Montana Representatives Debate Unfriendly Amendment on Coal Pricing Policy

During a recent meeting of the Montana Legislature's House Taxation Committee, lawmakers engaged in a spirited debate over an amendment related to coal pricing and taxation. The discussion highlighted differing perspectives on how best to support constituents while addressing the economic realities of the coal industry.

Representative Brewster expressed strong opposition to the amendment, labeling it as "unfriendly" and urging fellow lawmakers to vote against it. In contrast, Representative Close advocated for the amendment, emphasizing the need to prioritize effective policy for all Montanans. Close argued that the proposed pricing of $46.56 per ton, translating to approximately 2.3 cents per pound, was not excessive and warranted support.

The conversation shifted as Representative Konower clarified that the figure discussed was not the actual contract sales price, which he noted was significantly higher, around $98 to $100 per ton. This distinction raised questions about the accuracy of the pricing data being considered in the amendment.

Representative Rebus contributed to the discussion by sharing insights on coal washing, a process aimed at enhancing coal quality. He highlighted the substantial revenue generated from contract sales, amounting to $432 million last year, and expressed concern about the potential burden on taxpayers. Rebus indicated his support for the amendment, suggesting it could provide a safety net if coal prices were to decline.

As the committee continued to deliberate, the implications of the amendment remained a focal point, with lawmakers weighing the potential impact on the coal industry and the broader community. The outcome of this discussion could have significant ramifications for local economies reliant on coal production and the associated tax revenues.