Montana Department of Environmental Quality

This Intended Use Plan and Project Priority List for State Fiscal Year 2027 outlines how the Montana Department of Environmental Quality will utilize the Drinking Water State Revolving Fund. The plan's long-term goals include maintaining a self-sustaining SRF program and providing financing and technical assistance for drinking water projects to ensure Safe Drinking Water Act (SDWA) compliance and sustainable infrastructure. Key short-term objectives focus on funding projects that address SDWA requirements, promote regionalization, replace aging infrastructure, and develop system sustainability. It also details the allocation of set-aside funds for administration, various state programs (like public water supply supervision, capacity development, operator certification, source water protection), small system technical assistance, and local assistance (including wellhead protection), all aimed at protecting and enhancing public drinking water in Montana.

This Intended Use Plan (IUP) for State Fiscal Year 2027 outlines the proposed annual application of federal and state funds for the Montana Water Pollution Control State Revolving Fund (WPCSRF) program, specifically targeting emerging contaminants (ECs). The plan aims to maintain, restore, and enhance the chemical, physical, and biological integrity of Montana's waters for environmental benefit and public health protection. Key objectives include providing affordable financial assistance for EC projects, ensuring technical integrity and compliance with pertinent laws, optimizing fund turnover, simplifying program administration, and adhering to federal requirements such as the Bipartisan Infrastructure Law (BIL) and Build America/Buy America provisions.

The work group discussed proposed updates to Circular DEQ-13, focusing on load reduction guidelines, the integration of BMPs, and methodologies for calculating nutrient load reductions from septic systems. Key discussion topics included antibacksliding and antidegradation policies in the context of water quality trading, establishing baselines for point and nonpoint sources, and the application of improvement ratios for credit trading. Additionally, the group reviewed verification flow diagrams for projects, explored the use of the EPA's Pollutant Load Estimation Tool, and addressed concerns regarding TMDL load allocations and statutory language related to site-specific nutrient loading methodologies.

The Intended Use Plan for the Montana Water Pollution Control State Revolving Fund details the proposed annual allocation of federal and state funds for water pollution control projects. It outlines funding criteria, eligibility, and priorities including maintaining, restoring, and enhancing the chemical, physical, and biological integrity of the state's waters and protecting public health. The plan aims to provide affordable financial assistance through low-interest loans, emphasizing support for small, rural, tribal, and disadvantaged communities, while also ensuring compliance with federal requirements such as Build America, Buy America (BABA) and Green Project Reserve.

This document serves as the Intended Use Plan (IUP) for the Montana Department of Environmental Quality's Drinking Water State Revolving Fund Lead Service Line Replacement (DWSRF LSLR) program, spanning State Fiscal Years 2023-2027. It details the administration of federal capitalization grants provided under the Bipartisan Infrastructure Law to mitigate lead exposure in public drinking water. The plan's core objectives include reducing lead service lines, assisting communities with comprehensive LSL inventories, and providing financial aid through below-market loans and principal forgiveness for disadvantaged communities. Furthermore, it outlines provisions for technical assistance, education on new LSL requirements, and ensuring the program's financial integrity and compliance with federal and state drinking water regulations.