reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 4. Special Projects (Repealed) › 85-1-407. Repealed

85-1-407. Repealed.
Sec. 1, Ch. 61, L. 1991.
History: En. Sec. 7, Ch. 534, L. 1979; amd. Sec. 57, Ch. 112, L. 1991.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-501. Survey of power generation capacity

85-1-501. Survey of power generation capacity.
(1) The department shall study the economic and environmental feasibility of constructing and operating a small-scale hydroelectric power generating facility on each of the water projects under its control and shall periodically update those studies as the cost of the electrical energy increases. In determining whether small-scale hydroelectric generation may be economically feasible on a particular project, the department shall consider:
(a) the estimated cost of construction of a facility;
(b) the estimated cost of maintaining, repairing, and operating the facility;
(c) the estimated cost of tying into an existing power distribution channel;
(d) the ability of public utilities or rural electric cooperatives to lease and operate such a facility;
(e) the debt burden to be serviced;
(f) the revenue expected to be derived;
(g) the likelihood of a reasonable rate of return on the investment; and
(h) the potential impacts on water supply and streamflows.
(2) The department shall update the energy and telecommunications interim committee and the water policy interim committee in accordance with 5-11-210 on all past and current studies conducted pursuant to this section.
History: En. Sec. 1, Ch. 503, L. 1981; amd. Sec. 1, Ch. 275, L. 2011; amd. Sec. 114, Ch. 261, L. 2021.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-502. Notice of availability of lease sites

85-1-502. Notice of availability of lease sites.
(1) If after completion of the feasibility study of a particular project the department determines that hydroelectric power generation at the project would be feasible and in the best interest of the people of the state of Montana, it shall publish notice and make the site available for lease for the purpose of small-scale hydroelectric power generation, pursuant to 85-1-502 through 85-1-508, unless that action would result in the forfeiture of any necessary federal license, permit, or exemption, in which case the department may proceed under 85-1-509.
(2) In issuing a notice of availability of a site for lease under this section, the department shall include in the notice any reasonable conditions it may find necessary in order to protect the interests of the state.
History: En. Sec. 2, Ch. 503, L. 1981; amd. Sec. 1, Ch. 96, L. 1983; amd. Sec. 433, Ch. 418, L. 1995.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-503. Receipt of applications

85-1-503. Receipt of applications.
(1) Applications for lease may be submitted by any person qualified to do business in Montana.
(2) The department shall consider only applications received within 180 days after the final publication of the notice.
(3) Applications must include a statement of the capability of the applicant to achieve the annual production output estimated by the department, the estimated time to make the project operational, the bid amount of the royalty, and any other information that the department requests.
History: En. Sec. 3, Ch. 503, L. 1981; amd. Sec. 1, Ch. 293, L. 1985; amd. Sec. 434, Ch. 418, L. 1995.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-504. Determinations by department

85-1-504. Determinations by department.
(1) Within a reasonable time following the conclusion of the lease application period, the department shall hold a hearing to examine all applications that have been received for the lease of the project.
(2) Within 180 days following the conclusion of the lease application period, the department shall reject any or all applications or shall award a lease to the party whose offer, considered in its totality, is the most advantageous to the state.
(3) The decision must include a determination that the potential developer will provide an adequate royalty payment, is capable of carrying out the proposed development, can provide efficient and reliable service, and intends in good faith without unnecessary delay to proceed with the development.
(4) If all lease applications are rejected, the department may negotiate with all applicants on an equal basis in an effort to arrive at an acceptable application.
History: En. Sec. 4, Ch. 503, L. 1981; amd. Sec. 435, Ch. 418, L. 1995.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-505. Lease conditions

85-1-505. Lease conditions.
(1) The lessee shall pay a royalty to the state as required in the lease.
(2) The department may authorize provisions in the lease that offer economic incentives for rapid development of the project or impose economic penalties for delays in development, which may include cancellation of the lease.
History: En. Sec. 5, Ch. 503, L. 1981; amd. Sec. 436, Ch. 418, L. 1995.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-506. Compliance with federal law

85-1-506. Compliance with federal law.
The department may hold a license, permit, or exemption under federal law on a project.
History: En. Sec. 6, Ch. 503, L. 1981; amd. Sec. 2, Ch. 293, L. 1985.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-507. Duration of lease

85-1-507. Duration of lease.
The term of the lease may not exceed the term of the license, permit, or exemption held by the department under 85-1-506 and may in no event exceed 55 years.
History: En. Sec. 7, Ch. 503, L. 1981.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-508. Duties of the department

85-1-508. Duties of the department.
The department has primary responsibility for supervision of any lease.
History: En. Sec. 8, Ch. 503, L. 1981; amd. Sec. 437, Ch. 418, L. 1995.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-509. Power generation by department authorized

