Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                               SB 237.1
                                                 SENATE BILL NO. 237
                            INTRODUCED BY S. VANCE, S. GUNDERSON, J. WELBORN
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  A BILL FOR AN ACT ENTITLED: “AN ACT REVISING LAWS RELATED TO WATER QUALITY; REQUIRING
  THAT DEVELOPMENT PLANS BE APPROVED BY THE DEPARTMENT OF ENVIRONMENTAL QUALITY
  BEFORE ADDITIONAL CONNECTIONS TO PUBLIC WATER AND WASTEWATER SYSTEMS MAY BE
  AUTHORIZED; REQUIRING THE APPROVAL OF A DEVELOPMENT PLAN BEFORE THE APPROVAL OF
  CERTAIN SUBDIVISIONS; PROVIDING RULEMAKING AUTHORITY; REVISING A DEFINITION; AMENDING
  SECTIONS 75-6-104, 75-6-108, 76-3-507, AND 76-4-102, MCA; AND PROVIDING AN IMMEDIATE
  EFFECTIVE DATE.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          NEW SECTION. Section 1.          Development plans -- department requirements -- rulemaking. (1)
  Unless authorized by a development plan approved by the department of environmental quality under this
  section, a public water or wastewater supply system may not certify or authorize additional connections to its
  water or wastewater system that would exceed its approved rated capacity.
          (2)       The department may approve a municipal development plan to allow additional connections to
  a public water or wastewater supply system if the municipality demonstrates that:
          (a)       the additional connections will not exceed the approved rated capacity of the system;
          (b)       the additional connections will not create a risk to public health or the environment; and
          (c)       the plan will not cause a violation of any provision of or rule adopted under this part or Title 75,
  chapter 5 or 6, or any condition or requirement of an approval or order issued pursuant to this part or Title 75,
  chapter 5 or 6.
          (3)       A municipality with a development plan approved under this section shall submit an annual
  report detailing its compliance with the approved plan to the department.
          (4)       A development plan approved under this section may be used by the department to approve
  connections that would exceed the system’s approved rated capacity only if the connection would serve a
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68th Legislature 2023                                                                                               SB 237.1
  subdivision subject to review under Title 76, chapter 3, and the governing body has required department
  certification before final plat approval in accordance with 76-3-507(5).
          (5)         The department may revoke or require modification of an approved development plan if:
          (a)         the conditions of development have fundamentally changed;
          (b)         the municipality has violated the requirements of this section or a condition of an approved
  development plan; or
          (c)         the department otherwise determines that the conditions of subsection (2) have not been or will
  not be satisfied.
          (6)         A municipality that violates this section or a condition of an approved development plan is
  subject to penalties under 75-6-114.
          (7)         The department may adopt rules to implement this section.
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          NEW SECTION. Section 2.           Development plans -- exceptions. (1) A reviewing authority may not
  approve a subdivision under this chapter that is subject to a development plan approved under [section 1]
  unless the subdivision is subject to the provisions of Title 76, chapter 3, and the governing body has required
  department certification before final plat approval pursuant to 76-3-507(5).
          (2)         A certifying authority may not certify that a division under 76-4-125(1)(d) will be served by
  adequate municipal facilities pursuant to a development plan approved under [section 1] unless the division is
  subject to the provisions of Title 76, chapter 3, and the governing body has required department certification
  before final plat approval pursuant to 76-3-507(5).
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          Section 3. Section 75-6-104, MCA, is amended to read:
          "75-6-104.      Duties of department. (1) The department has general supervision over all state waters
  that are directly or indirectly being used by a person for a public water supply system, for domestic purposes, or
  as a source of ice.
