SB 406 Montana Senate · 2025 Regular Session

Establishing utility energy conservation efficiency standards

SB 406 would require Montana's investor-owned utilities to implement energy conservation programs achieving at least 1% of their average annual electricity sales in savings by 2026. Utilities must conduct biennial assessments to identify cost-effective conservation opportunities (like efficient appliances, lighting, and grid improvements) and submit plans for commission approval. The law mandates that programs be funded through customer rates, with utilities allowed to recover costs and share in rewards for successful conservation investments. It aims to reduce peak electricity demand, improve grid reliability, and defer costly infrastructure investments without specifying outcomes.

Issues: ✓ Energy ✓ Environment

Bill status died 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 21, 2025 Last action May 23, 2025

Maddy AI version diff · 1 comparison

What changed between versions

LC2826.pdf → SB0406_1.pdf · 5 edits

MODERATE

The bill was renumbered from LC 2826 to SB 406.1 and updated to reflect Senate sponsorship. The most significant substantive change is a redefinition of 'energy conservation investments' to focus on demand-side consumption rather than generation, distribution, or transmission. The bill also clarifies the energy conservation efficiency standard and expands rulemaking authority to include stakeholder processes and public communication requirements.

Scope change

The definition of energy conservation investments was narrowed from generation, distribution, and transmission to focus specifically on demand-side consumption programs, which changes what types of utility programs qualify under the bill.

DEFINITION

Redefinition of 'energy conservation investments' to focus on demand-side consumption rather than generation, distribution, or transmission investments.

REQUIREMENT

Added requirement for a stakeholder process to consider and recommend energy conservation programs for commission approval.

Added requirement for utilities to educate and communicate program objectives and achievements with the general public, consumers, and ratepayers.

Added requirement for the commission to adopt rules addressing allocation of program funds for each customer class and methodology for recovery of program costs.

Added requirement that the annual energy conservation target may not be lower than 1% of retail load as identified in section 3.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 28, 2025

Amended

(S) Tabled in Committee - (S) Energy, Technology & Federal Relations

upper

Feb 24, 2025

Committee

(S) Referred to Committee - (S) Energy, Technology & Federal Relations

upper

Feb 21, 2025

Introduced

(S) Introduced

upper

1 primary · 0 co-sponsors