Clean Energy in the Crosshairs

by Conor Ploeger

Clean energy was under constant attack during the 2021 legislative session. From the beginning, legislators targeted it in a never-ending quest to deny the existence of the climate crisis.

Many bills were passed that will set Montana back decades in the race to a clean energy future. MEIC’s victories weren’t about increasing access to clean energy; instead, they simply meant that by killing some of the worst of the bills Montana didn’t lose quite as much ground. Here’s the rundown.

Electric Vehicles

programs.

Recently, a district court judge held that NorthWestern Energy failed to comply with Montana’s renewable energy standard. That should have meant that its shareholders would have to pay $2.5 million to low-income and tribal energy assistance programs. Two bills eliminated NorthWestern’s obligation to pay this penalty. HB 576 and SB 237 (Sen. Doug Kary, R-Billings). both retroactively eliminated all fees and penalties owed for these failures.

Finally, SB 201 (Sen. Steve Fitzpatrick, R-Great Falls) makes it more difficult for renewable energy developers to sell electricity to NorthWestern Energy. SB 201 prohibits the Public Service Commission (PSC) from taking into account the benefits of avoided environmental externalities and carbon dioxide emissions when setting the rates that NorthWestern will pay when it buys electricity from clean energy developers.

Renewable Energy

Montana will be the first state in the nation to completely eliminate its renewable energy standard. Since 2005, the renewable energy standard has encouraged clean energy development because it required large utilities (i.e., NorthWestern Energy) purchase a certain amount of electricity from renewable energy sources.

Many states are expanding their renewable energy standards, but the Montana Legislature eliminated Montana’s renewable energy standard entirely by passing HB 576 (Rep. Jerry Schillinger, R-Circle). This bill was also amended to weaken support for low-income and tribal energy assistance

Electric vehicle owners also came under attack during this legislative session, but the good news is that HB 188 (Rep. Denley Loge, R-Saint Regis) was vetoed by Gov. Gianforte at the final buzzer. This bill would have imposed higher vehicle registration fees on electric vehicles in Montana, including the highest registration

fee in the nation for electric SUV and light truck owners, and the nation’s third-highest registration fee for light electric vehicles. We’re grateful to see this punitive bill die.

Nuclear Energy

Nuclear energy was a popular topic during this legislative session. HB 273 (Rep. Derek Skees, R-Kalispell) eliminated the voter initiative passed in 1978 that gave Montanans the right to approve any new nuclear facilities and established safeguards for nuclear energy development. Many of the people who worked to pass this initiative spoke out against HB 273, but the Legislature refused to listen.

MEIC supported SJ 3 (Sen. Terry Gauthier, R-Helena), which allows for the study of small modular, nuclear reactors in Montana. Proponents of these reactors believe that they are the future of energy, but opponents still have questions regarding their safety and the lack of adequate storage solutions for nuclear waste. MEIC supports further study of these reactors so Montanans can have a better understanding of any potential impacts. While this study resolution passed, by passing HB 273, the Legislature “put the cart before the horse” when it comes to nuclear energy.

Rooftop Solar

Rooftop solar survived devastating attacks during this session. Early in the session, Rep. Larry Brewster (R-Billings) introduced HB 359, which would have destroyed the solar industry in Montana. HB 359 would have forced the PSC to drastically change the rates for rooftop solar customers. However, because of loud opposition from MEIC members and other organizations, as well as Rep. Brewster’s misunderstanding of the bill, HB 359 was tabled before the committee hearing.

HB 448 (Rep. Josh Kassmier, R-Fort Benton) was a good bill before NorthWestern Energy hijacked it. HB 448 would have increased the allowable size for commercial rooftop solar systems, but NorthWestern persuaded legislators to adopt amendments that effectively ensured that HB 448 would have been just as devastating as HB 359. Luckily, the energy community mobilized quickly and defeated this bill.

Local Sustainability Efforts

Local control was definitely set back by the Legislature’s anti-clean energy agenda. SB 257 (Sen. Jason Small, R-Busby) was designed to prevent local governments from adopting measures to address climate change. The bill originally prohibited local governments from enacting green tariffs (electric rates designed to encourage people to purchase green energy instead of fossil fuel-based electricity). Although that provision was amended out, the bill still undermines local governments’ ability to enact policies that limit carbon or carbon use.

Clean Energy Tax Credits

While the nation moves to increase incentives for developing and using clean energy, the Montana Legislature eliminated tax credits for Montanans who install rooftop solar systems and energy efficiency measures. SB 399 (Sen. Greg Hertz, R-Polson) rewrote Montana’s tax code and, while it kept many tax credits in place, it eliminated the tax credit for clean energy investments.