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Bill would set aside coal-severance funds to secure Colstrip's future water supply
Summary
House Bill 368 would create a Coal Severance Tax trust account to set aside $2 million annually to help secure long-term water for the town of Colstrip after power-plant operations cease; proponents from utilities, local governments and environmental groups supported the bill in committee.
House Bill 368 proposes creating a Town of Colstrip Water Infrastructure Mitigation Account within the Montana Coal Severance Tax Trust that would set aside $2 million per year to help ensure Colstrip has potable water after plant operations and remediation conclude.
Sponsor Rep. Gary Perry, who represents House District 35, said the fund is a proactive solution for a community that depends on water supplied through pipelines fed from the Yellowstone River. Perry and witnesses said replacement or reconfiguration of one pipeline was estimated at roughly $80 million in a 2022 feasibility study, and the bill is intended to build funds over decades rather than expect a single large contribution at the time of plant closure.
The bill received broad support from utility owners and community groups. Speakers included representatives from plant operators and owners: an operations director for "Tallon, Montana" (testimony identified the speaker as the plant's environmental and compliance director), Mark Baker of Puget Sound Energy, Jan Rouse for Northwestern Energy, Shane Scanlon for Portland General Electric, and Shelby Demarz (organization not specified in the transcript). The Montana League of Cities and Towns and the Montana Environmental Information Center also testified in support.
Amy Steinmetz and Sarah Seitz from DEQ attended as informational witnesses. Seitz referenced the 2022 water feasibility study presented to DEQ, saying the study examined multiple alternatives. Seitz said reconfiguring the pipeline that brings Yellowstone River water to Castle Rock Lake would cost about $80 million and that operating costs for the top three alternatives range from about $600,000 to $1.2 million per year.
Committee members questioned how the account would be managed and whether the governor's budget office had been consulted. Mark Baker said utilities had spoken with the governor's office and the state economic development and budget offices; no formal position had been taken by the governor's office at the time of testimony. Sponsor Perry said the account would be an annual $2 million deposit and that funds would be set aside so the town could access them in the future; witnesses said the carve-out would remain in state trust rather than being held directly by the town.
The hearing concluded with no recorded committee vote.
