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69th Legislature 2025 HB 6
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AN ACT IMPLEMENTING THE RENEWABLE RESOURCE GRANT AND LOAN PROGRAM;
APPROPRIATING MONEY TO THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION
FOR GRANTS UNDER THE RENEWABLE RESOURCE GRANT AND LOAN PROGRAM; PRIORITIZING
PROJECT GRANTS AND AMOUNTS; AMENDING SECTION 85-1-612, MCA; ESTABLISHING CONDITIONS
FOR GRANTS; PROVIDING FOR THE COORDINATION OF FUNDING; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Appropriations. (1) There is appropriated from the natural resources projects state
special revenue account established in 15-38-302 to the department of natural resources and conservation for
the biennium beginning July 1, 2025, up to:
(a) $500,000 for emergency projects grants to be awarded by the department over the biennium;
(b) $1 million for planning grants to be awarded by the department over the biennium;
(c) $500,000 for irrigation development grants to be awarded by the department over the
biennium;
(d) $150,000 for private grants to be awarded by the department over the biennium; and
(e) $500,000 for nonpoint source pollution reduction grants to be awarded by the department over
the biennium.
(2) There is appropriated $4,750,000 from the natural resources projects state special revenue
account established in 15-38-302 to the department of natural resources and conservation for the biennium
beginning July 1, 2025. The funds in this subsection (2) must be awarded by the department to the named
entities for the described purposes and in the grant amounts listed in subsection (4), subject to the conditions
set forth in [sections 2 and 3] and the contingencies described in the renewable resource grant and loan
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program's January 2025 report to the 69th legislature titled: "Governor's Executive Budget Fiscal Years 2026–
2027 Volume 6".
(3) Funds must be awarded up to the amounts approved in subsection (4) in the order of priority
listed until the available funds are expended. Funds not accepted or used by higher-ranked projects must be
provided for projects farther down the priority list that would not otherwise receive funding. If at any time a grant
recipient determines that a project will not begin before June 30, 2027, the grant recipient shall notify the
department of natural resources and conservation. After all eligible projects are funded, any remaining funds
may be used for any renewable resource project authorized under this section.
(4) The prioritized infrastructure grant projects are as follows:
RENEWABLE RESOURCE INFRASTRUCTURE GRANT PROJECTS
Rank Applicant/Project Amount
1 Arlee Lake County Water and Sewer District
Arlee Lake County Water and Sewer District Wastewater System Upgrades $125,000
2 Whitehall, Town of
Whitehall Drinking Water System Improvements $125,000
3 Deer Lodge, City of
Deer Lodge Wastewater Collection System Improvements $125,000
4 Harrison Water and Sewer District
Harrison Wastewater System Improvements $125,000
5 Madison County
Madison County Pennington Bridge Big Hole River Restoration $125,000
6 South Wind County Water and Sewer District
South Wind Drinking Water and Wastewater Improvements, Phase 4 $125,000
7 Willow Creek Sewer District
Willow Creek Sewer District Wastewater System Improvements $125,000
8 Roundup, City of
Roundup Wastewater Lagoon System Upgrades $125,000
9 Judith Basin County
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Judith Basin County Geyser Wastewater Treatment System Improvements $125,000
10 Martinsdale Water and Sewer District
Martinsdale Water and Sewer District Water System Improvements $125,000
11 Alder Water and Sewer District
Alder Water and Sewer District Wastewater System Improvements $125,000
