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69th Legislature 2025 HB 11
- 1 - Authorized Print Version – HB 11
ENROLLED BILL
AN ACT APPROPRIATING MONEY FROM THE MONTANA COAL ENDOWMENT SPECIAL REVENUE
ACCOUNT TO THE DEPARTMENT OF COMMERCE FOR INFRASTRUCTURE PROJECTS, EMERGENCY
GRANTS FOR FINANCIAL ASSISTANCE TO LOCAL GOVERNMENTS, AND INFRASTRUCTURE
PLANNING GRANTS; AUTHORIZING GRANTS FROM THE MONTANA COAL ENDOWMENT SPECIAL
REVENUE ACCOUNT; PLACING CONDITIONS ON GRANTS AND FUNDS; APPROPRIATING MONEY
FROM THE MONTANA COAL ENDOWMENT REGIONAL WATER SYSTEM SPECIAL REVENUE ACCOUNT
TO THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION FOR FINANCIAL ASSISTANCE
TO REGIONAL WATER AUTHORITIES FOR REGIONAL WATER SYSTEM PROJECTS; PROVIDING
APPROPRIATIONS; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Appropriation for Montana coal endowment program grants. (1) There is appropriated
$20,287,391 from the Montana coal endowment special revenue account established in 17-5-703(3)(a) to the
department of commerce for the biennium beginning July 1, 2025, to finance Montana coal endowment
program grants authorized by subsection (2).
(2) The following applicants and projects are authorized for grants and listed in the order of their
priority:
Infrastructure Applicant (project type) Grant Amount
1. Hysham, Town of (water) $750,000
2. Roundup, City of (wastewater) $750,000
3. Twin Bridges, Town of (water) $750,000
4. Harrison Water and Sewer District (wastewater) $750,000
5. Wolf Point, City of (wastewater) $625,000
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6. Dutton, Town of (water) $750,000
7. Alder County Water and Sewer District (wastewater) $750,000
8. Shelby, City of (wastewater) $375,000
9. Red Lodge, City of (wastewater) $500,000
10. White Sulphur Springs, City of (water) $625,000
11. South Wind Crosswinds Community $750,000
Water and Sewer District (water and wastewater)
12. Circle, Town of (water) $750,000
13. Arlee/Lake County Water and Sewer (wastewater) $327,500
14. Deer Lodge, City of (wastewater) $439,000
15. Willow Creek Sewer District (wastewater) $750,000
16. Hinsdale County Water and Sewer (water) $500,000
17. Fairfield, Town of (water) $500,000
18. Darby, Town of (wastewater) $750,000
19. Joliet, Town of (wastewater) $625,000
20. Ronan, City of (wastewater) $750,000
21. Bigfork County Water and Sewer (water) $500,000
22. Richey, Town of (water) $500,000
23. Malta, City of (water) $500,000
24. Big Timber, City of (water) $500,000
25. St. Ignatius, Town of (wastewater) $750,000
26. Ennis, Town of (water) $500,000
27. Pinesdale, Town of (water) $750,000
28. Basin County Water and/or Sewer (water) $500,000
29. Martinsdale Water and Sewer District (water) $750,000
30. Sun Prairie Village County Water and $500,000
Sewer District (water)
31. Judith Basin County for Geyser Water and $520,891
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Sewer District (wastewater)
32. Whitehall, Town of (water) $750,000
33. Libby, City of (wastewater) $500,000
(3) Funding for the projects in subsection (2) will be provided only as long as there are sufficient
funds available from the amount that was deposited into the Montana coal endowment special revenue account
during the biennium beginning July 1, 2025. Funding for the projects will be made available in the order that the
grant recipients satisfy the conditions described in [section 3(1)].
(4) There is appropriated $3,544,750 from the Montana coal endowment special revenue account
established in 17-5-703(3)(a) to the department of commerce for the biennium beginning July 1, 2025, to
finance Montana coal endowment program grants authorized by subsection (5) as projects meet the conditions
provided in [section 3(1)].
(5) The following applicants and projects are authorized for grants and listed in the order of their
priority:
Bridge Applicant Grant Amount
1. Lewis and Clark County $750,000
2. Madison County $750,000
3. Park County $612,750
4. Powder River County $363,600
5. Wibaux County $440,500
6. Missoula County $500,000
Styler Creek West Bridge
(6) Funding for projects 1 through 6 in subsection (5) will be provided only as long as there are
sufficient funds available from the amount that was deposited into the Montana coal endowment special
revenue account during the biennium beginning July 1, 2025. Funding for the projects will be made available in
the order that the grant recipients satisfy the conditions described in [section 3(1)].
