BILLS WE SUPPORTED

About 600 Montanans rallied on February 21 in front of the Capitol for clean energy jobs and safeguarding of environmental laws at the "For the Love of Montana" rally.

Renewables

HB 59 INCREASING RENEWABLE ENERGY PRODUCTION – sponsored by Rep. Tony Belcourt (D-Box Elder), changes the definition of an eligible renewable energy resource to include updates to existing hydroelectric projects, making the increases in production associated with hydroelectricity improvements entitled to count toward public utilities’ 15% renewable energy standard and as renewable energy credits. This bill passed the House 95-1, passed the Senate 32-8, vetoed by the Governor on April 28.

HB 78 EXPANDING THE DEFINITION OF LOCAL OWNERS IN THE RENEWABLE ENERGY STANDARD – sponsored by Rep. Rob Cook (R-Conrad), clarifies which community renewable energy projects public utilities can use to purchase renewable energy credits and electricity output. This bill passed the House 100-0, passed the Senate 49-1, and was signed by the Governor on March 26.

SB 332 INCREASING MONTANA’S RENEWABLE ENERGY STANDARDsponsored by Sen. Kendall Van Dyk (D-Billings), would increase the amount of energy Montana utilities produce from our abundant renewable resources such as sun and wind from 15% to 25% by 2025. The current renewable energy standard has brought affordable power, good-paying jobs, and rural prosperity to Montana. Increasing the standard will set the state on a path of progress by building on these benefits. This bill was tabled in the Senate Energy and Telecommunications Committee on a 7-5 party-line vote. Blast motion from Senate floor failed 22-28 on February 21.

MEPA and citizen participation

SB 416 RESTORING BALANCE AND PROTECTIONS TO MEPA sponsored by Sen. Carol Williams (D-Missoula), would give the Montana Environmental Policy Act substantive enforcement authority and expand the role of public comments in the environmental review process. This bill would ensure that Montanans’ right to private property, a clean and healthful environment, and public comment are all guaranteed in the MEPA process. This bill was tabled in the Senate Natural Resources Committee on March 26.

Eminent domain and property rights

HB 295 PREVENTING FUTURE SPLIT ESTATES WITH WIND RESOURCES – sponsored by Rep. Rob Cook (R-Conrad), protects the ability of landowners to sign easements with wind developers and prevents the severability of the wind resource estate from the surface estate. This bill is an important step to ensuring that future split estates are not written into the law with the development of wind energy in Montana. This bill passed the House 98-0, passed the Senate 41-9, and was signed by the Governor on April 21.

Agriculture

HB 616 FIXING THE AG PROPERTY TAXsponsored by Rep. Lee Randall (R-Broadus), corrects the Department of Revenue’s errors in calculating the phase-in value of agriculture property in 2009, 2010, and 2011. HB 616 would give taxpayers a refund from the state general fund for state and local property taxes based on the recalculation mandated by this bill. This bill passed the House 100-0, passed the Senate 39-11. Governor vetoed bill on May 10.

SJ 19 ENCOURAGING AND PROMOTING MONTANA FARM TO SCHOOL PROGRAMS sponsored by Sen. Mary Caferro (D- Helena), is a resolution to support curriculum opportunities that will educate students about healthy nutrition and encourage schools to purchase food from local producers. The resolution proposes designating a week in October to supporting Montana Farm to School programs in schools across Montana. This bill passed the Senate 36-13 and passed the House Education Committee 10-5. Died in standing committee on April 28.

Taxation

SB 401 ESTABLISHING A TRUST FUND FOR OIL AND GAS TAXES sponsored bySen. Ron Erickson (D-Missoula), would place a constitutional initiative on the ballot that would establish a permanent oil and gas trust fund, similar to the coal trust fund. The oil and gas trust fund would be funded by at least 25% of existing taxes on oil and gas production. This bill was tabled in Senate Taxation on March 25.

SB 408 REVISING THE OIL AND GAS TAX HOLIDAY sponsored by Sen. Christine Kaufmann (D-Helena), would amend the existing tax holiday, which gives oil, and gas operations a tax break for the first 12-18 months of production on new wells. SB 408 creates a trigger price for the tax holiday and would mean an increase in tens of thousands of dollars annually in tax revenues for the state. This bill was tabled in Senate Taxation on March 24.

