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Bill would extend state backfill for Natural Resource Operations account through 2029
Summary
Senate Bill 71 would extend the statutory sunset for general-fund backfill of the Natural Resource Operations (NRO) account to 2029. DEQ and DNRC told the committee the backfill stabilizes mining and natural-resources program operations while they pursue fee-based alternatives.
Senate Bill 71 would extend the statutory sunset date for the general-fund backfill of the Natural Resource Operations (NRO) account, allowing DEQ and DNRC to continue current operations while pursuing more stable, fee-based funding for mining oversight.
The bill sponsor described the measure as a brief extension to allow time for development and implementation of a hard-rock mining fee proposal and other funding options. A. Nowakowski, director of the Department of Environmental Quality, and other DEQ officials explained the mining bureau relies on the NRO account and on a general-fund backfill to sustain permitting, compliance oversight and bonding programs.
DEQ told the committee the hard-rock mining section needs roughly $1,200,000 annually from the NRO backfill; the open-cut (sand and gravel) program needs about $800,000 annually and the coal mining program about $200,000 annually. DNRC Deputy Director Erin Weisgerber testified that DNRC receives roughly $1,100,000 from the NRO account annually to support programs across that agency, including water-rights technical reports, urban and community forestry and conservation programs.
Agency witnesses said the NRO account has experienced revenue fluctuations tied to metalliferous mine taxes and oil-and-gas collections since its creation in 2007, and periodic general-fund backfill has historically stabilized operations. DEQ said it supports an extension to 2029 to give time to finalize fee proposals (House Bill 69 was described as a related fee proposal) and test whether new fees will ultimately reduce reliance on the general-fund backfill.
Multiple proponents testified in favor: DEQ, DNRC, representatives of industry advocacy and conservation groups and others. Committee members asked whether the bill requires an appropriation; sponsors and agency staff said the statute maintains an existing backfill mechanism rather than creating a new appropriation in the hearing record.
The sponsor closed and asked for a do-pass recommendation; the transcript does not show a committee vote during this hearing.