12 Fairfield, Town of
Fairfield Drinking Water System Improvements $125,000
13 Dutton, Town of
Dutton Drinking Water System Improvements, Phase 2 $125,000
14 Circle, Town of
Circle Water System Improvements, Phase 5 $125,000
15 Malta, City of
Malta Drinking Water System Improvements $125,000
16 Red Lodge, City of
Red Lodge Wastewater System Improvements, Phases 2 and 3 $125,000
17 Hysham, Town of
Hysham Drinking Water System Improvements, Phase 2 $125,000
18 Darby, Town of
Darby Wastewater System Improvements $125,000
19 Sheridan, Town of
Sheridan Drinking Water System Improvements $125,000
20 Richey, Town of
Richey Drinking Water System Improvements, Phase 3 $125,000
21 Ennis, Town of
Ennis Drinking Water System Improvements $125,000
22 Basin Water and/or Sewer District
Basin Water and/or Sewer District Drinking Water System Improvements $125,000
23 Manhattan, Town of
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Manhattan Water System Improvements $125,000
24 Cooke City Water District
Cooke City Drinking Water Infrastructure Improvements $125,000
25 Treasure State Acres Water and Sewer District
Treasure State Acres Wastewater Treatment System Improvements $125,000
26 St. Ignatius, Town of
St. Ignatius Wastewater Collection Main Replacement $125,000
27 Twin Bridges, Town of
Twin Bridges Drinking Water System Improvements $125,000
28 Libby, City of
Libby Wastewater System Improvements $125,000
29 Sun Prairie Village County Water and Sewer District
Sun Prairie Village Drinking Water System Upgrades $125,000
30 Plentywood, City of
Plentywood Drinking Water System Improvements $125,000
31 White Sulphur Springs, City of
White Sulphur Springs Drinking Water System Improvements $125,000
32 Big Timber, City of
Big Timber Drinking Water Storage Improvements $125,000
33 Wolf Point, City of
Wolf Point Wastewater System Improvements, Phase 3 $125,000
34 Bigfork County Water and Sewer District
Bigfork Drinking Water System Improvements $125,000
35 Shelby, City of
Shelby Wastewater System Improvements $125,000
36 Ronan, City Of
Ronan Wastewater System Improvements $125,000
27 Bearcreek, Town of
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Bearcreek Drinking Water System Improvements, Phase 1 $125,000
38 Conrad, City of
Conrad Wastewater System Improvements $125,000
39 Pinesdale, Town of
Pinesdale Drinking Water System Improvements $125,000
40 Hinsdale County Water and Sewer District
Hinsdale County Water and Sewer District Water System Upgrades $125,000
41 Joliet, Town of
Joliet Wastewater System Improvements $125,000
(5) There is appropriated $2,744,500 from the natural resources projects state special revenue
account established in 15-38-302 to the department of natural resources and conservation for the biennium
beginning July 1, 2025. The funds in this subsection (5) must be awarded by the department to the named
entities for the described purposes and in the grant amounts listed in subsection (7), subject to the conditions
set forth in [sections 2 and 3] and the contingencies described in the renewable resource grant and loan
program's January 2025 report to the 68th legislature titled: "Governor's Executive Budget Fiscal Years 2026–
2027 Volume 6".
(6) Funds must be awarded up to the amounts approved in subsection (7) in the order of priority
listed until the available funds are expended. Funds not accepted or used by higher-ranked projects must be
provided for projects farther down the priority list that would not otherwise receive funding. If at any time a grant
recipient determines that a project will not begin before June 30, 2027, the grant recipient shall notify the
department of natural resources and conservation. After all eligible projects are funded, any remaining funds
may be used for any renewable resource project authorized under this section.
