Senate Bill 33, the annual omnibus water and environment funding bill, won a do-pass recommendation from the Joint Appropriations Committee after a multi-hour presentation and public testimony from water-system stakeholders.

The bill would authorize about $17.5 million in special appropriations from dedicated funding sources for fiscal 2026, including $3 million for the state water resources management system (SWRMS) projects, $12 million for the Consolidated Water Facilities Construction Program, and $2.5 million for the Solid Waste Management Program. Committee members were told the funds come from statutory dedicated sources — lottery revenue, petroleum release compensation and inspection fees, loan repayments and tipping/tire fees — not the general fund.

Tina McFarling, environmental funding program administrator at the Department of Agriculture and Natural Resources (DANR), led the committee through the bill and revenue projections. She told the committee the water and environment fund began fiscal 2025 with a roughly $3.2 million surplus driven by higher-than-expected lottery receipts, but DANR was using conservative revenue estimates going forward. McFarling described two project-specific requests from the state water resources management list: a $1 million grant for a feasibility study for the Dakota Mainstem regional water study and a $2 million request for the Water Investment in Northern South Dakota (WINS) pipeline project to move Missouri River water across northeast South Dakota.

Lobbyists and local officials urged support. Lindsey Ryder Rapp of the South Dakota Association of Rural Water Systems and Julie Johnson, lobbyist for Webb Rural Water (the WINS project partners), told the committee the omnibus process and the Board of Water and Natural Resources’ planning process have been effective in moving large projects forward. Greg Powell and representatives of municipal and economic-development groups said water projects are essential for economic growth in places such as Aberdeen and Mitchell.

Committee members asked about overlap with other pending legislation (notably a bill creating a water infrastructure development fund) and tribal consultation. DANR staff said the omnibus bill is a separate process from other water-funding proposals and confirmed tribes receive public notices and are eligible for funding. Members also asked about lotto revenue volatility; DANR staff explained multi-state jackpot variability causes large year-to-year swings and they therefore project conservatively.

Representative Derby moved a do-pass recommendation; Representative Monke seconded. The roll call recorded the committee’s approval and the bill was reported to the Senate floor with a do-pass recommendation.

SB 33 directs special appropriations limited to the water and environment subfunds and includes an emergency clause to allow funds to be obligated immediately after the governor signs the bill. Proponents emphasized there are no general-fund appropriations in SB 33 and that the measure seeks to keep multi-year water and solid-waste projects moving under the long-standing state water plan process.

Committee action now moves SB 33 to the Senate floor for final floor action.