STAFF BUDGET BRIEFING FY 2021-22

DEPARTMENT OF NATURAL RESOURCES

(Executive Director’s Office, Division of Parks and Wildlife, Colorado Water Conservation Board, and the Division of Water Resources)

JBC WORKING DOCUMENT - SUBJECT TO CHANGE STAFF RECOMMENDATION DOES NOT REPRESENT COMMITTEE DECISION

PREPARED BY: JUSTIN BRAKKE, JBC STAFF NOVEMBER 16, 2020

JOINT BUDGET COMMITTEE STAFF 200 E. 14TH AVENUE, 3RD FLOOR · DENVER · COLORADO · 80203 TELEPHONE: (303) 866-2061 · TDD: (303) 866-3472 https://leg.colorado.gov/agencies/joint-budget-committee CONTENTS Department Overview ...... 1 Department Budget: Recent Appropriations ...... 2 Department Budget: Graphic Overview ...... 3 General Factors Driving the Budget ...... 5 Summary: FY 2020-21 Appropriation & FY 2021-22 Request ...... 8 Budget Requests Impacting FY 2020-21 – Wildfire Stimulus Package...... 11 Informational Issue: 2020 Session Budget Balancing Actions ...... 12 Issue 2: Wildfire Stimulus Package ...... 15 Issue 3: Wolves in Colorado (Proposition 114) ...... 25 Appendix A Numbers Pages (Digital Only) ...... 1 Appendix B Footnotes and Information Requests ...... 1 Appendix C Department Annual Performance Report ...... 1 Appendix D: State Parks FY 2020-21 Supplemental Capital Construction Request ...... 1

ADDITIONAL RESOURCES

Brief summaries of all bills that passed during the 2019 and 2020 legislative sessions that had a fiscal impact on this department are available in Appendix A of the annual Appropriations Report: https://leg.colorado.gov/publications/appropriations-report-fiscal-year-2020-21

The online version of the briefing document, which includes the Numbers Pages, may be found by searching the budget documents on the General Assembly’s website by visiting leg.colorado.gov/content/budget/budget-documents. Once on the budget documents page, select the name of this department's Department/Topic, "Briefing" under Type, and ensure that Start date and End date encompass the date a document was presented to the JBC.

DEPARTMENT OF NATURAL RESOURCES

DEPARTMENT OVERVIEW

The Department of Natural Resources is responsible for developing, protecting, and enhancing Colorado’s natural resources for the use and enjoyment of present and future residents and visitors. This briefing focuses on the following divisions:

 The Executive Director's Office (EDO) develops department-wide policies and provides administrative and technical support for Department divisions including: budgeting, accounting, financial management, human resources services, and the coordination of public information and environmental education. The EDO also contains the Colorado Avalanche Information Center (CAIC), which provides avalanche information and education, and promotes research for the protection of life and property.

 The Division of Parks and Wildlife (CPW) provides recreational opportunities at 42 state parks, manages more than 960 game and non-game wildlife species, issues hunting and fishing licenses, enforces wildlife regulations, and administers more than 350 state wildlife areas.

 The Colorado Water Conservation Board (CWCB) works to conserve, develop, and protect the state's water resources to ensure adequate water supply, maximize beneficial use, and reduce the impact of flooding and drought.

 The Division of Water Resources (State Engineer's Office) administers and enforces water rights, issues well permits, monitors streamflow and water use, regulates dam construction and safety, and represents Colorado in interstate water compact proceedings.

The three remaining divisions (the Division of Reclamation, Mining, and Safety, the Oil and Gas Conservation Commission, and the State Board of Land Commissioners) will be discussed in a separate staff briefing on November 16, 2020.

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DEPARTMENT BUDGET: RECENT APPROPRIATIONS

FUNDING SOURCE FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 * General Fund $32,005,418 $42,671,491 $32,699,083 $35,168,251 Cash Funds 238,857,665 260,232,426 265,309,811 247,277,826 Reappropriated Funds 7,933,687 7,523,560 7,170,362 7,528,169 Federal Funds 26,568,474 26,609,004 26,658,934 26,775,875 TOTAL FUNDS $305,365,244 $337,036,481 $331,838,190 $316,750,121

Full Time Equiv. Staff 1,464.5 1,495.9 1,511.9 1,517.0 *Requested appropriation.

SELECT DIVISIONS: RECENT APPROPRIATIONS

FUNDING SOURCE FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 * General Fund $32,005,418 $42,671,491 $32,699,083 $35,168,251 Cash Funds 211,449,002 230,081,448 235,532,101 217,454,324 Reappropriated Funds 7,708,687 7,298,560 6,945,362 7,303,169 Federal Funds 23,076,347 23,134,697 23,204,149 23,265,138 TOTAL FUNDS $274,239,454 $303,186,196 $298,380,695 $283,190,882

Full Time Equiv. Staff 1,240.4 1,247.8 1,257.8 1,262.9 *Requested appropriation

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DEPARTMENT BUDGET: GRAPHIC OVERVIEW

All charts are based on the FY 2020-21 appropriation.

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All charts are based on the FY 2020-21 appropriation.

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GENERAL FACTORS DRIVING THE BUDGET

DIVISION OF PARKS AND WILDLIFE The Division of Parks and Wildlife (CPW) is the largest division within the Department, accounting for 51.0 percent of the Department’s total appropriations for FY 2020-21. Wildlife Operations manages over 960 of the State’s wildlife species and accounts for 62.3 percent of the CPW budget. State Parks manages 42 state parks and accounts for about 27.1 percent of the budget.

The Division is almost entirely cash funded. Key sources of revenue include hunting and fishing license sales, state parks passes, State lottery proceeds, and awards from Great Outdoors Colorado (GOCO).

CPW also manages several special purpose programs, including the Off-highway Vehicle Program, the Aquatic Nuisance Species Program, and the Snowmobile Program. Funding sources vary from program to program, but most programs are supported by fee revenue, severance taxes from oil and gas production, lottery proceeds, and/or GOCO awards.

WILDLIFE OPERATIONS The largest source of funding for Wildlife Operations is the Wildlife Cash Fund, which receives most of its revenue from hunting and fishing license sales. In FY 2019-20, license sales generated about $108.2 million in revenue, a 12.4 percent increase from the previous year. Sales to non-residents make up the majority of this revenue, representing about 31.6 percent of all licenses sold and over 65.8 percent of total revenue. Total licenses sold—about 1.9 million—increased by 10.0 percent from the previous year. Sales were up for most species, but fishing licenses saw the largest increase. Wildlife Operations is also supported by federal grants ($28.0 million in FY 2019-20) and GOCO ($20.9 million).

Big game licenses provide the most wildlife revenue, but more fishing licenses are sold (FY 2019-20)

Total Revenue ($ millions) Share of licenses sold (%)

Elk hunting licenses $51.3

Fishing licenses $24.6

Small game hunting licenses* $11.8

Deer hunting licenses $10.8

Small game and fishing combo $6.4

Other big game licenses** $3.8

* Includes falconry, furbearer, prairie chicken, small game, and turkey licenses and waterfowl stamps. ** Includes pronghorn, mountain lion, bighorn sheep, desert sheep, mountain goat, moose, and bear licenses.

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STATE PARKS The two largest sources of revenue for State Parks are GOCO and lottery funds ($42.4 million in FY 2019-20) and user fees ($39.5 million), followed by other state and federal funds, including severance tax. Workload and some revenue for park operations (e.g. park passes, camping fees etc.) are driven by visitation. The increases shown in the following table are indicative of the long-term trend in visitation, which is driven by population growth and access.

State Parks Visitation FY 20-21 YTD COMPARED TO SAME

FY 17-18 ACTUAL FY 18-19 ACTUAL FY 19-20 ACTUAL PERIOD FY 19-20 (%) Number of visitors 15,321,417 14,746,030 17,066,484 124.6% Revenue $28,839,784 $29,809,312 $37,348,614 124.0%

The following table shows the top five most visited parks in the last two fiscal years, which account for about half of total visitation in the parks system.

Top 5 Most Visited State Parks PARK NAME FY 18-19 # OF VISITORS FY 19-20 # OF VISITORS Lake Pueblo 2,370,789 2,841,036 Chatfield 1,621,544 2,071,075 Cherry Creek 1,930,936 1,824,935 Golden Gate Canyon 1,101,404 1,252,493 Arkansas Headwaters 779,088 920,024

LOTTERY PROCEEDS AND GOCO BOARD GRANTS State Parks currently receives 10.0 percent of net lottery proceeds to develop, maintain, and improve state park properties and facilities. Another 50.0 percent of net lottery proceeds are allocated to the Great Outdoors Colorado Trust Fund, which is split between grants for State Parks and Wildlife.1 Grants for State Parks are used for developing new parks (capital) as well as enhancing and maintaining existing parks (operating). Wildlife grants are used for species protection, habitat development, watchable wildlife, and wildlife education. Pursuant to Article XXVII of the Colorado Constitution, GOCO grants are not subject to legislative appropriation.

Great Outdoors Colorado (GOCO) Board Grants FY 2018-19 Award FY 2019-20 Award* FY 2020-21 Award FY 2021-22 Estimate** Parks Capital Budget $12,431,795 $20,902,917 $9,791,024 $9,139,449 Parks Operating Budget 5,920,000 7,283,935 7,833,935 7,833,935 Total GOCO Grants - Parks $18,351,795 $28,186,852 $17,624,959 $16,973,384

Wildlife Base Capital Budget $7,900,000 $12,520,000 $10,548,589 $7,069,538 Wildlife Operating Budget 8,440,500 9,640,500 9,640,500 9,640,500 Total GOCO Grants - Wildlife $16,340,500 $22,160,500 $20,189,089 $16,710,038 *FY 2019-20 Parks Capital Budget includes $9.75 million for Fisher’s Peak. **FY 2021-22 amounts subject to approval.

DEPARTMENT ADMINISTRATION The Executive Director’s Office (EDO) receives the second largest amount of funding within the Department, accounting for about 20.0 percent of the Department’s total appropriations in FY 2020-

1 The remaining 40.0 percent of net lottery proceeds goes to the Conservation Trust Fund administered by the Department of Local Affairs.

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21. Almost three-quarters of EDO appropriations are related to benefits for the Department’s 1,511.9 full-time equivalent (FTE) employees, legal services, and vehicle lease payments. The EDO is mostly cash-funded, but it also receives about 30.6 percent—or $10.0 million—of the Department’s total General Fund appropriations.

COLORADO WATER CONSERVATION BOARD The Colorado Water Conservation Board (CWCB) Construction Board accounts for 11.0 percent of the Department’s total appropriations for FY 2020-21. The Board’s mission is to conserve, develop, protect and manage Colorado's water for present and future generations. As part of that mission, the Board manages the two major cash funds that support water project loans and grants in the State: the CWCB Construction Fund and the Severance Tax Perpetual Base Fund.

COLORADO WATER CONSERVATION BOARD CONSTRUCTION FUND The CWCB Construction Fund provides loans and grants for projects that will increase the beneficial consumptive use of Colorado's waters.2 Statute limits participation to projects that can repay the CWCB's investment, unless specifically authorized by the legislature, and authorizes the CWCB to approve loans of less than $10.0 million without legislative approval.3

Revenues for the Construction Fund are from interest earnings, transfers from the Severance Tax Operational and Perpetual Base Funds, and Federal Mineral Lease revenues. For FY 2020-21, H.B. 20-1403 (CWCB Construction Fund Projects) appropriates $26.2 million cash funds from the CWCB Construction Fund to the Department of Natural Resources for various water-related projects, including $7.5 million for the Colorado Water Plan.4

SEVERANCE TAX The Severance Tax Perpetual Base Fund receives 50.0 percent of money credited to the Severance Tax Trust Fund (25.0 percent of total severance tax revenues) and provides loans or grants for construction, rehabilitation, enlargement, or improvement of water projects. In FY 2020-21, 45.5 million was transferred from the Perpetual Base Fund to the General Fund for budget balancing purposes (H.B. 20-1381).

The CWCB also receives funding from the Severance Tax Operational Fund. Pursuant to Section 39- 29-109.3 (1)(d), C.R.S., the CWCB is a core program authorized to receive up to 5.0 percent of Operational Fund revenues for programs within the Division.

DIVISION OF WATER RESOURCES (STATE ENGINEER’S OFFICE) The Division of Water Resources (DWR) accounts for about two-thirds of the Department’s total General Fund appropriation. DWR uses these appropriations to manage water resources in the state of Colorado. This includes daily oversight of water allocation to farmers, industries, municipalities, and all other water users within the state. DWR also has contractual water delivery obligations for nine compacts, two United States Supreme Court decrees, and other interstate water allocation agreements.

2 Section 37-60-121 (1)(a), C.R.S. 3 Section 37-60-121 (1)(b)(IV), C.R.S. 4 For the full list of projects and transfers, see pages 2 and 3 of the fiscal note from Legislative Council.

