Relates to the maintenance appropriation to Natural Resources for fiscal year 2027.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1363 BY FINANCE COMMITTEE AN ACT1 RELATING TO APPROPRIATIONS TO NATURAL RESOURCES; APPROPRIATING MONEYS TO2 THE DEPARTMENT OF ENVIRONMENTAL QUALITY, THE DEPARTMENT OF FISH AND3 GAME, THE ENDOWMENT FUND INVESTMENT BOARD, THE DEPARTMENT OF LANDS,4 THE DEPARTMENT OF PARKS AND RECREATION, AND THE DEPARTMENT OF WATER5 RESOURCES FOR FISCAL YEAR 2027; LIMITING THE NUMBER OF AUTHORIZED6 FULL-TIME EQUIVALENT POSITIONS; PROVIDING REMEDIATION PROJECT RE-7 PORTING REQUIREMENTS; APPROPRIATING AND TRANSFERRING MONEYS FROM THE8 WATER POLLUTION CONTROL FUND TO THE ENVIRONMENTAL REMEDIATION (BASIN)9 FUND; APPROPRIATING AND TRANSFERRING MONEYS FROM THE WATER POLLUTION10 CONTROL FUND TO THE AGRICULTURAL BEST MANAGEMENT PRACTICES (BMP) FUND;11 PROVIDING REQUIREMENTS FOR THE USE OF THE WATER POLLUTION CONTROL FUND;12 PROVIDING REAPPROPRIATION AUTHORITY FOR THE ARPA STATE FISCAL RECOV-13 ERY FUND; PROVIDING REQUIREMENTS FOR THE USE OF THE ARPA STATE FISCAL14 RECOVERY FUND; DIRECTING THE USE OF THE GENERAL FUND APPROPRIATION;15 PROVIDING A CONTINUOUS APPROPRIATION FOR CERTAIN COSTS OF THE ENDOW-16 MENT FUND INVESTMENT BOARD; PROVIDING FOR THE TRANSFER OF MONEYS FROM17 EARNINGS RESERVE FUNDS TO INCOME FUNDS; EXEMPTING THE APPROPRIATION FOR18 THE FOREST AND RANGE FIRE PROTECTION PROGRAM FROM EXPENSE CLASS TRANS-19 FER LIMITATIONS; PROVIDING REAPPROPRIATION AUTHORITY FOR THE CAPITAL20 DEVELOPMENT PROGRAM; EXEMPTING THE APPROPRIATION FOR THE DEPARTMENT OF21 PARKS AND RECREATION FOR OPERATIONS PROGRAM GRANTS FROM EXPENSE CLASS22 TRANSFER LIMITATIONS; APPROPRIATING AND TRANSFERRING MONEYS FROM THE23 GENERAL FUND TO THE SECONDARY AQUIFER PLANNING, MANAGEMENT, AND IMPLE-24 MENTATION FUND; APPROPRIATING AND TRANSFERRING MONEYS FROM THE GENERAL25 FUND TO THE WATER MANAGEMENT FUND FOR FLOOD MANAGEMENT; APPROPRIATING26 AND TRANSFERRING MONEYS FROM THE GENERAL FUND TO THE WATER MANAGEMENT27 FUND FOR WATER PROJECTS; DIRECTING THE USE OF FUNDS FOR WATER MANAGEMENT28 FUND PROJECTS; PROVIDING FOR ACCOUNTABILITY REPORTS; PROVIDING FOR29 CONDITIONS, LIMITATIONS, AND RESTRICTIONS; AND DECLARING AN EMERGENCY30 AND PROVIDING AN EFFECTIVE DATE.31

Be It Enacted by the Legislature of the State of Idaho:32

SECTION 1. There is hereby appropriated to Natural Resources the fol-33 lowing amounts to be expended according to the designated programs and ex-34 pense classes from the listed funds for the period July 1, 2026, through June35 30, 2027:36