BILLS WE OPPOSED

Hunters, anglers, and outdoor recreationists called for environmental protections at the "For the Love of Montana" rally February 21 at the state Capitol.

Hard-rock mining

SB 306 OVERTURN BAN ON CYANIDE AND VAT LEACH OPEN-PIT MINING – sponsored by Sen. Terry Murphy (R-Cardwell), could potentially overturn the ban on cyanide heap leach open-pit mining by allowing any new mine to process materials at an existing, grandfathered mine, that can use cyanide heap leaching processing. This bill alters the language from ballot Initiative 137 that passed in 1998 to ban cyanide heap leach open-pit mining in Montana, and which was reaffirmed by voters in 2004 when voters passed I-147 by 57%. This bill passed the Senate 29-21, passed the House  62-37, and was vetoed by the Governor on April 13.

SB 312 REVISING METAL MINE LAWS – sponsored by Sen. Chas Vincent (R-Libby), seeks to significantly increase a mining permit applicant’s power over the permitting process by specifically granting to companies the power to veto any permit stipulations required by the DEQ. This bill passed the Senate 31-18, passed the House 76-23; Governor’s amendments adopted by House 69-30 and adopted by Senate 35-15. Signed by Governor on May 13.

Renewables

HB 237 REPEALING THE COMMUNITY RENEWABLE ENERGY PROJECT REQUIREMENTS IN THE RENEWABLE ENERGY STANDARD – sponsored by Rep. Mike Menahan (D-Helena), eliminates the requirement that public utilities purchase energy credits and electricity output from small, locally owned renewable energy projects. The effect of this bill is particularly acute in rural areas, where the community requirement has aimed to spread the benefits of new development across the state. This bill passed the House 77-21 but failed second reading in the Senate 33-17 on March 25.

SB 104 REMOVING INCENTIVES FOR ENERGY CONSERVATION AND EFFICIENCY – sponsored by Sen. Jason Priest (R-Red Lodge), would effectively prohibit the Public Service Commission  from implementing inverted block rates, which create an economic incentive for consumers to use less energy in their homes and businesses. This bill passed the Senate 28-22, but was tabled in the House Federal Relations, Energy and Telecommunications Committee on March 23.

SB 109 STRIPPING THE RENEWABLE ENERGY STANDARD – sponsored by Sen. Debbie Barrett (R-Dillon), allows all future hydroelectric energy to be considered an eligible renewable resource under Montana’s renewable energy standard. This bill essentially eliminates any incentive for the development of new renewable energy in Montana since regulated utilities already have sufficient quantities of hydroelectric energy in their portfolios. This bill passed the Senate 33-17, passed the House 66-33, but was vetoed by the Governor on April 13; override attempt failed.

SB 159 CREATING IMPOSSIBLE HURDLES FOR ENERGY EFFICIENCY STANDARDS FOR BUILDINGS – sponsored by Sen. Jason Priest (R-Red Lodge), revises the state building code to require that the Department of Labor and Industry to demonstrate that adopting energy-efficient construction standards will provide enough energy savings to pay for the purchase and installation of any equipment or materials within 5 years of occupancy, an unrealistic expectation that effectively eliminates any standard of energy efficiency. The measure would mean that new buildings would rarely meet efficiency standards that save money and decrease our dependence on dirty energy, costing taxpayers more money in the long haul. This bill passed the Senate 28-21, passed the House 63-35, but was vetoed by the Governor on April 13.

SB 226 CHARGING HOMES AND BUSINESSES EXTRA FEES FOR ENERGY INDEPENDENCE – sponsored by Sen. Jason Priest (R-Red Lodge), would charge energy-independent utility customers who produce more energy than they need to use an extra fee for transmission, severely undercutting any incentive for energy independence. This bill would result in a 33% increase in power bills for the typical net-metered customer such as rooftop solar and backyard wind owners. This bill passed the Senate 26-24 and was tabled in the House Federal Relations, Energy, and Telecommunications Committee on March 23.

