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HOUSE BILL No. 2462
AN ACT concerning water; requiring the secretary of health and environment to adopt
rules and regulations by July 1, 2028, allowing for the direct and indirect potable
reuse of treated wastewater; requiring such rules and regulations to prioritize
prescriptive treatment processes that make the reuse of treated wastewater affordable
or otherwise achievable; relating to the water technical assistance fund and the water
projects grant fund; extending the current expiration date of such funds; transferring
moneys from the state general fund to the state water plan fund; requiring the Kansas
water office to transfer appropriations for the water technical assistance fund and the
water projects grant fund; establishing additional criteria for the operation of such
funds; prohibiting grants for issues related to water rights impaired by another water
right; prioritizing applications based on public health, resource management,
population trends, funding sources, regional cooperation and weather resiliency;
requiring applications to be submitted annually by September 15, with grants subject
to revocation and repayment under certain circumstances; amending K.S.A. 65-162a
and 65-171m and K.S.A. 2025 Supp. 82a-955, 82a-956 and 82a-957 and repealing
the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 65-162a is hereby amended to read as follows:
65-162a. As used in K.S.A. 65-163 and , 65-163a , and in K.S.A. 65-
171m to through 65-171t, inclusive and amendments thereto, unless the
context clearly requires otherwise, the following words and phrases
shall have the meanings respectively ascribed to them in this section:
(a) "Direct potable reuse" means using advanced treatment
processes to produce finished drinking water through the utilization of
a water source that contains treated wastewater that has not passed
through an environmental buffer.
(b) "Indirect potable reuse" means the planned delivery or
discharge of treated wastewater to an environmental buffer, such as
ground or surface waters, for the development of, or as a supplement
to, a drinking water supply.
(c) "Person" means an individual, corporation, company,
association, partnership, state, municipality or federal agency.
(b)(d) (1) "Public water supply system" means a system for the
provision to the public of piped water for human consumption, if such
system has at least ten ( 10) service connections or regularly serves an
average of at least twenty-five ( 25) individuals daily at least sixty (60)
days out of the year. Such term
(2) "Public water supply system" includes any source, treatment,
storage or distribution facilities under control of the operator of the
system and used primarily in connection with the system, and any
source, treatment, storage or distribution facilities not under such
control but which are used in connection with such system.
(c)(e) "Secretary" means the secretary of health and environment.
(d)(f) "Supplier of water" means any person who owns or operates
a public water supply system.
Sec. 2. K.S.A. 65-171m is hereby amended to read as follows: 65-
171m. (a) (1) The secretary of health and environment shall adopt rules
and regulations for the implementation of this act K.S.A. 65-162a, 65-
163, 65-163a, 65-170b and 65-171m through 65-171t, and
amendments thereto.
(2) (A) On or before July 1, 2028, the secretary of health and
environment shall adopt rules and regulations allowing for the direct
and indirect potable reuse of treated wastewater.
(B) The rules and regulations submitted pursuant to this
paragraph shall prioritize prescriptive treatment processes that make
the reuse of treated wastewater affordable or otherwise achievable.
(b) In addition to procedural rules and regulations, the secretary
may adopt rules and regulations providing for, but not limited to:
(a) (1) Primary drinking water standards applicable to all public
water supply systems in the state. The primary drinking water standards
may (1) :
(A) Identify contaminants which that may have an adverse effect
on the health of persons;
(2) (B) specify for each contaminant either :
(i) A maximum contaminant level that is acceptable in water for
human consumption, if it is economically and technologically feasible
HOUSE BILL No. 2462—page 2
to ascertain the level of such contaminant in water in public water
supply systems; or
(ii) the treatment techniques or methods which lead to a reduction
of the level of the contaminant sufficient to protect the public health, if
it is not economically or technologically feasible to ascertain the level
of the contaminant in the water in the public water supply system; and
(b) establish the
(2) requirements for adequate monitoring, maintenance of records
and submission of reports, sampling and analysis of water, citing
criteria and review and inspections to insure ensure compliance with
the contaminant levels or methods of treatment and to insure ensure
proper operation and maintenance of the public water supply system;
and (c)
(3) the definition of different categories of public water supply
systems, such as community water supply systems and noncommunity
water supply systems , and may provide for varying requirements for
monitoring, maintenance of records and reporting, sampling and
analysis of water, citing criteria , and review and inspections based on
numbers of persons served, source of supply whether surface or
groundwater or other conditions as the secretary may determine to be in
the interest of public health and welfare and economic benefits.
