Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 24-1125.01 Clare Haffner x6137 HOUSE BILL 24-1435 House Committees Senate Committees Agriculture, Water & Natural Resources Agriculture & Natural Resources Appropriations Appropriations A BILL FOR AN ACT C ONCERNING THE FUNDING OF COLORADO WATER CONSERVATION101 BOARD PROJECTS, AND, IN CONNECTION THEREWITH , MAKING102 AN APPROPRIATION.103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill appropriates the following amounts for the 2024-25 state fiscal year from the Colorado water conservation board (CWCB) construction fund to the CWCB or the division of water resources in the department of natural resources for the following projects: ! Continuation of the satellite monitoring system, $380,000 SENATE 2nd Reading Unamended April 30, 2024 HOUSE 3rd Reading Unamended April 19, 2024 HOUSE 2nd Reading Unamended April 18, 2024 HOUSE SPONSORSHIP McCormick and Catlin, Amabile, Bird, Boesenecker, Brown, Daugherty, Duran, Froelich, Hamrick, Jodeh, Joseph, Kipp, Lieder, Lindstedt, Lukens, Lynch, Marshall, Marvin, Mauro, McCluskie, McLachlan, Ortiz, Rutinel, Sirota, Snyder, Story, Taggart, Titone, Velasco, Weissman, Young SENATE SPONSORSHIP Roberts and Simpson, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. (section 1 of the bill); ! Continuation of the floodplain map modernization program, $1,000,000 (section 2); ! Continuation of the weather modification permitting program, $500,000 (section 3); ! Continuation of the Colorado Mesonet project, $200,000 (section 5); ! Continuation of the water forecasting partnership project, $2,000,000 (section 6); ! Support of modeling and data analyses for the upper Colorado river commission's development of operational guidelines for Lake Powell and Lake Mead, $500,000 (section 7); ! Support for the division of water resources' statewide diversion telemetry project, $1,827,500 (section 8); ! Support of a study update and scenario analyses for groundwater resource goals for the southern high plains designated groundwater basin, $250,000 (section 9); and ! Support for projects that support drought planning and mitigation, $4,000,000 (section 11). Section 4 directs the state treasurer to transfer up to $2,000,000 from the CWCB construction fund to the CWCB litigation fund on July 1, 2024. The CWCB is authorized to make loans from the severance tax perpetual base fund or the CWCB construction fund: ! In an amount up to $155,650,000 to the Windy Gap firming project (section 12); and ! In an amount up to $101,000,000 to the northern integrated supply project water activity enterprise owned by the northern Colorado water conservancy district to develop a new regional water supply project (section 13). Section 10 directs the state treasurer to transfer $2,000,000 on July 1, 2024, from the CWCB construction fund to the turf replacement fund to finance the state turf replacement program. Section 14 directs the state treasurer to transfer $20,000,000 on July 1, 2024, from the severance tax perpetual base fund to the CWCB construction fund for the purchase and sale agreement between the Colorado river water conservation district and the public service company of Colorado for the purchase of the water rights associated with the Shoshone power plant. Section 15 appropriates $23,300,000 from the water plan implementation cash fund to the CWCB to fund grants that will help implement the state water plan. Sections 16 and 17 amend current law, under which the state treasurer is directed to make 2 transfers of $2.5 million each from the 1435 -2- economic recovery and relief cash fund to the CWCB construction fund. The CWCB is required to use the $2.5 million from one of the transfers for the direct and indirect costs of providing assistance to political subdivisions and other entities applying for federal "Infrastructure Investment and Jobs Act" money and other federally available money related to water funding opportunities (water funding purposes). The CWCB is required to use the $2.5 million from the other transfer for issuing grants to political subdivisions of the state or other entities for the hiring of temporary employees, contractors, or both that will assist those political subdivisions and other entities in applying for federal "Infrastructure Investment and Jobs Act" money and other federally available money related to natural resource management (natural resource management purposes). Sections 16 and 17 allow the CWCB, on or after July 1, 2024, to expend money from either of the 2 transfers for either the water funding purposes or the natural resource management purposes. