The Montana Legislature has introduced House Bill 933, a significant piece of legislation aimed at regulating utility crossings over railroad rights-of-way. Introduced on March 31, 2025, the bill seeks to establish clear guidelines for fees and reimbursements associated with these crossings, addressing ongoing disputes between utility companies and railroads.
The main purpose of House Bill 933 is to streamline the process for utilities to deploy facilities across railroad property while ensuring fair compensation for railroads. Key provisions include the establishment of an annual crossing fee, which cannot be retroactively applied to crossings made before the fee's enactment unless otherwise agreed upon. Additionally, the bill allows railroads to charge utilities for flagging expenses during construction, capped at $500 per day, and for safety inspections at a rate not exceeding $170 per hour.
Notably, the bill includes a mechanism for resolving disputes over compensation. If a railroad claims that a crossing diminishes the value of its property, it must provide an appraisal within 15 days of receiving a utility's application. If the parties cannot reach an agreement, the dispute will be resolved according to specified procedures in the bill.
The introduction of House Bill 933 has sparked debates among stakeholders. Proponents argue that the bill will facilitate infrastructure development and reduce bureaucratic hurdles for utilities, ultimately benefiting consumers. However, some railroad representatives express concerns that the proposed fees may not adequately compensate for potential impacts on their operations and property values.
The implications of this legislation are significant, as it could reshape the financial landscape for utility projects in Montana. By clarifying the fee structure and dispute resolution process, House Bill 933 aims to foster a more cooperative relationship between utilities and railroads, potentially leading to increased infrastructure investment in the state.
As the bill progresses through the legislative process, its outcomes will be closely monitored by both utility companies and railroad operators, with potential ramifications for future infrastructure projects across Montana.