bureau of Reclamation, which owns and operates the Pueblo Dam, signed an agreement last week allowing for the soon-to-be-built plant to connect to the dam, Chris Woodka, the district’s issues management program coordinator, said in a release.

The agreement was signed after the Colorado Springs City Council unanimously approved the creation of a military sales tariff on Tuesday. The tariff will cover costs for Colorado Springs Utilities to act as an intermediary, buying power from the district and selling it to Fort Carson.

With all the necessary agreements in place, the district hired Mountain States Hydro, LLC, to build the $19 million plant, Woodka said. Construction will begin in September and the plant should be operational by the spring.

Half of the electricity from the plant, estimated to be up to 7.5 megawatts, will be sold to Fort Carson and the other half will be sold to Fountain Utilities.

The plant is expected to generate about $1.4 million in revenue each year, Woodka said.

From The Pueblo Chieftain (Jon Pompia):

“This is a monumental moment in the history of the district,” said Jim Broderick, the district’s executive director. “We have been working to put all of the pieces in place since 2011. Now that this project is coming to fruition, it represents not only a sustainable income stream for our stakeholders, but develops a clean source of power for the future.”

Added Chris Woodka, the district’s issues management program coordinator, “The Lease of Power Privilege clears the way for the hydropower plant to connect to Pueblo Dam, a federally owned structure. Mike Ryan, director of the Great Plains Region for Reclamation, signed the lease Friday.”

In order to satisfy all federal requirements related to the project, members of the district have been working for the past 18 months to put a series of other agreements in place.

“The district has contracted with Mountain States Hydro, LLC, to build the plant,” Woodka said, “with construction to begin in September. It is scheduled to be completed during the fall and winter months when releases from Pueblo Dam generally decrease.”

It’s anticipated that the plant will be online by spring 2018.

The plant will cost about $19 million to build. Last year, the district secured a $17.2 million loan from the Colorado Water Conservation Board, with the district’s business enterprise providing matching funds.

Over time, those funds will be paid off by revenues from the sale of power.

For a decade, power from the plant will be purchased by the city of Fountain and by Colorado Springs Utilities for use at Fort Carson.

“After that, Fountain intends to purchase all of the power for at least 20 more years,” Woodka said.

The plant will generate up to 7.5 megawatts of power by using three turbines capable of producing power from 35 to 800 cubic feet per second of flow in the Arkansas River. Water will pass through a connection that was built into the service line for the Southern Delivery System, then into the Arkansas River.

Projections by district staff show that an average of 28 million kilowatt hours will be produced annually, with about $1.4 million in average revenue per year.

This money will be used to pay off the CWCB loan and to satisfy contractual agreements with the Bureau of Reclamation, as well as a carriage agreement with Black Hills Energy. All remaining funds will go to enterprise activities, including the Arkansas Valley Conduit.

@CSUutilities hydroelectric plant at Pueblo Reservoir will supply Fort Carson

The new north outlet works at Pueblo Dam — Photo/MWH Global

From The Colorado Springs Gazette (Conrad Swanson):

A hydroelectric plant is planned for construction downstream from the Pueblo Dam to generate renewable energy for Fort Carson. Developers are just waiting for the signal to start building.

The plant would significantly increase the amount of renewable energy Fort Carson consumes, fitting with the post’s “Net Zero” goals of becoming more environmentally friendly.

The Colorado Springs Utilities board will consider adding a military sales tariff during its meeting Wednesday. The tariff would cover costs for Utilities to act as an intermediary, selling the power to Fort Carson after buying it from the Southeastern Colorado Water Conservancy District, which would build and operate the plant, said Utilities spokeswoman Amy Trinidad.

Adding the tariff is the “last step” before the district can begin construction, said spokesman Chris Woodka.

“We’ve been ready to pull the trigger on this since January,” he said.

Currently, 8 percent of Fort Carson’s electricity is generated on-site through renewable sources such as solar panels, post spokeswoman Dani Johnson said. She could not say whether the post buys any renewable energy from off-site sources.

But Trinidad said Fort Carson does buy some renewable energy from Utilities. She could not say how much, citing customer privacy. The proposed hydroelectric deal would make up 7 percent of the post’s annual electricity purchase from Utilities, she said.

If the tariff is added, the proposal then will go before the City Council, consisting of the same members as the Utilities board, next month. If the council approves the move, construction on the plant can begin, Woodka said.

The plant would cost about $19 million, most of which comes from a loan the district took out, he said. In the years to come, energy sales are expected to cover the costs and eventually generate funds.

The plant’s construction will not have a financial impact on Utilities ratepayers, Trinidad said.

The plant is expected to generate up to 7.5 megawatts of electricity, Woodka said. Fort Carson will buy half of that, and Fountain Utilities will buy the other half.

