Bill Summary – FastDemocracy

****
69th Legislature 2025                                                                                              LC0540.1
                                      _____________ BILL NO. _____________
                   INTRODUCED BY _________________________________________________
                      BY REQUEST OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY
  4
  A BILL FOR AN ACT ENTITLED: “AN ACT REVISING THE DISTRIBUTION OF FUNDS FOR THE
  REMEDIATION OF ABANDONED METAL MINES; REQUIRING A BIENNIAL TRANSFER FOR
  MAINTENANCE AND WATER TREATMENT AT THE CR KENDALL MINE RECLAMATION SITE;
  EXTENDING THE STATE CONTRIBUTION FOR CLEANUP, OPERATION, AND MAINTENANCE AT THE
  LIBBY ASBESTOS SUPERFUND SITE; AMENDING SECTIONS 75-10-704 AND 75-10-743, MCA;
  AMENDING SECTION 5, CHAPTER 387, LAWS OF 2015; AND PROVIDING AN EFFECTIVE DATE AND A
  TERMINATION DATE.”
 12
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
 14
          Section 1. Section 75-10-704, MCA, is amended to read:
          "75-10-704.    Environmental quality protection fund. (1) Subject to legislative fund transfers, there is
  in the state special revenue fund an environmental quality protection fund to be administered as a revolving
  fund by the department. The department is authorized to expend amounts from the fund necessary to carry out
  the purposes of this part.
          (2)      The fund may be used by the department only to carry out the provisions of this part and for
  remedial actions taken by the department pursuant to this part in response to a release of hazardous or
  deleterious substances.
          (3)      The department shall:
          (a)      except as provided in subsection (7), establish and implement a system, including the
  preparation of a priority list, for prioritizing sites for remedial action based on potential effects on human health
  and the environment; and
          (b)      investigate, negotiate, and take legal action, as appropriate, to identify liable persons, to obtain
  the participation and financial contribution of liable persons for the remedial action, to achieve remedial action,
                                                                -1-                         Authorized Print Version – ****
****
69th Legislature 2025                                                                                             LC0540.1
  and to recover costs and damages incurred by the state.
            (4)    There must be deposited in the fund:
            (a)    all penalties, forfeited financial assurance, natural resource damages, and remedial action
  costs recovered pursuant to 75-10-715;
            (b)    all administrative penalties assessed pursuant to 75-10-714 and all civil penalties assessed
  pursuant to 75-10-711(5);
            (c)    funds allocated to the fund by the legislature;
            (d)    proceeds from the resource indemnity and ground water assessment tax as authorized by 15-
  38-106;
            (e)    funds received from the interest income of the resource indemnity trust fund pursuant to 15-38-
  202;
            (f)    funds received from the interest income of the fund;
            (g)    funds received from settlements pursuant to 75-10-719(7);
            (h)    funds received from the interest paid pursuant to 75-10-722;
            (i)    costs recovered pursuant to 75-8-106(7) and penalties recovered pursuant to 75-8-109; and
            (j)    funds transferred from the orphan share account pursuant to 75-10-743(10). The full amount of
  these funds must be dedicated each fiscal year as follows:
            (i)    50% to the state's contribution for cleanup and long-term operation and maintenance costs at
  the Libby asbestos superfund site and allocated pursuant to 75-10-1603 and 75-10-1604; and
            (ii)   (A) except for the amount provided in subsection (4)(j)(ii)(B), 50% to metal mine reclamation
  projects at abandoned mine sites, as provided in 82-4-371. This subsection (4)(j)(ii) does not apply to
  exploration or mining work performed after March 9, 1971, except as provided in subsection (4)(j)(ii)(B).
  Projects funded under this subsection (4)(j)(ii) are not subject to the requirements of Title 75, chapter 10, part 7.
            (B)    $500,000 for each biennium through June 30, 2038, for long-term maintenance and water
  treatment at the CR Kendall mine reclamation site. This transfer must be completed before initiating the transfer
  provided in subsection (4)(j)(ii)(A).
            (5)    Whenever a legislative appropriation is insufficient to carry out the provisions of this part and
  additional money remains in the fund, the department shall seek additional authority to spend money from the
                                                               -2-                         Authorized Print Version – ****
****
69th Legislature 2025                                                                                                 LC0540.1
  fund through the budget amendment process provided for in Title 17, chapter 7, part 4.
          (6)        Whenever the amount of money in the fund is insufficient to carry out remedial action, the
  department may apply to the governor for a grant from the environmental contingency account established
  pursuant to 75-1-1101.