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SUMMARY: FY 2020-21 APPROPRIATION & FY 2021-22 REQUEST

DEPARTMENT OF NATURAL RESOURCES (EDO, CPW, CWCB, DWR) TOTAL GENERAL CASH REAPPROPRIATED FEDERAL FUNDS FUND FUNDS FUNDS FUNDS FTE

FY 2020-21 APPROPRIATION: HB 20-1360 (Long Bill) 275,110,873 33,219,716 211,655,260 7,031,748 23,204,149 1,257.8 Other legislation 23,269,822 (520,633) 23,876,841 (86,386) 0 0.0 TOTAL $298,380,695 $32,699,083 $235,532,101 $6,945,362 $23,204,149 1,257.8

FY 2021-22 REQUESTED APPROPRIATION: FY 2020-21 Appropriation $298,380,695 32,699,083 $235,532,101 $6,945,362 $23,204,149 1,257.8 R01 Wildfire risk mitigation and watershed restoration 5,000,000 0 5,000,000 0 0 0.0 R02 Fishers Peak staff and operating support 208,385 0 208,385 0 0 2.0 R03 Habitat connectivity and transportation coordinator 109,410 0 109,410 0 0 1.0 R04 Support for remote avalanche control systems 85,637 0 0 85,637 0 0.8 R05 True-up off-highway revenue and costs 0 0 0 0 0 0.0 R06 Maintaining veterans free state parks access (125,000) (125,000) 0 0 0 0.0 Centrally appropriated line items 1,901,924 854,726 511,184 436,168 99,846 0.0 Annualize prior year budget actions 989,107 1,038,129 (44,925) (4,097) 0 0.1 Technical corrections 236,254 0 236,254 0 0 0.0 Indirect cost assessment 77,210 209,569 120,871 (209,569) (43,661) 0.0 Annualize prior year legislation (23,080,031) 525,954 (23,693,534) 87,481 68 1.2 Non-prioritized decision items (592,709) (34,210) (525,422) (37,813) 4,736 0.0 TOTAL $283,190,882 $35,168,251 $217,454,324 $7,303,169 $23,265,138 1,262.9

INCREASE/(DECREASE) ($15,189,813) $2,469,168 ($18,077,777) $357,807 $60,989 5.1 Percentage Change (5.1%) 7.6% (7.7%) 5.2% 0.3% 0.4%

R01 WILDFIRE RISK MITIGATION AND WATERSHED RESTORATION: The Department requests that the JBC sponsor legislation to transfer a total of $10.0 million from the General Fund to the Forest Restoration and Wildfire Risk Mitigation Grant Program (FRWRM, $5.0 million) and the Colorado Water Conservation Board (CWCB) Watershed Restoration Grant Program ($5.0 million) in FY 2021- 22. The table above only shows the $5.0 million for the Watershed Restoration Grant Program, which would require a corresponding cash funds appropriation in the Long Bill; the FRWRM Grant Program is continuously-appropriated.

R02 FISHERS PEAK STAFF AND OPERATING SUPPORT: The Department requests $208,385 cash funds starting in FY 2021-22 for a Park Ranger and a Park Resource Technician. In FY 2022-23, the Department would add an additional Park Ranger. The request also includes spending authority for temporary staffing, utilities, supplies, and fleet vehicles. The funds would come from the Parks and Outdoor Recreation Cash Fund, which is primarily supported by revenue from state parks passes.

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The Committee should be aware of the Department’s FY 2020-21 supplemental request for $20.0 million from the Capital Construction Fund for projects at twelve state parks. The request includes $3.0 million for a trail feasibility study, additional trailheads, and trail amenities at Fishers Peak. See Appendix D for the full request.

R03 HABITAT CONNECTIVITY AND TRANSPORTATION COORDINATOR: The request includes $109,410 cash funds for 1.0 FTE starting in FY 2021-22. This FTE would coordinate between CPW, the U.S. Department of the Interior, the Colorado Department of Transportation, and other parties to improve migration corridors and big game winter ranges. The funds would come from the Wildlife Cash Fund, which is primarily supported by revenue from hunting and fishing licenses.

R04 SUPPORT FOR REMOTE AVALANCHE CONTROL SYSTEMS: The request includes an increase of $85,637 reappropriated funds and 0.8 FTE for the Colorado Avalanche Information Center (CAIC) starting in FY 2021-22. The CAIC would use these funds to increase maintenance and installation of state-owned avalanche control equipment. Funding will come from the Colorado Department of Transportation as part of an ongoing effort to mitigate avalanche risk on the state transportation system. The Department also requests a statutory change to make the Colorado Avalanche Information Center Cash Fund continuously-appropriated.

R05 TRUE-UP OFF-HIGHWAY REVENUE AND COSTS: The request is a net-zero technical adjustment the State Park Operations line item to increase the contribution from the Off-highway Vehicle (OHV) Recreation Fund by $633,626 and decrease the contribution from the Parks and Outdoor Recreation Cash Fund by the same amount. According to the Department, the OHV Recreation Fund currently does not cover the costs necessary for CPW to operate the off-highway vehicle program. This move fixes that problem.

R06 MAINTAINING VETERANS FREE STATE PARKS ACCESS: The Department requests an ongoing reduction of $125,000 General Fund for State Parks beginning in FY 2021-22. CPW has sufficient cash fund resources to absorb this reduction. Veterans will still have free access to state parks.

CENTRALLY APPROPRIATED LINE ITEMS: The request includes an increase of $1.9 million total funds for centrally appropriated line items.

CENTRALLY APPROPRIATED LINE ITEMS TOTAL GENERAL CASH REAPPROPRIATED FEDERAL FUNDS FUND FUNDS FUNDS FUNDS FTE Health, life, and dental $1,073,897 $142,909 $925,345 ($34,659) $40,302 0.0 Payment to risk management 423,772 32,902 381,788 5,621 3,461 0.0 Payments to OIT 381,029 470,135 (515,128) 357,144 68,878 0.0 PERA Direct Distribution 162,702 47,144 101,486 14,072 0 0.0 Capitol Complex leased space 131,060 24,626 66,570 25,567 14,297 0.0 AED 61,437 40,621 (7,153) 20,479 7,490 0.0 SAED 61,437 40,621 (7,153) 20,479 7,490 0.0 Shift differential 9,164 0 9,164 0 0 0.0

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CENTRALLY APPROPRIATED LINE ITEMS TOTAL GENERAL CASH REAPPROPRIATED FEDERAL FUNDS FUND FUNDS FUNDS FUNDS FTE Leased space 6,912 17,263 (10,018) (2,025) 1,692 0.0 Legal services (290,387) (33,227) (248,358) 34,158 (42,960) 0.0 Workers’ compensation (104,892) 75,104 (172,504) (6,379) (1,113) 0.0 Short-term disability (8,835) (512) (8,703) 309 71 0.0 CORE (5,372) (2,860) (4,152) 1,402 238 0.0 TOTAL $1,901,924 $854,726 $511,184 $436,168 $99,846 0.0

ANNUALIZE PRIOR YEAR BUDGET ACTIONS: The request includes a net increase of $989,107 total funds for prior year budget actions.

ANNUALIZE PRIOR YEAR BUDGET ACTIONS TOTAL GENERAL CASH REAPPROPRIATED FEDERAL FUNDS FUND FUNDS FUNDS FUNDS FTE FY20-21 GF HLD reduction $1,035,518 $1,035,518 $0 $0 $0 0.0 FY 19-20 BA01 CAIC equipment maintenance 10,012 0 0 10,012 0 0.1 FY 20-21 R11 Vehicle for water commissioner 2,611 2,611 0 0 0 0.0 FY 20-21 R02 Staff for avalanche center (40,222) 0 (40,222) 0 0 0.0 FY 20-21 R04 Accounting and procurement staff (14,109) 0 0 (14,109) 0 0.0 FY 20-21 R07 Water conservation specialist (4,703) 0 (4,703) 0 0 0.0 TOTAL $989,107 $1,038,129 ($44,925) ($4,097) $0 0.1

TECHNICAL CORRECTION: The request includes a net increase of $236,254 cash funds for lease depreciation payments for CPW.

INDIRECT COST ASSESSMENT: The request includes a net increase in the indirect cost assessment for these divisions.

ANNUALIZE PRIOR YEAR LEGISLATION: The request includes a net decrease of $23.1 million total funds to reflect the FY 2021-22 impact of bills passed in previous sessions.

ANNUALIZE PRIOR YEAR LEGISLATION TOTAL GENERAL CASH REAPPROPRIATED FEDERAL FUNDS FUND FUNDS FUNDS FUNDS FTE HB 20-1379 Suspend PERA DD $2,936,082 $520,633 $2,329,063 $86,386 $0 0.0 HB 20-1153 Colorado partnership 135,513 0 135,513 0 0 1.2 SB18-200 PERA unfunded liability 28,374 5,321 21,890 1,095 68 0.0 HB 20-1403 CWCB projects (26,180,000) 0 (26,180,000) 0 0 0.0 TOTAL ($23,080,031) $525,954 ($23,693,534) $87,481 $68 1.2

NON-PRIORITIZED DECISION ITEMS: The request includes a net decrease of $592,709 total funds for non-prioritized decision items.

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BUDGET REQUESTS IMPACTING FY 2020-21 – WILDFIRE STIMULUS PACKAGE

The Governor’s 2020 budget request includes items that will be formally submitted for consideration during the supplemental budget cycle that starts in January. These items reflect the Governor’s FY 2020-21 COVID-19 Stimulus Package.

During the annual supplemental budget cycle, the Joint Budget Committee (JBC) does not have the same opportunity to discuss issues of interest directly with state agency staff as it does with budget requests submitted in November. Many of the proposed FY 2020-21 stimulus requests include substantial investments of General Fund. Committee members are encouraged to raise questions related to these proposals during this JBC staff briefing so that staff can include these items on the agency’s budget hearing agenda. No action is required to be taken by the JBC at this time.

FY 2020-21 SUPPLEMENTAL WILDFIRE STIMULUS PROPOSAL -- TO BE ACTED ON IN JANUARY 20211 TOTAL GENERAL CASH REAPPROPRIATED FEDERAL

FUNDS FUND FUNDS FUNDS FUNDS FTE

FY 2020-21 Proposed Stimulus Package DNR Forest Restoration and Wildfire Risk Mitigation grants $6,000,000 $6,000,000 $0 $0 $0 0.0 CWCB Watershed Restoration grants 4,000,000 4,000,000 0 0 0 0.0 DNR Subtotal $10,000,000 $10,000,000 $0 $0 $0 0.0

Public Safety Colorado Firefighting Air Corps $32,842,500 $0 $32,842,500 $0 $0 0.0 Firehawk Helicopter 24,000,000 24,000,000 0 0 0 0.0 Large air tanker - 110 day contract 5,362,500 5,362,500 0 0 0 0.0 Local match for federal hazard mitigation grants 3,000,000 3,000,000 0 0 0 0.0 State assistance for local capacity 1,800,000 1,800,000 0 0 0 0.0 Wildfire Preparedness Fund 1,726,000 0 0 1,726,000 0 0.0 Helicopter contracts - 230 days per helo (2) 1,361,250 1,361,250 0 0 0 0.0 Single engine air tanker contracts- 240 days per plane (2) 618,750 618,750 0 0 0 0.0 Update radios (126 units) 576,000 576,000 0 0 0 0.0 Mitigation, response, and support equipment 550,000 550,000 0 0 0 0.0 Drones with aerial ignition capacity 300,000 300,000 0 0 0 0.0 Critical programmatic and customer support 242,760 242,760 0 0 0 0.0 Public Safety Subtotal $72,379,760 $37,811,260 $32,842,500 $1,726,000 $0 0.0

TOTAL $82,379,760 $47,811,260 $32,842,500 $1,726,000 $0 0.0

1 The General Fund amounts listed above are reflected as General Fund appropriations, even if the proposal involves the transfer of General Fund to another fund. The proposed Stimulus Package also includes budget requests for FY 2021-22, which do not appear in this table. Current request items are included in the Summary: FY 2020-21 Appropriation & FY 2021-22 Request table above.

FY 2020-21 STIMULUS ITEM DESCRIPTIONS S01 WILDFIRE STIMULUS PACKAGE: The request includes an increase of $82.4 million total funds, including $47.8 million General Fund. Of that amount, $10.0 million would go to DNR and the Colorado State Forest Service (CSFS) as a General Fund transfer for the following grant programs: $6.0 million for the Forest Restoration and Wildfire Risk Mitigation Grant Program administered by the CSFS, and $4.0 million for the CWCB Watershed Restoration Grant Program. Briefing Issue #2 provides additional detail about this request.

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INFORMATIONAL ISSUE: 2020 SESSION BUDGET BALANCING ACTIONS

In response to the budget challenges in the 2020 Session, the Joint Budget Committee and the General Assembly reduced General Fund appropriations to the Department by $866,742. The General Assembly also increased available General Fund by transferring $5.0 million from the Off-highway Vehicle Recreation Fund to the General Fund.

For FY 2020-21, the General Assembly reduced the Department’s General Fund appropriations by $1.6 million and transferred $45.5 million from the Severance Tax Perpetual Base Fund to the General Fund.

