MontanaHB 869th Legislature, Regular Session (2025)HouseWALLET

Renewable resource bonds and loans

Sponsored By: John Fitzpatrick (Republican)

Became Law

Appropriations, Coal Tax Fund PrincipalAppropriationsDebt, Creation of StateState FinanceWater

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Coal tax bonds fund water projects

Beginning July 1, 2025, the state can issue up to $121.2 million in coal severance tax bonds for the biennium, with up to $12.12 million set aside as a reserve. Bond proceeds go to DNRC to finance the projects named in this law. Earnings on bond funds before loans are completed first pay bond debt; extra earnings go to the natural resources projects state special revenue account (15-38-302). Loan repayments are pledged to the state’s debt service account to pay the bonds. When a state entity receives a loan, the same amount is appropriated to it for the 2025–27 biennium.

Low rate state loans for water projects

Beginning July 1, 2025, the state lets DNRC lend to the listed local governments and districts for named water and dam projects. Examples include Willow Creek Dam ($14 million), Painted Rocks Dam Phase 1 ($15 million), Fort Shaw Simms Creek Siphon ($5.18 million), and other irrigation projects. Projects approved in 2023 that missed a deadline are reauthorized, such as Greenfields Hydropower ($1.5 million) and the St. Mary’s Milk River beneficiaries’ share ($40 million). Loans carry 3.0% or the state bond rate, whichever is lower, for up to 30 years, and rates track the state bond rate unless lawmakers later set a lower rate. Money is disbursed only after DNRC approves the scope and budget, other funds are committed, required conditions are met, and a loan agreement is signed. Sponsors may have to pay their share of bond issuance and DNRC administrative costs. DNRC can also make, buy, or sell the loans and related notes by private negotiated sale, including at a discount.

Sponsors & Cosponsors

Sponsor

John Fitzpatrick
Republican • House

Cosponsors

Ellie Boldman
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 282 • No: 11

House vote • 4/14/2025

Do Concur

Yes: 48 • No: 0

House vote • 4/12/2025

Do Concur

Yes: 50 • No: 0

House vote • 3/1/2025

Do Pass

Yes: 91 • No: 6

House vote • 2/28/2025