SB 305 CODIFYING A STATE ENERGY POLICY – sponsored by Sen. Verdell Jackson (R-Kalispell), adds a long list of energy sources to the state energy policy that do not belong in code with language that speaks very favorably of coal development. This bill passed the Senate 28-22, passed the House 68-31. Governor’s amendatory veto adopted by Senate 37-13 and House by 84-15. Signed by Governor on May 12.

SB 330 INCREASING EXEMPTIONS IN THE RENEWABLE PORTFOLIO STANDARD – sponsored by Sen. Edward Walker (R-Billings), weakens the waiver and noncompliance provisions of the renewable energy standard so that compliance with the RES becomes almost voluntary. This bill would allow a public utility to apply for an indefinite waiver from complying with the RES. This bill passed the Senate 28-22 and passed the House 66-32, and was vetoed by the Governor on April 21.

MEPA and citizen participation

HB 292 CONSITUTIONAL AMENDMENT WEAKENING RIGHT TO CLEAN AND HEALTHFUL ENVIRONMENT – sponsored by Rep. Dan Kennedy (R-Laurel), sought to amend the Montana Constitution, changing our inalienable right to a clean and healthful environment to read “a clean, healthful, and economically productive environment.” The supporters of this amendment have provided no definitions or examples of what an “economically productive environment” would be. The result of this vague and confusing addition would be years of bitter legal battles attempting to define and interpret the new language, all aimed at weakening this fundamental right of Montana citizens. The measure needed 100 votes between both chambers to make it on the ballot. This bill passed the House 63-32 and failed in the Senate 26-24 on March 28. With only 89 votes in favor, HB 292 will not be on the ballot.

SB 317 FURTHER WEAKENING THE MONTANA ENVIRONMENTAL POLICY ACT – sponsored by Sen. Chas Vincent (R-Libby), dramatically limits the information an agency can collect and analyze when conducting environmental impact statements. It prohibits an agency from considering any alternatives to the proposed project unless a project sponsor supports the alternative. This bill is a fundamental rewrite of the state’s cornerstone environmental law and will significantly hurt the public when trying to weigh in on decisions affecting landowners. This amended bill passed the Senate 26-21 and was tabled in the House Federal Relations, Energy, and Telecommunications Committee on April 7.

SB 233 LAYING WASTE TO THE MONTANA ENVIRONMENTAL POLICY ACT – sponsored by Sen. Jim Keane (D-Butte), eliminates the courts’ ability to prevent a project from proceeding if it fails to comply with the Montana Environmental Policy Act. This bill also eliminates the requirement for alternative analysis on environmental impact statements for private projects. This bill passed the Senate 30-20 and passed the House 74-25. This bill was amended and passed the House 74-25 and passed Senate 32-18. Governor allowed it to become law.

Coal, oil, and gas

HB 479 ALLOWING MICROBIAL CONVERSION OF HYDROCARBONS TO METHANE – sponsored by Rep. Sterling Small (R-Busby), clarifies that microbial conversion wells are not considered in situ mining and are thus legal. The microbial conversion process is still in its early phases of development and there are potential risks associated with groundwater contamination. This bill passed the House 78-20, passed the Senate 29-20, and was signed by the Governor on April 15.

HB 533 ACCOMMODATE COMPANIES LEASING COAL – sponsored by Rep. Tom Berry (R-Roundup), HB 533 makes the coal-leasing process less stringent and allows state land leased for coal development to be leased at a cheaper value than current law allows.  This bill seeks to attract companies to come to Montana to build more mines and increase coal development, destroying our mountains and prairies, polluting our groundwater, and leaving Montana taxpayers to pay to clean up the messes. This bill passed the House 76-22, passed the Senate 39-11; Governor’s amendatory veto adopted by House 78-22 and by Senate 40-10. Signed by Governor on May 6.

HB 593 LIMITING OVERSIGHT OF MERCURY TOXINS – sponsored by Rep. Duane Ankney (R-Colstrip), prohibits the Montana Board of Environmental Review from adopting mercury rules that are more stringent than federal regulations (of which there are currently none). This bill severely limits Montana’s ability to control and monitor mercury, often produced by mines, that can potentially harm our land, water, wildlife, and can have serious health effects on effected communities. It would actually allow coal-fired power plants to turn off their mercury abatement equipment, thus increasing mercury pollution in Montana’s skies. This bill passed the House 78-21, passed the Senate 48-2, and a conference committee was appointed to negotiate amendments. Conference committee report passed House 69-29, but failed in Senate 20-30.