(7) The prioritized irrigation grant projects are as follows:
RENEWABLE RESOURCE IRRIGATION GRANT PROJECTS
Rank Applicant/Project Amount
1 Pondera County Conservation District
Pondera County Conservation District S-Canal Pipeline Conversion $125,000
2 Yellowstone County
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Yellowstone County Billings Bench Water Association Rattlesnake Reservoir Water Management
Improvements $125,000
3 Yellowstone Irrigation District
Yellowstone Irrigation District Canal Rehabilitation $125,000
4 Lower Yellowstone Irrigation District #1
Lower Yellowstone Irrigation District Thomas Point Pump Station Rehabilitation, Phase 2
$125,000
5 Savage Irrigation District
Savage Irrigation District Pumping Plant Rehabilitation, Phase 2 $125,000
6 Clinton Irrigation District
Clinton Irrigation District Schoolhouse Lateral Pipeline Conversion, Phase 4 $125,000
7 Helena Valley Irrigation District
Helena Valley Irrigation District Lateral 26.6 and Lateral 20.7-3.3 Seepage Mitigation
$125,000
8 Helena Valley Irrigation District
Helena Valley Irrigation District Pumping Plant Automation $125,000
9 Greenfields Irrigation District
Greenfields Irrigation District Check Replacement, Phase 2 $125,000
10 Tongue and Yellowstone River Irrigation District
Tongue and Yellowstone River Irrigation District Cowles Creek Flume Replacement
$125,000
11 Tongue and Yellowstone River Irrigation District
Tongue and Yellowstone River Irrigation District Jones Creek Flume and Canal Conversion
$125,000
12 Bitterroot Conservation District
Bitterroot Conservation District Union Diversion Resource Improvements $125,000
13 Fort Belknap Irrigation District
Fort Belknap Irrigation District Main Canal Lining Project $125,000
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14 Petroleum County Conservation District
Petroleum County Conservation District McDonald Creek Diversion Structures Replacement
$125,000
15 Malta Irrigation District
Malta Irrigation District Black Coulee Siphon Replacement $125,000
16 Yellowstone Irrigation District
Yellowstone Irrigation District Lateral 17.6 Rehabilitation, Phase 1 $125,000
17 Sweet Grass Conservation District
Sweet Grass Conservation District Crest Ditch Headgate Rehabilitation $125,000
18 Petrolia Irrigation District
Petrolia Irrigation District Main Canal Pipeline Conversion $125,000
19 Glen Lake Irrigation District
Glen Lake Irrigation District Doxie Slough Seepage Mitigation Project $125,000
20 Hammond Irrigation District
Hammond Irrigation District Big Porcupine Siphon Rehabilitation $125,000
21 Sunset Irrigation District
Headgate Repair $20,000
22 Greenfields Irrigation District
Greenfields Irrigation District J-Wasteway Modernization $125,000
23 Bitter Root Irrigation District
Bitter Root Irrigation District Diversion Control Modernization $99,500
24 Zurich Irrigation District
Zurich Irrigation District Brown Creek Siphon Rehabilitation $125,000
25 Kinsey Irrigation District
Kinsey Irrigation District Harris Creek Spill Structure Rehabilitation $125,000
26 Kinsey Irrigation District
Kinsey Irrigation District Hammerbacker Lateral to Pipeline Conversion $125,000
27 Fort Shaw Irrigation District
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Fort Shaw Irrigation District Simms Creek Siphon Replacement $125,000
Section 2. Coordination of fund sources for grants to political subdivisions and local
governments. A grant recipient listed under [section 1(4) and (7)] may not receive funds from both the
reclamation and development grants program and the renewable resource grant and loan program for the same
project during the same biennium.
Section 3. Condition of grants. The disbursement of funds under [section 1] is subject to the
following conditions that must be met by the grant recipient:
(1) The grant recipient must have a scope of work, schedule, and budget for the project that is
approved by the department of natural resources and conservation. Any changes in scope of work or budget
after legislative approval may not alter project goals and objectives. Changes in activities that would reduce the
public or natural resource benefits as presented in department of natural resources and conservation reports
and applicant testimony to the 69th legislature may result in a proportional reduction in the grant amount.
(2) The grant recipient must document that other matching funds required for completion of the
project are firmly committed.
(3) The grant recipient must have a project management plan that is approved by the department
of natural resources and conservation.
(4) The grant recipient shall comply with the auditing and reporting requirements provided for in 2-
7-503 and establish a financial accounting system that the department can reasonably ensure conforms to
generally accepted accounting principles. Tribal governments shall comply with the auditing and reporting
requirements provided for in 2 CFR 200.
