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SB 36 removes expired contingency language tied to coal‑plant closure block grant

2129146 · January 15, 2025
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Summary

Senate Bill 36 would strip expired contingency provisions from school funding law related to closure of a coal‑fired generating unit and preserve the remaining block grant distribution schedule; proponents said it restores 2017 block grant requirements and reflects resolved negotiations.

Senate Bill 36, carried by Senator Daniel Emrich at the request of the Education Interim Committee, would remove expired contingency language tied to the closure of a coal‑fired generating unit and retain the underlying block grant distribution schedule set in 2017.

Emrich described the measure as removing contingency language that had been inserted to address uncertainties surrounding closure negotiations with the generating unit's operator. "This is the last block grant that we currently have for a school district," he said, adding the bill returns the statute to the 2017 distribution mechanics so that "70% of each district's block grant must be distributed in December, 30% in May."

Lance Melton of the Montana School Boards Association said the block grant historically prevented a dramatic budget cut for the Colstrip district and that striking the contingency language is appropriate given the issues have largely been resolved. "Colstrip is a very unique community," Melton said, and he described the bill as preserving the remaining block grant language while removing temporary contingencies.

Amy Steinmetz of the Department of Environmental Quality identified herself as a DEQ administrator available to answer questions about DEQ's implementation of the coal‑fired unit generating law. Paul Taylor of the Office of Public Instruction appeared as an informational witness. Senator Emrich closed by urging a "do pass" recommendation. The committee scheduled executive action for Jan. 16.