Committee hears renewables loan package tied to coal-severance bonds; regional water systems, irrigation districts seek reauthorization

Helena — House Subcommittee F opened testimony on House Bill 8, a bill that would authorize the issuance of coal-severance tax bonds to finance renewable resource loans for irrigation and regional water projects.

The bill "requests the legislature's approval to issue up to" bond proceeds for renewable-resource loans, Autumn Coleman, deputy administrator for the Department of Natural Resources and Conservation, told the committee. Coleman said the request includes loans for new projects and reauthorization of prior loan authority.

Why it matters: House Bill 8 is the financing vehicle the department says is needed to provide low-interest loans for public irrigation projects and to supply the non‑federal match for several regional water systems that have received or are seeking Bureau of Reclamation funding. Because the bill would pledge coal-severance tax bond proceeds, DNRC and LFD witnesses emphasized a heightened constitutional vote threshold: coal-severance-backed debt requires a larger legislative majority under Montana law.

Key details and funding cited in testimony

- LFD budget analyst Paula Thomas summarized the agency analysis and numbers in the committee binder, saying the legislature's executive budget proposal and DNRC material show a total RRGL (Renewable Resource Grant and Loan) appropriation of roughly $146.2 million for the 2027 biennium across grants and loans. Thomas said the RRGL loan component in the executive budget increased compared with the prior biennium and that DNRC submitted a revised proposal the department expects will improve the projected fund balance.

- Thomas told the committee that under the bill the Board of Examiners would be authorized to issue coal-severance tax bonds "in an amount not to exceed $121,198,444 in the biennium beginning 07/01/2025," and that $12,119,844 of that would establish a reserve for the bonds.

- DNRC deputy administrator Autumn Coleman described loan eligibility: public entities may apply, loans are repaid by the borrowers, and proceeds come from coal-severance-tax-secured bond sales.…