2 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL I. DEPARTMENT OF ENVIRONMENTAL QUALITY:5 A. ADMINISTRATION AND SUPPORT SERVICES:6 FROM:7 Department of Environmental Quality (General)8 Fund9 $3,369,500 $1,825,700 $1,855,800 $7,051,000 Air Quality Permitting10 Fund11 232,900 51,600 23,500 308,000 Public Water System Supervision12 Fund13 350,300 73,000 74,500 497,800 Environmental Remediation (Box)14 Fund15 15,500 10,000 25,500 Environmental Remediation (Basin)16 Fund17 20,000 14,400 12,600 47,000 Department of Environmental Quality (Receipts)18 Fund19 351,700 111,100 95,900 558,700 Idaho Underground Storage Tank Program20 Fund21 59,100 15,900 18,400 93,400 IPDES Program22 Fund23 318,000 50,500 58,100 426,600 Bunker Hill Trust24 Fund25 4,200 6,800 5,900 16,900 Department of Environmental Quality (Federal)26 Fund27 1,680,000 1,211,600 1,180,200 4,071,800 ARPA State Fiscal Recovery28 Fund29 4,900 0 0 4,900 TOTAL30 $6,406,100 $3,370,600 $3,324,900 $13,101,600 B. AIR QUALITY:31 FROM:32 Department of Environmental Quality (General)33 Fund34 $5,297,200 $213,600 $5,510,800 Air Quality Permitting35 Fund36 1,526,800 59,700 1,586,500 Department of Environmental Quality (Receipts)37 Fund38 446,400 393,000 $300,000 1,139,400

3 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL Department of Environmental Quality (Federal)5 Fund6 1,242,600 1,971,200 1,241,400 4,455,200 TOTAL7 $8,513,000 $2,637,500 $1,541,400 $12,691,900 C. WATER QUALITY:8 FROM:9 Department of Environmental Quality (General)10 Fund11 $9,937,200 $1,765,500 $488,500 $12,191,200 Public Water System Supervision12 Fund13 1,677,800 299,700 1,977,500 Department of Environmental Quality (Receipts)14 Fund15 663,900 743,700 1,771,600 3,179,200 IPDES Program16 Fund17 1,371,400 196,400 1,567,800 Department of Environmental Quality (Federal)18 Fund19 6,542,500 13,440,000 2,333,200 22,315,700 ARPA State Fiscal Recovery20 Fund21 32,900 0 0 32,900 TOTAL22 $20,225,700 $16,445,300 $4,593,300 $41,264,300 D. COEUR D'ALENE BASIN COMMISSION:23 FROM:24 Department of Environmental Quality (General)25 Fund26 $214,500 $10,200 $224,700 Environmental Remediation (Basin)27 Fund28 186,800 15,500 202,300 Department of Environmental Quality (Federal)29 Fund30 16,100 0 $50,000 66,100 TOTAL31 $417,400 $25,700 $50,000 $493,100 E. WASTE MANAGEMENT AND REMEDIATION:32 FROM:33 Department of Environmental Quality (General)34 Fund35 $3,094,800 $156,200 $94,600 $3,345,600 Environmental Remediation (Box)36 Fund37 283,800 97,300 210,500 591,600

