North Dakota funds wastewater grants and studies a future grant fund

The Department of Environmental Quality awards grants for wastewater system projects. Grants may support work to upgrade, replace, or build wastewater collection or disposal systems, or wastewater treatment plants. Cities, counties, townships, water resource districts, recreation service districts, and water districts operating wastewater systems in North Dakota may receive grants for eligible projects, if funds are available. The department prioritizes applicants whose previously approved federal wastewater funding has been reduced and whose projects are ready to start when they receive grants. A system must meet current wastewater rules unless the project will bring it into compliance. Grants cannot pay for operating or maintaining a system, cover more than 60 percent of a project's cost, or fund more than one project for a community per biennium.

The Department of Environmental Quality may borrow up to $9.7 million from the Bank of North Dakota to fund wastewater grants. The borrowing and appropriation support wastewater infrastructure grants administered by the department. The department is appropriated the borrowed amount for grants to entities with eligible projects, including grants of $7.8 million and $1.9 million. If a grant recipient receives federal funding for the same project, it must send that funding to the department to repay the loan. The department must ask the next legislative assembly for an appropriation to repay the loan. This is a one-time funding item. The grant funding covers the biennium from July 1, 2025, through June 30, 2027.

The Legislative Management studies whether to establish a wastewater project fund. The possible fund would provide grants to upgrade, build, or replace wastewater infrastructure. The study must include input from cities, counties, townships, and water resource districts. The study takes place during the 2025–26 interim, and the report goes to the seventieth legislative assembly.