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As Amended by House Committee
{As Amended by Senate Committee of the Whole}
As Amended by Senate Committee
Session of 2026
SENATE BILL No. 317
By Committee on Agriculture and Natural Resources
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AN ACT concerning water; 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; requiring municipalities to
demonstrate a current 25-year water supply in applications related to
water distribution, unless application is for new water supply source
that will extend the current supply beyond 25 years; 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. 2025 Supp. 82-955a, 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. 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, July 1, 2027, July 1,
2028, July 1, 2029, and July 1, 2030, 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.
(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 pursuant to subsection (a), on July 1, 2025, and
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SB 317—Am. by HC 2
July 1, 2026, of such fiscal year or as soon thereafter on such dates as
moneys are available:
(A) $5,500,000 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 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
2031. On July 1, 2028 2031, 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 2031 , 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
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
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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, 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.
Section 1. Sec. 2. 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.
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(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,
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 50% 60% of the annual amount transferred to
the technical assistance fund shall be awarded to municipalities with
fewer than 8,000 2,000 residents. This requirement shall not apply in years
when there are not enough applicants to allow compliance with this
subsection.
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(2) The provisions of paragraph (1) shall not be construed as a
limitation on the total amount awarded to municipalities with fewer than
8,000 2,000 residents.
(e) Any application that is related to the distribution or supply of
water shall demonstrate that:
(1) A 25-year supply of water, at a minimum, is available; or
(2) the project specified in the application will extend the applicant's
available water supply beyond 25 years.
(f) 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 or demonstrate that failure to
complete a project creates a disproportionate burden on a low-income
population.
(g)(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.
(h)(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 (i) (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.
(i) 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 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 10:
(A) Public health . The proposed project's impact on addressing an
imminent a threat to public health, including, but not limited to,
violations of K.S.A. 65-162a et seq., and amendments thereto, or
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SB 317—Am. by HC 6
conditions that have caused or may lead to a violation of state or
federal drinking water standards.
(B) Responsible management of Existing resources. The applicant
shall demonstrate that such applicant has responsibly managed such
applicant's finances and further demonstrate whether the municipality can
realistically complete the project without outside funding. The applicant
shall also demonstrate that such applicant has enacted policies that will
adequately support and maintain current and future infrastructure.
Relevant factors shall include the municipality's total bonding authority,
debt per capita, credit rating as applicable, total tax burden per capita,
current operating policies, rate structure, debt burden per meter that the
municipality is willing to finance and other similar measures 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) Long-term population trends. Funding shall be prioritized to
support population growth and new residential housing projects that
increase the demand for existing water servicesRegional cooperation. The
municipality is cooperating with other municipalities and regional
entities or can demonstrate how the proposed project would improve
the regional water supply.
(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. Applicants shall be scored proportionate
to the amount of funding that such applicants can provide, with the
maximum score for applicants that can provide 60% or more of the
project's funds 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 project
is necessary 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
shall include {includes} any commercial, industrial or agricultural
activity, except that any use defined as irrigation by the chief engineer
shall not be eligible.
(F) Regional cooperation. The municipality is cooperating with other
municipalities and regional entities, or can demonstrate improvements in
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SB 317—Am. by HC 7
regional water supply. Consideration shall be given to projects that
support regional economic growth, including the development of
reinvestment housing districts, workforce housing or other residential
housing activities that help fulfill housing needs that have been identified
by any housing study conducted within the 10 years immediately
preceding the date the application was submitted.
(G) Conservation and extreme weather resiliency . The municipality
can demonstrate improved 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.
(j)(i) Applications shall be due annually on September 15, and grants
shall be awarded not later than 180 days after such date.
(k)(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
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
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SB 317—Am. by HC 8
specifying the terms of such repayment obligation.
(l)(k) The Kansas water office shall include reporting and payment
requirements within the terms of each awarded grant.
Sec. 2. 3. 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 ForgivenessPrepayment 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:
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SB 317—Am. by HC 9
(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
(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 forgiveness 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.
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SB 317—Am. by HC 10
(h) (1) For any application that is related to the distribution or
supply of water, a municipality shall demonstrate that a 25-year supply of
water, at minimum, is available.
(2) The minimum availability requirement of paragraph (1) shall not
apply if the application is for the development of a new water supply
source that will extend the available water supply beyond 25 years.
(i) 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 or demonstrate that failure to
complete a project creates a disproportionate burden on a low-income
population.
(j)(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.
(k)(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 10:
(A) Public health . The proposed project's impact on addressing an
imminent 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) Responsible management of Existing resources. The applicant
shall demonstrate that such applicant has responsibly managed such
applicant's finances and further demonstrate whether the municipality can
realistically complete the project without outside funding. The applicant
shall also demonstrate that such applicant has enacted policies that will
adequately support and maintain current and future infrastructure.
Relevant factors shall include the municipality's total bonding authority,
debt per capita, credit rating as applicable, total tax burden per capita,
current operating policies, rate structure, debt burden per meter that the
municipality is willing to finance and other similar measures 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) Long-term population trends. Funding shall be prioritized to
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SB 317—Am. by HC 11
support population growth and new residential housing projects that
increase the demand for existing water servicesRegional cooperation. The
municipality is cooperating with other municipalities and regional
entities or can demonstrate how the proposed project would improve
the regional water supply.
(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. Applicants shall be scored proportionate
to the amount of funding that such applicants can provide, with the
maximum score for applicants that can provide 60% or more of the
project's funds 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 shall {can} demonstrate that
the project is necessary 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) Regional cooperation. The municipality is cooperating with other
municipalities, {and} regional entities or can demonstrate improvements
in the regional water supply. Consideration shall be given to projects that
support regional economic growth, including the development of
reinvestment housing districts, workforce housing or other residential
housing activities that help fulfill housing needs identified by a housing
study created within 10 years of the application.
(G) Conservation and extreme weather resiliency . The municipality
can demonstrate improved 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
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SB 317—Am. by HC 12
notice, for such applicant to submit such information.
(B) The Kansas water office shall send such notice by:
(i)(k) An electronic mail message to the electronic mail address
included in the applicant's application; or
(ii)(l) 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.
(l)(m) Applications shall be due annually on September 15.
(m)(n) (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.
(n)(o) The Kansas water office shall include reporting and payment
requirements within the terms of each awarded grant.
Sec. 3. 4. K.S.A. 2025 Supp. 82a-955, 82a-956 and 82a-957 are
hereby repealed.
Sec. 4. 5. This act shall take effect and be in force from and after its
publication in the Kansas register.
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