State-Local Infrastructure Partnership Act

To be eligible for HB 355 funding, a proposed project must maintain or repair existing local government infrastructure, including:

• drinking water systems;
• wastewater treatment systems;
• fire suppression systems if independent of the drinking water systems;
• streets and roads;
• bridges;
• landfills,
• street lights;
• airports;
• public grounds and buildings; and
• to expand existing water and wastewater treatment plants that are being operated at 90% of design capacity or greater.

See Section 4(1) and (2).

"Existing local government infrastructure" is defined as local government infrastructure that existed on or before June 13, 2023, the date on which HB 355 became law.

Please contact Commerce staff at DOCCDD@mt.gov to discuss specific project requests.

Incorporated cities and town applying for funds mustcomply with HB 355, including by:

1. Soliciting and accepting applications for eligible projects on or before December 31, 2023. See Section 5(1).
2. Holding a public hearing to discuss and receive feedback on applications submitted to it. See Section 5(2).
3. Preparing a recommendation for funding in priority order. See Section 5(2).
4. Submitting the priority list with applications for each identified project (as applicable) to Commerce. See Section 5(2).
5. Commerce requests that incorporated cities and town submit their recommended priority list and applications to Commerce by March 30, 2024. Applicants may submit completed applications prior to March 30, 2024. Additionally, applications received after March 30, 2024 may be eligible for review. Applications must contain all information required by Section 6 of HB 355.

Once Commerce receives applications, it will review them for compliance with Section 6 of HB 355. See Section 5(3). Commerce may not substitute its judgment for that of the legislative body of the city or town and cannot revise the recommended priority list. See Section 5(4).

If an application complies with Section 6, an incorporated city or town is eligible to receive HB 355 funds once it satisfies the conditions established by Section 12 of HB 355. See Section 5(6). Commerce will disburse funds on a reimbursement basis as grant recipients incur eligible project expenses in accordance with the terms of the contract the grant recipient signs with Commerce. See Section 12(3).

Approved applicants generally must be under contract with a contractor by December 31, 2024. See Section 7(2). Approved applicants also must submit quarterly progress reports and a completion notice to Commerce. See Section 10. All projects funded by HB 355 must be completed by December 31, 2027. See Section 7(4).

Commerce requests that incorporated cities and town submit their recommended priority list and applications to Commerce by March 30, 2024. Applicants may submit completed applications prior to March 30, 2024. Additionally, applications received after March 30, 2024 may be eligible for review. Applications must contain all information required by Section 6 of HB 355.

To apply for grant funding, an applicant must upload the application to the State of Montana File Transfer Service (FTS). To access the FTS, an applicant must register with OKTA. To register with OKTA, go to the FTS page and select ‘Register now!’ from the Login screen and follow the prompts. After registration, an applicant can access the FTS to upload the application for submission. Please see these instructions for additional help.

An applicant may solicit applications in various ways, including by:

• advertising the need for project applications;
• discussing potential projects with department heads (public works, parks, etc.); or hosting public meetings to discuss and identify potential infrastructure projects.

The “applications” cities and towns must solicit by December 31, 2023, are different from the “application” cities and towns must submit to Commerce by March 30, 2024. Cities and towns do not need to submit additional documentation of the applications they solicited/accepted in 2023 to Commerce with the applications they submit in 2024.

Cities and town must submit documentation showing they held a public hearing to Commerce with their application. Examples of acceptable documentation include:

• public advertising or notice;
• meeting agenda;
• meeting minutes;
• Video recording; or
• sign-in sheets.

Applicants can determine project priority in various ways, including by:

• consistent with Section 5(5) of HB 355, giving priority to projects that maintain or repair publicly owned drinking water systems, publicly owned wastewater treatment systems, and municipal fire suppression systems that are independent of a water system;
• utilizing a Capital Improvements Plans (CIP);
• utilizing other planning documents;
• considering local needed improvements; and
• considering public feedback.

Incorporated cities and town must submit to Commerce an application containing all information required by Section 6 of HB 355, including:

• The name of the project for which the applicant is seeking a grant.
• The name, address, telephone number, e-mail address, and title of the individual person who will be directly responsible for the management of the project or projects to be funded by the application, such as a public works director or a consulting engineer, and a copy of the individual's resume attesting to the individual's qualifications and ability to manage the project.
• A narrative description of the prospective project, including a description of the problems to be addressed and the need to undertake the repairs. The applicant shall explain why the proposed project is appropriate, cost-effective, and is a long-term solution to the problem.
• A list of tasks to be undertaken to address the problem.
• A map or google earth photo showing the project. Photographs documenting the nature of the problems are advisable but not required.
• A project cost estimate showing the total cost of the project, prepared by a licensed professional engineer or qualified contractor. The cost estimated must be itemized by the list of task elements as required in subsection (3) of Section 6.
• A time schedule showing each step in the repair process starting with the preparation of the bid documents through completion of the work. Specific calendar dates are recommended.
• A statement that the information contained in the application is true, which must be signed by an authorized representative of the applicant.
• A statement identifying a local cash match equal to no less than 25% of the total project cost, which may not include in-kind contributions of goods or in-kind services.

Approved Grantees must meet all of the conditions listed in Section 12 of 355 before Commerce may disburse funds, including:

• a completed budget and implementation schedule for the project;
• a completed project management plan approved by Commerce;
• compliance with the auditing and reporting requirements provided in § 2-7-503, MCA, and an established financial accounting system that reasonably conforms to generally accepted accounting principles;
• a completed contract with Commerce, a provision of which must document that local matching funds are available and committed to the project;
• a certification that Grantee has obtained local, state, and federal permits and approvals; and
• a completed SLIPA Environmental Review Form and additional documentation, if necessary.

See Section 12(1) and (2); A.R.Ms 8.2.304 to 328.

Yes. Pre-construction expenses may be eligible for reimbursement if the project satisfies the eligibility requirements in Section 4 and the expenses are incurred after submission of the application to Commerce. Applicants must comply with Sections 6 and 12 prior to receiving reimbursements.

Expenses incurred before application submission are not eligible for reimbursement. However, local money spent prior to application submission could be used to fulfill the local-cash match requirement for the total project cost, provided that it was expended after June 13, 2023, the date on which HB 355 became law.

Projects that are awarded SLIPA funds may be subject to the requirements of the Montana Environmental Policy Act (“MEPA”). Eligible applicants’ contracts with Commerce will require certification that their project(s) qualify for a categorical exclusion under MEPA. See, e.g., R. Mont. 8.2.328(2)(d), (e), and (g). If a project does not qualify for a categorical exclusion, additional MEPA analysis may be required. Eligible applicants also must complete and submit to Commerce the SLIPA Environmental Review Form.

For detailed information on MEPA, see A Guide to the Montana Environmental Policy Act, or A Citizen’s Guide to Public Participation in Environmental Decision Making.

On a quarterly basis, HB 355 funding recipients shall provide Commerce with an invoice tracking sheet and quarterly reports containing the following information:

• work that has been undertaken on the project;
• the work percentage of work completed;
• the amount of funds expended to date;
• remaining funds;
• description of any significant problems;
• whether the project encountered any modification necessary to the scope of work, budget, or schedule; and
• the projected completion date.

See Section 10(1). At the completion of the project, HB 355 funding recipients shall provide Commerce with a final project report attesting to the completion of the project, which must be signed by the project manager.See Section 10(2).