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Senate rejects bill to revise groundwater permitting, later postpones it indefinitely
Summary
Senate Bill 358, a far-reaching proposal to revise groundwater permitting, monitoring and designation rules, failed on second reading 14-36 and was later indefinitely postponed by a separate motion (35-15). The bill prompted extended debate over water rights, monitoring and state authority.
The Montana Senate failed on second reading to advance Senate Bill 358, a multifaceted bill that would have revised groundwater laws including permitting exceptions, monitoring requirements and the designation of controlled groundwater areas.
Senator Ryan Galt, sponsor of SB 358, opened the floor discussion by saying the bill reflects months of work and a need to address over-appropriation in parts of the state. "Status quo is gone," Galt said, urging senators to look forward and to allow studies and legislative input to continue.
Opponents raised a range of concerns. Senator Kirby, citing regional water accounting, described multiple valleys as many times over-appropriated and warned surface and groundwater are interconnected. Senator McKamey urged caution about agency surveillance, arguing that recent DNRC changes used aerial imagery in ways that raise privacy concerns and that the bill sometimes removes science-based rules in favor of legislative definitions. Senator Imrit urged that subsurface water supplies are abundant and that the bill risks creating artificial shortages by focusing on surface indicators.
A core point of contention was language that would change who may petition for a designation and how the department may monitor wells. Several senators asked about the shift from the phrase "water right holder" to "individual water user," warning the term could be too broad without a clear definition. The bill also included provisions allowing the Department of Natural Resources and Conservation (DNRC) to develop monitoring plans for areas designated "yellow" and to use aerial imagery to identify irrigation or ponds without associated water rights; some senators said language on aerial imagery would be removed in later drafts.
On the roll call for the committee motion to recommend SB 358 do pass, the clerk recorded 14 yeas and 36 nays; the bill failed on second reading. A subsequent motion by Majority Leader McGilvray to indefinitely postpone SB 358 passed 35-15.
Why this matters: The bill sought to create a multi-tiered system (green/yellow/red) for groundwater areas, authorize monitoring plans and create new petition pathways, all of which raised questions about property rights, measurement methods and impacts on development and housing. Proponents said court rulings were creating de facto bans on exempt wells and legislative action was needed; opponents warned the bill could impose meters, limit development or allow inconsistent, politically driven designations without better science and clearer definitions.
