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Legislative subcommittee trims PSC staffing; commission urges reinstatement of rail-inspector position

2732665 · March 21, 2025
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Summary

The House Appropriations Committee’s Section D subcommittee approved most of the Public Service Commission budget but did not fund one requested personnel package (DP 200) intended to support contested‑case document management and legal workflows; the commission urged reinstatement and reiterated its unanimous support for House Bill 103 adding rail inspectors.

The House Appropriations Committee's Section D subcommittee approved a reduced budget for the Montana Public Service Commission (PSC) but declined to fund one full personnel budget (DP 200) the commission asked for to support contested-case work and documentation and to free the PSC paralegal for legal research. Commission officials and some legislators pressed the panel to reinstate that position and to consider additional rail inspectors tied to House Bill 103.

The PSC asked the committee for an additional personnel budget item that the agency classified as an administrative assistant but described to the panel as a multi‑task position to log and manage legal documents, discovery responses and party lists for contested cases and MAPA proceedings. Commissioner Jennifer Fielder said the role “would be able to handle basically logging all of the legal documents” and free the agency paralegal to perform legal research; the commission asked the Legislature to consider amending the HB2 package to restore DP 200.

Why it matters: PSC contested cases and resource‑planning work (the commission has an approved $200,000 line in this budget for integrated resource planning) consume staff time. The commission told the subcommittee the extra administrative capacity would protect the small agency’s limited attorney time and improve regulatory operations. Several legislators who represent areas adjacent to rail lines also raised safety concerns and asked whether more state inspectors would reduce derailments.

Details of the discussion: Chairwoman Nave summarized the subcommittee’s thinking that the budget overall is relatively small within the state HB2 package and that the PSC asked for roughly 2.5 additional personnel but was approved for 1.5. PSC representatives confirmed the $200,000 resource-plan line was previously approved and remains in the package. Commissioner Fielder asked the committee to consider an amendment to reinstate DP 200.

On rail inspection policy, Rep. Powers and Rep. Tuss said they were disappointed the committee did not approve the inspectors that had been contemplated under HB103 (Zolnikov’s railroad bill). Representative Powers described rail lines running next to a Wild and Scenic River in his district and said he feared a spill or derailment that could contaminate Flathead Lake; Rep. Tuss cited prior fatal derailments and asked about the merits of adding inspectors.

PSC staff and Commissioner Fielder described the current structure: Montana has two certified car inspectors who inspect rail cars and find defects before cars leave yards; federal law/regulators (the FRA) are ultimately responsible for rail safety and have inspectors that cover multi‑state areas. PSC staff told legislators that the legislative auditor’s performance audit had recommended more inspectors and that the commission had voted to support HB103. The subcommittee said it added DP 400 (rail inspectors) to the HB2 sheet so the panel could discuss whether and how to fund an inspector program within HB2; the governor’s executive budget did not include the DP 400 inspector package.

What was decided and next steps: The subcommittee approved the PSC budget overall but did not approve the full personnel request for DP 200. PSC officials indicated they would seek an amendment on the House floor or in conference to restore DP 200; they also asked the committee to consider an amendment to reinstate inspector positions (DP 400) or support HB103. The commission told the committee it had unanimously voted to support HB103 and that agency management endorses adding inspectors if the Legislature elects to expand the state’s program. The commission representatives said that without clearer out‑of‑state comparative data demonstrating that state‑employed inspectors reduce derailments, the committee was reluctant to obligate the added recurring general‑fund or special‑fund positions.

Ending: The PSC closed its presentation noting improvements in agency management since 2021 and thanking the committee for its engagement; the subcommittee said it would consider amendments when HB2 comes back for executive action.