House panel scales back renewable resource grants, adds voluntary local-match ranking

Representative Jay Fitzpatrick, sponsor of House Bill 6, told the House committee that updated revenue information forced a major reduction in the bill's scope and prompted an amendment that removed a mandatory capital reserve requirement while establishing voluntary local-match ranking criteria.

The amendment and the bill drew debate about how to prioritize limited state funds. Fitzpatrick said the budget office discovered the bill's revenue estimate "was incorrect and that it had overstated available revenues by approximately 100%." He said the committee trimmed projects so current funds would cover the first 21 water and wastewater projects and the first 21 irrigation projects on the bill's list.

Why it matters: HB6 would allocate state funds administered by the Department of Natural Resources and Conservation for water supply, wastewater and irrigation projects across the state. Scaling and prioritization decisions will determine which communities receive funding in this biennium.

The committee adopted an amendment (HB006.002.003) that removed language requiring local governments to establish and regularly fund a capital reserve account as a condition of receiving grant funds. Instead, the amendment directs the Department of Natural Resources and Conservation (DNRC) in rulemaking to consider the amount of local match provided and to calculate a match ratio to be used in ranking applications. Fitzpatrick described the approach as voluntary and intended to provide "a level playing field" so smaller communities are not disadvantaged by raw dollar match amounts.

Representative Rosenwigg, a member of subcommittee F, supported the amendment and said it preserves the ranking criteria without forcing a particular action by localities. Representative Cafaro pressed the sponsor to clarify whether the change created a new mandate; Fitzpatrick responded: "There is no requirement that it be done" and repeated that providing a local match would only increase a project's priority in the ranking.

The committee recorded votes for the amendment and for the bill recommendation. On the amendment, the clerk recorded 75 ayes and 25 no votes; later the committee voted to recommend HB6 "do pass," with the clerk recording 100 ayes. Named votes reported during roll calls included Representative Oplander (aye), Representative Cunningham (no on the amendment, later voted aye on the bill recommendation in the record of absentees), Representative Souctis (aye), Representative Tuss (aye) and Representative Oblander (aye) in later recorded absentee tallies.

Clarifying details recorded during the hearing: the sponsor said current funding can cover the first 21 water and wastewater projects (through the town of Ennis on the list) and 21 irrigation projects (terminating with the Sunset Irrigation Project on the list). Fitzpatrick said additional ARPA interest earnings might later provide money to add projects.

The committee's action: amendment HB006.002.003 passed; committee recommended HB6 "do pass." The bill will proceed to further House consideration and any future appropriations adjustments.