HB 1206 Summary

• Creates the Western Area Water Supply Authority as a political subdivision to treat, store, and distribute water to western North Dakota counties (McKenzie, Williams, Burke, Divide, and Mountrail) for domestic, municipal, industrial, and oil and gas development purposes.

• Establishes initial board of directors with two representatives each from Williams Rural Water District, McKenzie County Water Resource District, City of Williston, BDW Water System Association, and R&T Water Supply Association, plus the State Engineer as a voting member.

• Authorizes authority to acquire and construct water infrastructure, enter contracts with member entities and private users, exercise eminent domain for rights-of-way, and borrow money with restrictions on property encumbrance.

• Appropriates $110 million total in loans: $25 million zero-interest from State Water Commission, $50 million from Bank of North Dakota, $25 million from general fund, and $10 million from resources trust fund, with structured repayment prioritizing Bank of North Dakota loan first.

• Members cannot withdraw from authority or refuse water sale payments until the $25 million zero-interest state loan is repaid; bill declared emergency measure.