(c) The standards established under this section shall be at least as
stringent as the national primary drinking water regulations adopted
under public law 93-523. No primary drinking water standard or rule
and regulation may require the addition of fluorides to public water
supplies.
Sec. 3. K.S.A. 2025 Supp. 82a-955 is hereby amended to read as
follows: 82a-955. (a) On July 1, 2024, the director of accounts and
reports shall transfer $45,000,000 from the state general fund to the
state water plan fund. On July 1, 2025, and July 1, 2026 , and July 1,
2027, the director of accounts and reports shall transfer $35,000,000
from the state general fund to the state water plan fund. It is the intent
of the legislature to provide for the transfer of $35,000,000 from the
state general fund to the state water plan fund on July 1, 2027 2028.
(b) (1) The state water plan fund shall continue to be appropriated
and expended for the purposes prescribed in K.S.A. 82a-951, and
amendments thereto, except that if an appropriation is made for any
fiscal year as intended in subsection (a), on July 1, 2025, and July 1,
2026, or as soon thereafter on such dates as moneys are available:
(A) $5,500,000 $5,000,000 shall be transferred from the state
water plan fund to the water technical assistance fund established in
K.S.A. 2025 Supp. 82a-956, and amendments thereto; and
(B) $12,500,000 $12,000,000 shall be transferred from the state
water plan fund to the water projects grant fund established in K.S.A.
2025 Supp. 82a-957, and amendments thereto.
(2) The provisions of this section shall expire on July 1, 2028
2029. On July 1, 2028 2029, the director of accounts and reports shall
transfer all moneys in the water technical assistance fund and the water
projects grant fund to the state water plan fund and all liabilities of the
water technical assistance fund and the water projects grant fund shall
be imposed upon the state water plan fund. On July 1, 2028 2029, the
water technical assistance fund and the water projects grant fund shall
be abolished.
(c) (1) (A) Notwithstanding any restrictions in K.S.A. 82a-951,
and amendments thereto, the Kansas water authority may recommend
to the legislature the appropriation of up to 10% of the unencumbered
balance of the state water plan fund to be used to supplement salaries of
existing state agency full-time equivalent employees and for funding
new full-time equivalent positions created to implement the state water
plan. Moneys from such appropriation may be used to supplement
existing positions, but such moneys shall not be used to replace state
general fund moneys, any fee fund moneys or other funding for
positions existing on July 1, 2023.
(B) Eligible full-time equivalent positions that moneys may be
HOUSE BILL No. 2462—page 3
used for pursuant to this paragraph include engineers, geologists,
hydrologists, environmental scientists, attorneys, resource planners,
grant specialists and any other similar positions.
(2) If at least two conservation districts present a joint proposal to
the Kansas water authority for a position or positions to provide shared
services to all districts involved in such proposal, the Kansas water
authority may recommend that moneys be used to supplement the
salary or salaries of such position or positions pursuant to paragraph
(1).
(3) The Kansas water authority shall encourage funding requests
from state and local entities that cooperate with qualified nonprofit
entities on projects that provide a direct benefit to water quantity and
quality, including water infrastructures that are both natural and
constructed, and include matching funds from non-state sources.
(4) The Kansas water authority may direct the Kansas water office
to provide funding pursuant to K.S.A. 2025 Supp. 82a-956 or 82a-957,
and amendments thereto, for the improvement of water infrastructure in
an unincorporated area related to or serving a national park site or state
historic site if the request for funding is made by a nonprofit
organization or state agency that is willing to administer the moneys
and oversee the project, and the Kansas water authority deems such
applicant capable of successfully managing the project. Upon receipt of
such a request, the Kansas water office may award moneys in any fiscal
year prior to July 1, 2028 2029, with such awarding of moneys to be
made at the discretion of the Kansas water office.
(5) The Kansas water authority shall encourage the creation of
grant programs for stockwatering conservation projects. Such grant
programs shall prioritize the use of fees collected pursuant to K.S.A.