The plant could be operational by May 2018, a peak time for generating hydroelectricity because of the high volume of water flowing from the Pueblo Dam, Woodka said.

Utilities then would buy the electricity, which will be transmitted onto its grid, and then sell it to Fort Carson without marking up the price, Trinidad said.

In the past, Fort Carson bought renewable wind energy through Utilities under short-term contracts, which have since expired, said Steve Carr, Utilities’ key account manager for Fort Carson. The pending hydroelectricity contract would last until the end of 2027.

Fryingpan-Arkansas Project via the Southeastern Colorado Water Conservancy District

From the Southeastern Colorado Water Conservancy District via The Pueblo Chieftain:

A hefty snowpack and relatively full municipal storage means farms will get a larger than usual share of Fryingpan-Arkansas Project water this year.

About 80 percent, or 44,000 of the 55,000 acre-feet allocated by the Southeastern Colorado Water Conservancy District board Thursday, will go to irrigation companies throughout the Arkansas River basin. In addition, agricultural interests were allocated 20,000 acre-feet in return flows. A total of 28 ditches and three well groups will benefit.

That water comes on top of about 12,000 acre-feet leased earlier this year by Pueblo Water to farms, ditches or well associations…

“The extra water which the municipalities have no place to store is always welcome in Crowley County and the Arkansas Valley,” said Carl McClure, a Crowley County farmer who heads the allocation committee of the district.

The Southeastern allocation is about 25 percent above average, thanks to a snowpack that remains heavy and is still growing. The Fry-Ark water is imported from the Upper Colorado River basin through the 5.4-mile long Boustead Tunnel into Turquoise Lake.

More than half of the water is reserved for cities, but if they have no place to store it, it is allocated to agriculture. Fry-Ark water sells for $7 per acre-foot, plus surcharges that pay for programs that benefit water users. By comparison, Pueblo Water leases averaged $55 per acre-foot this year.

The district expects to bring more than 68,000 acre-feet into the Arkansas River basin this year, but prior commitments such as the Pueblo fish hatchery, evaporation and transit loss adjustments are made before the amount of water sold can be determined.

The Southeastern district guarantees 80 percent of the water, holding back some in case the runoff fails to meet projections. The Boustead Tunnel can only take a certain amount of water at one time and only when sufficient flows, as determined by court decrees, are available on the Western Slope. The remaining 20 percent is delivered when the district determines flows will be sufficient.

That should not be a problem this year, as the Bureau of Reclamation projected imports to be about 77,000 acre-feet, well above the amount Southeastern factored in.

For municipal allocations, the Fountain Valley Authority was able to take about 7,000 acre-feet, or half of its entitlement. Pueblo Water and Pueblo West are not seeking any water. Cities east of Pueblo claimed 3,132 acre-feet, while cities west of Pueblo were allocated 1,164. Most chose not to request their full allocation.

Allocating Fry-Ark water is the primary function of the Southeastern District, which was formed in 1958 to provide supplemental water to the Arkansas River basin.

Gary Bostrom — “Bob Appel Friend of the Arkansas River”

Arkansas River Basin via The Encyclopedia of Earth

From the Southeastern Colorado Water Conservancy District via The Pueblo Chieftain:

His career included shepherding Colorado Springs’ water supply through a labyrinth of changing regulations and requirements during a time when the city experienced explosive growth and environmental pressures.

Now he’s working to improve water supplies throughout the entire Arkansas River basin.

Gary Bostrom, 60, retired water services chief for Colorado Springs Utilities and now a member of the Southeastern Colorado Water Conservancy District board, received the Bob Appel Friend of the Arkansas River award [April 27, 2017] at the Arkansas River Basin Water Forum.

“It’s a great honor to be recognized, and to be included among all of the past winners of this award,” Bostrom said.

The forum met last week in Colorado Springs.

“I’d like to wake on the morning they turned on the switch for Southern Delivery System, and retire in the afternoon,” Bostrom once told a reporter.

He didn’t quite make the finish line, retiring in 2015, about a year before SDS went online. The $825 million pipeline project was completed in April 2016, after a 20-year planning process that required negotiations with communities up and down the Arkansas River.

Bostrom’s concern for Arkansas Valley water issues continues. He joined to the Southeastern District board in 2009, and is now vice president.

The district annually allocates supplemental water to cities and farms in the Arkansas River basin, participates in the Upper Arkansas River voluntary flow management program, is constructing a hydropower plant at Pueblo Dam and is preparing for construction of the Arkansas Valley Conduit.

Bostrom also is a member of the Colorado Springs Parks and Recreation Advisory Board.