4 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL Environmental Remediation (Basin)5 Fund6 292,900 58,500 280,000 631,400 Department of Environmental Quality (Receipts)7 Fund8 1,067,200 1,166,600 51,800 2,285,600 Idaho Underground Storage Tank Program9 Fund10 296,800 25,000 321,800 Bunker Hill Trust11 Fund12 139,900 4,390,000 375,000 4,904,900 Department of Environmental Quality (Federal)13 Fund14 3,183,000 8,242,900 2,500,500 13,926,400 ARPA State Fiscal Recovery15 Fund16 13,400 0 0 13,400 TOTAL17 $8,371,800 $14,136,500 $3,512,400 $26,020,700 F. IDAHO NATIONAL LABORATORY OVERSIGHT:18 FROM:19 Department of Environmental Quality (General)20 Fund21 $179,100 $8,700 $187,800 Department of Environmental Quality (Federal)22 Fund23 1,301,200 1,318,800 $146,900 2,766,900 TOTAL24 $1,480,300 $1,327,500 $146,900 $2,954,700 DEPARTMENT25 TOTAL26 $45,414,300 $37,943,100 $3,324,900 $9,844,000 $96,526,300 II. DEPARTMENT OF FISH AND GAME:27 A. ADMINISTRATION:28 FROM:29 Fish and Game30 Fund31 $6,206,600 $5,893,100 $12,099,700 Fish and Game (Other)32 Fund33 1,071,600 283,800 1,355,400 Fish and Game Set-Aside34 Fund35 31,300 31,300 Fish and Game Set-Aside (Other)36 Fund37 22,200 22,200

5 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL Expendable Big Game Depredation5 Fund6 2,900 2,900 Fish and Game Expendable Trust7 Fund8 8,100 8,100 Fish and Game Nonexpendable Trust9 Fund10 3,600 3,600 Fish and Game (Federal)11 Fund12 4,473,700 5,841,300 10,315,000 TOTAL13 $11,751,900 $12,086,300 $23,838,200 B. ENFORCEMENT:14 FROM:15 Fish and Game16 Fund17 $13,500,400 $2,895,600 $16,396,000 Fish and Game (Other)18 Fund19 186,000 77,000 263,000 Fish and Game Set-Aside (Other)20 Fund21 20,600 20,600 Fish and Game Expendable Trust22 Fund23 26,400 26,400 Fish and Game (Federal)24 Fund25 2,300 6,700 9,000 TOTAL26 $13,688,700 $3,026,300 $16,715,000 C. FISHERIES:27 FROM:28 Fish and Game29 Fund30 $5,223,700 $7,691,400 $12,915,100 Fish and Game (Other)31 Fund32 3,655,800 8,333,200 11,989,000 Fish and Game Set-Aside33 Fund34 400,700 575,700 976,400 Fish and Game Set-Aside (Other)35 Fund36 179,200 165,700 344,900 Fish and Game Expendable Trust37 Fund38 36,000 333,000 369,000

6 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL Fish and Game Nonexpendable Trust5 Fund6 33,200 33,200 Fish and Game (Federal)7 Fund8 16,656,500 14,465,100 31,121,600 TOTAL9 $26,151,900 $31,597,300 $57,749,200 D. WILDLIFE:10 FROM:11 Fish and Game12 Fund13 $7,881,400 $6,625,600 $174,800 $14,681,800 Fish and Game (Other)14 Fund15 632,000 1,054,100 1,686,100 Fish and Game Set-Aside16 Fund17 192,200 3,666,000 3,858,200 Fish and Game Set-Aside (Other)18 Fund19 1,336,900 325,300 1,662,200 Expendable Big Game Depredation20 Fund21 1,800,000 1,800,000 Fish and Game Expendable Trust22 Fund23 319,400 896,100 1,215,500 Fish and Game Nonexpendable Trust24 Fund25 11,500 2,300 13,800 Fish and Game (Federal)26 Fund27 8,218,000 10,546,400 0 18,764,400 TOTAL28 $18,591,400 $23,115,800 $1,974,800 $43,682,000 E. COMMUNICATIONS:29 FROM:30 Fish and Game31 Fund32 $2,016,700 $704,800 $2,721,500 Fish and Game (Other)33 Fund34 49,600 35,700 85,300 Fish and Game Expendable Trust35 Fund36 30,900 89,000 119,900

