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 505 would amend Montana's zoning laws to allow local governments to prohibit the construction of wind energy facilities by preventing utility companies from connecting power from these projects. Specifically, it targets subsection (28) of Section 7-1-111, which would permit local governments to block utility connections for wind generation facilities defined under state law. This bill directly affects wind energy developers and local planning authorities, as it removes a key barrier to project development. The policy change focuses on utility interconnection as the mechanism for restricting wind facility construction, rather than general zoning rules. The bill did not become law, as it died in committee in 2025.

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.

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.