DISCUSSION Appropriations for the Department declined only slightly from FY 2019-20 to FY 2020-21 and remain well above FY 2018-19 levels. Budget balancing was responsible for a small portion of that decline. The following graph shows the Department’s annual appropriations for FY 2018-19 through FY 2020-21. A table with appropriations detail by major fund source follows the graph. Fiscal year 2019-20 appropriations include the adjustments and reductions made during the 2020 Session.

Recent Department of Natural Resources Appropriations Millions $400

Federal Funds

$200 Cash Cash Reappropriated Cash Funds Funds Funds Funds $260.2 $265.3 $238.9

General Fund $0 FY 2018-19 FY 2019-20 FY 2020-21

DEPARTMENT OF NATURAL RESOURCES APPROPRIATIONS FY 2018-19 THROUGH FY 2020-21 TOTAL GENERAL CASH REAPPROPRIATED FEDERAL

FUNDS FUND FUNDS FUNDS FUNDS FTE FY 2018-19 Final $305,365,244 $32,005,418 $238,857,665 $7,933,687 $26,568,474 1,464.5 FY 2019-20 Adjusted 337,036,481 42,671,491 260,232,426 7,523,560 26,609,004 1,495.9 FY 2020-21 331,838,190 32,699,083 265,309,811 7,170,362 26,658,934 1,511.9 Change from FY 2019- 20 to FY 2020-21 ($5,198,291) ($9,972,408) 5 $5,077,385 ($353,198) $49,930 6.5 Percent change FY 2019-20 to FY 2020-21 -1.5% -23.4% 2.0% -4.7% 0.2% 0.4%

5 The large decrease in General Fund from FY 2019-20 to FY 2020-21 stems from a one-time, $10.0 million appropriation for the State Water Plan in FY 2019-20 (S.B. 19-212 Implement State Water Plan).

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SUMMARY OF 2020 SESSION BUDGET BALANCING APPROPRIATION CHANGES The following table summarizes the budget balancing actions that impacted appropriations to the Department of Natural Resources for both FY 2019-20 and FY 2020-21, including actions taken through the Long Bill and other legislation. Unless otherwise indicated, JBC Staff assumes that the FY 2020-21 adjustments are ongoing for FY 2021-22. Staff has noted where the Committee (or the General Assembly) specifically designated actions as one-time in nature. Staff has also noted whether the Governor’s/Department’s budget request proposes to continue the reduction in FY 2021-22 or restore the funding. Actions to increase available revenues (such as transfers from cash funds to the General Fund) are not included in this table and are discussed in a separate section.

2020 SESSION BUDGET BALANCING APPROPRIATION CHANGES - DEPARTMENT OF NATURAL RESOURCESa TOTAL GENERAL CASH REAPPROPRIATED FEDERAL FUNDS FUND FUNDS FUNDS FUNDS FTE

FY 2019-20 APPROPRIATION BALANCING ITEMS: Water resources demand management program (H.B. 20-1403 CWCB Projects) ($866,742) ($866,742) $0 $0 $0 0.0 TOTAL ($866,742) ($866,742) $0 $0 $0 $0

FY 2020-21 APPROPRIATION BALANCING ITEMS: Appropriation Reductions PERA direct distribution (HB 20-1379)b ($2,936,082) ($520,633) ($2,329,063) ($86,386) $0 0.0 HLD decrease/personal services base reduction (1,035,518) (1,035,518) $0 $0 $0 0.0 Subtotal - Appropriation Reductions ($3,971,600) ($1,556,151) ($2,329,063) ($86,386) $0 0.0

Fund Source Adjustments None. $0 $0 $0 $0 $0 $0 Subtotal - Fund Source Adjustments $0 $0 $0 $0 $0 0.0

TOTAL ($3,971,600) ($1,556,151) ($2,329,063) ($86,386) $0 0.0

BALANCING ITEMS AS PERCENTAGE OF TOTAL APPROPRIATION: FY 2019-20 Appropriation $337,036,481 $42,671,491 $260,232,426 $7,523,560 $26,609,004 1,495.9 FY 2020-21 Appropriation $331,838,190 $32,699,083 $265,309,811 $7,170,362 $26,658,934 1,511.9 FY 2020-21 Actions as Percentage of FY 2019-20 Appropriation (1.2%) (3.6%) (0.9%) (1.1%) 0.0% 0.0% a Unless otherwise indicated, actions were reflected in the Long Bill (H.B. 20-1360) b House Bill 20-1379 eliminated PERA Direct Distribution appropriations for all departments.

FY 2019-20 APPROPRIATION – MID-YEAR ADJUSTMENTS WATER RESOURCES DEMAND MANAGEMENT: House Bill 20-1403 (CWCB Projects) reduced a $1.7 million General Fund appropriation for a water resources demand management program by $866,742.6 The bill also extended the remaining $833,258 General Fund from FY 2019-20 to FY 2020-21.

FY 2020-21 APPROPRIATION – APPROPRIATION REDUCTIONS HLD DECREASE/PERSONAL SERVICES BASE REDUCTION: The appropriation reduced appropriations for health, life, and dental insurance by $1,035,518 General Fund in lieu of a 5.0 percent

6 Senate Bill 19-212 (Implement State Water Plan) was a JBC bill that appropriated the original $1.7 million General Fund for stakeholder outreach and technical analysis.

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personal services base reduction. The Department’s FY 2021-22 request proposes to restore this funding and increase the HLD line item by an additional $1,073,897 total funds.

PERA DIRECT DISTRIBUTION SUSPENSION: House Bill 20-1379 suspended the PERA Direct Distribution. This reduced appropriations by $2,936,082 total funds, including $520,633 General Fund. The Department’s FY 2021-22 request proposes to restore this funding and increase it by an additional $162,702 total funds.

ACTIONS TO INCREASE AVAILABLE REVENUES The General Assembly transferred $50.5 million from DNR cash funds to the General Fund. All of these items are assumed to be one-time (unless indicated otherwise).

 $45,500,000 from the Severance Tax Perpetual Base Fund for FY 2020-21 (H.B. 20-1381); and  $5,000,000 from the Off-highway Vehicle Recreation Fund for FY 2019-20 (H.B. 20-1406).

Severance Tax Perpetual Base Fund Purpose: The Fund supports the development and conservation of the State’s water resources.

Primary Revenue Source(s): One quarter of the taxes collected on the production of oil and gas, coal, and certain metals.

Fund Outlook: The Committee approved the $45.5 million transfer with the expectation that about $30.0 million would remain in the fund for new water loans in FY 2020-21. This expectation remains valid; the Department expects to distribute $35.0 million in new loans in the current fiscal year. However, the fund balance (including loan obligations) will be negative for FY 2020-21 and FY 2021- 22.7 It is projected to return to a positive balance in FY 2022-23; this projection assumes a significant increase in severance tax revenue.

Off-Highway Vehicle Recreation Fund Purpose: The fund supports the Off-Highway Vehicle (OHV) Program, which is responsible for the administration of OHV registration and grants. The program provides promotes the availability of OHV recreational opportunities, and encourages safe and responsible use through brochures, news releases and other media. The program is also responsible for OHV safety awareness through the promulgation and enforcement of rules and regulations.

Primary Revenue Source(s): The primary revenue source is fees collected from the registration of off- highway vehicles and fees collected from the sale of off-highway use permits.

Fund Outlook: After the transfer, the fund balance at the end of FY 2019-20 was $11.1 million. Of that amount, $8.9 million was encumbered for OHV trail grants. About half of the $8.9 million represents new grants for FY 2020-21.

7 The expected amount of cash in the fund at the end of FY 2020-21 is $149.4 million, with loan obligations totaling $149.8 million. That means that if all loan obligations were distributed on June 30, 2021, the fund would have a deficit of $0.4 million. Loans are not distributed in this manner, so the year-end balance will not actually be negative.

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ISSUE 2: WILDFIRE STIMULUS PACKAGE

The Governor’s budget proposes a wildfire stimulus package totaling $47.8 million General Fund in FY 2020-21 and $25.3 million General Fund in FY 2021-22. This package includes funds for DNR and the Department of Public Safety. DNR requests a transfer of $10.0 million General Fund in FY 2020-21 and FY 2021-22 for a total of $20.0 million General Fund. Over the two fiscal years, $11.0 million would to the Forest Restoration and Wildfire Risk Mitigation (FRWRM) Grant Program and $9.0 million would go to the Watershed Restoration Grant Program. This issue provides additional detail about the package, with the exception of the Watershed Restoration Grant Program, and evaluates the policy preferences indicated by the proposed distribution of funds.

SUMMARY  As of 2017, Colorado’s wildland-urban interface spans 3.2 million acres and is home to 2.9 million residents. High risk areas encompass 368,189 acres with an estimated population of 627,644. Many of these acres appear to be on non-federal land. A preliminary, conservative estimate suggests mitigation efforts in high risk areas would cost over $700.0 million

 The FRWRM Grant Program typically receives between $1.0-2.0 million annually and demand for the grants is typically high. Severance tax volatility has been a persistent funding challenge. The only other source of funding has been periodic General Fund transfers.

 The $5.0 million General Fund requested for the FRWRM program in FY 2021-22 would be directed to Rocky Mountain Restoration Initiative projects in the Southwest Colorado, Arkansas Headwaters, and Upper South Platte regions.

 The Public Safety portion of the two-year package exceeds the DNR portion by about $33.1 million General Fund. Most of these funds would go to fire suppression efforts. These efforts would aim to prevent large fires and reduce state costs. However, it is not clear that the requested resources would achieve this objective, nor is it clear that suppression is ultimately a more cost effective option than mitigation.

RECOMMENDATION Staff recommends dedicating time during the hearing process to discuss wildfire issues with the relevant state agencies. This would include the Division of Fire Prevention and Control (DFPC) in the Department of Public Safety, the Colorado State Forest Service (CSFS), the Department of Natural Resources (DNR), and the Office of State Planning and Budgeting (OSPB). Additional participants could be invited to join if the Committee or OSPB think it would be appropriate.

Staff suggests that the discussion focus on the following topics and questions, as well as any questions that come up during this briefing or the briefing for the Department of Public Safety:

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1 Objectives and methods: What should be the primary objective(s) of Colorado’s wildfire policy over the next decade? In other words, what would be considered a “win” by 2030? What methods, and in what proportions, are best suited to achieving objectives?

2 Mitigation: What steps can be taken to increase wildfire mitigation activities in the State, especially in light of limited resources? What statutory or structural changes could be most useful, if any?

3 Suppression: What are the criteria for a full-suppression fire? When is it appropriate to let a fire burn, and when does it need to be put out? Could the requested resources have prevented 2020’s larger fires?

DISCUSSION The remainder of this brief shows growth in the wildland-urban interface, provides an overview of wildfire mitigation and the Forest Restoration and Wildfire Risk Mitigation Grant Program (FRWRM), and evaluates fire suppression as a preferred method for dealing with wildfires.

EXPANSION OF THE WILDLAND-URBAN INTERFACE (WUI) The CSFS defines the WUI as the area where structures and other human developments meet or intermingle with wildland vegetation. As of 2017, Colorado’s WUI spans 3.2 million acres and is home to 2.9 million residents. Of those totals, high risk areas encompass 368,189 acres with an estimated population of 627,644.8 According to the CSFS, these areas (identified in red in the map below) tend to be near forests with dense canopies or heavy vegetative fuel loads.9

Source: CSFS Wildfire Risk Public Viewer

8 “High wildfire risk” in this brief includes WUI Risk Index Categories 7-9 (on a 9-point scale), which are found in the 2017 Colorado Wildfire Risk Assessment Update. The map above is an interactive map that can be found here. 9 CSFS 2020 Forest Action Plan

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The current size of the WUI exceeds previous projections. For example, in 2007 researchers at Colorado State University (CSU) projected that the state’s WUI would increase from 715,000 acres in the year 2000 to 2,161,400 acres in 2030; an increase of 300.0 percent.10 Instead, the WUI grew by about 348.0 percent in a little over half of that period. This is an average annual growth rate of about 20.4 percent, which almost certainly underestimates more recent growth rates. One of the CSU researchers who authored the 2007 report produced a new model in 2015 that projects a 9.0 million acre WUI by 2040.

Between 2012 and 2017, high risk areas showed strong population growth despite much lower acreage growth. The following graph shows that growth, most of which occurred in the highest risk rating.

