Colorado Considers New Taxes and Trust Fund to Secure $20 Billion for Water Infrastructure
Colorado is exploring new funding mechanisms to raise $20 billion over the next 30 years to secure its water supply. A task force report suggests imposing fees on data centers and renewable energy companies, taxing sod, and creating a special trust fund. The state currently relies on severance taxes from oil, gas, and mining, which are volatile and often redirected to cover budget shortfalls. The report, produced by the Colorado Water Center, emphasizes the need for stable funding sources that cannot be diverted for other purposes. The task force aims to find permanent solutions to fund water infrastructure projects, including pipeline repairs, water-saving initiatives, and new water supply acquisitions.