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Committee advances HB 346 to exempt Commerce grant and loan programs from MEPA review at award stage

2221280 · February 3, 2025
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Summary

House Bill 346 would exempt Department of Commerce grant and loan programs from Montana Environmental Policy Act (MEPA) analysis during the application/reimbursement stage, while retaining MEPA for permitting where required; the committee advanced the bill unanimously in executive action.

The House Natural Resources Committee advanced House Bill 346, a red-tape reduction bill sponsored by Representative Paul Tops that would exempt Department of Commerce grant and loan programs from MEPA analysis at the application and award stage. Representative Tops said the measure would prevent duplicative environmental reviews when applicants also must complete federal or local environmental analyses.

"This bill removes the cost of having to complete two separate environmental analyses, thus saving tax dollars," Representative Paul Tops told the committee. Mandy Rambo, deputy director at the Department of Commerce, said the exemption would apply to the department's 42 grant and loan programs and help grant and loan dollars go further for nonprofits and local governments by removing duplicate MEPA analysis prior to award. The sponsor and Commerce staff emphasized that HB 346 would not eliminate MEPA review for projects that require permitting; projects that require later permitting would still need appropriate environmental review.

Programs cited as examples that could be affected included the Veterans Home Loan Mortgage Program, Wood Products Industry Loan Program, Workforce Training Program and projects tied to the State-Tribal Economic Development Commission. Supporters included the Montana League of Cities and Towns and the Montana Contractors Association, who said the bill would reduce administrative burdens for local governments and applicants.

In executive action the committee moved HB 346 forward by voice vote; the committee clerk recorded proxy votes and reported 14 ayes and 0 noes. Proponents described the bill as aligning with the governor's executive order to reduce regulatory red tape and as intended to streamline the Commerce application and reimbursement process without removing required environmental review tied to permitting.

Votes at a glance: HB 346 advanced from committee by voice vote in executive action; recorded tally: 14 ayes, 0 noes.