85-1-509. Power generation by department authorized.
(1) If lease applications are not received under 85-1-503 or if the department rejects all lease applications under 85-1-504, the department may proceed to obtain any necessary license, permit, or exemption under federal law and commence construction and operation of a small-scale hydroelectric generation facility pursuant to the provisions of this chapter. Construction may not commence until the department has clear and convincing evidence that construction is economically feasible and is the most practical means by which the facility could be developed.
(2) Financing of construction and operation of the facility must be accomplished in a manner determined by the department to be most feasible.
History: En. Sec. 9, Ch. 503, L. 1981; amd. Sec. 438, Ch. 418, L. 1995; amd. Sec. 1, Ch. 209, L. 1999.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-510. Sale of power and allocation of revenue

85-1-510. Sale of power and allocation of revenue.
(1) If the operator of a small-scale hydroelectric generation facility under this chapter and a public utility or an electric cooperative are unable to mutually agree to a contract for the sale of electricity or a price for the electricity purchased by the utility or electric cooperative, the public service commission shall require the utility or electric cooperative to purchase the power under rates and terms established as provided in 85-1-511 through 85-1-513.
(2) The revenue derived from hydroelectric power generation under this part must be deposited in the state water project hydroelectric power generation special revenue account created under 85-1-220. The funds in the account must be used to repair and rehabilitate state-owned water projects and works and to pay the cost of financing those activities.
History: En. Sec. 10, Ch. 503, L. 1981; amd. Sec. 3, Ch. 370, L. 1991.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-511. Determination by the public service commission

85-1-511. Determination by the public service commission.
A determination of the rates and terms under which the power must be purchased shall be made by the public service commission upon petition of the facility operator or a public utility or electric cooperative or during a rate proceeding involving the review of rates paid for electricity purchased from the facility. The commission shall render a decision within 120 days from receipt of the petition or before the completion of the rate review proceeding. The rate and terms of the determination must be according to the standards specified in 85-1-512.
History: En. Sec. 11, Ch. 503, L. 1981.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-512. Standards for the determination

85-1-512. Standards for the determination.
(1) The standards for the determination provided for in 85-1-511 by the public service commission shall include the following:
(a) Long-term contracts for the purchase of electricity by the utility or electric cooperative from a small-scale hydroelectric facility under this chapter shall be encouraged in order to enhance the economic feasibility of such facilities.
(b) The rates paid by a utility or electric cooperative to a small-scale hydroelectric facility may not exceed, over the term of the purchase contract, the incremental cost to the utility or electric cooperative of the electricity that, but for the purchase from the small-scale hydroelectric facility, the utility or electric cooperative would generate or purchase from another source.
(c) The rates to be paid by a utility or an electric cooperative for power purchased from a small-scale hydroelectric facility shall be established with consideration of the availability and reliability of the power produced.
(2) The commission may set these rates by use of any of the following methods:
(a) the levelized avoided cost over the term of the contract;
(b) the cost of production for the small-scale hydroelectric facility plus a just and reasonable return; or
(c) any other method that will promote the development of small-scale hydroelectric facilities.
History: En. Sec. 12, Ch. 503, L. 1981.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-513. Purchase of power by electric cooperative not agreeing to be bound by public service commission determination

85-1-513. Purchase of power by electric cooperative not agreeing to be bound by public service commission determination.
If any electric cooperative wishing to purchase power from a small-scale hydroelectric facility under this chapter refuses to submit to the ratemaking authority of the public service commission established in 85-1-511, then the rate for such cooperative may be determined by the federal energy regulatory commission upon proper petition. The facility shall sell power in accordance with such determination, so long as the rates and terms so established will allow the facility a reasonable return.
History: En. Sec. 13, Ch. 503, L. 1981.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 5. Power Generation at Projects › 85-1-514. Power generation negotiation process

85-1-514. Power generation negotiation process.
(1) A person with federal authorization or, if authorization is not required, a person planning to construct a small-scale hydroelectric generation facility at a state-owned project shall submit an application to the department for hydroelectric development at the state-owned project site.
(2) Upon receipt of a written application under subsection (1), the department shall make an investigation and prepare a report on the value of the power site, the plans of development submitted by the applicant, and any other matters relating to the proposed development that the department considers necessary for the proper development of hydroelectric generation at the state-owned project.
(3) Upon completion of the report, the department may negotiate with the applicant for the acquisition of the necessary interest in the state-owned project to effectively allow the applicant to operate a hydroelectric facility. The terms, conditions, and compensation agreed to must include but not be limited to the full market value of the interest disposed of by the department. Full market value must be determined by the department in the report completed under subsection (2).
(4) An applicant under subsection (1) shall pay to the department all costs incurred by the department in carrying out its duties under this section. The department and the applicant shall contract for the provision of services and payment of fees required by this section prior to accepting an application under subsection (2).
(5) Nothing in this section requires the department to construct, rehabilitate, reconstruct, operate, or otherwise maintain the state-owned project to accommodate the hydroelectric facility except as negotiated under subsection (3).
History: En. Sec. 3, Ch. 293, L. 1985; amd. Sec. 439, Ch. 418, L. 1995.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-602. Objectives