(7) If sufficient funds are available, this section constitutes a valid obligation of funds to the grant
recipients listed in subsections (2) and (5) for the purpose of encumbering the funds in the Montana coal
endowment special revenue account for the biennium beginning July 1, 2025, pursuant to 17-7-302. However,
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a grant recipient’s entitlement to receive funds is dependent on the grant recipient’s compliance with the
conditions described in [section 3(1)] and on the availability of funds.
(8) Any project listed in subsections (2) and (5) that has not completed the conditions described in
[section 3(1)] by September 1, 2026, must be reviewed by the next regular legislature to determine if the
authorized grant should be withdrawn.
(9) The funds appropriated in this section must be used by the department to make grants to the
government entities listed in subsections (2) and (5) for the described purposes and in amounts not to exceed
the amounts set out in subsections (2) and (5). The grants authorized in this section are subject to the
conditions set forth in [section 3(1)] and described in the Montana coal endowment program 2027 biennium
project funding recommendations to the 69th legislature. The legislature, pursuant to 90-6-710, authorizes the
grants for the projects listed in subsections (2) and (5). The department shall commit funds to projects listed in
subsections (2) and (5), up to the amounts authorized except as provided in subsection (3), based on the
manner of disbursement set forth in [section 3] until the funds deposited into the Montana coal endowment
special revenue account during the biennium beginning July 1, 2025, are fully expended.
(10) If grant recipients do not complete all of the conditions described in [section 3(1)] by September
30, 2028, any obligation to the grant recipient will cease.
Section 2. Approval of grants -- completion of biennial appropriation. (1) The legislature,
pursuant to 90-6-701, authorizes grants for the projects identified in [section 1(2) and (5)], the emergency
infrastructure grants in [section 5], and the infrastructure planning grants in [section 6].
(2) The authorization of these grants completes a biennial appropriation from the Montana coal
endowment special revenue account established in 17-5-703(3)(a).
(3) Grants to entities from prior bienniums are reauthorized for completion of contract work.
Section 3. Condition of grants -- disbursement of funds. (1) The disbursement of grant funds for
the projects specified in [section 1(2) and (5)] is subject to completion of the following conditions:
(a) The grant recipient shall document that other matching funds required for completion of the
project are firmly committed.
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(b) The grant recipient must have a project management plan that is approved by the department
of commerce.
(c) The grant recipient must be in compliance with the auditing and reporting requirements
provided for in 2-7-503 and shall use a financial accounting system that the department of commerce can
reasonably ensure conforms to generally accepted accounting principles. Tribal governments shall comply with
auditing and reporting requirements provided for in 2 CFR 200.
(d) The grant recipient shall satisfactorily comply with all conditions described in the application’s
project summaries section of the Montana coal endowment program 2027 biennium project funding
recommendations to the 69th legislature.
(e) The grant recipient shall satisfy other specific requirements considered necessary by the
department of commerce to accomplish the purpose of the project as evidenced by the application to the
department.
(f) Pursuant to 90-6-710(6), the grant recipient shall comply with all Montana coal endowment
program requirements as determined by the department of commerce in order to qualify for reimbursement of
project expenses.
(g) The grant recipient shall execute a grant agreement with the department of commerce.
(2) With the exception of bridges, all projects must adhere to the design standards required by the
department of environmental quality. Recipients of Montana coal endowment program funds that are not
subject to the department of environmental quality design standards must adhere to generally accepted
industry standards, such as Recommended Standards for Wastewater Facilities or Recommended Standards
for Water Works, published by the Great Lakes-Upper Mississippi River Board of State and Provincial Public
Health and Environmental Managers, latest edition.
(3) Recipients of Montana coal endowment program funds are subject to the requirements of the
department of commerce as described in the most recent edition of the Montana Coal Endowment Program
Project Administration Manual adopted by the department through the administrative rulemaking process.
Section 4. Other powers and duties of department. (1) The department of commerce shall
disburse grant funds on a reimbursement basis as grant recipients incur eligible project expenses.
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(2) If actual project expenses are lower than the projected expense of the project, the department
may, at its discretion:
(a) reduce the amount of grant funds to be provided to grant recipients in proportion to all other
project funding sources; or
(b) reduce the amount of grant funds to be provided so that the grant recipient’s projected average
residential user rates do not become lower than their target rate as determined by the department.