82a-954(a)(3), and amendments thereto.
(d) All reporting requirements established in K.S.A. 82a-951, and
amendments thereto, shall continue and such reporting requirements
shall apply to the water technical assistance fund established in K.S.A.
2025 Supp. 82a-956, and amendments thereto, and the water projects
grant fund established in K.S.A. 2025 Supp. 82a-957, and amendments
thereto.
Sec. 4. K.S.A. 2025 Supp. 82a-956 is hereby amended to read as
follows: 82a-956. (a) (1) There is hereby established in the state
treasury the water technical assistance fund. The fund shall be
administered by the Kansas water office. Expenditures from such fund
shall be used for the purposes described in subsection (b). All
expenditures shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to
vouchers approved by the director of the Kansas water office, or such
director's designee.
(2) Whenever the unencumbered balance of the water technical
assistance fund exceeds $15,000,000, such excess moneys may be
recommended for appropriation by the Kansas water authority for the
same purposes as any other moneys in the state water plan fund are
appropriated.
(b) (1) The water technical assistance fund shall be used by the
Kansas water office to provide grants for the planning, engineering,
managing and other technical assistance that may be necessary in the
development of plans for water infrastructure projects or for processing
the grant and loan applications for such water infrastructure projects.
The Kansas water office may offer services directly, provide funding to
other organizations to provide such services at no cost to a municipality
or special district related to water or the Kansas water office may
provide grants directly to applicants to cover expenses related to the
hiring of such technical assistance.
(2) Any municipality or special district related to water organized
under the laws of the state of Kansas may apply for a grant, and the
Kansas water office is authorized to award full or partial grants to such
applicants. Municipalities with fewer than 2,000 residents shall be
prioritized for the awarding of full grants. Watershed districts,
HOUSE BILL No. 2462—page 4
conservation districts, groundwater management districts and all
special districts related to water shall not be prioritized for the awarding
of full grants for the purposes of this section.
(c) The Kansas water office shall adopt rules and regulations to
establish any necessary criteria for administering the water technical
assistance fund and awarding grants for technical assistance. Such
criteria shall include, but not be limited to, factors applicable to:
(1) Municipalities of different populations including the
prioritization of small municipalities as required by subsection (b)(2).
Such factors may include, but not be limited to, public health, socio-
economic factors and the ability for a municipality to repay any loans
without grant assistance; and
(2) special districts such as watershed districts, conservation
districts, groundwater management districts, rural water districts and
any other similar districts formed for a special or single purpose related
to water.
(3) (A) An application submitted pursuant to paragraph (2) shall
include a complete preliminary engineering report that meets similar
standards established by the United States department of agriculture
for rural water projects or the environmental protection agency
drinking water state revolving fund requirements . Until a completed
preliminary engineering report has been submitted and the Kansas
water offices determines that the project is feasible, funding shall only
be provided for completion of a preliminary engineering report.
(B) If the preliminary engineering report is complete and the
Kansas water office has determined that the project is feasible, then
additional technical assistance funding may be provided for necessary
planning and engineering work.
(C) A preliminary engineering report shall include studies for
specific projects, regionalization studies or any other study or report
intended to determine the feasibility of future plans and projects.
(d)(c) No single grant awarded for technical assistance pursuant to
this section shall exceed $1,000,000 unless specified by any
appropriation act of the Kansas legislature.
(d) (1) A minimum of 60% of the annual amount transferred to the
technical assistance fund shall be awarded to municipalities with fewer
than 3,000 residents. This requirement shall not apply in years when
there are not enough applicants to allow compliance with this
subsection.
(2) The provisions of paragraph (1) shall not be construed as a
limitation on the total amount awarded to municipalities with fewer
than 3,000 residents.
(e) To be eligible to receive a grant, and in addition to any other
requirements, a municipality with more than 50,000 residents shall
demonstrate a threat to public health.
(f) No grants from the technical assistance fund shall be used to
address issues related to the impairment of water rights by another
water right.