From 2012 to 2017, the estimated high risk WUI population grew by 26.0%, while acreage grew by just 6.6%

627,644 High risk population 497,947

368,189 High risk acres 345,445

2012 2017 Sources: 2012 and 2017 CSFS Colorado Wildfire Risk Assessment

WILDFIRE MITIGATION According to the CSFS, wildfire mitigation actions are on-the-ground treatments of forested properties implemented to reduce the threat of wildfire. Treatments include forest thinning, controlled burns, pruning, and mowing. A 2018 DFPC report suggests mitigation efforts can make a difference, saying “…prescribed fire, creating defensible space, hazardous fuels treatments and actively managing forests can have a significant impact on keeping wildland fires small and manageable and protecting values at risk.”11

However, there are significant challenges facing wildfire mitigation efforts. These challenges include, but are not limited to:  WUI growth  Local capacity for wildfire risk reduction planning

10 From the 2007 Report on the Health of Colorado’s Forests. Link to map. 11 DFPC Strategic Plan for Supporting Colorado’s Fire Agencies, August 2018, page 13

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 Limited wood products markets (to utilize cleared vegetation), limited numbers of contractors who can do mitigation work, and funding for mitigation activities

Local capacity is especially important because wildfires are a local problem before they are a state problem. 12 Over the past two decades, many communities have developed Community Wildfire Protection Plans. Per the CSFS, there are 239 such plans throughout the state (50 county, 48 fire protection district, and 141 local-level). However, these plans can quickly become outdated because many localities lack the capacity to update the plan, or they outgrow the plan’s analysis and recommendations, or new information and technology becomes available. More than half of these plans are more than a decade old, and over 85.0 percent are more than five years old.13

In addition to these challenges, the scale and cost of needed mitigation work is significant. To treat all 368,189 high risk acres, it would cost an estimated $762.8 million.14 The CSFS notes this is likely a conservative estimate, and emphasized that it is just an estimate to provide a sense of scale. The estimate does not factor in planning or administrative costs, and costs vary depending on the location and vegetation type.

FOREST RESTORATION AND WILDFIRE RISK MITIGATION GRANT PROGRAM  FY 2020-21 Request: $6.0 million General Fund These funds would support “an immediate disbursement of general grant funds for shovel-ready wildfire mitigation projects across the state.” These projects would aim to reduce hazardous fuels (e.g. dead or dying trees) through forest thinning, slash pile burning, and vegetation reduction around structures.

 FY 2021-22 Request: $5.0 million General Fund These funds would be directed toward forest restoration projects in the priority landscapes established by the Rocky Mountain Restoration Initiative (RMRI). The priority landscapes are Southwest Colorado, the Arkansas Headwaters, and the Upper South Platte. 15

PURPOSE OF FRWRM GRANT PROGRAM The purpose of the program is to reduce wildfire risk to people, property and infrastructure in the wildland-urban interface and promote forest health and the utilization of woody material.

FUNDING HISTORY In 2017, multiple grant programs were consolidated into the FRWRM Grant Program, which is supported by the continuously appropriated FRWRM Grant Program Cash Fund.16 The following chart shows consolidated revenue for these grant programs over the last ten years. The key funding

12 A wildfire is the responsibility of local jurisdictions until it exceeds local capacity. At that point, those jurisdictions can request state assistance. If the state agrees, it becomes a state responsibility fire. 13 CSFS Colorado Forest Action Plan, 2020, page 36 14 Estimate based on average cost per acre ($2,072) for 866 acres of work through FRWRM grants from 2017 to 2019. 15 RMRI SW Colorado fact sheet; Arkansas Headwaters fact sheet; Upper South Platte fact sheet. 16 Section 23-31-310 (8.5)(b), C.R.S.

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challenge has been severance tax volatility.17 In the last five years, there has been an average severance tax distribution of $324,450; in two of those years, there was no distribution. On the positive side, demand for these grants appears to be high; of the $22.9 million in total revenue, $22.7 million has been awarded through FY 2019-20. Forest Restoration and Wildfire Risk Mitigation Grant Revenue FY 2010-11 to FY 2020-21 ($ millions) Severance Tax General Fund

$9.8

$1.0 $1.8 $1.0 $1.0 $1.0 $0.7 $1.0 $1.0 $1.0 $1.0 $1.0 $1.1 $0.4 FY 10-11 FY 12-13 FY 14-15 FY 16-17 FY 18-19 FY 20-21 Note: Revenue prior to FY 2017-18 includes revenue for the two programs later consolidated into the FRWRM Grant Program: the Wildfire Risk Reduction grant and the Colorado Forest Restoration grant

TYPES OF PROJECTS The program supports two kinds of projects. The first is fuel and forest health projects; the second is capacity building. 1 Fuel and Forest Health These projects must: (A) reduce wildfire risk for property damage, infrastructure, water supplies and other high-valued assets and/or limit the probability of wildfires spreading into populated areas; and (B) promote forest health through scientifically based forestry practices that restore ecosystem functions, structures and species composition. For example, these types of projects may create or maintain defensible space around homes and structures, create or maintain fuelbreaks, and reduce fuel loads. 18

2 Capacity Building These projects allow local communities to purchase equipment that will increase their ability to reduce hazardous fuels. For example, a community could buy a communal wood chipper or establish neighborhood slash disposal sites. Applicants must show how the equipment will be used and maintained to address future fuel treatments. These types of projects are limited to 25.0 percent of available program funds.

17 These grant programs have historically received transfers from the Severance Tax Operational Fund, contingent on available revenue. 18 A fuelbreak is a strip or block of vegetation that has been altered to slow or control a fire. For a deeper explanation, see fuelbreak guidelines from the CSFS.

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ELIGIBLE APPLICANTS The program is open to local community groups (e.g. homeowner associations), local government entities, public or private utilities, state agencies, or nonprofit groups. The FY 2020-21 grant program guidance says all grant funds must be utilized on non-federal land in Colorado.

NON-REVENUE CHALLENGES The Department is requesting $11.0 million General Fund in the current and next fiscal year. Even if the General Assembly wanted to appropriate more to the FRWRM program, the Department noted several constraints on additional disbursements. These constraints are related to time, local match requirements, up-front expenses, private land ownership, and contractor availability.  Time: The program is competitive and single grant cycle can take up to five or six months.  Local match requirements: There is a 50.0 percent local match requirement. If the applicant is in an area considered economically disadvantaged, the match requirement is 25.0 percent.19 Per the Department, many communities are unable to meet these match requirements, especially for larger projects.  Up-front expenses: FRWRM is a reimbursement program. Local communities must pay for the work up-front and then apply for reimbursement through the grant program. Even if a community can meet the match requirement, they may not be able to afford the up-front costs.  Private land ownership: Large-scale projects may require support from private landowners for treatments to be strategically viable (e.g. large enough to save a community, as opposed to a handful of homes or cabins). Getting buy-in from multiple landowners takes time.  Contractor availability: Per the Department, some contractors may be reluctant to build capacity for large-scale, longer-term work if the funding is limited and/or short-term.

ROCKY MOUNTAIN RESTORATION INITIATIVE (RMRI) The FY 2021-22 request says FRWRM funds would be directed to projects in the priority landscapes established by the Rocky Mountain Restoration Initiative (RMRI). The RMRI is a national effort co- convened by the U.S. Forest Service and the National Wild Turkey Federation. Several Colorado agencies are among the forty stakeholders involved in the initiative.20

The purpose of the initiative is to increase the pace and scale of forest restoration in the region over the next decade. The goal of the prioritized projects is to reduce wildfire size and severity and help local communities adapt to wildfire risk. Adaptation can include physical acts, like using fire-resistant material for home construction, and the distribution and utilization of fire knowledge among community members.

In 2019, RMRI considered seven project proposals and identified three priority landscapes (Southwest Colorado, Arkansas Headwaters, Upper South Platte) to receive substantial resources over the course of the next decade. RMRI identifies Southwest Colorado as the “marquee project.”

19 As defined by the CDC’s Social Vulnerability Index. 20 Includes DNR, CSFS, and the Division of Fire Prevention and Control in the Department of Public Safety. For the full list of stakeholders, see the RMRI website.

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SOUTHWEST COLORADO The overall objective of this project is the restoration of over 300,000 acres in the 750,000 acre project area. Sub-objectives include, but are not limited to:  Fire mitigation on 20,000 acres of private land  Fuel treatment on 290,000 acres of national forest adjacent to communities  Improving trails by clearing dead, dying, and downed trees

The project fact sheet notes that “Fire suppression has led to dense, overstocked forests.” This is a reference to wildfire policies in the past century that aimed to prevent large wildfires. Suppressing fires leads to fuel accumulation, hence “dense, overstocked forests.”

ARKANSAS HEADWATERS Like the Southwest Colorado project, this project associates poor forest health with “decades of full fire suppression.” The overall objective of the project is to restore 30,000-45,000 acres within the 900,000 acre project area. This objective builds on a plan developed by the Envision Forest Health Council in Chaffee County to treat 30,000 acres of forest by 2030.21 The plan used computer modeling to map risk levels and prioritize fuel treatments with the highest cost efficiency and community benefit, which is shown in the map below.

Source: Chaffee County Community Wildfire Protection Plan — Summary

21 Link to summary of the plan.

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UPPER SOUTH PLATTE The overall objective of the project is to restore 150,000 acres within the 885,000 acre project area. Sub-objectives include, but are not limited to:  Fuel treatments in priority areas across 40% of the Upper South Platte watershed  45,000 acres of prescribed fire (also called “controlled burns”) on U.S. Forest Service lands  15,000 acres of prescribed fire on private, local, and state lands

WILDFIRE SUPPRESSION Considering both FY 2020-21 and FY 2021-22, just over two-thirds of the requested General Fund would go toward fire suppression (helicopters, contracts for planes, etc.). About 16.2 percent is exclusively dedicated to pre-wildfire mitigation and risk reduction. In staff’s view, the supplemental request does not provide an explicit rationale for this distribution of funds. This section provides an overview of wildfire suppression, asks whether requested resources would keep wildfires small, and questions whether suppression should be the preferred policy.

WILDFIRE SUPPRESSION AND WILDFIRE BASICS DFPC defines fire suppression as “All work and activities connected with control and fire- extinguishing operations, beginning with discovery and continuing until the fire is completely extinguished.” Control is acquired by removing one of the three ingredients that a fire needs to burn: heat, oxygen, and fuel. Heat can be removed through the application of water or fire retardant; fuel can be removed by clearing vegetation.

The “Fire Triangle” Fire behavior is driven by fuel, weather, and topography, which is known as the “fire triangle.” Fuel includes any biomass that is flammable; the composition of that biomass determines its flammability (What is the level of moisture? How dense are the fuels? What is their chemical makeup?) Humidity, wind, and ambient temperature make up the weather factor. Lastly, topography can help or hinder the Source: National spread of a fire. For example, rocky slopes can act as natural Park Service firebreaks due to sparse vegetation. Steep slopes may aid the spread of a fire; as heat rises, it can pre-heat fuels upslope of the fire, increasing the likelihood that those fuels will ignite.

CAN THE STATE CONTROL WILDFIRES? IF SO, WHEN SHOULD IT? In staff’s view, there are two main reasons to question the proposed distribution of funds. The first is the level of control that the State can reasonably expect to achieve once a fire has started. The second is the contribution of past fire suppression policies to the current predicament.

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WILDFIRE CONTROL The State cannot control the weather and it cannot control topography. Fuel is the only aspect of fire behavior susceptible to the State’s influence. If the State does not pursue an aggressive fuel reduction policy before a fire starts, it must rely on post-ignition suppression approach to deprive the fire of heat and fuel. It is not clear that the requested suppression resources will prevent larger fires and reduce future costs.

The supplemental request highlights the Elephant Butte and Green Meadows fires as good examples of effective fire suppression. However, both of these fires began in mid-July 2020, whereas the larger, more destructive fires began later in the fire season amid a severe drought. The Green Meadows Fire began on Sunday, July 12 and the Elephant Butte Fire began Monday, July 13. Both fires benefited from favorable weather and, in the case of the Elephant Butte fire, favorable topography.22 One can reasonably conclude that fire suppression helped contain these fires, but it is not clear that fire suppression efforts could have contained or extinguished later fires with different fire conditions, even with additional resources.

The following table shows 2020 wildfires, beginning with the Pine Gulch Fire, causes, and size of the fire as of November 9, 2020. Some fires grew significantly larger than others. The question is “Why?”

Selected 2020 Colorado Wildfires Name Start Date Cause Acreage (as of Nov. 9, 2020) Pine Gulch 07/31/2020 Lightening 139,007 Grizzly Creek 08/10/2020 Human 32,631 Cameron Peak 08/13/2020 Unknown 208,913 Williams Fork 08/14/2020 Unknown 14,833 Thorpe 08/23/2020 Unknown 159 Middle Fork 09/06/2020 Lightening 20,433 East Troublesome 10/14/2020 Unknown 193,812 Calwood 10/17/2020 Unknown 10,106 Lefthand Canyon 10/18/2020 Unknown 460 Ice Fire 10/19/2020 Unknown 596

Staff’s initial, limited analysis of the reporting for each incident suggests that weather and/or fuel conditions may have been favorable in some circumstances and less favorable in others.23 This leads to the next question: “Could the larger fires have been contained with the requested funds and resources, or were these fires ultimately beyond the State’s ability to control once they ignited?” Even if the answer to the first part of that question is yes, it is still not clear that fire suppression ought to be the preferred policy.

