HB 1338

NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
     HOUSE BILL 26-1338
     BY REPRESENTATIVE(S) McCormick and Winter T., Barron,
     Boesenecker, Brown, Camacho, Duran, Hamrick, Johnson, Lindsay,
     Lukens, Marshall, Martinez, Nguyen, Rutinel, Sirota, Smith, Soper,
     Stewart K., Titone, Velasco, McCluskie;
     also SENATOR(S) Roberts and Simpson, Amabile, Bridges, Catlin,
     Daugherty, Exum, Gonzales J., Kipp, Kirkmeyer, Kolker, Lindstedt, Liston,
     Marchman, Pelton R., Wallace, Coleman.
     CONCERNING THE COLORADO WATER CONSERVATION BOARD OPERATIONS,
          AND, IN CONNECTION THEREWITH, FUNDING PROJECTS AND MAKING
          AN APPROPRIATION.
     Be it enacted by the General Assembly of the State of Colorado:
             SECTION 1. Continuation of the satellite monitoring system -
     operation and maintenance - appropriation. (1) For the 2026-27 state
     fiscal year, $380,000 is appropriated to the department of natural resources
     for use by the division of water resources. This appropriation is from the
     Colorado water conservation board construction fund created in section
     37-60-121, C.R.S. To implement this section, the division of water
     resources may use this appropriation to install, maintain, and operate
     satellite-monitored stream gauges and lysimeters for water rights
     ________
     Capital letters or bold & italic numbers indicate new material added to existing law; dashes
     through words or numbers indicate deletions from existing law and such material is not part of
     the act.
administration and data collection pursuant to section 37-80-102 (10),
C.R.S.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 2. Continuation of the Colorado floodplain map
modernization program - appropriation. (1) For the 2026-27 state fiscal
year, $500,000 is appropriated to the department of natural resources for use
by the Colorado water conservation board. This appropriation is from the
Colorado water conservation board construction fund created in section
37-60-121, C.R.S. To implement this section, the Colorado water
conservation board may use this appropriation to continue to assist with the
preparation of revised and improved floodplain studies and maps for
communities throughout Colorado and to participate in federally sponsored
floodplain map modernization activities.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 3. Continuation of the weather modification
permitting program - appropriation. (1) For the 2026-27 state fiscal
year, $500,000 is appropriated to the department of natural resources for use
by the Colorado water conservation board. This appropriation is from the
Colorado water conservation board construction fund created in section
37-60-121, C.R.S. To implement this section, the Colorado water
conservation board may use this appropriation to assist water conservation
and conservancy districts with the development of cloud seeding programs
to provide benefits to recreation, streams, and reservoirs through snowpack
enhancement.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 4. Restoration of litigation fund cash balance -
transfer. On or before July 1, 2026, the state treasurer shall transfer
$6,000,000, or so much thereof as may be necessary to restore the balance
of the litigation fund to $6,000,000, from the unreserved cash in the
Colorado water conservation board construction fund created in section
37-60-121, C.R.S., to the litigation fund created in section 37-60-121 (2.5),
PAGE 2-HOUSE BILL 26-1338
C.R.S., to assist in addressing legal issues associated with compact
compliance or any other litigation activities as specified under section
37-60-121, C.R.S.
       SECTION 5. Continuation of the Colorado Mesonet project -
appropriation. (1) For the 2026-27 state fiscal year, $200,000 is
appropriated to the department of natural resources for use by the Colorado
water conservation board. This appropriation is from the Colorado water
conservation board construction fund created in section 37-60-121, C.R.S.
