This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

As used in this subchapter, the following definitions apply unless the context requires otherwise:

(1) "Act" or "RRGL program" means the statutes establishing the Renewable Resource Grant and Loan Program (RRGL) in Title 85, chapter 1, part 6, MCA.

(2) "Applicant" means the following who submit an application under the act, meeting the purposes and policies of the act pursuant to 85-1-601, MCA:

(a) a local governmental or state governmental entity eligible under 85-1-605, MCA;

(b) a tribal government eligible under 85-1-605, MCA; or

(c) a private person that is an individual, association, partnership, corporation, or other governmental entity that is not eligible for loans and grants under 85-1-605, MCA.

(3) "Application" means an application for a renewable resource grant or loan submitted by an applicant in accordance with the act and the rules adopted pursuant to the act.

(4) "Bureau" means the Resource Development Bureau of the Department of Natural Resources and Conservation.

(5) "Conservation" means the promotion of efficient and/or sustainable use of a renewable resource.

(6) "Department" means the Department of Natural Resources and Conservation provided for in Title 2, chapter 15, part 33, MCA.

(7) "Development" means a new beneficial and sustainable use of a renewable resource.

(8) "Director" means the director of the Department of Natural Resources and Conservation as provided for under 2-15-3301, MCA.

(9) "Management" means activities that improve governing entities' ability to control and administer a renewable resource.

(10) "Preservation" means the protection of a renewable resource from pollution, destruction, or neglect.

(11) "Program costs" means nonreimbursable costs not directly related to the project. Program costs include, but are not limited to:

(a) office rent that will be incurred whether or not the project is implemented;

(b) salaries of existing fully funded staff positions unless the work-hours associated with the project are accounted for; or

(c) any other costs that pay for ongoing or general services of the applicant.

(12) "Project costs" means costs that will be incurred only by implementing the project described in the application, and whose funding source is:

(a) RRGL program funds;

(b) matching dollars; or

(c) in-kind contributions.

(13) "Public benefits" means a benefit that accrues to the common well-being, safety, health, or welfare of the citizens of Montana from a renewable resource project including, but not limited to the benefits that accrue to an applicant.

(14) "Public resource" means land, air, water, fish, wildlife, and recreation opportunities.

(15) "Renewable resource" means a sustainable natural resource including water, wind, renewable energy, soil, wetlands, fish and aquatic habitat, wildlife habitat, range land, crop land, and forests.

(16) "Renewable resource grant" means a project grant approved by the Legislature for the enhancement of a renewable resource meeting the objectives of 85-1-602, MCA.

(17) "Renewable resource project" or "project" as used in conjunction with Title 85, chapter 1, part 6, MCA, means any activity or development that conserves, develops, manages, or preserves a renewable resource; and does not result in a long-term adverse impact to land, air, water, fish, wildlife, or recreation opportunities.

(18) "Renewable resource planning grant" means a grant to provided funding for any preliminary or planning activity that would contribute to a renewable resource project as determined by the bureau. Examples include, but are not limited to grants to provide funding for preliminary engineering reports, resource assessments, or technical reports.

(1) An applicant shall submit an application fee with each application.

(a) A governmental or tribal applicant shall pay a $250 nonrefundable application fee for each renewable resource grant, small loan, and/or large loan application submitted.

(b) A private applicant shall pay a $150 nonrefundable application fee for each loan application submitted.

(2) All applications submitted to the bureau must be postmarked on or before May 15 or the next business day if May 15 falls on a Sunday or a federal holiday and post offices are closed. Electronic application submissions will not be accepted.

(1) Governmental, tribal, and private grant and/or loan applicants shall submit applications according to these rules and the guidelines published by the bureau.

(a) Application guidelines may be obtained from, and completed applications must be submitted with supporting documentation to, the Resource Development Bureau, Conservation and Resource Development Division, Department of Natural Resources and Conservation, P.O. Box 201601, 1625 Eleventh Avenue, Helena, MT 59620-1601.

(2) The application requirements for governmental and tribal applicants as described in the guidelines must include at a minimum:

(a) an authorizing statement signed by an authorized representative of the applicant;

(b) a proposal abstract providing a brief project description stating how the project's benefits support the RRGL program purpose;

(c) a renewable resource and public benefits narrative describing how and to what extent a project benefits a renewable resource under the RRGL program pursuant to the purposes of the program stated in 85-1-601, MCA. A project that does not further the state's purposes as stated in 85-1-601(2), MCA, is ineligible for a grant;

(d) a technical narrative documenting the technical feasibility of the project. A project that is not technically feasible is ineligible for a grant or loan;

(e) a project management plan explaining how the project and the grant will be managed. An application that does not demonstrate the applicant's ability to manage the grant project is ineligible for a grant or loan;

(f) a financial feasibility narrative demonstrating that the funding is obtainable to complete the project and that the project can be completed within the proposed budget. A financial feasibility narrative must include:

(i) project costs that will be reimbursed with grant or loan funds; and

(ii) program costs that are not reimbursable costs and may not be included as project costs. An application that does not document financial feasibility is ineligible for a grant or loan;

(g) an environmental narrative and checklist evaluating the potential environmental impact of the project and each project alternative with identification of mitigation measures. An application that does not have a complete environmental narrative and checklist is ineligible for consideration; and

(h) if applicable, a narrative describing how the project will implement the state water plan.

