Energy (Solar)

This bill creates a new 10% severance tax on electricity produced in Montana using non-coal sources such as wind, solar, or hydroelectric power, while exempting coal-generated electricity from the tax. The tax is calculated based on the gross sale price of the electricity at the point of production, and producers must file quarterly returns with the Department of Revenue to report and pay the tax. Revenue collected from this tax will be placed in a special state account and used to fund local government infrastructure projects that were traditionally supported by coal severance tax revenue. Additionally, the bill reduces the existing coal severance tax rate to match the new electrical energy production tax rate, creating a revenue-neutral transition between energy sources.

This bill (LC 859) proposed restricting how power generated by wind and solar facilities located in Montana could be sold. It would have directly affected Montana-based renewable energy producers and potentially utilities purchasing that power. The bill aimed to limit sales of such power outside Montana but was never enacted. The draft was placed on hold and ultimately died in the legislative process in May 2025, meaning no policy changes were implemented.

HB 326, titled the "State Energy Resource Severance Act," would establish a new 10% tax on the sale price of electrical energy produced in the state. This tax would apply to electricity generated from sources such as water, wind, and solar, but specifically exempts coal-fired electrical generation. The bill also reduces the existing coal severance tax rate to match this new electrical energy production tax rate. Revenue from this new tax would be allocated to special accounts, primarily for local government infrastructure projects traditionally funded by coal.