Bill Summary – FastDemocracy

67th Legislature                                                                                                  SB 176.1
                                                  SENATE BILL NO. 176
                                              INTRODUCED BY B. MOLNAR
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO COAL-FIRED
   GENERATION; ESTABLISHING REMEDIATION AND BONDING REQUIREMENTS FOR COAL-FIRED
   GENERATING UNITS; REQUIRING THE DEPARTMENT OF ENVIRONMENTAL QUALITY TO DETERMINE
   BONDS; PROHIBITING THE TRANSFER OF CERTAIN PROPERTY UNTIL BONDING REQUIREMENTS
   ARE SATISFIED; REQUIRING THE ENERGY AND TELECOMMUNICATIONS INTERIM COMMITTEE TO
   CONDUCT AN ANALYSIS OF COAL TRUST FUNDING OPTIONS FOR REMEDIATION; ESTABLISHING
   RESPONSIBILITY AND FUNDING REQUIREMENTS FOR MAINTENANCE AND REPAIRS AT A COAL-
   FIRED GENERATING UNIT; PROHIBITING CERTAIN RETIREMENT AND REMEDIATION COSTS FROM
   BEING PASSED ON TO RATEPAYERS; REQUIRING ENTITIES THAT RECEIVE COAL SEVERANCE TAX
   MONEY TO SIGN A STATEMENT SUPPORTING COAL; AMENDING SECTIONS 15-35-108, 17-5-703, 75-8-
   103, 75-8-104, 75-8-105, AND 75-8-107, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.”
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              WHEREAS, the coal trust fund was created to mitigate the impacts of coal development; and
              WHEREAS, the coal trust fund was never intended to fund programs difficult to appropriate in the
   Montana Legislature; and
              WHEREAS, various entities have seen fit to attack the lives of Montanans involved in low-cost and
   reliable energy production; and
              WHEREAS, the cost of environmental remediation at Colstrip is estimated to be between $400 million
   and $700 million and could take decades to accomplish; and
              WHEREAS, the tax loss alone from the closing of Colstrip Units 1 and 2 is over $17 million per year;
   and
              WHEREAS, the tax loss for the premature closing of Colstrip Units 3 and 4 will be over $1.1 billion; and
              WHEREAS, the premature closing of Colstrip Units 3 and 4 will reduce household income by $5.2
   billion; and
              WHEREAS, decreases in business and other economic input would be $12.5 billion from 2027 to 2043
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67th Legislature                                                                                                       SB 176.1
   from premature shutdown; and
              WHEREAS, 7,000 people would migrate out of the region or the state from premature shutdown; and
              WHEREAS, the remaining jobs would pay an average of $79,000 less than preshutdown wages; and
              WHEREAS, Montana’s coal miners funded the coal trust fund; and
              WHEREAS, no one else funded the coal trust fund; and
              WHEREAS, some people who oppose coal production and generation benefit from the coal trust fund;
   and
              WHEREAS, the production of coal and energy from coal are of vital interest to Montana, the Western
   grid, and the United States.
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 15-35-108, MCA, is amended to read:
              "15-35-108. (Temporary) Disposal of severance taxes. Severance taxes collected under this
   chapter must, in accordance with the provisions of 17-2-124, be allocated as follows:
              (1)   Fifty percent of total coal severance tax collections is allocated to the trust fund created by Article
   IX, section 5, of the Montana constitution. The trust fund money must be deposited in the fund established
   under 17-6-203(6) and invested by the board of investments as provided by law.
              (2)   The amount of 12% of coal severance tax collections is allocated to the major repair long-range
   building program account established in 17-7-221.
              (3)   The amount of 0.90% in fiscal year 2020 and 0.93% in fiscal year 2021 and in each fiscal year
   thereafter must be allocated for provision of basic library services for the residents of all counties through library
   federations and for payment of the costs of participating in regional and national networking and must be
   deposited in the basic library services account established in 22-1-202.
              (4)   The amount of 3.77% in fiscal year 2020 and 3.71% in fiscal year 2021 and in each fiscal year
   thereafter must be allocated to the department of natural resources and conservation for conservation districts
   and deposited in the conservation district account established in 76-15-106.