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Continuation of the satellite monitoring system2 - operation and maintenance - appropriation. (1) For the 2024-253 state fiscal year, $380,000 is appropriated to the department of natural4 resources for use by the division of water resources. This appropriation5 is from the Colorado water conservation board construction fund created6 in section 37-60-121, C.R.S. To implement this section, the division of7 water resources may use this appropriation to install, maintain, and8 operate satellite-monitored stream gauges and lysimeters for water rights9 administration and data collection pursuant to section 37-80-102 (10),10 C.R.S.11 (2) The money appropriated in subsection (1) of this section12 remains available for the designated purposes until it is fully expended.13 SECTION 2. Continuation of the Colorado floodplain map14 modernization program - appropriation. (1) For the 2024-25 state15 fiscal year, $1,000,000 is appropriated to the department of natural16 1435-3- resources for use by the Colorado water conservation board. This1 appropriation is from the Colorado water conservation board construction2 fund created in section 37-60-121, C.R.S. To implement this section, the3 Colorado water conservation board may use this appropriation to continue4 to assist with the preparation of revised and improved floodplain studies5 and maps for communities throughout Colorado and participate in6 federally sponsored floodplain map modernization activities.7 (2) The money appropriated in subsection (1) of this section8 remains available for the designated purposes until it is fully expended.9 SECTION 3. Continuation of the weather modification10 permitting program - appropriation. (1) For the 2024-25 state fiscal11 year, $500,000 is appropriated to the department of natural resources for12 use by the Colorado water conservation board. This appropriation is from13 the Colorado water conservation board construction fund created in14 section 37-60-121, C.R.S. To implement this section, the Colorado water15 conservation board may use this appropriation to assist water16 conservation and conservancy districts with the development of cloud17 seeding programs to provide benefits to recreation, streams, and18 reservoirs through snowpack enhancement.19 (2) The money appropriated in subsection (1) of this section20 remains available for the designated purposes until it is fully expended.21 SECTION 4. Restoration of litigation fund cash balance -22 transfer. On July 1, 2024, the state treasurer shall transfer $2,000,000, or23 so much thereof as may be necessary to restore the balance of the24 litigation fund to $2,000,000, from the unreserved cash in the Colorado25 water conservation board construction fund created in section 37-60-121,26 C.R.S., to the litigation fund created in section 37-60-121 (2.5), C.R.S.,27 1435 -4- to assist in addressing legal issues associated with compact compliance1 or any other litigation activities as specified under section 37-60-121,2 C.R.S.3 SECTION 5. Continuation of the Colorado Mesonet project4 - appropriation. (1) For the 2024-25 state fiscal year, $200,000 is5 appropriated to the department of natural resources for use by the6 Colorado water conservation board. This appropriation is from the7 Colorado water conservation board construction fund created in section8 37-60-121, C.R.S. To implement this section, the Colorado water9 conservation board may use this appropriation to support the Colorado10 Mesonet, including for the following activities: Operation, maintenance,11 travel, communications, and database and website management for12 temperature and precipitation stations.13 (2) The money appropriated in subsection (1) of this section14 remains available for the designated purposes until it is fully expended.15 SECTION 6. Continuation of the water forecasting16 partnership project - appropriation. (1) For the 2024-25 state fiscal17 year, $2,000,000 is appropriated to the department of natural resources18 for use by the Colorado water conservation board. This appropriation is19 from the Colorado water conservation board construction fund created in20 section 37-60-121, C.R.S. To implement this section, the Colorado water21 conservation board may use this appropriation to support the development22 of new ground and aerial remote sensing data, to develop hydrologic23 modeling practices, to provide reliable volumetric water supply24 forecasting, and to provide better characterization of snowpack.25 (2) The money appropriated in subsection (1) of this section26 remains available for the designated purposes until it is fully expended.27 1435 -5- SECTION 7. Continuation of the modeling and data analyses1 for the upper Colorado river commission - appropriation. (1) For the2 2024-25 state fiscal year, $500,000 is appropriated to the department of3 natural resources for use by the Colorado water conservation board. This4 appropriation is from the Colorado water conservation board construction5 fund created in section 37-60-121, C.R.S. To implement this section, the6 Colorado water conservation board may use this appropriation to provide7 support to the upper Colorado river commission's interstate planning and8 negotiation efforts, including the following modeling and data analyses:9 Streamgaging and streamflow, runoff forecasting, consumptive use,10 reservoir operations and evaporation, and drought contingency planning.11 (2) The money appropriated in subsection (1) of this section12 remains available for the designated purposes until it is fully expended.13 SECTION 8. Statewide diversion telemetry project -14 appropriation. (1) For the 2024-25 state fiscal year, $1,827,500 is15 appropriated to the department of natural resources for use by the division16 of water resources. This appropriation is