This bill appropriates $10,000,000 from the general fund to the Department of Agriculture and Natural Resources for grants aimed at eligible water, wastewater, storm water, and nonpoint source projects. To qualify for funding, projects must be processed through the Department and included in the state water plan. The bill outlines specific grant limits based on the population served by the systems or municipalities, with varying percentages of funding available depending on the size of the population. For instance, systems serving populations of up to 1,000 can receive up to 80% of project costs, while those serving larger populations have reduced grant percentages and maximum project cost limits.

Additionally, the bill allows for funding above the standard limits for projects that address significant environmental issues, such as drought resiliency and regulatory compliance. Eligible engineering studies related to long-term water availability may receive full funding. The board overseeing the grants has the discretion to deny funding for certain projects, such as lake dredging, that do not align with cost-effective regionalization. The bill also includes provisions for the approval of expenditures and the reversion of unspent funds, and it declares an emergency to ensure the act takes effect immediately upon passage.