DOLA Distributes $37 in Severance Tax and Federal Mineral Lease Revenue to Local Governments

DOLA Executive Director Susan Kirkpatrick has announced $37 million in annual state Severance Tax and Federal Mineral Lease Direct Distribution payments are being made to 506 Colorado counties, municipalities and school districts. The distribution comes from revenue from the Local Government Severance Tax Fund and Federal Mineral Lease Fund.

“These funds come at a critical time when many local governments and school districts are struggling to maintain quality services. This is a boost for local economies and allows local officials to decide where the funds are needed most,” said Kirkpatrick.

Ken Parsons, chairman of the Board of Rio Blanco County Commissioners and member of the State’s Energy and Mineral Impact Advisory Committee said, “This is an important source of funding for communities impacted by energy and mineral production. These funds help communities address the impacts of development, processing, or energy conversion on their infrastructure and capacity to improve the sustainability of their communities.”

The Colorado Department of Local Affairs distributes revenue derived from energy and mineral extraction statewide. These revenues come from state severance tax receipts and federal mineral lease non-bonus payments.

Last year’s distribution to Colorado communities was an unprecedented $80 million and in 2008 it was $32 million. This year’s distribution brings the dollar amount more in line with the historical trend characteristic of these funds. The decrease for 2010 is largely attributable to lower commodity prices, particularly natural gas.

The 2009 distribution was the result of high commodity prices as well as the passage of legislation in 2008 changing the distribution formula.

In 2008, the legislature passed SB08-218 and HB08-1083. This legislation established a new method and formula to determine the direct distribution of energy impact dollars from the severance tax and federal mineral leases. The 2010 annual distribution is the second conducted as directed by these two laws.

Prior to the passage of the 2008 legislation, direct distribution was based on the number of employees in the energy impacted communities in which they resided. The new legislation added the following factors: permits, production, employee residence, population and highway user miles (HUTF).

For a report listing distributions by local government recipients, go to:
http://dola.colorado.gov/directdistribution

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Department of Local Affairs Announces $6.1M for Communities

Department of Local Affairs (DOLA) Executive Director Susan Kirkpatrick announced that $6.1 million has been awarded for construction, infrastructure and other community projects that will help improve public facilities and services such as roads and water systems in communities throughout the state.

Kirkpatrick said, “These grants will allow communities to make key investments in projects that will put people to work and strengthen local economies in the short-term, while making communities more livable and economically healthy in the long-term.”

Funding for the Energy and Mineral Impact Assistance Grants is derived from state severance tax and federal mineral lease revenues. The Department of Local Affairs has awarded $1,548,381 toward Tier I projects and $4,641,032 toward Tier II projects. Tier I grants fund projects up to $200,000 and Tier II grants fund projects greater than $200,000 up to $2,000,000.

Tony Hernandez, director of DOLA’s Division of Local Government said, "Communities that are impacted by energy and mineral development throughout the state will benefit from these grant awards. The competition for the severance and federal mineral lease grant dollars is stiff. Projects that meet basic needs like water, sewer, drainage, and local roads received highest priority. Projects that demonstrated a strong energy conservation or renewable energy component also received priority.”

The program’s grant process was revamped and refined in 2008 to make it more transparent, accountable and strategic. DOLA worked with legislators, local officials and the energy industry to enhance the effectiveness of the application, review and award process. The grant program was created by the legislature in 1977.

These grants come from revenue from FY 2009 - 2010, and are not impacted by the Governor’s announcement of budget balancing actions for 2010.

Energy and Mineral Impact Assistance Grants - Tier I Grants List

Tier I Grant Projects:
Bennett Sewer Line Improvements
Adams County
$99,057

Bennett Sewer Line Improvements - Loan
Adams County
$99,057

Deer Trail School Pool Bldg Renovation
Arapahoe County
$82,500

Empire Water System Improvements
Clear Creek County
$45,826

Red Cliff Attorney/Planner Assistance
Eagle County
$20,000

Florence-Frazier Ave & State Highway 115 Improvements
Fremont County
$148,037

Carbondale Wastewater Admin Building Energy Efficiency Plan
Garfield County
$20,705

Kit Carson County DTR System Upgrade
Kit Carson County
$91,199

Ridgway Water Pump Station/Transmission Line
Ouray County
$150,000

Montrose County Road II-35 Retaining Wall
Montrose County
$194,000

Moffat Town Hall/Community Center
Saguache County
$200,000

USJHSD Rural Indigent Care Clinic
San Juan County
$130,000

San Miguel County Treasurer Collection Software
San Miguel County
$100,000

Ault Council Chambers Upgrade
Weld County
$40,500

Yuma County Building Construction & Improvements
Yuma County
$127,500

TIER I TOTAL: $1,548,381

Energy and Mineral Impact Assistance Grants - Tier II Grants List

Tier II Grant Projects:
Gunnison Downtown Ditch System Improvements
Gunnison County
$75,000

