Bill would let county water and sewer districts use DEQ development plans to sell future capacity

Representative Courtney Sprunger described House Bill 534 as an optional tool for county water and sewer districts to manage growth by using DEQ‑approved development plans to sell advanced system capacity to approved projects that have completed engineering and subdivision review.

DEQ witnesses and public‑health proponents said the provision mirrors a municipal program introduced in 2023 and would be applied carefully: districts would be accepted into a development plan process, must provide annual reports to DEQ, and DEQ would monitor engineering, treatment and the district’s progress on promised capacity. Lindsey Krivaruchka said DEQ would treat districts and municipalities consistently under the proposed change.

Developers and engineers who testified said the ability to obtain a will‑serve letter tied to an approved development plan can unblock financing: a developer who must invest in a booster pump, for example, needs assurance that the system will accept the connection. Proponents said expansion costs should be borne by developers using the capacity, not by existing ratepayers.

Opponents — including Citizens for a Better Flathead and ratepayer witnesses — sought amendments to require greater transparency, comprehensive capital improvement plans, explicit financial reporting, and guarantees that DEQ can enforce compliance for nonmunicipal districts. Testimony emphasized Lakeside County Water and Sewer District as a local example of existing commitments that opponents say exceed current capacity.

DEQ staff said the program is voluntary, that DEQ’s focus is on treatment and engineering compliance rather than cost allocation, and that the department would revoke plans if a district failed to meet milestones. The sponsor closed asking for a green vote while inviting amendments to strengthen protections.