Aurora Water urges local approval requirement for data-center incentives in SB25-280; committee backs amendments

Aurora Water asked the legislative committee to support amendments to Senate Bill 25-280 (Colorado Data Center Development and Incentive Program Act) to require that data-center applicants include a water-resource availability assessment and a water management plan that must be acknowledged or approved by the local water system provider.

Kathy, speaking for Aurora Water, told the committee that the bill’s introduced version required an infrastructure assessment that included water-resource availability and a water-resource management plan, but that language had been removed in the bill’s amended form. “There is not a similar requirement for water providers and only a loose requirement to implement water stewardship measures,” Kathy said. She told members the amended bill requires only general water-stewardship language without quantifiable standards, and it does not require local water-provider signoff.

Kathy outlined the city’s requested amendments: reinstate the infrastructure assessment requirement, require a water-resource availability and water-management plan as part of the certification application, and require that water system providers be part of the certification process and provide acknowledgment or approval of the water-management plan and stewardship strategies. She said those changes would help ensure sustainable water resources for all users in shared watersheds, and noted that data centers can also trigger wastewater-discharge permitting.

Committee members asked clarifying questions about how the amendment would fit within the bill’s energy and tax-incentive focus. Kathy and staff clarified the city is not taking a position on the bill’s tax incentives or energy provisions but is asking for a narrow water-related amendment. Council Member Lawson and Council Member Hancock each voiced support for the city’s amend position; Council Member Lawson said she also supports the amend position, and Council Member Hancock said, “I support this position to amend.” Mayor Kauffman indicated his support as well.

Aurora staff said they would continue to work with state lobbyists to seek the amendments and that the water department maintains its own state lobbying contract to pursue narrow water-policy amendments. Kathy also warned that data centers could stress water resources if providers are not connected to operators during the planning and certification process.

The committee did not take a formal legislative vote; members present expressed verbal support for the city’s request that state negotiators add the water-provider approval and management-plan language back into SB25-280.