This bill requires public utilities in Montana to create and submit detailed plans by June 1, 2026, outlining how they intend to transition to 100% renewable energy sources for their retail sales. The plans must include specific options, timelines, and challenges related to achieving this goal, with hydroelectric resources potentially included as part of the renewable mix. Additionally, each utility must address how its proposed transition will reduce greenhouse gas emissions in compliance with state constitutional requirements. The Energy and Telecommunications Interim Committee will review these plans, gather public feedback, and provide recommendations to the next legislature for further action.
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.
HB 579 would have required local governments, such as cities, counties, and irrigation districts, to establish and continually fund capital reserve accounts. To be eligible for grants and loans from programs like the Renewable Resource Grant and Loan Program, these local governments would need to deposit either 10% of certain water-related revenues or $5 per acre-foot for specific dam owners into these accounts. The funds in these accounts could only be used for infrastructure projects with an estimated cost of at least $50,000. This bill would also have made a local government's ability to fund these capital reserve accounts a consideration in prioritizing financial assistance.
HB 811 aimed to increase the maximum generating capacity for customer-generated electricity systems that use net metering. Currently, systems like those powered by solar, wind, or hydropower, which can feed excess electricity back to the grid, are limited to 50 kilowatts. This bill proposed to raise that capacity limit to 100 kilowatts. This change would directly affect customer-generators by allowing them to install larger renewable energy systems on their property and still qualify for net metering.
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 294 requires Montana's public utilities (like electricity providers) to create a detailed plan by May 2026 showing how they will source 100% of their retail electricity from renewable energy (including hydroelectric power) and reduce greenhouse gas emissions. The plan must outline specific options, timelines, and challenges for achieving these goals, aligning with Montana's constitutional duty to protect the environment. Utilities must submit these plans to the Energy and Telecommunications Interim Committee by June 2026, which will review them, gather public input, and recommend changes to the next legislature. The bill takes immediate effect upon passage but is currently inactive after dying in committee.
