Bill Summary – FastDemocracy

67th Legislature                                                                                                       SB 86.1
                                                    SENATE BILL NO. 86
                                          INTRODUCED BY D. ANKNEY, C. SMITH
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING COAL-FIRED GENERATION
   REMEDIATION AND RETIREMENT REQUIREMENTS; REQUIRING THAT DECOMMISSIONING
   REQUIREMENTS BE INCLUDED IN A COAL-FIRED GENERATING UNIT REMEDIATION AND
   RETIREMENT PLAN; ESTABLISHING DECOMMISSIONING REQUIREMENTS; REVISING REQUIREMENTS
   FOR JUDICIAL REVIEW; REQUIRING PAYMENT OF CERTAIN DECOMMISSIONING COSTS;
   ESTABLISHING A COAL-FIRED GENERATING UNIT RETIREMENT GRANT PROGRAM ACCOUNT;
   PROVIDING FOR USE OF THE GRANT PROGRAM; PROVIDING RULEMAKING AUTHORITY; REQUIRING
   REPORTING TO THE GOVERNOR AND LEGISLATURE; PROVIDING DEFINITIONS; AMENDING
   SECTIONS 75-8-101, 75-8-102, 75-8-103, 75-8-105, 75-8-106, 75-8-107, 75-8-108, 75-8-109, AND 75-10-704,
   MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              NEW SECTION. Section 1.        Coal-fired generating unit retirement grant program account. (1)
   There is an account in the state special revenue fund established in 17-2-102 to be known as the coal-fired
   generating unit retirement grant program account.
              (2)   There must be deposited in the account:
              (a)   money received from legislative allocations;
              (b)   payments or penalties received in accordance with 75-8-106(7)(b), 75-8-106(8)(b), and 75-8-
   109(3)(c); and
              (c)   any gift, donation, grant, legacy, bequest, or devise made for the purposes of [section 2].
              (3)   Subject to [section 2(5)], funds in the account must be used for grants made in accordance with
   [section 2] and for the department's administrative costs.
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              NEW SECTION. Section 2.        Coal-fired generating unit retirement grant program -- rulemaking --
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   reporting requirements. (1) The department shall make grants available using the account established in
   [section 1] to entities owning property affected by the retirement or pending retirement of a coal-fired generating
   unit. The department shall award grants using information provided in a remediation and retirement plan in
   accordance with 75-8-105(1)(f).
              (2)   Grants must be provided to entities including but not limited to residential and commercial real
   estate owners with property impacted by the retirement or pending retirement of a coal-fired generating unit.
              (3)   Entities may work cooperatively on a grant proposal. The department shall work with applicants in
   preparing cost estimates for a proposal. In reviewing proposals, the department may consult with other state
   agencies with expertise pertinent to a proposal and use information included in an approved remediation and
   retirement plan.
              (4)   The department shall adopt rules necessary to administer and implement the grant program. The
   rules must provide for distribution methods and reporting requirements for grants.
              (5)   Administrative expenses for the grant program during a fiscal year may not exceed actual
   administrative costs.
              (6)   The department shall report to the governor and the legislature as provided in 5-11-210 regarding
   the disbursement of grants that are awarded during each biennium.
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              Section 3. Section 75-8-101, MCA, is amended to read:
              "75-8-101.    Short title. This part may be cited as the "Coal-Fired Generating Unit Remediation and
   Retirement Act"."
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              Section 4. Section 75-8-102, MCA, is amended to read:
              "75-8-102.    Findings -- intent. (1) The legislature, mindful of its constitutional obligations under Article
   II, section 3, and Article IX of the Montana constitution, has enacted the Coal-Fired Generating Unit
   Remediation and Retirement Act.
              (2)   It is the legislature's intent that the requirements of this part ensure that appropriate remedies are
   in place when a coal-fired generating unit is retired to ensure the protection of the environmental life support
   systems from degradation, and to provide adequate remedies to prevent unreasonable degradation of natural
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   resources, and to mitigate the effects of the retirement of a coal-fired generating unit on the communities most
   impacted."
