September 23, 2002

Water Quality Forum
DRCOG - September 23, 2002

Proposed Agenda

12:30 p.m. Agenda Review, Introductions, Web site Update (e-maildistribution)

12:40 p.m. Legislative Update

1:00 p.m. WQCC Update (Paul Frohardt)
--including update on 303(d) list informational hearing

1:25 p.m. Natural Disaster Water Quality Issues (Carl Norbeck)

1:45 p.m. Break

2:00 p.m. Farm Bill: Water Quality Project Possibilities (Jeani Frickey)

2:30 p.m. Impacted Water Supply Study Update (Dave Akers)

2:45 p.m. Working Group Updates (Chairs)

3:00 p.m. Develop and agree on next steps/agenda items

3:15 p.m. Adjourn

Announcement

There will be an Arid West Water Quality Issues Symposium I in Tempe, Arizona on December 11, 2002. For more information contact Paul Frohardt, 303-692-3468.

Legislative Update:

The Legislative Interim Water Committee has been dealing with primarily water quantity issues given the severity of the drought. The bills the Interim Water Committee is sponsoring are:

Increasing fees for water well inspections and adding 8 employees to create a credible well inspection program.
Giving the Interim Water Committee a permanent status and allowing the Committee to meet twice during the regular session in addition to its regular meetings after the General Assembly adjourns.

Extending the deadlines for groundwater rules in the Denver basin and San Luis Valley. Gives the state engineer 6 more years to complete his aquifer study relating to changing Denver Basin aquifer augmentation standards. Give State Engineer another year to promulgate similar rules for the Rio Grande Basin. Douglas County and the Farm Bureau are the most interested in the augmentation portion which calls for replacing actual depletions caused by
Denver Basin pumping.

Other possible legislation may include:

The "Big Straw, Colorado River Return Project" authorizing up to $500,00 for a study.

$10 Billion bill for the debt, revenue-backed financing of water projects (Bill would ask the questions to be taken to the people to authorize the bonds)

A bill for the mitigation of agricultural transfers and to improve transfer efficiencies.

A bill to encourage or reward water conservation; may invoke old "saved and salvaged water" debate
Prohibition against covenants requiring high water use landscaping (e.g. blue grass)

Possible "Right to Float" initiative or legislation to preclude an initiative

Legislation that indicates individuals and non-state entities have standing in compact disputes
enforcement/compliance cases

The Denver newspapers reported there may be as many as 90 water bills, many related to drought conditions!

Possible federal legislation: Rep. Udall is circulating a 2nd draft of the "Good Samaritan" bill for input. The WQF will have a presentation in November.

Senator Allard's office is looking into forest management issues (e.g thinning of trees) to increase water yield.

The Interim Water Committee chose not to endorse the following, but we may see as legislation:

A sales tax to build water projects. Dick MacRavey of the Water Congress has been pushing this concept, but the Governor's office and Rep. Hoppe have indicated there has been insufficient discussion to pass this type of tax increase.

Emergency instream flow donations during a drought was proposed by Ken Salazar, but thought to be poorly drafted because the bill as proposed contained no due process or injury standard provisions. Rod Kuharich of CWCB and Hal Simpson, SEO, agreed to pursue a limited concept through amending the substitute supply statute. The Water Congress will probably be involved. Pending re-election Representative Rippy will be the prime sponsor.

Water Quality Control Commission Update
(Paul Frohardt)

The WQCC took action on the revisions to the Arkansas and Rio Grande water quality standards. These revisions will be effective January 20, 2003

A Arkansas standards rulemaking hearing is scheduled for February 2003 re: classification of some tributaries and several "loose ends" from the July 2002 hearing.

September 2002 Section 303(d) list had its final action for approved list. The list is available on the WQCC web site. EPA is requesting additional information for 15 of these segments for possible disapproval

October 15, 2002 meeting will include the South Platte Basin "Issues Scoping Hearing" and the annual public meeting to air broad water quality issues

November 12 meeting (in Steamboat Springs) will include an Issues Formulation Hearing on the Upper and Lower Colorado River, and the draft guidance document regarding SB 87 (the new income tax "check off" for watersheds)

The WQCC, The Colorado Water Conservation Board, and the Colorado Watershed Association met to draft guidance for the implementation of SB 87. Draft of the guidance will be on the WQCC website in October.

EPA has approved Colorado radionucide standards which addresses the discrepancies between the Clean Water Act and the Atomic Energy Act case-by-case issues may arise regarding implementation of the standards.

December meeting will include a rulemaking hearing on DIMP standards

January 2003 agenda will include the Colorado Discharge Permit System Regulations rulemaking hearing

Natural Disaster Water Quality Issues (Carl Norbeck)

There is multi-agency coordination for burned area rehabilitation, monitoring, and water quality impacts

The Cheeseman Reservoir area is the area of greatest concern right now for the Division.

There are numerous funding programs available. [See funding programs at: http://www.dola.state.co.us/lgs/ta/utility/documents/
droughtfirematrix.pdf]

Funding programs are generally set up for "events" as opposed to an "unfolding" of issues so some of the needs have been difficult for fund.

Watering restriction information is available on the Colorado Municipal League web site at: http://www.cml.org

Of greatest concern: What is next year going to be like?

