Representative Gary Perry, the sponsor, told the House committee that Colstrip’s primary water lines are decades old and at risk of failure and that the bill would create a dedicated mitigation account funded by coal severance tax receipts to finance long‑term repairs. “The way we’re setting this up is it’ll set up a $2,000,000 fund, and every year it’ll kick $2,000,000 out of that fund, into there, so that within the next 30 or 40 years, we’ll have enough to take care of that pipeline,” Perry said.

Perry described the system feeding Colstrip as a 30‑mile pipeline from the Yellowstone through Castle Rock Lake and said one line was estimated in a 2022 study to cost about $80 million to replace. He said Colstrip holds roughly 2.6 cubic feet per second in water rights while the treatment plant is sized at about 62.5 cubic feet. “We wouldn’t have bought homes, we wouldn't be there, so there's a lot of people that have their whole livelihood stuck in that town,” Perry said, urging members to consider the residents who work in the plants and mines.

Several members briefly voiced support on the floor. Representative Gist thanked Perry for his work with the community; Representative Jay Hinkle and Representative Marler said the use of coal severance tax money made sense given the local economic ties to coal production.

The committee voted to recommend the bill do pass on second reading; the clerk reported 100 votes in favor. Later in the session the majority leader moved to re‑refer House Bill 368 to the Appropriations Committee for further consideration of fiscal impacts and funding mechanics.

Discussion versus action: the debate was primarily informational and supportive; the motion recorded in committee was a recommendation that the bill do pass on second reading, and a recorded vote was held. A subsequent procedural motion re‑referred the bill to appropriations for detailed fiscal review.