COLORADO WATER RESOURCES and POWER DEVELOPMENT AUTHORITY - FUNCTION and ACTIVITIES

The Authority has been involved in many aspects of water resources development since its creation by the Colorado General Assembly in 1981. Prior to concentrating on financing in 1989, the Authority assisted in the planning, design and construction of water supply projects. Projects included a statewide, satellite-linked stream monitoring system, the Stagecoach Water and Power Project and the Animas-La Plata Project. Over the years the General Assembly has expanded the Authority’s responsibilities to include the financing of drinking water and wastewater treatment facilities. In 2001, the Authority committed $7.3 million to a re-configured Animas-La Plata Project, $15 million for water storage projects in the La Plata River drainage and $20 million to leverage finance water resource projects around the State. In 2003 the Authority was authorized by the General Assembly to finance water and wastewater projects with loans of up to $500 million per entity per project.

The Water Pollution Control Revolving Fund (the "WPCRF") was created within the Authority by the General Assembly under Senate Bill 50 in 1988. Under the Federal Clean Water Act Amendments of 1987, Colorado was required to convert the wastewater grant program to a revolving loan program. This statutory change authorized the Authority to participate in the financing of publicly-owned wastewater treatment works with the Water Quality Control Division and the Division of Local Government. Under the WPCRF program the Authority issues bonds to fund leveraged loans and provides the State's required 20% match on each federal dollar. Through December 2005, the Authority has provided over $39 million to match over $196.3 million in federal grants. The subsidized loans are provided to finance wastewater treatment works (plants, sewers, etc.) and nonpoint source pollution abatement projects. As of December 31, 2005, the Authority, by leveraging the federal funds, had executed 120 WPCRF loans representing over $638 million in projects. Effective January 1, 2006, the Authority Board of Directors approved the Disadvantaged Communities Program, a reduced-interest loan program, to assist low-income communities with populations of 5,000 or less to comply with standards established in the federal Clean Water Act.

The Small Water Resources Projects (the "SWRP") Program was developed after the passage of Senate Bill 67 in 1989. Under the statute, the Authority can expedite its procedures to assist local governments in the financing of water resource projects, defined as water management facilities or hydroelectric facilities, with loans of up to $500 million without legislative review. This process gives the project sponsor and the Authority greater flexibility in reacting to rapidly changing bond market conditions. Financial enhancements provided by the Authority under the program include funding of the debt service reserve fund, pooling multiple borrowers, and subsidizing the cost of bond issuance. As of December 31, 2005, the Authority had executed 48 SWRP loans totaling over $149 million.

In anticipation of the reauthorization of the Federal Safe Drinking Water Act with a state revolving fund mechanism to fund improvements to drinking water systems, the Colorado General Assembly, through Senate Bill 83 in 1995, created the Drinking Water Revolving Fund (the "DWRF") within the Authority. The administration of this fund is handled much like the WPCRF. Initial funding for this program came from a $6.2 million State appropriation in 1995. Under the DWRF program the Authority issues bonds to fund leveraged loans and provides the State’s required 20% match on each federal dollar. Through December 2005, the Authority has provided over $22.2 million to match over $111.3 million in federal grants. The subsidized loans are provided to assist public water systems in financing the cost of infrastructure needed to achieve or maintain compliance with the Safe Drinking Water Act requirements and to protect the public health objectives of the Act. In 2004, the Authority Board of Directors approved the Disadvantaged Communities Program, a reduced-interest loan program, to assist low-income communities with populations of 5,000 or less to comply with safe drinking water standards. As of December 31, 2005, the Authority had executed 68 DWRF loans representing over $208 million in projects.

In addition, the Authority also operates the Water Revenue Bond Program to provide funds up to $500 million, without legislative review, to entities for water and wastewater projects not eligible under the above programs. The Authority subsidizes the costs of bond issuance for the program. Fifteen loans, representing nearly $385 million in projects, have been executed as of December 31, 2005.

As of December 31, 2005, the Authority had executed a total of 251 loans representing over $1.38 billion in projects for all programs.
The Authority's staff reports to a nine-member board, representing the eight major river basins and the City and County of Denver. Appointed by the governor and confirmed by the senate, this board conducts Authority business at public meetings held six times a year in Denver and other locations throughout the State.

Further details regarding Authority activities are available at www.cwrpda.com, e-mail at info@cwrpda.com or by calling Carolyn Simon at 303-830-1550, Ext. 13.

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