              (5)   The amount of 0.79% in fiscal year 2020 and 0.82% in fiscal year 2021 and in each fiscal year
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67th Legislature                                                                                                     SB 176.1
   thereafter must be allocated to the Montana Growth Through Agriculture Act and deposited in the growth
   through agriculture account established in 90-9-104.
              (6)   The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks
   acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses,
   must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas
   described in 23-1-102.
              (7)   The amount of 0.95% must be allocated to the debt service fund type to the credit of the
   renewable resource loan debt service fund.
              (8)   The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of art
   in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding
   unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other
   cultural and aesthetic projects.
              (9)   The amount of 5.8% through June 30, 2023, and beginning July 1, 2023, the amount of 2.9% must
   be credited to the coal natural resource account established in 90-6-1001(2).
              (10) After the allocations are made under subsections (2) through (9), $250,000 for the fiscal year must
   be credited to the coal and uranium mine permitting and reclamation program account established in 82-4-244.
              (11) (a) Subject to subsection (11)(b), all other revenue from severance taxes collected under the
   provisions of this chapter must be credited to the general fund of the state.
              (b)   The interest income of the coal severance tax permanent fund that is deposited in the general
   fund is statutorily appropriated, as provided in 17-7-502, on July 1 each year as follows:
              (i)   to the department of agriculture:
              (A)    $65,000 for the cooperative development center;
              (B)    $900,000 for the growth through agriculture program provided for in Title 90, chapter 9;
              (C)    $600,000 for the Montana food and agricultural development program provided for in Title 80,
   chapter 11;
              (ii) to the department of commerce:
              (A)    $325,000 for a small business development center;
              (B)    $50,000 for a small business innovative research program;
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              (C)    $625,000 for certified regional development corporations;
              (D)    $500,000 for the Montana manufacturing extension center at Montana state university-Bozeman;
   and
              (E)    $300,000 for export trade enhancement.
              (12)    (a) An entity that receives money in accordance with subsections (1) through (10) and (11)(b)
   shall sign a statement in support of coal.
              (b)    The statement required in subsection (12)(a) must state: "I/We support the Montana coal industry
   and the energy generated by coal-fired generating units. Further, we support Montana’s families that dig, burn,
   and transport our coal reserves. We appreciate those families that provide maintenance services. Our actions
   show fidelity to this statement."
              (c) The statement must be signed, include a position description of the signee, provide for the name
   of the entity represented, and include the date. (Terminates June 30, 2027--secs. 13, 15, 18, Ch. 343, L. 2019.)
              15-35-108.     (Effective July 1, 2027) Disposal of severance taxes. Severance taxes collected under
   this chapter must, in accordance with the provisions of 17-2-124, be allocated as follows:
              (1)    Fifty percent of total coal severance tax collections is allocated to the trust fund created by Article
   IX, section 5, of the Montana constitution. The trust fund money must be deposited in the fund established
   under 17-6-203(6) and invested by the board of investments as provided by law.
              (2)    The amount of 12% of coal severance tax collections is allocated to the major repair long-range
   building program account established in 17-7-221.
              (3)    The amount of 0.90% in fiscal year 2020 and 0.93% in fiscal year 2021 and in each fiscal year
   thereafter must be allocated for provision of basic library services for the residents of all counties through library
   federations and for payment of the costs of participating in regional and national networking and must be
   deposited in the basic library services account established in 22-1-202.
              (4)    The amount of 3.77% in fiscal year 2020 and 3.71% in fiscal year 2021 and in each fiscal year
   thereafter must be allocated to the department of natural resources and conservation for conservation districts
   and deposited in the conservation district account established in 76-15-106.
              (5)    The amount of 0.79% in fiscal year 2020 and 0.82% in fiscal year 2021 and in each fiscal year
   thereafter must be allocated to the Montana Growth Through Agriculture Act and deposited in the growth
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67th Legislature                                                                                                     SB 176.1
   through agriculture account established in 90-9-104.
              (6)    The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks
   acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses,
   must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas
   described in 23-1-102.
              (7)    The amount of 0.95% must be allocated to the debt service fund type to the credit of the
   renewable resource loan debt service fund.
              (8)    The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of art
   in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding
   unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other
   cultural and aesthetic projects.
              (9)    The amount of 2.9% must be credited to the coal natural resource account established in 90-6-
   1001(2).
