AN ACT to provide an appropriation for defraying the expenses of the department of water resources; to create and enact a new section to chapter 61-24.6 of the North Dakota Century Code, relating to the northwest area water supply biota water treatment plant operating fund; to amend and reenact subsection 1 of section 54-12-08 and sections 54-35-02.7 and 61-02-79 of the North Dakota Century Code, relating to state agency employment of attorneys, the powers and duties of the water topics overview committee, and a Bank of North Dakota line of credit; to provide legislative intent; to provide for a report; to provide for a study; to provide a continuing appropriation; to provide for a transfer; to provide an exemption; and to declare an emergency.
HB1020 is the Department of Water Resources appropriations bill for the 2025-27 biennium. It provides a large other-funds appropriation to cover salaries, operations, capital assets, and major water program categories, including southwest pipeline, northwest area water supply, regional water supply, flood control, general water, and discretionary funding. The bill also authorizes additional federal and special-fund money if it becomes available, continues certain unspent prior appropriations, and declares the measure an emergency so it takes effect immediately.
Beyond the base appropriation, the bill sets out specific funding directions and financing tools for major water projects. It transfers $40 million from the resources trust fund to the water infrastructure revolving loan fund and allows the department to request up to a $100 million line of credit from the Bank of North Dakota for local cost-share loans, while also amending the broader line-of-credit statute to allow up to $260 million for water projects. The bill creates a continuing appropriation for the northwest area water supply biota water treatment plant operating fund, and it includes legislative intent limiting additional state funding for the Red River Valley water supply project and Mouse River flood control project without further legislative approval.
The bill also changes related statutes. It allows the Department of Water Resources to employ attorneys through special assistant attorney general appointments, expands and clarifies the duties of the water topics overview committee, and revises the Bank of North Dakota line-of-credit provisions tied to water infrastructure financing. Several sections establish legislative intent for how funds should be allocated among municipal, rural, regional, flood control, and general water projects, including named projects such as the Red River Valley water supply, western area water supply, Mouse River flood control, Valley City flood control, and Bismarck flood control.
HB1020 further directs multiple interim studies for the 2025-26 interim, including studies on designated appropriations for water projects, storm water funding, Missouri River intake sites, regional water systems governance and finance, and the state’s cost-share policy and long-term financial planning for water projects. It also exempts certain studies and transfers from normal procurement and budget rules, and allows limited line-item transfers and continuation of unspent funds for specified water-related appropriations.
The overall sentiment reflected by the bill’s passage is strongly supportive of state water infrastructure investment, with broad legislative backing for funding major projects and preserving flexibility for ongoing water planning and financing. There is no recorded committee debate in the provided materials, but the structure of the bill suggests a consensus around continued support for large-scale water supply and flood control projects. The main points of potential contention are the size and financing of the Bank of North Dakota line of credit, the use of continuing appropriations and exemptions from standard procurement and lapse rules, and the bill’s project-specific funding priorities and legislative intent limits on future approvals.
HB1020 substantially affects North Dakota’s water law and budget framework by appropriating funds to the Department of Water Resources, creating a continuing appropriation for the northwest area water supply biota water treatment plant operating fund, and modifying financing authority for water projects through the Resources Trust Fund and Bank of North Dakota line of credit. It also amends statutes governing attorney employment by state agencies and the water topics overview committee, and revises the line-of-credit statute to support larger water infrastructure borrowing and repayment mechanisms. The bill directly affects the department, the state water commission, the Bank of North Dakota, and local governments and water systems seeking state cost-share support for major water supply and flood control projects.
The bill appears to have enjoyed broad support, passing the House 79-9 and the Senate 45-0, which indicates strong bipartisan agreement on the need to fund water infrastructure and related planning. The absence of recorded committee transcript material limits insight into detailed debate, but the vote totals suggest the bill was viewed as a necessary and largely noncontroversial appropriations measure. The emergency clause and extensive project funding provisions further indicate urgency and a shared policy priority around water development and flood protection.
The most likely areas of contention are the scale of the funding commitments, the use of a large Bank of North Dakota line of credit, and the bill’s many exemptions from ordinary budget, lapse, and procurement rules. Some lawmakers or stakeholders could also object to the bill’s project prioritization, especially the designated funding for the Red River Valley water supply project and Mouse River flood control, or to the legislative intent language that constrains future state funding without additional approval. The bill also centralizes significant discretion in the department and state water commission, which may raise oversight concerns even though the bill requires multiple reports and interim studies.