The Future of Severance Taxes and Water Funding Task Force, established by SB25-040, will start meeting this fall to study severance taxes and water funding in Colorado. The group aims to develop recommendations for sustaining funding for water needs and energy impact grants as severance tax revenue declines.
Dan Gibbs, Executive Director of the Department of Natural Resources, stated: “State funding for water projects and conservation is critical for Colorado communities working to adapt to a hotter and dryer West. This task force will allow our water community to take an intentional approach to sustaining funding levels into the future. We appreciate the bill’s sponsors and thank the task force members for their willingness to dedicate their time and expertise to this effort.”
Task force appointments include representatives from state agencies, environmental organizations, agriculture, oil and gas industries, local government officials, and municipal leaders. Carly Jacobs (Department of Natural Resources CFO), Lauren Ris (Director of Colorado Water Conservation Board), Robert Sakata (Agriculture Water Policy Advisor at the Colorado Department of Agriculture), Eric Bergman (Director of Division of Local Government at Department of Local Affairs), Brian Jackson (Environmental Defense Fund), Doug Dennison (Ecopoint Incorporated), Steve Wolff (Southwestern Water Conservation District), Shawn Bolton (agriculture representative), Jim Yahn (Logan County Commissioner), Elyse Ackerman Casselberry (City Manager Delta) are among those appointed by various state officials.
Nate Pearson from the Department of Natural Resources will manage the project. Karen Schlatter, Director of the Colorado Water Center at Colorado State University’s Office of Engagement and Extension, has been retained as a third-party expert to assist with conducting the study.
The legislation directs that the study should focus on ways to reduce or replace transfers from severance tax revenues to the general fund. The third party must submit a draft report describing findings and recommendations by January 15, 2026, which will be reviewed by both the Department of Natural Resources and the Task Force.
