HB26-1338 • 2026

2026 Water Projects Bill

The bill appropriates the following amounts for the 2026-27 state fiscal year from the Colorado water conservation board (CWCB) construction fund to the CWCB or the division of water resources in the

Taxes Water

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. K. McCormick, Rep. T. Winter, Sen. D. Roberts, Sen. C. Simpson
Last action: 2026-03-30
Official status: House Committee on Agriculture, Water & Natural Resources Refer Unamended to Appropriations
Effective date: Not listed

Plain English Breakdown

The candidate explanation included details about specific loans that were not mentioned in the official source material.

Water Projects Bill

This bill appropriates funds from the CWCB construction fund to various water-related projects in Colorado, including satellite monitoring, floodplain mapping, weather modification programs, and watershed restoration.

What This Bill Does

Provides $380,000 for the continuation of the satellite monitoring system for water rights administration.
Allocates $500,000 to continue the floodplain map modernization program across Colorado communities.
Funds a weather modification permitting program with $500,000 to assist districts in developing cloud seeding programs.
Supports the Colorado Mesonet project with $200,000 for temperature and precipitation data collection.
Allocates $2.5 million for water forecasting partnerships to improve volumetric supply forecasts.
Increases loan limits from $10 million to $30 million for certain CWCB projects.

Who It Names or Affects

The Colorado Water Conservation Board (CWCB) and the Division of Water Resources in the Department of Natural Resources will receive funding for various water-related projects.
Communities across Colorado that rely on updated floodplain maps and improved water management practices.

Terms To Know

Colorado Water Conservation Board (CWCB): A state agency responsible for managing water resources in Colorado.
Severance Tax Perpetual Base Fund: A fund that provides financial support for various projects, including those related to water conservation and management.

Limits and Unknowns

The bill does not specify how the remaining funds in the turf replacement fund will be used after June 30, 2028.
It is unclear if there are any restrictions on the use of transferred funds from the CWCB construction fund to other designated funds.

Bill History

2026-03-30 House
House Committee on Agriculture, Water & Natural Resources Refer Unamended to Appropriations
2026-03-19 House
Introduced In House - Assigned to Agriculture, Water & Natural Resources

Official Summary Text

The bill appropriates the following amounts for the 2026-27 state fiscal year from the Colorado water conservation board (CWCB) construction fund to the CWCB or the division of water resources in the department of natural resources for the following projects:
Continuation of the satellite monitoring system, $380,000 (
section 1
of the bill);
Continuation of the floodplain map modernization program, $500,000 (
section 2
);
Continuation of the weather modification permitting program, $500,000 (
section 3
);
Continuation of the Colorado Mesonet project, $200,000 (
section 5
);
Continuation of the water forecasting partnership project, $2,500,000 (
section 6
);
Continuation of Colorado decision support system operation and maintenance, $750,000 (
section 7
);
Support for water plan agency actions, $1,350,000 (
section 9
);
Continuation of the Colorado watershed restoration and flood mitigation projects, $5,000,000 (
section 10
); and
Continuation of the upper Colorado river commission planning, $750,000 (
section 11
).

Section 4
directs the state treasurer to transfer up to $6,000,000 from the CWCB construction fund to the CWCB litigation fund on or before July 1, 2026.

Section 8
restores the fish and wildlife resources fund balance by transferring $2,000,000 from the CWCB construction fund to the fish and wildlife resources fund.

Section 12
authorizes the CWCB to make a loan in an amount of $151,500,000 from the severance tax perpetual base fund to the city of Fort Collins to support the Halligan water supply project.

Section 13
authorizes the CWCB to make a loan in an amount of $20,166,670 from the severance tax perpetual base fund to the Lower Latham Reservoir Company for the Jurgens reservoir construction project.

Section 14
appropriates $37,700,000 from the water plan implementation cash fund to the CWCB to award grants that will help implement the state water plan.

Section 15
clarifies that the money that is currently in the turf replacement fund is appropriated for designated purposes to the CWCB until June 30, 2028. Any money remaining in the turf replacement fund on July 1, 2028, is transferred to the CWCB construction fund.