SB 292 CODIFY DEFINITION OF IN SITU GASIFICATION FOR COAL – sponsored by Sen. Alan Olson (R-Roundup), provides a definition for in situ coal gasification which permits the contamination of groundwater within the underground mining area caused by in situ gasification. This new definition could potentially legalize contamination of surrounding underground aquifers. This bill passed the Senate 31-19, passed the House 69-28. Governor allowed bill to become law.

SB 297 PROVIDING A SEPARATE PROCESS FOR COAL BENEFICIATION – sponsored by Sen. Jeff Essman, (R-Billings), clarifies that a coal preparation facility does not include a facility where coal is prepared and then converted into another energy form. It exempts coal beneficiation plants from the Strip and Underground Mining Reclamation Act, and is incongruent with the federal Office of Surface Mining definitions. This bill passed the Senate 44-6, passed the House 70-28. Signed by Governor on May 13.

SB 415 REVISING OIL AND GAS LEASING LAWS – sponsored by Sen. Bob Lake (R-Hamilton), would reduce the royalty payments that oil and gas operations have to pay toward the permanent school trust fund by approximately $4.5 million per year. This bill would also require the state to share in the cost of transporting oil to market, resulting in significant costs to the state. This bill passed the Senate 31-19, passed the House 68-31, vetoed by Governor on April 29.

Eminent domain and private property rights

HB 198 GRANTING PRIVATE CORPORATIONS POWER OF EMINENT DOMAIN – sponsored by Rep. Ken Peterson (R-Billings), broadens the right of public utilities to condemn private property under eminent domain. HB 198 seeks to set a precedent that would allow private corporations to take an individual’s private property for a private profit-making project that has no demonstrated public need. This bill passed the House 69-30 and was tabled in the Senate Energy and Telecommunications Committee. The Senate blasted the bill out of committee on a 26-23 vote and passed the bill 28-22. Governor allowed bill to become law.

HB 402 EASE PERMITTING PROCESS FOR SAND AND GRAVEL MINES IN RESIDENTIAL AREASsponsored by Rep. Matthew Rosendale (R-Glendive), prohibits local governments from excluding an open-cut sand or gravel mine from an area that was zoned as residential after the application for the mining operation had been filed. This bill severely limits property owners’ rights in preventing large-scale mining operations from opening on neighboring properties. This bill passed the House 64-35 and is tied up in the Senate with second reading postponed indefinitely.

Water rights

HB 24 AUTHORIZING MARKETING OF WATER IN MONTANAsponsored by Rep. Bill McChesney (D-Miles City), marks a significant diversion from Montana’s prior-appropriation doctrine of water law, allowing water rights holders to market water for the purposes of mitigation and aquifer recharge within the state. The law could mean future speculation over water and the potential that private companies could hold and market water in the state. This bill passed the House 67-33, passed the Senate 42-7, and was signed by the Governor on March 23.

HB 497 SENDING MONTANA’S WATER OUT OF STATEsponsored by Rep. Christy Clark (R-Choteau), revises the right to appropriate water by permit. It repeals the prohibition on appropriations of more than 4,000 acre feet annually or greater than 5.5 cubic feet per second. The law has ramifications for transfers of water out of state and coal bed methane development in southeastern Montana. This bill passed the House 80-18, passed the Senate 33-17, and was signed by the Governor on April 1.

HB 352 ALLOWING BOTTLED WATER TO REPLACE CLEAN WATER STANDARDS sponsored by Rep. Ryan Osmundson (R-Buffalo), is an unusual attempt to side-step water quality standards by allowing the state to “meet” water quality standards by providing bottled water to Montana residents instead of remediating water that does not meet water quality standards for nitrate. This bill presents a significant public health concern. This bill passed the House 84-15, passed the Senate 44-6, and was signed by Governor on April 18.