7 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL Fish and Game (Federal)5 Fund6 1,908,800 518,600 2,427,400 TOTAL7 $4,006,000 $1,348,100 $5,354,100 DEPARTMENT8 TOTAL9 $74,189,900 $71,173,800 $1,974,800 $147,338,500 III. ENDOWMENT FUND INVESTMENT BOARD:10 FROM:11 Miscellaneous Revenue12 Fund13 $81,900 $14,500 $96,400 Endowment Earnings Administrative14 Fund15 718,600 204,700 923,300 TOTAL16 $800,500 $219,200 $1,019,700 IV. DEPARTMENT OF LANDS:17 A. BUSINESS SERVICES:18 FROM:19 General20 Fund21 $541,600 $415,100 $956,700 Indirect Cost Recovery22 Fund23 160,900 129,000 289,900 Department of Lands24 Fund25 942,200 671,100 1,613,300 Navigable Waterways26 Fund27 1,600 1,600 Endowment Earnings Administrative28 Fund29 2,898,400 3,230,300 6,128,700 TOTAL30 $4,544,700 $4,445,500 $8,990,200 B. FOREST RESOURCES MANAGEMENT:31 FROM:32 General33 Fund34 $1,138,400 $494,400 $20,000 $1,652,800 Indirect Cost Recovery35 Fund36 75,500 324,000 399,500

8 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL Department of Lands5 Fund6 1,604,500 908,100 2,512,600 Endowment Earnings Administrative7 Fund8 388,200 82,900 471,100 Community Forestry9 Fund10 20,000 20,000 40,000 Federal Grant11 Fund12 1,204,700 3,125,700 5,415,400 9,745,800 TOTAL13 $4,411,300 $4,955,100 $5,455,400 $14,821,800 C. TRUST LAND MANAGEMENT:14 FROM:15 General16 Fund17 $153,500 $2,200 $155,700 Department of Lands18 Fund19 172,200 279,000 451,200 Endowment Earnings Administrative20 Fund21 16,467,900 13,829,300 $50,000 30,347,200 TOTAL22 $16,793,600 $14,110,500 $50,000 $30,954,100 D. FOREST AND RANGE FIRE PROTECTION:23 FROM:24 General25 Fund26 $4,860,800 $766,100 $1,660,900 $7,287,800 Department of Lands27 Fund28 5,321,800 989,800 956,500 7,268,100 Endowment Earnings Administrative29 Fund30 57,500 57,500 Federal Grant31 Fund32 826,400 1,305,000 450,000 2,581,400 TOTAL33 $11,009,000 $3,060,900 $3,124,900 $17,194,800 E. SCALING PRACTICES:34 FROM:35 Department of Lands36 Fund37 $264,600 $58,200 $322,800

9 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL F. MINERALS, PUBLIC TRUST, OIL AND GAS:5 FROM:6 General7 Fund8 $936,900 $134,000 $1,070,900 Department of Lands9 Fund10 571,300 901,900 1,473,200 Oil and Gas Conservation11 Fund12 165,900 107,800 273,700 Navigable Waterways13 Fund14 1,022,400 443,800 1,466,200 TOTAL15 $2,696,500 $1,587,500 $4,284,000 DIVISION16 TOTAL17 $39,719,700 $28,217,700 $50,000 $8,580,300 $76,567,700 V. DEPARTMENT OF PARKS AND RECREATION -- PARK OPERATIONS PROGRAM:18 FROM:19 General20 Fund21 $3,217,100 $940,900 $4,158,000 Indirect Cost Recovery22 Fund23 325,200 199,600 524,800 Parks and Recreation24 Fund25 12,378,000 5,513,200 $420,000 18,311,200 Recreational Fuels26 Fund27 719,400 928,500 2,971,800 4,619,700 Parks and Recreation Registration28 Fund29 1,520,100 1,351,400 10,350,000 13,221,500 Miscellaneous Revenue30 Fund31 19,600 92,100 111,700 Public Recreation Enterprise32 Fund33 898,000 1,429,000 2,327,000 Parks and Recreation Expendable Trust34 Fund35 610,600 405,600 1,016,200 Federal Grant36 Fund37 1,339,500 631,200 4,227,500 6,198,200 TOTAL38 $21,027,500 $11,491,500 $17,969,300 $50,488,300

