Senate Natural Resources panel advances bill to extend DEQ mining funding

The Senate Natural Resources Committee removed Senate Bill 71 from the table and gave it a do-pass recommendation, advancing a measure that extends special-revenue funding used to operate the Department of Environmental Quality’s (DEQ) mining bureau.

The vote to take the bill off the table came by roll call, 9-2. After the director of the DEQ answered members’ questions, Senator Cuff moved a do-pass recommendation on Senate Bill 71, introduced by Sen. Kasmeier; the committee took a voice vote and the chair declared the bill passed out of committee.

Why it matters: The bill pushes back a sunset date and continues the use of special-revenue (NRO) funds that the DEQ uses to issue mining permits and run its mining bureau. Committee members and DEQ officials said the extension preserves permitting operations while a separate proposal to establish mining fees is pursued in future legislation.

Director Nowakowski, the DEQ director, told the committee there is no surplus at DEQ: “no, we do not have a surplus at the deq. I sure wish we did though.” She explained that the mining bureau’s operations are funded by a combination of NRO funds and the general fund and that Senate Bill 71 “simply extends the nro money, so we can continue on to fund the mining program and issue our permits.” She said the extension creates time to see whether a forthcoming mining-fee bill will generate revenue so the NRO backfill would no longer be needed.

Committee members pressed for clarity about the bill’s scope after tabling it earlier. Senator Nolan said the measure “is just a continuation.” Several members noted the sponsor had not provided extensive detail during the first hearing, which contributed to the earlier tabling.

Senator Curti confirmed the bill extends the appropriation to 2029. A senator who reviewed the fiscal note told the committee it appeared to reflect transfers of existing funds rather than a new tax; committee members repeatedly characterized the extension as not creating a new tax.

Dan Walsh, identified by the director as the division administrator who previously led the mining bureau, testified earlier in the process and assisted with technical answers. A committee member also noted that a separate bill to establish mining fees has been under development for about four years and is not part of SB 71.

Votes at a glance: The motion to remove SB 71 from the table passed on a roll call vote, 9 yes, 2 no. The committee later gave SB 71 a do-pass recommendation on a voice vote; one proxy vote recorded during the session was Sen. Zollnikov voting aye by proxy. The committee did not record a roll-call tally for the do-pass recommendation in the transcript.

Next steps: With the committee’s do-pass recommendation, SB 71 moves to the Senate floor for further consideration.