          (7)        (a) There is established a state special revenue account for all funds donated or granted from
  private parties to remediate a specific release at a specific facility. There must be deposited into the account the
  interest income earned on the account. A person is not liable under 75-10-715 solely as a result of contributing
  to this account.
          (b)        Funds donated or granted for a specific project pursuant to this subsection (7) must be
  accumulated in the fund until the balance of the donated or granted funds is sufficient, as determined by the
  department, to remediate the facility pursuant to the requirements of 75-10-721 for which the funds are
  donated.
          (c)        If the balance of the fund created in this subsection (7), as determined by the department
  pursuant to the requirements of 75-10-721, is not sufficient to remediate the facility within 1 year from the date
  of the initial contribution, all donated or granted funds, including any interest on those donated or granted funds,
  must be returned to the grantor.
          (d)        If the balance for a specific project is determined by the department to be sufficient to
  remediate the facility pursuant to the requirements of 75-10-721, the department shall give that site high priority
  for remedial action, using the funds donated under this subsection (7).
          (e)        This subsection (7) is not intended to delay, to interfere with, or to diminish the authority or
  actions of the department to investigate, negotiate, and take legal action, as appropriate, to identify liable
  persons, to obtain the participation and financial contribution of liable persons for the remedial action, to
  achieve remedial action, and to recover costs and damages incurred by the state.
          (f)        The department shall expend the funds in a manner that maximizes the application of the funds
  to physically remediating the specific release.
          (8)        (a) A person may donate in-kind services to remediate a specific release at a specific facility
  pursuant to subsection (7). A person who donates in-kind services is not liable under 75-10-715 solely as a
  result of the contribution of in-kind services.
                                                                  -3-                         Authorized Print Version – ****
****
69th Legislature 2025                                                                                               LC0540.1
          (b)      A person who donates in-kind services with respect to remediating a specific release at a
  specific facility is not liable under this part to any person for injuries, costs, damages, expenses, or other liability
  that results from the release or threatened release, including but not limited to claims for indemnification or
  contribution and claims by third parties for death, personal injury, illness, loss of or damage to property, or
  economic loss.
          (c)      Immunity from liability, pursuant to subsection (8)(b), does not apply in the case of a release
  that is caused by conduct of the entity providing in-kind services that is negligent or grossly negligent or that
  constitutes intentional misconduct.
          (d)      When a person is liable under 75-10-715 for costs or damages incurred as a result of a release
  or threatened release of a hazardous or deleterious substance, the person may not avoid that liability or
  responsibility under 75-10-711 by subsequent donations of money or in-kind services under the provisions of
  subsection (7) and this subsection (8).
          (e)      Any donated in-kind services that are employed as part of a remedial action pursuant to this
  subsection (8) must be approved by the department as appropriate remedial action. (Subsection (4)(j)
  terminates June 30, 2027 2038--sec. 5, Ch. 387, L. 2015.)"
 16
          Section 2. Section 75-10-743, MCA, is amended to read:
          "75-10-743.    Orphan share state special revenue account -- reimbursement of claims -- payment
  of department costs. (1) There is an orphan share account in the state special revenue fund established in 17-
  2-102 that is to be administered by the department. Money in the account is available to the department by
  appropriation and, except as provided in subsections (9), (10), and (11), must be used to reimburse remedial
  action costs claimed pursuant to 75-10-742 through 75-10-751, to provide funding for the department of justice
  for investigations pursuant to its natural resource damage program, to pay costs incurred by the department in
  defending the orphan share, and to pay remedial action costs incurred by the department pursuant to
  subsection (12). Any amounts provided for investigations must be returned to the account, with interest, from
  the settlement proceeds of a claim made under the natural resource damage program within 30 days of
  receiving settlement proceeds.
          (2)      There must be deposited in the orphan share account:
                                                                 -4-                         Authorized Print Version – ****
****
69th Legislature 2025                                                                                           LC0540.1
            (a)    all penalties assessed pursuant to 75-10-750(12);
            (b)    funds received from the distribution of oil and natural gas production taxes pursuant to 15-36-
  331;
            (c)    unencumbered funds remaining in the abandoned mines state special revenue account;
            (d)    interest income on the account;
            (e)    funds received from settlements pursuant to 75-10-719(7); and
            (f)    funds received from reimbursement of the department's orphan share defense costs pursuant
  to subsection (6).
            (3)    If the orphan share account contains sufficient money, valid claims must be reimbursed
  subsequently in the order in which they were received by the department. If the orphan share account does not
  contain sufficient money to reimburse claims for completed remedial actions, a reimbursement may not be
  made and the orphan share account, the department, and the state are not liable for making any
  reimbursement for the costs. The department and the state are not liable for any penalties if the orphan share
  account does not contain sufficient money to reimburse claims, and interest may not accrue on outstanding
  claims.
