North Dakota Water Funding 2013 Legislative Session May 13, 2013 NDACo Legislative Wrap-up Jean Schafer – North Dakota Water Coalition

HB State Water Commission Budget $500 million appropriation for projects Devils Lake Projects Outlet Operations Downstream Impacts $10 million $15 million F-M Diversion$100 million General Water Management/ Flood Control$30 million Irrigation$5 million Missouri River Flood Control$3 million MR&I Water Supply Rural Water Municipal Water $55 million $16 million Northwest Area Water Supply$14 million Red River Valley Water Supply$11 million Sheyenne River Flood Control$21 million Souris River Flood Control$61 million Southwest Pipeline Project$79 million Weather Modification$1 million Western Area Water Supply$79 million

HB State Water Commission Budget Conference Committee Amendments: SWC agency funded from the Resources Trust Fund, not the GF Budget Section Requirements Approval to spend additional revenues in the RTF or WDTF Report within 90 days any spending changes made to the water project priority list (new) Requires the SWC report to the Budget Section every six months (new) Added a $40 million loan to Western Area Water from the BND Water Topics interim committee size will be determined by Legislative Management and requires the SWC, the State Engineer and key stakeholders within the state to assist the committee with respect to water projects in developing a schedule of priorities.

HB State Water Commission Budget Conference Committee Amendments: F-M Diversion Amendments: Funds designated by the Legislature for Fargo flood control are available only for levee and dike protection until: Project receives federal authorization Project partnership agreement is executed Federal appropriation is provided for construction Budget for the project is approved by the SWC State Water Commission must enter a cost-sharing agreement with the F-M Diversion Authority prior to expending any state funds for the project State funds may not be used for recreational components of the project (golf courses) or to cost-share with nonfederal entities outside the state

HB State Water Commission Budget F-M Diversion Amendments, continued: An advance funding agreement between Corps and the F-M Diversion Authority must precede any state funding used to advance construction considered to be a federal responsibility Adds intent that the state provide one-half of the local cost-share of a federally authorized project not to exceed $450 million (received $175 M to date) Provided further intent that the remaining $275 million for the project be made available in equal installments over the next four bienniums Limits project construction south of Fargo to ring dikes and levees until after July 1, 2014 Requires the Fargo-Moorhead Area Diversion Authority and the MNDak Upstream Coalition to report to the Budget Section

North Dakota Water Policy SB 2233

SB Water Policy and Goals Development Water Policy Development The legislative assembly declares and establishes the following goals and objectives: 1.Construction of the Mouse River Enhanced Flood Control project 2.Red River Valley Water Supply project is critical to provide a dependable water supply 3.Fargo-Moorhead Flood Control project be completed and implemented 4.Regional water supply and rural water systems are necessary to provide a dependable and adequate quantity and quality water supply for municipal, domestic, rural, and industrial uses 5.SWC and the Southwest Water Authority shall begin the process of reviewing transfer of ownership and of the Southwest Pipeline project from the SWC to the Southwest Water Authority

SB Water Policy and Goals Development Water Policy Development 6.SWC and the Garrison Diversion Conservancy District shall enter discussions with the Bureau of Reclamation concerning Garrison Diversion Unit facilities 7.Projects receiving state funds not assert, claim, or seek to prevent other opportunities, either public or private, to utilize waters of the Missouri River for industrial uses in this state 8.Local water management and flood control projects are necessary for the economic well-being and quality of life in those local areas 9.Irrigation development offers significant opportunities for agriculture in this state

SB Water Policy and Goals Development Infrastructure Revolving Loan Fund 10 percent of the funds deposited in the RTF are made available for making loans for water supply, flood control, or other water development and water management projects in 2015 SWC approves the project and BND administers the loans at 1½ percent plus a ½ percent administrative fee Projects not eligible for State Revolving Fund loans receive priority 10. An Infrastructure Loan Fund for water development and management to will provide significant financial benefits to projects and the citizens of this state, and will provide new capabilities to implement necessary water infrastructure projects across the state

SB Water Policy and Goals Development Western Area Water Authority (WAWS) In addition, the bill restructures the WAWS system oversight and funding by amending several sections of current statute A new provision provides reporting to the Industrial Commission all industrial sales revenues, which will be used to pay off all of the system debts in a designated order A new provision states the Industrial Commission must also approve the industrial water rates set by WAWS A new provision further clarifies the requirements related to state funding: In accepting construction funding, the authority and participating member entities agree to not hinder or prevent depot and lateral industrial water sales for oil and gas exploration and production.

SB Water Policy and Goals Development Western Area Water Authority (WAWS) Default provisions were amended and adds oversight from the State Industrial Commission in regards of default. A new provision provides continued 1926(b) protection for rural and municipal water supply services for WAWS Legislative intent was created for future revenues of the industrial water sales from oil and gas exploration and production be prioritized for use for infrastructure development in oil and gas- impacted areas of the state Requires that both the Independent Water Providers and WAWS to report to the Water Topics Overview Committee on a regular basis throughout the interim

North Dakota Water Policy HB 1440

HB 1440 Extraterritorial Zoning Disputes- Rural vs Municipal Key provisions : Legislative intent recognizes the need for efficient use of funds and avoidance of redundant facilities Annexation triggers a requirement for a water service area plan developed in consultation with other affected water providers, including a district This legislation does not supersede existing agreements A water service agreement is required before the SWC releases funding to the city or the district. Funding not related to potable water, and not in the extraterritorial zoning jurisdiction, is not affected

HB 1440 Extraterritorial Zoning Disputes- Rural vs Municipal Key provisions, continued : If a water service agreement is not executed within 60 days after the water service plan is developed, each party appoints two people to a mediation committee, and the parties jointly retain a mediator If mediation is not successful, either party may request a hearing with an administrative law judge

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