(3) If the grant recipient obtains a greater amount of grant funds than was contained in the
Montana coal endowment program application, the department may reduce the amount of the Montana coal
endowment program grant funds to be provided to ensure that the grant recipient continues to meet the
threshold requirements contained in the program guidelines for receiving the larger Montana coal endowment
program grant.
Section 5. Appropriation from Montana coal endowment special revenue account for
emergency grants. There is appropriated $150,000 from the Montana coal endowment special revenue
account established in 17-5-703(3)(a) to the department of commerce for the biennium beginning July 1, 2025,
for the purpose of providing local governments, as defined in 90-6-701, with emergency grants for infrastructure
projects, as defined in 90-6-701.
Section 6. Appropriation from Montana coal endowment special revenue account for
infrastructure planning grants. There is appropriated $1,500,000 from the Montana coal endowment special
revenue account established in 17-5-703(3)(a) to the department of commerce for the biennium beginning July
1, 2025, for the purpose of providing local governments, as defined in 90-6-701, with infrastructure planning
grants for infrastructure projects, as defined in 90-6-701.
Section 7. Appropriation from Montana coal endowment regional water system special
revenue account. (1) There is appropriated $10 million from the Montana coal endowment regional water
system special revenue account established in 17-5-703(3)(b) to the department of natural resources and
conservation for the biennium beginning July 1, 2025, to finance the state’s share of regional water system
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projects authorized in subsection (2) and as set forth in 90-6-715.
(2) The state’s four regional water authorities are authorized to receive the funds appropriated in
subsection (1) as long as there are sufficient funds available from the amount that was deposited into the
Montana coal endowment regional water system special revenue account during the biennium beginning July 1,
2025.
(3) A regional water authority’s receipt of funds is dependent on the authority’s compliance with the
conditions described in [section 9(1)].
(4) This section constitutes a valid obligation of funds to the regional water authorities identified in
subsection (2) for the purpose of encumbering the Montana coal endowment regional water system special
revenue account funds received during the biennium beginning July 1, 2025, under 17-7-302.
Section 8. Approval of funds -- completion of appropriation. (1) The legislature, pursuant to 90-6-
715, authorizes funds for the regional water authorities identified in [section 7(2)].
(2) The authorization of these funds completes an appropriation from the Montana coal
endowment regional water system special revenue account established in 17-5-703(3)(b).
Section 9. Conditions -- manner of disbursement of funds. (1) The disbursement of funds under
[sections 7 and 8] is subject to completion of the following conditions:
(a) The regional water authority shall execute an agreement with the department of natural
resources and conservation.
(b) The regional water authority must have a project management plan that is approved by the
department.
(c) The regional water authority shall use a financial accounting system that the department can
reasonably ensure conforms to generally accepted accounting principles.
(d) The regional water authority shall provide the department with a detailed preliminary
engineering report.
(2) The department shall disburse funds on a reimbursement basis as the regional water authority
incurs eligible project expenses.
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Section 10. Notification to tribal governments. The secretary of state shall send a copy of [this act]
to each federally recognized tribal government in Montana.
Section 11. Effective date. [This act] is effective July 1, 2025.
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I hereby certify that the within bill,
HB 11, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 11
INTRODUCED BY J. FITZPATRICK
BY REQUEST OF THE OFFICE OF BUDGET AND PROGRAM PLANNING
AN ACT APPROPRIATING MONEY FROM THE MONTANA COAL ENDOWMENT SPECIAL REVENUE
ACCOUNT TO THE DEPARTMENT OF COMMERCE FOR INFRASTRUCTURE PROJECTS, EMERGENCY
GRANTS FOR FINANCIAL ASSISTANCE TO LOCAL GOVERNMENTS, AND INFRASTRUCTURE PLANNING
GRANTS; AUTHORIZING GRANTS FROM THE MONTANA COAL ENDOWMENT SPECIAL REVENUE
ACCOUNT; PLACING CONDITIONS ON GRANTS AND FUNDS; APPROPRIATING MONEY FROM THE
MONTANA COAL ENDOWMENT REGIONAL WATER SYSTEM SPECIAL REVENUE ACCOUNT TO THE
DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION FOR FINANCIAL ASSISTANCE TO
REGIONAL WATER AUTHORITIES FOR REGIONAL WATER SYSTEM PROJECTS; PROVIDING
APPROPRIATIONS; AND PROVIDING AN EFFECTIVE DATE.