Section 16
makes technical corrections so that money appropriated in 2025 is available to the department of natural resources executive director's office for the purpose of paying for a study by the Colorado water center at Colorado state university.
Under current law, the CWCB may authorize loans up to $10 million from the CWCB construction fund or severance tax perpetual base fund without legislative authorization. The bill increases that amount to $30 million (
section 17
).
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0874.01 Christopher McMichael x4775 HOUSE BILL 26-1338
House Committees Senate Committees
Agriculture, Water & Natural Resources
A BILL FOR AN ACT
CONCERNING THE COLORADO WATER CONSERVATION BOARD101
OPERATIONS, AND , IN CONNECTION THEREWITH , FUNDING102
PROJECTS AND MAKING AN APPROPRIATION.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill appropriates the following amounts for the 2026-27 state
fiscal year from the Colorado water conservation board (CWCB)
construction fund to the CWCB or the division of water resources in the
department of natural resources for the following projects:
! Continuation of the satellite monitoring system, $380,000
HOUSE SPONSORSHIP
McCormick and Winter T.,
SENATE SPONSORSHIP
Roberts and Simpson,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
(section 1 of the bill);
! Continuation of the floodplain map modernization
program, $500,000 (section 2);
! Continuation of the weather modification permitting
program, $500,000 (section 3);
! Continuation of the Colorado Mesonet project, $200,000
(section 5);
! Continuation of the water forecasting partnership project,
$2,500,000 (section 6);
! Continuation of Colorado decision support system
operation and maintenance, $750,000 (section 7);
! Support for water plan agency actions, $1,350,000 (section
9);
! Continuation of the Colorado watershed restoration and
flood mitigation projects, $5,000,000 (section 10); and
! Continuation of the upper Colorado river commission
planning, $750,000 (section 11).
Section 4 directs the state treasurer to transfer up to $6,000,000
from the CWCB construction fund to the CWCB litigation fund on or
before July 1, 2026.
Section 8 restores the fish and wildlife resources fund balance by
transferring $2,000,000 from the CWCB construction fund to the fish and
wildlife resources fund.
Section 12 authorizes the CWCB to make a loan in an amount of
$151,500,000 from the severance tax perpetual base fund to the city of
Fort Collins to support the Halligan water supply project.
Section 13 authorizes the CWCB to make a loan in an amount of
$20,166,670 from the severance tax perpetual base fund to the Lower
Latham Reservoir Company for the Jurgens reservoir construction
project.
Section 14 appropriates $37,700,000 from the water plan
implementation cash fund to the CWCB to award grants that will help
implement the state water plan.
Section 15 clarifies that the money that is currently in the turf
replacement fund is appropriated for designated purposes to the CWCB
until June 30, 2028. Any money remaining in the turf replacement fund
on July 1, 2028, is transferred to the CWCB construction fund.
Section 16 makes technical corrections so that money appropriated
in 2025 is available to the department of natural resources executive
director's office for the purpose of paying for a study by the Colorado
water center at Colorado state university.
Under current law, the CWCB may authorize loans up to $10
million from the CWCB construction fund or severance tax perpetual
base fund without legislative authorization. The bill increases that amount
to $30 million (section 17).
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Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Continuation of the satellite monitoring system2
- operation and maintenance - appropriation. (1) For the 2026-273
state fiscal year, $380,000 is appropriated to the department of natural4
resources for use by the division of water resources. This appropriation5
is from the Colorado water conservation board construction fund created6
in section 37-60-121, C.R.S. To implement this section, the division of7
water resources may use this appropriation to install, maintain, and8
operate satellite-monitored stream gauges and lysimeters for water rights9
administration and data collection pursuant to section 37-80-102 (10),10
C.R.S.11
(2) The money appropriated in subsection (1) of this section12
remains available for the designated purposes until it is fully expended.13
SECTION 2. Continuation of the Colorado floodplain map14
modernization program - appropriation. (1) For the 2026-27 state15
fiscal year, $500,000 is appropriated to the department of natural16
resources for use by the Colorado water conservation board. This17
