Bill would let county water and sewer districts sell planned capacity, supporters say it helps housing

House Bill 534 would allow county water and sewer districts that secure a DEQ‑approved development plan to issue advance “will‑serve” letters and sell system capacity to developers before every connection is occupied.

Proponents’ view

Sponsor Representative Sprunger and DEQ water‑quality staff said the change is voluntary for districts and expands an existing municipal tool. Lindsey Krivaruchka, DEQ’s Water Quality Division administrator, told the committee the development‑plan process is an accountability mechanism: DEQ monitors annual reporting and the district must show progress through design, bidding and construction stages before promised capacity is used. “This bill just expands the development plan opportunity. It doesn't mean they have to apply for it,” Krivaruchka said.

Supporters — including public‑health officials, chambers of commerce and district representatives — said the measure helps rural communities plan funded, staged system expansions, reduces reliance on septic systems and creates a developer‑funded pathway for additional housing capacity. “This will ensure that the cost of expanding services is covered by developers and not the existing rate payers,” one witness said.

Opponents and rate‑payer concerns

Citizens for a Better Flathead, Lakeside residents and Upper Missouri Waterkeeper raised concerns that county water and sewer districts are not regulated the same way as municipalities and that DEQ’s enforcement and oversight authority over districts is limited except when complaints are filed. They urged amendments requiring comprehensive capital improvement plans, clear rate‑payer protections and greater DEQ enforcement language to prevent districts from promising capacity beyond funded or engineered capability.

Key technical points from the hearing

• DEQ said it already has a development‑plan framework for municipalities and would apply that review for districts that opt in. The development plan is intended as an annual accountability instrument tied to design and construction milestones.

• Opponents asked that the bill require district facility plans to be comprehensive (not phased) and requested clarity about DEQ authority to enforce compliance and how districts would finance aging infrastructure while committing capacity to new developments.

• Proponents argued the bill is an optional tool that can facilitate projects where developers are willing to fund specific improvements (for example, a booster pump between tanks) so that new homes rely on centralized treatment rather than septic systems.

No committee vote was recorded in the hearing transcript.