HB1338 is the annual Colorado Water Conservation Board operations and projects bill for fiscal year 2026-27. It continues funding for a series of water-related state programs and initiatives, including satellite-monitored stream gauges and lysimeters, floodplain map modernization, weather modification permitting and cloud seeding support, the Colorado Mesonet, water forecasting and remote sensing work, the Colorado decision support system, watershed restoration, Upper Colorado River Commission planning, and state water plan implementation grants. The bill also includes a transfer to restore the litigation fund balance for compact compliance and other water-related legal work.
In addition to program appropriations, the bill authorizes two major water project loans: up to $151.5 million for the Halligan water supply project for the City of Fort Collins and up to about $20.17 million for the Jurgens reservoir construction project in Weld County. It also continues the turf replacement program, makes a correction to a prior severance tax task force appropriation, and amends the Colorado Water Conservation Board’s loan authority so it may approve loans up to $30 million without separate General Assembly approval. Most appropriations remain available until fully expended.
Impact
The bill primarily affects statutes governing the Colorado Water Conservation Board, the Colorado water conservation board construction fund, the water plan implementation cash fund, the turf replacement fund, the fish and wildlife resources fund, and the severance tax perpetual base fund. It directs transfers and appropriations from those funds to specific water management, planning, mitigation, and infrastructure purposes, and it changes the board’s loan-approval threshold from $10 million to $30 million. The bill also reinforces ongoing state involvement in floodplain mapping, stream monitoring, water forecasting, watershed restoration, and water supply development.
Sentiment
The bill appears to have broad bipartisan support and was advanced overwhelmingly at each stage, including unanimous or near-unanimous committee votes and strong floor votes in both chambers. The Senate Appropriations Committee recommended it for the consent calendar, which suggests it was viewed as routine and largely noncontroversial. The voting history indicates general agreement on the need to continue core water programs and fund major water infrastructure and planning efforts.
Contention
The main points of potential contention are the size and allocation of funding, especially the large loan authorization for the Halligan project, the loan for the Jurgens reservoir project, and the increase in the board’s independent loan authority to $30 million. Those provisions could draw scrutiny from lawmakers concerned about debt exposure, fund balances, or prioritization among water projects. The weather modification/cloud seeding program and the transfer from the construction fund to restore the litigation fund may also be debated by those who question the use of state water funds for those purposes, though the recorded votes show little visible opposition.