              (10) After the allocations are made under subsections (2) through (9), $250,000 for the fiscal year must
   be credited to the coal and uranium mine permitting and reclamation program account established in 82-4-244.
              (11) All other revenue from severance taxes collected under the provisions of this chapter must be
   credited to the general fund of the state.
              (12)    (a) An entity that receives money in accordance with subsection (1) through (10) shall sign a
   statement in support of coal.
              (b)    The statement required in subsection (12)(a) must state: "I/We support the Montana coal industry
   and the energy generated by coal-fired generating units. Further, we support Montana’s families that dig, burn,
   and transport our coal reserves. We appreciate those families that provide maintenance services. Our actions
   show fidelity to this statement."
              (c) The statement must be signed, include a position description of the signee, provide for the name
   of the entity represented, and include the date."
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              Section 2. Section 17-5-703, MCA, is amended to read:
              "17-5-703.    (Temporary) Coal severance tax trust funds. (1) The trust established under Article IX,
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67th Legislature                                                                                                        SB 176.1
   section 5, of the Montana constitution is composed of the following funds:
              (a)   a coal severance tax bond fund into which the constitutionally dedicated receipts from the coal
   severance tax must be deposited;
              (b)   a treasure state endowment fund;
              (c)   a treasure state endowment regional water system fund;
              (d)   a coal severance tax permanent fund;
              (e)   a coal severance tax income fund;
              (f)   a big sky economic development fund; and
              (g)   a school facilities fund.
              (2)   (a) The state treasurer shall determine, on July 1 of each year, the amount necessary to meet all
   principal and interest payments on bonds payable from the coal severance tax bond fund during the next 12
   months and retain that amount in the coal severance tax bond fund.
              (b)   The amount in the coal severance tax bond fund in excess of the amount required in subsection
   (2)(a) must be transferred from that fund as provided in subsections (4) and (5).
              (3)   (a) The state treasurer shall monthly transfer from the treasure state endowment fund to the
   treasure state endowment special revenue account the amount of earnings, excluding unrealized gains and
   losses, required to meet the obligations of the state that are payable from the account in accordance with 90-6-
   710. Earnings not transferred to the treasure state endowment special revenue account must be retained in the
   treasure state endowment fund.
              (b)   The state treasurer shall monthly transfer from the treasure state endowment regional water
   system fund to the treasure state endowment regional water system special revenue account the amount of
   earnings, excluding unrealized gains and losses, required to meet the obligations of the state that are payable
   from the account for regional water systems authorized under 90-6-715. Earnings not transferred to the
   treasure state endowment regional water system special revenue account must be retained in the treasure
   state endowment regional water system fund.
              (4)   (a) Starting July 1, 2017, the state treasurer shall quarterly transfer to the school facilities fund
   provided for in 20-9-380(1) 75% of the amount in the coal severance tax bond fund in excess of the amount that
   is specified in subsection (2) to be retained in the fund. The budget director shall certify to the state treasurer
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   when the balance of the school facilities fund is $200 million. Beginning with the quarter following this
   certification, the state treasurer shall instead transfer to the coal severance tax permanent fund 75% of the
   amount in the coal severance tax bond fund that exceeds the amount that is specified in subsection (2) to be
   retained in the fund.
              (b)   The state treasurer shall monthly transfer from the school facilities fund to the account established
   in 20-9-525 the amount of earnings, excluding unrealized gains and losses, required to meet the obligations of
   the state that are payable from the account. Earnings not transferred to the account established in 20-9-525
   must be retained in the school facilities fund.
              (5)   (a) From July 1, 2005, through June 30, 2025, the state treasurer shall quarterly transfer to the
   big sky economic development fund 25% of the amount in the coal severance tax bond fund in excess of the
   amount that is specified in subsection (2) to be retained in the fund.
              (b)   The state treasurer shall monthly transfer from the big sky economic development fund to the
   economic development special revenue account, provided for in 90-1-205, the amount of earnings, excluding
   unrealized gains and losses, required to meet the obligations of the state that are payable from the account in
   accordance with 90-1-204. Earnings not transferred to the economic development special revenue account
   must be retained in the big sky economic development fund.
              (6)   Any amount in the coal severance tax bond fund in excess of the amount that is specified in
   subsection (2)(a) to be retained in the fund and that is not otherwise allocated under this section must be
   deposite