10 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL VI. DEPARTMENT OF WATER RESOURCES:5 A. MANAGEMENT AND SUPPORT SERVICES:6 FROM:7 General8 Fund9 $933,800 $919,700 $1,853,500 Indirect Cost Recovery10 Fund11 194,700 198,100 392,800 Water Administration12 Fund13 21,800 21,800 Miscellaneous Revenue14 Fund15 0 177,400 177,400 TOTAL16 $1,128,500 $1,317,000 $2,445,500 B. PLANNING AND TECHNICAL SERVICES:17 FROM:18 General19 Fund20 $4,044,500 $30,823,500 $6,713,400 $41,581,400 Indirect Cost Recovery21 Fund22 65,900 65,900 Aquifer Planning and Management23 Fund24 1,250,100 457,400 1,707,500 Miscellaneous Revenue25 Fund26 164,500 164,500 ARPA State Fiscal Recovery27 Fund28 50,000,000 50,000,000 Federal Grant29 Fund30 379,700 857,700 0 1,237,400 TOTAL31 $5,674,300 $32,369,000 $56,713,400 $94,756,700 C. WATER MANAGEMENT:32 FROM:33 General34 Fund35 $7,482,900 $2,274,300 $9,757,200 Indirect Cost Recovery36 Fund37 70,900 70,900

11 FOR1 FOR2 FOR FOR TRUSTEE AND PERSONNEL3 OPERATING CAPITAL BENEFIT COSTS4 EXPENDITURES OUTLAY PAYMENTS TOTAL Water Administration5 Fund6 1,742,500 235,000 1,977,500 Miscellaneous Revenue7 Fund8 1,121,200 320,200 1,441,400 Federal Grant9 Fund10 303,900 348,800 652,700 TOTAL11 $10,650,500 $3,249,200 $13,899,700 D. NORTHERN IDAHO ADJUDICATION:12 FROM:13 General14 Fund15 $291,800 $196,300 $488,100 Northern Idaho Adjudication16 Fund17 97,500 38,700 136,200 TOTAL18 $389,300 $235,000 $624,300 E. BEAR RIVER BASIN ADJUDICATION:19 FROM:20 General21 Fund22 $620,900 $162,500 $783,400 Bear River Basin Adjudication23 Fund24 97,500 0 97,500 TOTAL25 $718,400 $162,500 $880,900 DIVISION26 TOTAL27 $18,561,000 $37,332,700 $56,713,400 $112,607,100 GRAND TOTAL28 $199,712,900 $186,378,000 $3,374,900 $95,081,800 $484,547,600

SECTION 2. FTP AUTHORIZATION. In accordance with Section 67-3519,29 Idaho Code, each of the programs in Natural Resources is authorized no more30 than the following number of full-time equivalent positions at any point31 during the period July 1, 2026, through June 30, 2027, unless specifically32 authorized by the Governor. The Joint Finance-Appropriations Committee33 will be notified promptly of any increased positions so authorized.34 Department of Environmental Quality ..........................375.0035 Department of Fish and Game ...................................550.0036 Endowment Fund Investment Board ................................4.0037 Department of Lands ..........................................334.9338 Department of Parks and Recreation ............................195.8039

12 Department of Water Resources ................................171.001

SECTION 3. REMEDIATION PROJECT REPORTING REQUIREMENTS. Moneys de-2 posited into the Environmental Remediation (Basin) Fund shall be used for3 remediation of the Coeur d'Alene Basin in accordance with the Superfund4 contract with the Environmental Protection Agency. The Department of En-5 vironmental Quality shall submit an annual report to the Governor, the6 Legislature, and the Basin Environmental Improvement Project Commission on7 the remediation progress and the expenditures involved.8