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              Section 5. Section 75-8-103, MCA, is amended to read:
              "75-8-103.    Definitions. As used in this part, the following definitions apply:
              (1)   (a) "Affected property" means the property owned by or under the control of an owner that is
   affected by a coal-fired generating unit, including:
              (i)   land, surface water, or ground water directly affected by the coal-fired generating unit, associated
   impoundments, disposal and waste operations, buildings, structures, or other improvements or operations
   infrastructure; and
              (ii) areas affected by activities necessary to the closure and dismantling of the coal-fired generating
   unit.
              (b)   The term does not include:
              (i)   land, water, or air affected or potentially affected by emissions from the operation of a coal-fired
   generating unit; or
              (ii) the mining of coal at an underground or strip mine and used at the coal-fired generating unit.
              (2)   "Applicable legal obligations" means any applicable state or federal environmental laws, including
   but not limited to the Montana Water Quality Act, rules regarding disposal of coal combustion residuals from
   electric utilities, the Montana Major Facility Siting Act, and other applicable laws administered by the
   department in accordance with Title 75. The term includes any consent order or settlement entered into by the
   department and an operator or owner imposing obligations to undertake remediation actions at the coal-fired
   generating unit or affected property.
              (3)   "Coal-fired generating unit" means an individual unit of a coal-fired electrical generating facility
   located in Montana, where the unit has a generating capacity that is greater than or equal to 200 megawatts.
              (4)   (a) "Decommissioning requirements" means the dismantlement, removal, and disposal of a coal-
   fired generating unit, including the unit itself and any related components and materials associated with the unit.
              (b)   Except as provided in subsection (4)(c), the term also means the estimated loss of value of a
   residential or commercial property attendant to a coal-fired generating unit based on:
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              (i)   the owner of the property executing a sale of property after July 1, 2020, and on or before July 1,
   2025;
              (ii) the outstanding liability associated with the property, based on the original liability or loan,
   exceeding its fair market value;
              (iii) the owner being subjected to a price reduction due to the retirement or pending retirement of a
   coal-fired generating unit; and
              (iv) the sale, not including a transfer from borrowers to lenders, that takes place as part of a
   foreclosure process, including deeds in lieu of foreclosure, foreclosure deeds, or sheriff's deeds.
              (c)   The term does not mean costs or liabilities otherwise defined by a contract between owners,
   operators, or both.
              (4)(5)   "Department" means the department of environmental quality provided for in 2-15-3501.
              (5)(6)   "Operator" means the person engaged in operating or undertaking remediation and retirement
   actions at a coal-fired generating unit. An operator may or may not be an owner.
              (6)(7)   "Owner" means a person who has a legal or equitable interest in property subject to this part or
   the person's legal representative.
              (7)(8)   "Person" means an individual, partnership, corporation, association, or other legal entity or any
   political subdivision of the state or federal government.
              (8)(9)   "Reasonably anticipated future uses" means likely future land or resource uses that take into
   consideration:
              (a)   local land and resource use regulations, ordinances, restrictions, or covenants;
              (b)   historical and anticipated uses of a site where a coal-fired generating unit is located;
              (c)   patterns of development in the immediate area; and
              (d)   relevant indications of anticipated land use from an operator or owner, or both, of a coal-fired
   generating unit, affected property owners, and local planning officials.
              (9)(10) "Remediation" means all actions required by an applicable legal obligation directed exclusively
   toward achieving a degree of cleanup required in accordance with 75-8-107.
              (10)(11) "Retired" or "retire" means the complete and permanent closure of a coal-fired generating unit.
   Retirement occurs on the date that the coal-fired generating unit ceases combustion of fuel and permanently
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   ceases to generate electricity."
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              Section 6. Section 75-8-105, MCA, is amended to read:
              "75-8-105.    Remediation and retirement plan. (1) No later than 3 months after At least 6 months
   before a coal-fired generating unit is retired and but no earlier than 5 years prior to a coal-fired generating unit's
   planned retirement, an owner shall submit a proposed remediation and retirement plan that contains:
              (a)   the name of the operator of the coal-fired generating unit and the names and addresses of all
   owners of the coal-fired generating unit;
              (b)   a general overview of the site where the unit is located, the unit itself, and affected property;
              (c)   the current and reasonably anticipated future uses of affected property; and
              (d)   remediation information, including:
              (i)   a list of reports, studies, or other evaluations related to remediation and specific remediation
   measures already completed or under way pursuant to any applicable legal obligation; and
              (ii) the manner in which the remediation measures satisfy the requirements of 75-8-107 and a
   description of how the owner will comply;
              (e)   an overview of the decommissioning requirements as defined in 75-8-103(4)(a) that are planned
   for the coal-fired generating unit;
              (f)   an overview of the decommissioning requirements as defined in 75-8-103(4)(b) and an estimate of
   their costs, the data and assumptions supporting the cost estimate, and timeframes in which the
   decommissioning requirements will be paid;
              (g)   a description of the owner's plans to address the employee rights, benefits, and pensions of union,
   salaried, and other employees affected by the retirement of the coal-fired generating unit; and
              (h)   an overview of efforts to ensure that a local government attendant to the coal-fired generating unit
   is granted ownership of the affected local government's water rights and related infrastructure, ensuring the
   affected local government's ability to maintain its water supply and water rights.
