Senate committee un-tables and approves bill extending DEQ mining funding

Helena — The Montana Senate Committee on Natural Resources voted to remove Senate Bill 71 from the table and approved the measure on a subsequent vote, extending the Department of Environmental Quality's (DEQ) use of special-revenue Natural Resource Operations (NRO) funds to keep the state's mining permitting program operating.

Committee members voted 9–2 to take the bill off the table. Senator Cuff then moved a “do pass” recommendation on Senate Bill 71, introduced by Kasmeier; the committee later recorded the bill as passed. The measure extends the appropriation timeline the DEQ uses to fund its mining bureau and issue permits.

The bill drew questions from several senators about whether the NRO account contained a surplus and whether the legislation created new fees. Director Nowakowski told the committee, “No. We do not have a surplus at the DEQ. I sure wish we did, though.” She said the NRO money is used to operate the mining bureau and that the department is seeking a mixed funding model: “We’re trying to create a 3 legged stool and add an NRO, general fund and another bill ... that talks about mining fees.” Director Nowakowski also said the separate mining-fee bill being developed is not part of Senate Bill 71.

Senator Usher said the bill “just moves the sunset back” for a program used for metal mines. Several senators said the sponsor did not provide full information during the bill’s hearing, which contributed to the item being tabled earlier in the session. “If we tabled it, we tabled it for a good reason,” one senator told the committee before members voted to untable the measure.

Committee members also noted a fiscal note accompanying the bill that staff described as transferring or continuing existing funds. A committee exchange clarified that the funds are special-revenue dollars and that the bill, as written, extends the timeline for using those funds rather than imposing a new tax or fee.

Committee staff noted that Dan Walsh, identified as a division administrator and a former mining bureau chief, testified on the bill at the committee’s earlier hearing. No surplus at the DEQ was confirmed by the director during the committee discussion, and the department said it would return in two years to reassess the need for NRO backfill if a separate fee structure is adopted and begins generating revenue.

Senator Cuff moved the do-pass recommendation on the floor of the committee; the committee then took a voice vote on final passage. Senator Zelnickoff was recorded as voting “aye” by proxy during the proceedings. After the final vote the chair announced, “Senate Bill 71 has passed.”

The committee adjourned after brief administrative remarks and scheduling notes.