Mesa County W&S Dist Water Transmission/Storage Tank
Mesa County
$491,000

Mesa County 33 Rd/Railroad Crossing Improvements
Mesa County
$250,000

Palisade WW Treatment Interceptor
Mesa County
$600,000

Grand Junction 800 MHZ Radio Tower
Mesa County
$600,000

Alamosa Municipal / Public Safety Complex
Alamosa County
$500,000

Idaho Springs Sewer Line Improvements - Phase III
Clear Creek County
$325,032

Haxtun Childcare Center
Phillips County
$300,000

Wiggins Water Project
Morgan County
$100,000

Durango Recycling Facility Expansion
La Plata County
$500,000

La Plata County Oxford Intersection Reconstruction
La Plata County
$600,000

Montrose Facilities Upgrades/Renovation Projects
Montrose County
$300,000

TIER II TOTAL: $4,641,032

TIER I & TIER II GRANTS TOTAL: $6,189,413

Energy and Mineral Impact Assistance Fund (EIAF) Grant Program is Suspended as of August 23, 2010

Tough decisions impacting Colorado’s budget, modify the timeline and grant funds available through the Energy and Mineral Impact Assistance Fund (EIAF) as outlined in a letter from Governor Bill Ritter to the Joint Budget Committee on August 23, 2010.

Funding for EIAF grants are derived from state severance tax and federal mineral lease revenues. The volatile nature of the Impact fund combined with revenue declines means the grant program is suspended for FY 2010 - FY 2011. However, the EIAF program will continue and DOLA anticipates grant making once the state’s economy recovers from the worst recession since the Great Depression. Dollars for Direct Distribution to cities and counties will be available.

The following outlines the proposed reallocation that will immediately impact the grant program:

• Transfer of $5 million in Severance Tax revenue from the Energy Impact Assistance fund to the General Fund.  This will permanently reduce the fund by $5 million and will be directed to the state’s General Fund.

• Transfer of $15 million in Federal Mineral Lease revenue from the Energy Impact Assistance fund to the General Fund.  This will permanently reduce the fund and dollars will be directed to the state’s General Fund.

• An additional $30 million from the Energy Impact Assistance fund has been reserved for use in FY 2010/2011 in the event additional budget balancing measures are necessary.

The results of the reallocation of the Severance and Federal Mineral Lease dollars are as follows:

1. Suspend 2010 applications - no grant awards after Aug. 2010.  No additional Tier I or Tier II applications will be considered.
2. The recent award of $6.8 million for Tier I and Tier II projects that had been suspended from 2009-2010, are not affected by this action. These awards will be announced on August 25, 2010.

Communities to Benefit from Tier I and Tier II Energy Impact Grants

Energy Impact Tier I grants were recently awarded by DOLA Executive Director Susan Kirkpatrick.   A total of 15 projects were awarded $1.5 million for improvements ranging from water and wastewater to public facilities.  Under Tier I funding, projects can receive up to $200,000.

Members of the State Energy and Mineral Impact Assistance Advisory Committee met on Monday, August 2, to review the most current round of applications for Tier II funding.  Under the Energy and Mineral Impact Assistance Fund, Tier II projects are intended to support a wide variety of community development projects to improve quality of life in communities with awards greater than $200,000 and up to $2,000,000.

A total of $4.74 million in funding is available this grant cycle with more than $15 million in requests submitted.  There were 19 applications reviewed by the Committee.

Decisions on Tier II projects will be announced later this month.

Click here for more information about the Energy and Mineral Impact Assistance Fund.

DLG Director Tony Hernandez Visits Solar Installation Project in Carbondale

During a recent visit to the Crystal Meadows Senior Housing Complex in Carbondale, DLG's director, Tony Hernandez, was treated to a firsthand look at solar paneling that will help generate 15 percent of the electricity to power Crystal Meadows' electrical needs.

The project was funded in part by a $86,929 Energy and Mineral Impact grant to Garfield County through the New Energy Communities Initiative.  The Initiative was launched in 2008 by Governor Bill Ritter and is designed to maximize energy efficiency and conservation, enhance community livability, promote economic development, and address climate change by reducing carbon emissions.  Garfield County is one of 14 recipients that received nearly $10 million toward regional, collaborative efforts to save money, save energy and create jobs.

Hernandez joined Joani Matranga of the Governor's Energy Office, Scott Ely of Sunsense, Jeff Dickinson Mike Ogburn and Rob Morey of the Garfield New Energy Communities Initiative (G-NECI), Patrick Johnson of Solar Flair and Alice Laird of Clean Energy Economy for the Region, for a tour of the solar array that will be powering the complex.

About his visit, Hernandez said, "I really appreciate the opportunity to see firsthand how DOLA's investments are improving people's lives.  I am honored that I was able to meet with our partners in this important endeavor.  Garfield County is a great example of a community committed to sustainability and I look forward to hearing about their future progress and accomplishments."

Windsor Town Hall Renovation Celebrated

Governor Bill Ritter recently visited Windsor to help celebrate the completion of the Town Hall renovation. The $3,058,243 project was made possible through a collaborative effort that included an Energy and Mineral Impact grant from DOLA for $859,402 and a grant through the New Energy Communities initiative for $75,000.

The Windsor Town Hall is a great example of re-use of an existing building. Damaged in the Windsor tornado that struck on May 22, 2008, the building has gone through repairs to its roof, construction of an elevator, renovation of its third floor and energy efficiency improvements.

Coverage of the event can be found at:
Town Hall renovations unveiled
Windsor Now
07.25.10

Windsor christens town hall
The Coloradoan
07.23.10

Windsor town hall renovations unveiled; Gov Ritter attends ceremony
Windsor Tribune
07.23.10