The Milk River Project is funded by irrigator fees, municipal contracts, and State and Federal funds. Funding is used for maintenance of the project. The founding sources listed below are either currently being used or are available to the project:
Infrastructure Investment and Jobs Act (IIJA)
- $100 million directed to facilities that have failed in the last two years, in a way that prevented delivery of water for irrigation.
- The Milk River Project is the only project to fit these criteria.
- Does not require reimbursement by the Milk River Project water users and will be used to fund the replacement of the St. Mary Diversion Dam and Headworks.
- $1 million of the funds is being used for design work on the siphons.
Montana House Bill 6
- Authorized a $26 million loan with an interest-only repayment over the term of the loan.
- The Milk River Repair and Maintenance Fund has been established to retain the interest earned. Eligible uses for the interest earned funds include long-term operations and maintenance of the Milk River Project.
- As of July 1, 2023, the State Treasurer transferred $26 million from the general fund to the Natural Resources Projects State Special Revenue Account.
- For more information, Contact Autumn Coleman, DNRC
Email: autumn.coleman@mt.gov
Montana House Bill 8
- Authorized an additional $26 million loan for the replacement of the St. Mary’s siphons, referred to as St. Mary’s Siphon Replacement Projects Local Share Loan.
- The interest rate for the loan is 3.0% or the rate at which the state bonds are sold, whichever is lower, for up to 30 years.
- A Local Share $40 million loan was also reallocated in Montana House Bill 8, referred to as St. Mary’s Diversion Project Local Share Loan.
- The interest rate for the loan is 3.0% or the rate at which the state bonds are sold, whichever is lower, for up to 30 years.
- For more information, Contact Autumn Coleman, DNRC
Email: autumn.coleman@mt.gov
Bonding
- In 2005, House Bill 540 provided $10 million of State support in “St. Mary State Share” for the St. Mary Water Project
- Funding comes from the sale of bonds and the appropriation of bond proceeded are contingent on the receipt of the Federal cost share of the project
- In 2020, approximately $3.6 million of the bond proceeds were using for the replacement of Drops 2 and 5
- For more information, Contact Autumn Coleman, DNRC
Email: autumn.coleman@mt.gov
FBIC Water Rights Settlement Act
- In June 2023 Senators Daines and Tester introduced S.1987, the Fort Belknap Indian Community (FBIC) Water Rights Settlement Act.
- The legislation provides $275 million in mitigation funds for the Milk River Project which includes:
- St. Mary Unit
- Fresno Dam and Reservoir
- Dodson Pumping Unit
- This settlement is the product of more than a decade of collaboration amongst Tribal leaders, the Montana delegation, state legislators, federal agencies, irrigators, and local stakeholders.
- The legislation will settle water rights claims, provide infrastructure for clean drinking water and irrigation for FBIC, and complete the rehabilitation the Milk River Project to provide water certainty to residents across North Central Montana.
- On July 27, 2023 the Senate incorporated the FBIC Water Settlement Act provisions into and then approved the National Defense Authorization Act, S.2226, Division K (Sections 11001-11016).
- Because the House passed a different version of the National Defense Authorization Act (which does not include the FBIC Water Settlement Act provisions), the two differing NDAA bills will be referred to a conference committee.
- In July 2023, Rep. Matt Rosendale introduced in the House a parallel FBIC Water Settlement Act, H.R. 5088, with provisions substantially similar to S.1987.
- The Fort Belknap Water Compact is the last water settlement to be finalized in Montana.
For more information on any of these funding sources, please feel free to contact Dave Peterson, SMRWG Coordinator.