22 A low pressure system moved in early in the week shortly after these fires started. News reports at the time mentioned that rain helped the firefighters’ efforts. “Cooler weather could help crews fight fire west of Denver,” KRDO, July 14, 2020. “Green Meadows Wildfire 100 percent contained,” Telluride Daily Planet, July 14, 2020. Regarding topography, satellite imagery shows a steep, rocky southeast-facing slope with sparse vegetation on the Evergreen side of the butte. 23 Staff looked at news releases on InciWeb, which is administered by the National Wildfire Coordinating Group.

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FIRE SUPPRESSION POLICY As the WUI grows, some fire suppression will be necessary to protect people, property, and infrastructure. Given the scale and cost of mitigation work in higher risk areas, fire suppression may be a more cost effective approach. However, this assumes that the requested resources will be effective in quashing fires before they get big. If they are not, one can reasonably anticipate future requests for additional resources, like those mentioned in DFPC’s 2018 report. For example, the report contains a recommendation for three state-owned helicopters, not one. The report also calls for 24 state-owned fire engines; the Division currently operates seven. Looking ten years in the future, it is hard to say how much fire suppression will ultimately cost, and how that cost compares to mitigation costs.

Furthermore, fire suppression policies over the last century arguably made today’s wildfire problems worse. The basic argument is that fire suppression allows fuels to accumulate. 24 If paired with warmer, drier weather, fuel accumulation makes larger, harder-to-manage fires more likely. The U.S. Department of Interior acknowledges this, as do RMRI’s mitigation documents. DFPC’s 2020 Wildfire Preparedness Plan (WPP) partially attributes the increase in state responsibility fires to “natural fuels buildup, declining forest health, and increased population in the wildland urban interface (WUI) areas…”25 Lastly, the legislative declaration for the FRWRM Grant Program says, “Damaging wildfires occur regularly in Colorado due in part to fire suppression efforts and drought, the result of which are unhealthy, fire-prone forests…”26

If the State is going to show a funding preference for suppression over mitigation, it would be prudent to see clear criteria that govern fire suppression decisions because those decisions have funding consequences. For example, when is it appropriate to let a fire burn, and when is it necessary to put it out? The 2020 WPP says, “Fast, aggressive, initial attack on new fires (for fires where full suppression is the appropriate management response) can reduce the number of large fires…” It is not clear which factors make full suppression the “appropriate management response.” The WPP lays out incident management priorities, but does not provide criteria for a specific course of action.27

CONCLUSION Mitigation and suppression are both necessary wildfire tools. This brief aimed to provoke some thought about what the State wants to achieve and how to achieve it. On the surface, more mitigation seems preferable because it deals directly with the fuel a fire needs. However, it would be very costly and time-consuming to address just the highest risk areas. Suppression will be necessary because wildfires are not 100.0 percent preventable and the State cannot mitigate all 24.0 million acres of forest. Yet it is not clear that suppression should be privileged over mitigation, nor is it clear that the requested suppression resources can prevent all large wildfires.

24 U.S. Department of Interior, Office of Wildland Fire (link to website) 25 Quote found on page 5 of the 2020 Wildfire Preparedness Plan. 26 Section 23-31-310 (1.5)(a)(II), C.R.S. 27 In order of importance, those priorities are: (1) Public and firefighter safety, (2) Incident stabilization, (3) Property conservation, (4) Endangered species, environmental, and economic impacts, and (5) Resource benefits. See WPP, page 9.

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ISSUE 3: WOLVES IN COLORADO (PROPOSITION 114)

The passage of Proposition 114 requires CPW and the CPW Commission to reintroduce gray wolves to the State by December 31, 2023.28 This issue looks at near-term costs and possible funding sources for wolf reintroduction and management. Livestock compensation is not considered.

SUMMARY • The first step in the reintroduction process is the development of a gray wolf reintroduction and management plan. This will occur over the next two fiscal years. According to the LCS fiscal impact statement, the cost will be $344,363 in FY 2021-22 and $467,387 in FY 2022-23. The Department and OSPB have not proposed a source of funding.

• The LCS fiscal impact statement for the ballot measure assumes that costs will be borne by the Wildlife Cash Fund, which is primarily supported by hunting and fishing licenses. There is enough money in the Fund to support these costs without increasing the cost of a hunting or fishing license.

• The ballot measure does not require use of the Wildlife Cash Fund for reintroduction and management. However, it does require the use of the Fund for livestock compensation to the extent funds are available.

• Based on surveys from other states, it is highly likely that the majority of the Fund’s primary contributors—big game hunters—did not support Proposition 114. However, the Fund also receives revenue from GOCO and anglers. This means that funding from the Wildlife Cash Fund does not necessarily come from hunters.

POINTS TO CONSIDER There are no statutory or short-term financial obstacles to using the Wildlife Cash Fund as the primary funding source for the CPW Commission’s planning process. However, given the politically sensitive nature of the issue, staff presents the following funding options for the Committee’s consideration.

1 Use the Wildlife Cash Fund: Big game hunters are the primary contributors to the Fund, but they are not the sole contributors. Wolves are wildlife, so using the Fund to reintroduce and manage wolves is an appropriate use of the Fund. The balance of the Fund is sufficient to cover these costs without fee increases, but that could change as costs increase and the Department utilizes the Fund for other priorities. Looking many years ahead, using the Wildlife Cash Fund could create tension between hunters, who could plausibly say they paid for wolves, and hunting opponents if the CPW Commission decides to manage wolves through a limited amount of hunting.

28 Adds Section 33-2-105.8, C.R.S. For full text of the measure, see the Colorado Secretary of State website.

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2 Use General Fund: If the general public wants wolves in the State, the general public can pay for them with general tax dollars. Oregon’s General Fund is the primary funding source for its wolf management program.29 Oregon also uses federal funds and a smaller amount of state wildlife funds and lottery funds.

3 Create and/or develop alternative sources: The General Assembly may consider using multiple funding sources. For example, Washington supports wolf management primarily through personalized license plates, but also uses general fund, wildlife funds, and specialized funds for livestock compensation.30The General Assembly may consider creating a dedicated wolf conservation fund supported by revenue from wolf-related products (e.g. license plates) and gifts, grants, and donations.

DISCUSSION Proposition 114 adds the following statutory requirements for CPW and the CPW Commission:  Reintroduce and manage gray wolves: Develop a plan (the Plan) to reintroduce and manage gray wolves in Colorado. Reintroduction must begin by December 31, 2023.

 Stakeholder input: Hold statewide hearings about scientific, economic, and social considerations and periodically obtain public input to update the Plan.

 Livestock compensation: Use state funds to assist livestock owners in preventing conflicts with gray wolves and pay fair compensation for livestock losses. The measure specifies the Wildlife Cash Fund if funds are available.

This briefing assumes that gray wolves will be removed from the federal endangered species list in the near future.31 That means that CPW will not need federal approval to reintroduce wolves in Colorado. It also means that CPW will be responsible for wolf management in the state. However, wolves will remain on the State’s endangered species list until the CPW Commission decides otherwise.

If expected legal challenges to the federal decision are successful and the federal courts put wolves back on the endangered species list, the opposite would apply. CPW could not reintroduce gray wolves to Colorado without the approval of the U.S. Fish and Wildlife Service (USFWS). Similarly, CPW could not manage the wolf population until wolves are federally delisted in some or all of the state. As long as gray wolves are federally-listed, management authority rests with USFWS.

29 Wolves migrated into Oregon and were not reintroduced through a ballot measure. 30 Like Oregon, wolves migrated into Washington and were not reintroduced through a ballot measure. 31 On October 29, 2020, the U.S. Department of the Interior announced that it will soon remove the gray wolf from the endangered species list (known as “delisting”). See the full 442-page text of the decision.

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IMPLEMENTATION COSTS The following table from the LCS fiscal impact statement shows expenditures for the next two fiscal years.32

The 1.0 FTE for FY 2021-22 would be a wildlife manager to lead the reintroduction team and oversee the program. For FY 2022-23, CPW would add two field biologists to prepare for reintroduction.

The fiscal impact statement estimated future costs at $800,000 per year, but many variables could drive those costs could be higher or lower.33 The following table shows annual costs in other some other states that manage a gray wolf population and pay for livestock losses. These costs should not be seen as directly applicable to Colorado, but they do illustrate the range of possibilities.

WOLF MANAGEMENT COSTS IN OTHER WESTERN STATES STATE ANNUAL COSTS YEAR Wyoming $1,918,754 FY 2018-19 Washington 1,518,659 CY 2019 Oregon 1,393,344 2019-2021 biennial budget Montana 788,689 FY 2018-19

WILDLIFE CASH FUND The Wildlife Cash Fund is largely supported by revenue from hunting and fishing licenses. Most of that revenue comes from big game licenses for elk and deer. Big game hunters are not uniformly anti- wolf, but they tend to view wolves negatively, partially out of concern for the impact of wolves on big game numbers.34 For example, 51.5 percent of surveyed Minnesota deer hunters had a negative

32 LCS Fiscal Impact Statements for Statewide Ballot Measures, page 20. 33 Variables include the details of the CPW Commission’s plan and the actual number of livestock losses. 34 There is some foundation for this concern. Wolves can reduce elk and deer numbers in certain localities, such as the Lolo herd in Idaho. However, they are rarely the sole or primary cause of elk and deer herd declines. Data from Montana suggests wolves do not have a large impact on statewide big game numbers and hunter success rates.

16-Nov-2020 27 NAT1-brf attitude toward wolves, and 39.0 percent had a positive attitude.35 In Montana, 55.8 percent of elk and deer hunters were either very or somewhat intolerant of wolves on the landscape, and 24.0 percent were somewhat or very tolerant.36 These surveys also suggest a high level of tolerance/approval for wolf hunting seasons among big game hunters.

The Fund is also supported by GOCO and revenue from habitat stamp sales, which must be purchased along with hunting and fishing licenses. GOCO provided $14.4 million to the Fund in FY 2019-20. Most of that goes toward habitat acquisition and enhancement, but some goes to threatened and endangered species recovery. For FY 2019-20, CPW requested $610,000 to support a total budget of $958,147 for species recovery.37

The Department expects the Fund to have a balance of $165.5 million at the end of FY 2021-22, which is more than enough to support wolf-related costs over the next few years. Given the balance of the fund, and given the fact that funding is not necessarily tied to big-game hunters, using this fund for wolf expenses is more of a perceptual and political issue than a financial one.

CONCLUSION Big game hunters are the primary contributors to the Fund, but they are not the sole contributors. Wolves are wildlife, so using the Fund to reintroduce and manage wolves is an appropriate use of the Fund. The balance of the Fund is sufficient to cover these costs without fee increases, but that could change as costs increase and the Department utilizes the Fund for other priorities.

Looking many years ahead, using the Wildlife Cash Fund as the primary funding source could create tension between hunters, who could plausibly say they paid for wolves, and hunting opponents if the CPW Commission decides to manage wolves through a limited amount of hunting. Given the politically sensitive nature of the issue, it may be prudent to consider alternative funding sources that spread costs among multiple stakeholder groups.

35 Minnesota survey (University of Minnesota and the Minnesota Department of Natural Resources, 2020) 36 Montana survey (Montana Fish, Wildlife & Parks, 2018). 37 CPW GOCO FY 2019-20 Investment Plan

16-Nov-2020 28 NAT1-brf APPENDIX A NUMBERS PAGES (DIGITAL ONLY)

Appendix A details actual expenditures for the last two fiscal years, the appropriation for the current fiscal year, and the requested appropriation for next fiscal year. This information is listed by line item and fund source. Appendix A is only available in the online version of this document.

16-Nov-2020 A-1 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

DEPARTMENT OF NATURAL RESOURCES Dan Gibbs, Executive Director (1) EXECUTIVE DIRECTOR'S OFFICE

(A) Administration Personal Services 3,772,814 3,950,447 4,350,073 4,477,524 FTE 36.5 37.5 44.3 45.5 General Fund 0 (60,000) 0 0 Cash Funds 0 0 0 126,453 Reappropriated Funds 3,772,814 4,010,447 4,350,073 4,351,071 Federal Funds 0 0 0 0

Health, Life, and Dental 14,844,337 16,334,701 17,085,896 19,235,479 * General Fund 2,146,703 3,239,669 2,151,198 3,539,194 Cash Funds 11,585,159 12,782,471 13,963,072 14,918,543 Reappropriated Funds 1,112,475 312,561 598,691 364,505 Federal Funds 0 0 372,935 413,237

Short-term Disability (164,541) 175,669 182,944 174,496 * General Fund (26,798) 28,127 31,080 30,568 Cash Funds (132,513) 142,236 141,472 133,052 Reappropriated Funds (5,230) 5,306 5,715 6,128 Federal Funds 0 0 4,677 4,748

*Line item contains a decision item.