85-1-602. Objectives.
(1) The department shall administer a renewable resource grant and loan program to enhance Montana's renewable resources through projects that measurably conserve, develop, manage, or preserve resources. Either grants or loans may be provided to fund the following:
(a) feasibility, design, research, and resource assessment studies;
(b) preparation of construction, rehabilitation, or production plans; and
(c) construction, rehabilitation, production, education, or other implementation efforts.
(2) Projects that may enhance renewable resources in Montana include but are not limited to:
(a) development of natural resource-based recreation;
(b) development of natural, offstream, and tributary storage;
(c) improvement of water use efficiency, including development of new, efficient water systems, rehabilitation of older, less efficient water systems, and acquisition and installation of measuring devices required under 85-2-113; monitoring; and development of state, tribal, and federal water projects;
(d) water-related projects that improve water quality, including livestock containment facility projects, soil and range health projects, and the maintenance and repair of source watersheds;
(e) water-related projects that improve water quantity, including streamflows and water storage in existing natural systems, such as riparian areas, flood plains, and wetlands;
(f) advancement of farming practices that reduce agricultural chemical use; and
(g) projects that facilitate the use of alternative renewable energy sources, as defined in 15-6-225.
(3) The renewable resource grant and loan program is the key implementation portion of the state water plan and must be administered to encourage grant and loan applications for projects designed to accomplish the objectives of the plan.
(4) A grant or loan may not be awarded to a project that affects source watersheds or soil and range health if the project would reduce, restrict, or prohibit any lawful access to the property that existed prior to the project's implementation. This subsection does not apply to access that is temporarily created, granted, or reduced due to project operations.
History: En. Sec. 2, Ch. 505, L. 1981; amd. Sec. 1, Ch. 116, L. 1989; amd. Sec. 4, Ch. 543, L. 1991; amd. Sec. 10, Ch. 478, L. 1993; amd. Sec. 3, Ch. 436, L. 1997; amd. Sec. 1, Ch. 169, L. 2001; amd. Sec. 1, Ch. 117, L. 2005; amd. Sec. 2, Ch. 341, L. 2017.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-603. Renewable resource loan debt service fund created -- coal severance tax allocated -- renewable resource loan loss reserve fund created

85-1-603. Renewable resource loan debt service fund created -- coal severance tax allocated -- renewable resource loan loss reserve fund created.
(1) (a) There is created a renewable resource loan debt service fund within the debt service fund type established in 17-2-102.
(b) The state pledges and allocates and directs to be credited to the renewable resource loan debt service fund, as received:
(i) 0.95% of all money from time to time received from the coal severance tax collected under Title 15, chapter 35;
(ii) any principal and accrued interest under 85-1-613(5)(a) received in repayment of a loan made from the proceeds of bonds issued under 85-1-617;
(iii) all interest income earned on proceeds of renewable resource grant and loan program bonds;
(iv) revenue or money otherwise required to be paid into the natural resources projects state special revenue account pursuant to 15-38-302, as determined by the board of examiners in connection with the issuance of bonds pursuant to 85-1-617; and
(v) money received from the renewable resource loan loss reserve fund as the result of a loan loss.
(2) (a) There is a renewable resource loan loss reserve fund within the debt service fund type established in 17-2-102.
(b) The state pledges and allocates and directs to be credited to the renewable resource loan loss reserve fund all accrued interest under 85-1-613(5)(b) received in repayment of a loan made from the proceeds of bonds issued under 85-1-617.
(c) If the department determines that a loan loss has occurred on a loan made pursuant to this part, funds from the renewable resource loan loss reserve fund must be transferred to the renewable resource loan debt service fund in an amount equal to the amount that would otherwise be available for debt service under subsection (1)(b) as a result of the loan loss.
History: En. Sec. 4, Ch. 505, L. 1981; amd. Sec. 35, Ch. 298, L. 1983; amd. Sec. 1, Ch. 6, Sp. L. March 1986; amd. Sec. 2, Ch. 2, L. 1987; amd. Sec. 2, Ch. 491, L. 1989; amd. Sec. 11, Ch. 478, L. 1993; amd. Sec. 6, Ch. 442, L. 1995; amd. Sec. 1, Ch. 332, L. 1997; amd. Sec. 15, Ch. 432, L. 2007.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-604. Repealed

