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Passed HouseHB26-12052026 Regular Session

More Trails, Less Wildfire: Colorado's Plan to Fast-Track Federal Forest Projects

Sponsors: Elizabeth Velasco, Tisha Mauro, Lisa Cutter, Mark Baisley·Agriculture, Water & Natural Resources·

Editorial photograph for HB26-1205

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The Bottom Line

The federal government recently gave states more flexibility to manage federal lands for wildfire prevention and outdoor recreation. This bill updates Colorado law so our state foresters can actually use that new power to cut red tape, build trails, and clear out dead timber faster.

What This Bill Actually Does

If you look at a map of Colorado, roughly 36% of the state is owned by the federal government. Historically, if a forest needed thinning to prevent a catastrophic wildfire, or a watershed needed protection, we had to wait for federal agencies to get around to it. Enter the Good Neighbor Authority (GNA). This is a federal program that essentially allows state forestry crews to step in and do the work on federal land. It cuts through bureaucratic layers, allowing the Colorado State Forest Service to pool resources with the feds to get essential forest management projects done faster.

Recently, Congress passed the EXPLORE Act (Expanding Public Lands Outdoor Recreation Experiences Act), which massively upgraded this program. Previously, GNA agreements were largely restricted to partnering with the United States Forest Service or the Bureau of Land Management, and the work was strictly focused on forest health and fire mitigation. The new federal law says states can now partner with any agency under the U.S. Department of the Interior or Agriculture. Even better, it officially adds outdoor recreation opportunities to the list of approved projects.

But there is a catch: state law has to match federal law for our agencies to use these new powers. That is exactly what House Bill 26-1205 does. It amends Colorado Revised Statutes 23-31-311 and 23-31-313 to explicitly allow the Colorado State Forest Service to partner with this broader list of federal agencies. It also specifically mandates that the state conduct demonstration projects that improve forest health, resilience, or outdoor recreation opportunities. By making these statutory tweaks, Colorado can leverage the expanded federal rules to manage forests across jurisdictional boundaries and reinvest project revenues into maintaining the state's natural infrastructure.

What It Means for You

If you live near the Wildland-Urban Interface (WUI), love spending your weekends on federal public lands, or just appreciate breathing smoke-free air in August, this bill directly impacts your quality of life. Right now, getting a new trail approved or clearing a dangerous patch of dead timber on federal land can take years of administrative back-and-forth. By expanding Colorado's Good Neighbor Authority, our own state crews can jump in and handle the work on land managed by the National Park Service or U.S. Fish and Wildlife, not just the National Forest system.

The biggest everyday change for residents is the addition of outdoor recreation to the state's forestry mandate. Historically, when state crews went onto federal land under these agreements, they were strictly pulling out dead trees and reducing fire fuels. Now, the state can use these exact same agreements to fix washed-out trails, build new trailheads, and improve public access while they are already out there doing the heavy lifting for forest health. It is a common-sense approach that prevents crews from having to mobilize twice to the same remote location.

Here is what you should do next:

  • Check your local fire risk: If you live near federal land that desperately needs fire mitigation, this bill makes it easier for state foresters to prioritize that area.
  • Contact your representative: Let them know if you support combining wildfire mitigation with recreational improvements in your district.
  • Follow the demonstration projects: The bill requires the state to conduct specific demonstration projects using this new authority. Keep an eye out for where these pilot programs launch in 2026 and 2027.

What It Means for Your Business

If you operate in the forestry, heavy equipment, civil construction, or outdoor recreation industries, you need to have this bill on your radar right now. The Colorado State Forest Service does not do all of this mitigation and construction work in-house; they contract a massive amount of it out to private sector partners. The text of HB26-1205 explicitly directs the state forest service to "contract with one or more entities" to conduct these projects and, notably, to "supply forest products to Colorado businesses."

The expansion into recreation infrastructure opens up a completely new pipeline of state-managed government contracts. We are no longer just talking about logging, mastication, and brush clearing; we are talking about trail building, grading, parking lot construction, and facility maintenance on federal lands, all managed through faster state procurement processes rather than sluggish federal ones. Because the bill includes a Safety Clause, it goes into effect the moment the governor signs it. That means the state can start issuing these expanded Requests for Proposals (RFPs) almost immediately.