from the Colorado water17 conservation board construction fund created in section 37-60-121,18 C.R.S. To implement this section, the division of water resources may use19 this appropriation to fund the installation of telemetry equipment at sites20 across Colorado.21 (2) The money appropriated in subsection (1) of this section22 remains available for the designated purposes until it is fully expended.23 SECTION 9. Southern high plains groundwater study update24 - appropriation. (1) For the 2024-25 state fiscal year, $250,000 is25 appropriated to the department of natural resources for use by the26 Colorado water conservation board. This appropriation is from the27 1435 -6- Colorado water conservation board construction fund created in section1 37-60-121, C.R.S. To implement this section, the Colorado water2 conservation board may use this appropriation to update a 2002 study in3 order to provide scenario analyses and community facilitation to establish4 groundwater resource goals for residents of the southern high plains of5 Colorado.6 (2) The money appropriated in subsection (1) of this section7 remains available for the designated purposes until it is fully expended or8 the study update is complete.9 SECTION 10. Continuation of the state turf replacement10 program - transfer - appropriation. (1) On July 1, 2024, the state11 treasurer shall transfer $2,000,000 from the Colorado water conservation12 board construction fund created in section 37-60-121, C.R.S., to the turf13 replacement fund created in section 37-60-135 (6)(a)(I), C.R.S., to14 finance the state turf replacement program created in section 37-60-135,15 C.R.S.16 (2) (a) For the 2024-25 state fiscal year, $2,000,000 is17 appropriated to the department of natural resources for use by the18 Colorado water conservation board. This appropriation is from the turf19 replacement fund created in section 37-60-135 (6)(a)(I), C.R.S. To20 implement this section, the Colorado water conservation board may use21 this appropriation for the state turf replacement program pursuant to22 section 37-60-135, C.R.S., including to cover the direct and indirect costs23 of administering one or more turf replacement programs.24 (b) The money appropriated in subsection (2)(a) of this section25 remains available for the designated purposes until June 30, 2028.26 SECTION 11. Drought resilience investment - appropriation.27 1435 -7- (1) For the 2024-25 state fiscal year, $4,000,000 is appropriated to the1 department of natural resources for use by the Colorado water2 conservation board. This appropriation is from the Colorado water3 conservation board construction fund created in section 37-60-121,4 C.R.S. To implement this section, the Colorado water conservation board5 may use this appropriation:6 (a) To advance projects within and complementary to the 20237 state water plan that support drought planning, practical implementation8 of drought mitigation techniques, education, guidance, and training; and9 (b) For projects that focus on the following areas: Drought10 resilience workshops, state water plan outreach campaign, water loss11 prevention and validator training, adaptive and critical drought projects,12 storage analysis opportunities and alternatives, and development of a13 water conservation handbook.14 (2) The money appropriated in subsection (1) of this section15 remains available for the designated purposes until it is fully expended.16 SECTION 12. Increased water project loan authorization -17 Windy Gap firming project. (1) Pursuant to section 37-60-122 (1)(b),18 C.R.S., the Colorado water conservation board is authorized to make19 loans in the amount of up to $155,650,000 from the Colorado water20 conservation board construction fund created in section 37-60-121,21 C.R.S., to the Windy Gap firming project water activity enterprise for the22 completion of the Windy Gap firming project.23 (2) The money authorized in subsection (1) of this section remains24 available for the designated purposes until it is fully expended.25 (3) The Colorado water conservation board may make loans for26 the project specified in subsection (1) of this section from money that is27 1435 -8- or may become available to the Colorado water conservation board1 construction fund. The total amount of the loans will be in the amount2 listed in subsection (1) of this section plus or minus the amount, if any,3 as may be justified by reason of ordinary fluctuations in construction4 costs as indicated by the engineering cost indices applicable to the types5 of construction required for the project or as may be justified by reason6 of changes in the plans for the project due to differing or unforeseen site7 conditions, errors or omissions in the plans and specifications, changes8 instituted by regulatory agencies, or changes in material quantities beyond9 contract limits.10 SECTION 13. Northern integrated supply project - loan11 authorization. (1) Pursuant to section 39-29-109 (2)(a)(I.5), C.R.S., the12 Colorado water conservation board is authorized to make loans in the13 amount of up to $101,000,000 from the severance tax perpetual base fund14 created in section 39-29-109 (2)(a), C.R.S., to the northern integrated15 supply project water activity