Senate version reduces water-project funding, removes two federally funded FTEs and adds study deadlines

The Appropriations - Education and Environment Division reviewed a Senate draft that trims several House water-project appropriations, removes two federally funded positions, reworks line-of-credit language and adds study and reporting requirements for large water projects.

Committee staff said the Senate adjustments include salary and health-insurance revisions tied to the removal of two federally funded FTEs — an assistant National Flood Insurance Program coordinator and a Risk Map Program Specialist — and a set of multi‑million‑dollar changes across water projects. "Those first 5 changes are related to the removal of those 2 FTE positions," said Alex, staff member.

The discussion matters because the changes affect major infrastructure projects and the state’s flexibility to finance them. The Senate version reduces several House-intended funding levels and redefines some borrowing authority, while asking the Department of Water Resources to deliver earlier study drafts and to expand oversight of large multi‑phase projects.

Key funding adjustments cited by staff include a $228,750,000 reduction from the House version across various water projects and grants; a specific reduction of $30,700,000 from the House amount for the Southwest Pipeline project while providing a $101,000,000 total for that project in the Senate draft; and an additional $650,000 cut in capital assets related to the Devil's Lake outlet.

The Senate also recharacterizes some borrowing and repayment language. The draft identifies $150,000,000 in an authorized Bank of North Dakota line of credit, of which $50,000,000 would be earmarked for the Southwest Pipeline and $100,000,000 for other projects. Staff said the House had proposed $100,000,000 in bonding repaid from pipeline capital repayments, but the Senate removed that bonding language and adjusted line‑of‑credit repayment language.

Several legislative-intent amounts were scaled back in the Senate draft: Red River Valley Water Supply Project intent was reduced from $260,000,000 to $150,000,000; Mouse River flood control from $125,000,000 to $65,000,000; and the House’s $20,000,000 proposal for South Bismarck stormwater and flood control was removed. The Senate retained a mix of project intent numbers for other projects, including listed amounts for Valley City ($13,000,000), Heart River ($7,500,000), Western Area Water Supply ($35,000,000), municipal ($35,000,000) and rural ($55,000,000) water projects.

The committee also discussed transfers and discretionary authority. The House allowed up to $10,000,000 to be transferred between certain line items excluding salaries and the new and vacant FTE pool; the chair proposed reducing that threshold to $5,000,000 and limiting transfers to asset and operating lines. The Senate draft identifies $522,500,000 of carryover for water projects from the House; staff handed out an updated carryover number of $514,100,000.

On studies and reporting, the Department requested language authorizing a field investigation of Missouri River intake sites, with the department to pay any study costs from its discretionary line. The Senate adds reporting deadlines: a State Water Commission study of regional systems governance and finance and a cost‑share policy study are to report to the Water Topics Committee by March 31, 2026 in the Senate draft. Reese, Director, Department of Water Resources, asked for a different pacing: "Rationale for the request is that, we would provide a draft report to water topics at that April date and be able to solicit feedback," and said a June 30 final report date had been discussed.

Committee members voiced a preference for an earlier deadline. Chair, Appropriations - Education and Environment Division, said he preferred March 31 for preliminary and final reports to give Water Topics more time to review: "I'd still prefer the March 31 just because that would give the water topics a bigger window." The committee agreed to keep a $10,000,000 state‑share threshold as a working definition of what constitutes a "large" project subject to enhanced legislative management and study, with the chair noting the figure can be adjusted in conference.

No formal votes were recorded in the transcript of this session; members instructed staff to draft amendment language and to meet again after the floor session to prepare long sheets and amendments for upcoming conference work. Committee scheduling notes: members aimed to have amendments prepared by Friday and to deliver material to the full committee by Monday.

Ending: The committee adjourned after arranging a follow‑up meeting to refine language on study timing, transfer limits and the long sheet amendments.