Here are the action items your business should take THIS WEEK:

  • Update your vendor profiles: Ensure your business is registered and up-to-date in ColoradoVSS (the state's vendor system) as well as federal SAM.gov databases.
  • Review your capabilities: If you are a traditional mitigation contractor, consider partnering with recreation and trail-building firms to bid jointly on these newly combined forest health/recreation contracts.
  • Watch the state forestry board: Monitor the Colorado State Forest Service's upcoming contract announcements, specifically looking for projects labeled under the expanded Good Neighbor Authority.

Follow the Money

While the official legislative fiscal note has not been published yet (the bill was just introduced on February 12), the financial mechanics of this legislation are incredibly efficient for taxpayers. The true beauty of the Good Neighbor Authority is its revenue-sharing model. When the state conducts a forest thinning project on federal land, it can sell the extracted timber to local mills or biomass facilities. The revenue generated from those sales is then kept by the state and reinvested directly back into future forest management projects.

Under these expanded rules, that reinvestment becomes much more flexible. Money generated from a timber project on one piece of federal land can now potentially be used to fund a recreation infrastructure project on another, crossing traditional bureaucratic boundaries. Furthermore, this bill leverages federal dollars—by allowing the state to access funds allocated under the federal EXPLORE Act—meaning Colorado can improve its trails and reduce its wildfire risk without requiring a massive new appropriation from the state's General Fund. It is a rare win-win for both the state budget and local communities.

Where This Bill Stands

House Bill 26-1205 was introduced in the House on February 12, 2026, by Representatives Elizabeth Velasco and Tisha Mauro. It is currently assigned to the House Agriculture, Water & Natural Resources Committee, which is the standard first stop for public lands legislation.

This bill has a very smooth trajectory ahead. It is largely a nonpartisan housekeeping measure designed to sync state law with federal advancements—a move that is universally popular in a state that relies heavily on its outdoor economy and constantly battles wildfire threats. Crucially, the bill includes a Safety Clause, meaning it skips the usual 90-day waiting period and will become law the second the Governor signs it. Keep an eye out for its first committee hearing in late February or early March, where it is expected to pass with broad bipartisan support.

The Opportunity Signal

Where this bill creates practical upside for operators: the opening, the key constraints, and the move to make while the window is still favorable.

  • New Outdoor Recreation Infrastructure Development

    The bill explicitly adds 'outdoor recreation opportunities' as an approved project type under the expanded Good Neighbor Authority, creating a significant new pipeline of state-managed contracts. Businesses specializing in trail building, civil construction (e.g., parking lots, trailheads), and facility maintenance can now bid on projects to enhance public access and recreation infrastructure on federal lands, managed through state procurement processes rather than slower federal ones. This allows for combining forest health work with recreational improvements, streamlining operations and increasing project value. The primary risk is the initial ramp-up, as the Colorado State Forest Service (CSFS) adapts to managing this new project category and develops specific RFPs for recreational components.

    • Explicit mandate for CSFS to undertake outdoor recreation projects (e.g., trails, trailheads, access points) on federal lands.
    • State procurement processes will manage these contracts, potentially accelerating project starts post-bill signing.
    • Opportunities for firms specializing in civil construction, trail design, and recreational facility development.
    • Projects leverage federal funds via the EXPLORE Act and state-reinvested timber revenues.

    Next move: Identify potential partners (e.g., forestry firms, trail designers) to form joint ventures or subcontracting relationships, then reach out to the Colorado State Forest Service to understand their upcoming demonstration projects and procurement preferences for recreation infrastructure.

  • Enhanced Wildfire Mitigation & Forest Health Contracts

    Colorado businesses specializing in forestry services, logging, mastication, and brush clearing will see an increased volume of state-managed contracts for wildfire prevention and forest health. The bill expands the Colorado State Forest Service's (CSFS) authority to work on more federal lands under the 'Good Neighbor Authority,' including those managed by various U.S. Department of Interior and Agriculture agencies, beyond just the Forest Service and BLM. This means faster state procurement processes compared to direct federal contracts, offering more immediate opportunities for existing contractors to expand their project pipeline. A key dependency is the CSFS's prioritization of these projects and their internal capacity to manage the expanded scope across different federal land types.