appropriation is from the Colorado water conservation board construction18
fund created in section 37-60-121, C.R.S. To implement this section, the19
Colorado water conservation board may use this appropriation to continue20
to assist with the preparation of revised and improved floodplain studies21
and maps for communities throughout Colorado and to participate in22
federally sponsored floodplain map modernization activities.23
(2) The money appropriated in subsection (1) of this section24
remains available for the designated purposes until it is fully expended.25
SECTION 3. Continuation of the weather modification26
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permitting program - appropriation. (1) For the 2026-27 state fiscal1
year, $500,000 is appropriated to the department of natural resources for2
use by the Colorado water conservation board. This appropriation is from3
the Colorado water conservation board construction fund created in4
section 37-60-121, C.R.S. To implement this section, the Colorado water5
conservation board may use this appropriation to assist water6
conservation and conservancy districts with the development of cloud7
seeding programs to provide benefits to recreation, streams, and8
reservoirs through snowpack enhancement.9
(2) The money appropriated in subsection (1) of this section10
remains available for the designated purposes until it is fully expended.11
SECTION 4. Restoration of litigation fund cash balance -12
transfer. On or before July 1, 2026, the state treasurer shall transfer13
$6,000,000, or so much thereof as may be necessary to restore the balance14
of the litigation fund to $6,000,000, from the unreserved cash in the15
Colorado water conservation board construction fund created in section16
37-60-121, C.R.S., to the litigation fund created in section 37-60-12117
(2.5), C.R.S., to assist in addressing legal issues associated with compact18
compliance or any other litigation activities as specified under section19
37-60-121, C.R.S.20
SECTION 5. Continuation of the Colorado Mesonet project21
- appropriation. (1) For the 2026-27 state fiscal year, $200,000 is22
appropriated to the department of natural resources for use by the23
Colorado water conservation board. This appropriation is from the24
Colorado water conservation board construction fund created in section25
37-60-121, C.R.S. To implement this section, the Colorado water26
conservation board may use this appropriation to support the Colorado27
HB26-1338-4-
Mesonet, including for the following activities: Operation, maintenance,1
travel, communications, and database and website management for2
temperature and precipitation stations.3
(2) The money appropriated in subsection (1) of this section4
remains available for the designated purposes until it is fully expended.5
SECTION 6. Continuation of the water forecasting6
partnership project - appropriation. (1) For the 2026-27 state fiscal7
year, $2,500,000 is appropriated to the department of natural resources8
for use by the Colorado water conservation board. This appropriation is9
from the Colorado water conservation board construction fund created in10
section 37-60-121, C.R.S. To implement this section, the Colorado water11
conservation board may use this appropriation to support the development12
of new ground and aerial remote sensing data, to develop hydrologic13
modeling practices, to provide reliable volumetric water supply14
forecasting, and to provide better characterization of snowpack.15
(2) The money appropriated in subsection (1) of this section16
remains available for the designated purposes until it is fully expended.17
SECTION 7. Continuation of Colorado decision support18
system operation and maintenance - appropriation. (1) For the19
2026-27 state fiscal year, $750,000 is appropriated to the department of20
natural resources for use by the Colorado water conservation board. This21
appropriation is from the Colorado water conservation board construction22
fund created in section 37-60-121, C.R.S. To implement this section, the23
Colorado water conservation board may use this appropriation for24
continued operation and maintenance of the Colorado decision support25
system to aid in water resources planning and management.26
(2) The money appropriated in subsection (1) of this section27
HB26-1338-5-
remains available for the designated purposes until it is fully expended.1
SECTION 8. Restoration of fish and wildlife resources fund2
balance - transfer. On July 1, 2026, the state treasurer shall transfer3
$2,000,000 from the Colorado water conservation board construction4
fund created in section 37-60-121, C.R.S., to the fish and wildlife5
resources fund created in section 37-60-121 (6), C.R.S., to continue6