85-1-604. Repealed.
Sec. 30, Ch. 432, L. 2007.
History: En. Sec. 5, Ch. 505, L. 1981; amd. Sec. 2, Ch. 149, L. 1983; amd. Sec. 36, Ch. 298, L. 1983; amd. Sec. 10, Ch. 512, L. 1985; amd. Sec. 2, Ch. 6, Sp. L. March 1986; amd. Sec. 2, Ch. 116, L. 1989; amd. Sec. 3, Ch. 491, L. 1989; amd. Sec. 5, Ch. 543, L. 1991; amd. Sec. 9, Ch. 659, L. 1991; amd. Sec. 12, Ch. 478, L. 1993; amd. Sec. 3, Ch. 577, L. 1995; amd. Sec. 297, Ch. 42, L. 1997; amd. Sec. 5, Ch. 444, L. 1997; amd. Sec. 8, Ch. 144, L. 1999; amd. Sec. 7, Ch. 307, L. 2005.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-606. Grants and loans to private persons

85-1-606. Grants and loans to private persons.
(1) To encourage the construction and development of water-related projects, the department may make grants and loans to private persons from funds appropriated from the natural resources projects state special revenue account established in 15-38-302 and may make loans to private persons from the renewable resource loan proceeds account.
(2) The department shall publicize the statutes and rules governing grants and loans to private persons for water-related projects, set and publicize application deadlines, and accept applications for grants and loans.
(3) The department shall review, evaluate, and select the water-related projects for which grants or loans may be awarded.
History: En. Sec. 7, Ch. 505, L. 1981; amd. Sec. 38, Ch. 298, L. 1983; amd. Sec. 14, Ch. 478, L. 1993; amd. Sec. 17, Ch. 432, L. 2007.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-608. Applications for grants and loans to private persons

85-1-608. Applications for grants and loans to private persons.
(1) A private person may apply for a grant or loan to finance a water-related project to be constructed, developed, and operated in Montana.
(2) An application for a loan or grant must be in the form prescribed by rule and contain or be accompanied by any information necessary to adequately describe the proposed project and necessary for evaluation of the proposed project under the criteria set out in 85-1-609 and 85-1-610.
History: En. Sec. 9, Ch. 505, L. 1981; amd. Sec. 15, Ch. 478, L. 1993.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-609. Eligibility for a loan or grant to a private person

85-1-609. Eligibility for a loan or grant to a private person.
The department may not award a grant or loan to a private person unless the department finds, based on the application and the department's investigation and evaluation of the proposal, that:
(1) the proposed water-related project:
(a) will promote, enhance, or advance the purpose, policies, and objectives of the renewable resource grant and loan program;
(b) will be constructed, developed, and operated within the state of Montana;
(c) will be economically feasible. (A project is economically feasible if the project benefits exceed the project costs. The department shall consider only quantifiable benefits and costs in calculating economic feasibility.)
(d) will be an efficient use of natural resources, including water, energy, land, and air. (An efficient use is one that minimizes waste.)
(e) will provide multipurpose facilities to the extent practicable;
(f) will comply with statutory and regulatory standards protecting the quality of resources such as air, water, land, fish, wildlife, and recreational opportunities;
(g) will provide associated public benefits in addition to any private benefits the project may provide; and
(h) is needed to accomplish the purpose for which the project is proposed;
(2) the applicant has adequate financial resources to construct, operate, and maintain the project. The department shall consider financial resources from any source for which the applicant has qualified, including a renewable resource grant or loan.
(3) the applicant holds or can acquire all necessary lands, other than public lands, and interests in the lands and water rights necessary for the construction, operation, and maintenance of the proposed project;
(4) if the application is for a loan, the applicant is creditworthy and able and willing to enter into a contract with the department for loan repayment and construction or development of the proposed project; and
(5) if the application is for a grant, the applicant is able and willing to enter into a contract with the department for construction or development of the proposed project.
History: En. Sec. 10, Ch. 505, L. 1981; amd. Sec. 16, Ch. 478, L. 1993.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-610. Evaluation of grants and loans to private persons

