Energy (Coal)

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.

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.

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.