(g) If a special district, such as a groundwater management
district, rural water district or other similar district formed for a
special or single purpose related to water, applies for a grant, such
district's application shall not be prioritized based on the number of
customers or residents pursuant to subsection (d). In addition to being
scored pursuant to subsection (h), such district's application shall meet
at least one of the following criteria:
(1) The project is for the purpose of expanding residential,
commercial, industrial and agricultural activity that cannot be
reasonably served by another source or distributor, except that any use
defined as irrigation by the chief engineer shall not be eligible;
(2) the project facilitates the transfer or upgrade of existing water
services to allow or assist with the incorporation of previously
unincorporated territory; or
(3) the project meets a specific goal or priority identified in the
state water plan.
HOUSE BILL No. 2462—page 5
(h) Eligible applications shall be prioritized based on the criteria
in this subsection. The Kansas water office shall establish a scoring
matrix based on these criteria and, following the announcement of
awards based on the highest scores, annually publish the scores of
every application.
(1) Each of the following categories shall be scored on a scale of
0 to 5:
(A) Public health. The proposed project's impact on addressing a
threat to public health, including, but not limited to, violations of
K.S.A. 65-162a et seq., and amendments thereto, or conditions that
have caused or may lead to a violation of state or federal drinking
water standards.
(B) Existing resources. The applicant can demonstrate that such
applicant has taken steps to adequately support and maintain current
and future infrastructure and provide relevant information concerning
the municipality's finances to demonstrate the need for project funding.
Relevant factors shall include, but are not limited to, demographic or
community economic information that would affect the municipality's
ability to pay for the proposed project without grant funding pursuant
to this section.
(C) Regional cooperation. The municipality is cooperating with
other municipalities and regional entities or can demonstrate how the
proposed project would improve the regional water supply or support
regional economic growth.
(D) Additional funding sources. Municipalities shall provide
information concerning the efforts of any such municipality to find
other available funding sources for the proposed project or why
obtaining such funding is not feasible. Applicants that can provide
some level of funding or in-kind contributions themselves or from any
other source shall be prioritized. Relevant factors shall include, but not
be limited to, the size of such contribution relative to the applicant's
request and such applicant's ability to contribute.
(E) Economic impact. The municipality can demonstrate the
proposed project's importance for the growth of the community, new
residential housing projects, an existing economic activity or for the
recruitment of new economic activity. Economic activity includes any
commercial, industrial or agricultural activity, except that any use
defined as irrigation by the chief engineer shall not be eligible.
(F) Conservation and extreme weather resiliency. The
municipality can demonstrate how the proposed project supports
conservation or would otherwise improve the municipality's ability to
provide, maintain and protect services during drought and flood events.
(G) Emergent issues. The municipality can demonstrate how the
proposed project addresses emergency circumstances that the
community is facing or will be facing related to insufficient access to
water-related infrastructure or resources.
(2) (A) If an applicant fails to provide enough information to be
scored in any category listed in this section, the Kansas water office
shall notify the applicant regarding the information needed and provide
an additional 30 days, starting from the date that the applicant
received such notice, for such applicant to submit such information.
(B) The Kansas water office shall send such notice by:
(i) An electronic mail message to the electronic mail address
included in the applicant's application; or
(ii) certified mail, return receipt requested, to the address that the
applicant included in such applicant's application.
(C) If the applicant fails to submit the information requested
under this paragraph, such applicant shall be given a score of 0 in the
corresponding category.
(i) Applications shall be due annually on September 15, and
grants shall be awarded not later than 180 days after such date.
(j) (1) Any grant may be revoked if:
(A) The grantee does not accept the grant award within 45 days of
such grant being issued unless the grantee requests additional time to
HOUSE BILL No. 2462—page 6
secure supplemental funding, but in no case shall the additional time
exceed 120 days of such grant being issued;
(B) it is determined that there has been no substantial
performance;
(C) there is substantial evidence of fraud, gross abuse or corrupt
practices;
(D) there is a lack of funding; or
(E) it is demonstrated that the project cannot be completed.
(2) Upon the revocation of any grant pursuant to this subsection,
the applicable grantee shall repay the Kansas water office any award
amount issued to the grantee in an amount determined by the director.
Any such grantee shall enter into a repayment agreement with the
director specifying the terms of such repayment obligation.
(k) The Kansas water office shall include reporting and payment
requirements within the terms of each awarded grant.