(3) Upon receipt of an application, the bureau will review the application.

(a) An application submitted by a governmental agency must be signed by the agency head. An application is not complete if it is filed without the written authorization of the agency head. If the application is incomplete, it shall be returned to the agency and the fee shall not be returned.

(4) Any application returned under this rule may not be resubmitted in the same cycle in which it was returned.

(1) For each grant cycle, the bureau shall publish with its guidelines the numerical points to be awarded.

(2) Points are awarded and deducted based on the following criteria.

(a) Points must be awarded for renewable resource benefits related to the project. If a project has no renewable resource benefits, it is ineligible for a grant.

(b) Points must be awarded for public benefits. If a project has no public benefits, it is ineligible for a grant.

(c) Tie breaker preference must be given to projects that have an equal score and that:

(i) implement the state water plan priorities; and/or

(ii) will mitigate human health or safety problems.

(d) No points may be awarded for financial feasibility. Points will be deducted for errors or omissions in this section. If a project is determined to not be financially feasible, it is ineligible for a grant.

(e) If a project is determined to have adverse environmental impacts that cannot be mitigated and do not preserve the state's renewable resources per 85-1-601, MCA, it is ineligible for a grant.

(f) No points may be awarded for technical feasibility. Points will be deducted for errors or omissions in this section. If a project is determined to not be technically feasible, it is ineligible for a grant. Technical feasibility includes, but is not limited to:

(i) adequacy of the alternative analysis;

(ii) adequacy of cost estimates for potential alternatives and the preferred alternative;

(iii) preferred alternative selection;

(iv) thoroughness and feasibility of the project's implementation plan and schedules; and

(v) quality of supporting technical data submitted with the application.

(g) Points may be deducted from applications for which there have been past management problems, prior project completion issues, or such other concerns as identified in the published guidelines for the grant cycle. If a management plan is not adequate to support the project, it is ineligible for a grant.

(3) Applications shall be assigned a net ranking score based on the points gained or lost. Once the applications have been ranked, the bureau shall review all of the rankings and shall recommend to the director a funding priority list of all of the applications.

(a) The priority list will be used to determine department funding recommendations and will be incorporated in a report to the Legislature recommending government and tribal grant applications for funding and the amount of grant award suggested.

(b) Funding recommendations are made to maximize benefit to Montanans and will be based on the total amount of grant funds available, the amount of grant funds requested, and the total project cost.

(1) Funds for renewable resource planning grants are limited by legislative appropriation.

(2) Renewable resource planning grants provide funding for preliminary engineering reports, resource assessments, technical reports, or any planning activity that would contribute to a renewable resource project as determined by the bureau. Funding may also be awarded in the form of administrative grants.

(3) No application fee is required for the submission of a public planning grant.

(4) Public planning grant applicants shall submit applications in the form prescribed, and according to the guidelines published by the bureau.

(5) The bureau shall evaluate an application for a public planning grant on the basis of how well the application content explains and meets the objectives of the RRLG program.

(1) Successful governmental, tribal, and private grantees must enter into a written agreement with the bureau if the grantee wishes to continue the grant process. The written agreement must contain clear specifications for the work to be completed and a budget and other appropriate terms and conditions governing the performance of the grantee.

(2) The grantee shall document all project costs to be paid or reimbursed, and those to be credited as matching contributions.

(3) Grant funds that are not spent for the approved project must be returned to the renewable resource state special revenue account for use as directed by appropriation.

(4) Grant agreements with tribal governments in Montana must contain, in addition to other appropriate terms and conditions:

(a) a requirement that in the event a dispute or claim arises under the agreement, state law will govern as to the interpretation and performance of the agreement and that any judicial proceeding concerning the terms of the agreement will be brought in the district court of the first judicial district of the state of Montana;

(b) an express waiver of the tribal government's immunity from suit on any issue specifically arising from the transaction of a grant; and

(c) an express waiver of any right to exhaust tribal remedies signed by the tribal government.

(5) For successful governmental loans the borrower shall:

(a) furnish a bond resolution which contains the specific requirements and covenants with respect to the project financed from the loan proceeds; and

(b) enter into an agreement which:

(i) allows the department to purchase the applicant's bond or bond anticipation note, with the amount specified;

(ii) stipulates the terms of repayment and interest rates and fees to be paid by the borrower;

(iii) specifies the work to be completed;

(iv) specifies insurance requirements and inspection requirements; and

(v) specifies the conditions for the disbursal of funds.

(6) Loan agreements with tribal governments in Montana must contain, in addition to other appropriate terms and conditions:

(a) a requirement that in the event a dispute or claim arises under the agreement, state law will govern as to the interpretation and performance of the agreement and that any judicial proceeding concerning the terms of the agreement will be brought in the district court of the first judicial district of the state of Montana;

(b) an express waiver of the tribal government's immunity from suit on any issue specifically arising from the transaction of a loan; and

(c) an express waiver of any right to exhaust tribal remedies signed by the tribal government.

