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1 HOUSE BILL NO. 11
2 INTRODUCED BY J. FITZPATRICK
3 BY REQUEST OF THE OFFICE OF BUDGET AND PROGRAM PLANNING
4
5 A BILL FOR AN ACT ENTITLED: “AN ACT APPROPRIATING MONEY FROM THE MONTANA COAL
6 ENDOWMENT SPECIAL REVENUE ACCOUNT TO THE DEPARTMENT OF COMMERCE FOR
7 INFRASTRUCTURE PROJECTS, EMERGENCY GRANTS FOR FINANCIAL ASSISTANCE TO LOCAL
8 GOVERNMENTS, AND INFRASTRUCTURE PLANNING GRANTS; AUTHORIZING GRANTS FROM THE
9 MONTANA COAL ENDOWMENT SPECIAL REVENUE ACCOUNT; PLACING CONDITIONS ON GRANTS
10 AND FUNDS; APPROPRIATING MONEY FROM THE MONTANA COAL ENDOWMENT REGIONAL WATER
11 SYSTEM SPECIAL REVENUE ACCOUNT TO THE DEPARTMENT OF NATURAL RESOURCES AND
12 CONSERVATION FOR FINANCIAL ASSISTANCE TO REGIONAL WATER AUTHORITIES FOR REGIONAL
13 WATER SYSTEM PROJECTS; PROVIDING APPROPRIATIONS; AND PROVIDING AN EFFECTIVE DATE.”
14
15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
16
17 NEW SECTION. Section 1. (1)
18 There is appropriated $20,287,391 from the Montana coal endowment special revenue account established in
19 17-5-703(3)(a) to the department of commerce for the biennium beginning July 1, 2025, to finance Montana
20 coal endowment program grants authorized by subsection (2).
21 (2) The following applicants and projects are authorized for grants and listed in the order of their
22 priority:
23 Infrastructure Applicant (project type) Grant Amount
24 1. Hysham, Town of (water) $750,000
25 2. Roundup, City of (wastewater) $750,000
26 3. Twin Bridges, Town of (water) $750,000
27 4. Harrison Water and Sewer District (wastewater) $750,000
28 5. Wolf Point, City of (wastewater) $625,000 - 2025
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1 6. Dutton, Town of (water) $750,000
2 7. Alder County Water and Sewer District (wastewater) $750,000
3 8. Shelby, City of (wastewater) $375,000
4 9. Red Lodge, City of (wastewater) $500,000
5 10. White Sulphur Springs, City of (water) $625,000
6 11. South Wind Crosswinds Community $750,000
7 Water and Sewer District (water and wastewater)
8 12. Circle, Town of (water) $750,000
9 13. Arlee/Lake County Water and Sewer (wastewater) $327,500
10 14. 13. Deer Lodge, City of (wastewater) $439,000
11 15. 14. Willow Creek Sewer District (wastewater) $750,000
12 16. 15. Hinsdale County Water and Sewer (water) $500,000
13 17. 16. Fairfield, Town of (water) $500,000
14 18. 17. Darby, Town of (wastewater) $750,000
15 19. 18. Joliet, Town of (wastewater) $625,000
16 20. 19. Ronan, City of (wastewater) $750,000
17 21. 20. Bigfork County Water and Sewer (water) $500,000
18 22. 21. Richey, Town of (water) $500,000
19 23. 22. Malta, City of (water) $500,000
20 24. 23. Big Timber, City of (water) $500,000
21 25. 24. St. Ignatius, Town of (wastewater) $750,000
22 26. 25. Ennis, Town of (water) $500,000
23 27. 26. Pinesdale, Town of (water) $750,000
24 28. 27. Basin County Water and/or Sewer (water) $500,000
25 29. 28. Martinsdale Water and Sewer District (water) $750,000
26 30. 29. Sun Prairie Village County Water and $500,000
27 Sewer District (water)
28 31. 30. Judith Basin County for Geyser Water and $520,891 - 2025
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1 Sewer District (wastewater)
2 32. 31. Whitehall, Town of (water) $750,000
3 33. 32. Libby, City of (wastewater) $500,000
4 (3) Funding for the projects in subsection (2) will be provided only as long as there are sufficient
5 funds available from the amount that was deposited into the Montana coal endowment special revenue account
6 during the biennium beginning July 1, 2025. Funding for the projects will be made available in the order that the
7 grant recipients satisfy the conditions described in [section 3(1)].