To implement this section, the Colorado water conservation board may use
this appropriation to support the Colorado Mesonet, including for the
following activities: Operation, maintenance, travel, communications, and
database and website management for temperature and precipitation
stations.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
        SECTION 6. Continuation of the water forecasting partnership
project - appropriation. (1) For the 2026-27 state fiscal year, $2,500,000
is appropriated to the department of natural resources for use by the
Colorado water conservation board. This appropriation is from the Colorado
water conservation board construction fund created in section 37-60-121,
C.R.S. To implement this section, the Colorado water conservation board
may use this appropriation to support the development of new ground and
aerial remote sensing data, to develop hydrologic modeling practices, to
provide reliable volumetric water supply forecasting, and to provide better
characterization of snowpack.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
        SECTION 7. Continuation of Colorado decision support system
operation and maintenance - appropriation. (1) For the 2026-27 state
fiscal year, $750,000 is appropriated to the department of natural resources
for use by the Colorado water conservation board. This appropriation is
from the Colorado water conservation board construction fund created in
section 37-60-121, C.R.S. To implement this section, the Colorado water
conservation board may use this appropriation for continued operation and
maintenance of the Colorado decision support system to aid in water
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resources planning and management.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 8. Restoration of fish and wildlife resources fund
balance - transfer. On July 1, 2026, the state treasurer shall transfer
$2,000,000 from the Colorado water conservation board construction fund
created in section 37-60-121, C.R.S., to the fish and wildlife resources fund
created in section 37-60-121 (6), C.R.S., to continue grant-making to assist
with the mitigation of fish and wildlife resources affected by the
construction, operation, or maintenance of water diversion, delivery, or
storage facilities.
       SECTION 9. Support for water plan action advancement -
appropriation. (1) For the 2026-27 state fiscal year, $1,350,000 is
appropriated to the department of natural resources for use by the Colorado
water conservation board. This appropriation is from the Colorado water
conservation board construction fund created in section 37-60-121, C.R.S.
To implement this section, the Colorado water conservation board may use
this appropriation to support water plan agency actions, including
promoting "One Water" strategies, expanding water reuse, developing a
measurable and robust statewide water messaging campaign, and initiating
a water innovation challenge.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 10. Continuation of the Colorado watershed
restoration program - appropriation. (1) For the 2026-27 state fiscal
year, $5,000,000 is appropriated to the department of natural resources for
use by the Colorado water conservation board. This appropriation is from
the Colorado water conservation board construction fund created in section
37-60-121, C.R.S. To implement this section, the Colorado water
conservation board may use this appropriation to support planning,
engineering, and implementation measures to address technical needs for
watershed restoration and flood mitigation projects throughout the state to
provide aquatic habitat protection; quantification of environmental flow
needs; and monitoring of efforts to support healthy stream and watershed
goals outlined in the state water plan.
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       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 11. Continuation of the upper Colorado river
commission planning - appropriation. (1) For the 2026-27 state fiscal
year, $750,000 is appropriated to the department of natural resources for use
by the Colorado water conservation board. This appropriation is from the
Colorado water conservation board construction fund created in section
37-60-121, C.R.S. To implement this section, the Colorado water
conservation board may use this appropriation to support the upper
Colorado river commission interstate planning and negotiation efforts,
including, but not limited to, the following modeling and data analyses:
Streamgaging and streamflow, runoff forecasting, consumptive use,
reservoir operations and evaporation, and drought contingency planning.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 12. Water project loan authorization - Halligan
water supply project. (1) Pursuant to section 37-60-122 (1)(b), C.R.S., the
Colorado water conservation board is authorized to make a loan in the
amount of $151,500,000 from the severance tax perpetual base fund created
in section 39-29-109 (2)(a), C.R.S., to the city of Fort Collins for the
Halligan water supply project to help the city of Fort Collins meet its
projected municipal and industrial water needs.
       (2) The money authorized in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
        (3) The Colorado water conservation board may make loans for the
project specified in subsection (1) of this section from money that is or may
become available to the severance tax perpetual base fund. The total amount
of the loans will be in the amount listed in subsection (1) of this section plus
or minus the amount, if any, as may be justified by reason of fluctuations in
construction costs or as may be justified by reason of changes in the plans
for the project due to differing or unforeseen site conditions, errors or
omissions in the plans and specifications, changes instituted by regulatory
agencies, or changes in material quantities beyond contract limits.
       SECTION 13. Water project loan authorization - Jurgens
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reservoir construction project. (1) Pursuant to section 37-60-122 (1)(b),
C.R.S., the Colorado water conservation board is authorized to make a loan
in the amount of $20,166,670 from the severance tax perpetual base fund
created in section 39-29-109 (2)(a), C.R.S., to the Lower Latham Reservoir
Company to increase the storage capacity of the Jurgens reservoir to provide
irrigation water to agricultural land in Weld county.