          (2)         The department shall, subject to the provisions of 75-6-116 and as provided in 75-6-131, adopt
  rules and standards concerning:
          (a)         maximum contaminant levels for waters that are or will be used for a public water supply
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68th Legislature 2023                                                                                              SB 237.1
  system;
            (b)     fees, as described in 75-6-108, for services rendered by the department;
            (c)     monitoring, recordkeeping, and reporting by persons who own or operate public water supply
  systems;
            (d)     requiring public notice to all users of a public water supply system when a person has been
  granted a variance or exemption or is in violation of this part or a rule or order issued pursuant to this part;
            (e)     the siting, construction, operation, and modification of a public water supply system or public
  sewage system, including requirements to remedy:
            (i)     defects in the design, operation, or maintenance of a public water supply system or public
  sewage system in order to prevent or correct introduction of contamination into water used for a public water
  supply system, for domestic purposes, or as a source of ice;
            (ii)    fecal contamination in water used by a public water supply system; or
            (iii)   failure or malfunction of the sources, treatment, storage, or distribution portion of a public water
  supply system in order to prevent or correct introduction of contamination into water used for a public water
  supply system, for domestic purposes, or as a source of ice;
            (f)     the review of the technical, managerial, and financial capacity of a proposed public water
  supply system or public sewage system, as necessary to ensure the capability of the system to meet the
  requirements of this part;
            (g)     the collection and analysis of samples of water used for drinking or domestic purposes;
            (h)     the issuance of variances and exemptions as authorized by the federal Safe Drinking Water Act
  and this part;
            (i)     administrative enforcement procedures and administrative penalties authorized under this part;
            (j)     standards and requirements for the review and approval of programs that may be voluntarily
  submitted by suppliers of public water supply systems to prevent water supply contamination from a cross-
  connection, including provisions to exempt cross-connections from the standards and requirements if all
  connected systems are department-approved public water supply systems;
            (k)     (i) allowable uses of reclaimed wastewater and classification of those uses;
            (ii)    treatment, monitoring, recordkeeping, and reporting standards and requirements tailored to
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68th Legislature 2023                                                                                               SB 237.1
  each classification that must be met by the public sewage system to protect the uses of the reclaimed
  wastewater and any receiving water;
           (iii)    prohibition of reclaimed wastewater uses that are not allowable under subsection (2)(k)(i) or for
  which the reclaimed wastewater has not been treated in compliance with rules adopted under subsection
  (2)(k)(ii); and
           (iv)     a requirement that an applicant who proposes to use reclaimed wastewater pursuant to this
  subsection (2)(k) has obtained any necessary authorizations required under Title 85 from the department of
  natural resources and conservation; and
           (l)      any other requirement necessary for the protection of public health as described in this part.
           (3)      Department rules must provide for the following:
           (a)      except as provided in 75-6-131, a water supply or water distribution facility reviewed and
  approved by the department is not subject to changes in department design and construction criteria for a
  period of 36 months after written approval of the facility is issued by the department;
           (b)      except for facilities subject to permit requirements under Title 75, chapter 5, part 4, and except
  as provided under rules adopted pursuant to 75-6-131, a system of water supply, drainage, wastewater, or
  sewage reviewed and approved under this section is not subject to changes in department design or
  construction criteria for a period of 36 months after written approval is issued by the department;
           (c)      plans and specifications for a portion of a facility or system subject to a 36-month limit on
  criteria changes pursuant to subsections (3)(a) and (3)(b) but not constructed within the 36-month timeframe
  must be resubmitted for department review and approval before construction of that portion of the facility;
           (d)      the provisions of this subsection (3) may not limit an applicant's ability to alter a proposed
  project that is otherwise in conformance with applicable laws, rules, standards, and criteria; and
           (e)      department approval of development plans for a municipal system that allows additional
  connections above the approved rated capacity of a water or wastewater system pursuant to [section 1].
           (4)      The department or the board may issue orders necessary to fully implement the provisions of
  this part.