Sec. 5. K.S.A. 2025 Supp. 82a-957 is hereby amended to read as
follows: 82a-957. (a) (1) There is hereby established in the state
treasury the water projects grant fund. The fund shall be administered
by the Kansas water office. Expenditures from such fund shall be used
for the purposes described in subsection (b). All expenditures shall be
made in accordance with appropriation acts upon warrants of the
director of accounts and reports issued pursuant to vouchers approved
by the director of the Kansas water office, or such director's designee.
(2) Whenever the unencumbered balance of the water projects
grant fund exceeds $35,000,000, the director of the Kansas water office
shall certify such excess amount to the director of accounts and reports.
Upon receipt of such certification, the director of accounts and reports
shall transfer the certified excess amount from the water projects grant
fund to the state general fund.
(b) The Kansas water office may provide full or partial funding in
the form of grants to any municipality or special district related to
water established pursuant to the laws of the state of Kansas for the
following:
(1) Construction, repair, maintenance or replacement of water-
related infrastructures and any related construction costs;
(2) matching moneys for grant or loan applications for water-
related infrastructure projects; and
(3) grants that may be applied to an outstanding loan balance from
the public water supply loan fund established in K.S.A. 65-163e, and
amendments thereto, or the Kansas pollution control revolving fund
established in K.S.A. 65-3322, and amendments thereto, subject to the
provisions of subsection (c).
(c) The Kansas water office shall adopt rules and regulations to
establish any necessary criteria for grants from the water projects grant
fund. Such rules and regulations shall include any necessary criteria
that may be applied to the selection of projects with Prepayment of
outstanding loan balances from the public water supply loan fund
established in K.S.A. 65-163e, and amendments thereto, or the Kansas
pollution control revolving fund established in K.S.A. 65-3322, and
amendments thereto. Such criteria shall be based on the following
factors, shall be subject to the following parameters:
(1) The planned construction on the project with the outstanding
loan balance is complete;
(2) the municipality or special district has made at least five years
of payments on such project loans; and
(3) awarding grants that may provide repayment of up to:
(A) 90% of any remaining project loan balance for cities with
fewer than 2,000 residents;
(B) 75% of any remaining project loan balance for cities with
fewer than 5,000 residents;
(C) 50% of any remaining project loan balance for cities with
fewer than 10,000 residents; and
(D) 25% of any remaining project loan balance for all other cities
in Kansas; and
HOUSE BILL No. 2462—page 7
(4) any other relevant criteria including, but not limited to, the
socio-economic status of the residents of any municipality, public
health and the ability of any municipality to repay a loan without
further assistance.
(d) No single grant awarded for a project pursuant to this section
shall be greater than $8,000,000 unless specified by any appropriation
act of the Kansas legislature.
(e) It is the intent of the legislature that grants awarded pursuant
to subsection (b)(1) prioritize the awarding of partial grants combined
with loan funding provided from the municipality, the department of
health and environment, the United States department of agriculture or
other financial sources before grants for the full cost of projects are
awarded in order to increase impact of available funding.
(f) The Kansas water office and the department of health and
environment shall coordinate the sharing of information regarding
applicants for loans from the public water supply loan fund established
in K.S.A. 65-163e, and amendments thereto, and the Kansas pollution
control revolving fund established in K.S.A. 65-3322, and amendments
thereto, and shall take into consideration the approval or likely approval
of a grant by the Kansas water office when considering the eligibility of
any municipality to receive moneys from such funds.
(g) Special districts such as groundwater management districts,
rural water districts and any other similar districts formed for a
special or single purpose related to water that apply for funding or
services shall be eligible for loan prepayment of up to 50% of an
outstanding balance and for any other grant funding if the application
meets one of the following criteria:
(1) The project is for the purpose of expanding residential,
commercial, industrial or agricultural activity that cannot be
reasonably served by another source or distributor, except that any use
defined as irrigation by the chief engineer shall not be eligible;
(2) the project facilitates the transfer or upgrade of existing water
services to allow or assist with the incorporation of previously
unincorporated territory; or
(3) the project meets a specific goal or priority identified in the
state water plan.