(7) For successful private loans, the borrower shall furnish title insurance showing ownership of land, mortgages, encumbrances, or other lien defects; and shall enter into a loan agreement with the department prior to project construction or equipment purchase. The loan agreement will:

(a) specify the loan administration fee;

(b) contain clear specifications for the work to be completed;

(c) stipulate a budget to be consistent with the application;

(d) specify provisions for the disbursement and repayment, including principal and interest of loan funds;

(e) describe the collateral provided to secure the loan;

(f) prescribe remedies for borrower delinquency or default in repayment; and

(g) specify that the recipient agrees to comply with Montana contracting and procurement laws applicable to state and federal agencies, counties, and municipalities. The agreement may provide specific guidance on compliance but may not waive compliance with the contracting or procurement laws.

(1) For loans to private applicants the borrower shall provide security which is at least equal to 125% of the principal value of the loan.

(2) Private borrowers shall provide security with:

(a) a first or second real estate mortgage;

(b) an assignment of accounts receivable;

(c) certificates of deposit or similar securities;

(d) a turn off authority; or

(e) other security as accepted by the department.

(3) Private water users association or ditch company borrowers may provide security in the following manner, which may be in addition to any security items listed in (2):

(a) a lien on the shares of stock in the association;

(b) a lien on the revenues of the association;

(c) a lien on the accounts receivable of the association; and/or

(d) a lien on any water purchase agreements of the association.

(4) At the department's request, the private borrower shall also provide an appraisal of the real property used as security for the loan.

(5) A partial release of lien may be granted by the department upon written request of the private borrower if the remaining security is at least equal to 125% of the outstanding principal value of the loan and the department establishes that the loan will remain adequately secured.

(6) The private borrower shall be apprised of state law governing foreclosure on delinquent loans at the time of loan closure.

(1) Except as provided in (2), a department action under Title 75, chapter 5, part 11, MCA, and this subchapter is excluded from the requirement to prepare an environmental assessment (EA) or environmental impact statement (EIS) if the application for department review is for any of the following grant, loan, and/or bond programs: state revolving fund, renewable resource, reclamation and development, rangeland, aquatic invasive species, American Rescue Plan Act of 2021, Pub. L. No. 117-2 (2021) (ARPA) and HB 632, 67th Legislature, 2021, water and sewer infrastructure.  The exclusion in this rule includes the re-financing and interim financing of projects that are funded in whole or in part by the aforementioned grant, loan, and/or bond programs and includes: 

(a) projects relating to existing infrastructure systems such as sewer and septic systems, drinking water supply systems, and stormwater systems, including combined sewer overflow systems, dams, culverts, headgates, canal lining, siphons, pipelines, pump sites, lift stations, irrigation infrastructure, that involve:

(i) minor upgrading;

(ii) minor expansion of system capacity;

(iii) rehabilitation (including functional replacement) of the existing system and system components; or

(iv) construction of new minor ancillary facilities adjacent to or on the same property as existing facilities; or

(b) replacing, repairing, and installation of fencing for protection of riparian area;

(c) projects in unsewered communities involving the replacement of existing on-site systems, provided that the new on-site systems do not result in substantial increases in the volume of discharges or in loadings of pollutants from existing sources, and do not relocate existing discharges;

(d)  use of sampling and monitoring wells to test for the presence of contaminants such as, but not limited to, metals and petroleum; and

(e)  activities that do not involve or lead directly to construction, such as planning studies, scientific research and analysis, surveys, or engineering.

(2) A categorical exclusion may not be granted for a department action under (1) if:

(a) the action would authorize facilities that will provide a new discharge or relocate an existing discharge to ground or surface waters;

(b) the action would result in an increase above permit levels established for the facility under the Montana pollutant discharge elimination system or Montana ground water pollution control system for either volume of discharge or loading rate of pollutants to receiving waters;

(c) the action would authorize facilities that will provide capacity to serve a population at least 30 percent greater than the existing population;

(d) the action is not supported by the state, or other regional growth plan or strategy;

(e) the action directly or indirectly involves or relates to upgrading or extending infrastructure systems primarily for the purposes of future development;

(f) the department has received information indicating that public controversy exists over the project's potential effects on the quality of the human environment; or

(g) the department determines that the proposed project that is the subject of the state action shows some potential for causing a significant effect on the quality of the human environment, based on ARM 36.2.524, or might possibly affect:

(i) sensitive environmental or cultural resource areas; or

(ii) endangered or threatened species and their critical habitats.

(3) The department shall document its decision to issue a categorical exclusion by referencing the application, providing a brief description of the proposed action, and describing how the action meets the criteria for a categorical exclusion in (1) without violating the criteria in (2).

(4) The department may revoke a categorical exclusion if:

(a) the project is not initiated within the time period specified in the facility plan, or a new or modified application is submitted;

(b) the proposed action no longer meets the requirements for a categorical exclusion because of changes in the proposed action;

(c) new evidence demonstrates that serious local or environmental issues exist; or

(d) state, local, tribal, or federal laws may be violated.