8 (4) There is appropriated $3,544,750 from the Montana coal endowment special revenue account
9 established in 17-5-703(3)(a) to the department of commerce for the biennium beginning July 1, 2025, to
10 finance Montana coal endowment program grants authorized by subsection (5) as projects meet the conditions
11 provided in [section 3(1)].
12 (5) The following applicants and projects are authorized for grants and listed in the order of their
13 priority:
14 Bridge Applicant Grant Amount
15 1. Lewis and Clark County $750,000
16 2. Madison County $750,000
17 3. Petroleum County $627,900
18 4. 3. Park County $612,750
19 5. 4. Powder River County $363,600
20 6. 5. Wibaux County $440,500
21 6. MISSOULA C
22 STYLER CREEK WBRIDGE
23 (6) Funding for projects 1 through 6 in subsection (5) will be provided only as long as there are
24 sufficient funds available from the amount that was deposited into the Montana coal endowment special
25 revenue account during the biennium beginning July 1, 2025. Funding for the projects will be made available in
26 the order that the grant recipients satisfy the conditions described in [section 3(1)].
27 (7) If sufficient funds are available, this section constitutes a valid obligation of funds to the grant
28 recipients listed in subsections (2) and (5) for the purpose of encumbering the funds in the Montana coal - 2025
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1 endowment special revenue account for the biennium beginning July 1, 2025, pursuant to 17-7-302. However,
2 a grant recipient’s entitlement to receive funds is dependent on the grant recipient’s compliance with the
3 conditions described in [section 3(1)] and on the availability of funds.
4 (8) Any project listed in subsections (2) and (5) that has not completed the conditions described in
5 [section 3(1)] by September 1, 2026, must be reviewed by the next regular legislature to determine if the
6 authorized grant should be withdrawn.
7 (9) The funds appropriated in this section must be used by the department to make grants to the
8 government entities listed in subsections (2) and (5) for the described purposes and in amounts not to exceed
9 the amounts set out in subsections (2) and (5). The grants authorized in this section are subject to the
10 conditions set forth in [section 3(1)] and described in the Montana coal endowment program 2027 biennium
11 project funding recommendations to the 69th legislature. The legislature, pursuant to 90-6-710, authorizes the
12 grants for the projects listed in subsections (2) and (5). The department shall commit funds to projects listed in
13 subsections (2) and (5), up to the amounts authorized except as provided in subsection (3), based on the
14 manner of disbursement set forth in [section 3] until the funds deposited into the Montana coal endowment
15 special revenue account during the biennium beginning July 1, 2025, are fully expended.
16 (10) If grant recipients do not complete all of the conditions described in [section 3(1)] by September
17 30, 2028, any obligation to the grant recipient will cease.
18
19 NEW SECTION. Section 2. (1) The
20 legislature, pursuant to 90-6-701, authorizes grants for the projects identified in [section 1(2) and (5)], the
21 emergency infrastructure grants in [section 5], and the infrastructure planning grants in [section 6].
22 (2) The authorization of these grants completes a biennial appropriation from the Montana coal
23 endowment special revenue account established in 17-5-703(3)(a).
24 (3) Grants to entities from prior bienniums are reauthorized for completion of contract work.
25
26 NEW SECTION. Section 3. (1) The disbursement of
27 grant funds for the projects specified in [section 1(2) and (5)] is subject to completion of the following conditions:
28 (a) The grant recipient shall document that other matching funds required for completion of the - 2025
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1 project are firmly committed.
2 (b) The grant recipient must have a project management plan that is approved by the department
3 of commerce.
4 (c) The grant recipient must be in compliance with the auditing and reporting requirements
5 provided for in 2-7-503 and shall use a financial accounting system that the department of commerce can
6 reasonably ensure conforms to generally accepted accounting principles. Tribal governments shall comply with
7 auditing and reporting requirements provided for in 2 CFR 200.
8 (d) The grant recipient shall satisfactorily comply with all conditions described in the application’s
9 project summaries section of the Montana coal endowment program 2027 biennium project funding
10 recommendations to the 69th legislature.
11 (e) The grant recipient shall satisfy other specific requirements considered necessary by the
12 department of commerce to accomplish the purpose of the project as evidenced by the application to the
13 department.
14 (f) Pursuant to 90-6-710(6), the grant recipient shall comply with all Montana coal endowment
15 program requirements as determined by the department of commerce in order to qualify for reimbursement of
16 project expenses.
