The bill revises the Renewable Resource Grant and Loan Program and the Montana Coal Endowment Program by establishing new requirements for local governments seeking funding. Specifically, local governments must create and continuously fund a capital reserve account dedicated to necessary infrastructure improvements, such as water supply and wastewater systems. This account must be established by September 30 of the odd-numbered year before the legislative session in which funding is sought. Additionally, the bill introduces a prioritization system for awarding financial assistance, where projects with a higher ratio of local match to total project cost will be prioritized, alongside considerations for project size, user impact, and the applicant's ability to fund the capital reserve account.

The bill also amends existing sections of the Montana Code Annotated (MCA) to incorporate these new requirements and prioritization criteria. It specifies that applications for grants or loans must be submitted by the project owner, which may include third-party entities. Furthermore, the bill emphasizes that local governments cannot create special districts to fund the capital reserve account and that funds from this account can only be used for projects with an estimated cost of at least $50,000. Overall, the legislation aims to enhance the management and funding of infrastructure projects while ensuring local governments are financially prepared to undertake such initiatives.

Statutes affected:
LC Text: 85-1-605, 90-6-703, 90-6-710
HB0579_1: 85-1-605, 90-6-703, 90-6-710