(5) The grant recipient shall satisfactorily complete the conditions described in the
recommendation section of the project narrative of the program report to the legislature for the biennium ending
June 30, 2027, or, in the case of planning grants issued under [section 1(1)], complete the conditions specified
at the time of written notification of the approved grant authority.
(6) The grant recipient shall execute a grant agreement with the department of natural resources
and conservation.
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(7) Any other specific requirements considered necessary by the department must be met to
accomplish the purpose of the grant as evidenced from the application to the department or from the proposal
as presented to the legislature.
Section 4. Appropriations established. There is appropriated to any entity of state government that
receives a grant under [section 1] the amount of the grant upon award of the grant by the department of natural
resources and conservation. Grants to entities from prior biennia are reauthorized for the completion of contract
work.
Section 5. Approval of grants -- completion of biennial appropriation. The legislature, pursuant
to 85-1-605, approves the renewable resource grant and loan program grants listed in [section 1]. The
authorization of these grants constitutes a biennial appropriation from the natural resources projects state
special revenue account established in 15-38-302.
Section 6. Section 85-1-612, MCA, is amended to read:
"85-1-612. Rulemaking authority. The department shall adopt rules:
(1) prescribing a reasonable application fee and the form and content of applications for grants
and loans;
(2) governing the application of the criteria for awarding loans and grants to private persons;
(3) providing for the servicing of loans including arrangements for obtaining security interests and
the establishment of reasonable fees or charges to be made;
(4) describing the terms and conditions for making grants and loans, the security instruments, and
the agreements necessary;
(5) describing the ranking criteria used to evaluate and prioritize grants to governmental entities,
which must include a ratio calculated by dividing the amount of the locally provided match, which includes cash
or capital improvement funds, by the annual operating budget for the system. Projects with a higher ratio of
match may be given priority over other projects with a lower ratio, and consideration must be given to the size
and cost of the proposed project, the number of users the project serves, and the ability of the applicant to fund
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the fund dedicated to capital improvements.
(6) specifying any other procedures necessary to accomplish the objectives of the renewable
resource grant and loan program."
Section 7. Notification to tribal governments. The secretary of state shall send a copy of [this act]
to each federally recognized tribal government in Montana.
Section 8. Severability. If a part of [this act] is invalid, all valid parts that are severable from the
invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in
effect in all valid applications that are severable from the invalid applications.
Section 9. Coordination instruction. (1) If both [this act] and an act that provides additional funding
for renewable resource grant and loan program grants from a source other than the natural resources projects
state special revenue account established in 15-38-302 are passed and approved, the projects listed in [section
1(4) and (7) of this act] that do not receive funding from the appropriations in [section 1(2) and (5) of this act]
may receive funding from the appropriation in the other act designated for renewable resource grant and loan
program grants in the order of completion of the conditions of [section 3 of this act] and to the extent that there
is appropriation authority available.
(2) Appropriations made in [section 1(1)(a) through(1)(e)] may be adjusted within [section 1(1)(a)
through (1)(e)] within the biennium based on demand or emergencies.
Section 10. Effective date. [This act] is effective July 1, 2025.
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I hereby certify that the within bill,
HB 6, 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. 6
INTRODUCED BY J. FITZPATRICK
BY REQUEST OF THE OFFICE OF BUDGET AND PROGRAM PLANNING
AN ACT IMPLEMENTING THE RENEWABLE RESOURCE GRANT AND LOAN PROGRAM; APPROPRIATING
MONEY TO THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION FOR GRANTS UNDER
THE RENEWABLE RESOURCE GRANT AND LOAN PROGRAM; PRIORITIZING PROJECT GRANTS AND
AMOUNTS; AMENDING SECTION 85-1-612, MCA; ESTABLISHING CONDITIONS FOR GRANTS;
PROVIDING FOR THE COORDINATION OF FUNDING; AND PROVIDING AN EFFECTIVE DATE.