85-1-610. Evaluation of grants and loans to private persons.
The department shall consider the following criteria and preferences in evaluating applications and selecting the recipients of grants and loans for water-related projects that are eligible for funding under 85-1-609:
(1) The extent and desirability of the public benefits that will be provided must be considered.
(2) A water-related project that will be used as part of a family farm must be given preference. A family farm is one devoted primarily to agriculture under the ownership and operation of a resident Montana family.
(3) A water-related project that will utilize or develop water reserved under 85-2-316 must be given preference.
(4) The department, to the extent practicable, shall attempt to achieve geographic balance in the promotion of renewable resource grant and loan projects through the awarding of loans and grants to private persons.
(5) The extent to which the project will effectively utilize water resources and promote the conservation and efficient use of the water resource must be evaluated and considered.
(6) Projects that could not be accomplished without the assistance of a loan or grant must be given preference.
(7) The department shall give due consideration to any other factor that, in the department's judgment, is important to the evaluation of the project in light of the purposes, policies, and objectives of the renewable resource grant and loan program.
History: En. Sec. 11, Ch. 505, L. 1981; amd. Sec. 12, Ch. 512, L. 1985; amd. Sec. 17, Ch. 478, L. 1993.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-611. Department to solicit views

85-1-611. Department to solicit views.
The department shall solicit and consider in its evaluation of proposed projects the views of interested and affected departments, boards, agencies, commissions, and other subdivisions of the state, including local political subdivisions, of a tribal government, of the federal government, and of other interested and affected persons.
History: En. Sec. 12, Ch. 505, L. 1981; amd. Sec. 18, Ch. 478, L. 1993; amd. Sec. 5, Ch. 436, L. 1997.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-612. Rulemaking authority

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; and
(6) specifying any other procedures necessary to accomplish the objectives of the renewable resource grant and loan program.
History: En. Sec. 13, Ch. 505, L. 1981; amd. Sec. 19, Ch. 478, L. 1993.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-613. Limits on loans

85-1-613. Limits on loans.
(1) A loan to a private person that is not a water users' association or ditch company organized and incorporated pursuant to Title 35, chapter 14, or Title 85, chapter 6, part 1, for a renewable resource grant and loan program project may not be made from the natural resources projects state special revenue account established in 15-38-302 or the renewable resource loan proceeds account if the loan exceeds the lesser of $400,000 or 80% of the fair market value of the security given for the project. In determining the fair market value for the security given for a loan, the department shall consider appraisals made by qualified appraisers and other factors that it considers important.
(2) A loan to a private person that is a water users' association or ditch company organized and incorporated pursuant to Title 35, chapter 14, or Title 85, chapter 6, part 1, may not be made from the natural resources projects state special revenue account established in 15-38-302 or the renewable resource loan proceeds account if the loan would exceed the lesser of $3 million or an amount representing the annual debt service on the loan that would exceed 80% of the annual net revenue of the system that would be pledged for payment of the loan. In determining the amount of annual net revenue that may be pledged for payment of the loan, annual expenses for operation and maintenance must be subtracted from the gross revenue of the system.
(3) A loan to the state, a local government, or a tribal government for a renewable resource grant and loan program project may not be made by the department from the natural resources projects state special revenue account established in 15-38-302 or renewable resource loan proceeds account if the loan exceeds the project sponsor's remaining debt capacity.
(4) The period for repayment of loans may not exceed 30 years.
(5) The interest rate at which loans may be made under this part must be sufficient to:
(a) cover the bond debt service for a loan; and
(b) establish and maintain a loan loss reserve fund to be used for bond debt service if a loan loss occurs.
(6) A loan made under this part may not be used for the cost of operation and maintenance of a project.
History: En. Sec. 14, Ch. 505, L. 1981; amd. Sec. 4, Ch. 149, L. 1983; amd. Sec. 39, Ch. 298, L. 1983; amd. Sec. 4, Ch. 491, L. 1989; amd. Sec. 20, Ch. 478, L. 1993; amd. Sec. 2, Ch. 332, L. 1997; amd. Sec. 6, Ch. 436, L. 1997; amd. Sec. 1, Ch. 418, L. 2005; amd. Sec. 18, Ch. 432, L. 2007; amd. Sec. 268, Ch. 271, L. 2019; amd. Sec. 2, Ch. 541, L. 2023.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-614. Limits on grants from natural resources projects state special revenue account

85-1-614. Limits on grants from natural resources projects state special revenue account.
(1) The maximum grant awarded to a private person may not exceed the lesser of:
(a) 5% of the estimated total funds potentially available in the natural resources projects state special revenue account established in 15-38-302 for public and private grants in the biennium in which the grant will be made; or
(b) 50% of the total project cost.
(2) This part does not limit the amount of grant funds that may be appropriated by the legislature to fund a state or local government project.
History: En. Sec. 15, Ch. 505, L. 1981; amd. Sec. 40, Ch. 298, L. 1983; amd. Sec. 21, Ch. 478, L. 1993; amd. Sec. 19, Ch. 432, L. 2007; amd. Sec. 3, Ch. 341, L. 2017.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-615. Security interests -- purchase, operation, and resale of encumbered property

