Committee hears $5 million proposal to help small political subdivisions install natural gas distribution

Representative Olson presented House Bill 12 75 to the Appropriations Committee, describing a proposal to appropriate $5,000,000 from the Strategic Investment Fund for a natural gas distribution grant program. "This would be a grant program for political subdivisions to get a 50% match, to assist in putting in natural gas infrastructure," Olson said, and noted the program targets political subdivisions with populations under 10,000.

Members questioned practical application and timing. Representative Gampett and others noted that mainline construction and pipeline availability can be years away in many regions; Olson acknowledged there was no delayed effective date in the bill and that projects might not be able to use the money within the current biennium. Representative Pyle asked if the bill included a maximum award per applicant; Olson said the draft did not set a per‑project cap and instead prioritizes projects that offer a greater local match.

Representative Nelson described local experience where a hook‑up to an existing transmission (Alliance) pipeline can cost many millions — far above a single community’s ability to match. Committee members said $5 million would be small relative to statewide transmission and distribution costs; Olson said the amount reflected the original request and committee discussion had considered larger sums but did not change the introduced figure.

The bill language allows political subdivisions to use funds for initial distribution infrastructure and does not explicitly restrict use to new pipeline construction versus tapping existing lines. No committee vote on HB 12 75 was recorded in the transcript segment provided.