    • State-managed contracts for forest thinning and fire fuel reduction on expanded federal lands.
    • Broader federal agency partners (e.g., National Park Service, U.S. Fish & Wildlife) for CSFS projects.
    • State procurement is typically faster than federal for GNA agreements, accelerating project awards.
    • Revenues from timber sales are reinvested by the state into these projects, ensuring sustained funding.

    Next move: Ensure your business is fully registered and updated in ColoradoVSS, the state's vendor system, and actively monitor the Colorado State Forest Service's website for upcoming Requests for Proposals (RFPs) labeled under the expanded Good Neighbor Authority.

  • Increased Supply of Forest Products for Colorado Businesses

    The expansion of Good Neighbor Authority projects across more federal lands means a greater volume of timber and biomass will be extracted from state-managed forest health initiatives. The bill explicitly directs the Colorado State Forest Service to 'supply forest products to Colorado businesses,' creating a more consistent and potentially larger local supply chain for mills, biomass facilities, and other wood product manufacturers. This could lead to more stable raw material sourcing and potentially reduced transportation costs for in-state processors. However, businesses must track project locations and timber types to ensure they align with their processing capabilities and market demands.

    • More timber and biomass available from CSFS-managed projects on an expanded range of federal lands.
    • State mandate to supply these forest products to Colorado businesses, favoring local processing.
    • Potential for reduced logistics costs and more consistent raw material sourcing for in-state processors.
    • Revenue generated from sales is reinvested into further state forest management and recreation projects.

    Next move: Contact the Colorado State Forest Service's timber sales division or relevant regional offices to express interest in purchasing forest products from upcoming Good Neighbor Authority projects and inquire about the types and volumes of material expected.

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Frequently Asked Questions

What does HB26-1205 do?
This bill updates Colorado law to match recent federal changes regarding 'good neighbor' agreements for managing public lands. It allows the Colorado State Forest Service to partner more easily with various federal agencies on projects that improve forest health, reduce wildfire risks, and build outdoor recreation infrastructure. Essentially, it cuts red tape so the state can collaborate with the federal government to better manage local forests and parks.
What is the current status of HB26-1205?
HB26-1205 is currently "Passed House" in the 2026 Regular Session. It was introduced by Elizabeth Velasco and is assigned to the Agriculture, Water & Natural Resources committee.
Who sponsors HB26-1205?
HB26-1205 is sponsored by Elizabeth Velasco, Tisha Mauro, Lisa Cutter, Mark Baisley.
How does HB26-1205 affect Colorado businesses?
The bill explicitly adds 'outdoor recreation opportunities' as an approved project type under the expanded Good Neighbor Authority, creating a significant new pipeline of state-managed contracts. Businesses specializing in trail building, civil construction (e.g., parking lots, trailheads), and facility maintenance can now bid on projects to enhance public access and recreation infrastructure on federal lands, managed through state procurement processes rather than slower federal ones. This allows for combining forest health work with recreational improvements, streamlining operations and increasing project value. The primary risk is the initial ramp-up, as the Colorado State Forest Service (CSFS) adapts to managing this new project category and develops specific RFPs for recreational components. Colorado businesses specializing in forestry services, logging, mastication, and brush clearing will see an increased volume of state-managed contracts for wildfire prevention and forest health. The bill expands the Colorado State Forest Service's (CSFS) authority to work on more federal lands under the 'Good Neighbor Authority,' including those managed by various U.S. Department of Interior and Agriculture agencies, beyond just the Forest Service and BLM. This means faster state procurement processes compared to direct federal contracts, offering more immediate opportunities for existing contractors to expand their project pipeline. A key dependency is the CSFS's prioritization of these projects and their internal capacity to manage the expanded scope across different federal land types. The expansion of Good Neighbor Authority projects across more federal lands means a greater volume of timber and biomass will be extracted from state-managed forest health initiatives. The bill explicitly directs the Colorado State Forest Service to 'supply forest products to Colorado businesses,' creating a more consistent and potentially larger local supply chain for mills, biomass facilities, and other wood product manufacturers. This could lead to more stable raw material sourcing and potentially reduced transportation costs for in-state processors. However, businesses must track project locations and timber types to ensure they align with their processing capabilities and market demands.
What committee is reviewing HB26-1205?
HB26-1205 is assigned to the Agriculture, Water & Natural Resources committee in the Colorado House.
When was HB26-1205 last updated?
The last action on HB26-1205 was "House Third Reading Passed - No Amendments" on 03/05/2026.

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