Energy

SB 81 authorizes Montana's state board to lease public lands for underground storage of natural gas or liquefied gas (including carbon dioxide and methane), primarily affecting natural gas utilities operating in Montana. Key provisions include requiring lessees to pay for remaining natural gas deposits in the land, limiting bonds to $20,000 per lease, and mandating lease terms to prevent waste or damage to gas deposits. The bill also grants the state board rulemaking authority over these leases and forfeiture procedures for violations. This legislation failed to pass, dying in committee after its third reading failed in March 2025.

SB 349 would have transferred authority over air and water quality regulations for existing fossil fuel power plants in Montana from the federal Environmental Protection Agency (EPA) to the state Department of Environmental Quality (DEQ), making DEQ the sole permitting authority for these facilities. It claims federal EPA rules lack authority to restrict plant operations without requiring "significant economic investment" from plant owners and utilities. The bill includes a contingency that would void it if the EPA repeals two specific 2024 rules (89 Fed. Reg. 38508 and 39798). This bill died in committee in May 2025 and never became law.

Senate Bill 333 repeals the termination date for the existing coal severance tax coal washing credit. This credit, previously set to expire on July 1, 2027, will now continue indefinitely. The bill directly affects coal mining companies and processors that utilize coal washing and are subject to the coal severance tax, allowing them to continue claiming this tax credit.

HB 703 exempts specific state and local agencies in Montana from analyzing greenhouse gas emissions during certain environmental reviews. The bill states that the state department and local building departments are no longer required to analyze greenhouse gas emissions from covered appliances when adopting or enforcing building codes. It also exempts the state department from analyzing greenhouse gas emissions from new motor vehicles, engines, and nonroad vehicles, and emissions originating outside the state's borders. The bill cites federal preemption laws as the basis for these exemptions from environmental review.

House Joint Resolution 17 is a resolution from the Montana Legislature urging the U.S. Congress and President to take actions to promote American energy production. It calls for reforming and streamlining federal permitting obligations and revising environmental regulations that are deemed not to align with national security interests. The resolution specifically recommends that the Environmental Protection Agency immediately review and potentially suspend, revise, or rescind certain power plant regulations issued in May 2024.