He and his wife Sara have four children and three grandchildren and live in Colorado Springs.

Durango: “Solving the Water Funding Puzzle” conference recap

Animas River through Durango August 9, 2015, after the Gold King Mine spill. Photo credit Grace Hood

From The Cortez Journal (Jim Mimiaga):

The Southwestern Water Conservation District hosted a conference titled “Solving the Water Funding Puzzle” at the DoubleTree Hotel in Durango to confront the budget crisis.

Colorado’s overriding challenge lies in how water management is funded, said Bill Levine, budget director for the state Department of Natural Resources.

Much of the state’s revenue stream for water-supply management is tied to federal energy, including severance taxes from the oil and gas industry, which exposes Colorado to the ebb and flow of the volatile oil and gas industry.

“When energy values drop, so does the revenue stream, so it is by nature volatile,” Levine said. “Revenue that is not tied to the energy industry is needed.”

Because of a weak energy market and a costly court ruling, the state’s revenues from severance taxes dropped from $271 million in fiscal year 2015 to $67 million in fiscal year 2016.

And in 2016, the state lost a lawsuit brought by British Petroleum over severance taxes. The state is refunding energy companies – $113 million so far – after the Colorado Supreme Court ruled that the companies qualify for a deduction the Department of Revenue had been denying them.

State and local agencies have paid a price.

The drop in revenues from federal minerals caused program budgets for the Colorado Water Conservation Board to drop from $14 million in 2015 to $8 million in 2016.

The cuts wiped out funding for boat inspection programs needed to stop invasive quagga and zebra mussels, which has limited boating at McPhee Reservoir and Totten Lake in Montezuma County.

Grant programs of the Department of Local Affairs also were cut, because they too depend on severance tax revenues.

Severance tax revenues have funded the Southwest Basin Roundtable grant program that supports water projects in southwest Colorado. Funding will suffer, and there will be less grant money, said roundtable chair Mike Preston.

In La Plata County, the basin fund helped to finance an inlet from Lake Nighthorse as part of a plan to provide municipal water for Fort Lewis Mesa, which includes the communities of Breen and Kline.

It’s been tapped to support a project improving water supply at Lake Durango, which serves Durango West communities. And the grants have supported an Animas River community forum, which is establishing emergency response protocols to protect water users in the event of a toxic spill such as the 2015 Gold King Mine disaster.

Finding funding solutions
Several potential sources of revenue for water-related infrastructure and programs were presented at the packed conference.

Emily Brumit, of the Colorado Water Congress, gave an update on legislative proposals and a ballot initiative that would support water-related budgets, including the struggling boat-inspection programs.

For example, Senate Bill 259 proposes to replace lost severance tax revenues with $10 million from the general fund to support forest restoration, species conservation and boat inspection programs. House Bill 1321, introduced this week, would create a revenue stream through a sticker fee to fund boat inspection programs.

And Initiative 20 focuses on oil and gas severance taxes. Its primary goal is to increase the severance tax rate, eliminate the severance tax credit that is based on property taxes, eliminate the stripper well exemption and require that a portion of severance tax revenue be paid for specific purposes…

Legislators are considering asking voters to approve a container tax on beverages to raise $100 million to $200 million per year for water-related needs. A vote could end-run the Taxpayers Bill of Rights, exempting it from TABOR revenue caps.

Other ideas presented at the conference included a new water fee paid by residential consumers, new water tap fees and new tourism fees…

Government specialist Christine Arbogast said the idea of private-public partnerships is popular for new money. But she does not believe they are a viable local solution locally.

“The expected rate of return of 5-8 percent from private investors is too much for the tax base of smaller communities,” she said.

La Plata County Commissioner Brad Blake urged the crowd to take a long-term vision on solving the budget crisis, like previous generations did.

“We have good water rights, but don’t have a way to move it around well,” he said. “The pioneers built dams, ditches and levees. Now we are tasked with looking ahead to provide water infrastructure in our area. We need more public involvement so we get all the help we need to overcome this monumental task.”

Pueblo West contracts for 6,000 acre-feet of storage in Lake Pueblo

Pueblo West
Pueblo West

From The Pueblo West View (Kristen M. White):

Pueblo West will have the right to store water in Pueblo Reservoir in the future, should the storage be needed, after the Metropolitan District agreed to enter into a subcontract with the Southeastern Colorado Water Conservancy District…

The master plan contract is between the Bureau of Reclamation and the water district, and Pueblo West now has a subcontract with water district for its storage rights.

The contract allows Pueblo West to begin paying for 10 acre feet, at the starting rate of $40.04 per acre foot of water, in 2017. But the contract gives Pueblo West the ability to store as much as 6,000 acre feet of water in the future should the storage ability be necessary.