enterprise owned by the northern Colorado16 water conservancy district to develop a new regional water supply project.17 The project will provide new water supplies annually for eleven18 communities and four water districts in the northern front range.19 (2) The money authorized in subsection (1) of this section remains20 available for the designated purposes until it is fully expended.21 (3) The Colorado water conservation board may make loans for22 the project specified in subsection (1) of this section from money that is23 or may become available to the severance tax perpetual base fund. The24 total amount of the loans will be in the amount listed in subsection (1) of25 this section plus or minus the amount, if any, as may be justified by26 reason of ordinary fluctuations in construction costs applicable to the27 1435 -9- types of construction required for the project or as may be justified by1 reason of changes in the plans for the project due to differing or2 unforeseen site conditions, errors or omissions in the plans and3 specifications, changes instituted by regulatory agencies, or changes in4 material quantities beyond contract limits.5 SECTION 14. Colorado river water conservation district -6 purchase of Shoshone power plant water rights - transfer -7 appropriation. (1) On July 1, 2024, the state treasurer shall transfer8 $20,000,000 from the severance tax perpetual base fund created in section9 39-29-109 (2)(a), C.R.S., to the Colorado water conservation board10 construction fund created in section 37-60-121, C.R.S., to support the11 purchase and sale agreement between the Colorado river water12 conservation district and the public service company of Colorado for the13 purchase of the water rights associated with the Shoshone power plant.14 (2) (a) For the 2024-25 state fiscal year, $20,000,000 is15 appropriated to the department of natural resources for use by the16 Colorado water conservation board. This appropriation is from the17 Colorado water conservation board construction fund created in section18 37-60-121, C.R.S. To implement this subsection (2)(a), the Colorado19 water conservation board may use this appropriation to partner with the20 Colorado river water conservation district in the purchase of the water21 rights owned by the public service company of Colorado and currently22 used for the operation of the Shoshone power plant. The Colorado water23 conservation board shall vote to release the money to the Colorado river24 water conservation district after confirming that the closing conditions of25 the purchase and sale agreement between the Colorado river water26 conservation district and the public service company of Colorado have27 1435 -10- been met.1 (b) The money appropriated in subsection (2)(a) of this section2 remains available for the designated purposes until June 30, 2031.3 SECTION 15. Grant-making for projects that assist in4 implementing the state water plan - appropriation. (1) For the5 2024-25 state fiscal year, $23,300,000 is appropriated to the department6 of natural resources for use by the Colorado water conservation board.7 This appropriation is from the water plan implementation cash fund8 created in section 37-60-123.3 (1)(a), C.R.S. To implement this9 subsection (1), the Colorado water conservation board may use this10 appropriation for grant-making for projects that assist in the11 implementation of the state water plan pursuant to section 37-60-106.312 (6), C.R.S., through the Colorado water conservation board's application13 and guidelines process.14 (2) The money appropriated in subsection (1) of this section15 remains available for the designated purposes until it is fully expended.16 SECTION 16. In Colorado Revised Statutes, 24-75-228, add17 (2.5)(a.5) as follows:18 24-75-228. Economic recovery and relief cash fund - creation19 - allowable uses - interim task force - report - legislative declaration20 - definitions - repeal. (2.5) (a.5) N OTWITHSTANDING SUBSECTIONS21 (2.5)(a)(IV) AND (2.5)(a)(V) OF THIS SECTION, ON OR AFTER JULY 1, 2024,22 ANY MONEY TRANSFERRED BY THE STATE TREASURER TO THE COLORADO23 WATER CONSERVATION BOARD CONSTRUCTION FUND , CREATED IN SECTION24 37-60-121 (1)(a), PURSUANT TO SUBSECTIONS (2.5)(a)(IV) AND25 (2.5)(a)(V) OF THIS SECTION MAY BE EXPENDED FOR ANY OF THE PURPOSES26 SPECIFIED IN SECTION 37-60-121 (13) OR (14).27 1435 -11- SECTION 17. In Colorado Revised Statutes, 37-60-121, add (15)1 as follows:2 37-60-121. Colorado water conservation board construction3 fund - creation - nature of fund - funds for investigations -4 contributions - use for augmenting the general fund - funds created5 - rules - repeal. (15) N OTWITHSTANDING SUBSECTIONS (13) AND (14) OF6 THIS SECTION, ON OR AFTER JULY 1, 2024, THE BOARD MAY USE THE7 MONEY TRANSFERRED PURSUANT TO SECTION 24-75-228 (2.5)(a)(IV) AND8 (2.5)(a)(V) FOR ANY OF THE PURPOSES SPECIFIED IN SUBSECTION (13) OR9 (14) OF THIS SECTION.10 SECTION 18. Safety clause. The general assembly finds,11 determines, and declares that this act is necessary for the immediate12 preservation of the public peace, health, or safety or for appropriations for13 the support and maintenance of the departments of the state and state14 institutions.15 1435 -12-