85-1-615. Security interests -- purchase, operation, and resale of encumbered property.
(1) The state has a lien upon a project constructed with money from the natural resources projects state special revenue account established in 15-38-302 or the renewable resource loan proceeds account for the amount of the loan and interest due the state. This lien may attach to any project facilities, equipment, easements, real property, shares of stock in a water users' association, revenue of a water users' association, accounts receivable of a water users' association, water purchase agreements, and property of any kind or nature owned by the debtor, including all water rights. The department shall file with the county clerk and recorder of each county in which a part of the project is located either a financing statement or a real estate mortgage covering the loan, its amount, terms, and a description of the security. The county clerk and recorder shall record and index the lien as other liens are required by law to be recorded and indexed. The lien is valid until paid in full or otherwise discharged. The lien must be foreclosed in accordance with applicable state law governing foreclosure of mortgages and liens.
(2) From the funds available under 15-38-301, 85-1-603, or 85-1-617, the state may:
(a) purchase a lien that is prior to the state's lien if:
(i) the director of the department determines that the loan is in default and the prospects for collecting the loan may be materially increased by purchasing the prior lien; and
(ii) the amount to be paid for the prior lien does not exceed the appraised value of the property;
(b) operate property that is subject to the state's lien if the director of the department determines that the loan is in default and that the prospects for collecting the loan may be materially increased by operating the property that is subject to the state's lien; or
(c) purchase a prior lien as provided in subsection (2)(a) and operate property as provided in subsection (2)(b).
(3) Any property acquired under the provisions of this section must be resold as expeditiously as possible to recover funds used under this section and funds loaned to the borrower.
History: En. Sec. 16, Ch. 505, L. 1981; amd. Sec. 41, Ch. 298, L. 1983; amd. Sec. 5, Ch. 491, L. 1989; amd. Sec. 22, Ch. 478, L. 1993; amd. Sec. 3, Ch. 332, L. 1997; amd. Sec. 76, Ch. 7, L. 2001; amd. Sec. 20, Ch. 432, L. 2007; amd. Sec. 13, Ch. 351, L. 2017.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-616. Administration of loans and grants

85-1-616. Administration of loans and grants.
The department shall:
(1) administer the loan and grant program established by this part;
(2) service loans made or contract and pay for the servicing of loans, including arrangements for obtaining security interests; and
(3) collect reasonable fees or charges for the servicing of loans, including arrangements for obtaining security interests. The fees and charges must be deposited in the natural resources projects state special revenue account established in 15-38-302.
History: En. Sec. 17, Ch. 505, L. 1981; amd. Sec. 5, Ch. 149, L. 1983; amd. Sec. 48, Ch. 281, L. 1983; amd. Sec. 23, Ch. 478, L. 1993; amd. Sec. 21, Ch. 432, L. 2007.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-618. Restrictions on use of bond proceeds

85-1-618. Restrictions on use of bond proceeds.
Renewable resource bond proceeds may be used only for the purpose of making loans as provided in the renewable resource grant and loan program or for purchasing liens and operating property as provided in 85-1-615.
History: En. Sec. 19, Ch. 505, L. 1981; amd. Sec. 7, Ch. 491, L. 1989; amd. Sec. 25, Ch. 478, L. 1993.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-619. Debt service fund -- pledge and administration of sufficient balance

85-1-619. Debt service fund -- pledge and administration of sufficient balance.
(1) The legislature may levy, impose, assess, and pledge and appropriate to the renewable resource loan debt service fund any tax, charge, fee, rental, or other income from any designated source. The state reserves the right to modify from time to time the nature and amount of special taxes and other revenue pledged and appropriated to the renewable resource loan debt service fund, provided that the aggregate resources so pledged and appropriated are determined by the legislature to be sufficient for the prompt and full payment of the principal of and interest and redemption premiums when due on all bonds payable from that fund and provided that the pledge of the full faith and credit and taxing powers of the state for the security of all bonds is and remains irrevocable until they are fully paid.
(2) Money in the renewable resource loan debt service fund must be used to pay interest, principal, and redemption premiums when due and payable with respect to renewable resource bonds, and for bonds issued prior to 1985, to accumulate a reserve for the further security of the payments.
(3) After the reserve provided for in subsection (2) for bonds issued prior to 1985 has been accumulated in the renewable resource loan debt service fund, money at any time received in the renewable resource loan debt service fund in excess of that amount must be transferred by the treasurer to the natural resources projects state special revenue account.
History: En. Sec. 20, Ch. 505, L. 1981; amd. Sec. 43, Ch. 298, L. 1983; amd. Sec. 14, Ch. 512, L. 1985; amd. Sec. 26, Ch. 478, L. 1993; amd. Sec. 116, Ch. 2, L. 2009.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-620. Renewable resource refunding bonds