SECTION 4. CASH TRANSFER FOR WASTE REMEDIATION. There is hereby ap-9 propriated to the Department of Environmental Quality and the Office of the10 State Controller shall transfer $1,500,000 from the Water Pollution Control11 Fund to the Environmental Remediation (Basin) Fund on July 1, 2026, or as12 soon thereafter as practicable for the period July 1, 2026, through June 30,13 2027, to be used for Superfund cleanup projects in the Coeur d'Alene Basin.14

SECTION 5. CASH TRANSFER FOR AGRICULTURAL BEST MANAGEMENT PRACTICES15 FUND. There is hereby appropriated to the Department of Environmental Qual-16 ity and the Office of the State Controller shall transfer $279,000 from the17 Water Pollution Control Fund to the Agricultural Best Management Practices18 (BMP) Fund on July 1, 2026, or as soon thereafter as practicable for the pe-19 riod July 1, 2026, through June 30, 2027.20

SECTION 6. REQUIREMENTS FOR USE OF THE WATER POLLUTION CONTROL FUND.21 The appropriation of moneys from the Water Pollution Control Fund in this22 act for the Department of Environmental Quality shall specifically super-23 sede the provisions of Section 39-3630, Idaho Code.24

SECTION 7. REAPPROPRIATION AUTHORITY FOR THE ARPA STATE FISCAL RECOV-25 ERY FUND. There is hereby reappropriated to the Department of Environmen-26 tal Quality any unexpended and unencumbered balances appropriated to the De-27 partment of Environmental Quality from the ARPA State Fiscal Recovery Fund28 for water infrastructure and remediation projects for fiscal year 2026 from29 the ARPA State Fiscal Recovery Fund, to be used for nonrecurring expendi-30 tures related to water infrastructure and remediation projects for the pe-31 riod July 1, 2026, through June 30, 2027. The Office of the State Controller32 shall confirm the reappropriation amount, by fund, expense class, and pro-33 gram, with the Legislative Services Office prior to processing the reappro-34 priation authorized herein.35

SECTION 8. REQUIREMENTS FOR USE OF THE ARPA STATE FISCAL RECOVERY FUND.36 It is the intent of the Legislature to provide no more than $325,000,00037 of ARPA funding to support construction of drinking water and wastewater38 projects. Moneys shall be appropriated from the ARPA State Fiscal Recovery39 Fund for this purpose. The Department of Environmental Quality may use the40 ARPA State Fiscal Recovery Fund to fund all eligible planning grant requests41 received consistent with existing processes. The Department of Environmen-42 tal Quality shall provide ARPA funding in the form of grants for construction43 of drinking water and wastewater projects using a tiered approach that pro-44

13 vides the highest level of grant funding to systems with the greatest level1 of need but least ability to pay, as determined by factors including size of2 system (smaller systems rank higher), monthly user rates, median income, and3 readiness to proceed. The Department of Environmental Quality may consider4 all projects meeting the intended criteria where costs were incurred after5 March 3, 2021, and where construction will be completed prior to December6 31, 2026. This includes funding cost overruns for existing state revolving7 loan-funded projects currently under construction if they are due to factors8 such as increased labor and material costs. The Department of Environmental9 Quality shall provide a written update of recipients to germane legislative10 committees upon approval by the Board of Environmental Quality. The Depart-11 ment of Environmental Quality shall submit a report to the Governor and the12 Legislature detailing progress and expenditures by January 12, 2027.13

SECTION 9. USE OF GENERAL FUND APPROPRIATION. Notwithstanding the pro-14 visions of Idaho Code, or any other provision of law to the contrary, the di-15 rector of the Department of Environmental Quality is prohibited from reduc-16 ing the allocation of General Fund moneys provided to the Lake Pend Oreille,17 Pend Oreille River, Priest Lake and Priest River Commission and the Bear Lake18 Regional Commission for the period July 1, 2026, through June 30, 2027.19

