Watershed Protection and Forest Health Projects
The Colorado Water Resources and Power Development Authority is authorized to issue bonds, up to fifty million dollars, for the purposes of funding watershed protection projects and forest health projects of governmental agencies.
The Authority may make and contract to make loans with the proceeds of the bonds to governmental agencies to finance the cost of watershed protection projects and forest health projects if the Authority or the governmental agency has entered into an agreement with the Colorado Clean Energy Development Authority, as it existed prior to July 1, 2012, or the Colorado State Forest Service with respect to the application of proceeds of such bonds.
Governmental agencies participating in watershed protection projects and forest health projects shall specify how the moneys made available pursuant to financing by the Authority are to be allocated in a memorandum of understanding with the Authority, subject to the following limitations:
- Up to twenty percent of the proceeds of bonds issued by the Authority may be distributed for watershed protection projects and forest health projects, including the establishment of incentives for use of beetle-infested lumber.
- The remaining proceeds shall be applied to watershed protection projects and forest health projects identified, in consultation with the governmental agencies participating in such projects, by the Colorado State Forest Service pursuant to section 23-31-311, C.R.S.
House Bill 13-1012 extended the Authority’s authorization to fund Watershed Protection and Forest Health Projects until July 1, 2023.
Senate Bill 13-273 modified the definition of Forest Health Projects.
- Interest Rate: Determined by bond market conditions.
- Maximum Term: Useful Life of the Project.
- Eligible Borrowers: "Governmental agencies" means departments, divisions, or other units of state government, special districts, water conservation districts, metropolitan water districts, conservancy districts, irrigation districts, municipal corporations, counties, cities, and other political subdivisions, and the United States or any agency thereof.
- "Governmental agencies" also includes enterprises and any entity, agency, commission, or authority established by any governmental agency, including, without limitation, those established pursuant to an interstate compact or other intergovernmental compact or agreement.