Bill would create a Big Sky Rail account to support passenger-rail development; supporters cite economic and connectivity benefits

HELENA — Representative Denise Baum presented House Bill 848 to create a state special revenue account, the Big Sky Rail account, and provide a statutory $2 million annual appropriation to the Department of Transportation for passenger-rail development, safety upgrades and project-match needs.

Baum said the account would support work on the Big Sky North Coast Corridor — the proposed southern long‑distance route — and improvements to the existing Empire Builder corridor. She said the proposal was initially tied to a vehicle-related tax but committee staff amended the draft to use the rail car tax; she told the committee she is open to alternative funding sources such as general fund if the committee prefers.

Big Sky Passenger Rail leaders testified in support. Dave Strohmeyer, chair of the Big Sky Passenger Rail Authority, outlined the authority’s track record: formation by county governments, grant acquisition and project development. Dan Bucks, who testified virtually, said passenger rail can be energy-efficient, increase rural economic activity, attract tourism spending and support freight reliability. Bucks told the committee that passenger rail “yields the greatest benefits for smaller rural communities.”

Department of Transportation rail staff attended as informational witnesses and said they were available for questions. Testimony cited existing federal activity: the Big Sky North Coast Corridor is in the Federal Railroad Administration’s Corridor Identification (Corridor ID) program and the authority has secured federal grants to improve infrastructure on BNSF’s Milk River Subdivision. Committee discussion focused on the use of state funds as nonfederal match to unlock phase‑2 Corridor ID dollars and on whether a statutory appropriation should have a sunset.

Scope and use: witnesses said funds can underwrite nonfederal match for federal planning (step‑2 Corridor ID service-development plans), safety and infrastructure improvements, workforce development and grant administration support for rural communities lacking capacity to pursue and manage federal grants.

Questions from committee members included whether passenger-rail expansion would harm the Empire Builder or compete for tracks; witnesses said the routes would be complementary, that many improvements benefit both freight and passenger service, and that on‑time performance improvements are in the mutual interest of freight and passenger operators. Committee members also asked about governance and ownership: witnesses and DOT staff said track ownership remains with freight railroads (BNSF), Amtrak likely would operate service but operator commitments and infrastructure conditions would be specified during the Corridor ID development phase.

Ending: Sponsor Baum said she would accept amendments such as a six‑year sunset on the statutory appropriation. Supporters emphasized job and tourism benefits, improved safety and rural connectivity. No committee vote was taken at the hearing.