MontanaHB 4769th Legislature, Regular Session (2025)House

Revise state building energy conservation program

Sponsored By: Katie Zolnikov (Republican)

Became Law

EnergyState GovernmentAppropriations

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Better planning for state energy upgrades

Beginning July 1, 2025, state agencies that own buildings must give DEQ energy and building data when asked. DEQ picks facilities for deep energy studies and greenlights projects only when estimated savings beat costs (for state-funded work, cost plus 3% annual interest on the unpaid balance). The Department of Administration or other agencies carry out design and construction, and DEQ can transfer money and authority to them. DEQ trains maintenance staff and monitors results to make sure savings are realized and cover financing costs.

New accounts to reinvest energy savings

Beginning July 1, 2025, the state uses dedicated accounts to run the energy program. The Program Account pays program costs. The Repayment Account collects agency energy savings and interest; any unencumbered balance over $2,000,000 at the end of a biennium moves to the Capital Projects Account. The Capital Projects Account funds buying and installing energy‑saving equipment. The Debt Service Account holds bond payments; extra money moves to the major repair long‑range building account.

3% cap and fewer energy bonds

Beginning July 1, 2025, DEQ sets the program’s annual interest rate each July 1, capped at 3% and sized to cover administration. The law repeals DEQ’s past authority to issue energy conservation program bonds. If the governor proposes using such bonds, the budget must include DEQ’s statement that expected yearly savings meet or exceed yearly bond payments.

State agencies move utility savings to repay

Beginning July 1, 2025, agencies in approved projects must transfer estimated energy savings to pay for those projects. For bond‑funded work, savings go to the debt service account for the bond term plus one year, and agency utility budgets are lowered. For projects paid from the general fund or the capital projects account, savings go to the repayment account until the full project cost plus 3% yearly interest on the unpaid balance is repaid. The governor includes these savings in the budget, and transfers happen when DEQ requests them.

Sponsors & Cosponsors

Sponsor

Katie Zolnikov
Republican • House

Cosponsors

Theresa Manzella
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 296 • No: 0

House vote • 4/14/2025

Do Concur

Yes: 48 • No: 0

House vote • 4/12/2025

Do Concur

Yes: 49 • No: 0

House vote • 1/14/2025

Do Pass

Yes: 100 • No: 0

House vote • 1/13/2025