              (2)   (a) If a coal-fired generating unit has more than one owner, the owners may jointly submit a
   remediation and retirement plan in accordance with this part.
              (b)   If the owners are unable to submit a joint plan, then each owner of the coal-fired generating unit
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   that is being retired or is retired is responsible for meeting the requirements of this part. If separate plans are
   filed, the department shall ensure that the plans detail individual legal obligations and decommissioning
   requirements pursuant to 75-8-106(1)(c). If there is a conflict in the plans, the department shall reconcile the
   conflict to ensure that the plans are consistent with existing law, and legal obligations, and decommissioning
   requirements.
              (3)   A plan required pursuant to subsection (1) may consist of a plan for more than one unit that is
   retired at the same time and planned for simultaneous remediation and retirement.
              (4)   The filing of a plan is not a commitment to retire a coal-fired generating unit on any particular date
   that is not otherwise required by an applicable legal obligation."
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              Section 7. Section 75-8-106, MCA, is amended to read:
              "75-8-106.    Approval of plan -- time limits -- contents and expiration. (1) (a) The department shall
   review for completeness a remediation and retirement plan and provide a written completeness notice to an
   owner within 60 days of receipt of the remediation and retirement plan and within 30 days of receipt of
   responses to notices of deficiencies. The initial completeness notice must include all deficiencies identified in
   the information submitted.
              (b)   Review of the plan is not subject to Title 75, chapter 1, parts 1 through 3.
              (c)   If there are multiple owners, each owner is responsible only for decommissioning requirements as
   defined in 75-8-103(4)(b) based on the owner's percentage share of ownership in the unit that is retired.
              (c)(d)   During the review period provided in subsection (5), an owner may respond in writing to the
   comments received by the department during the public comment period.
              (2)   The department shall provide formal written notification of approval or modification within 120 180
   days of determining a proposed remediation and retirement plan is complete, unless the owner and the
   department agree to an extension of the review to a date certain. Any modification by the department is limited
   to a modification necessary to conform the plan to applicable legal obligations and decommissioning
   requirements.
              (3)   The department may access the site where the unit is located, the unit itself, and affected
   property, at reasonable times and after reasonable notice to the owner, during review of the plan to confirm that
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   information provided by the owner and is consistent with the proposed plan.
              (4)   The department shall approve a remediation and retirement plan if the department concludes that
   the plan meets the requirements of this part.
              (5)   Within 10 days of the date the department determines that a proposed remediation and retirement
   plan is complete, the department shall publish a notice and brief summary of the proposed remediation and
   retirement plan in a daily newspaper of general circulation in the area affected and make the plan available to
   the public. The department also shall also post the notice on its website. The notice must provide 45 60 days
   for submission of written comments to the department regarding the plan. The notice must also advise the
   public of the time and place of a public meeting at or near the coal-fired generating unit site regarding the
   proposed remediation and retirement plan. The meeting must be held within 45 days of the date that written
   notice of the department's completeness determination is provided to the owner or operator. To the extent there
   is any conflict between the public notice provisions of this section and those contained in any applicable legal
   obligation, the provisions of the applicable legal obligation supersede the requirements of this subsection.
              (6)   If a remediation and retirement plan is modified by the department, the department shall promptly
   provide the public with notice through its website and the owner with notice through a written statement of the
   reasons for modification. A modification may be appealed in accordance with 75-8-108.
              (7)   After a plan is approved, an owner of a coal-fired generating unit shall:
              (a)   implement remediation requirements in accordance with applicable legal obligations and
   decommissioning requir