           (5)      The department shall:
           (a)      upon on its own initiative or complaint to the department, to the mayor or health officer of a
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68th Legislature 2023                                                                                             SB 237.1
  municipality, or to the managing board or officer of a public institution, make an investigation of alleged pollution
  of a water supply system and, if required, prohibit the continuance of the pollution by ordering removal of the
  cause of pollution;
          (b)      have waters examined to determine their quality and the possibility that they may endanger
  public health;
          (c)      consult and advise authorities of cities and towns and persons having or about to construct
  systems for water supply, drainage, wastewater, and sewage as to the most appropriate source of water supply
  and the best method of ensuring its quality;
          (d)      advise persons as to the best method of treating and disposing of their drainage, sewage, or
  wastewater with reference to the existing and future needs of other persons and to prevent pollution;
          (e)      consult with persons engaged in or intending to engage in manufacturing or other business
  whose drainage or sewage may tend to pollute waters as to the best method of preventing pollution;
          (f)      collect fees, as described in 75-6-108, for services and deposit the fees collected in the public
  drinking water special revenue fund established in 75-6-115;
          (g)      establish and maintain experiment stations and conduct experiments to study the best methods
  of treating water, drainage, wastewater, and sewage to prevent pollution, including investigation of methods
  used in other states;
          (h)      enter on premises at reasonable times to determine sources of pollution or danger to water
  supply systems and whether rules and standards of the department are being obeyed;
          (i)      enforce and administer the provisions of this part;
          (j)      establish a plan for the provision of safe drinking water under emergency circumstances;
          (k)      maintain an inventory of public water supply systems and establish a program for conducting
  sanitary surveys;
          (l)      enter into agreements with local boards of health whenever appropriate for the performance of
  surveys and inspections under the provisions of this part; and
          (m)      review in the form of a written response within 60 days to an applicant seeking approval for use
  of reclaimed wastewater for snowmaking subject to subsection (2)(k) that:
          (i)      approves, approves with conditions, or denies the application pursuant to the provisions of this
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68th Legislature 2023                                                                                           SB 237.1
  part; and
          (ii)     (A) describes additional information that must be submitted prior to department approval under
  subsection (5)(m)(i); or
          (B)      describes any additional requirements that the applicant must satisfy prior to department
  approval under subsection (5)(m)(i), such as a permit to discharge under Title 75, chapter 5, part 4, or an
  authorization under Title 85 from the department of natural resources and conservation."
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          Section 4. Section 75-6-108, MCA, is amended to read:
          "75-6-108.    Department to prescribe fees -- opportunity for appeal. (1) The department shall by
  rule prescribe fees to be assessed annually on owners of public water supply systems to recover department
  costs in providing services under this part. The annual fee for a public water supply system is no more than
  $2.25 for each service connection to the public water supply system for the biennium beginning July 1, 1991,
  and ending June 30, 1993, and thereafter is no more than $2 for each service connection to the public water
  supply system, although the minimum fee for any system is $100, except that the fee for a transient
  noncommunity water system is $50.
          (2)      Public water supply systems in a municipality may raise the rates to recover costs associated
  with the fees prescribed in this section without the public hearing required in 69-7-111.
          (3)      The department shall by rule prescribe fees assessed on persons who submit plans and
  specifications or development plans for construction, alteration, or extension of a public water supply system or
  public sewage system. The fees must be commensurate with the cost to the department of reviewing the plans
  and specifications.
          (4)      Fees collected pursuant to this section must be deposited in the public drinking water special
  revenue fund established in 75-6-115.
          (5)      (a) The department shall notify the owner of a public water supply system in writing of the
  amount of the fee to be assessed and the basis for the assessment. The owner may appeal the fee
  assessment in writing to the board within 20 days after receipt of the written notice.
          (b)      An appeal must be based on the allegation that the fee is erroneous or excessive. An appeal
  may not be based only on the fee schedule adopted by the department.
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68th Legislature 2023                                                                                               SB 237.1
          (c)      If any part of the fee assessment is not appealed, it must be paid to the department upon on
  receipt of the notice provided for in subsection (5)(a)."
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          Section 5. Section 76-3-507, MCA, is amended to read:
          "76-3-507.     Provision for security requirements to ensure construction of public improvements.
  (1) Except as provided in subsections (2) and (4), the governing body shall require the subdivider to complete
  required improvements within the proposed subdivision prior to the approval of the final plat.
          (2)      (a) In lieu of the completion of the construction of any public improvements prior to the approval
  of a final plat, the governing body shall at the subdivider's option allow the subdivider to provide or cause to be
  provided a bond or other reasonable security, in an amount and with surety and conditions satisfactory to the
  governing body, providing for and securing the construction and installation of the improvements within a period
  specified by the governing body and expressed in the bonds or other security. The governing body shall reduce
  bond or security requirements commensurate with the completion of improvements.
          (b)      In lieu of requiring a bond or other means of security for the construction or installation of all the
  required public improvements under subsection (2)(a), the governing body may approve an incremental
  payment or guarantee plan. The improvements in a prior increment must be completed or the payment or
  guarantee of payment for the costs of the improvements incurred in a prior increment must be satisfied before
  development of future increments.
          (3)      Approval by the gover