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SB 324

FUNDS/FUNDING: Provides for changes to the Water Sector Program. (gov sig) (EN NO IMPACT See Note)

2026 Regular Session Introduced by Mike Reese

SB 324 clarifies governance and guidance for the Water Sector Program, extends review timelines, strengthens grant compliance, and allows limited scope changes without full re-appr

Effective date 5/15/2026.
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Bill Summary · SB 324

Summary of Bill: SB 324 (2026) – Louisiana Water Sector Program

Purpose and Intent

SB 324 amends and reenacts provisions governing Louisiana’s Water Sector Program (WSP) to refine administration, funding processes, and oversight. The bill aims to streamline grant administration, clarify eligibility and governance for emergency and project grants, and strengthen compliance with rate studies and project scope changes. It updates timelines, adds guidance requirements, and clarifies roles within the program.

Key Provisions and Changes

  • Administration and Governance

    • Maintains the Water Sector Program and the Water Sector Commission.
    • Removes the Office of Facility Planning and Control from administering the program and the related working panel that previously submitted funding recommendations.
    • The program’s administration remains in consultation with the Office of Community Development, the Louisiana Department of Health, and the Department of Environmental Quality, but the day-to-day panel structure and staffing changes are enacted.

  • Emergency Subfund and Subfund Grants (O)(12)-(14)

    • Clarifies eligibility and use of Emergency Subfund deposits:
    • Emergency grants address or mitigate emergencies for community water or sewer systems under court-appointed receivership or fiscal administration.
    • Any emergency grant funding must follow the guidance for emergencies and related expenses (receivership, limited fiscal administrator expenses).

  • Guidance and Application Period Requirements (New and Updated)

    • The division must promulgate guidance for emergency grants and new grants (awarded after July 1, 2024) including:
    • Application requirements, submission and approval deadlines, rating criteria, rate study requirements, and matching fund requirements.
    • Procedures for prioritizing critical infrastructure needs and for requests/approvals of emergencies, limited fiscal administrator, and receivership expenses.
    • The guidance must also address rate study requirements and matching funds, and define approval processes for limited fiscal administrator expenses.

  • Timeline Adjustments

    • Extends the period for the division to submit project ratings to the commission from 45 days to 60 days after the application period ends.

  • Funding Recommendations and Award Decisions

    • The commission may submit recommendations for subsequent grant awards to the Joint Legislative Committee on the Budget (JLBC) based on panel ratings without requiring a new application period.
    • The commission may rescind any grant award if the recipient fails to comply with the approved guidance.

  • Compliance and Eligibility

    • Grant recipients failing to comply with rate study requirements become ineligible for future WSP grants.
    • The commission may approve minor modifications to the scope of work of the original grant award without full Commission approval, provided changes do not affect the project’s purpose (e.g., minor technical changes, means/methods of construction).

Affected Parties

  • Primary Beneficiaries: Community water systems, community sewer systems, and local governing authorities seeking WSP grants.
  • Administrative Bodies: Louisiana Division of Administration (Office of Facility Planning and Control), Office of Community Development, Louisiana Department of Health, and Department of Environmental Quality (with adjusted roles as described).
  • Oversight and Legislative Bodies: Water Sector Commission; Joint Legislative Committee on the Budget for subsequent grant award recommendations.

Procedural and Timeline Aspects

  • Effective date: Upon signature by the governor or lapse of time for gubernatorial action.
  • Deadlines and processes for emergency grant guidance and approvals are updated, with added flexibility for ongoing prioritization updates.
  • New or updated guidance is to be promulgated and reviewed/approved by the Commission; changes to guidance require Commission approval.

Bottom Line

SB 324 modernizes and clarifies the governance, guidance, and timing of the Water Sector Program, enhances oversight for emergency and new grants, extends review timelines, and strengthens compliance requirements, while allowing targeted scope adjustments without full re-approval.

Compiled from official sources — confirm details with the bill’s official record.

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