16-Nov-2020 A-2 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

S.B. 04-257 Amortization Equalization Disbursement (5,451,218) 5,834,997 6,029,892 6,102,712 * General Fund (887,519) 927,662 919,279 959,900 Cash Funds (4,390,476) 4,732,346 4,784,922 4,786,083 Reappropriated Funds (173,223) 174,989 176,993 200,541 Federal Funds 0 0 148,698 156,188

S.B. 06-235 Supplemental Amortization Equalization Disbursement (5,451,218) 5,834,997 6,029,892 6,102,712 * General Fund (887,519) 927,662 919,279 959,900 Cash Funds (4,390,476) 4,732,346 4,784,922 4,786,083 Reappropriated Funds (173,223) 174,989 176,993 200,541 Federal Funds 0 0 148,698 156,188

PERA Direct Distribution 0 3,072,937 0 3,098,784 General Fund 0 554,805 0 567,777 Cash Funds 0 2,427,367 0 2,430,549 Reappropriated Funds 0 90,765 0 100,458 Federal Funds 0 0 0 0

Salary Survey (3,336,662) 4,574,341 0 0 General Fund (519,288) 607,187 0 0 Cash Funds (2,710,380) 3,858,843 0 0 Reappropriated Funds (106,994) 108,311 0 0 Federal Funds 0 0 0 0

*Line item contains a decision item.

16-Nov-2020 A-3 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Shift Differential (41,331) 35,039 38,953 48,117 General Fund 0 0 0 0 Cash Funds (41,331) 35,039 38,953 48,117 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Workers' Compensation 1,555,469 1,447,792 1,367,677 1,262,785 General Fund 338,354 64,639 107,726 182,830 Cash Funds 1,201,783 1,360,005 1,245,205 1,072,701 Reappropriated Funds 14,122 14,324 10,218 3,839 Federal Funds 1,210 8,824 4,528 3,415

Operating Expenses 185,956 146,545 201,330 196,281 General Fund 0 0 0 0 Cash Funds 0 0 0 9,060 Reappropriated Funds 185,956 146,545 201,330 187,221 Federal Funds 0 0 0 0

Legal Services 5,508,277 5,107,343 5,715,267 5,424,880 General Fund 1,363,983 1,366,765 1,432,746 1,399,519 Cash Funds 4,020,098 3,644,944 4,195,532 3,947,174 Reappropriated Funds 54,363 20,539 0 34,158 Federal Funds 69,833 75,095 86,989 44,029

Administrative Law Judge Services 556 615 0 0 General Fund 0 0 0 0 Cash Funds 556 615 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

*Line item contains a decision item.

16-Nov-2020 A-4 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Statewide Training 0 0 0 25,313 * General Fund 0 0 0 4,156 Cash Funds 0 0 0 19,730 Reappropriated Funds 0 0 0 834 Federal Funds 0 0 0 593

Payment to Risk Management and Property Funds 1,410,962 1,200,854 982,886 1,406,658 General Fund 76,851 73,847 64,406 97,308 Cash Funds 1,316,047 1,107,217 902,846 1,284,634 Reappropriated Funds 10,199 11,831 8,735 14,356 Federal Funds 7,865 7,959 6,899 10,360

Vehicle Lease Payments 3,704,703 3,789,144 4,481,593 4,916,900 * General Fund 265,164 248,282 313,262 376,612 Cash Funds 3,341,351 3,449,541 4,068,841 4,429,692 Reappropriated Funds 39,910 43,294 45,175 43,245 Federal Funds 58,278 48,027 54,315 67,351

Capital Outlay 857,399 700,862 1,062,343 1,062,343 General Fund 0 0 0 0 Cash Funds 857,399 698,562 1,057,006 1,057,006 Reappropriated Funds 0 0 0 0 Federal Funds 0 2,300 5,337 5,337

Information Technology Asset Maintenance 251,586 210,699 263,159 263,159 General Fund 31,628 31,628 31,628 31,628 Cash Funds 131,110 108,416 140,993 140,993 Reappropriated Funds 88,848 70,655 90,538 90,538 Federal Funds 0 0 0 0

*Line item contains a decision item.

16-Nov-2020 A-5 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Leased Space 1,462,924 1,543,555 1,864,855 1,871,767 General Fund 631,177 640,243 689,122 706,385 Cash Funds 802,295 871,973 1,146,082 1,136,064 Reappropriated Funds 7,089 7,158 7,288 5,263 Federal Funds 22,363 24,181 22,363 24,055

Capitol Complex Leased Space 1,458,663 1,307,278 1,408,234 1,539,294 General Fund 274,106 245,658 264,631 289,257 Cash Funds 740,905 664,011 715,290 781,860 Reappropriated Funds 284,556 255,024 274,718 300,285 Federal Funds 159,096 142,585 153,595 167,892

CORE Operations 3,538,654 923,668 0.0 616,928 611,556 General Fund 520,198 35,534 45,698 42,838 Cash Funds 2,806,075 861,012 539,620 535,468 Reappropriated Funds 116,165 11,112 12,692 14,094 Federal Funds 96,216 16,010 18,918 19,156

Payments to OIT 14,959,627 14,395,584 14,741,085 14,513,654 * General Fund 2,498,414 2,441,650 3,011,333 3,382,363 Cash Funds 11,494,623 10,694,783 11,281,520 10,302,647 Reappropriated Funds 822,577 1,126,216 320,532 640,959 Federal Funds 144,013 132,935 127,700 187,685

*Line item contains a decision item.

16-Nov-2020 A-6 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Species Conservation Trust Fund 4,340,977 4,203,126 0 0 General Fund 0 0 0 0 Cash Funds 4,340,977 4,203,126 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

SUBTOTAL - (A) Administration 43,407,934 74,790,193 66,423,007 72,334,414 8.9% FTE 36.5 37.5 44.3 45.5 2.7% General Fund 5,825,454 11,373,358 9,981,388 12,570,235 25.9% Cash Funds 30,973,202 56,374,853 49,006,276 51,945,909 6.0% Reappropriated Funds 6,050,404 6,584,066 6,279,691 6,558,036 4.4% Federal Funds 558,874 457,916 1,155,652 1,260,234 9.0%

(B) Special Programs Colorado Avalanche Information Center 1,082,732 1,100,569 1,461,709 1,494,577 * FTE 10.4 11.5 14.3 15.2 General Fund 0 0 0 0 Cash Funds 392,575 403,716 777,067 730,473 Reappropriated Funds 599,898 650,939 665,671 745,133 Federal Funds 90,259 45,914 18,971 18,971

Indirect Cost Assessment 62,838 59,663 53,989 58,249 General Fund 0 0 0 0 Cash Funds 61,818 55,577 53,989 58,249 Reappropriated Funds 0 0 0 0 Federal Funds 1,020 4,086 0 0

*Line item contains a decision item.

16-Nov-2020 A-7 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

SUBTOTAL - (B) Special Programs 1,145,570 1,160,232 1,515,698 1,552,826 2.4% FTE 10.4 11.5 14.3 15.2 6.3% General Fund 0 0 0 0 0.0% Cash Funds 454,393 459,293 831,056 788,722 (5.1%) Reappropriated Funds 599,898 650,939 665,671 745,133 11.9% Federal Funds 91,279 50,000 18,971 18,971 0.0%

TOTAL - (1) Executive Director's Office 44,553,504 75,950,425 67,938,705 73,887,240 8.8% FTE 46.9 49.0 58.6 60.7 3.6% General Fund 5,825,454 11,373,358 9,981,388 12,570,235 25.9% Cash Funds 31,427,595 56,834,146 49,837,332 52,734,631 5.8% Reappropriated Funds 6,650,302 7,235,005 6,945,362 7,303,169 5.2% Federal Funds 650,153 507,916 1,174,623 1,279,205 8.9%

16-Nov-2020 A-8 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

(5) DIVISION OF PARKS AND WILDLIFE

(A) Colorado Parks and Wildlife Operations State Park Operations 36,722,635 35,956,056 37,617,761 37,673,303 * FTE 277.5 282.9 260.1 262.1 General Fund 150,000 125,000 125,000 0 Cash Funds 35,236,505 34,988,857 37,047,955 37,228,497 Reappropriated Funds 0 0 0 0 Federal Funds 1,336,130 842,199 444,806 444,806

Wildlife Operations 79,523,083 78,583,396 86,488,207 86,593,827 * FTE 611.1 0.0 623.6 624.6 General Fund 0 0 0 0 Cash Funds 57,956,477 55,712,018 67,313,524 67,419,144 Reappropriated Funds 0 0 0 0 Federal Funds 21,566,606 22,871,378 19,174,683 19,174,683

Vendor commissions, fulfillment fees, and credit card fees 0 9,513,781 14,555,758 14,555,758 General Fund 0 0 0 0 Cash Funds 0 9,513,781 14,555,758 14,555,758 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

*Line item contains a decision item.

16-Nov-2020 A-9 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

SUBTOTAL - (A) Colorado Parks and Wildlife Operations 116,245,718 124,053,233 138,661,726 138,822,888 0.1% FTE 888.6 282.9 883.7 886.7 0.3% General Fund 150,000 125,000 125,000 0 (100.0%) Cash Funds 93,192,982 100,214,656 118,917,237 119,203,399 0.2% Reappropriated Funds 0 0 0 0 0.0% Federal Funds 22,902,736 23,713,577 19,619,489 19,619,489 0.0%

(B) Special Purpose Snowmobile Program 864,939 904,561 1,020,818 1,020,854 FTE 1.0 1.6 1.3 1.3 General Fund 0 0 0 0 Cash Funds 864,939 904,561 1,020,818 1,020,854 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

River Outfitters Regulation 41,825 53,144 150,651 150,666 FTE 0.0 0.0 0.5 0.5 General Fund 0 0 0 0 Cash Funds 41,825 53,144 150,651 150,666 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-10 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Off-highway Vehicle Program 359,615 530,386 583,447 583,516 FTE 2.0 3.0 3.0 3.0 General Fund 0 0 0 0 Cash Funds 359,615 530,386 583,447 583,516 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Off-highway Vehicle Grants 3,524,856 3,987,175 4,000,000 4,000,000 General Fund 0 0 0 0 Cash Funds 3,524,856 3,987,175 4,000,000 4,000,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Federal Grants 843,894 1.0 1,619,504 2.0 750,000 750,000 General Fund 0 0 0 0 Cash Funds 0 0 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 843,894 1,619,504 750,000 750,000

Stores Revolving Fund 430,829 604,453 200,000 200,000 General Fund 0 0 0 0 Cash Funds 430,829 604,453 200,000 200,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-11 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Information Technology 1,623,857 1,377,766 2,605,016 2,605,016 General Fund 0 0 0 0 Cash Funds 1,623,857 1,377,766 2,605,016 2,605,016 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Trails Grants 3,840,511 2,831,470 2,200,000 2,200,000 General Fund 0 0 0 0 Cash Funds 2,080,623 2,831,470 1,800,000 1,800,000 Reappropriated Funds 0 0 0 0 Federal Funds 1,759,888 0 400,000 400,000

Aquatic Nuisance Species Program 6,805,165 4,441,158 3,936,264 3,936,370 FTE 5.1 5.2 4.0 4.0 General Fund 0 0 0 0 Cash Funds 6,805,165 4,441,158 3,936,264 3,936,370 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Game Damage Claims and Prevention 1,168,354 928,181 1,282,500 1,282,500 General Fund 0 0 0 0 Cash Funds 1,168,354 928,181 1,282,500 1,282,500 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-12 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Habitat Partnership Program 1,934,470 2,841,446 2,537,572 2,537,673 FTE 5.3 6.1 3.0 3.0 General Fund 0 0 0 0 Cash Funds 1,934,470 2,841,446 2,537,572 2,537,673 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Grants and Habitat Partnerships 276,921 602,336 1,625,000 1,625,000 General Fund 0 0 0 0 Cash Funds 276,921 602,336 1,625,000 1,625,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Asset Maintenance and Repairs 2,896,808 3,971,334 5,100,000 5,100,000 General Fund 0 0 0 0 Cash Funds 2,896,808 3,971,334 5,100,000 5,100,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Annual Depreciation-lease Equivalent Payment 16,365 31,680 194,797 0 General Fund 0 0 0 0 Cash Funds 16,365 31,680 194,797 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-13 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Beaver Park Dam Repayment 333,333 333,333 333,334 333,334 General Fund 0 0 0 0 Cash Funds 333,333 333,333 333,334 333,334 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Chatfield Reallocation Project Loan Repayment 276,699 276,699 276,700 276,700 General Fund 0 0 0 0 Cash Funds 276,699 276,699 276,700 276,700 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Indirect Cost Assessment 8,012,950 7,710,627 4,295,260 4,405,610 General Fund 0 0 0 0 Cash Funds 3,434,016 3,563,925 3,644,053 3,819,721 Reappropriated Funds 0 0 0 0 Federal Funds 4,578,934 4,146,702 651,207 585,889

SUBTOTAL - (B) Special Purpose 33,251,391 33,045,253 31,091,359 31,007,239 (0.3%) FTE 14.4 17.9 11.8 11.8 0.0% General Fund 0 0 0 0 0.0% Cash Funds 26,068,675 27,279,047 29,290,152 29,271,350 (0.1%) Reappropriated Funds 0 0 0 0 0.0% Federal Funds 7,182,716 5,766,206 1,801,207 1,735,889 (3.6%)

