Energy Legislation

Energy bills passed by the 2001 Legislature and signed by Gov. Judy Martz 
Prepared by Montana Department of Environmental Quality.

Unofficial Summary of Senate Bill 506
Sponsored by Sen. John Cobb (R-Augusta)

An act amending the laws relating to alternative energy and other energy systems; providing a revolving loan fund to finance alternative energy systems; providing that air quality non-compliance penalty fees be deposited in the revolving fund; eliminating business property taxes on certain generating equipment; providing a five-year abatement of business property taxes on small generating equipment; amending various tax and bonding incentive laws to encourage production of energy by using alternative renewable energy sources; allowing a conditional tax credit for wind energy produced on state land; and allowing an electricity buying cooperative to supply or promote alternative energy.

Section 1-3, 21, 22
Establishes an alternative energy revolving loan account, to issue low interest loans, up to $10,000 for 5 years. Aimed at residences and small businesses. The program will be run by DEQ.

Section 4
City or town councils may create special improvement districts for alternative energy production facilities.

Section 6
Generation using an alternative renewable energy source (as defined in 90-4-102) with a nameplate capacity of less than 1 MW is exempt from property taxes for 5 years after start of production.

Section 7
Facilities using alternative renewable energy sources (as defined in 90-4-102) to generate 1 MW or more are eligible for new or expanding industry property tax reductions. Property tax starts at 50 percent of applicable rate for the first five years, then rises to 100 percent by year 10.

Section 8
Facilities using alternative renewable energy source (as defined in 90-4-102) to generate electricity are eligible for the new or expanding energy tax credit, equal to 1 percent of the new wages paid in state during the first three years.

Section 10
Resident individual taxpayers get a tax credit of 25 percent of the taxpayer’s expenditure, up to $500, for conservation investments in "a building".

Section 11
Resident individual taxpayers who install a geothermal system in their "principal dwelling" is eligible for a tax credit up to $1,500.

Section 12
Resident individual taxpayers installing non-fossil forms of energy generation (as defined in 15-32-102) after 12-31-2001 in the taxpayer’s principal dwelling are entitled to an income tax credit equal to the cost of the system, up to $500. (This includes low emission wood stoves.)

Sections 13-14
Expands the 35 percent wind tax credit to all forms of alternative renewable energy sources (as defined in 90-4-102).

Section 15
Wind farms with leases on state lands that offer contracts of at least 5 years duration to sell at least 33 percent at cost of production plus 12 percent can claim full state wind tax credits even if they claim federal tax credits.

Section 16
Wind turbines on state lands making annual lease payments to the school trust fund are exempt from the wholesale energy transmission tax of $0.00015/kWh.

Section 17
Firms producing energy using alternative renewable energy sources (as defined in 90-4-102) are eligible for microbusiness loans and are not subject to business size limitation. Micro-business loans go up to $35,000.

Section 18
Firms producing energy using alternative renewable energy sources (as defined in 90-4-102) are eligible for Job Investment Act loans, which go up to $500,000.

Section 19
Firms producing energy using alternative renewable energy sources (as defined in 90-4-102) are specifically included under the Small Business Licensing Coordination Act, which reduces paperwork for the businesses.

Section 20
Cooperatives may be organized to serve as a supplier or promoter of alternative energy and conservation programs.

Section 23
Firms producing energy using alternative renewable energy sources (as defined in 90-4-102) are eligible for loans from the Montana Agricultural Loan Authority.

Section 24
"90-4-102. Definitions. "Alternative renewable energy source" means a form of energy or matter, such as solar energy, wind energy, geothermal energy, conversion of biomass, fuel cells that do not require hydrocarbon fuel, small hydroelectric generators producing less than 1 megawatt, or methane from solid waste, that is capable of being converted into forms of energy useful to mankind, including electricity, and the technology necessary to make this conversion, when the source is not exhaustible in terms of this planet and when the source or the technology are not in general commercial use.

Section 25
Municipalities and counties can invest in projects producing energy using alternative renewable energy sources (as defined in 90-4-102) under the Industrial Development Projects Act. Local governments can issue bonds under that act.

Section 26
Projects producing energy using alternative renewable energy sources (as defined in 90-4-102) are deemed "qualified investments" under the Montana Capital Company Act, which deals with venture capital.

2001 Legislature
Energy and utility deregulation were hot topics at the 2001session of the Montana Legislature. The Montana Legislature website offers multiple pathways to information, including topical links, organizational links, and searches. Or look up bill information. 

[ Green Power Links ] [ Getting Financing ] [ Saving Energy ] [ Montana Utilities ] [ Utility Connections ] [ Native American ]

Paid for by customers of NorthWestern Energy
Web architecture and marketing by Internet Navigating