create the water infrastructure development fund, to provide an appropriation, to provide for the awarding of grants and loans from the fund for certain rural water projects and to declare an emergency.

New grants and loans for rural water

The law creates South Dakota’s Water Infrastructure Development Fund and requires a $3 million transfer from the state general fund. Money is available on an ongoing basis for planning, developing, and building rural water projects in the state. The Board of Water and Natural Resources can award grants covering up to 10% of its estimated construction cost. It can also provide loans covering up to 50% of that cost. The board must set rules for project selection and for grant and loan terms, conditions, and administration. The fund can receive state appropriations, investment interest, loan principal and interest repayments, and federal grants for Bureau of Reclamation-listed rural water projects. The law took effect immediately upon passage and approval under its emergency clause.