            (4)    Except as provided in subsections (6) and (7), claims may not be submitted and remedial
  action costs may not be reimbursed from the orphan share account until all remedial actions, except for
  operation and maintenance, are completed at a facility.
            (5)    Except as provided in subsection (6), reimbursement from the orphan share account must be
  limited to actual documented remedial action costs incurred after the date of a petition provided for in 75-10-
  745. Reimbursement may not be made for attorney fees, legal costs, or operation and maintenance costs.
            (6)    (a) The department's costs incurred in defending the orphan share must be paid by the persons
  participating in the allocation under 75-10-742 through 75-10-751 in proportion to their allocated shares. The
  orphan share account is responsible for a portion of the department's costs incurred in defending the orphan
  share in proportion to the orphan share's allocated share, as follows:
            (i)    If sufficient funds are available in the orphan share account, the department's costs incurred in
  defending the orphan share must be paid from the orphan share account in proportion to the share of liability
  allocated to the orphan share.
                                                              -5-                         Authorized Print Version – ****
****
69th Legislature 2025                                                                                                LC0540.1
               (ii)    If sufficient funds are not available in the orphan share account, persons participating in the
  allocation under 75-10-742 through 75-10-751 shall pay all the orphan share's allocated share of the
  department's costs incurred in defending the orphan share in proportion to each person's allocated share of
  liability.
               (b)     A person who pays the orphan share's proportional share of costs has a claim against the
  orphan share account and must be reimbursed as provided in subsection (3).
               (c)     A state agency that is liable for remedial action costs incurred has a claim against the orphan
  share account and must be reimbursed as provided in subsection (3). The agency may submit a claim before or
  after remedial action is complete. Reimbursement may not be made for attorney fees, legal costs, or operation
  and maintenance costs. The agency may be reimbursed only after:
               (i)     its liability has been determined pursuant to 75-10-742 through 75-10-751 or by a court of
  competent jurisdiction;
               (ii)    it has received a notice letter pursuant to 75-10-711; and
               (iii)   the department has approved the costs.
               (7)     (a) If the lead liable person under 75-10-746 presents evidence to the department that the
  person cannot complete the remedial actions without partial reimbursement and that a delay in reimbursement
  will cause undue financial hardship on the person, the department may allow the submission of claims and may
  reimburse the claims prior to the completion of all remedial actions. A person is not eligible for early
  reimbursement unless the person is in substantial compliance with all department-approved remedial action
  plans.
               (b)     The department may reimburse claims from a lead liable person upon completion and
  department approval of a report evaluating the nature and extent of contamination and a report formulating and
  evaluating final remediation alternatives. This early reimbursement is limited to those eligible costs incurred by
  the lead liable person for the preparation of the reports.
               (8)     A person participating in the allocation process who received funds under the mixed funding
  pilot program provided for in sections 14 through 20, Chapter 584, Laws of 1995, may not claim or receive
  reimbursement from the orphan share account for the amount of funds received under the mixed funding pilot
  program that are later attributed to the orphan share under the allocation process.
                                                                   -6-                         Authorized Print Version – ****
****
69th Legislature 2025                                                                                            LC0540.1
          (9)      (a) For the biennium beginning July 1, 2005, up to $1.25 million may be used by the
  department to pay the costs incurred by the department in contracting for evaluating the extent of contamination
  and formulating final remediation alternatives for releases at the Kalispell pole and timber, reliance refinery
  company, and Yale oil corporation facility complex. If the department spends less than $1.25 million for those
  purposes, the remaining funds must be spent for remediation of the facility complex. The department may not
  seek recovery of the $1.25 million from potentially liable persons.
          (b)      The money spent pursuant to subsection (9)(a) must be credited against the amount owed by
  the state agency in a judgment or settlement agreement for payment of the remedial action costs at the facility
  for which the money was spent.
          (10)     (a) The After making the biennial deposit required in 75-10-704(4)(j)(ii)(A) and if sufficient funds
  remain, the department shall transfer from the orphan share account to the long-term or perpetual water
  treatment permanent trust fund provided for in 82-4-367 $1.2 million in each fiscal year until the board of
  investments makes the certification pursuant to subsection (10)(b) of this section.
          (b)      (i) The board of investments shall monitor the long-term or perpetual water treatment
  permanent trust fund provided for in 82-4-367 to determine when the amount of money in the long-term or
  perpetual water treatment permanent trust fund will be sufficient, with future earnings, to provide a fund bal