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DEQ-backed bill would modernize state building energy program, repeal unused bonding authority
Summary
House Bill 47 would repeal an unused DEQ bonding authority, allow the agency to set an interest rate up to 3% for its State Building Energy Conservation Program and expand eligible project language to include operations and maintenance savings; DEQ officials say the program has invested roughly $40 million since 2009 and saves an estimated $2.6 million annually.
Representative Zollnikov presented HB47 on behalf of the Department of Environmental Quality. The bill would (1) repeal DEQ’s unused bonding authority for the State Building Energy Conservation Program (authority unused since 2007), (2) replace a fixed statutory 3% interest rate with departmental authority to set a rate not to exceed 3%—allowing lower rates to increase borrower savings—and (3) broaden the definition of eligible projects to capture utility-associated operating and maintenance (O&M) savings (for example, reduced lamp replacement and HVAC maintenance), which shortens project payback periods.
DEQ Director Sonya Nowakowski said the program has invested about $40 million in nearly 200 projects since 2009, with estimated annual taxpayer savings of $2.6 million. Energy Bureau Chief Ben Brower explained technical bill language, noting the change preserves a 3% cap but allows DEQ to reduce the rate when administrative costs permit. Renewable-energy stakeholders (Montana Renewable Energy Association) supported the bill as a way to deliver additional taxpayer savings.
Next steps: The sponsor asked for a do-pass recommendation. Committee discussion was technical and focused on implementation; informational witnesses from the Architecture & Engineering Division offered operational support.