85-1-620. Renewable resource refunding bonds.
(1) The board of examiners may issue refunding bonds at times and in amounts, if any, as may be necessary to pay principal or interest due that cannot be paid from funds then on hand in the renewable resource loan debt service fund. The board of examiners may also issue refunding bonds to refund outstanding bonds before maturity for the purpose of extending the maturities of the outstanding bonds determined by the board of examiners to be necessary to assure that the funds then pledged to the renewable resource loan debt service fund will be sufficient for payment of principal and interest due in subsequent years. The board of examiners may also issue refunding bonds to refund outstanding bonds before maturity for the purpose of reducing the interest cost or the total amount of principal and interest payable on the outstanding bonds.
(2) Refunding bonds may not be issued and sold more than 3 months before all of the bonds refunded mature or are called for redemption unless the proceeds of the refunded bonds, with any other funds in the renewable resource loan debt service fund that are needed and available for the purpose or securities purchased from proceeds and other funds, are deposited with a suitable banking institution within or outside the state, in escrow, for the retirement of the refunded bonds at maturity or at a prior date or dates on which they have been called for redemption in accordance with their terms, in an amount and in a manner sufficient under the provisions securing the refunded bonds, so that the state's obligation to pay the same, from sources other than the escrow fund, is discharged.
(3) New debt may not be created by the issuance of refunding bonds in accordance with this section, but the refunding bonds must evidence the debt previously created and must be secured by the pledge of the full faith and credit and taxing powers of the state and secured in the same manner as the bonds refunded by other provisions of this part.
History: En. Sec. 21, Ch. 505, L. 1981; amd. Sec. 44, Ch. 298, L. 1983; amd. Sec. 27, Ch. 478, L. 1993.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-621. Report

85-1-621. Report.
The department shall prepare a biennial report describing the status of the renewable resource grant and loan program. The report must describe ongoing projects and projects that have been completed during the biennium. The report must identify and rank in order of priority the projects for which the department has received applications. The report must also describe proposed projects and activities for the coming biennium and recommendations for necessary appropriations. A copy of the report must be submitted to the water policy interim committee in accordance with 5-11-210.
History: En. Sec. 22, Ch. 505, L. 1981; amd. Sec. 19, Ch. 573, L. 1985; amd. Sec. 58, Ch. 112, L. 1991; amd. Sec. 49, Ch. 349, L. 1993; amd. Sec. 28, Ch. 478, L. 1993; amd. Sec. 71, Ch. 545, L. 1995; amd. Sec. 8, Ch. 122, L. 2015; amd. Sec. 116, Ch. 261, L. 2021.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-622. Penalty

85-1-622. Penalty.
A member, officer, attorney, or other employee of the board or the department may not, directly or indirectly, be the beneficiary of or receive any fee, commission, gift, or other consideration for or in connection with any transaction or business under this part other than the salary, fee, or other compensation that the person may receive as a member, officer, attorney, or employee. A person convicted of violating any provision of this section shall be punished by a fine not to exceed $2,000 or be imprisoned for not to exceed 2 years, or both.
History: En. Sec. 23, Ch. 505, L. 1981; amd. Sec. 2754, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-623. Repealed

85-1-623. Repealed.
Sec. 3, Ch. 437, L. 1995.
History: En. Sec. 1, Ch. 507, L. 1981; amd. Sec. 45, Ch. 298, L. 1983; amd. Sec. 15, Ch. 512, L. 1985; amd. Sec. 8, Ch. 491, L. 1989; amd. Sec. 29, Ch. 478, L. 1993.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-624. Authorization of bonds

85-1-624. Authorization of bonds.
The board of examiners is authorized to issue and sell general obligation renewable resource bonds for the renewable resource grant and loan program created under Title 85, chapter 1, part 6, in accordance with the terms and conditions and in the manner provided in 85-1-617 from time to time and in amounts that, taking into consideration the principal amount of any renewable resource bonds then outstanding, will not cause the total aggregate principal amount of renewable resource bonds outstanding at any time to exceed $30 million.
History: En. Sec. 1, Ch. 437, L. 1995; amd. Sec. 1, Ch. 14, L. 1999; amd. Sec. 1, Ch. 113, L. 2003.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-631. Water storage state special revenue account created -- revenues allocated -- appropriations from account