SECTION 10. CONTINUOUS APPROPRIATION -- ENDOWMENT FUND INVESTMENT20 BOARD. The Endowment Fund Investment Board is hereby granted continuous21 appropriation authority for consulting fees, custodial fees, investment22 manager fees, and other portfolio-related external costs for the period July23 1, 2026, through June 30, 2027.24

SECTION 11. TRANSFERS FROM EARNINGS RESERVE FUNDS -- ENDOWMENT FUND25 INVESTMENT BOARD. For the period July 1, 2026, through June 30, 2027, it is26 hereby appropriated and the Endowment Fund Investment Board shall trans-27 fer $117,278,400 as follows: $72,366,000 from the Public School Earnings28 Reserve Fund to the Public School Income Fund; $2,222,400 from the Agricul-29 tural College Earnings Reserve Fund to the Agricultural College Endowment30 Income Fund; $8,113,160 from the Charitable Institutions Earnings Reserve31 Fund to the Charitable Institutions Endowment Income Fund; $8,494,800 from32 the Normal School Earnings Reserve Fund to the Normal School Endowment In-33 come Fund; $3,585,600 from the Penitentiary Earnings Reserve Fund to the34 Penitentiary Endowment Income Fund; $7,465,200 from the Scientific School35 Earnings Reserve Fund to the Scientific School Endowment Income Fund;36 $7,776,000 from the Mental Hospital Earnings Reserve Fund to the Mental37 Hospital Endowment Income Fund; and $7,255,200 from the University Earnings38 Reserve Fund to the University Endowment Income Fund.39

SECTION 12. EXEMPTIONS FROM EXPENSE CLASS TRANSFER LIMITATIONS -- DE-40 PARTMENT OF LANDS. The Department of Lands is hereby exempted from the pro-41 visions of Section 67-3511(1) and (3), Idaho Code, allowing unlimited trans-42 fers between expense classes for all moneys appropriated to the Forest and43 Range Fire Protection Program for the period July 1, 2026, through June 30,44 2027. Legislative appropriations shall not be transferred from one fund to45 another fund unless expressly approved by the Legislature.46

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SECTION 13. REAPPROPRIATION AUTHORITY FOR THE CAPITAL DEVELOPMENT PRO-1 GRAM -- DEPARTMENT OF PARKS AND RECREATION. There is hereby reappropriated2 to the Department of Parks and Recreation any unexpended and unencumbered3 balances appropriated or reappropriated to the Department of Parks and4 Recreation for the Capital Development Program for fiscal year 2026 to be5 used for nonrecurring expenditures in the Capital Development Program for6 the period July 1, 2026, through June 30, 2027. The Office of the State Con-7 troller shall confirm the reappropriation amount, by fund, expense class,8 and program, with the Legislative Services Office prior to processing the9 reappropriation authorized herein.10

SECTION 14. EXEMPTIONS FROM EXPENSE CLASS TRANSFER LIMITATIONS -- DE-11 PARTMENT OF PARKS AND RECREATION. Notwithstanding the provisions of Section12 67-3511(2), Idaho Code, trustee and benefit payments appropriated to the De-13 partment of Parks and Recreation for grants in the Operations Program may14 be transferred to capital outlay in the Capital Development Program to re-15 flect grants awarded to the Department of Parks and Recreation for the period16 July 1, 2026, through June 30, 2027. Legislative appropriations shall not17 be transferred from one fund to another fund unless expressly approved by the18 Legislature.19

SECTION 15. CASH TRANSFER FOR AQUIFER MANAGEMENT -- DEPARTMENT OF WATER20 RESOURCES. Of the amount appropriated to the Department of Water Resources21 in Section 1 of this act for the Planning and Technical Services Program22 from the General Fund, the Office of the State Controller shall transfer23 $5,000,000 to the Secondary Aquifer Planning, Management, and Implementa-24 tion Fund on July 1, 2026, or as soon thereafter as practicable for the period25 July 1, 2026, through June 30, 2027, to be used for aquifer recharge and man-26 agement.27