Farm Bill: Water Quality Project Possibilities
(Jeani Frickey)

[The whole presentation is available by contacting Jfrickey@colofb.com]

What is the Farm Bill?
"Farm Security and Rural Investment Act of 2002"
First Farm Bill was passed in 1930s during The Great Depression
Authorization legislation that sets U.S. farm policy
Re-authorized an average of every five years
Includes nutrition programs (i.e.WIC, food stamps, TANF) as well as more traditional farm programs

2002 Farm Bill Funding Levels
Authorizes $747 billion over next ten years
Funding approved in annual Department of Agriculture Appropriations legislation
Commodity Title (Title I): $125 billion
Conservation Title (Title II): $38 billion
Food Nutrition Title (Title IV): $535 billion

Conservation Title (Title II)
Administered by Natural Resource Conservation Service (NRCS)
Programs fall into 5 categories:
Land Retirement Programs
Working Lands Programs
Farmland Protection
Watershed Protections
Miscellaneous

Land Retirement Programs
Conservation Reserve Program (CRP)
Offers annual rental payments and cost-share assistance to farmers to establish long-term conserving covers
Maximum acreage increased to 39.2 million acres (up from 36.4 million in 1996 Farm Bill)
Many Colorado counties are already at maximum acreage
CRP continuous sign-up
Land in riparian buffers, filter strips, grass waterways, and other high-priority practices without competition.
Conservation Reserve Enhancement Program
Joint state-federal program that targets specific agriculture-related environmental issues that are significant at state or federal issue
Wetlands Reserve Program (WRP)
Allows Secretary of Agriculture to purchase easements to restore/conserve wetlands

Working Lands Programs
Environmental Quality Incentive Programs (EQIP)
Provides technical assistance, cost-share payments and incentive payments to assist crop and livestock producers with environmental and conservation improvements on the farm
FY '02: $400 million; FY '03: $700 million;FY '04: $1 billion;
FY '05-'06: $1.2 billion;FY '07: $1.3 billion
Continues 75% cost sharing, but allows 90% cost-share rate if producer is "limited-resource" or beginning farmer or rancher
Livestock producers are targeted to receive 60% of annual funding (up from 50% in 1996 Farm Bill)
Recipients must prepare conservation plan stating intended practices and describing environmental purposes
CAFOs must prepare a comprehensive nutrient management plan (CNMP)
Contract lengths are now one to ten years (in 1996 Farm Bill, they were five to ten years)
No annual payment limitations -- sum of all EQIP payments to an individual or entity cannot exceed $450,000 during FY 02-07 (in 1996 Farm Bill, producer payments limited to $10,000 per year or $50,000 for any multi-year contract)

EQIP: New Provisions
Conservation Innovation Grants
". . .[U]sed to provide grants to stimulate innovative approaches to leverage Federal investment in environmental enhancement and protection."
Awarded on competitive basis
Government and nongovernment organizations are eligible for funds
Federal share of project is capped at 50%.
Examples of programs: market-based pollution credit trading, BMPs, carbon sequestration
Ground and surface water conservation
Cost share for more efficient irrigation systems
Annual funding levels:
FY 02: $25 million; FY 03: $45 million; FY 04-07: $60 million
$50 million earmarked for Klamath Basin

New Working Lands Programs
Conservation Security Program
Adoption and maintenance of management, vegetative, and land-based structural practices that addresses one or more of following concerns: soil, water or wildlife habitat.
All agricultural land (cropland and grazing land) is eligible -- forestland that's incidental part included
Animal waste storage or treatment facilities are not eligible
Producers participate at one of three tiers
Higher tiers require greater conservation effort and offer greater payments
Lowest cost practices that meet conservation standards must be used
Payment is a percentage of national average land rental for specific land use (Tier I -- 5%; Tier II -- 10%; Tier III 15%)
Implementation regulations are still being drafted

Other Working Lands Programs
Wildlife Habitat Incentive Programs
Conservation of Private Grazing Lands
Agricultural Management
Assistance Program & Technical Assistance

Farmland Protection Programs
Farmland Protection Program
Grassland Reserve Program

Watershed Protection Programs
Small Watershed Rehabilitation Program
Funding for rehabilitation of water resources projects
Funding levels:
Direct funding: FY 03: $45 million; FY 04: $55 million; FY 05: $65 million; FY 06: $75 million; FY 07: $85 million
Loans (through CCC): FY 03: $45 million; FY 04: $50 million; FY 05: $55 million; FY 06: $60 million; FY 07: $65 million
Grassroots Source Water Protection Program
"More effectively use onsite technical assistance capacity of state rural water associations that operate wellhead or groundwater protection programs."
$5 million annually for FY 02-07

Potential Applications
Water Trading Program
Carbon Trading Programs
Comprehensive Nutrient Management Plans
Best Management Practices

More information. . .
USDA web site -- www.usda.gov
Farm Bill Links
Links to NRCS web site

Next steps: Jeannette Hillery will ask for Farm Bureau to be put on the next Nonpoint Source Council meeting on November 19th. She will confirm with Jeani Frickey

Impacted Water Supply Study Update (Dave Akers)
[A handout is available upon request]

The whole study is available by contacting Dave Akers at dave.akers@state.co.us

Working Group Updates (Chairs)
See Working Group Updates at www.cwqf.org.

Next Meeting: November 25, 2002

Potential meeting items:
1. Legislative and WQCC Updates
2. Proposed Good Samaritan Act
3. Coal Bed Methane (Ian Schmidt, EPA)
4. Guiding Principles for Aquatic Life Classifications