Report proposes data center fees, other options for Colorado water funding
A new report from a Colorado task force suggests imposing new fees on data centers and renewable energy companies to fund the state's $20 billion water infrastructure needs over the next 30 years. This initiative aims to create a stable, long-term funding strategy, moving away from reliance on fluctuating severance taxes. Lawmakers are expected to consider new legislation next year based on these recommendations.
A special task force established by Colorado lawmakers last year has issued a report proposing new funding mechanisms to address the state's projected $20 billion water infrastructure needs over the next three decades, particularly as climate change impacts water availability. The report suggests options such as imposing new fees on data centers and renewable energy companies, taxing sod grass, or establishing a special trust fund to ensure stable revenue.
State Senator Dylan Roberts, a Democrat from Frisco and co-sponsor of the legislation that created the task force, highlighted the necessity for a long-term water funding strategy that is not solely dependent on the volatile revenues from severance taxes on oil, gas, mining, and coal production. Jim Yahn, a Logan County commissioner and task force appointee, emphasized the immediate need to maintain existing funding levels.
The report, compiled by the Colorado Water Center at Colorado State University, indicates that a combination of these mechanisms would likely be required to generate the necessary revenue. Karen Schlatter, director of the Colorado Water Center, expressed optimism that these findings will provide lawmakers with actionable options. Senator Roberts indicated that new legislation to address these long-term funding solutions is anticipated next year.