SECTION 16. CASH TRANSFER FOR THE FLOOD MANAGEMENT PROGRAM -- DEPART-28 MENT OF WATER RESOURCES. Of the amount appropriated to the Department of29 Water Resources in Section 1 of this act for the Planning and Technical30 Services Program from the General Fund, the Office of the State Controller31 shall transfer $1,000,000 to the Water Management Fund on July 1, 2026, or as32 soon thereafter as practicable for the period July 1, 2026, through June 30,33 2027, to be used for hydrologic data collection, monitoring and modeling,34 flood-damaged stream channel repair, stream channel improvement, flood risk35 reduction, or flood prevention projects. These moneys shall be administered36 by the Idaho Water Resource Board through a competitive, matching grant37 process that prioritizes projects based on the public benefits they provide.38

SECTION 17. CASH TRANSFER FOR WATER PROJECTS -- DEPARTMENT OF WATER RE-39 SOURCES. There is hereby appropriated to the Department of Water Resources40 and the Office of the State Controller shall transfer $30,000,000 from the41 General Fund to the Water Management Fund on July 1, 2026, or as soon there-42 after as practicable for the period July 1, 2026, through June 30, 2027, to be43 used for water projects.44

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SECTION 18. WATER MANAGEMENT FUND PROJECTS. Of the amount appropriated1 to the Department of Water Resources in Section 1 of this act, $30,000,0002 shall be used for water projects pursuant to the following criteria:3 (1) The Water Resource Board shall use the funds for planning, con-4 struction, rehabilitation, reconstruction, and improvement of water infra-5 structure throughout the state. Projects shall prioritize:6 (a) Aquifer recharge, ground water management, and other projects7 aimed at sustaining aquifer health and long-term water availability;8 (b) Development and rehabilitation of water storage and conveyance9 systems, including reservoirs, diversion structures, pipelines, and10 canals;11 (c) Water supply and delivery improvements that enhance efficiency and12 conservation; and13 (d) Emergency water infrastructure repairs and upgrades to ensure the14 resilience of vital water systems.15 (2) Of the moneys appropriated in a single year, no more than 50% of the16 funds appropriated in this section may be used within a single board dis-17 trict, as defined in section 42-1732, Idaho Code, unless there are no com-18 peting funding applications for water infrastructure projects in other dis-19 tricts for the current fiscal year.20 (3) The Department of Water Resources shall provide a report to the21 Joint Finance-Appropriations Committee, to the relevant germane legisla-22 tive committees, and to the Budget and Policy Analysis Division of the23 Legislative Services Office no later than December 5, 2026. This report24 shall include information required in Section 42-1760(3), Idaho Code, in a25 format determined in consultation with the Budget and Policy Analysis Divi-26 sion of the Legislative Services Office.27

SECTION 19. ACCOUNTABILITY REPORTS. Funds specifically identified in28 statute or in an appropriation act as intended for a certain purpose may29 be used only for that purpose. Funds provided in this act are subject to30 accountability reports and management reviews in accordance with Section31 67-702, Idaho Code, provided the Legislative Services Office auditor has32 sufficient resources to conduct those reports. State agencies that are33 authorized to contract for outside audits shall submit those reports to the34 Joint Finance-Appropriations Committee when those reports become avail-35 able.36

SECTION 20. CONDITIONS, LIMITATIONS, AND RESTRICTIONS. Appropriations37 made pursuant to this act are subject to the conditions, limitations, and re-38 strictions specified in this act.39

SECTION 21. An emergency existing therefor, which emergency is hereby40 declared to exist, this act shall be in full force and effect on and after41 July 1, 2026.42