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Senate committee hears House Bill 11 to fund water, wastewater and bridge projects from Coal Endowment Program
Summary
Representative John Fitzpatrick told the Senate Finance and Claims committee House Bill 11 would use interest from the Montana Coal Endowment Program to fund water, wastewater and bridge projects. Local officials, including Arlee water managers, urged the committee to reinstate a $327,000 grant cut from the bill.
Representative John Fitzpatrick opened the Senate Finance and Claims hearing on House Bill 11, saying the Montana Coal Endowment Program—funded with interest from the coal severance tax—provides three types of grants, including awards up to $750,000 for local government water and wastewater systems and bridge projects.
The bill sponsor said the House subcommittee made two changes before sending the bill to the Senate: it removed an Arlee water-system project after the applicant did not appear for the subcommittee hearing, and it replaced a withdrawn Petroleum County bridge project with one in Missoula County. Fitzpatrick described the Department of Commerce ranking as appropriate and urged the committee to consider reinstating Arlee.
Galen Stephens, Community Division administrator at the Montana Department of Commerce, and Autumn Coleman, deputy administrator of the Conservation and Resource Development Division at DNRC, testified as proponents and provided handouts and technical details. Coleman said DNRC requested $10,000,000 to support four regional water systems with administrative and project grants (sections 6 and 7 of the bill).
Charles Hedley, general manager of the Arlee Lake County Water and Sewer District, and Mary Stranahan, president of the Arlee Sewer Board, asked the committee to reinstate their $327,000 request for lagoon upgrades, conversion from facultative to aerated treatment, and repairs to manholes and other deferred maintenance that they said has limited community growth and tribal housing development. Hedley said a PER (preliminary engineering review), funded with ARPA dollars, identified needed work and that the district is preparing a maintenance plan and public process for any rate changes.
Committee members questioned whether the fund balance was sufficient and why Petroleum County’s bridge was withdrawn. Fitzpatrick said the fund is "pretty close" to exhausted but that the list covers projects the department prioritized; he said Petroleum County withdrew, likely because it could not meet a 1:1 match requirement. Missoula County’s Chris Lounsbury described a separate bridge project with a 50% local match and replacement costs above $3.74 million.
There were no formal motions or votes during the hearing. Representative Fitzpatrick closed by asking the committee to add the Arlee Water System back into HB 11; the committee then closed the HB 11 hearing.
The committee may amend funding lists or reinstate projects when the bill is considered for amendment or final action.
