CO HB1218

Expands the Colorado Water Conservation Board's authority to accept water loans from private owners for instream flow purposes, increasing the permitted exercise period from 3 years to 5 years within each 10-year period and allowing up to 2 additional 10-year renewal periods.

Authorizes water loans to improve the natural environment to a reasonable degree for stream reaches where the board holds a decreed instream flow water right, with acceptance decisions based on biological analysis performed by the Division of Parks and Wildlife.

Allows water loans to preserve or improve the natural environment for stream reaches where the board does not currently hold a decreed instream flow water right, subject to board review and rules.

Establishes that applicants have the burden of proof to demonstrate loaned water does not cause injury to other vested or conditionally decreed water rights, with appeals to water judges on an expedited de novo basis.

Requires the Colorado Water Conservation Board to promulgate rules regarding the necessary steps for reviewing and accepting loans, including mandatory biological analysis requirements and hearing procedures.