TOTAL - (5) Division of Parks and Wildlife 149,497,109 157,098,486 169,753,085 169,830,127 0.0% FTE 903.0 300.8 895.5 898.5 0.3% General Fund 150,000 125,000 125,000 0 (100.0%) Cash Funds 119,261,657 127,493,703 148,207,389 148,474,749 0.2% Reappropriated Funds 0 0 0 0 0.0% Federal Funds 30,085,452 29,479,783 21,420,696 21,355,378 (0.3%)

16-Nov-2020 A-14 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

(6) COLORADO WATER CONSERVATION BOARD

(A) Administration

Personal Services 2,996,093 3,253,460 3,549,623 3,550,495 FTE 30.3 30.6 32.0 32.0 General Fund 0 0 0 0 Cash Funds 2,996,093 3,253,460 3,549,623 3,550,495 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Operating Expenses 534,687 1,129,738 542,540 542,540 General Fund 0 0 0 0 Cash Funds 534,687 1,129,738 542,540 542,540 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

River Decision Support Systems 410,024 462,462 506,225 506,330 FTE 3.0 3.5 4.0 4.0 General Fund 0 0 0 0 Cash Funds 410,024 462,462 506,225 506,330 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-15 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

SUBTOTAL - (A) Administration 3,940,804 4,845,660 4,598,388 4,599,365 0.0% FTE 33.3 34.1 36.0 36.0 0.0% General Fund 0 0 0 0 0.0% Cash Funds 3,940,804 4,845,660 4,598,388 4,599,365 0.0% Reappropriated Funds 0 0 0 0 0.0% Federal Funds 0 0 0 0 0.0%

(B) Special Purpose Intrastate Water Management and Development 301,841 312,116 361,821 361,821 FTE 0.0 0.0 0.0 0.0 General Fund 0 0 0 0 Cash Funds 301,841 312,116 361,821 361,821 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Federal Emergency Management Assistance 3,990,220 5,806,946 322,442 322,510 FTE 1.8 2.3 3.0 3.0 General Fund 0 0 0 0 Cash Funds 0 0 13,732 13,732 Reappropriated Funds 0 0 0 0 Federal Funds 3,990,220 5,806,946 308,710 308,778

Weather Modification 16,974 0 25,000 25,000 General Fund 0 0 0 0 Cash Funds 16,974 0 25,000 25,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-16 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Water Conservation Program 267,085 280,069 507,119 502,516 FTE 3.2 3.0 5.0 5.0 General Fund 0 0 0 0 Cash Funds 267,085 280,069 507,119 502,516 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Water Efficiency Grant Program 606,045 489,569 607,798 607,798 FTE 1.0 1.0 1.0 1.0 General Fund 0 0 0 0 Cash Funds 606,045 489,569 607,798 607,798 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Severance Tax Fund 1,225,052 1,232,400 1,275,500 1,275,500 General Fund 0 0 0 0 Cash Funds 1,225,052 1,232,400 1,275,500 1,275,500 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Interbasin Compacts 522,315 413,736 1,179,458 1,179,554 FTE 3.5 3.6 3.7 3.7 General Fund 0 0 0 0 Cash Funds 522,315 413,736 1,179,458 1,179,554 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-17 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Platte River Basin Cooperative Agreement 224,865 119,068 249,812 249,839 FTE 1.0 1.0 1.0 1.0 General Fund 0 0 0 0 Cash Funds 224,865 119,068 249,812 249,839 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Colorado Watershed Protection Fund 9,034 123,904 90,000 90,000 General Fund 0 0 0 0 Cash Funds 9,034 123,904 90,000 90,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

CWCB Projects Bill 34,516,193 38,907,770 26,180,000 0 General Fund 0 0 0 0 Cash Funds 34,516,193 38,907,770 26,180,000 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Proposed legislation wildfire risk mitigation and watershed restoration 0 0 0 5,000,000 * General Fund 0 0 0 0 Cash Funds 0 0 0 5,000,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

*Line item contains a decision item. *Line item contains reflects a request for legislation.

16-Nov-2020 A-18 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

Indirect Cost Assessment 817,769 597,145 655,870 634,353 General Fund 0 0 0 0 Cash Funds 758,714 597,145 589,722 546,680 Reappropriated Funds 0 0 0 0 Federal Funds 59,055 0 66,148 87,673

Colorado Water Plan Implementation 0 1,336,810 0 0 General Fund 0 1,336,810 0 0 Cash Funds 0 0 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

H.B. 15-1006 Invasive Phreatopyhte Grants 625,329 59,983 0 0 General Fund 0 0 0 0 Cash Funds 625,329 59,983 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

H.B. 16-1256 South Platte Water Storage Study 0 0 0 0 General Fund 0 0 0 0 Cash Funds 0 0 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

H.B. 15-1178 Emergency Pumping of High Groundwater 13,869 0 0 0 General Fund 0 0 0 0 Cash Funds 13,869 0 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-19 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

SUBTOTAL - (B) Special Purpose 43,136,591 49,679,516 31,454,820 10,248,891 (67.4%) FTE 10.5 10.9 13.7 13.7 (0.0%) General Fund 0 1,336,810 0 0 0.0% Cash Funds 39,087,316 42,535,760 31,079,962 9,852,440 (68.3%) Reappropriated Funds 0 0 0 0 0.0% Federal Funds 4,049,275 5,806,946 374,858 396,451 5.8%

TOTAL - (6) Colorado Water Conservation Board 47,077,395 54,525,176 36,053,208 14,848,256 (58.8%) FTE 43.8 45.0 49.7 49.7 0.0% General Fund 0 1,336,810 0 0 0.0% Cash Funds 43,028,120 47,381,420 35,678,350 14,451,805 (59.5%) Reappropriated Funds 0 0 0 0 0.0% Federal Funds 4,049,275 5,806,946 374,858 396,451 5.8%

16-Nov-2020 A-20 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

(7) DIVISION OF WATER RESOURCES (A) Division Operations Water Administration 21,239,657 21,324,021 23,142,942 23,148,387 FTE 239.6 241.3 247.0 247.0 General Fund 21,029,411 21,382,338 22,397,727 22,403,048 Cash Funds 220,725 (58,317) 745,215 745,339 Reappropriated Funds (10,479) 0 0 0 Federal Funds 0 0 0 0 Well Inspection 292,508 279,186 379,038 379,038 FTE 3.0 2.5 3.0 3.0 General Fund 0 0 0 0 Cash Funds 292,508 279,186 379,038 379,038 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Satellite Monitoring System 457,038 527,055 575,204 575,204 FTE 2.0 1.0 2.0 2.0 General Fund 189,424 190,721 194,968 194,968 Cash Funds 267,614 336,334 380,236 380,236 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Federal Grants 183,520 202,343 230,000 230,000 FTE 0.0 0.0 0.0 0.0 General Fund 0 0 0 0 Cash Funds 0 0 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 183,520 202,343 230,000 230,000

16-Nov-2020 A-21 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

River Decision Support Systems 211,527 212,449 212,467 212,467 FTE 2.0 2.0 2.0 2.0 General Fund 0 0 0 0 Cash Funds 211,527 212,449 212,467 212,467 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0 SUBTOTAL - (A) Division Operations 22,384,250 22,545,054 24,539,651 24,545,096 0.0% FTE 246.6 246.8 254.0 254.0 0.0% General Fund 21,218,835 21,573,059 22,592,695 22,598,016 0.0% Cash Funds 992,374 769,652 1,716,956 1,717,080 0.0% Reappropriated Funds (10,479) 0 0 0 0.0% Federal Funds 183,520 202,343 230,000 230,000 0.0%

(B) Special Purpose Dam Emergency Repair 0 0 50,000 50,000 General Fund 0 0 0 0 Cash Funds 0 0 50,000 50,000 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

Indirect Cost Assessment 57,412 68,094 46,046 30,163 General Fund 0 0 0 0 Cash Funds 55,575 67,566 42,074 26,059 Reappropriated Funds 0 0 0 0 Federal Funds 1,837 528 3,972 4,104

CWCB Projects Bill 379,632 234,515 0 0 General Fund 0 0 0 0 Cash Funds 379,632 234,515 0 0 Reappropriated Funds 0 0 0 0 Federal Funds 0 0 0 0

16-Nov-2020 A-22 NAT1-brf Appendix A: Numbers Pages

FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Request vs. Actual Actual Appropriation Request Appropriation

SUBTOTAL - (B) Special Purpose 437,044 302,609 96,046 80,163 (16.5%) FTE 0.0 0.0 0.0 0.0 0.0% General Fund 0 0 0 0 0.0% Cash Funds 435,207 302,081 92,074 76,059 (17.4%) Reappropriated Funds 0 0 0 0 0.0% Federal Funds 1,837 528 3,972 4,104 3.3%

TOTAL - (7) Division of Water Resources 22,821,294 22,847,663 24,635,697 24,625,259 (0.0%) FTE 246.6 246.8 254.0 254.0 0.0% General Fund 21,218,835 21,573,059 22,592,695 22,598,016 0.0% Cash Funds 1,427,581 1,071,733 1,809,030 1,793,139 (0.9%) Reappropriated Funds (10,479) 0 0 0 0.0% Federal Funds 185,357 202,871 233,972 234,104 0.1%

TOTAL - Department of Natural Resources 263,949,302 310,421,750 298,380,695 283,190,882 (5.1%) FTE 1,240.3 641.6 1,257.8 1,262.9 0.4% General Fund 27,194,289 34,408,227 32,699,083 35,168,251 7.6% Cash Funds 195,144,953 232,781,002 235,532,101 217,454,324 (7.7%) Reappropriated Funds 6,639,823 7,235,005 6,945,362 7,303,169 5.2% Federal Funds 34,970,237 35,997,516 23,204,149 23,265,138 0.3%

16-Nov-2020 A-23 NAT1-brf APPENDIX B FOOTNOTES AND INFORMATION REQUESTS UPDATE ON LONG BILL FOOTNOTES

The General Assembly includes footnotes in the annual Long Bill to: (a) set forth purposes, conditions, or limitations on an item of appropriation; (b) explain assumptions used in determining a specific amount of an appropriation; or (c) express legislative intent relating to any appropriation. Footnotes to the 2020 Long Bill (H.B. 20-1360) can be found at the end of each departmental section of the bill at https://leg.colorado.gov/bills/HB20-1360. The Long Bill footnotes relevant to this document are listed below.

88 Department of Natural Resources, Executive Director’s Office, Administration -- In addition to the transfer authority provided in Section 24-75-108, C.R.S., the Department may transfer up to 5.0 percent of the total appropriation between the line items for Personal Services and Operating Expenses.

COMMENT: This footnote authorizes the Department to use appropriations from either EDO’s Personal Services or Operating Expenses line item to cover over expenditures in the two line items.

89 Department of Natural Resources, Executive Director's Office, Administration, Health, Life, and Dental -- The General Fund appropriation includes a decrease of $1,035,518 that is equal to 5.0 percent of the General Fund portion of estimated base salary for the Department. The reduction in this General Fund appropriation is in lieu of a 5.0 percent personal services base reduction and provides the Department with increased flexibility to absorb the reduction and engage in more considered targeted reductions across all department divisions and programs. This reduction is not intended to reduce the Health, Life, and Dental benefit provided to state employees. It is the General Assembly's intent that Health, Life, and Dental costs for employees, as approved in budget actions, be fully paid within personal services appropriations augmented by Department allocations from central benefits appropriations.

COMMENT: This footnote explains assumptions used in determining the amount of the FY 2020-21 appropriation for Health, Life, and Dental. The footnote describes the adjustment made as a statewide compensation balancing action. This item is addressed in the Statewide Compensation briefing document.

93 Department of Natural Resources, Division of Parks and Wildlife, Special Purpose, Off- highway Vehicle Direct Services - This appropriation remains available for expenditure until the completion of the project or the close of the 2022-23 state fiscal year, whichever comes first.

COMMENT: This footnote authorizes three years of spending authority in order to allow the Division enough time to select grant recipients and to account for weather events that may extend the project completion time to more than a year.

16-Nov-2020 B-1 NAT1-brf 94 Department of Natural Resources, Division of Parks and Wildlife, Special Purpose, Grants and Habitat Partnerships - This appropriation remains available for expenditure until the completion of the project or the close of the 2022-23 state fiscal year, whichever comes first.

COMMENT: This footnote authorizes three years of spending authority in order to allow the Division enough time to select grant recipients and to account for weather events that may extend the project completion time to more than a year.

95 Department of Natural Resources, Division of Parks and Wildlife, Special Purpose, Asset Maintenance and Repairs - This appropriation remains available for expenditure until the completion of the project or the close of the 2022-23 state fiscal year, whichever comes first.

COMMENT: This footnote authorizes three years of spending authority in order to allow the Division enough time to select grant recipients and to account for weather events that may extend the project completion time to more than a year.