grant-making to assist with the mitigation of fish and wildlife resources7
affected by the construction, operation, or maintenance of water8
diversion, delivery, or storage facilities.9
SECTION 9. Support for water plan action advancement -10
appropriation. (1) For the 2026-27 stat e fiscal y ear, $1,3 50,000 is11
appropriated to the department of natural resources for use by the12
Colorado water conservation board. This appropriation is from the13
Colorado water conservation board construction fund created in section14
37-60-121, C.R.S. To implement this section, the Colorado water15
conservation board may use this appropriation to support water plan16
agency actions, including promoting "One Water" strategies, expanding17
water reuse, developing a measurable and robust statewide water18
messaging campaign, and initiating a water innovation challenge.19
(2) The money appropriated in subsection (1) of this section20
remains available for the designated purposes until it is fully expended.21
SECTION 10. Continuation of the Colorado watershed22
restoration program - appropriation. (1) For the 2026-27 state fiscal23
year, $5,000,000 is appropriated to the department of natural resources24
for use by the Colorado water conservation board. This appropriation is25
from the Colorado water conservation board construction fund created in26
section 37-60-121, C.R.S. To implement this section, the Colorado water27
HB26-1338-6-
conservation board may use this appropriation to support planning,1
engineering, and implementation measures to address technical needs for2
watershed restoration and flood mitigation projects throughout the state3
to provide aquatic habitat protection; quantification of environmental4
flow needs; and monitoring of efforts to support healthy stream and5
watershed goals outlined in the state water plan.6
(2) The money appropriated in subsection (1) of this section7
remains available for the designated purposes until it is fully expended.8
SECTION 11. Continuation of the upper Colorado river9
commission planning - appropriation. (1) For the 2026-27 state fiscal10
year, $750,000 is appropriated to the department of natural resources for11
use by the Colorado water conservation board. This appropriation is from12
the Colorado water conservation board construction fund created in13
section 37-60-121, C.R.S. To implement this section, the Colorado water14
conservation board may use this appropriation to support the upper15
Colorado river commission interstate planning and negotiation efforts,16
including, but not limited to, the following modeling and data analyses:17
Streamgaging and streamflow, runoff forecasting, consumptive use,18
reservoir operations and evaporation, and drought contingency planning.19
(2) The money appropriated in subsection (1) of this section20
remains available for the designated purposes until it is fully expended.21
SECTION 12. Water project loan authorization - Halligan22
water supply project. (1) Pursuant to section 37-60-122 (1)(b), C.R.S.,23
the Colorado water conservation board is authorized to make a loan in the24
amount of $151,500,000 from the severance tax perpetual base fund25
created in section 39-29-109 (2)(a), C.R.S., to the city of Fort Collins for26
the Halligan water supply project to help the city of Fort Collins meet its27
HB26-1338-7-
projected municipal and industrial water needs.1
(2) The money authorized in subsection (1) of this section remains2
available for the designated purposes until it is fully expended.3
(3) The Colorado water conservation board may make loans for4
the project specified in subsection (1) of this section from money that is5
or may become available to the severance tax perpetual base fund. The6
total amount of the loans will be in the amount listed in subsection (1) of7
this section plus or minus the amount, if any, as may be justified by8
reason of fluctuations in construction costs or as may be justified by9
reason of changes in the plans for the project due to differing or10
unforeseen site conditions, errors or omissions in the plans and11
specifications, changes instituted by regulatory agencies, or changes in12
material quantities beyond contract limits.13
SECTION 13. Water project loan authorization - Jurgens14
reservoir construction project. (1) Pursuant to section 37-60-12215
(1)(b), C.R.S., the Colorado water conservation board is authorized to16
make a loan in the amount of $20,166,670 from the severance tax17
perpetual base fund created in section 39-29-109 (2)(a), C.R.S., to the18
Lower Latham Reservoir Company to increase the storage capacity of the19
Jurgens reservoir to provide irrigation water to agricultural land in Weld20
county.21
(2) The money authorized in subsection (1) of this section remains22