85-1-631. Water storage state special revenue account created -- revenues allocated -- appropriations from account.
(1) There is a water storage state special revenue account within the state special revenue fund established in 17-2-102.
(2) There must be paid into the water storage state special revenue account:
(a) for the biennium beginning July 1, 2007, the proceeds of the resource indemnity and ground water assessment tax as provided in 15-38-106; and
(b) money allocated from the resource indemnity trust fund interest earnings pursuant to 15-38-202 and all revenue of the works and other money as provided in 85-1-332.
(3) All revenue provided from 85-1-332(1)(e) and (1)(f) deposited in the water storage state special revenue account must be appropriated solely for the construction, operation, rehabilitation, expansion, maintenance, and modification of state-owned water storage projects.
(4) Money that was not encumbered or expended from the water storage state special revenue account during the previous biennium must remain in the account.
(5) Deposits to the water storage state special revenue account must be placed in short-term investments and accrue interest, which must be deposited in the water storage state special revenue account.
(6) The purpose of the water storage state special revenue account is to provide money exclusively for construction, operation, rehabilitation, expansion, maintenance, and modification of state-owned water storage projects.
History: En. Sec. 8, Ch. 659, L. 1991; amd. Sec. 30, Ch. 478, L. 1993; amd. Sec. 9, Ch. 144, L. 1999; amd. Sec. 22, Ch. 432, L. 2007.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 6. Renewable Resource Grant and Loan Program › 85-1-632. Exemption from environmental review

85-1-632. Exemption from environmental review.
The department is exempt from the provisions of Title 75, chapter 1, parts 1 and 2, when authorizing grants, loans, or bonds related to conservation, reclamation, and renewable resource activities pursuant to this part.
History: En. Sec. 3, Ch. 116, L. 2023.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 7. Water Storage Policy › 85-1-702. Purpose

85-1-702. Purpose.
The purpose of this part is to define the role of water storage in solving water management problems and, if water storage projects provide the best solutions to those problems, to facilitate the development of the projects.
History: En. Sec. 2, Ch. 659, L. 1991.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 7. Water Storage Policy › 85-1-703. Water storage policy

85-1-703. Water storage policy.
(1) The legislature recognizes that water resource needs are growing, existing water facilities are aging and in need of repair, and new water storage projects have become more difficult to complete. Other types of action will be needed to solve many emerging problems, but if water storage is the best way to meet growing water needs and solve problems, then it should be actively pursued.
(2) In determining the best solution for a particular water management problem, the state shall:
(a) carefully define the problem;
(b) identify all options to solve the problem, including water storage;
(c) determine whether water is physically and legally available to solve the problem; and
(d) select the option that best meets the following criteria:
(i) technical feasibility;
(ii) financial feasibility;
(iii) economic feasibility;
(iv) political feasibility;
(v) legal feasibility; and
(vi) environmental feasibility.
History: En. Sec. 3, Ch. 659, L. 1991.
2023 Montana Code Annotated › Title 85. Water Use › Chapter 1. Water Resources › Part 7. Water Storage Policy › 85-1-704. Prioritization of water storage projects -- governor's report

85-1-704. Prioritization of water storage projects -- governor's report.
(1) The governor shall submit to the legislature a report in accordance with 5-11-210 identifying specific water storage projects proposed for development, including the rehabilitation of existing projects and new project proposals. The report must contain:
(a) a list of water storage project priorities;
(b) an implementation strategy for each priority project that identifies the resources (including specific budget requests), government actions, and other actions needed to accomplish the project; and
(c) a progress report on the development of water storage projects during the previous 2 years.
(2) In setting priorities among new water storage projects, the governor shall consider whether a project:
(a) solves a severe water problem;
(b) provides multiple uses and benefits;
(c) provides for public uses;
(d) shows strong evidence of broad citizen support;
(e) is able to obtain nonstate sources of funding;
(f) protects and seeks to enhance social, ecological, cultural, and aesthetic values;
(g) improves local and state economic development;
(h) could resolve Indian and federal reserved water rights issues;
(i) supports water conservation activities; and
(j) promotes the use of water reserved under Montana law.
(3) In setting priorities among water storage rehabilitation projects, the governor shall consider whether the project:
(a) is needed to protect public safety;
(b) has impacts if not repaired or rehabilitated; and
(c) accomplishes the goals listed in subsections (2)(a) through (2)(j).
(4) In establishing budget priorities for the allocation of state water storage development funds:
(a) first preference must be given to projects that resolve threats to life and property posed by high-hazard facilities that are in an unsafe condition;
(b) second preference must be given to projects that improve or expand existing water storage facilities; and
(c) third preference must be given to the planning and construction of new water storage facilities.
History: En. Sec. 4, Ch. 659, L. 1991; amd. Sec. 117, Ch. 261, L. 2021.