Energy (Coal)

This bill declares that the Montana Department of Environmental Quality has full authority over air quality, water quality, and emissions standards for existing fossil fuel-fired electric generating units within the state. It designates the department as the sole oversight and permitting authority for coal, natural gas, and oil power plants currently operating in Montana, while asserting that federal agencies lack authority to regulate these facilities without significant economic investment from owners and ratepayers. The legislation includes a contingency clause that would void the bill if the federal Environmental Protection Agency repeals specific rules from May 2024, and it takes effect immediately upon passage and approval.

SB 343 would change how Montana allocates remaining coal severance tax revenue after other specified uses. Currently, until 2027, interest income from the coal trust fund is sent to the general fund for specific programs like agriculture development, small business centers, and library services. This bill amends the law to redirect all remaining coal tax revenue (after other allocations) directly to the coal severance tax permanent fund starting July 1, 2027, instead of the general fund. The policy change would shift funding away from current general fund programs toward the coal trust fund, which supports coal-dependent communities and projects.

HB 8 approves specific renewable resource projects and reauthorizes others, enabling the Department of Natural Resources and Conservation (DNRC) to provide loans for them. These loans are available to various political subdivisions and local governments for purposes such as dam rehabilitation and irrigation system improvements. To fund these projects, the bill authorizes the issuance of up to $121,198,444 in coal severance tax bonds. Loan disbursements are subject to conditions including DNRC approval of the project's scope and budget, and the execution of a loan agreement.

SB 445, "Montana Transparency in Energy Economics Act," would have required investor-owned utilities to create a public energy dashboard by June 2026 showing real-time data on power sources, grid contributions, and costs per megawatt hour. Public utilities would have needed to provide quarterly reports detailing power sources (like coal, wind, solar), consumption by customer class, and costs. The bill directly affects residential and small commercial customers (defined as using ~750 kWh monthly) by making energy billing costs more visible. However, the bill died in committee on May 23, 2025, and never became law.