(h) To be eligible to receive a grant, and in addition to any other
requirements, a municipality with more than 50,000 residents shall
demonstrate a threat to public health.
(i) No grants from the water projects grant fund shall be used to
address issues related to the impairment of water rights by another
water right.
(j) In any year where applications exceed the amount of funds or
capacity to provide services, eligible applications shall be prioritized
based on the criteria in this section. The Kansas water office shall
establish a scoring matrix based on the criteria below and, following
the announcement of awards based on the highest scores, annually
publish the scores of every application.
(1) Each of the following categories shall be scored on a scale of
0 to 5:
(A) Public health. The proposed project's impact on addressing a
threat to public health, including, but not limited to, violations of
K.S.A. 65-162a et seq., and amendments thereto, or conditions that
have caused or may lead to a violation of state or federal drinking
water standards.
(B) Existing resources. The applicant can demonstrate that such
applicant has taken steps to adequately support and maintain current
and future infrastructure and provide relevant information concerning
the municipality's finances to demonstrate the need for project funding.
Relevant factors shall include, but are not limited to, demographic or
community economic information that would affect the municipality's
ability to pay for the proposed project without grant funding pursuant
to this section.
(C) Regional cooperation. The municipality is cooperating with
HOUSE BILL No. 2462—page 8
other municipalities and regional entities or can demonstrate how the
proposed project would improve the regional water supply or support
regional economic growth.
(D) Additional funding sources. Municipalities shall provide
information concerning the efforts of any such municipality to find
other available funding sources for the proposed project or why
obtaining such funding is not feasible. Applicants that can provide
some level of funding or in-kind contributions themselves or from any
other source shall be prioritized. Relevant factors shall include, but not
be limited to, the size of such contribution relative to the applicant's
request and such applicant's ability to contribute. Applications, even if
denied, for other sources of funding shall be acknowledged.
(E) Economic impact. The municipality can demonstrate the
proposed project's importance for the growth of the community, new
residential housing projects, an existing economic activity or for the
recruitment of a new economic activity. Economic activity includes any
commercial, industrial or agricultural activity, except that any use
defined as irrigation by the chief engineer shall not be eligible.
(F) Conservation and extreme weather resiliency. The
municipality can demonstrate how the proposed project supports
conservation or would otherwise improve the municipality's ability to
provide, maintain and protect services during drought and flood events.
(G) Emergent issues. The municipality can demonstrate how the
proposed project addresses emergency circumstances that the
community is facing or will be facing related to insufficient access to
water-related infrastructure or resources.
(2) (A) If an applicant fails to provide enough information to be
scored in any category listed in this section, the Kansas water office
shall notify the applicant regarding the information needed and provide
an additional 30 days, starting from the date that the applicant
received such notice, for such applicant to submit such information.
(B) The Kansas water office shall send such notice by:
(i) An electronic mail message to the electronic mail address
included in the applicant's application; or
(ii) certified mail, return receipt requested, to the address that the
applicant included in such applicant's application.
(C) If the applicant fails to submit the requested information, such
applicant shall be given a score of 0 in the corresponding category.
(k) Applications shall be due annually on September 15.
(l) (1) Any grant may be revoked if:
(A) The grantee does not accept the grant award within 45 days of
such grant being issued;
(B) it is determined that there has been no substantial
performance;
(C) there is substantial evidence of fraud, gross abuse or corrupt
practices;
(D) there is a lack of funding; or
(E) it is demonstrated that the project cannot be completed.
(2) Upon the revocation of any grant pursuant to this subsection,
the applicable grantee shall repay the Kansas water office any award
amount issued to the grantee in an amount determined by the director.
Any such grantee shall enter into a repayment agreement with the
director specifying the terms of such repayment obligation.
(m) The Kansas water office shall include reporting and payment
requirements within the terms of each awarded grant.
HOUSE BILL No. 2462—page 9
Sec. 6. K.S.A. 65-162a and 65-171m and K.S.A. 2025 Supp. 82a-
955, 82a-956 and 82a-957 are hereby repealed.
Sec. 7. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and was
adopted by that body
HOUSE adopted
Conference Committee Report
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
SENATE adopted
Conference Committee Report
President of the Senate.
Secretary of the Senate.
APPROVED
Governor.