The 1981 Legislature passed Senate Bill 409, creating a 

 water development program for Montana to be carried 

 out by the Water Resources Division of DNRC. The Water 

 Development Program will earmark revenue from state- 

 owned projects; 30 percent of the interest from the 

 Resource Indemnity Trust Fund and 0.625 percent of the 

 coal severance tax will go to a water development ac- 

 count. These revenues, about 3.5 million dollars each 

 biennium, will fund water resource projects such as: ir- 

 rigation systems, saline seep abatement, offstream and 

 tributary storage, canal lining, water-based recreation, 

 streambank stabilization, erosion control, rehabilitation of 

 existing projects, and development of conservation 

 district water reservations. 



In addition, the Water Development Program will use 

 the coal severance tax proceeds flowing into the perma- 

 nent trust fund to back bonds sold to finance water pro- 

 jects. Only if recipients are unable to fully repay project 

 costs will the severance tax proceeds actually be 

 depleted. The legislature must approve each project 

 before bonds can be sold. Also, 15 percent of the earnings 

 from the permanent trust fund are reappropriated to the 

 trust fund to offset any depletion of proceeds going into 

 that trust fund. The Water Development Program is of 

 specific interest to conservation districts because the pro- 

 gram will be providing two engineers beginning in fiscal 

 year 1 982 for assistance to CDs to improve and implement 

 water reservation plans on the Yellowstone River. The 

 Water Development Program will also be providing small 

 water development grants and loans beginning July 1, 

 1983. It is anticipated that the CDs will be closely involved 

 in the grant and loan portion of the program. 



The Forestry Division of DNRC maintains a tree and 

 shrub nursery in Missoula that provides stock for 

 shelterbelt plantings for a nominal fee. 



The Montana Cooperative Extension Service provides 

 resource conservation education and information 

 assistance to districts. 



Federal Sources: 



Most federal assistance comes from the U.S. Depart- 

 ment of Agriculture. The Soil Conservation Service pro- 

 vides technical help to districts by cooperative agreement. 

 SCS resource conservation programs are available, such 

 as: the Great Plains Contract Program, Watershed and 

 Flood Prevention (PL566) programs, Resource Conserva- 

 tion and Development programs. Rural Abandoned Mine 

 Program, Plant Materials Center, Soil Survey, Snow 

 Survey, and the Inventory and Monitoring Program. The 

 Agricultural Stabilization and Conservation Service cost- 

 sharing programs and the Farmers Home Administration 

 conservation loan programs make important contribu- 

 tions to resource conservation. 



All these sources contribute a considerable amount of 

 funding to resource conservation and development in 

 Montana, and, with the investments of ranchers and 

 farmers, provide a substantial financial base. The demand 

 and opportunity exists to expand these programs; 

 however, if such expansion is not possible with the help of 

 the Resource Conservation Advisory Council, the Na- 

 tional Association of Conservation Districts, and the Mon- 

 tana Association of Conservation Districts, the Conserva- 

 tion Districts Division will work to maintain present fun- 

 ding and assistance levels. If federal funding is not 

 available, more state support will be needed to fund the 

 programs. 



