Energy

SB 171 requires that 10% of excess state general fund revenue, after meeting budget stability and capital projects fund thresholds, be transferred to the Montana coal severance tax permanent fund (coal trust fund). This bill amends Montana's budget law to direct a portion of surplus funds - specifically, funds exceeding established reserve levels - to the coal trust fund instead of remaining in the general fund. The transfer applies when the budget stabilization reserve fund and capital projects fund exceed 16% and 12% of general revenue appropriations, respectively. The coal trust fund, which supports coal-related programs, would receive this additional funding without altering the state's primary budget processes.

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.

House Bill 696 establishes a framework for the legislative approval of spent nuclear fuel reprocessing facilities within Montana. It authorizes such facilities if they reprocess fuel from in-state or out-of-state sources, receive a state recommendation from the Department of Environmental Quality, and obtain a federal license from the Nuclear Regulatory Commission. The bill also amends existing law, requiring companies applying to federal energy or nuclear regulatory commissions to notify the state's Department of Environmental Quality and pay a fee to support the department's review and participation in federal proceedings.