North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1577 Latest Draft

Bill / Amended Version Filed 04/16/2025

                            25.1285.04000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Mitskog, Kempenich, Kiefert, Martinson, Nelson, Stemen
Senators Kessel, Weber
A BILL for an Act to create and enact a new section to chapter 23.1-07 and a new subsection to 
section 23.1-07-06 of the North Dakota Century Code, relating to a wastewater infrastructure 
grant program and the duties of the department of environmental quality; to authorize a Bank of 
North Dakota line of credit; to provide an appropriation; to provide for a legislative management 
study; and to declare an emergency.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 23.1-07 of the North Dakota Century Code is created 
and enacted as follows:
Wastewater infrastructure grant program.
1.The department shall award wastewater infrastructure grants to eligible entities 
identified in subsection   2 to upgrade, replace, or construct infrastructure for a  
wastewater collection system, wastewater disposal system, or wastewater treatment 
plant.
2.Cities, counties, townships, water resource districts, recreation service districts, and 
water districts operating wastewater systems in the state may receive a grant under 
this section for an eligible project, subject to the availability of funds.
3.In awarding wastewater infrastructure grants to eligible entities, the department shall 
prioritize eligible entities that:
a.Have experienced a reduction in previously approved federal funds or federal 
assistance related to wastewater infrastructure projects; and
b.Are prepared to begin the wastewater infrastructure project upon receipt of the 
grants.
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REENGROSSED HOUSE BILL NO. 1577
SECOND ENGROSSMENT
with Senate Amendments
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4.An eligible wastewater system must be in compliance with current wastewater 
regulations unless the project will return the system to compliance. Eligible projects 
may not include operations and maintenance costs.
5.The department may not award a grant in excess of sixty percent of the total cost of a 
project and shall ensure no community receives a grant for more than one project per 
biennium.
SECTION 2. A new subsection to section 23.1-07-06 of the North Dakota Century Code is 
created and enacted as follows:
Administer the  wastewater infrastructure grant program. 
SECTION 3. LEGISLATIVE MANAGEMENT STUDY - WASTEWATER PROJECT FUND. 
During the 2025-26 interim, the legislative management shall consider studying the feasibility 
and desirability of establishing a wastewater project fund to provide grants for upgrading, 
constructing, or replacing wastewater infrastructure. The study must include input from cities, 
counties, townships, and water resource districts. The legislative management shall report its 
findings and recommendations, together with any legislation required to implement the 
recommendations, to the seventieth legislative assembly.
SECTION 4. APPROPRIATION - DEPARTMENT OF ENVIRONMENTAL QUALITY - 
WASTEWATER INFRASTRUCTURE GRANTS - BANK OF NORTH DAKOTA LINE OF 
CREDIT - ONE-TIME FUNDING. 
1.The department of environmental quality may borrow up to $9,700,000 through a line 
of credit from the Bank of North Dakota, which is appropriated to the department of 
environmental quality for the purpose of providing wastewater infrastructure grants 
during the biennium beginning July 1, 2025, and ending June 30, 2027. The interest 
rate associated with the line of credit may not exceed the prevailing interest rate 
charged to North Dakota governmental entities. The department of environmental 
quality shall request a deficiency appropriation from the seventieth legislative 
assembly to repay the line of credit.
2.Of the total appropriated in this section, the department of environmental quality shall 
provide grants of $7,800,000 and $1,900,000 to entities with eligible wastewater 
infrastructure projects under section 1 of this Act. If an entity awarded funding under 
this section receives federal funding for the same wastewater infrastructure project, 
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the entity shall remit the federal funding to the department of environmental quality for 
the repayment of the line of credit. 
3.The appropriation in this section is considered a one-time funding item.
SECTION 5. EMERGENCY. This Act is declared to be an emergency measure.
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