17 (g) The grant recipient shall execute a grant agreement with the department of commerce.
18 (2) With the exception of bridges, all projects must adhere to the design standards required by the
19 department of environmental quality. Recipients of Montana coal endowment program funds that are not
20 subject to the department of environmental quality design standards must adhere to generally accepted
21 industry standards, such as Recommended Standards for Wastewater Facilities or Recommended Standards
22 for Water Works, published by the Great Lakes-Upper Mississippi River Board of State and Provincial Public
23 Health and Environmental Managers, latest edition.
24 (3) Recipients of Montana coal endowment program funds are subject to the requirements of the
25 department of commerce as described in the most recent edition of the Montana Coal Endowment Program
26 Project Administration Manual adopted by the department through the administrative rulemaking process.
27
28 NEW SECTION. Section 4. (1) The department of - 2025
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1 commerce shall disburse grant funds on a reimbursement basis as grant recipients incur eligible project
2 expenses.
3 (2) If actual project expenses are lower than the projected expense of the project, the department
4 may, at its discretion:
5 (a) reduce the amount of grant funds to be provided to grant recipients in proportion to all other
6 project funding sources; or
7 (b) reduce the amount of grant funds to be provided so that the grant recipient’s projected average
8 residential user rates do not become lower than their target rate as determined by the department.
9 (3) If the grant recipient obtains a greater amount of grant funds than was contained in the
10 Montana coal endowment program application, the department may reduce the amount of the Montana coal
11 endowment program grant funds to be provided to ensure that the grant recipient continues to meet the
12 threshold requirements contained in the program guidelines for receiving the larger Montana coal endowment
13 program grant.
14
15 NEW SECTION. Section 5.
16
17 revenue account established in 17-5-703(3)(a) to the department of commerce for the biennium beginning July
18 1, 2025, for the purpose of providing local governments, as defined in 90-6-701, with emergency grants for
19 infrastructure projects, as defined in 90-6-701.
20
21 NEW SECTION. Section 6.
22 There is appropriated $1,500,000 from the Montana coal
23 endowment special revenue account established in 17-5-703(3)(a) to the department of commerce for the
24 biennium beginning July 1, 2025, for the purpose of providing local governments, as defined in 90-6-701, with
25 infrastructure planning grants for infrastructure projects, as defined in 90-6-701.
26
27 NEW SECTION. Section 7.
28 (1) There is appropriated $10 million from the Montana coal endowment regional - 2025
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1 water system special revenue account established in 17-5-703(3)(b) to the department of natural resources and
2 conservation for the biennium beginning July 1, 2025, to finance the state’s share of regional water system
3 projects authorized in subsection (2) and as set forth in 90-6-715.
4 (2) The state’s four regional water authorities are authorized to receive the funds appropriated in
5 subsection (1) as long as there are sufficient funds available from the amount that was deposited into the
6 Montana coal endowment regional water system special revenue account during the biennium beginning July 1,
7 2025.
8 (3) A regional water authority’s receipt of funds is dependent on the authority’s compliance with the
9 conditions described in [section 9(1)].
10 (4) This section constitutes a valid obligation of funds to the regional water authorities identified in
11 subsection (2) for the purpose of encumbering the Montana coal endowment regional water system special
12 revenue account funds received during the biennium beginning July 1, 2025, under 17-7-302.
13
14 NEW SECTION. Section 8.
15 pursuant to 90-6-715, authorizes funds for the regional water authorities identified in [section 7(2)].
16 (2) The authorization of these funds completes an appropriation from the Montana coal
17 endowment regional water system special revenue account established in 17-5-703(3)(b).
18
19 NEW SECTION. Section 9. (1) The disbursement
20 of funds under [sections 7 and 8] is subject to completion of the following conditions:
21 (a) The regional water authority shall execute an agreement with the department of natural
22 resources and conservation.
23 (b) The regional water authority must have a project management plan that is approved by the
24 department.
25 (c) The regional water authority shall use a financial accounting system that the department can
26 reasonably ensure conforms to generally accepted accounting principles.
27 (d) The regional water authority shall provide the department with a detailed preliminary
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1 (2) The department shall disburse funds on a reimbursement basis as the regional water authority
2 incurs eligible project expenses.
3
4 NEW SECTION. Section 10.
5 copy of [this act] to each federally recognized tribal government in Montana.
6
7 NEW SECTION. Section 11. [This act] is effective July 1, 2025.
8 - END -