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Severance Tax and Water Funding Task Force Begins Work This Fall

Severance Tax and Water Funding Task Force Begins Work This Fall

by North Forty News Staff | NorthFortyNews.com


Northern Colorado representation will help guide future water and energy impact funding amid declining revenues

FORT COLLINS – A new state task force is set to convene this fall to address how Colorado will fund critical water projects and energy impact grants as severance tax revenues continue to decline. Created by SB25-040, the Future of Severance Taxes and Water Funding Task Force will study funding options and deliver recommendations for maintaining support to communities statewide, including Northern Colorado.

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“State funding for water projects and conservation is critical for Colorado communities working to adapt to a hotter and dryer West,” said Dan Gibbs, Executive Director of the Department of Natural Resources (DNR). “This task force will allow our water community to take an intentional approach to sustaining funding levels into the future.”

Local and Regional Representation

Among the appointees is Karen Schlatter, Director of the Colorado Water Center at Colorado State University, who will serve as the independent third party guiding the study. Schlatter and her CSU-based team will help analyze revenue options and develop recommendations.

In addition, Jim Yahn, Logan County Commissioner, was appointed by the Governor to represent counties impacted by oil and gas operations. Yahn’s involvement underscores the link between Northern Colorado’s energy sector and water resource planning.

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Broad Stakeholder Involvement

The 11-member task force includes representatives from state agencies, agriculture, local government, environmental advocacy groups, and the oil and gas industry. Appointees include:

  • Carly Jacobs, CFO, Department of Natural Resources
  • Lauren Ris, Director, Colorado Water Conservation Board
  • Robert Sakata, Agriculture Water Policy Advisor, Colorado Department of Agriculture
  • Eric Bergman, Director, Division of Local Government, Department of Local Affairs
  • Brian Jackson, Environmental Defense Fund
  • Doug Dennison, Ecopoint Incorporated
  • Steve Wolff, Southwestern Water Conservation District
  • Shawn Bolton, Agriculture Representative
  • Elyse Ackerman Casselberry, City Manager of Delta

Nate Pearson, Assistant Director for Water at DNR, will serve as the project manager.

Looking Ahead

The study will explore alternatives to reduce reliance on severance taxes for the state’s general fund and identify replacement funding sources for water projects. A draft report is due to DNR and the task force by January 15, 2026, with recommendations to follow.

For more about the legislation, visit the Colorado General Assembly.

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