Renewable Resource Grant and Loan Program

Project Evaluations and Funding Recommendations For the 2002-2003 Biennium

And

2000-2001 Biennium Status Report

Prepared by the

Montana Department of Natural Resources And Conservation

January 2001

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program ii

CONTENTS

List of Abbreviations ...... vi

Alphabetical Index of Project Summaries ...... viii

Introduction ...... xii

Chapter 1

The Renewable Resource Grant and Loan Program

Background ...... 1 Purpose ...... 1 Project & Applicant Eligibility...... 1 Private Entities ...... 1 Emergency Grants ...... 2 Funding Limitations ...... 2 Funding Authority ...... 2 Program Implementation...... 3 Rule-Making Authority...... 3 Program Goals ...... 3

Chapter 2

Renewable Resource Grants to Public Entities

Application Administration and Project Review Procedures ...... 5 Project Solicitation...... 5 Application Review...... 6 Project Ranking Criteria ...... 8 Funding Recommendations ...... 9 Project Management ...... 10 Project Monitoring ...... 10 Project Evaluation ...... 10 Grant and Loan Application Evaluations...... 13

Chapter 3

Coal Severance Tax Loans to Public Entities

Application Administration and Project Review Procedures ...... 198 Project Solicitation...... 198 Application Review...... 198 Funding Recommendations ...... 198 Availability of Funds ...... 198 Loan Repayment...... 199 Interest Rates...... 199 Project Management ...... 200 Project Monitoring ...... 200

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program iii

Chapter 4

Renewable Resource Grants and Loans to Private Entities

Grant Application Administration and Project Review Procedures...... 205 Project Solicitation...... 205 Application Review...... 205 Funding Recommendations ...... 205 Grant Project Management...... 206 Project Monitoring ...... 206 Project Evaluation ...... 206 Private Loan Application and Project Review Procedures...... 207 Project Solicitation...... 207 Application Review...... 207 Funding Recommendations ...... 208 Availability of Loan Funds ...... 208 Interest Rates...... 208 Loan Project Management...... 208 Project Monitoring ...... 209 Project Evaluation ...... 209 Private Loans Previously Funded ...... 209

Chapter 5

Emergency Grants and Loans

Application Administration and Project Review Procedures ...... 211 Project Solicitation...... 211 Application Review...... 211 Funding Recommendations ...... 211 Project Management ...... 212 Emergency Grant and Loan Applications in Calendar Years 1999 and 2000 ...... 212 Authorized Projects ...... 212 Projects not Funded ...... 213

Chapter 6

Summary of Active Grants to Public Entities

Grant Projects Completed since July 1, 1999...... 215 Active Grant Projects ...... 220 Authorized Grant Projects Not Yet Executed...... 227 Projects that have been Terminated ...... 228

Chapter 7

Renewable Resource Project Planning Grants

Application Administration and Project Review Procedures ...... 230 Project Solicitation...... 230 Application Review...... 230 Funding Recommendations ...... 230 Project Management ...... 230 Authorized Projects ...... 231

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program iv

List of Figures

1 Flowchart of Grant Application Review and Ranking Process...... 5 2 Renewable Resource Grant and Loan Program -- Project Recommendations...... 11 3 Resource Development Public Loans...... 203 4 Water Development Public Loans...... 203 5 Public Loans Authorized in 1999 and Seeking Reauthorization ...... 204 6 Public Loans Authorized in 1999 That Have Been Cancelled ...... 204 7 Private Grant Applications in Calendar Years 1999 and 2000...... 207 8 Private Loan Applications in Calendar Years 1999 and 2000...... 209

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program v

LIST OF ABBREVIATIONS

AUM ...... animal unit month BMP...... best management practice BOD...... biological oxygen demand BRID...... Bitterroot Irrigation District CARDD...... Conservation and Resource Development Division CD ...... conservation district CDBG ...... Community Development Block Grant Program CERCLA...... Comprehensive Environmental Response Compensation and Liability Act Cfs...... cubic feet per second Co...... county CST ...... Coal Severance Tax DEQ...... Department of Environmental Quality DFWP...... Montana Department of Fish, Wildlife and Parks DNRC ...... Montana Department of Natural Resources and Conservation DOC ...... Montana Department of Commerce DOT...... Montana Department of Transportation EA...... environmental assessment EDA ...... Economic Development Administration EDU...... Equivalent Dwelling Unit EIS...... Environmental Impact Statement EPA ...... U.S. Environmental Protection Agency EQIP...... Environmental Quality Incentive Program FY...... Fiscal Year FONSI ...... Finding of No Significant Impact GIS ...... Geographic Information System GWIC ...... Groundwater Information Center HUD...... Housing and Urban Development I/I ...... inflow and infiltration I/P ...... infiltration and percolation LWQD ...... Local Water Quality District MBMG ...... Montana Bureau of Mines and Geology MCA ...... Montana Code Annotated MCC ...... Montana Climate Center MDA ...... Montana Department of Agriculture MEPA ...... Montana Environmental Policy Act MHI...... Median Household Income MRWS...... Montana Rural Water Systems, Inc. MSCA ...... Montana Salinity Control Association MSU ...... Montana State University MT ...... Montana NPS ...... non-point source NRCS ...... Natural Resources Conservation Service, U.S. Department of Agriculture NRIS...... Montana Natural Resource Information System O&M ...... Operation and Maintenance PER ...... Preliminary Engineering Report pH...... measure of alkalinity Psi ...... pounds per square inch RC&D ...... Resource Conservation and Development Area RD ...... Rural Development Program RDGP...... Reclamation and Development Grants Program RIT...... Resource Indemnity Trust RRGL ...... Renewable Resources Grant and Loan Program SCS ...... Soil Conservation Service (now NRCS) SID ...... Special Improvement District SMP...... Specific Agriculture Chemical Groundwater Management Plan