available for the designated purposes until it is fully expended.23
(3) The Colorado water conservation board may make loans for24
the project specified in subsection (1) of this section from money that is25
or may become available to the severance tax perpetual base fund. The26
total amount of the loans will be in the amount listed in subsection (1) of27
HB26-1338-8-
this section plus or minus the amount, if any, as may be justified by1
reason of fluctuations in construction costs or as may be justified by2
reason of changes in the plans for the project due to differing or3
unforeseen site conditions, errors or omissions in the plans and4
specifications, changes instituted by regulatory agencies, or changes in5
material quantities beyond contract limits.6
SECTION 14. Grant-making for projects that assist in7
implementing the state water plan - appropriation. (1) For the8
2026-27 state fiscal year, $37,700,000 is appropriated to the department9
of natural resources for use by the Colorado water conservation board.10
This appropriation is from the water plan implementation cash fund11
created in section 37-60-123.3 (1)(a), C.R.S. To implement this12
subsection (1), the Colorado water conservation board may use this13
appropriation for grant-making for projects that assist in the14
implementation of the state water plan pursuant to section 37-60-106.315
(6), C.R.S., through the Colorado water conservation board's application16
and guidelines process.17
(2) The money appropriated in subsection (1) of this section18
remains available for the designated purposes until it is fully expended.19
SECTION 15. Continuation of turf replacement program -20
appropriation - transfer. (1) For the 2025-26 state fiscal year, $550,00021
is appropriated to the department of natural resources for use by the22
Colorado water conservation board. This appropriation is from the turf23
replacement fund created in section 37-60-135 (6)(a)(I), C.R.S. To24
implement this subsection (1), the Colorado water conservation board25
may use this appropriation for the state's turf replacement program in26
accordance with section 37-60-135, C.R.S.27
HB26-1338-9-
(2) The money appropriated in subsection (1) of this section that1
is not expended prior to July 1, 2026, remains available to the Colorado2
water conservation board for the designated purposes until June 30, 2028,3
for the designated purposes.4
(3) On July 1, 2028, the state treasurer shall transfer any money5
remaining in the turf replacement fund created in section 37-60-1356
(6)(a)(I), C.R.S., to the Colorado water conservation board construction7
fund created in section 37-60-121, C.R.S.8
SECTION 16. Severance tax task force appropriation9
correction. In Session Laws of Colorado 2025, section 5 of chapter 193,10
(SB 25-040), amend (1) introductory portion as follows:11
(1) For the 2025-26 state fiscal year, $198,592 is appropriated to12
the department of natural resources for use by the C OLORADO WATER13
CONSERVATION BOARD IN COORDINATION WITH THE executive director's14
office. This appropriation is from the severance tax operational15
PERPETUAL BASE fund created in section 39-29-109 (2)(b)(I) (2)(a)(I.5),16
C.R.S. To implement this act, the office C OLORADO WATER17
CONSERVATION BOARD may use this appropriation as follows:18
SECTION 17. In Colorado Revised Statutes, 37-60-122, amend19
(1)(b) as follows:20
37-60-122. General assembly approval.21
(1) Money in the Colorado water conservation board construction22
fund shall be expended in the following manner and under the following23
circumstances:24
(b) The general assembly may authorize projects as it deems to be25
to the advantage of the people of the state of Colorado and shall direct the26
board to proceed with the projects in the priorities established by the27
HB26-1338-10-
general assembly under terms approved by the general assembly. The1
board is authorized to make loans without general assembly approval in2
amounts not to exceed ten THIRTY million dollars. The unappropriated3
balance of money in the Colorado water conservation board construction4
fund and the state severance tax perpetual base fund shall be available5
and continuously appropriated for this purpose. Notwithstanding section6
24-1-136 (11)(a)(I), the board shall submit a written determination of the7
basis for the project loans to the general assembly by January 15 of the8
year following the year in which the loan was made.9
SECTION 18. Safety clause. The general assembly finds,10
determines, and declares that this act is necessary for the immediate11
preservation of the public peace, health, or safety or for appropriations for12
the support and maintenance of the departments of the state and state13
institutions.14
HB26-1338-11-