       (2) The money authorized in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
        (3) The Colorado water conservation board may make loans for the
project specified in subsection (1) of this section from money that is or may
become available to the severance tax perpetual base fund. The total amount
of the loans will be in the amount listed in subsection (1) of this section plus
or minus the amount, if any, as may be justified by reason of fluctuations in
construction costs or as may be justified by reason of changes in the plans
for the project due to differing or unforeseen site conditions, errors or
omissions in the plans and specifications, changes instituted by regulatory
agencies, or changes in material quantities beyond contract limits.
        SECTION 14. Grant-making for projects that assist in
implementing the state water plan - appropriation. (1) For the 2026-27
state fiscal year, $37,700,000 is appropriated to the department of natural
resources for use by the Colorado water conservation board. This
appropriation is from the water plan implementation cash fund created in
section 37-60-123.3 (1)(a), C.R.S. To implement this subsection (1), the
Colorado water conservation board may use this appropriation for
grant-making for projects that assist in the implementation of the state water
plan pursuant to section 37-60-106.3 (6), C.R.S., through the Colorado
water conservation board's application and guidelines process.
       (2) The money appropriated in subsection (1) of this section remains
available for the designated purposes until it is fully expended.
       SECTION 15. Continuation of turf replacement program -
appropriation - transfer. (1) For the 2025-26 state fiscal year, $550,000
is appropriated to the department of natural resources for use by the
Colorado water conservation board. This appropriation is from the turf
replacement fund created in section 37-60-135 (6)(a)(I), C.R.S. To
implement this subsection (1), the Colorado water conservation board may
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use this appropriation for the state's turf replacement program in accordance
with section 37-60-135, C.R.S.
       (2) The money appropriated in subsection (1) of this section that is
not expended prior to July 1, 2026, remains available to the Colorado water
conservation board for the designated purposes until June 30, 2028, for the
designated purposes.
        (3) On July 1, 2028, the state treasurer shall transfer any money
remaining in the turf replacement fund created in section 37-60-135
(6)(a)(I), C.R.S., to the Colorado water conservation board construction
fund created in section 37-60-121, C.R.S.
      SECTION 16. Severance tax task force appropriation
correction. In Session Laws of Colorado 2025, section 5 of chapter 193,
(SB 25-040), amend (1) introductory portion as follows:
        (1) For the 2025-26 state fiscal year, $198,592 is appropriated to the
department of natural resources for use by the COLORADO WATER
CONSERVATION BOARD IN COORDINATION WITH THE executive director's
office. This appropriation is from the severance tax operational PERPETUAL
BASE fund created in section 39-29-109 (2)(b)(I) (2)(a)(I.5), C.R.S. To
implement this act, the office COLORADO WATER CONSERVATION BOARD
may use this appropriation as follows:
       SECTION 17. In Colorado Revised Statutes, 37-60-122, amend
(1)(b) as follows:
       37-60-122. General assembly approval.
       (1) Money in the Colorado water conservation board construction
fund shall be expended in the following manner and under the following
circumstances:
        (b) The general assembly may authorize projects as it deems to be
to the advantage of the people of the state of Colorado and shall direct the
board to proceed with the projects in the priorities established by the general
assembly under terms approved by the general assembly. The board is
authorized to make loans without general assembly approval in amounts not
to exceed ten THIRTY million dollars. The unappropriated balance of money
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in the Colorado water conservation board construction fund and the state
severance tax perpetual base fund shall be available and continuously
appropriated for this purpose. Notwithstanding section 24-1-136 (11)(a)(I),
the board shall submit a written determination of the basis for the project
loans to the general assembly by January 15 of the year following the year
in which the loan was made.
       SECTION 18. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
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the support and maintenance of the departments of the state and state
institutions.
____________________________        ____________________________
Julie McCluskie  James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE  PRESIDENT OF
OF REPRESENTATIVES  THE SENATE
____________________________        ____________________________
Vanessa Reilly  Esther van Mourik
CHIEF CLERK OF THE HOUSE  SECRETARY OF
OF REPRESENTATIVES  THE SENATE
       APPROVED________________________________________
                          (Date and Time)
                 _________________________________________
                Jared S. Polis
                GOVERNOR OF THE STATE OF COLORADO
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