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program vi

SRF ...... State Revolving Fund TMDL...... Total Maximum Daily Load TSEP...... Treasure State Endowment Program TSS ...... Total Suspended Solids USBR ...... U.S. Bureau of Reclamation, Department of the Interior USDA ...... U.S. Department of Agriculture USFS...... U.S. Forest Service, U.S. Department of Agriculture USFWS ...... U.S. Fish and Wildlife Service USGS ...... U.S. Geological Survey WAPA...... Western Area Power Administration WCSIP ...... West Crane Sprinkler Irrigation Project WRD...... Water Resources Division, DNRC

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program vii

ALPHABETICAL INDEX OF PROJECTS

Applications for funding during Fiscal Years 2000 and 2001

This table provides an alphabetical list (by applicant) of the 71 grant and loan proposals submitted in 2000 that have requested funds during the 2002-2003 biennium. Page numbers correspond to the project evaluation contained in this report.

Alder Water and Sewer District Wastewater System Improvements ...... 26

Ashland Water and Sewer District Wastewater System Improvements ...... 66

Beaverhead County Big Hole Watershed Management Project...... 108

Bitterroot Irrigation District Water Use and Water Quality Improvement Project - Phase II ...... 42

Butte-Silver Bow Elimination of Combined Sewers ...... 157

Butte-Silver Bow Local Government Basin Creek Dam #1 and #2 Site Improvements Projects...... 168

Canyon Creek Irrigation District Wyant Lake Dam Rehabilitation...... 21

Canyon Creek Irrigation District Canyon Lake Dam Rehabilitation...... 24

Carbon Conservation District Whitehorse Ditch Reorganization...... 104

Cascade County Conservation District Sun River Valley Ditch Company's Water Conservation and Quality Improvement Project ...... 32

Charlo Sewer District Wastewater System Improvements ...... 56

Charlo Water District New Water Well ...... 133

Choteau, City of Water System Improvements...... 106

Circle, Town of Water Reclamation Project ...... 171

Clyde Park, Town of Water System Improvements Project ...... 76

Colstrip, City of Water System Improvements...... 174

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program viii

Deer Lodge, City of Clark Fork River Water Quality Protection Project...... 87

Elk Meadows Ranchettes County Water District Water Systems Improvements...... 101

Essex Water and Sewer District Water System Improvements...... 183

Flathead Basin Commission Implementation of the Flathead Basin Voluntary Nutrient Reduction...... 29

Florence County Water and Sewer District Wastewater System Improvements ...... 39

Geraldine, Town of Water System Improvements Phase I ...... 63

Glasgow Irrigation District Vandalia Diversion Dam Rehabilitation Phase II North Bridge Pier ...... 61

Glen Lake Irrigation District Therriault Creek Point of Diversion Infrastructure and Fish Habitat Improvement Project ...... 48

Glen Lake Irrigation District Costich Drop Improvements Project ...... 146

Great Falls, City of Yard Waste Management Facility ...... 159

Helena Valley Irrigation District Fixed Wheel Gate and Hydraulic Cylinder Repair...... 127

Hill County Beaver Creek Dam Rehabilitation...... 125

Hinsdale Water and Sewer District Wastewater System Improvements ...... 128

Hobson, Town of Water Exploration...... 111

Hot Springs, Town of Water System Improvements...... 92

Jordan, Town of Water and Wastewater System Improvements ...... 186

Kalispell, City of Water and Sewer Utility Extension Project...... 189

LaCasa Grande Water and Sewer District Water Supply and Distribution System...... 74

Lambert County Sewer and Water District Water System Improvement Project ...... 161

Governor’s Budget Long-Range Planning Subcommittee Renewable Resource Grant and Loan Program ix

Laurel, City of City of Laurel Ground-Water and Salinity Management, Feasibility Project...... 141

Lewis & Clark Conservation District Willow Creek Water Quality Improvement Project...... 90

Lewis & Clark Conservation District Nilan Dam Repair and Irrigation Efficiency Project ...... 192

Lima, Town of Water System Improvements...... 195

Lockwood Water and Sewer District Wastewater Collection System ...... 116

Lower Willow Creek Drainage District Lower Willow Creek Dam Rehabilitation ...... 84

Malta Irrigation District Replacement and Modification of Check Structures ...... 149

Manhattan, Town of Wastewater Systems Improvements ...... 45

Milk River Project Joint Board of Control Saint Mary River Siphon Repair Phase II...... 69

Missoula, City of Rattlesnake Stream Restoration and Flood Control Project ...... 113

Montana State University Married Student Housing Irrigation Project ...... 144

MT Dept. of Corrections Correctional Enterprises Ranch Rehabilitation of Prison Ranch Dams ...... 19

MT Dept. of Environmental Quality Bertha Tailings Reclamation Project ...... 179

MT Dept. of Environmental Quality Snowshoe Mine Reclamation Project...... 181

MT Dept. of Natural Resources and Conservation Bair Dam Rehabilitation Proposal ...... 14

MT Dept. of Natural Resources and Conservation Seepage Monitoring Program (DNRC) ...... 136

MT Dep