UPDATE ON LONG BILL REQUESTS FOR INFORMATION

The Joint Budget Committee annually submits requests for information to executive departments and the judicial branch via letters to the Governor, the Chief Justice, and other elected officials. Each request is associated with one or more specific Long Bill line item(s), and the requests have been prioritized by the Joint Budget Committee as required by Section 2-3-203 (3), C.R.S. Copies of these letters are included as Appendix L of the annual Appropriations Report. The requests for information relevant to this document are listed below.

6 Department of Natural Resources, Division of Parks and Wildlife -- The Division of Parks and Wildlife is requested to provide the Joint Budget Committee with a report on Parks and Outdoor Recreation and Wildlife sources of revenue, as well as the expenditures of revenues by revenue type. The report should provide an analysis of lottery funds Great Outdoors Colorado Board Grants used for operations and capital projects. The report is requested to be submitted by November 1, 2020.

COMMENT: The Department provided a response for this request for information, which was consolidated and displayed in the General Factors Driving the Budget section of this document.

Staff recommends removing this request for information. Most of this information can be found in public documents on the CPW website. Staff can work with the Department to acquire information that cannot be found in public records.

16-Nov-2020 B-2 NAT1-brf APPENDIX C DEPARTMENT ANNUAL PERFORMANCE REPORT

Pursuant to Section 2-7-205 (1)(a)(I), C.R.S., by November 1 of each year, the Office of State Planning and Budgeting is required to publish an Annual Performance Report for the previous fiscal year for the Department of Natural Resources. This report is to include a summary of the Department’s performance plan and most recent performance evaluation for the designated fiscal year. In addition, pursuant to Section 2-7-204 (3)(a)(I), C.R.S., the Department of Natural Resources is required to develop a Performance Plan and submit the plan for the current fiscal year to the Joint Budget Committee and appropriate Joint Committee of Reference by July 1 of each year.

For consideration by the Joint Budget Committee in prioritizing the Department's FY 2021-22 budget request, the FY 2019-20 Annual Performance Report and the FY 2020-21 Annual Performance Plan can be found at the following link: https://www.colorado.gov/pacific/performancemanagement/natural-resources

16-Nov-2020 CC-1 NAT1-brf STATE OF COLORADO DEPARTMENT OF PERSONNEL & ADMINISTRATION OFFICE OF THE STATE ARCHITECT

SUPPLEMENTAL CAPITAL CONSTRUCTION/CAPITAL RENEWAL PROJECT REQUEST ‐ NARRATIVE (S CC/CR‐N)* A (1) Project Title Increase Access to State Parks B Department of Natural (1) Agency: Resources, Colorado Parks and (2) OSA Delegate Signature: Date Wildlife C (1) Funding Type: General Fund (2) Supplemental Type: Supplemental (2) State Controller Project D (1) Project Phase (Phase _of_): N/A #: X Capital Construction (CC) (2) Principal Representative 11-2-2020 E (1) Project Type: Capital Renewal (CR) Signature: Date F (1) Original Appropriation Year: FY 2020‐21 (2) OSA Review Signature Date G (1) Fiscal Year to be Modified: FY 2020‐21 (2) Revision Date: Date * Attach S CC/CR‐CS

A. SUPPLEMENTAL CRITERIA: Colorado Parks and Wildlife (CPW) requests $20,000,000 in Capital Construction Funds to construct, rehabilitate, and improve infrastructure and facilities on state parks. This supplemental request includes funding to provide significant facility and public access improvements at 12 parks statewide. This supplemental request is not associated with any previous appropriation and is based on data that was not previously available.

B. SUPPLEMENTAL JUSTIFICATION: The Colorado State Parks system consists of 42 state parks encompassing almost 240,000 acres. Cherry Creek State Park was the first designated state park in Colorado, created in 1959. The newest state park is Fishers Peak State Park, which officially opened to the public in 2020.

Colorado is legendary for its outdoor recreation and state parks provide an important gateway for Colorado citizens and visitors to experience the outdoors in a safe, family‐friendly environment. Maintenance and capacity improvements have not kept up with growth in demand, compromising the user experience at Colorado state parks. Visitation at state parks has increased steadily over the last five years, with a net increase of more than 2.2 million visitor days from FY 2014‐15 through FY 2018‐19, and a notable 30% increase during the spring of 2020. While the number of people visiting state parks has grown, the state parks system has actually lost acreage in recent years. Two state parks, Bonny Reservoir and San Luis Lakes, were removed from the state park system because of insufficient or inconsistent water supply.

Colorado’s state parks system has seen an unprecedented increase in use during the 2020 stay at home/safer at home orders. A $20 million investment in capacity expansion projects at existing parks (including accelerated buildout of Fishers Peak State Park) will relieve pressure on the system while providing new amenities to meet future demand. Expansion projects at existing parks include new campgrounds, improved amenities at existing campgrounds, improved fishing and boating opportunities, and additional trail miles.

This proposal uses one‐time funds to make a significant capital investment in the state parks system. Any incremental change in ongoing management costs for expanded amenities would be covered by fee revenue. This investment will support shovel‐ready projects at parks around the state, which will stimulate economic growth for nearby communities. The capacity expansions will improve outdoor recreation opportunities now, in response to the COVID‐driven demand and ensure that Colorado’s recreational infrastructure is able to absorb increased usage far into the future.

C. PROJECT SUMMARY/STATUS: For FY 2020‐21, capital projects proposed for funding from Capital Construction Funds include the following:

1. Fishers Peak additional improvement $3 million Colorado's next state park, Fishers Peak has a lot to offer and the trail system will be the best way to connect people to those special places. This request will help complete a trails feasibility study, which will guide the construction of environmentally friendly and sustainable trails. Approximately 15‐20 miles of trails will be built for hikers and bikers, including a hiking trail to the top of Fishers Peak. Funding will also be used to create additional trailheads and trail amenities like signage and benches.

2. Steamboat Camper services building $1.8 million ($900,000 requested) Steamboat Lake State Park has one Camper Services Building servicing two major campgrounds. Visitors in the Sunrise Vista Campground are forced to drive to Dutch Hill to shower. There are 188 campsites using the current building, which results in crowding and maintenance challenges. The visitor experience is negatively impacted by the current situation. A second Camper Services Building has been designed for the Sunrise Vista Campground and is ready to bid. The construction season at Steamboat is limited due to the high elevation of the park, and starting

16-Nov-2020 D-1 NAT1-brf work early in the season will have significant benefits. The total project request is for $1,800,000, half of which will come from the Land and Water Conservation Fund.

3. Ridgway Group Campground $1,500,000 This request adds a Group Campground to Ridgway State Park’s camping options. A Group Campground is one of the highest priority requests from visitors at Ridgway State Park. Group campgrounds are a great way to connect larger families and group gatherings into one, more private, area within the park. Currently the park does not offer a separate consolidated group camping facility. Groups must reserve individual sites that many times are not within the same area, causing the group to be separated. The new Group Campground will provide individual sites closely grouped together with the flexibility to accommodate a variety of group sizes up to a capacity of 60+ individuals within the campground. The Group Campground will consist of 15 individual RV sites, 8‐10 walk‐in tent sites, a small camper services building with showers, and a group picnic shelter with fire pit and grills. This new Group Campground will help meet the increased visitation and camping demands the park is facing.

4. Navajo Candelaria and Marina Wells $150,000 CPW recently completed construction of a domestic water treatment system and storage facility at Navajo State Park for water use throughout the park’s main campgrounds and central infrastructure including fire suppression supply. The system is currently supplied by two wells that are dependent on groundwater levels. These wells were barely able to meet weekly peak use demands this past year. The project to incorporate additional wells into the water system will better ensure uninterrupted clean water supply for the park with visitation, even beyond the use seen this past season, by maintaining minimum flow even if there are groundwater supply issues. It will also help by expediting the recharge/refill of the system, especially in the event of an emergency. Fire suppression has the ability to utilize the entire water storage supply in a very short time.

5. Pueblo boat ramp parking, ramps 1 & 2 $3.2 million Lake Pueblo is one of the most popular parks in the system and visitation demands continue to increase. This project will add additional paved parking spots at each boat ramp, to accommodate more boaters. The project also includes adding a new fish cleaning station and demolishing an old toilet building that is beyond its useful life and replacing it with a new, cost efficient vault toilet.

6. North Sterling Elks and Chimney view Electrical upgrade $714,400 This project will provide 50 upgraded sites and 25 new sites for electric camping spots. The Elks Campground has 50 sites that need to be upgraded to a 50 ampere electric supply, and the Chimney View Campground has 44 sites with no electricity at all. RV users currently experience problems with breakers at many campsites, and increased usage has tripped the breakers at many group sites over the summer. This project will provide better customer service through an upgraded system that provides the electricity the public demands while reducing staff time to respond to complaints and repair electrical systems.

7. Jackson Lake Foxhills electrical improvements $721,000 Foxhills Campground is the largest campground and contains 90 non‐electric campsites. This project will increase the number of electric sites (the campground’s most utilized sites) available to the public.

8. Cherry Creek‐Swim beach services building ‐ $2,000,000 This project will replace a 45‐year‐old building that accommodates over 2,000 people on any given weekend day. It also addresses public safety and health concerns by providing an adequate number of toilets, sinks, and stalls, which are required by CDPHE to operate a natural swim area. In addition to compliance with regulatory standards, the new facilities will improve the customer experience, increase utility efficiency, and improve maintenance capabilities at the swim beach.

9. Boyd Lake Campground redevelopment $5.5 million This project will redevelop the campground to remove 148 primitive campsites and replace them with approximately 200 new campsites, including re‐configuring roads to minimize excess asphalt and providing concrete pads and full hookups for some campsites. This is the next step in the 2015/16 Boyd Lake Redevelopment Plan. Boyd Lake currently accommodates 50,000+ campers per year, and existing campsites are full weekends from April through October and 80‐100% full during the week with increasing shoulder and "off" season usage Existing facilities are outdated and do not meet customer expectations. This project will provide a better recreational product and increase revenues for the park.

10. AHRA ‐ Salida East Campground Upgrades Phase 2 & 3 $1,514,600 The Salida East site has been an area with little oversight where campers park wherever possible with little campsite organization. CPW worked with the BLM to obtain a lease to create a campground with designated campsites and other amenities. This request creates a structured campground that will add approximately 35 additional campsites, amenities and day use parking for river access.

11. Chatfield ‐ Plum Creek Entrance Expansion $600,000 This project will expand the park entrance to double lanes to accommodate increased traffic. The Plum Creek entrance backs up frequently due to increased development and visitation. The resulting traffic blocks access to other roads in the area and causes challenges with Douglas County.

16-Nov-2020 D-2 NAT1-brf 12. Cameo shooting bays ‐ $200,000 This project will add eight additional shooting bays, and associated share shelters, to the existing twelve bays. By increasing the number of bays available for hosting competitions, Cameo Shooting and Education Center will be able to host national events. These events will attract shooters from all over the country, furthering increasing the visibility of this world‐class facility.

D. SUMMARY OF FUNDING CHANGE: Fiscal Year to be Modified Total Funds Capital Construction Fund (CCF) Cash Funds (CF) $0 FY2020‐21 $20,000,000 $20,000,000

E. ASSUMPTIONS FOR CALCULATIONS AND CASH FUND PROJECTION: The Division uses a cost comparison approach for estimating construction costs for proposed projects. For a given project, regional project managers assemble a scope of work that is as detailed as possible based on the programmatic needs described by staff. Using similar projects that the division has completed in the past as a guide, the project manager will estimate quantities and create a bid tabulation that estimates both materials and labor for the project. The project manager will then generally compare this total estimate to projects of similar types throughout the agency. Professional services and contingencies are included in the price estimates.

For estimated expenditures for professional services, division staff first evaluate a proposed project to determine if the agency has in‐house staff with the professional qualifications and adequate time to design a project properly. CPW typically utilizes contract services on larger or more complicated projects, where professional CPW staff tend to design smaller projects. If a project needs professional services outside the agency, the staff bases the estimate for this work on a percentage basis as published by professional organizations such as the American Institute of Architects.

CPW also utilizes the High Performance Building Certification Program. Very few projects qualify for this program within the agency. If a project does exceed the area threshold, then staff estimate compliance costs based on industry standard percentages as published by the U.S. Green Building Council and the American Institute of Architects.

F. CONSEQUENCES IF NOT FUNDED: If the projects in this request are not funded, the Division’s ability to meet the demand of Colorado’s citizens and visitors will be reduced. These projects provide upgrades and improvements that enhance the park visitor experience that CPW has not yet been able to accommodate within its existing capital resources. CPW relies on revenues gained through camping, boating, and other outdoor recreation on state parks. It is vital to maintain, upgrade, and improve amenities, facilities, and infrastructure to keep visitors safe, enhance the outdoor recreation experience of park visitors, and promote visitation.

G. ADDITIONAL REQUEST INFORMATION: CPW expects to incur the following operating impacts associated with these projects from enterprise cash funds. Additional Request Information Yes No Additional Information Is this request driven by a new statutory mandate? X Will this request require a statutory change? X Is this a one‐time request? X Will this request involve any IT components? X

16-Nov-2020 D-3 NAT1-brf